Clive Owen LLP

Lee Watson, tax partner, Clive Owen LLP

“Tax increases could have probably gone further but thankfully did not. However, there is still an impact on businesses as R&D tax relief for small and medium companies will be reduced, whilst the relief for large companies will increase.

Business owners and savers will pay more tax due to cuts in the rate at which the 45% tax rate starts and the cutting of dividend allowances in the next two tax years.

“Those business owners driving hybrid or pure electric cars will see future income tax rises.

“In addition, investors will face higher taxes on capital gains as the tax free annual exemptions will also reduce in the next two tax years. This could also impact business owners selling their business or buy to let property.

“The VAT threshold has been frozen which could see more businesses brought into the VAT reporting regime and therefore making tax digital, due to rising prices of goods, meaning that the turnover of businesses is likely to increase to compensate for additional costs facing businesses.

“There will be a rates revaluation exercise in 2023 which could see businesses face larger rates bills but there will be reliefs for certain businesses.

“Employers will also be required to comply with higher national minimum wage rates from April 2023.”