Our new Prime Minister has a lot on his plate. In addition to all the uncertainty caused by high inflation and energy costs, we now have tax uncertainty, as we wait to see exactly what changes the new government will make in Jeremy Hunt’s Autumn Statement later this month.
New help with energy costs has been announced already. A typical household will save an average of £1,000 a year on their energy bills, compared to what they might otherwise be, under a new two-year ‘Energy Price Guarantee’. The green levy on energy bills being temporarily removed produces around £150 p.a. of this saving.
Businesses and public sector organisations will see equivalent support over this winter. This capping of prices will help to get inflation under control, but is being paid for by a massive increase in government borrowing. It will be interesting to see what effect this has on interest rates and taxes going forward. We should know more details of the government’s plans after the ‘emergency Budget’ that we have been promised.
We will keep you up to date with any tax changes announced over forthcoming weeks, but in this newsletter we cover topics that we can talk about with certainty. These include upcoming changes for unincorporated businesses and those transferring assets on a divorce, common VAT errors and maximising tax relief for charitable donations.
There is lots to think about, so please contact us if you would like to discuss any of these issues with us.
