Shropshire businesses warned of higher costs as new tax rules take effect
Shropshire accountancy firm Turas says businesses will face higher operating costs after a wide range of tax changes came into force at the start of the new financial year.
The new rules, which took effect from April 6, affect everything from dividend taxation to digital reporting requirements and inheritance tax planning.
Helen Columb, owner of Telford-based Turas, says the scale of the changes means many business owners could face unexpected financial pressure if they do not plan ahead.
“This is a significant set of tax reforms and the great majority of businesses will be caught up in at least some of them,” she said.
“Some of the changes may seem technical, but together they will increase costs for thousands of small and medium‑sized businesses across Shropshire. I’d urge all business owners to start examining what the impact on them will be now rather than when the bill arrives.”
One of the most immediate cost increases will fall on business owners who take part of their income as dividends.
From April 6, the ordinary dividend tax rate has risen from 8.75% to 10.75%, and the upper rate from 33.75% to 35.75%.
“For many directors, dividends are a core part of their remuneration,” Helen added. “These higher rates will directly reduce take‑home pay or increase company costs.”
Businesses and farms also face major changes to inheritance tax. Both Agricultural and Business Relief have now been capped at £2.5 million per person, with any value above that receiving only 50% relief.
“Family‑run firms could be hit particularly hard. Owners need to revisit succession plans urgently and should be discussing with their advisers the most efficient way to handle the change.”
Meanwhile, the government’s Making Tax Digital for Income Tax programme has begun its phased rollout.
Most sole traders and landlords earning over £50,000 will now be required to keep digital records and submit quarterly updates to HMRC using commercial software.
“This isn’t just an administrative change,” Helen said. “It’s a new ongoing cost for software, training and compliance.”
Helen warned the changes were part of a raft of new measures which would add additional cost to business owners, including extra costs for electric company vehicles and less generous tax breaks for selling a business.
“These changes are here and they will affect cashflow, compliance and long‑term planning. We’re encouraging all businesses to review their position now so they can adapt with confidence.”
Turas, which is based in Hall Court in Telford Town Centre, started trading in 2013 as Columb & Gosling Accountants. It changed its name to Turas Accountants six years ago under Helen’s leadership.
It now works with clients across the country covering VAT, company accounts, bookkeeping and payroll. It specialises in e-commerce, helping clients who have online businesses using marketplaces such as Amazon, eBay and Etsy.
