With interest rates set to rise to 2% and inflation expected to hit double digits by October, now is the time to put a contingency plan in place and consider fixed rates on all your assets.
What does that mean?
Interest rates are currently the highest they’ve been in 13 years and set to double by September.That means getting funding for your business will be more expensive. And that could have an impact on your cashflow, growth and investment plans, especially if you rely heavily on funding. Higher interest rates can also have an impact on consumer spending. This is because your customers will have less disposable income due to higher payments on personal loans and mortgages
Things to consider…
- Revisiting your business plan and adding a contingency plan is good practice.
- Consider limiting spending and focus on improving other areas of your business. For example, could you refinance some of your assets for cash flow purposes?
- On the 31st March, the 50% First Year Allowance (FYA) was announced to support the UK economy, the biggest two year tax cut in British history. This can help your company to go green and make big savings.
- The Annual Investment Allowance is providing 100% relief for plant and machinery investments up to its highest ever £1 million threshold.
- Alongside the AIA and the WDA, the new budget has announced the Super-deduction which offers 130% first-year relief on qualifying main rate plant and machinery investments and the 50% first-year allowance, a special rate for businesses purchasing assets.
To find out what’s available for your business and to consider all your options, contact one of our team who would be happy to talk you through what you can put in place now before rates increase- 01908 92 62 62.