Time for some tax planning, the Chancellor nurtures the financial sector, and support for more sustainable packaging
A variety of topics are included in today’s blog post, including the importance of tax planning to reduce tax liabilities, how the Chancellor is attempting to nurture the financial sector, and the latest initiative to encourage more sustainable packaging.
Why you should prioritise tax planning before the tax year ends
As the UK tax year-end approaches on 5 April, it’s an excellent time for you to review your business finances and explore tax planning opportunities, particularly if you are self-employed. Tax planning can help you to reduce tax liabilities, boost your cash flow and put you in a stronger financial position.
Let’s explore some areas that you could think about.
Capital allowances
One key area to consider is capital allowances. If your business invests in equipment, vehicles, or machinery, you may be eligible for tax relief under the Annual Investment Allowance. Reviewing these purchases before the tax year-end can help make sure that you don’t miss out on a valuable deduction.
Pension contributions
Another potential benefit lies in pension contributions. By contributing to employee or director pensions before the tax deadline, you can potentially lower your taxable profit while promoting loyalty in your staff.
R&D activities
If your company has engaged in innovation, you could be eligible for tax credits under the Research and Development Tax Relief scheme. These credits can provide a significant boost.
Proactive planning now can save headaches later and uncover opportunities to improve your bottom line. Why not give us a call to make sure you’re taking full advantage of the options available to you?
Financial services growth targeted by the Chancellor
HM Treasury has confirmed that the Chancellor will be hosting a series of Industry Forums in January and February with the aim of seeking views about the best way to deliver long-term in the sector and across the country.
Financial services have been identified as a key growth-driving sector in the government’s Modern Industrial Strategy. The Industry Forums will help to make sure that the key issues that matter most in the financial services industry are considered as part of the government’s upcoming Financial Services Growth and Competitiveness Strategy.
The forums will be chaired by the Chancellor and the Economic Secretary, with leaders from retail banking, wholesale and international banking, insurance and reinsurance, asset management, fintech, and the mutuals and co-operatives sector all involved.
Rachel Reeves, the Chancellor of the Exchequer, explained that the financial services sector is at the heart of her mission for growth.
It’s expected that the Financial Services Growth and Competitiveness Strategy will be published later in the year.
New agreement with Switzerland to recognise professional qualifications
A new agreement between the UK and Switzerland was announced last week that means UK-qualified business people will now find it easier to work in Switzerland and vice versa.
The agreement applies to a wide range of professions including lawyers, auditors, driving instructors, cabin crew and anaesthesia associates.
The ability of professionals and businesses to supply services overseas in regulated professions usually depends on the destination country accepting their qualifications. The new deal means that there could be a boost to UK-Swiss trade. According to government statistics, this is currently worth £46 billion a year, with professional and business services worth £8 billion.
The deal could be especially good news for lawyers and legal firms. The agreement allows certain legal professionals to become qualified in the other country after practising for three years. Switzerland is one of the largest and most important export markets for UK legal services in Europe, so this could be key in helping legal firms and businesses with legal teams to decide on how to best deploy their qualified staff between UK and Swiss offices.
Talks on an upgraded UK-Switzerland trade deal are continuing.
See: https://www.gov.uk/government/news/uk-firms-boosted-by-new-qualifications-agreement-with-switzerland
New scheme administrator unveiled to help reduce packaging usage
A new scheme administrator tasked with helping businesses reduce packaging usage was unveiled last week. PackUK (called PecynUK in Wales) will also promote more sustainable packaging alternatives.
As part of the UK’s four nation Extended Producer Responsibility for Packaging (pEPR) scheme, PackUK is being used to apply the ‘polluter pays’ principle. It will shift the cost of managing household packaging waste from taxpayers and local authorities to businesses that use and supply the packaging.
Therefore, PackUK will set and raise pEPR’s fees from affected businesses. It will also make packaging waste disposal payments to local authorities in exchange for their delivering better collection and recycling services.
It is expected that pEPR will generate more than £1 billion annually. However, the intention is also to incentivise businesses to reduce unnecessary packaging and use more recycled and recyclable packaging.
PackUK will also be involved in raising public awareness on how to dispose of packaging waste correctly.
The Packaging Innovations event, which is for the latest advancements in packaging solutions, is being held at NEC Birmingham on 12-13 February 2025. PackUK will be attending, so this could be a good opportunity to engage directly with their team.
See: https://www.gov.uk/government/news/packuk-pepr-scheme-administrator-launched