Budget Changes: What’s Coming for Your Business?

Hi everyone,  

As a business owner or dentist, staying on top of financial planning is key—not just for today, but for your future. The October budget is shaping up to be a big one, and it’s not just pensions that could see changes.  

Here are 3 key areas you need to be watching. 

Pensions: Time to Revisit Your Strategy? 

Earlier this year, the government relaxed pension rules by abolishing the lifetime allowance charge and bumping up the annual pension allowance to £60,000. This was a welcome relief, especially for high earners.  

However, with comments from Rachel Reeves hinting these are “too generous,” we could see a rollback. If pension tax relief is limited to basic rate or capped at 30%, the tax efficiency of your retirement savings takes a hit. For higher-rate taxpayers, this could mean contributing more to reach the same savings goals—essentially, a more expensive retirement plan. 

Inheritance Tax: Passing on Wealth Could Get Costlier 

Inheritance tax is another area that might see changes, particularly around undrawn pensions. If these pensions become subject to IHT, your heirs could face a substantial tax bill on what you’ve left behind. This adds another layer of complexity to succession planning, especially for those looking to pass their business or assets to family members. It’s no longer just about building wealth; it’s about protecting it from unnecessary taxes. 

National Insurance: The Rising Cost of Employment 

Finally, there are rumblings about a rise in National Insurance contributions for employers. If these increases come to pass, the cost of employing staff could go up—eating into your practice’s margins.  

With wage inflation already a concern, higher NI contributions would add pressure to manage costs while maintaining service levels. For small businesses, this might mean tougher decisions around hiring, salaries, and overall staffing strategy. 

With so many changes on the horizon, now is the time to act. These budget shifts could impact everything from how you run your business to how you plan for retirement and pass on your wealth. 

For a deep dive into these budget shifts and how to prepare, join me on my free webinar, The Labour Budget - The Impact on UK Dentists, on November 1, 2024, 12:30 AM. 

Secure your spot here: 

Schedule a call with us now to learn how we can keep your retirement plans on track despite the uncertainty ahead: 

Until next time, 

Arun