As we move into the final quarter of the year, there’s growing talk that the Autumn Budget could bring new tax rises and many small and medium-sized businesses are already starting to prepare.
According to a recent ICAEW Business Confidence Monitor, over half of UK businesses say they would have to freeze hiring, delay pay rises or cut investment if taxes go up. While nothing has been confirmed yet, it’s a sign that change could be coming.
So, what might this mean for your business and what can you do now to stay ahead?
While we won’t know the full details until the Chancellor delivers the Autumn Budget (expected in November), there are a few areas under discussion:
- Corporation tax – currently 25% for larger profits; there’s speculation of possible tightening of reliefs or allowances rather than a rate cut.
- Dividend tax and personal allowances – thresholds may remain frozen, meaning more income could be pulled into higher tax bands through “fiscal drag.”
- National Insurance – no rise confirmed, but a review of NI thresholds and small employer reliefs is ongoing.
- Green and investment incentives – the government is said to be considering new schemes to encourage energy-efficient investment or R&D spending.
In short, the next Budget may not be about headline tax rate increases, but rather smaller changes that quietly increase the overall tax take.
What this could mean for your business:
For many SMEs, even small shifts in tax policy can make a big difference to cash flow and future planning. A freeze on thresholds, for example, can mean you pay more tax even if your profits haven’t grown.
Some businesses may want to:
- Review the timing of dividend payments or bonuses before year-end.
- Check the structure of investments or asset purchases – you may benefit by acting before new rules take effect.
- Look at salary and hiring plans to stay flexible if employment costs rise.
- Revisit profit forecasts so your accountant at Accountants247 Glasgow South can model “what if” scenarios for potential tax changes.
What you can do now with the Accountants247 Glasgow South team
- Book a year-end planning review – a short meeting with your accountant can help identify ways to manage profit extraction and investment timing efficiently.
- Forecast your cash flow for the next 6–12 months. Build in a little buffer in case of higher tax bills or reduced reliefs.
- Stay informed – when the Autumn Budget is announced, we’ll break down what’s changing and what it means for your business in plain English.
While we can’t predict exactly what will appear in the Chancellor’s red box, it’s clear that tax policy will remain under pressure as the government looks for ways to fund growth and stability.
By taking a proactive approach now – reviewing your numbers, timing major decisions carefully and staying in touch with the team at Accountants247 Glasgow South you’ll be ready for whatever the Budget brings. Speak to one of our friendly team members today.