Azets is urging businesses to take advantage of new and extended tax schemes, ahead of rising inflation forecasted to last through till next year.
Praveen Gupta, national head of tax with Azets, is predicting that “harsher rules” could be introduced in the Spring, along with the withdrawal of existing support measures.
In last week’s Autumn Budget, the chancellor confirmed that the economy is forecast to return to its pre-Covid level, with a 6.4% growth planned by the end of 2021.
Despite a “business friendly” Budget, Gupta warns of further challenges for SMEs, with inflation at 3.1% in September and expected to rise to an average of 4% in the next year.
He is urging SME businesses to take advantage of these schemes, with 1.25% increases to National Insurance contributions already confirmed from April 2022 and corporation tax increasing from 19% to 25% from April 2023.
Gupta said: “The chancellor delivered a relatively upbeat Autumn Budget, but more challenges lie ahead and, for many SMEs, the support measures available today won’t be sufficient to offset higher bills over the coming 12 months.
“SMEs should seek professional advice to ensure they take full advantage of every available allowance, with inflation set to keep rising and the extended Recovery Loan Scheme ending on 30 June 2022.”