Hey guys I know this is quite late but I'm confused - I'm trying to figure out if the Autumn budget truly led to high tax rises? income tax didn't increase. there is fiscal drag but this affects individuals and high earners. from my understanding businesses are not affected significantly from the budget, with the only changes being to min wage, capital allowance relief and more compliance requirements. Would the dividends tax increase be problematic? I'm not sure what to make of this from a business POV. Would love some help!
It's double edge sword, recently the UK wants to mirror US whistleblower tax policy, the Parliament still consider it with a prospect to be enacted in 2026. The HMRC stated even though only high earners got the direct impact, it influences business. Many high earners work at big business even for SMBs, the owner or the head also can be HNWI. So, that can be challenging, we've seen that many people moved their residency to GCC such as Revolut CEO, even some move their corporate HQ elsewhere too.
The UK remains a hotspot for market segmentation for business and sourcing high talent, better than US due to their current lucrative immigration and income tax policy. I think that without whistleblower, it's perceived as negative as the HNWI tax isn't effective and unfriendly to business.