Tax changes effective this April 2023...

With important tax changes taking place this April, see what action you might take:

Frozen Allowances

Inflation is a gift for the Chancellor when so many tax allowances have been reduced or frozen. As wages increase with inflation, more and more people will get caught by a 40%, 60% or 45% tax rate and many will have to repay child benefit when they didn’t before. 

In this environment, the real tax cost of earnings and profits will increase as time goes on. For example, if you’re planning to refurbish your buy-to-let you might save more real income tax by delaying the refurbishment.

Having a look back at the most common tax areas applicable to our SMEs in 2022. Which of these applied to you and did you get an acceptable result?

Today's Budget recognises the help needed by your local area such as retail and hospitality, with alcohol duty reduction and reform, 50% rates reduction for 1 year, property improvements not affecting your rates for 1 year, plus money directed to areas such regional theatres, community football pitches, cycling infrastructure, local minor roads and to local councils.

Keeping it local tends to favour small businesses who can now try to build on the support and appreciation received during lockdowns. Remember to increase your prices so your business keeps pace with inflation and remains viable. So, what else should you and your business know from today?

Today we've had a whistle-stop tour of initiatives which the government hopes will encourage growth. From saving existing skills with furlough and SEISS scheme extensions, a new super tax deduction on equipment, through to funding high quality training schemes (if you have at least 5 employees). 

Here are the main headlines of interest to small and growing businesses...