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GREAT NEWS for SMEs: Budget 2024 Delivers Funding Boost and Brighter Future

After weathering some tough storms, SMEs in the UK finally have some sunshine to break through the clouds! The recent Budget 2024 brought a wave of positive developments that are sure to energise early-stage investment and propel businesses towards exciting growth.

Good news for startups:

  • Reversal of Angel Investor Rule Changes: The government reversed the planned increase in thresholds for sophisticated investors, making it easier for startups to access angel investment.

  • Progress on R&D Tax Credits: While not a complete solution, the establishment of an expert advisory panel signifies a step towards addressing the current administrative challenges faced by startups claiming R&D tax credits.

  • Public Sector Tech Investment: Increased funding for tech adoption in the NHS and other public sectors presents opportunities for relevant startups.

Benefits for SMEs:

  • Increased VAT Threshold: The VAT registration threshold has been raised from £85,000 to £90,000, providing early-stage SMEs with more breathing room before registering for VAT.

  • Extended Loan Scheme: The government extended the Recovery Loan Scheme, now renamed the "Growth Guarantee Scheme," until March 2026, offering an alternative funding source for SMEs seeking capital.

  • Full Expensing Extension: Businesses can now claim full expensing for leased assets, allowing them to deduct the entire cost of equipment or machinery in the year they acquire it, potentially leading to increased productivity and growth.

We’re delighted about these announcements, and while some business groups believe the measures could have gone further, there is hope for SMEs navigating challenging economic times.

Positive market sentiment can create a favourable window for fundraising. When investors are optimistic about the overall market health, they're more inclined to support businesses with strong potential. This translates to a potentially smoother fundraising experience for your company!

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