The Autumn Budget produced its usual set of headlines and its usual set of footnotes. Most of what the press picked up isn’t going to land on the desks of the owner-managed businesses I work with. Some of the quieter announcements will. This is a short note on the difference.
The bits worth paying attention to
The dividend allowance and the dividend tax rates were not touched, but the personal allowance freeze remains in place, which means more directors will tip into the higher-rate band on their dividend income simply by standing still. Salary/dividend planning is therefore worth a fresh look — particularly for clients who routinely take a low salary and a modest dividend on top.
National insurance for employers is unchanged on the headline rate, but the threshold movements mean payroll costs for small employers will creep up at the margin. If you’re at the point of taking on a first employee, the maths should be re-run.
Capital allowances on plant and machinery for limited companies remain attractive. If you’ve been deferring a piece of capital expenditure for cashflow reasons, the timing question is worth a conversation.
The bits the headlines exaggerated
Reports of major changes to inheritance tax on business property relief were premature; the underlying reliefs are intact for most owner-managed structures, with the caveats that have always applied. Where there is a real change is in qualifying-asset definitions for some agricultural and trading-business overlaps — narrow, but worth checking if it touches you.
MTD for income tax (self-assessment) for sole traders and landlords is still being phased in. Thresholds remain in flux at HMRC’s end. I’d hold off on any panicked software purchase until I’ve confirmed where you actually sit on the threshold timeline; for many smaller landlords the answer is “not yet”.
What I’d do this quarter
Three things. Re-run salary/dividend levels for the rest of the tax year if you haven’t done so since the spring. Check whether any pending plant or vehicle purchases want bringing forward. And, if MTD for ITSA has been on your mind, ask before you spend money on software you may not need this year.
If anything in that list applies, the easiest thing is a short call.