May 4th, 2023Press Release

Allotts Business Update - Apr-May 2023

It’s taking a while to shake off colder temperatures, although there are glimpses of warmer weather ahead. The same might be said of the economy, with the Office for Budget Responsibility predicting at the Budget that inflation should come down sharply later in the year. In the meantime, however, pressures continue on businesses and individuals. Energy support has been extended to the end of June to maintain a lower energy price cap, but households and firms are still struggling. The aftermath of March’s Budget and advent of the new tax year are a good time to review your strategies for the months ahead in the light of recent changes.

Following on from the Chancellor’s Budget surprise of the effective abolition of the pension lifetime allowance, our feature for this edition of our newsletter explores the effect of that and other significant changes on your retirement tax planning.

Alongside the feature, our other stories include:

Mind your allowances – The combination of frozen and reduced tax thresholds will make a difference for many individuals and businesses and not for the better. If you’re a company owner drawing dividends rather than salary, the 2023/24 changes may need a review of your options.

Improving employee happiness – The cost of living crisis has created pressure for many employees who might be tempted by the promise of higher wages elsewhere. What can businesses do to help bridge the gap between affordable pay rises and inflation stress?

New year tax resolution – The former Chancellor Nadim Zahawi was the highest profile recent casualty of carelessness in tax affairs. HMRC will charge penalties if they believe there has been a lack of reasonable care in submitting your tax records, but how is that defined?

Our next newsletter will be out in July, hopefully in sunnier times, to highlight new developments and key issues. Meanwhile please do get in touch if we can continue to help or provide you with more information on any of the topics covered here.

Read the full document here >