Talk to the Taxperts

01382 312100

Mini-Budget U-Turn: Corporation Tax Rise Reinstated

In a dramatic turn of events, starting with the departure of Chancellor Kwasi Kwarteng, Prime Minister, Liz Truss, confirmed the rumour circulating for the last two days that the UK Government would reinstate the corporation tax rise to 25% with effect from 1 April 2023.

Whilst the short term changing of policy is singularly unhelpful to businesses, this U-turn makes it important for businesses to consider matters including timing of bonus and pension payments, whether to incorporate or not, assessing whether a group can be rationalised to reduce associated companies as well as cash flow planning for higher corporation tax charges.

Partner and Head of EQ Taxation, David Morrison, commented, “U-turns are the enemy of businesses who crave certainty of future policy to allow them to make long term decisions. The reinstated rise in corporation tax to 25% will have cash flow implications for clients in future meaning that it has never been more important to plan for these changes. We sincerely hope that common sense now breaks out and we encourage our clients and any other concerned businesses to contact us for some advice”

As always, our EQ Taxperts are on hand to support you and your business. if you’d like to discuss your circumstances, please get in touch with our EQ Taxperts via [email protected] or call one of our offices.

Latest News

View all latest news

August 31, 2023

Advisory Fuel Rates For Company Cars

The new company car advisory fuel rates (AFRs) published by HMRC take effect from 1 September 2023. The AFRs for journeys undertaken from 1 September are: After being…

August 16, 2023

Maximising Tax Benefits For Leisure Sector Businesses

Running a business in the leisure sector is all about bringing joy and relaxation to your customers. However, when it comes to tax, it’s essential to ensure your…

Download our EQ app and keep up to date with tax news, changes and have access to our EQ Portal, tax calculators and key tax dates at your fingertips. Click on the relevant button on your device to download our free app.

Visit EQ Accountants Visit EQ Accountants

Explore the full range of EQ Expertise