With the recent Autumn Budget delivering personal tax changes, accountants across the UK are facing a new wave of complexities in managing their clients’ needs.
From updates to Capital Gains Tax (CGT) and Business Asset Disposal Relief (BADR) to Inheritance Tax reliefs such as Agricultural Property Relief (APR) and Business Property Relief (BPR), the industry is bracing for an uptick in client demands and compliance challenges.
Accountants now need to prepare for an increase in client inquiries as they adjust to the new CGT rates.
The rate hike alone means many of your clients will be reconsidering their tax planning strategies around asset disposals.
It’s likely that we’ll see a surge in requests for guidance as individuals seek advice on how best to adapt.
Capital Gains Tax (CGT): Greater client demand, greater complexity
As CGT rates jump from 10 and 20 per cent to 18 and 24 per cent, accountants are likely to see more clients reaching out for advice on asset sales and disposals.
This will add complexity to existing tax planning processes, demanding additional time and resources to manage.
The rate changes are also bound to generate a lot of questions from your clients who want to know the impact on their finances.
For accountants, it means an increase in workload and, for many, added pressure on resources.
You may see your team start to struggle when these enquiries build up – one or two isn’t going to be too bad, but a flood of them could be a problem.
BADR: A new call for expert guidance?
The Budget also saw changes to BADR, reducing the Investors’ Relief lifetime limit and increasing rates.
Accountants specialising in business disposals are now anticipating a wave of clients looking to make complex decisions around their business sales.
This update means you might see more of your clients requiring detailed advice on structuring their disposals.
It’s an opportunity for you to provide in-depth expertise, but the complexity means accountants will need to be ready for high client demand – particularly as people rush to make the most of the reliefs that remain.
As such, accountants are going to have to be prepared to handle this increased pressure, especially if they want to capitalise on this trend.
APR and BPR reforms: Time to diversify?
Updates to APR and BPR, meanwhile, have opened new avenues for firms to expand their services – which is great!
Clients in agriculture and family-owned businesses will need professional guidance to structure their estates and retain these reliefs.
For accountants, this is a perfect opportunity to broaden your service offerings and reach new client bases.
However, knowledge to answer questions is not enough – especially if your team can’t handle the number of enquiries you’re receiving.
By stepping in to help navigate these reforms, you can build lasting client relationships, but only if your client management processes are efficient.
Time for a tech-first approach to handle the added workload?
The changes spell increased pressure on firms and managing the workload effectively will be now crucial.
This Budget presents both a challenge and an opportunity for accountancy firms to explore innovative solutions, but the additional compliance demands mean accountants will have to work smarter to keep up.
Now, more than ever, it’s essential for you to adopt technology that can help streamline data collection and client information.
For those facing these challenges, cloud-based information-gathering technology offers a way forward. Using a platform like Glasscubes, firms can standardise data collection and streamline workflows, enabling them to stay efficient and maintain quality service across all their teams.
For firms ready to embrace technology and rise to the occasion, this period of change can also be one of growth and opportunity.
Visit Glasscubes to help you manage your increased workload.
