At Hall Morrice, we provide specialised accounting, audit, and tax support for a number of charities and non-profit organisations. As the sector faces significant regulatory changes, it is important to stay informed. In this article, we focus on key changes from the Autumn 2024 Budget and other essential regulatory updates, ensuring your charity stays well-prepared to navigate the changes.
The Autumn 2024 Budget introduces several important updates that will impact UK charities, particularly in terms of operational costs, funding opportunities, and regulatory compliance.
One of the most significant changes for charities is the increase in Employer National Insurance Contributions (NIC) to 15%. This rise will substantially raise payroll costs, particularly for non-profits with large staff or reliance on part-time and freelance workers. With the introduction of the 6.7% increase in the National Living Wage, charities should plan ahead for these higher operational costs.
While the removal of VAT and business rates relief for private schools may not directly impact all charities, it could lead to increased demand for scholarships and additional support services from education-focused non-profit organisations.
The government is introducing new legislation aimed at closing loopholes and preventing the misuse of charity tax advantages. These changes are intended to safeguard the integrity of the charity sector, and failure to comply could result in legal or financial penalties.
On a positive note, the Autumn Budget includes a 3.2% increase in local government funding. This allocation includes £600 million for social care and £1 billion for Special Educational Needs and Disabilities (SEND) services, indirectly benefiting charities that work with councils to support vulnerable groups, including young people with complex needs.
Additionally, the new funding aims to boost community engagement by providing charities with resources to support volunteer-led programs and strengthen local social networks.
With rising energy costs, charities will benefit from continued energy price support, along with energy efficiency measures aimed at helping non-profit organisations manage increasing utility costs.
At Hall Morrice, we provide expert accounting and tax support to help charities navigate these changes successfully. Whether you need assistance with financial reporting, tax planning, or compliance, our highly experienced charity and not for profit team are here to advise and guide you.
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