2021 continued to be 'interesting times' for SMEs: for many, no doubt, it was rather more 'interesting' than they might have wished for. And tax made its contribution to that.

Writing for Tax Journal, BKL tax consultant David Whiscombe examines this mixed bag.

'Having seen significant tax increases in the March Budget, especially in the effective rate of tax on distributed corporate profits, owners of SMEs may regard themselves as having 'dodged a bullet' with no CGT or pension tax changes in the Autumn Budget: but for how long? Abolition of basis periods for unincorporated businesses brings an accelerated tax charge for some and adds to the compliance burden for the few businesses unwilling or unable to change accounting date. Meanwhile there is the usual mix of the welcome and the unwelcome in the year's crop of court and tribunal decisions.'

The article was published in Tax Journal Issue 1557 and is available in full to subscribers on the Tax Journal website. It will be available here in due course.

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