2024: A year in review for members

It was a year of two halves. So how did accountants and bookkeepers cope with the political whiplash?

In many ways, it’s been a year of two halves. The Sunak government’s Spring Budget in March promised to lower taxes by cutting NI insurance from 10% to 8% and NICs for the self-employed from 8% to 6%.

Fuel duty was frozen along with alcohol duty, while the VAT registration threshold increased to £90,000 from April 2024, meaning that 28,000 SMES would no longer need to pay VAT.

The Autumn Budget delivered by the new Labour government could not have been more different. Instead of tax cuts, there were tax rises, intended to fill the significant £22bn black hole in public finances that had first been uncovered in July.

Increases abounded. The National Living Wage (NLW) rose to £12.21 from £11.44 for those aged 21 and over, while Employer’s NICs, CGT, Stamp Duty Land Tax also increased. Plus, Inheritance Tax rules changed.

There were also many elections across the globe, the results of which are likely to impact British businesses indirectly.

So what has 2024 been like for accountants and bookkeepers? And how did plans change for the AAT members we spoke to at the start of the year?

I implemented my plans as intended, and started a new role elsewhere

Andy Murray MAAT AATQB Management Accountant, working for Livestock Information Ltd, Defra-owned company

The year has flown by. There have been many internal changes around the corporate reporting structure and the structure of costs. 

Whilst our integration plans were full steam ahead, more time was needed to implement the above changes ahead of the next quarterly management accounts. This created an additional burden in an already hectic period, but we managed to get it across the line. 

We had an internal audit which went really well, but it was intense and resource-heavy so it knocked our financial transformation roadmap plans slightly. We were looking at implementing shared service tools to hand over Accounts Payable & Expenses to a central team but it has been postponed.

We also had great success in implementing a finance business partnering model (already implemented at group level and across other group entities) which allowed me to get closer to the project finances and enabled me to hold project reviews with project managers ahead of the quarter end.

Regarding changes following the latest budget, we were aware of the increase in Corporation Tax and this was already considered in our annual budget.  But the change in Employers NI was an additional factor we needed to account for. 

Following the change in the government, we reviewed the revenue side of things. We operate with various government departments and we knew that this would have an impact on their budgets. Therefore, we carried out a reforecasting exercise with our top 10 clients to ensure we captured any particular changes.

I’ve now started a new exciting role. There were lots of changes internally in my previous role, but that’s fairly common when working in a large international corporation. Therefore it was time to find a new rewarding challenge elsewhere.

Verdict: I implemented the plans I intended to, and have since started an exciting new role elsewhere.

I stayed true to my goals and became a limited company in April

Sallyanne Sheppard MAAT, Director, Sunshine Accounts Ltd

I officially became a limited company in April 2024 and the transition has been incredible. Implementing my new pricing matrix has been a game-changer. My existing clients were so supportive, happily embracing the higher rates as they truly see the value I bring to their businesses.

I’ve significantly increased my social media presence on LinkedIn and Facebook through regular, intentional posting. I was featured in a local newspaper about my move to a limited company and I became a sponsor for a Salisbury Rugby XV team player, which gave me visibility through match-day program ads and boosted my social media exposure.

I’ve gained six new clients: one through Facebook, two from the local newspaper article, and three through referrals.

Staying true to my goals, I’ve carefully targeted the right clients, even having the courage to turn away leads and disengage one client where the relationship wasn’t a good fit. It’s been empowering to only work with clients who align with my business values and goals.

I absolute love running my business and the strategic CEO mindset it demands, it’s so different from being a sole trader. I’ve also completed the fantastic bookkeeping coaching program I mentioned back in January 2024 and am now an active member of this inspiring community.

I also attended the AAT Connect event. It was an amazing experience.

Verdict: I stayed focused and true to my goals and became a limited company in April 2024.

I’m building a lifestyle accountancy business that lets me spend time with my family

Tom Smith, MAAT, Director, Every Cloud Accounting

2024 has been quite the journey. Our first child was born in March, two weeks early – that wasn’t in last year’s plan!

The business needed to be sustainable and flexible, and it has been both of those things. I’ve been able to take Fridays off and support us with maternity pay shortfalls.

Working on online marketing to grow the business has worked well, producing regular content, including sharing Every Clouds monthly income. But there have been periods where it’s taken a backseat, and the priority has been to carry out client work.

Focusing on local SEO has been slow and steady but has started producing a good, consistent stream of enquiries. I spent a lot of time and effort working on LinkedIn, but that didn’t produce the same results, so I paused the efforts to take stock.

Ultimately in a one-person accountancy business, you only have a certain amount of energy and time, so SEO has been the strategy I come back to and try and double down on.

The two government budgets this year will have a small effect on Every Cloud, but they don’t change my thinking. I am clear on what I need to do: provide a great service to build a lifestyle accountancy business, which gives me the income and flexibility to spend time with my son.

Verdict: I’m continuing to focus on creating a lifestyle accountancy business that’s flexible and financially sustainable enough for me to spend time with my family.

Would you like to contribute to future articles like this one? If so, please get in touch with Annie Makoff-Clark at [email protected].

Annie Makoff is a freelance journalist and editor.