Tax becomes a top concern for UK businesses

Business priorities are shifting — and fast. According to the latest data from the Office for National Statistics (ONS), taxation is now the second most common concern among UK businesses, after falling demand.

In the Business Insights and Conditions Survey published by the ONS on 22 May 2025 as seen in below diagram, 11% of businesses cited tax as a major worry — overtaking inflation, which was reported by only 8%. This reflects a growing trend that’s been building steadily since summer 2024.

Why tax is climbing the list of business concerns

For a long time, economic uncertainty dominated business worries. But as new tax policies begin to bite, the focus is changing — and fast.

From 6 April 2025, key changes to employer National Insurance came into effect:

• The employer NI rate increased from 13.8% to 15%
• The secondary threshold fell from £9,100 to £5,000

The result — Employers are now facing higher staffing costs, particularly for lower-paid workers and that’s prompting a fresh look at business models, workforce planning, and profitability. To better understand the impact of Employer NI changes view our article here.

Strategic planning is key to navigating uncertainty and growing tax concerns

With tax concerns moving up the agenda, businesses are recognising the need for a more strategic approach. Planning ahead can ease pressure and help you make informed, confident decisions.

• Make use of every relief available
  Make sure you’re claiming all available tax reliefs — from capital allowances and R&D credits to sector-specific incentives.
• Review workforce and remuneration models
  Rising employer NI costs are a good reason to re-evaluate how staff are paid. Small changes to pay structure or benefits could deliver meaningful tax savings.
• Build tax planning into long-term strategy
  Rather than reacting to changes, businesses that embed tax planning into their overall strategy are better placed to adapt and grow.

How Rayner Essex can help

At Rayner Essex, we help clients take control of their tax position through clear advice and strategic planning. Whether it’s cost reviews, restructuring, or maximising tax reliefs or assessing your business strategy, our tax specialists are here to support you and help you navigate uncertainty and tax concerns with confidence. Get in touch with our tax experts today to arrange a review tailored to your business needs.