SME tax expert predicts government tax grab in 2022

By Azets

10 Nov 2021

westminster-london.jpeg

A leading SME tax expert is urging businesses to take advantage of new and extended schemes whilst they still can, ahead of rising inflation and a likely ‘tax grab’ by the Chancellor in 2022.

Robert Wardle, head of tax in the North West at Azets, the UK Top 10 accounting firm, is predicting harsher rules could be introduced in the Spring, along with the withdrawal of existing support measures.

In last week’s Autumn Budget, the Chancellor confirmed that the economy is forecast to return to its pre-Covid level, with a 6.4% growth planned by the end of 2021. Unemployment is also at a lower level than it was initially forecast – expected to peak at 5.2% rather than the previously predicted 12% – whilst the Office for Budget Responsibility forecast for business investment has also gone up.

Despite ostensible optimism, Robert Wardle is predicting further challenges for SMEs, with inflation at 3.1% in September and expected to rise to an average of 4% in the next year, and demand exceeding supply across most industries creating manufacturing delays and product shortages.

Many SMEs are also struggling to recover following the end of the furlough scheme and surging energy requirements putting a strain on prices and leading the global cost of oil and gas to double.

Robert Wardle said: “The Chancellor delivered a relatively upbeat Autumn Budget, but more challenges lie ahead and, for many SMEs in the North West, the support measures available today won’t be sufficient to offset higher bills over the coming 12 months. SMEs should seek professional advice to ensure they take full advantage of every available allowance, with inflation set to keep rising and the extended Recovery Loan Scheme ending on 30 June 2022.”

Rishi Sunak announced the extension of the Recovery Loan Scheme (RLS) during the Autumn Budget, enabling funding for SMEs at a reduced cost and make available loans that lenders would struggle to fund as part of their everyday 'business as usual’ policy.

The Chancellor also announced a range of business rate cuts, with the retail, hospitality, and leisure sector receiving a 50% discount on business rates, worth around £7 billion.

Robert Wardle has urged SME businesses to take advantage of these schemes, with 1.25% increases to National Insurance Contributions already confirmed from April 2022 and Corporation Tax increasing from 19% to 25% from April 2023, as well as predicted changes to Inheritance Tax (IHT) and Capital Gains Tax (CGT) following recent simplification reviews by the Office of Tax Simplification.

He highlighted additional steps businesses can take now to optimise their financial position.

Take advantage of Annual Investment Allowances (AIA), which will continue at their current rate of £1 million until 31 March 2023, supporting business to invest. Consider selling assets and shares sooner rather than later whilst Business Asset Disposal Relief (formerly Entrepreneurs' Relief) is still available to help reduce CGT.

Robert Wardle added: “Businesses must plan ahead, with Spring just five months away and no confirmation on what further measures could be introduced at the next Budget. Soaring public borrowing and the continuing rise in interest rates will force the Government to increase tax take in order to cope with crippling costs. As ever, SMEs could be hit hardest and need to optimise their financial position in readiness for a potential tax grab as early as April 2022.”

Latest news

1

University recognises adidas curator Gary Aspden

University recognises adidas curator

11 Jul 2025

2

Investment drives growth plan at CoolKit Coolkit Vans

Investment drives growth plan at CoolKit

11 Jul 2025

3

Story Homes submits plans for 140 new homes in Longton Story Homes plans

Story Homes submits plans for 140 new homes in Longton

11 Jul 2025

4

University of Lancashire climbs 14 places in student positivity survey Happy students at ULAN

University of Lancashire climbs 14 places in student positivity survey

10 Jul 2025

5

Forbes Solicitors achieves strong growth and promotes 15 Forbes Solicitors promotions

Forbes Solicitors achieves strong growth and promotes 15

10 Jul 2025

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
LBV123 July/August Launch Event
Lancashire Business View magazine launch
Networking
16 Jul 2025

LBV123 July/August Launch Event

Burnley College University Courses Building, Burnley, BB12 0AN

08:30 - 10:30

Lancashire Built Environment Conference 2025
BEC 315 X 315 Px
Networking
25 Sep 2025

Lancashire Built Environment Conference 2025

Blackpool Football Club, Blackpool, FY1 6HX

08:30 - 13:00

CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

CMI Level 5 Project Management Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Project Management Course

Preston Campus, Preston, PR1 2HE

08:00 - 17:00

Shaping Preston's future by remembering its past
1750160034867.png.png
LBV Hub Networking
16 Jul 2025 - 16 Jul 2025

Shaping Preston's future by remembering its past

Society1, Coworking Space, Preston, PR1 3LT

18:00 - 20:30

Chamber Summer BBQ
LBV Hub Social
17 Jul 2025 - 17 Jul 2025

Chamber Summer BBQ

The Borough, Dalton Square, Lancaster, LA1 1PP

17:30 - 20:00

Preston Tech Connection: Web3 is Dead. Or is It?
July Longer Banner.jpg.jpg
LBV Hub Networking
29 Jul 2025 - 29 Jul 2025

Preston Tech Connection: Web3 is Dead. Or is It?

Society1, Coworking Space, Preston, PR1 3LT

18:00 - 19:30

Preston Freelancer Meet-Up: July
Longer July Banner.jpg.jpg
LBV Hub Networking
31 Jul 2025 - 31 Jul 2025

Preston Freelancer Meet-Up: July

Society1, Coworking Space, Preston, PR1 3LT

10:00 - 11:30

Cumbria Business Expo 2025
https---cdn.evbuc.com-images-880461633-4862066883-1-original.20241022-110415.jpeg.jpg
LBV Hub Exhibitions
19 Sep 2025 - 19 Sep 2025

Cumbria Business Expo 2025

Carlisle Racecourse, Carlisle, CA2 4TS

09:00 - 15:00

North West Business Expo 2025
https---cdn.evbuc.com-images-880456273-4862066883-1-original.20241022-105445.jpeg.jpg
LBV Hub Exhibitions
24 Oct 2025 - 24 Oct 2025

North West Business Expo 2025

Bolton Stadium Hotel, Bolton, BL6 6SF

09:00 - 15:00

Lancashire Business Day 2025
241122lbvlancashiredaylhp0647web
Networking
27 Nov 2025

Lancashire Business Day 2025

Burnley FC , Burnley, BB10 4BX

12:00 - 17:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV122 Online Graphic
Subscribe now

Weekly news bulletin