What Small Peterborough Businesses Should Watch Out For
August might not be the month you naturally think about tax changes – especially when the sun’s out and you’d rather be enjoying a BBQ than reading budget predictions. But if you run an owner-managed business in Peterborough, it’s the perfect time to get ahead of the Chancellor’s Autumn Budget.
By the time the Budget is announced later in the year, it can be too late to make the most of certain tax-saving opportunities. The smart move? Keep an eye on the August economic updates and Government hints and be ready to act before the ink on the Budget speech is even dry.
1. Will Corporation Tax Rates Shift Again?
The last few years have been a bit of a rollercoaster for Corporation Tax. While the current rates range from 19% to 25% depending on profit levels, there’s always the possibility of further tweaks to thresholds or rates.
If you’re forecasting strong profits this year, August is a good time to:
- Review your management accounts.
- Consider whether accelerating or deferring income or expenses could reduce your 2025/26 bill.
- Speak to us about dividend and salary planning to ensure you’re making the most tax-efficient choices.
2. Protecting Your Income with Dividend Allowances
In recent years, the dividend allowance has been steadily shrinking and rumours suggest it could tighten again. If your income mix includes dividends, watch for early leaks or policy briefings in August. Acting before the changes take effect could save you thousands, for example, by bringing forward planned dividend payments.
3. VAT Registration Threshold – A Freeze or a Cut?
For businesses hovering just under the current £90,000 VAT threshold, any change here could have a big impact. If the threshold is lowered, more small businesses will be caught in the VAT net, increasing prices or cutting margins. In August, check whether any Government consultations point towards changes and if so, we can model the effect on your cash flow before it hits.
4. Incentives for Investment
The Government often uses the Autumn Budget to tweak capital allowances or incentives like the Annual Investment Allowance. If you’re planning major equipment or technology purchases, an August review could signal whether to buy now or wait. Timing is everything – especially if you want to claim the maximum tax relief.
Support for R&D and Innovation
Research and Development tax reliefs have been evolving, and there may be new incentives for innovative small businesses. Even if you don’t think your work qualifies, you might be surprised at how broad the definition is. August announcements can give you a head start in preparing claims before year-end.
Why August Matters
By paying attention to Budget previews in August, you’re giving yourself a strategic advantage. You’ll have time to adjust payroll, dividend schedules, purchases and investment plans before changes are set in stone.
At GreenStones, we believe that proactive planning beats last-minute reacting every time. Our Peterborough-based customers who prepare early often see the biggest tax savings – and the least stress.
Ready to plan ahead for the Autumn Budget?
Give us a call on 01733 371180 or email advice@greenstones.co.uk and let’s make sure you’re in the best possible position before the Chancellor takes the podium.