If you’re hoping for a sneak preview of the Autumn Budget, we’re afraid we’ve left our crystal ball at home.
With Budget Day approaching at the end of October, there will be no shortage of newspaper headlines, expert predictions and social media posts claiming to know exactly what’s coming next. The reality? Nobody knows for certain until the Chancellor stands up and delivers the speech.
That said, there are a few things to keep in mind.
Income tax and dividends – Company directors should consider their expected personal income, particularly if they are close to tax thresholds or planning to take a larger dividend than usual. Changes to income tax, National Insurance or dividend taxation could affect the amount you ultimately take home.
Cash flow – It may not be the most exciting topic, but it’s often the difference between sleeping soundly and staring at the ceiling at 3am. Make sure you know what cash is coming in, what bills are due, and whether any large tax payments are lurking around the corner.
Corporation tax and investment – Whether you’re looking at new equipment, vehicles, technology or additional staff, now is a good time to review your plans and understand the potential financial impact of the investment. Business taxation and investment incentives are often areas of interest in Budget announcements.
Capital Gains Tax and business sales – If you’re considering selling your business, retiring or transferring your company, now is a good time to review the potential tax implications. Don’t assume that today’s reliefs will remain unchanged indefinitely.
Employment costs – If you employ staff, keep an eye on National Insurance, minimum wage and pension costs. Even relatively small increases can have a noticeable impact on a small business’s margins. If you are preparing your budgets for the year ahead, it is therefore worth allowing some flexibility for changes to employment costs.
We’ll be keeping a close eye on the announcements and will be here to help translate any Budget jargon into plain English.