Newsletter 25th October 2022

UK Financial Outlook Is Downgraded

Moody's has downgraded the UK's financial outlook to negative while maintaining its sovereign rating at Aa3.

The agency downgraded the UK's outlook to negative from stable, citing policy uncertainty amid rising inflation and weakening GDP forecasts.

Moody's stated the government's "ability to generate trust in its commitment to budgetary discipline" will be a factor in "resolving the negative outlook."

It said that the unaltered Aa3 grade "reflects the UK's economic resilience, which is backed by its affluent, competitive, and diverse economy."

According to the paper, there are also "risks to the UK's debt ability from expected greater borrowing and risk of protracted loss in policy credibility."

Former chancellor Kwasi Kwarteng proposed roughly £45 billion in permanent, unfunded tax cuts on September 23, accompanied by a costly proposal to cap energy bills for households and companies.

The decision drove the pound and bond markets into a spiral, sparking a political crisis that saw Liz Truss fire Mr Kwarteng and then reverses virtually all the proposed tax cuts before revealing her retirement.

Is Christmas A Price War for Small Businesses?

Due to the decline in consumer spending, half of the UK's small enterprises (SMEs) worry they may have to lower their prices before Christmas.

A survey of 250 SME owners revealed that 45% had excess inventory they were eager to sell.

Furthermore, 59% of those in this circumstance acknowledged that failing to sell the extra stock would have "serious" consequences for their company.

Small retailers could also turn to bundling products together, offering complimentary items with other orders and even giving away unwanted items in addition to cutting product pricing.

However, even though this was a big issue for UK businesses, consumers are expected to welcome significant price reductions due to the ongoing cost-of-living problem.

Inventory Planner and OnePoll conducted a separate poll; discover the outcome here.

Working from home expenses for Limited Companies

If you work from home as a limited company owner, there are several tax reliefs that can help you reduce your corporation tax bill and increase your income.

Our detailed guide provides an in-depth understanding of all the allowable expenses available to limited company owners.

What You Need to Know About Company Car Taxation

Although a company car is a popular employee benefit, it can come with a hefty cost for employers. In addition to the cost of the vehicle itself and maintenance costs, there are tax implications associated with providing such a perk.

To avoid penalties, it's essential to be informed. That's why we've explained everything you need to know about company car taxation in our blog!