Press Releases

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.

Romford-based accountancy firm, Clemence Hoar Cummings, has warned that sweeping fiscal changes announced by Chancellor Rachel Reeves will hit SMEs and business owners hard as the Government seeks to plug a ‘£22 billion black hole’ in the public purse.

In one of the most hotly anticipated Autumn Budgets in recent years, the Chancellor announced the Government’s plan to achieve its core aims of stability, investment and change.

However, says Clemence Hoar Cummings, support for working people and public services has come at the cost of SMEs, which look set to experience a significant financial squeeze.

David Bransbury, Director at Clemence Hoar Cummings, remarked: “There has been a lot of speculation around this Budget, with many SMEs predicting a tough time as the Government pledged to avoid raising Income Tax and VAT for working people.

“While the Budget placed growth and balance at its core, SMEs – making up 99.9 per cent of UK businesses – are going to struggle.”

The Chancellor announced a rise in National Insurance Contributions (NICs) – from April 2025 the rate increases from 13.8 per cent to 15 per cent.

A reduction in the secondary threshold from £9,100 to £5,000 was also revealed – substantially increasing the NICs of employers at every level.

In isolation, these measures will represent a marked increase in the cost of being an employer, but businesses are also facing a rise in the National Living Wage (NLW), currently set at £11.44, to £12.21 per hour from April 2025 – an increase of up to £1,400 per year for a full-time worker.

Following this was the announcement of a single adult rate of NLW, amounting to a phased extension of the NLW to all workers over the age of 18.

“We cannot overstate the impact this will have on small businesses,” said David. “With only six months to mitigate these rising costs, many businesses will have no choice but to reduce their staffing levels or make cuts to investment in other areas.

“Sectors which rely on flexible staff, often on hourly pay, will be hit the hardest – and many of these have already been impacted disproportionately by the rising cost of living and the pandemic, including hospitality, retail and leisure businesses.

“The Chancellor announced some support for these industries – including a 40 per cent relief on business rates in 2025/26. She also plans to raise the employment allowance from £5,000 to £10,500, meaning an estimated 865,000 businesses won’t pay NICs.

“However, these are a small minority compared to those SMEs left to bear the costs on their own, which could have a staggering impact on employment in key industries.”

Those looking to sell a business have also been a target for tax revenue, says Clemence Hoar Cummings, with the immediate introduction of a rise in Capital Gains Tax (CGT) rates.

From 30 October 2024, the lower rate of CGT will rise to 18 per cent, while the higher rate will rise to 24 per cent.

Compounding the increase, Business Asset Disposal Relief (BADR) will also rise – remaining at 10 per cent in 2024/25, before rising to 14 per cent in 2025/26 and 18 per cent in 2026/27.

Business owners, says Clemence Hoar Cummings, are now facing a ticking clock. Those already looking to sell their business may need to accelerate the process to maximise the benefit of BADR, and those tempted to sell by rising costs have little time to plan.

“As a final sting the tail for business owners,” said David, “unspent pensions are being pulled into the scope of Inheritance Tax (IHT) from April 2027, creating a double-edged sword where individuals are potentially struggling to pass on large portions of their wealth.”

David concluded: “The Chancellor’s mantra of “invest, invest, invest” has certainly materialised in this Budget, with funding for green energy, public services, regional improvement and manufacturing.

“However, it’s unlikely to be enough to offset the very real challenges faced by SMEs that often lack the cash reserves to meet inflating costs.

“Rachel Reeves’ message was very clear: “We are asking businesses to contribute more” – but many will have come out of the Chancellor’s first Budget feeling unsupported, with “difficult choices” to make of their own.”

To find out more about Clemence Hoar Cummings’s full range of accounting, tax, and business advisory services, please visit www.chc.uk.com.

Following its recent acquisition by the Explorator Group Ltd, Deighan Perkins LLP joins forces with Romford-based accountancy firm Clemence Hoar Cummings.

Previously based in South Woodford, London, the Deighan Perkins business has now become part of Clemence Hoar Cummings, bringing with it all of its experts and clients.

With closely aligned values, these two long-standing firms will focus on delivering an enhanced service to their growing client base with the support and backing of the Explorator Group Ltd – a fast-growing collection of accountancy firms in the South East.

Kevin Perkins FCA CTA, who owned Deighan Perkins LLP, will become a valued member of the leadership team at Clemence Hoar Cummings, complementing their existing expertise with a strong background in taxation as both an ICAEW member and a Chartered Tax Advisor.

Joining him is a team of talented professionals, including trainees who are looking forward to gaining further experience within the newly merged practice.

Kevin, speaking about the coming together of the two firms, said: “This is a really exciting next step in our history, and we are delighted to be joining the team at Clemence Hoar Cummings.

“They share many of the same values that we do and have exceptionally high professional standards, which align with our approach to supporting clients.”

This latest merger will see Deighan Perkins move into Clemence Hoar Cummings office in Como Street as they become a single, closely aligned team.

David Belbin, Managing Partner at Clemence Hoar Cummings, said: “Kevin and the rest of the team from Deighan Perkins are an excellent addition to our practice, they will see their own roles developed and they will support our growth plans in the years to come.

“We are delighted to welcome them to our practice and look forward to what the future holds for all of us.”

This is the latest deal struck by the Explorator Group Ltd, a company specialising in the enhancement of independent practices, providing both capital and expertise to practices to help them grow.

This is the second acquisition this year, as it looks to create firms across the region that are dedicated to serving the needs of clients using the latest technology and guidance.

Richard Bartlett, a Founding Partner of Explorator Group Ltd, said: “It is great to see our network of firms across the South East continue to grow and I am delighted that the clients of both Clemence Hoar Cummings and Deighan Perkins will benefit from this new merger.

“We are always looking for new opportunities in the region and hope to add more firms to the Explorator Group in the near future.”

For more information about Explorator Group Limited, please visit www.exploratorgroup.com

Respected accountancy firm Clemence Hoar Cummings has begun a new chapter in its prestigious history following an investment from Explorator Group Ltd.

Serving the needs of clients for the last century, Clemence Hoar Cummings has played an important role in the lives of businesses and their owners in and around London.

This new deal struck with the Explorator Group Ltd, a company specialising in the enhancement of independent practices, will bring both capital and expertise to the practice as it looks to the future.

Using the funding acquired through Explorator, the firm will now expand its service lines and integrate cutting-edge technology to reach new audiences of entrepreneurs and private clients.

Clemence Hoar Cummings has recommitted itself to maintaining the unique culture of the firm, while simultaneously enhancing the range and depth of services offered to clients.

To facilitate this new phase of growth and innovation, a new entity, Clemence Hoar Cummings Ltd (CHCL), has been formed.

The leadership team of CHCL will include John Capper FCA, CEO of Explorator Group, serving as the Executive Chair, alongside David Belbin, David Bransbury, Lee Blunden and Kinga McLaughlin.

This blend of existing leaders with new oversight promises a seamless transition with an eye towards future growth and development.

“Our decision to partner with Explorator Group Ltd comes after careful consideration and reflects our commitment to both our valued clients and our talented team,” said David Belbin, who continues in his role as Managing Director of the practice.

“This partnership ensures that we not only continue to offer top-tier tax planning and growth advisory services but also enhance our capabilities to meet the ever-evolving needs of our clients.”

Clients of the firm have been assured that the transition will be smooth, with minimal changes in how services are delivered.

All managers and support teams will remain in place, and all contact details will stay the same.

“We are thrilled to embark on this new journey with Clemence Hoar Cummings and are eager to share the enhanced benefits of working within our group,” added Richard Bartlett, the Founding Partner of Explorator Group Ltd.

“As Clemence Hoar Cummings steps into its next 100 years, our focus is to support the team as they continue to deliver exceptional service to their clients and foster growth.”

Following Chancellor Jeremy Hunt’s Spring Budget, Romford-based accountancy firm, Clemence Hoar Cummings cautions that Mr Hunt has targeted individuals with tax cuts at the expense of small businesses.

Outlining his ‘Budget for long-term growth’, the Chancellor placed a heavy emphasis on relieving the financial burden on families and working individuals following a period of high living costs and inflation.

The headline tax cut of two per cent on employee National Insurance Contributions, set to fall to eight per cent for employees and six per cent for the self-employed from 6 April 2024, formed the basis of this approach.

“A further cut in National Insurance is clearly going to be welcomed by working people,” said David Bransbury, Director at Clemence Hoar Cummings. “But, as we saw with the Autumn Statement, employers continue to be left behind. While this lower rate of National Insurance is great for individuals, we have to question why this is not being extended to employers.”

Even the most significant measure for SMEs, the announced rise in the threshold at which businesses and sole traders must register to pay VAT from £85,000 to £90,000, was a double-edged sword.

“Despite the benefits,” said David, “we should note that this is the first rise in seven years, which means that some businesses may not feel the benefit.”

Beyond changes to the VAT threshold, Clemence Hoar Cummings warned that other measures unveiled in the Budget, revealed a ‘voter-first’ approach to this Budget.

In a bid to assuage concerns over the fairness of the High Income Child Benefit Charge, a threshold increase to £60,000 was announced, alongside a promise to overhaul the system to a household basis by 2026.

The Chancellor’s leading measures revealed a “person-centred approach to the Budget which reflects the fact that businesses cannot vote”, says Clemence Hoar Cummings.

“However, it’s important to note that businesses were not neglected entirely and have been the primary beneficiaries of a number of recent Budgets and Statements.”

In particular, said Clemence Hoar Cummings, the Chancellor announced reliefs for film and television production, arts and performance – with new tax credits for independent UK films and the permanent introduction of tax reliefs for touring and non-touring performing arts.

This came in addition to support for the hospitality sector – including another freeze on alcohol duty until February 2025.

The Budget also carried potential future benefits for businesses with high plant and machinery costs, with Full Expensing capital allowances to be extended to leased assets “when fiscal conditions allow”.

“This is excellent news for SMEs with high capital costs,” said David. “It does demonstrate a commitment to helping businesses make necessary investments without having to shoulder all the costs.

“We can also say the same for the increased VAT threshold, which has the potential to reduce a major source of fiscal drag for small businesses.”

“Despite this, while there were plenty of measures in the Budget designed for growth and getting the UK to the forefront of certain industries, we can see that there wasn’t enough support for small businesses as a whole.

“Outside of specific industries, those measures just weren’t there in sufficient quantity.

“Although, that doesn’t mean that this was a poor Budget for SMEs or that it purely focused on individuals, because this isn’t the case.

“In fact, some businesses will benefit from measures which also target individuals, such as the freeze in fuel duty for another 12 months.

“What it does mean is that the Treasury’s priorities are currently elsewhere, so businesses will need to proceed with caution as new economic measures target support at individuals prior to a general election.”

To find out more about Clemence Hoar Cummings’s full range of accounting, tax and business advisory services, please visit www.chc.uk.com.

The Romford-based accountancy firm Clemence Hoar Cummings warns that measures announced by Chancellor Jeremy Hunt in the Autumn Statement could hit small business cash flows before they feel the benefit of new measures.

In the wake of falling inflation – reaching 4.6 per cent in November 2023 from 10.1 per cent in January – and anxiety around high interest rates, the Chancellor outlined his “Autumn Statement for growth”.

Reviewing the Government’s new fiscal policies, Clemence Hoar Cummings says that, while businesses will benefit in the long term, it may cost some significantly.

The rise in the National Living Wage (NLW) will bring increasing labour costs for businesses, with a 9.8 per cent rise, to £11.44 per hour. This has been compounded by the extension of the NLW to 21 and 22-year-olds for the first time.

Rising wages will also carry a higher Employer National Insurance liability, despite a reduction of Employee National Insurance to 10 per cent to the benefit of workers.

Small and medium-sized enterprises (SMEs) are likely to be hit hardest as they often lack the profit margins and financial buffers of larger firms.

David Bransbury, Director at Clemence Hoar Cummings, said: “Despite a major emphasis on leveraging the current economic climate and creating opportunities for small businesses, policies within the Autumn Statement will place a heavy burden on SMEs in the coming months.

“Working people will be rightly supported through higher costs of living with rising wages and reduced NI contributions, but businesses seem poised to pay the price, particularly with no NI reductions to employer contributions.

“This is particularly true for sectors that rely heavily on labour or those that already operate with low profit margins.”

However, despite a bleak short-term outlook for SMEs, the Chancellor’s 110 measures for the coming year may yet bolster surviving small businesses through a long-term commitment to growth, says Clemence Hoar Cummings.

In an unexpected development, the Chancellor announced an indefinite extension of ‘Full Expensing’ allowing capital-reliant businesses to claim a deduction from taxable profits of up to 100 per cent of their expenditure on qualifying plant and machinery capital.

“This extension will be hugely beneficial to manufacturing and related sectors, as SMEs that rely on investment in capital can suffer cash flow problems,” said David.

In addition to support for internal investment, high-growth sectors including technology, sustainable energy and manufacturing, will benefit from significant investment from the Treasury, with £975 million being made available for the automotive sector, £520 million for life sciences and £960 million for clean energy manufacturing.

The UK’s smallest self-employed businesses are also benefitting from the Chancellor’s announcements, with the unexpected abolition of Class Two National Insurance – and a slashed rate of Class Four NI contributions at eight per cent.

David concluded: “Many business owners will have mixed feelings after the Autumn Statement. While the Chancellor placed heavy emphasis on securing investment and growth, SMEs may not feel the benefit for a while yet.

“Employers will need to consider their cash flow carefully to avoid being hit by rising wages and NI contributions in order to reap future benefits of targeted support for key sectors.

“Furthermore, some sectors – such as professional services – will not benefit as significantly from upcoming investment projects or full expensing, so they will have to think carefully about optimising future financial plans.

“Changes within the Autumn Statement will have potentially massive impacts on SMEs and business owners. Professional advice is key to weathering the upcoming squeeze and maximising the benefits of new measures.”

To find out more about Clemence Hoar Cummings’s full range of accounting, tax and business advisory services, please visit www.chc.uk.com.

Romford-based accountants Clemence Hoar Cummings says the Chancellor’s drive for growth in the Spring Budget has created interesting tax planning opportunities for businesses and their owners.

Jeremy Hunt stepped up to the Despatch Box to provide measures that he said would deliver growth to the UK through targeted investment and support for businesses and their workers.

Prior to his announcement, many businesses were concerned about the upcoming increase to Corporation Tax in April, which will see the rate of tax rise from 19 per cent to 25 per cent for businesses with profits of £250,000 or more.

Only those with profits of £50,000 or less would continue to pay this tax at 19 per cent, with those between these two thresholds paying tax at a tapered rate.

Clemence Hoar Cummings said that the Chancellor’s introduction of ‘full expensing’ would help many companies grappling with this tax increase.

David Bransbury, Director at Clemence Hoar Cummings, said: “For the next three years businesses will be able to write off the full cost of qualifying plant and machinery expenditure in the same year they make the investment.

“This new relief sits alongside a number of existing Capital Allowances to help firms better manage their annual tax bill through investment. This new measure goes some way to replacing the lost relief available from the Super Deduction, which ends on 31 March.”

R&D tax credits also provide an important Corporation Tax relief to many SMEs. In the Autumn Statement, Jeremy Hunt announced changes that would restrict the rate of tax relief and credits for some small and medium-sized enterprises (SMEs).

However, to support “British Ingenuity”, the Government has decided to introduce a new enhanced tax relief for loss-making R&D-intensive SMEs.

Eligible companies will be able to receive a tax credit worth £27 from HM Revenue & Customs (HMRC) for every £100 of R&D investment they make.

“This additional relief will be somewhat limited, but it will play a role in driving growth among the most pioneering businesses,” added David.

To help people save for the future, the Chancellor also announced that from April 2023 the Annual Pension Allowance would increase from £40,000 to £60,000, allowing people to make more tax-free contributions to their pension savings.

Alongside this, the charge on the Pension Lifetime Allowance will be removed this year, before the allowance itself is abolished entirely from April 2024.

David said: “Allowing people to save more into their pensions tax-free will help many business owners and workers reduce the overall amount of tax that they pay, potentially allowing them to keep more of their income outside of higher tax bands, while also helping them to be better prepared for retirement.

“The measures in the Spring Budget should really act as a prompt for businesses and individuals to reassess their current investment plans, business strategies and tax affairs as we prepare to enter a new financial year.”

Starting in April 2024, the Government will gradually implement a program aimed at boosting economic activity and household earnings by offering eligible working parents 30 hours of free childcare per week for children aged nine months until school age.

“A common obstacle to growth for many businesses is the recruitment and retention of workers with the right skills,” said David. “This measure, along with the introduction of ‘returnerships’ to help older people back into work, will play an important role in ensuring employers have the talent they need to be successful.”

To find out more about Clemence Hoar Cummings’s tax, accounting and business advisory services, please visit www.chc.uk.com

Romford-based accountancy firm Clemence Hoar Cummings says the decision to freeze and reduce personal tax reliefs, thresholds and allowances in the Autumn Statement will have a significant impact on many taxpayers.

Faced with the challenge of inflation, rising energy costs and higher interest rates, as well as an economy weakened in recent months by world events and the actions of his predecessor, the Chancellor outlined his “plan for stability”.

Having reviewed the Government’s new fiscal policies, Clemence Hoar Cummings says that while it has the potential to steady national finances, it will come at a cost.

The Chancellor was keen to point out that his latest measures avoided increases to tax rates, but the reality of his speech means that tax bills for many business owners and workers will increase over the next few years.

A big element of this increase was his decision to extend the freeze on personal allowances, such as the Nil-Rate Band for Inheritance Tax and the Personal Allowance for Income Tax, until 2028.

David Bransbury, Director at Clemence Hoar Cummings, said: “These allowances were already frozen until 2026, but the decision to further delay increases means that inflation is likely to drag more taxpayers into higher tax bands as their wages rise.

“To many observers, the Autumn Statement may have seemed quite fair and balanced, but there are certain groups – particularly high earners – who will need to think carefully about how these measures affect them.”

Alongside the freeze to allowances, the Chancellor also announced reductions to thresholds and exemptions for Dividend Tax and Capital Gains Tax in the next two tax years, and a cut to the Additional Rate Income Tax threshold from £150,000 to £125,140 in April 2023.

“The impact of these changes and the inflationary pressure on wages means that while the rate at which most taxes are paid hasn’t gone up, many more people will still be paying more tax,” added David.

When it came to the finances of businesses, Clemence Hoar Cummings said that the £13.6 billion of support to help with the transition to a new business rates system over the next five years was welcomed and would help those hit hardest in recent years, including bars, restaurants and retailers on the High Street.

However, further changes to the SME R&D tax system would be less welcome, especially the reduction to the SME scheme additional tax deduction, which will fall from 130% to 86% for expenditure on or after 1 April 2023.

“The Government has been concerned about abuse in this tax system for some time, but it seems somewhat unfair to penalise those who have acted within the existing rules,” said David.

“However, the real impact of this change may not be as great as feared due to the rise in Corporation Tax from April, which may mean that the amount of relief businesses receive won’t change significantly – especially for those paying the top 25 per cent rate of tax.”

Clemence Hoar Cummings said that subtle but important changes in the Autumn Statement required careful consideration and professional advice.

To find out more about Clemence Hoar Cummings’s wide range of accounting, tax and business advisory services, please contact us.

Romford-based accountancy firm Clemence Hoar Cummings has said many businesses will be pleased with the Chancellor’s support during the cost-of-living crisis.

However, wider concerns persist about the potential for rocketing inflation, which could harm economic growth and heavily indebted businesses.

Standing to address Parliament, Kwasi Kwarteng said the measures in his fiscal statement were “a new approach for a new era focused on growth”.

What followed was one of the most significant fiscal events in recent years, as the Government announced measures to support individual taxpayers, high-earning business owners and the companies that they run.

The Chancellor confirmed that the Corporation Tax rise planned for April 2023 would be scrapped and that this rate of tax would remain at 19 per cent.

He also announced that the previous 1.25 percentage point increase to National Insurance introduced earlier this year would be reversed and the planned Health and Social Care levy abolished – freeing up cash for many businesses.

The existing £1 million Annual Investment Allowance will also be retained permanently, instead of falling to £200,000 from March 2023 to support additional investment in plant and machinery.

To further support investment the Government announced the creation of up to 40 tax-free investment zones, which will come with a wide range of benefits for those based within them.

David Bransbury, Director at Clemence Hoar Cummings, said: “The measures announced by the Chancellor represent one of the biggest tax cuts in 50 years, with estimates suggesting that £45 billion worth of tax reductions will be on offer to SMEs and their owners, as well as many other taxpayers.

“The scrapping of the Corporation Tax increase, a permanent boost to the Annual Investment Allowance and support with rising costs through a reverse to the National Insurance rise will, the Chancellor hopes, boost the UK’s economic growth rate by 2.5 per cent and increase spending and tax receipts.”

Many individual taxpayers will also benefit from the Chancellor’s announcement through cuts to Income Tax, Stamp Duty Land Tax (SDLT) and for contractors, a repeal of the IR35 rules.

Under a landmark change to Income Tax, the additional rate of tax, paid at 45 per cent on earnings over £150,000 will be removed and a 1p cut to the basic rate of tax on earnings between £12,571 to £50,270 will come into force from April next year.

Many business owners on higher incomes will welcome this change, along with the scrapping of the 1.25 percentage point increase to the Dividend Tax rate.

Meanwhile, those looking to purchase a new home will enjoy increased SDLT thresholds, which will rise from £125,000 to £250,000 on most property purchases, and from £300,000 to £425,000 for first-time buyers.

“Describing these measures as a ‘mini-Budget’ is somewhat misleading given the considerable tax cuts and support offered to taxpayers, SMEs and many larger businesses,” said David.

“This should help with the cost-of-living crisis and will hopefully encourage greater business investment in years to come.”

The Government promised that the Energy Bill Relief Scheme, announced days before, would help to lower inflation by as much as five percentage points in the mid-term by capping energy costs for businesses and individuals.

However, there are concerns among economists and the Bank of England that the tax cuts announced in the Chancellor’s speech will not only drive up national debt through borrowing but also encourage price increases in the wider economy further driving up inflation.

David added: “By choosing to go for growth, rather than maintain a policy of fiscal responsibility the Government is taking a real gamble.

“If interest rates continue to rise due to growing inflation, then the support outlined in the mini-Budget may not amount to as much as hoped.”

To find out more about Clemence Hoar Cummings’s wide range of accounting, tax and business advisory services, please contact us.