So here we go. I welcomed the new tax year whilst staying overnight in rural Oxfordshire at a client's pub/B&B as I'm visiting clients over the next two days.
Whilst having breakfast, thoughts turn to the reality of all the price and tax rises effecting every business and coming from all directions. But I can't help feeling that the hospitality sector is going to feel the full force over the coming months.
If anyone needs reminding, here's what we have to deal with now:
- VAT rate increases from 12.5% to 20% in hospitality
- National Minimum Wage increases across the board
- National Insurance and Dividend Tax increases by 1.25% (partially offset for employees who see an increase in the starting point for paying NI)
- Business rates discount for hospitality reduced from 66% to 50%
- Rising interest rates
- Unprecedented increases in fuel costs
- Rising food and material prices
- Staff shortages due to Covid absences
- And of course, many staycationers now seeking warmer holidays abroad as the world begins to open up again.
I haven't spoken to anyone in the last month who hasn't complained of at least one of these issues, so my only crumb of comfort I'm afraid, is that we really are all in this together.
Businesses are resilient and some of you appear very busy, despite this backdrop. Be creative and think outside the box to keep customers spending as recent surveys I've seen predict a drop in household spending by 20% this year.
As always we are at the end of the phone, so please if you are worried or have any questions, give us a call.
Poole Office: 01202 950527
Wimborne Office: 01202 049050
Bournemouth Office: 01202 950527