Welcome to our round up of the latest business news. Please contact us if you want to talk about how these updates affect your business. We are here to support you!
New Prime Minister and cabinet – tough decisions ahead!
A new period of this government begins for us all, again! We have a new Prime Minister, Rishi Sunak and a new cabinet facing the toughest economic conditions in decades.
So what actions can we expect from the government in the next few weeks?
Chancellor Jeremy Hunt will outline the UK's tax and spending programme on the 17 November as a full Autumn Statement. This has been delayed for further economic forecasts to be prepared. Mr Hunt has stated that this new government will set out to ensure UK borrowing falls over the medium term. The “upgrade” to a full Autumn statement also suggests wider spending and taxation policies will be announced. Prime Minister, Rishi Sunak, has warned of “difficult decisions” to be taken to ensure economic stability and confidence. We will keep you fully informed of any changes in taxation as they occur.
Faced with uncertainty, what actions should a business owner take right now?
Take some time to look at your business's strengths, weaknesses, opportunities and threats and get a clear understanding of its position in the marketplace, the competition, the systems and the way things are done and the improvements that could be made. Focus on what the business is to look like when it is “complete” or running profitably and successfully. Then you can determine priorities – the big issues that need to be focussed on – then you can make a plan.
It is also a good idea to plan for a range of scenarios “good and bad” so that you can be flexible about the direction your business should take.
New supply chain cyber security guidance
The National Cyber Security Centre (NCSC) has published new guidance to help organisations effectively assess and gain confidence in the cyber security of their supply chains.
The guidance follows a significant increase in cyber-attacks resulting from vulnerabilities within supply chains in recent years, including high-profile incidents such as the SolarWinds attack.
In addition to guidance focused on improving supply chain cyber resilience, the NCSC has published a range of advice to help organisations improve their own cyber security.
This includes the 10 Steps to Cyber Security guidance, aimed at larger organisations, and the Small Business Guide for smaller organisations.
CORPORATION TAX RATES TO INCREASE AFTER ALL
Another of Liz Truss' flagship policies was to halt the planned rise in corporation tax rates from 1 April 2023.
These increases will now go ahead. From 1 April 2023, corporation tax will increase to 25% where a company's profits exceed £250,000 a year. The current 19% rate will however continue to apply where profits are no more than £50,000 a year.
Where a company's profits fall between £50,000 and £250,000 a year, an effective rate of 26.5% applies to profits in excess of £50,000. Some companies that are connected or in the same corporate group must share these size limits, making the 25% rate more likely to apply.
Even at these higher rates, the UK remains competitive compared to other major trading countries.
This is because many of those are also increasing their corporate tax rates.
DIARY OF MAIN TAX EVENTS
NOV / DEC 2022
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Date
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What's Due
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1/11/22
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Corporation tax for year to 31/01/2022 unless quarterly instalments apply
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19/11/22
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PAYE & NIC deductions, and CIS return and tax, for month to 5/11/22 (due 22/11 if you pay electronically)
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1/12/22
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Corporation tax for year to 28/02/2022 unless quarterly instalments apply
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19/12/22
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PAYE & NIC deductions, and CIS return and tax, for month to 5/12/22 (due 22/12 if you pay electronically)
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30/12/22
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Deadline for filing 2021/22 tax return online in order to request that HMRC collect outstanding tax via the 2023/24 PAYE code
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