Posted on 22nd October 2021 by Dominique Childs
Rishi Sunak will stand and present his second budget for 2021 on 27th October 2021.
This short update summarises some of the speculated changes to tax and other matters that he might be considering, and if appropriate, action you could take before budget day to pre-empt these possible changes.
Inflation is predicted to rise to 4% this year and if supply issues continue into 2022, this level of inflation is unlikely to fall. At some point, the Bank of England may have to consider interest rate increases. This points to an uncertain year ahead, this could be the time for caution, and hanging on to any surplus cashflow.
Planning Note: If you have loans – say a government-backed Bounce-Back loan – where interest charged is fixed at low rates (Bounce-Back loans are fixed at 2.5%), you may be wise to resist any temptation to pay off these loans from present surplus cash-flow as further disruption to activity and interest rate hikes are both possible.
There is a possibility that capital gains tax (CGT) rates will be increased by aligning them with income tax rates.
Planning note: If you are considering the disposal of an asset that will create a CGT liability, you might be advised to complete the sale before budget day, 27th October. Very few tax changes apply from Budget day but disposals after the 27th may attract a higher tax charge.
There has been speculation for some time that tax relief for higher rate income taxpayers will be either scrapped or reduced based on payments into qualifying pension funds. With pressure on to reduce borrowings the Chancellor may be tempted to act on this issue.
Planning note: Have a conversation with your independent financial adviser before Budget day and consider bring forward contributions to secure existing higher rate tax relief.
Keep an eye open for our Budget Impact Statement that we will be distributing on or shortly after the 27th. And don’t forget to call if you would like to discuss any of the above issues. And please, don’t take any action without calling us in the first instance. This update can only provide you with generalised comments, we need to discuss any actions you may make before budget day based on your individual circumstances.
The Steven Burton & Co team are here to help you. If you need a sounding board, some business advice or a steer in the right direction, then please don’t hesitate to get in touch.
This material has been prepared for informational guidance purposes only. Whilst every effort has been made to ensure the contents are accurate, information contained may not be comprehensive. Furthermore it is not intended to provide, and should not be relied on for, tax or accounting advice. Steven Burton & Co Limited can not accept any liability for any errors or omission or for any person acting on or refraining from acting on the information provided.
Dominique’s exceptional service ethic stems from her deep commitment to our clients and their businesses. Solving any issues that may arise in a professional and approachable manner, Dominique’s knowledge of accountancy and experience in client facing roles facilitates our client support.
Learn More
Our friendly customer service team are on hand to help with any queries you may have.
LENA James2024-03-19We moved accountants to specifically follow David a number of years ago and have completely changed the running of our business for the better, through planning ahead we have managed to change our circumstances with an over drawn loan account and corporation and tax bills outstanding to a strategically run method of being able to clear the over drawn loan account and balance our other tax liabilities with advice and support from David We continue to be supported and take advice from his expert knowledge and guidance going forward and would highly recommend the Steven Burton team for your Accountancy needs.陈新谱2023-12-12Great service. Helpful and friendly people.Vince Strafford2023-10-19We moved our accountancy needs to Steven Burton and Co - specifically with David. It’s been night and day compared to our previous provider - we now have a partner who is helping us to develop our business and in a way that means we have long term security. Local, accessible and responsive - everything we need in a company that provides business critical services.MARK WALSH2023-06-26The team here are fantastic - every detail thought of and explained clearly. I have no hesitation in recommending Steve and the team to any business, be it fledgling or established. You get what you pay for and more.Jo C2023-06-20The team at Steven Burton & Co have been lovely to work with, helping us with our partnership accounts over the last couple of years. They are always on hand to answer any queries we have and are happy to explain in as much detail as we require. Everyone we have spoken to has been polite, welcoming and extremely knowledgeable and we look forward to continuing to work together as our business grows.Sam Nagle2023-05-12A truly fantastic accountants. Unlike any other accountants we have had in the past. They are 100 percent on the ball, helpful with fantastic advice. Not just sound accountancy advice but advising the business as a whole in various areas. Strategic quarterly reviews to really delve into the business to make sure profit margins are where they should be, and if they aren’t, they’ll look into improvements that can be made. Nothing is too much and the phone lines are always open for advice. Unlike most accountants their focus isn’t just on completing your annual accounts and not seeing you again for another year. I cannot praise the team enough for all the hard work they put in! They really have shifted our focus onto the aspects of the business that we were perhaps neglecting!Steve Lincoln2023-05-11The team at Steve Burton & Co provide a first class personal service to their customers. They support business owners through every step of the life cycle of their business, adding true value with their relationship.Toby Ishmael2023-05-05I work closely with the team at Steven Burton & Co. to assist their clients with a range of services and I can't speak highly enough of the professionalism and care that they demonstrate for their clients.Darren Vass2023-03-21I've worked with Steven Burton & Co for almost 4 years and I cannot fault their service. Dominique in particular is always available for advice and guidance whenever needed.Makala Balls2022-12-11The team at Steven Burton are friendly, professional and really get to know their clients so their advice is tailored to suit their individual needs. Cuts through all the jargon and offer clear and timely advice. Would highly recommend.
01787 329 709
info@stevenburtonandco.com
