How Does Downing Street Impact Accountancy?Nov 03 2022
As Rishi Sunak takes his seat in number 10 Downing Street, there’s no denying the past six months have been a whirlwind. The political landscape directly impacts the work of accountancy firms up and down the country. We rely heavily on local and national legislation to guide you in a positive direction. Between budget U-turns, uncertainty and inflation soaring, it’s been anything but straightforward, but be assured the team at MMG is here to help you make sense of the finer details.
How does the government’s budget impact accountancy?
The set of rules and guidelines we follow as accountants are reliant on the Chancellor’s budget. What is usually a twice-yearly task, the government’s budget sets out the latest rules around the items we support you with on a daily basis, including:
- Corporation tax rates
- Income tax rates
- National insurance
- Stamp duty
…And much more. In the current climate, this legislation is being altered regularly. For example, Kwasi Kwarteng’s ‘mini-budget’ was reversed in a matter of weeks. These ever-evolving developments mean we need to be fast on our feet to revert guidance, which can prove challenging when providing long-term tax advice.
The team at MMG understand how unsettling this can be as a business owner or employer, and we’re on hand to help you make sense of the current landscape. We have yet to hear what the next budget will entail, but we’ll be sure to communicate this as soon as information becomes available.
What will happen now?
With Jeremy Hunt now appointed the UK’s new Chancellor, we expect an Autumn budget announcement imminently. This will likely include updates around national insurance and cost of living payments. At the time of writing, there’s yet to be a set date for when this budget will be announced, although we expect it’ll become clear in mid-November. Our team will be primed and ready to share this information with you through a budget special edition of the Bean Counter. If you haven’t yet signed up for our regular newsletter, you can stay up-to-date with MMG and all things budgets by clicking here.
We’re here to help
While the recent uncertainty in number 10 is certainly keeping us on our toes, our team is busy behind the scenes ensuring we’re offering you the right and relevant guidance. Please don’t hesitate to reach out if you have any questions or need additional advice. We’re here to support you and your business. Get in touch today.