A leading financial expert says North Yorkshire firms big and small are concerned that their tax bill could be going up again in tomorrow’s Budget.
Phil Thompson, Senior Tax Manager at Smailes Goldie accountants in Selby, told YorkMix “there’s quite a concern out there from a vast array of our clients – concern that things are only going to go one way, and that is taxes going up”.
Smailes Goldie works with everyone from sole traders to large corporations, and he said many have been anxiously waiting to see what Chancellor Rachel Reeves announces.
Since the last Budget hit businesses with higher National Insurance bills and minimum wage costs, “people have been putting off their plans, rather than commiting their cash to anything – until they’re certain about what what the financial climate looks like”.
Phil said there were a number of things to look out for in the Budget tomorrow. And individuals might be targeted as much if not more than businesses.
It looks likely that people will be hit by income tax thresholds being frozen, “which means that more people get pulled into higher rates of tax. It’s called the fiscal drag and is kind of stealth tax.”
Pensions could also be a target. “We think that might be something that’s on the radar – how much people can actually save for their pensions and the tax relief that you receive when you put into your pension.”
The Chancellor could look to impose extra costs on people trying to give their assets away to other members of their family.
National insurance rules may also change again. “Various businesses pay national insurances, but landlords don’t.
“There’s rumours that landlords might start paying national insurance on their profits.
“Savers, as well, putting money into cash ISAs – the limits may go down there.”
Phil added: “Everyone’s bracing themselves. I think the best we can hope for is exactly the same as it is today. But that’s wishful thinking.”
Phil will be giving his expert commentary as YorkMix brings you all the Budget news as it happens from tomorrow lunchtime (Wednesday).
