Oct 18th, 2023Press Release
Kingswood Allotts Business Update - Oct/Nov 2023
As the days draw in and we head towards winter, many will be focusing on the ongoing costs of energy and day to day living. Unlike last year, the majority of government support has now ended. The uneven nature of the seasons has been matched with economic news, as growth and inflation edged up, then down. Although the Bank of England has held interest rates, there may be more upward movement before a predicted slow decline.
Moving towards the year end also brings some necessary decisions for company owner directors considering their bonus or dividend options. The equation may well have shifted as tax and pension changes are likely to have affected the decision-making. In this edition of our newsletter, we explore the available options including pension contributions. Some may find themselves tipping into a higher tax bracket as well. Rising savings rates and frozen tax thresholds, combined with the Bank of England’s interest rate rises, have resulted in more individuals becoming higher-rate taxpayers. As highlighted in the feature article for this edition, we look at the requirements to pay more tax on savings income and how to ease this financial strain by opting for tax-efficient investments.
Alongside the feature, our other stories include:
Inheritance tax penalties soar – Over the past two years, inheritance tax (IHT) penalties have risen by more than 50% due to a frozen nil rate band threshold and higher property prices. Consequently, more estates are now becoming liable.
Tax-deductible car charges – The London ULEZ controversy has brought additional car charges into the headlines. Some related to clean air can be reclaimed when incurred for business use.
Taxing influencers – The growth of those making a living via social media has come under scrutiny from HMRC, with some unclear about the tax implications of their online earnings.
We also look at updates to flexible working for parents, accounts filing penalties and more.
Our next newsletter will be out in October, ahead of a potential Autumn Statement, to highlight new developments and key issues. Meanwhile please do get in touch if we can continue to help or provide you with more information on any of the topics covered here.