In Focus: Tax Year End  

Advisers call for delay in NI increase ahead of spring statement

Remove business rates

Philip J Milton, chartered wealth manager at Philip J Milton Company & Co, said Sunak cannot afford to go back on the long-term care situation but he could reform his proposals.  

“He could cut the NI increase rate from that proposed but extend the levy to include property and investment income and pensions over say £15,000 in aggregate as well, especially as it is older people who will benefit the most,” Milton said.

“I think the stop would work and ensure everyone is contributing but at a lower rate - say 0.75 per cent - whatever the maths would be to neutralise the amounts already anticipated.”

Milton said Sunak could also change the proposed cap on the cost of care to include accommodation and food, to make it more “understandable and sensible”.

“He has gained oodles on high energy prices so I’d scrap VAT on domestic energy now we have VAT freedom. I’d also remove the personal green taxes as again, the penalising route to encourage people to go green is high prices which we have without needing more taxes.  

“Incentivise more insulation and use of green electricity generation in homes instead.”

Milton said Sunak should remove business rates on retail and introduce a sales’ tax to raise the same sum, levied on all transactions, internet or physical.

Last year, the Treasury introduced its first set of changes to business rates in the UK following an 18-month long consultation.

In the Autumn Budget, Sunak announced the multiplier for calculating business rates will be frozen for 2022 and 2023, saving businesses a total of £4.6bn over the next five years.

However, he also introduced a number of taxes that will impact businesses

Kean said Sunak should re-think some of the reduced allowances for business success. 

“Entrepreneurs relief limited to £1mn, dividend allowance is now only £2,000 a year. It is a pitiful reward for business owners who shoulder all the risk. They deserve more.

“These are the things people talk to me about; and the issues I experience.”

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