The current trend in the UK for filing corporation tax returns
Corporation tax is a tax levied on the taxable profits of limited companies and other bodies. The current rate of corporation tax is 19%, which was introduced in April 2017. For the tax year 2020/21, the government has announced that the corporation tax rate will remain at 19%. It all changed when Jeremy Hunt had the final say, from April 2023, the corporation tax rate is going to finally increase to 25%. This is in line with the current trend in corporation tax rates across Europe, rising interest rates, inflation being expected to continue its rise in the first half of the next year and of course rising cost of living.
“This will still be the lowest rate in the G7 ensuring the UK remains strongly competitive internationally” –Jeremy Hunt, Chancellor of Exchequer (Autumn Statement, November 2022).
In recent years, corporation tax rates have been on the rise across the continent, in an effort to Increase government revenue. The UK's decision to increase corporation tax rates is in line with this trend and is likely to result in increased revenue for the government.
Why online and low-cost providers will be the new trend in 2023
Simple… Rising cost of living. Googling “pocket-friendly/ low cost/ cheap accountancy services” won’t be a cheap move but a necessary one. Sustainability, reusability, and budget friendly service providers are expected to be in trend in 2023. It has become already a norm in hospitality and travel industry by a whopping 285% increase in search term online account filing and digital financial services are next in early year.
As we move into the next decade, it's clear that low-cost online providers will be the new trend. With the increasing popularity of Online Account Filing, it's no surprise that people are looking for ways to save money. Online providers offer a variety of services that can save users both time and money. In addition, online providers tend to be more efficient and user-friendly than their traditional counterparts, and this is only the beginning of a new trend in online tax filing services industry.
How to find the best Accountant for your needs
When it comes to finding the best accountant for your needs, there are a few things you need to consider.
- First, you need to consider the size of your business and your budget. If you have a limited budget, then you might want to look for online accountants who can provide you with the basic services you need. However, if you have a larger business, then you might need to invest in a more expensive accountant who can offer you a wider range of services.
- Secondly, you need to think about where your business is based and what activities does it normally do. If you're based in London and you are dealing with the goods or services from outside of the UK, then you might want to look for small business accountants who have experience in dealing with cross border transactions. Get in touch with us and we will help you with the entire process.
- Thirdly, you need to think about the type of services you need from your accountant. Do you need someone who can help you with your tax return? Do you need someone who can help you with your bookkeeping? Once you've considered all these factors, then you should be able to narrow down your search and find the best accountant for your needs.
What are the benefits of hiring a low-cost, online accountancy practice
Standard benefits:
- Save money on accountant fees.
- Save money on accountant fees.
- Get access to a wide range of services.
- Enjoy easy, user-friendly software.
Emotional benefits:
- Feel good about being frugal and smart with your money.
- Enjoy the convenience of online services.
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Why is 2023 going to be a tough year for small business owners who seek for traditional accountancy practices
There are a few reasons why 2023 is going to be a tough year for small business owners who seek for traditional accountancy practices.
- Firstly, the trend in Europe is towards increased corporation tax rates, and the UK is no exception. This means that small business owners will need to pay more in taxes, which could impact their profitability.
- Secondly, online and low-cost providers are becoming increasingly popular, and this is likely to continue in the years to come. This means that small business owners may find it harder to find affordable accountant services on high street like it used to be.
- Finally, the traditional accountancy model is becoming less popular, as businesses are moving towards more efficient online solutions. This means that small business owners who stick with traditional accountants may find themselves at a disadvantage. A variety of benefits comes with the changing habits, ranging from environmental friendly to safer personal data.
How can Debitam help you?
So, what does the future hold for accountants and small businesses? Well, it's looking like low-cost, online accountancy practices will be the norm in 2023. With the rising cost of living and inflation expected to continue its rise in the first half of next year, many small businesses will be feeling the squeeze. So, if you're a small business owner looking to save money on your accountant, switch to an online alternative today. You'll get cheaper, quicker service and peace of mind knowing that your finances are being well managed.
