Nigel Holland BA (Hons) FCA, Principal of Holland & Co Chartered Accountants, commented:
“Businesses need practical tax planning now more than ever to protect profitability and cash flow.”
The Confederation of British Industry (CBI) has warned that UK businesses are reaching a tipping point as the tax burden on the private sector continues to increase. Speaking at the CBI’s national business dinner, chief executive Rain Newton-Smith highlighted that businesses paid a record £345 billion in taxes last year, including an estimated £27 billion arising from increases to National Insurance contributions.
The CBI argues that rising business taxes are placing increasing pressure on employers already facing higher wage costs, inflation, energy bills and regulatory compliance requirements. Consequently, many businesses are finding it more difficult to invest, recruit staff and grow.
Furthermore, the CBI has warned that increasing costs for businesses ultimately affect consumers through higher prices and reduced economic growth. As a result, calls are growing for policies that support enterprise, investment and productivity.
At Holland & Co Chartered Accountants, we can help businesses review their tax position, improve cash flow management and identify legitimate tax-saving opportunities. Our Tax Review Service, costing £200 plus VAT, can help determine whether your business structure remains appropriate and whether further tax planning opportunities are available. We can also undertake a comprehensive Financial Health Review, assist with KashFlow implementation and review your website’s effectiveness in generating profitable new business.
Five key points:
• UK businesses paid a record £345 billion in taxes last year.
• The CBI says businesses are reaching a financial tipping point.
• National Insurance increases have significantly increased employer costs.
• Higher business costs may reduce investment and economic growth.
• Tax planning can help businesses improve profitability and cash flow.