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Budget statement

The Chancellor presented his Spring Budget in early March, which often brings important updates for small businesses and the automotive industry. As always, we’re here to be your eyes and ears, so here’s a download as to what this year’s Budget could mean for you and your garage. Spring Budget

Did you see?

There were relatively few gifts for workshops in the Budget, with the Chancellor largely focused on addressing the tax burden on consumers, while continuing to spend cautiously as the economy gets back on track.

That said, smaller aftermarket businesses may well benefit from the threshold for VAT registration increasing from £85,000 to £90,000, which could help to free up vital cash for investment in new skills and equipment… although we had hoped that the threshold would be lifted to £100,000 so that more businesses would stand to gain.

You might also remember that in last November’s Autumn Statement, the Chancellor made full expensing permanent, representing a £10 billion tax cut for businesses looking to invest in equipment and machinery. Full expensing is now being extended to cover leased assets – good news if you’re keen to invest in new electric vehicle (EV) or ADAS servicing equipment.

Interestingly there were no new incentives announced to help drivers switch to plug in vehicles, and the freeze on fuel duty remains in place – which feels slightly at odds with the push towards zero emission driving. We see this as short term relief for drivers managing high living costs, believing the overall direction of travel is unchanged.

And with that, our advice is unchanged too: it’s still vital to invest in the skills and equipment to service electric vehicles sooner rather than later, to ensure your long term success.

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Garage Support | 2024 Issue 2 | Page 3