Essex-based Clemence Hoar Cummings (CHC) has urged businesses not to be swayed by speculation in the run-up to the Autumn Budget, stressing the importance of staying focused on profit and cash flow.
The accountancy firm warns that rumours in the press and on social media can be misleading.
David Bransbury, Tax and Accounting Support Director at CHC, said: “The newspapers are full of speculation. Sometimes they’re right, but most of the time they’re not.
“Already we’re seeing talk of a VAT cut on energy bills or Capital Gains Tax on the sale of certain homes, but it is important not to make decisions based on what might happen.”
He added: “The Chancellor doesn’t have a surplus of cash, so don’t expect big tax giveaways. At the same time, raising taxes too much would restrict growth, which is also not the Government’s aim.
“The sensible approach for businesses and individuals is to carry on cautiously, focus on making as much profit as possible, and maintain strong cash flow.”
David advised that acting on unverified reports and without professional advice can backfire.
“One of the biggest mistakes we see is people making extreme decisions because they think a tax change is imminent.
“For example, selling a family home based on rumours of tax increases could be unnecessary and costly. It is much safer to wait for the official announcement and seek guidance before making major decisions.”
He also warned against taking speculation at face value, pointing out that political agendas and eye-catching headlines often distort the reality of what is likely to be announced.
“Some of the rumours spread are often exaggerated. Businesses need to focus on their own performance and avoid rashly reacting to every rumour.”
In the lead-up to the Budget, CHC recommends that businesses continue operating as normal while keeping flexibility in mind.
“If you need to invest, do so carefully. Sometimes acting before the Budget could be beneficial, but other times it may be better to wait. The key is to make decisions based on facts, not based on speculation,” said David.
CHC works with businesses and individuals across Essex, providing tax and financial planning advice.
For more information or to speak to an adviser, visit www.chc.uk.com or call 01708 333300.