With the Budget on the horizon, the Government has promised to keep taxes fair and avoid increasing the burden on working people and certain businesses.
It has confirmed that there will be no hikes in:
While Corporation Tax doesn’t affect individuals directly, keeping it steady could be good news for consumers too.
With VAT and Corporation Tax frozen, businesses won’t need to pass on extra costs, helping to keep prices in check.
This is a big commitment given the current need to address the public finance gap.
What does this mean for businesses?
For businesses, this is likely to be welcome news.
Without additional taxes in these key areas, companies can focus on reinvesting in growth.
The Government is especially keen to support sectors like sustainable technology.
However, some businesses may still hope for an extension of the 2023/24 National Insurance reductions to include employer contributions, although this seems unlikely at present.
Impact on individuals
For most workers, especially those whose income comes from regular salaries or wages, the pledge is reassuring.
No changes to Income Tax and NI mean they won’t face extra deductions, but for those with assets like property, private pensions, or investments, the outlook may be different.
To make up for the shortfall, the Government may look to increase taxes on wealth, such as Capital Gains Tax (CGT).
If you have high-value assets, it is a good time to begin proactive tax planning.
Need help managing your tax liabilities or need advice regarding the Budget? Contact us today.
