This year there is more reason to look at strategies than previously with higher profits in 2025/26 than are likely in 2026/27 given milk prices and beef and lamb prices.
We also have a higher tax rate on dividends after 6th April, 2026.
Strategic points to consider include:-
- Pension provisions, although this has become less attractive than previously with the proposed Inheritance Tax changes.
- Capital Expenditure. Watch timing to maximise capital allowances and remember to take delivery prior to your year end if buying on HP.
- Dividends now if trading as a company.
- Timing of income/expenses including contracting for planned repairs and maintenance expenditure now before the new year. Avoiding spending more than planned is prudent given the economic climate and volatile prices. Carefully constructed contracts or agreements could help bring relief forward.
- Family wages.
Everyone’s circumstances are different and a chat or meeting could prove useful.
