After the tax rises announced in yesterday’s Budget, everyone seems to have an opinion about Rishi Sunak and what he has done with the country’s finances over the past twelve months, writes Kat Mitchell.
Like much Government action during the Coronavirus pandemic, the Budget announcement has been polarising. Some are shouting from the rooftops that he has launched a tax grab that we, especially Generation X, will be paying for well into the next decade. Others have said that even by extending the furlough scheme and introducing incentives for apprenticeships, he has still not done enough to help UK employers and safeguard jobs.
Personally, I expected worse in the way of tax rises, although “Tax Day” later this month could still see more changes on the near horizon.
As someone who is in the process of buying a new home, the extension to the stamp duty holiday has taken the pressure off following the latest lockdown slowing our purchase to slower than a drunken snail. It’s quite a relief for us, and many more buyers in our position who had started to madly scramble to find the extra cash.
The rise in corporation tax to 25% will hurt many smaller companies, many of whom may not be expecting to fall into the category of the rise which Sunak billed as being aimed at large corporations.
Even as a small company of three, we are keeping a close eye on the thresholds and small print wary of being caught in the increases. Sunak claims that around 70% of businesses will only have to pay the existing 19% rate, but with the thresholds set to start from profits about £50,000 many of us smaller businesses are likely to also feel the sting.
What has become clear is that Sunak is banking on a swift recovery in GDP and low interest rates. It is a gamble to be taking but one that I personally think could pay off.
Brandon Consulting Services Ltd 