At the start of the year we talked about planning, and today I thought we’d look at some of the things that are being reported at the moment – both off the back of the budget and from general trends in the economy. Hopefully you’ll be aware of some of these, and they’ll feature in your planning process. The first thing to look at is the freeze in thresholds that has led to more people being pushed into the next tax bracket. There has been a lot of reporting around changing habits directly linked to this. People are now considering whether it’s worth taking a pay rise if it means moving into the next tax bracket. This has resulted in people looking to work shorter hours or turning down a promotion, just to stay in the bracket they’re currently in. It’s particularly punitive for those going over £100,000, where an effective 60% tax rate kicks in due to the loss of personal allowance. Do you have anyone in your team who might look to change their working pattern if a pay rise pushes them into the next bracket? Recent surveys amongst small businesses have reported the following: 64% of small businesses surveyed have cited tax as a primary concern. There have been so many changes affecting businesses and individuals in this area that it’s hardly surprising. If you want to chat about any tax subject, please get in touch – we’d be happy to help. Keeping an Eye on the Numbers and What’s Ahead by Lyanne Higginbottom 26% of businesses surveyed reduced their workforce last quarter. The unemployment rate in Q4 was 5.1% and is expected to increase further. If you need to add to your team, now could be a good time to access candidates with the experience you need. At the other end of the scale, we’re hearing how people are training others in different areas so they’re more flexible and able to cover changes in the business. It’s reported that an average of 10 pubs a week are closing. If you’re looking for premises, these often make a good base and can be very versatile with the layout. The FSB has reported that business confidence has dropped significantly – it’s now at its lowest since 2020. Internally, we’re hearing the same from our clients. It feels like costs have increased significantly, customers are ordering in different quantities or taking longer to pay, and things keep changing as businesses adapt to the challenges they’re facing.