With less than a week to go before the Autumn Budget, West Midlands accountants Hayward Wright wants businesses and other taxpayers to prepare for new challenges ahead.
Having sifted through the latest speculation and rumours, the firm feels that big changes could be afoot, with the Prime Minister and the Chancellor both saying they won’t rule out further tax increases.
Which taxes will rise is not certain. However, a tax on wealth through Capital Gains and Inheritance Tax could be one area the Government considers.
These would primarily target business owners, landlords and those with high-value assets who decide to sell shares, property or their assets or pass them on to beneficiaries after their death.
Capital Gains Tax rates, in particular, could double if the Government decides to follow previous recommendations made by the Office for Tax Simplification, as has been suggested.
Alistair Hayward-Wright, Managing Director at Hayward Wright, said: “It is looking more and more likely that the upcoming Budget will be packed with new measures that could lead to higher tax bills for both businesses and individuals.
“The Government has said it is committed to balancing the books and so doesn’t intend to increase its borrowing significantly.
“With a huge deficit created by the support offered during the pandemic, this means that the burden is likely to fall on taxpayers.”
There is also concern that businesses and households could soon be subject to new green taxes that aim to tackle the Government’s new environmental targets.
With the Net Zero: Build Back Greener strategy launched just days ago, with significant spending commitments, the costs to the public purse may also have to be met by taxpayers.
“The UK’s plans for reaching net-zero are extremely ambitious and will make the nation one of the greenest countries if targets can be reached,” added Alistair.
“While the ambitions of these environmental strategies are important, the costs need to be funded. Speculation has been growing for some time about the potential for future eco-taxes that not only raise money for greener infrastructure but also try to modify the behaviour of businesses and individuals.”
Hayward Wright recommends that businesses and individuals carefully review the Autumn Budget and act quickly if the announcements affect their plans or lead to a substantial tax increase.
The firms will be publishing information on social media on Budget day (27 October) and producing a helpful summary of the main points and their impact to keep clients and other businesses up to date on the Chancellor’s announcements.
Do you need help managing your tax affairs? Speak to Hayward Wright by visiting www.haywardwright.co.uk
About the author
Alistair Hayward-Wright, is the managing director of Hayward Wright. The company works within many different sectors providing clients with a variety of tax, accounting and business advisory services. They are proactive accountants based in Redditch, Worcester and Solihull but cover much of the Midlands including Worcestershire, Herefordshire, Warwickshire, Gloucestershire & Shropshire.