With the summer in full swing, August brings significant tax changes for UK businesses and individuals.
As a Manchester-based accounting firm, we take pride in providing our clients with the latest tax updates and their potential impact.
As of the first week of August, our team has summarized the following news highlights.
Alcohol Duty Implemented
Earlier, we mentioned that the government would no longer freeze alcohol duty and would redefine tax standards.
This marks the most substantial increase in wine taxes since 1975, affecting producers and alcohol enthusiasts.
On August 1st, alcoholic beverages in the UK were categorized based on their alcohol content, resulting in some price adjustments.
The average price of red or white wine purchased at supermarkets may increase by approximately 44p.
However, according to the “Brexit Pub Guarantee,” beer and cider sold in pubs are expected to be cheaper by 11p compared to supermarket prices.
Food Inflation at a Low Point
The good news is that food price inflation in August has slowed to its lowest level this year.
Significant price changes can be seen in staple foods like oil, fats, fish, and breakfast cereals.
However, considering the evolving global food supply chain situation, food inflation may face challenges in the coming months.
Continuous Decline in UK House Prices
The latest data from Nationwide reveals a 3.8% decline in UK house prices in July.
This is the largest drop in house prices since July 2009, and it might be good news for first-time buyers.
The average price of UK homes is currently £260,828, approximately £13,000 lower than the peak in August last year.
The declining house prices could benefit more buyers in securing mortgage loans, despite the persistently high mortgage interest rates.
Barcode-Free Stamps No Longer Valid
Starting from August 1st, any items with “old-style” stamps will be considered underpaid and will require an additional payment of £1.1.
However, commemorative stamps with images and Christmas stamps without barcodes will remain valid for use.
New barcode stamps were introduced in February last year, enhancing customer security features.
If you still possess old-style stamps, you can obtain a form from the post office and send the stamps to “Freepost SWAP OUT.”
There is currently no deadline for this exchange program, but please act promptly.
