As the UK unpicks the details of the Autumn Budget and one message is clear, SMEs are in need of real and actionable support. The chancellor announced that taxes will reach an “all-time high of 38 per cent of GDP in 2030-31" (Source: Office for Budget Responsibility) proving that local enterprises will be facing trying times.
Key budget changes affecting SMEs:
The Budget raises the tax rates on dividends, property income and savings income, meaning many business owners will keep less after-tax profit even if their business earns the same.
Personal tax thresholds and employer National Insurance thresholds will be frozen for three years from 2028-29 (Source: BBC) making it more expensive for SMEs to employ people. That pushes more people into higher tax/NI bands over time, which could raise employment costs for SMEs.
There will be a new transitional relief package to cap rises after the 2026 revaluation benefitting some SMEs however, those in high-value areas may still face rising bills after the support has ended.
A new HMRC compliance package has been introduced to try and raise over £2bn a year focusing on things like construction-industry fraud and non-compliant tax advisers. This means that accurate record keeping is essential to SMEs.
Overall, we’ve seen today that tax isn’t getting easier any time soon. SMEs need to tighten forecasts and ensure that their funding is allowing them to stay one step ahead.
How Love Finance can help
At Love Finance, we’re here to relieve some of the pressure on SMEs. We use smart data to get a better understanding of business’s real financial health to deliver fast and accurate loans. Our approach helps SMEs to access the funding they need and rebuild their confidence to thrive in uncertain times.
🔗 If you’re thinking about a small business loan, you can get a quote in minutes with Love Finance. Check your business loan options today!
