Welcome to the October 2024 Newsletter from Beatons Group

The Institute of Directors (IoD) has outlined key policy changes for the upcoming Budget, including generating a business tax roadmap that supports business confidence and planning.  

Meanwhile, data published by Paragon Bank showed that savers added £42 billion into cash ISAs during the first half of this year.

IoD outlines key policy changes in Budget submission

In a letter to Chancellor Rachel Reeves, the IoD has outlined its key policy changes for the upcoming Autumn Budget.

The business group has set out key recommendations for the government in five key areas:

• Fiscal rules that protect investment spending.
• A business tax roadmap that supports business confidence and planning.
• Improving the UK's labour market to address skill and labour shortages.
• Improve the UK's trade performance.
• Support SMEs in the transition to net-zero.

Jonathan Geldart, Director General of the IoD, said: 'The most important priority for the UK and for this Budget is to deliver a clear message and framework for increasing the UK's potential growth. This is the key to delivering a higher standard of living for all.

'The weakness in the UK economy is perhaps unsurprising given the cluster of shocks from recent years. But this unfortunately leaves us with public spending and taxation at post-war highs as a percentage of GDP.

'A combination of fiscal rules which accommodate borrowing for the purposes of investment, reforms to the government's fiscal strategy, a tax roadmap and an industrial strategy, will help deliver that long-term certainty that can draw in vital investment.'

Savers added £42 billion into cash ISAs in first half of 2024, data shows

Savers deposited an additional £42 billion into cash ISAs in the first half of this year, data from Paragon Bank has revealed.

Paragon Bank found that, at the end of June 2024, there was £351.6 billion held in adult cash ISAs compared to £309.3 billion at the end of December 2023.

Fixed-term cash ISAs increased from £157.9 billion to £188.5 billion, the data showed. Total adult cash savings balances have increased by £70.7 billion to £1.18 trillion during the first half of the year.

Derek Sprawling, Managing Director of Savings at Paragon Bank, said: 'The level of deposits held in cash ISAs has rocketed in recent months, particularly in the fixed-rate segment of the market which has seen the level of balances double since the end of 2022.

'The increase is understandable given the growth in savings rates means more savers are facing the prospect of paying tax on money held in non-ISA accounts. Even though rates have moderated from their peak, there are still plenty of higher-rate taxpayers who could still benefit from utilising their ISA allowance to limit their exposure.'

ESSENTIAL TAX DATES FOR OCTOBER

1 October
Due date for payment of Corporation Tax for period ended 31 December 2023.

5 October        
Deadline for notifying HMRC of new sources of taxable income or gains or liability to the High Income Child Benefit Charge for 2023/24 if no tax return has been issued.

14 October      
Due date for income tax for the CT61 quarter to 30 September 2024.

19 October      
Tax and NICs due under a 2023/24 PAYE Settlement Agreement.
PAYE, Student loan and CIS deductions are due for the month to 5 October 2024.
PAYE quarterly payments are due for small employers for the pay periods 6 July 2024 to 5 October 2024.

31 October       
Deadline for submitting 'paper' 2023/24 self assessment returns.

QUOTE OF THE MONTH

'The news that workers now require a significantly larger pension pot to cover basic living costs in retirement will undoubtedly be alarming for many, particularly low paid workers who have borne the brunt of rising prices over the past two years.'

Katherine Chapman, Director of the Living Wage Foundation, commenting on research that revealed that the average pension pot required for a basic standard of living in retirement has surged to almost £110,000 in just three years.

ON OUR WEBSITE

A wealth of resources for businesses
With topics ranging from the Bribery Act 2010 to the National Minimum Wage and the National Living Wage, the Your Business section of our site is a hub of essential information.

Useful information for individuals
For a comprehensive bank of guides covering Venture Capital Trusts, the dividend nil-rate and much more, please visit the Your Money area of our website.

Billion-pound tax bombshell to hit hospitality, warns trade body
The end of business rates relief will sting hospitality with a £928 million bill in April unless the government acts in the Budget, warns UKHospitality.
Click here for the full story

IPSE calls for fairer off-payroll rules in Budget
The Chancellor should use her Autumn Budget to make off-payroll working rules 'fairer and more effective', according to the Association of Independent Professionals and the Self-Employed (IPSE).
Click here for the full story

Reforms to IHT, CGT and NI 'could raise over £20 billion a year'
The Resolution Foundation has suggested that reforms to inheritance tax (IHT), capital gains tax (CGT) and national insurance (NI) could raise more than £20 billion a year.
Click here for the full story

£5.5 billion lost as a result of tax evasion, report finds
A report published by the National Audit Office (NAO) has found that £5.5 billion was lost due to tax evasion in 2022/23.
Click here for the full story

Business group urges government to fix 'antiquated' business rates rules
The Confederation of British Industry (CBI) has urged the government to fix the 'antiquated' business rates system in England in order to 'boost investment and grow the economy'.
Click here for the full story