If businesses feel as though they are paying more tax than ever, there is a reason for that.<\/p>\n
<\/p>\n
HMRC have revealed the amount of tax collected in the 2025\/2026 \u2013 an eyewatering \u00a3938.8 billion.<\/p>\n
With this tax year likely to see the collected revenue cross \u00a31 trillion, businesses need to be more careful than ever with managing costs to afford the extra burden.<\/p>\n
The large amount of tax collected has managed to exceed even the predictions of the treasury.<\/p>\n
This is especially true of employer National Insurance Contributions (NICs), which were only predicted to add \u00a324 billion to business tax bills but instead added \u00a328 billion.<\/p>\n
In revealing the amount that has been extracted from businesses, it may be vindicating for business owners who have warned that rising employee expenses were stifling their ability to run a successful company.<\/p>\n
Rising wages are the main contributing factor in Income Tax and NICs, making up over half the collected tax at \u00a3552.8 billion.<\/p>\n
VAT remains the second largest single source of tax revenue, at \u00a3180.7 billion, while Corporation Tax and other company taxes reached \u00a3101.4 billion.<\/p>\n
Capital Gains Tax (CGT), most likely incurred from disposing of assets, rose 62 per cent, going from \u00a313.68 billion to \u00a322.18 billion.<\/p>\n
It seems that, whatever business owners do, a hefty tax bill awaits them.<\/p>\n
While the tax collected in the 2025\/2026 tax year is impressive, there is a real chance that it will be much higher this year.<\/p>\n
Wages have increased once more, meaning that employer and employee NICs will be higher as a result.<\/p>\n
The National Living Wage (NLW) is now also high enough that over half a full-time worker\u2019s annual salary will be taxable income for the first time.<\/p>\n
Dividend tax rates have also increased and Business Asset Disposal Relief is less generous, meaning that the increase may be even more substantial than it was this year.<\/p>\n
All of this is combined with increased operational costs that were already causing businesses concerns before the outbreak of conflict in the Middle East added additional pressures.<\/p>\n
There is still little indication that the Government are going to heed the concerns of business owners and adjust economic plans to be more forgiving.<\/p>\n
Following two Autumn Budgets that were viewed as overlooking SMEs, it has become more important for business owners to take control of their own finances where possible.<\/p>\n
Getting advice from an expert accounting team can help you to keep rising costs under control and determine a more dynamic approach to your finances.<\/p>\n
We can help review your current approach to tax to ensure that you are operating in a tax-efficient way while still being fully compliant.<\/p>\n
The real question that hangs around discussions of steep tax collection is how the collected money will ultimately be spent.<\/p>\n
If the Government are able to invest more in infrastructure and local areas, it may benefit businesses that depend on footfall for success.<\/p>\n
However the Government spends its record tax takings, we will continue to support you in approaching your finances with confidence.<\/p>\n
Speak to our team for expert support in managing your business\u2019s finances.<\/p>\n","protected":false},"excerpt":{"rendered":"
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