Home / Ascendis News / 2020 Spending Review
The Chancellor’s update to the House of Commons this week made pretty grim listening. It’s not going to surprise anyone to hear that due to two national lockdowns and a myriad of local lockdowns, the economy has shrunk in 2020 by 11.3%. The economy is forecast to recover back to pre-pandemic levels in 2022.
You can look at this two ways. Either let it get you down. Or remember that after the Spanish Flu pandemic finished in 1920, Britain enjoyed the roaring 20s. In other words, better times are coming ahead. And we are here to help you get to those better times and enjoy the fruits of your labours.
Apart from gloomy economic figures, the chancellor did announce some changes you need to be aware of:
Given that the country has its highest borrowing levels outside of war time, it is fairly certain that we will see in the next year or so rising taxation to help the treasury balance the books. We don’t know yet what taxes will be raised and what reliefs will be lowered. But expect – if the media is to be believed all these to be raised; Capital Gains Tax, Inheritance Tax, Income tax, and NI contributions for self-employed people. We are already seeing some of this happening at HMRC. They are toughening up their stance on ‘time to pay’ agreements, as well as investing very heavily in fraud and tax investigations.
As with all these things, if you are concerned about your cash flow or any potential irregularities please get in touch with us sooner rather than later. The earlier we find out about any problems the easiest it is for us to help mitigate the impact for you as a business owner.
Finally, due to the above we would also certainly recommend that you take out our Tax Investigation Cover policy which starts at £150+vat (dependant on turnover level). The policy this year has improved significantly and now also includes Directors & Management Liability Insurance and an inclusive Employment Law helpline with an established firm of Solicitors. Both these additions are also very critical for this unprecedented Covid period.
If you require any further information please contact us at enquiries@ascendis.co.uk or phone us on 0161 359 4227.
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Ascendis Intermediaries Ltd, registered at Unit 3, Building 2, The Colony, Wilmslow, SK9 4LY. Company Register number is 08849585. We are registered with the ICO, ZB266211 and you can check via www.ico.org.uk.
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