October newsletter 2021

In our October newsletter, we focus on: our predictions for tax changes in anticipation of the upcoming autumn budget, the changes coming into effect around NIC and dividend tax rates, the importance to SME businesses in evaluating their supply chains, an outlook on the UK and global economies and how family vendor assisted management buyouts work.

Our key takeaways include;

  • Consider your remuneration strategy (salary/dividends etc) to ensure that tax/NIC savings are maximised before the planned increases to NIC and dividend tax rates come into force.
  • It is worth considering incentivising employees by increasing their net pay through the use of salary sacrifice arrangements for pension contributions. This will also enhance the savings to be had for both the employee and employer. 
  • If your business has incurred trading losses, you may want to consider using the carryback claim provisions which could result in a 19% relief. Alternatively, you might want to consider carrying this forward to future years when the business is more profitable as this could achieve a more favourable relief at 25%.