2. National Insurance will be paid by the employer

The likely to be affected by a Labour Government plan of raising the Employer NICs rate from 13.8% up an extra one percent at least many businesses You might be an accountancy firm, for example, and if you are that change would mean this will affect your clients payroll. 

In addition, clients may be looking for guidance on managing the second order impacts of this increase that could result in wage pressure bleeds to employees.

3. Inheritance Tax (IHT) Changes

Reforms to Inheritance Tax could see the tax-free threshold fall beneath £325,000 or an increase in the existing 40% rate applicable. There will also be alterations to Business Property Relief (BPR), that may result in less attractive benefits for business owners. 

Your clients would resonate this down the line to their estate settlement and succession planning. In readiness for these reforms, accountancy firms ought to start making modest adjustments in their inheritance tax planning strategies.

4. Potential Exit Tax

Although the idea of an exit tax is uncertain, it would appear that if introduced any such event could be expected to subject wealthy individuals moving abroad with a charge on unrealised capital gains. 

It will not only affect those wealthy clients who are contemplating a move abroad, it would require rapid advice on the restructuring of assets for them. This could be an important new type of service accountancy firms may provide: proactive tax planning, advising clients on pre-immigration strategies.

5. Pension Tax Reforms

Pension reform is on the cards, with a likely cut in the £268,275 tax-free lump sum maximum to £100k and an element of National Insurance on pension contributions. These amendments would impact both personal pension planning as well as employer pension schemes. 

It will therefore be crucial to discuss with clients the optimisation of their pension contributions before these changes come into play.