Tax Director at Baker Tilly Mooney Moore Angela Keery
Commenting on the publication of the UK Budget and Spending Review by Chancellor Rishi Sunak MP, Tax Director at Baker Tilly Mooney Moore Angela Keery said:
“Today’s Budget and multi-year Spending Review announced by the Chancellor was a cautious step forward in managing public debt and addressing the economic challenges caused by Covid-19. Set to the backdrop of rising inflation, official forecasts revealed lower than previously assumed damage to the economy by one percent, yet businesses remain perplexed as to what the current fiscal climate will mean for their costs in the coming months.”
“In reality, companies could be left facing dramatic increases to their tax bills in January 2025 due to reforms of basis period rules, the period for which they pay tax each year. Pair that with the pending Health and Social Care Levy, a rise in the National Living Wage and the previously announced increase in Tax on Dividends and Corporation Tax rates, there is an understandable sense of anxiety that take-home earnings for individuals and businesses will drop significantly.”
“Opportunity does exist, however, for local businesses via the reduction in Air Passenger Duty for regional flights from 2023. This will help with greater regional connectivity and companies doing business in other parts of the UK. Several other incentives for business were also announced in the form of investment in R&D so that it better supports business. Ultimately, today’s Budget delivered less tax reforms than anticipated, with changes to Inheritance Tax and Capital Gains Tax not included. While this may be welcomed in the interim, there is no doubt that the Chancellor is delaying the inevitable.”