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TAX


PLAN FOR TAX CHANGES AHEAD


WITH CONFIDENCE Ann Bibby, Partner at Menzies


The tax landscape is growing more complex – and businesses across Lancashire, regardless of size or sector, need to stay alert to what’s ahead.


A range of legislative and regulatory changes are on the horizon, many of which will reshape how and when tax is reported and paid.


From audit and accountancy to tax advisory and compliance, we provide expert support tailored to you and your business - whether you’re scaling up, navigating change, or planning ahead.


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FOR LANCASHIRE’S BIGGEST BUSINESS CELEBRATION?


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AUDIT, ACCOUNTANCY AND


advice@menzies.co.uk www.menzies.co.uk


These changes won’t just affect finance teams – they will influence broader decisions about investment, structure, and long- term strategy.


From 2026, Making Tax Digital for Income Tax will require many sole traders and landlords to keep digital records and submit quarterly updates. This marks a significant shift in the way smaller businesses engage with HMRC and increases the need for accurate, real-time data.


612002 Pierce Advert_Strategic Advisory Design 3_Layout 1 17/12/2025 09 Strategic Advice For


Private Clients And Family Businesses


We provide bespoke tax consultancy services for individuals and businesses seeking proactive, confidential, and strategically focused tax advice. Pierce specialises in navigating the complex UK tax legislation ensuring that your personal and family interests are protected.


Our Tax Services Include:


• UK Residency and Overseas Advisory


• Investment and Asset Structuring


• Inheritance Tax & Estate Planning


• Trusts and Family Wealth Advisory


• HMRC Enquiries and High-Value


Disclosure Support


• International Tax Coordination


Why Clients Appoint Us


✔Deep expertise in complex tax matters


✔Client focused premium advisory service


✔Tailored strategies aligned with long-term objectives


✔Clear, structured fee arrangements


✔Trusted by entrepreneurs, investors & businesses


✔We care !


At the same time, ongoing reforms to tax reliefs and allowances, a tougher HMRC compliance


regime, and potential changes to profit timing rules will all have implications for business planning. To stay ahead, businesses should focus on three practical areas:


Systems and data – Review whether your accounting software, tax systems and record-keeping processes are ready for more frequent and digital-first reporting. Reliable, well-organised data will be key to meeting new obligations efficiently and avoiding penalties.


Structure and extraction – Take the opportunity to revisit how your business is structured and how profits are drawn. As legislation evolves, some existing arrangements may become less tax-efficient or carry greater risk.


Investment and reliefs – Re-examine your eligibility for reliefs such as R&D tax credits, capital allowances and other incentives. Regular reviews help ensure opportunities aren’t missed.


THE BUDGET 2025:


WHAT BUSINESS OWNERS NEED TO KNOW


By Dominic Ball, Tax director at Pierce


The 2025 Budget delivered by Rachel Reeves signals a period of sustained fiscal tightening. For many, now is the time to reassess remuneration structures to ensure they remain efficient in the face of rising tax rates and prolonged threshold freezes.


The chancellor confirmed that income tax and national insurance thresholds will stay frozen until 2031, extending fiscal drag.


The changes to dividend taxation are particularly significant for business owners.


From 6 April 2026, the basic and higher dividend tax rates will rise by two percentage points to 10.75 per cent and 35.75 per cent respectively, while the additional rate remains unchanged.


Blackburn: 01254 688100 Bolton: 01204 388675 www.pierce.co.uk Email: enquiries@pierce.co.uk


Owners relying on the typical blend of a modest salary and dividend extraction may still find the structure effective, but the tax benefit may reduce.


Further ahead, increases to rates on savings and property income from 6 April 2027 will narrow the gap between dividend, rental and interest income taxation, making holistic remuneration planning even more important.


Employers should also note the shift in the value of salary sacrifice pensions. From 6 April 2029, only the first £2,000 of contributions made via salary sacrifice will be exempt from national insurance, although full income tax relief will continue. This may make alternative employer contributions options more attractive.


With multiple changes taking effect over the next few years, early planning is essential. Business owners should revisit their remuneration mix, model future tax liabilities, and consider whether strategies such as bringing forward dividends or restructuring benefits remain appropriate.


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