It’s all change at number 10, again
The Fiscal Statement delivered by former Chancellor, Kwasi Kwarteng on 23 September, introduced a Growth Plan including tax cuts as promised by former Prime Minister, Liz Truss during her Conservative Party Leadership campaign. The heavily scrutinised tax cuts (aimed at boosting economic growth) had been described by Kwasi Kwarteng as ‘fair for all,’ despite the highest earners gaining the most.
The announcement of the cuts, which were to be funded by further borrowing, hurled the country into economic chaos, causing the pound to crash to its lowest ever level. Fast forward three weeks, and along with a change of Chancellor, from Kwasi Kwarteng to Jeremy Hunt, was a reversal of nearly all of the earlier measures that Kwarteng had outlined in his Fiscal Statement.
On 20 October, (just 44 days after taking over from Boris Johnson) Liz Truss resigned as Prime Minister. Five days later, Rishi Sunak took over the role and on 25 October Prime Minister Rishi Sunak announced that Chancellor Jeremy Hunt would be delivering a full Autumn Budget on 17 November.
Repurpose your online marketing budget
Businesses can end up spending a fortune on online advertising, which is all well and good for large international corporations with huge budgets. However, with only a small percentage of people actually clicking on online adverts, small and medium sized businesses might be better off using their online marketing budget in a different way.
Using social media can be beneficial in helping you to reach (and keep) potential clients. Creating effective social media and email marketing campaigns through targeted marketing rather than mass marketing is a highly effective way to promote your business. Platforms such as LinkedIn, Twitter and Instagram are great places for you to publish relevant content and provide the opportunity to engage with your target audience.
Optimising your website is something that you should definitely be focusing on. There are a number of things you can do to optimise your website in order to make it rank higher on search engines such as Google and Microsoft Bing. By using the right keywords, structure, and layout, you can shape your website into something that organically ranks well with search engine positioning. Good quality content that is relevant to your target market will create a better user experience and attract more visitors to your business’s website. Search engines appreciate good content and so do your potential clients. The more relevant and useful the content you publish to your website is, the better it will do with search engine rankings. Quality content will encourage client loyalty (without having to pay for online advertising).
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.
‘Tis the season to send your accountant your tax information
There are only 41 days until Christmas Day, and 78 days until the tax return deadline. With a strong
rumour of there being a shortage of turkeys this year, do you really need the added stress of not having your tax return submitted on time?
If you haven’t already done so, make sure to send your accountant any information they require which will enable them to prepare your 2021-2022 tax return. If you have already done so, don’t forget to check, sign, and send your tax return back to your accountant, so come Christmas Day, you will have one less thing to worry about.
We can’t help with turkeys, but we can help with tax returns.
DIARY OF MAIN TAX EVENTS
NOV / DEC 2022
|PAYE & NIC deductions, and CIS return and tax, for month to 5/11/22 (due 22/11 if you pay electronically)
|Corporation tax for year to 28/02/2022 unless quarterly instalments apply
|PAYE & NIC deductions, and CIS return and tax, for month to 5/12/22 (due 22/12 if you pay electronically)
|Deadline for filing 2021/22 tax return online in order to request that HMRC collect outstanding tax via the 2023/24 PAYE code