As we come into Autumn, we can reflect on a Summer which saw a warm, dry May and June give way to one of the wettest Julys on record.
Our farming team were out in force at the Cumberland Show in June, which gave us a welcome opportunity to catch up with some familiar (and in some cases sunburnt!) faces. Ice cold beers and ice creams were the order of the day, all in stark contrast with Penrith Show in July where tea and scones took centre stage as we and our visitors took shelter from the torrential rain. The July rain ‘up North’ even managed to thwart England’s attempt to regain the Ashes – the wait goes on.
Whilst unpredictable weather is a challenge that farmers are accustomed to facing, it has been far from the only area of uncertainty for our clients in 2023. Inflation has proven to be more stubborn than had been hoped, with the associated high input and labour costs continuing to place a strain on business cashflow. The Bank of England continue to raise the base rate in a bid to bring inflation back down to their target of 2%, but in doing so they are tightly squeezing those with borrowings on variable rates or on fixed term deals coming to an end.
A further Basic Payment Scheme (BPS) reduction this year, coupled with a lack of clarity over replacement subsidy schemes and the claiming process, does nothing to help cashflow or confidence, and is a source of frustration for many.
However, as always at Dodd & Co, we will be doing our best to help our clients navigate these uncertain times, and ‘cash’ is a bit of a theme in our Autumn newsletter. We look at strategies for managing cashflow, what you should be considering if you are fortunate enough to have some cash to invest, how this Government (or the next one!) might look to collect more cash from capital taxation, the end of tax credits, and some VAT tips.
By Jonathan Ridley (Tax Partner)
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