Xeinadin shares Budget Advice to Local Business Owners following Event in the Northwest

Over 100 business owners from across the North West attended an Autumn Budget briefing hosted by Xeinadin in Preston, Chester and Manchester, where local tax experts shared advice on managing rising costs and making the most of changes to tax reliefs.

Following the Autumn Budget last Wednesday, the event helped local businesses understand what the Chancellor’s announcements mean for them, from higher wage bills to business rates savings and changes impacting the decisions of owners planning to sell.

Xeinadin, a leading provider of accountancy services and business advice for SMEs across the UK and Ireland, advised owners not to look at individual tax savings in isolation. While some businesses stand to benefit from the Budget, higher employment costs could leave them with less money to invest or grow.

Victoria Dadswell, Tax Partner at Xeinadin says,

“After last year’s Budget speculation, the mood music feels clearer this time around. Small businesses in Manchester, Liverpool and across the North West will judge the Budget by their bank balances and whether they feel their voices have been heard. Raising the small business rates relief threshold from £12,000 to £18,000 would give independent shops and cafés genuine breathing space.

“The promised £800m in annual administrative and tariff savings will help to untangle the red tape that has long burdened British businesses. Though, much of the projected annual saving comes from changes to corporate reporting and import tariffs. That matters, but it will not reduce the monthly costs facing an independent retailer or manufacturer.

“The sharper test is the proposed £1bn online marketplace VAT shake-up. Making platforms collect VAT at source should tackle evasion and protect compliant sellers. Yet HMRC’s own consultation acknowledges it could also remove the cash-flow cushion that VAT-registered traders currently have before paying HMRC. This could have a particularly detrimental impact for those traders in the North West given Greater Manchester leads Europe for eBay digital small-business activity.

“Speaking to small business owners, the policies feel welcome and pro-SME, but they’re not willing to cast judgement until material benefits have been felt. The priority now is ensuring that these measures support the North West’s high streets and online entrepreneurs alike.”

Xeinadin advised owners to factor the increase into their cash flow forecasts and decisions about pricing and recruitment, as a result of the increase to the National Living Wage to £13.21 an hour from April 2027. For a business employing ten full-time staff on the minimum wage, this adds £9,750 to its annual wage bill before employer National Insurance and pension contributions. 

There is also an important detail in the Budget’s changes to Making Tax Digital for Income Tax. Those required to join the scheme in April 2027 will not receive penalty points for quarterly updates, but people who were required to join in April 2026 won’t receive the same allowance. Xeinadin is advising those affected to check which rules apply to them, rather than assume everyone has been given more breathing room.

From April 2027, the lifetime limit for Business Asset Disposal Relief – which allows eligible owners to pay a lower rate of Capital Gains Tax – is halving from £1 million to £500,000. For those considering retirement or selling their business, the proposed change would result in a higher tax bill when they sell. 

The Government is also consulting on a new Founders’ Relief, potentially allowing qualifying entrepreneurs to pay 10% Capital Gains Tax on up to £10 million of gains. However, the proposed conditions are strict, and many established business owners may not qualify.

Xeinadin, whose Stockport office is on Yew Street, is encouraging businesses to use the months ahead to review their costs, check which reliefs apply to them and seek advice before making major investment or succession decisions.