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With UK SME businesses facing one of the most challenging tax environments in recent years, effective financial planning has never been more important. The latest analysis from the Confederation of British Industry( CBI) confirms that the share of the tax burden on businesses has steadily increased since 2019 / 20 – reaching 31.3 % in 2025 / 26, the highest since at least 1998 / 99 on a like-for-like basis.

In 2025 / 26, businesses paid 12.7 % more in taxes compared to the previous year, underlining the pressures faced by businesses already wrestling with rising costs and global uncertainty. In addition to the demands of Corporation Tax and Employers’ National Insurance Contributions( NICs)( which represented almost two-thirds( 65.6 %) of the total tax burden of businesses in the last financial year), businesses must now consider the Plastic Packaging Tax, Energy Profits Levy, Residential Property Developer Tax and Bank of England Levy.

At the same time, HMRC has squeezed relief and targeted previously exempt benefits such as electric vehicles which are now subject to escalating benefit in kind rates up to 2028. Yet while both accountants and independent financial advisors work hard to maximise tax efficiency and financial planning, there are still pockets of tax efficient investment being left off the table. With the majority of smaller businesses claiming only trading expenses and capital allowances, an endemic lack of awareness and understanding surrounding a number of important tax efficient opportunities is adding to both business cost and risk.

Relevant life insurance

One of the biggest areas overlooked by business owners is life insurance. The vast majority of individuals will have a policy linked to a mortgage – indeed around 90 % of all life policies are sold by mortgage advisors.

WITH UK SME BUSINESSES FACING ONE OF THE MOST CHALLENGING TAX ENVIRONMENTS IN RECENT YEARS, EFFECTIVE FINANCIAL PLANNING HAS NEVER BEEN MORE IMPORTANT.

Intelligent SME. tech

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