Press Releases

The latest Spring Statement has done little to steady the nerves of firms in Romford, with Chancellor Rachel Reeves declining to set out fresh measures to ease mounting financial strain on UK companies, according to leading accountancy practice Clemence Hoar Cummings.

In calmer circumstances, the Office for Budget Responsibility’s (OBR) Spring Forecast might have provided a measure of reassurance, as would the Chancellor’s decision to leave things unchanged.

Instead, escalating tensions in the Middle East and the threat of a wider US-Israel conflict have cast a long shadow over the figures presented to Parliament.

David Bransbury, Director at Clemence Hoar Cummings, said: “The Chancellor was clear this would not be a major fiscal event, as promised in Labour’s manifesto. That may suit the Treasury’s timetable, though it does little for businesses dealing with rising costs now and in the near future.

“There were no fresh measures to ease the immediate pressures facing employers, no tax changes to stimulate investment and no additional support for firms exposed to rising input costs. The only comfort was that there were no new compliance requirements or tax hikes to contend with.”

The OBR expects economic growth of 1.1 per cent in 2026, down from the 1.4 per cent forecast in November’s forecasts, before rising to 1.6 per cent in 2027 and 2028. Growth is then expected to fall back to 1.5 per cent each year through to the end of the decade.

However, against that backdrop, businesses are grappling with sharply rising energy prices.

“At a time when conflict in the Middle East is pushing up wholesale gas prices and unsettling global markets, many had hoped for clearer recognition of the risks to the UK economy.

“Higher energy prices feed directly into transport, manufacturing, oil and food supply chains. The impact of such a significant ongoing conflict will eventually show up in inflation and borrowing costs.

“Businesses in Romford are already contending with higher employer National Insurance Contributions, increased wage bills, new regulation requirements, tax increases and tighter margins. If energy costs rise again and interest rate cuts are delayed, cash flow will tighten further, creating more difficult decisions for UK business owners.”

The Chancellor used her Statement to highlight the Government’s ongoing trade discussions with India, the US and the EU, reforms aimed at backing entrepreneurs and the £820 million earmarked for apprenticeship reform.

While the Government has consistently pledged to bring down the cost of living, a prolonged conflict in the Gulf would make that objective significantly harder to achieve.

David added: “There is a clear determination from the Government to present a message of stability. The difficulty is that stability at home cannot insulate us from volatility overseas.

“Clients are telling us they need clarity on tax, energy and employment costs to plan with confidence and we agree.”

David continued: “In the absence of new policy support, firms need to take control of what they can. That means stress-testing cash flow against higher energy and financing costs, reviewing pricing strategies, exploring qualifying tax reliefs and revisiting capital expenditure plans to help them get a more accurate picture of what the next 12 months will look like for them.

“Professional advice and early action will make the difference if conditions deteriorate nationally or on a global scale.”

For tailored support on tax planning, compliance and business strategy, contact Clemence Hoar Cummings at www.chc.uk.com.

The increase of the Agricultural Property Relief (APR) and Business Property Relief (BPR) cap to £2.5 million has been welcomed by many, although advisers say it does not remove all Inheritance Tax concerns.

Lee Blunden, Director at Clemence Hoar Cummings (CHC), says that while the cap increase is positive, the timing is unfortunate and has created complications for families who acted early.

“Some clients were concerned about the original £1 million limit and had already started putting plans in place for something that has now been amended,” he says.

“We would have hoped the Government had reached this position in the original Budget. However, even with the higher cap, it does not provide full protection from Inheritance Tax for larger businesses and so careful planning is still very much necessary.”

The businesses that benefit most are those with substantial qualifying assets.

“Larger family farms, trading companies and capital-intensive owner-managed businesses are likely to gain the most from this change,” he explains.

“These are often businesses where value is tied up in land or trading assets rather than cash. A lot of smaller operations were already comfortably within the previous thresholds, so the impact there is more limited.”

Taken together with transferability between spouses and civil partners, the changes do offer some support for succession planning.

“For married couples and civil partners, the potential to shelter up to £5 million of qualifying assets provides more breathing space,” Lee says.

“It supports the transfer of businesses between generations without forcing asset sales purely to fund a tax bill.”

However, Lee reiterates that the relief is not unlimited.

“When nil rate bands are factored in, a farming couple may only be able to protect the first £6 million of assets,” he says. “That still leaves larger farming operations and high-value businesses exposed to Inheritance Tax bills.”

Families who planned around the original £1 million cap should not assume that work has been wasted.

“Much of that planning will still be relevant,” Lee says. “Inheritance Tax planning covers the whole estate, not just APR and BPR.

“That said, gifting strategies, shareholder or partnership agreements and Wills may need to be revisited because the figures will likely need to be reworked and potentially adjusted.”

Following the number of policy adjustments already announced, Lee advises caution.

“Given the number of changes to APR and BPR, it seems prudent to be prepared for further changes. There is still a lot of pressure on the Government in relation to these measures,” he says.

“Plans should be built with enough flexibility to cope with future adjustments rather than relying on fixed assumptions.”

Looking ahead to the new tax year, his message to farmers and business owners is not to let the increase distract them.

“Do not let headlines create a false sense of security,” he says. “The changes are positive, yes, but they do not remove the need for careful succession planning.

“There is still time to review structures, involve the next generation and put plans in place that protect both the business and the family in the long term before the cap is enforced.

“Our team are happy to provide support with your succession and Inheritance Tax planning needs, so get in touch with us should you need assistance.”

One of Romford’s leading accountancy firms Clemence Hoar Cummings is urging taxpayers to review their finances as they face tougher choices, as the Chancellor Rachel Reeves moves to close personal tax opportunities in her latest Budget.

Despite some early dramatics following the OBR report being published hours ahead of the Autumn Budget, we finally have a clear picture of what’s to come from this Government over the course of the current parliament.

Rising to address The Commons, Rachel Reeves described her plan as a Budget of fairness. She said the Government had a duty to restore stability after weak growth and rising national debt.

The early release of the OBR report confirmed what was expected, that Income Tax thresholds will stay frozen until at least 2030. However, Reeves later confirmed that the freeze will actually run to April 2031.

David Bransbury, Director at Clemence Hoar Cummings, said, “While these long freezes are expected to raise billions, it is at the detriment of all taxpayers. By freezing Income Tax, more workers and families are forced into higher tax bands as their wages and income rise in line with inflation. This means paying more of their hard-earned money to the Government, despite promises to protect working people.

“The Chancellor did not address the Inheritance Tax threshold in her speech. However, from reading the ‘red book’ published alongside her speech we can see that she has also chosen to keep that at £325,000 until 2031 as well – a year longer than expected.”

The Budget also revealed a new property charge, already dubbed a ‘mansion tax’ by many, adding further pressure for those with high-value homes.

Owners with properties worth more than £2 million pounds will pay an annual levy starting at £2,500 and those with properties over £5 million pounds will pay £7,500.

Basic and higher rates on property, savings and dividend income will also rise by two per cent leading to higher tax bills for people who rely on rental and other forms of income.

“There’s been speculation for months about the Government bringing in some kind of wealth tax. Although this new charge is not described as such, this is clearly something that will only have an effect on wealthier households and will impact how they think about property as part of their wider financial plans.

“With the levy in place and the Inheritance Tax freeze running to 2031, the overall cost of holding and passing on property will rise. Individuals should take time to consider the future impact rather than make impulsive decisions.”

The Chancellor also confirmed new rules on salary sacrificed pension contributions. From April 2029, contributions above £2,000 will attract National Insurance (NI).

“These rules will alter how many people choose to plan for their retirement,” added David.

“Pension contributions through salary sacrifice have been one of the main tools for long-term saving. Once the charge applies, clients will need to think carefully about the most efficient way to build their retirement funds.”

Another topic that has made headlines in the last few months is changes to Individual Savings Accounts (ISAs).

The Government wants to increase the flow of money into the stock market to support growth and strengthen the UK’s position as a place to build and scale businesses. To make this possible the Chancellor has announced changes to the structure of the allowance.

Reeves confirmed that the £20,000 annual tax-free allowance will remain, but from April 2027, the cash limit will be reduced to £12,000 for under-65s. The other £8,000 can be put in a Stocks and Shares ISA.

“The new ISA rules have been introduced to encourage more personal investment in UK companies,” explained David.

“Shares can offer higher rewards over time, but they also carry more risk than cash. Clients will need to decide how comfortable they are with market movements before shifting a larger share of their savings into stocks. This is a big change for people who prefer the security of cash, so early advice will be important here.”

With the number of electric vehicles on the road rising rapidly, thanks to various incentives, the Autumn Budget contained considerable changes for this group of road users.

From April 2028, a new Electric Vehicle Excise Duty will introduce a per-mile charge for electric and plug-in hybrid cars, to be paid alongside existing Vehicle Excise Duty.

Businesses appear to have gotten away fairly unscathed in this year’s Budget in contrast to the announcements in 2024. However, one of the major pressures for business owners will be the additional rise in National Minimum Wage and the National Living Wage due in April 2026.

Clemence Hoar Cummings encourages individuals to take early advice and review earnings, pensions, property assets and estate plans before the new measures come into effect.

“If you want to protect family wealth and secure your position, please seek advice tailored to your circumstances. Many of the changes start later in the decade which gives us all a little extra time to plan accordingly,” added David.

Do you want to know how the measures announced in the Autumn Budget affect you? Find out how Clemence Hoar Cummings can help by visiting www.chc.uk.com.

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.