Given the UK’s “financial hole” after the Government COVID-19 support packages, it comes as no surprise to us that we are being prepared for an Autumn Budget with plenty of tax increases to be announced.
Expectations released so far:
- Corporation tax forecast increase from 19% to 24%
- Tax on dividends targeted to increase
- Capital gains tax – increases on tax on gains from sale of personal buy to let properties – 28% going up to 40/45% (higher rate tax payers)
So what can business owners do:
- Well firstly this is where having a really good accountant who takes the time and makes the effort to get to know your business comes into play…. so all tax efficiencies available through your business and personal structure can be maximised
- Use of companies for buy to let purchases
- Family tax planning
- Keep tight control on business profit margins and cashflow management
- Ensure awareness and utilisation of available and lucrative tax reliefs (eg, for innovation and green initiatives)
- Director / shareholder pay package review (once we know what dividend rates may be changing to, keep in communication with us for our calculator in due course)
However warnings have been sent Mr Sunak’s way to proceed with caution as these kind of increases could stifle recovery for the UK.
We look after all of our clients in a personal and bespoke manner so should you wish to discuss any of the above further then please click on the call back button or contact us direct on (0)1730 719250.
This information is correct as at September 2020.