25 Jan 2021
Taxes are going up
Not what you want to hear, but after the incredible Government support we’ve over the past nine months, it was inevitable.
Furlough payments via the Coronavirus Job Retention Scheme, Self Employed Income Grant (SEIS), Coronavirus Grants for closed businesses, notwithstanding the interest paid on billions of pounds of Business Interruption loans and Bounce Back loans have left a huge dent in the public purse.
Not everyone has benefitted of course and depending on the industry you are in, you may feel they could have done more.
On the 3rd March, a little under six weeks’ time, the Chancellor, Rishi Sunak, will be setting out the next phase of the Government’s plan to tackle the virus and the further support to be offered. It has been widely rumored that Corporation Tax, being a tax on company profits will increase first as it’s one that doesn’t tax personal income, although if you’re reliant on Dividends to support your income, you may not think so.
Given recent numbers of hospital admissions, it feels unlikely we will be out of this by March and therefore the Government may not use this budget to increase personal taxes but we can rest assured it will be happening.
If you are self-employed, it is important to stay close to your tax advisors who will be best placed to offer tax planning both in this current tax environment and WHEN things change.