As it stands the budget this week is the last chance for chancellor Jeremy Hunt to change or at least soften the significant increases to business taxation coming into force on 01 April 2023, writes Ross Boyd, RBCA.

Currently in Northern Ireland businesses pay corporation tax at 19 per cent of their profits. From April 2023 this will become 25 per cent of their profits, a jump of 6 per cent on what is already a hefty deduction. Consider the implications of a foreign investor looking to establish a business in Ireland. If they choose to invest in Belfast, they will not potentially be paying double the corporation tax rate they would be if they decided to invest in Dublin, which looks set to remain at 12.5 per cent.

When you couple this with a lack of a functioning executive, a health system under huge pressure and a capable but hugely undersupplied indigenous talent pool, it does not sound like a recipe for a happy St. Patricks Day for business in Northern Ireland seeking foreign investment.

An area where Mr Hunt could make a real impact in the Northern Ireland and help out owner managed businesses, who are the genuine backbone of our local economy, is to soften the changes to the dividend tax rate and increase the threshold at which the full 25% tax rate become effective.

For example, if the marginal rate started at £250,000 profit and ended at £1M profit the impact would be transformational for many small and medium businesses operating in Northern Ireland.

Ross Boyd is a business advisor and fellow of Chartered Accountants Ireland. He founded RB Chartered Accountants in 2010 offering a new and positive range of Chartered Accountancy, Audit and Business Advice services to businesses across Northern Ireland, with a clear vision of how to grow owner managed businesses and provide strategic independent advice.

For more information visit rbca.co.uk