Rishi’s Spending Review – what’s next?Featured Products Promotional Features
Posted by: The Probe 30th November 2020
Michael Lansdell is a founding partner at specialist dental and medical accountants Figurit and a chartered accountant. Here, he gives an overview of the Chancellor’s November Spending Review.
On 25 November, the Chancellor delivered his latest Spending Review. “Our economic crisis has only just begun,” he said – so, it’s time to roll up our sleeves and prepare for what’s next.
For dental practitioners and dental business owners, here’s a breakdown of the most relevant parts:
Are taxes set to rise?
The Office for Budget Responsibility (OBR) sets out its framework for the future path of the UK economy. It forecasts that the economy will contract by 11.3% in 2020, and economic growth is also expected to tail off, from 5.5% in 2021, to 1.8% in 2024. Total public sector debt is forecast to rise to 105.2% of GDP in 2020/21, while GDP is expected to contract.
Although the OBR has not assumed the need for tax increases in the coming years (other than those that are built into the system anyway), it did say that a “fiscal adjustment of £27 billion” minimum, will be needed in the medium term, so the end of the five-year forecast period.
The good stuff
As well as no tax announcements (yet), the business rates multiplier will be frozen in 2021/22. This could save businesses in England millions over the next five years and there was a suggestion that the government could be considering business rates relief, too. Also, from April 2021, the National Living Wage (NLW) will increase by 19p, and it will start to apply from age 23. The National Minimum Wage rates are set to increase too.
There has never been any doubt that we will have to move beyond simply surviving at some point in order to “return to a sustainable fiscal position” in the future. If you need support and guidance to optimise your business and/or personal finances in the months ahead, talk with a specialist dental accountant. At Figurit, we have helped many of our clients adapt to these challenging times we face and also to prepare diligently for whatever the future may bring. When you work with an expert, and they become part of your team, you will gain the confidence to be decisive, pragmatic and find the best solution for you.
For more information please visit https://figurit.com
or call Figurit (formerly known as Lansdell & Rose) on 020 7376 9333.
Michael Lansdell is a specialist Dental Accountant and Tax Advisor with strong technical and communication skills. Completing his training with international accounting firm Deloitte he then became a founding Partner at Figurit (formally Lansdell & Rose). Michael combines a strategic approach with high attention to detail and is focused on saving his clients tax over both the short and long term, using robust tax-saving vehicles and tax efficient business structuring.
T: 020 7376 9333 E: firstname.lastname@example.org