With Covid, several Prime Ministers and Chancellors and the run up to a general election, changes to the tax system have been numerous and we can expect more in 2024.

What can we see on the horizon and how should you react?

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?

As well as moving into winter with an energy crisis, it's not just the temperature which is freezing. The Chancellor today froze (and reduced) many allowances, going cold on small business growth.