The October Budget – Are you prepared?

Head of Dental, Iain Stevenson, for Wesleyan Financial Services, discusses what the upcoming budget could potentially mean to dentists and why having a good understanding of your financial position now, could help you get ahead of the game.

The upcoming fiscal budget on October 30^th has already prompted a flurry of speculation and anticipation, especially following Chancellor of the Exchequer, Rachel Reeve’s, big reveal of a £22bn “black hole” in the nation’s finances, which Labour claim to have inherited from the former Conservative government. Reeves has stated that as a result, a number of changes will need to be made to plug the hole and that this will involve making some “difficult decisions”.

Labour has confirmed it will not raise income tax, National Insurance or VAT, however, in a public address on 27 August, Prime Minister, Keir Starmer, stated that the fiscal plan is “going to be painful” and said that those with the broadest shoulders “should bear the heavier burden”. 

Understandably, this may have left many dentists and other dental professionals feeling uneasy at the prospect of upcoming changes that we don’t yet have any clarity on, but which may very well impact their personal finances.  

My suggestion to dentists, is to ensure that when the budget is announced, you are in a position where you already understand what the implications would be for you and your individual circumstances, as what causes panic, is not knowing.

To better illustrate that point, let’s imagine, for example, that the rumours circulating regarding potential changes to Capital Gains Tax (CGT), Inheritance Tax (IHT) and pension relief are announced by Labour on the day of the budget. This may cause many dentists to feel unclear on what these changes could mean to their financial situation - resulting in a rush to seek advice and guidance to understand what these announcements mean.

However, by having a conversation now with your dental Specialist Financial Adviser and understanding exactly what your current situation is and what the impact of potential changes would be to you personally, when any changes are announced, you will better understand the potential impact this could have upon your finances, be in an already informed position and better able to take action.

For example, if something were to change to CGT, and you were planning on selling assets in the near future, then with help of specialist support, you could start to consider how this could impact you and what your possible options may be. Similarly, if something were to change surrounding pension tax relief, having a discussion now could help you understand what that might mean to you.

This is the ideal moment to take a step back and consider what your current financial situation looks like and during that conversation with your adviser, you can address the ‘what ifs’. For example, what if IHT does actually change, what might that mean to me? Once you start positioning, it helps to remove the stress from the situation.

We don’t know what’s going to happen, and it is never a good idea to make changes based on speculation as  things may or may not change, but by having a review, at least you have an idea of what to look out for when the budget is announced and are ahead of the game, rather than scrambling to try and gain an understanding of what it means to you, come October 30^th.  

A dental specialist financial adviser will be able to quickly position what potential changes could mean to your circumstances and outline possible options for action that could be taken if and when changes do occur – putting you in a position where you are ready to move forward.

When it comes to financial planning, there will never be an “ideal” situation where you are able to accurately predict the future or have all the right answers and if the past few years have taught us anything, there will always be unexpected surprises and ups and downs; however, consistency, steady planning and regular reviews are all key to ensure that you remain in an informed position. Information, knowledge and understanding always help to take the stress out of the situation, making it important to speak to your adviser as early as possible, to get a starting point.

Please bear in mind that advice in relation to inheritance tax planning is not regulated by the Financial Conduct Authority. Tax treatment depends on individual circumstances and may be subject to change in future.

If you are looking for support with financial planning, you can speak to a dental Specialist Financial Adviser at Wesleyan Financial Services by booking a no-obligation financial review here or calling 0800 316 3784.

At Wesleyan Financial Services, a team of specialists focus solely on dental professionals and their unique financial planning needs. They are there to back you on each stage of life’s journey, from graduation to post-retirement and every step in between.

About: Iain Stevenson is Head of Dental at Wesleyan Financial Services and has over 28 years of experience working in financial services. Under Iain’s guidance, Wesleyan Financial Services’ Dental segment helps to support dentists, their families, and their practices with financial planning to secure their financial future.

Wesleyan Financial Services Ltd (Registered in England and Wales No. 1651212) is authorised and regulated by the Financial Conduct Authority. Registered Office: Colmore Circus, Birmingham B4 6AR. Telephone: 0345 351 2352. Calls may be recorded to help us provide, monitor and improve our services to you.