Following the budget announcement today Peter Mardon Commercial Director gives their perspectives on what today's budget means for business owners.
The Budget's Impact on Tax Increases and Business Costs
Well, the budget has been delivered. As expected, huge tax increases but also huge borrowing increases and huge spending increases. For businesses, the increase in National Insurance will make it even more expensive to employ people. This increase in NI adds £25 billion extra tax on UK businesses.But the government felt it needed to raise tax. However, its primary choice to target NI could be a bad choice as it is a "tax on jobs"
The OBR says 75% of that additional NI cost will end up being borne by working people, which is almost £19bn.
Capital Gains Tax Increases and Their Implications for Entrepreneurs
The increase in Capital Gains Tax rates was also expected and is perhaps less aggressive than many feared. However, there is still no indexation so it remains a tax on inflationary gains. We assume the increases will come into effect next tax year so we expect a rush by entrepreneurs to sell their businesses and other assets before then.
Certainly a historic Budget and yet, as always, the devil is in the detail which will emerge over the next few hours
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