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No Change for Inflation and Interest Rates
| 23-09-2025
The Office for National Statistics (ONS) reported last week that the annual inflation rate for August 2025 was 3.8%, unchanged from July. Airfare costs rose at a slower rate over the year; however, food costs continue to increase, reaching 5.1% in August.
State Pension Set for Rise – But More Retirees May Face Tax
| 23-09-2025
From April, people drawing the state pension may see an increase of more than £500 a year, thanks to the government’s triple lock guarantee. The policy means the pension rises each year by whichever is higher: 2.5%, inflation, or average wage growth.
Additional Support for Government Schemes to Help Young People into Work and Training
| 03-09-2025
The Government has announced an extra ÂŁ45 million to expand support for young people who are not currently in education, employment or training (known as NEETs).
Companies House WebFiling to Switch to GOV.UK One Login
| 03-09-2025
From 13 October 2025, Companies House will require all businesses to use GOV.UK One Login to access WebFiling. This change is part of a wider government move to introduce a single, more secure login system across all online services.
Winter Fuel Allowance: Act Now Before the Deadline
| 19-08-2025
As temperatures begin to drop across the UK, the Government’s Winter Fuel Allowance (WFA) plays a vital role in helping older residents with heating costs. But if you do not want to receive this year’s payment, you’ll need to let HMRC know and opt out by 15th September deadline.
Electric Car Grant Expanded: More Car Models Now Included
| 19-08-2025
The government’s Electric Car Grant (ECG) is now up and running, with more vehicle models eligible for discounts. Initially launched in July, the £650 million scheme offers savings on new electric cars priced at or below
Making Tax Digital for Income Tax – Are You Ready?
| 19-08-2025
The government is pressing ahead with Making Tax Digital (MTD) for Income Tax - and it will affect many sole traders and landlords over the next few years. Here’s what’s changing, when it’s changing, and how to get ready.
Seven Things Every Company Director Needs to Know
| 19-08-2025
Becoming a company director comes with a fair bit of responsibility - and not just when things are going well. Whether you're the hands-on type, more of a silent partner, or even directing behind the scenes, all company
Minimum Wage Hourly Rates: Potential Increases in 2026
| 12-08-2025
The Government has published the official remit for the Low Pay Commission (LPC) to begin its work on setting the National Minimum Wage (NMW) and National Living Wage (NLW) rates that will apply from April 2026.
Government Unveils Small Business Plan
| 12-08-2025
The government has launched its Small Business Plan which it believes will help small businesses to grow and encourage entrepreneurs to start businesses. The plan recognises that small businesses make a vital
New Legal Requirement: Directors and PSCs Must Verify Their Identity from November 2025
| 12-08-2025
From 18 November 2025, identity verification will become a legal requirement for all company directors and people with significant control (PSCs).
Will Taxes Rise in the Autumn?
| 12-08-2025
As the UK heads into the Budget this autumn, speculation is mounting over whether Chancellor Rachel Reeves will be forced to raise taxes to plug a growing gap in the nation’s finances. According to the National Institute of Economic and Social Research (Niesr)
Important Changes to Agricultural & Business Relief – Take Action Before April 2026
| 06-08-2025
The 2024 Autumn Statement introduced proposed new rules relating to Business Relief (BR), formerly Business Property Relief (BPR), and Agricultural Property Relief (APR), coming into force
Maximise the profits in your business
| 04-08-2025
When it comes to growing a business, many people focus on increasing sales. But sales alone don’t pay the bills - profit does. If you want your business to thrive, it’s important to look beyond the top line and focus on what’s actually left at the end of the day.
Revived Pensions Commission Aims to Secure Better Retirements
| 30-07-2025
The government has announced the revival of the Pensions Commission, twenty years after it helped bring in automatic enrolment. Its goal is to stop future pensioners from being worse off than those retiring today.
Government Borrowing Jumps – Are Tax Rises on the Way This Autumn?
| 30-07-2025
UK government borrowing was ÂŁ20.7 billion for June, according to new figures from the Office for National Statistics (ONS) - an increase of ÂŁ6.6 billion compared to the same month last year.
New Charity SORP Is on the Way: What Trustees and Finance Teams Should Know
| 30-07-2025
If you're involved with a charity - whether you're on the board, manage the accounts, or provide support behind the scenes - you may have heard that there are
HMRC Releases Transformation Roadmap
| 30-07-2025
On 21 July 2025, HM Revenue & Customs (HMRC) announced its Transformation Roadmap – a plan to modernise the UK’s tax and customs systems by 2030. HMRC have said that the aim of the Transformation Roadmap is to make the tax administration

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The Office for National Statistics (ONS) reported last week that the annual inflation rate for August 2025 was 3.8%, unchanged from July. Airfare costs rose at a slower rate over the year; however, food costs continue to increase, reaching 5.1% in August. This is putting pressure on households and hospitality businesses alike. UK inflation higher than in Europe Interestingly, the ONS noted that UK inflation seems to be “significantly higher” than in France (0.8%) and Germany (2.1%). The increase in employers’ National Insurance contributions is thought to be a factor in the disparity, with businesses passing these additional costs onto their customers. No change in interest rate The Bank of England’s Monetary Policy Committee (MPC) also met last week to review the current bank rate. With inflation remaining above the 2% target rate, the MPC voted to leave interest rates unchanged. Takeaways For businesses, the inflation figures show that costs are still rising. Higher food prices and the knock-on effects of National Insurance are keeping pressure on margins. The fact that inflation has not climbed further is good news, and European inflation figures suggest there is potential for a lower inflation rate, but it may take some time before there is a real sense of stability. Careful cashflow planning and regularly reviewing your financials remain key to ensuring that your business continues to grow and thrive. If you would like advice on how to make your business grow, please get in touch. We are always happy to help you! See: https://www.bbc.co.uk/news/articles/cderznjj4r7o

From April, people drawing the state pension may see an increase of more than £500 a year, thanks to the government’s triple lock guarantee. The policy means the pension rises each year by whichever is higher: 2.5%, inflation, or average wage growth.

The latest figures from the Office for National Statistics suggest that the average earnings growth of 4.7% will be the measure used.

For those on the new state pension (anyone reaching state pension age after April 2016), the weekly amount for a full entitlement is expected to increase to £241.05, or £12,534.60 a year. That’s a rise of £561.60 compared with now.

For those on the old basic state pension, the increase is expected to take the full weekly payment to ÂŁ184.75, or ÂŁ9,607 a year, an annual rise of ÂŁ431.60.

Tax Implications

While this is welcome news for pensioners’ incomes, there’s another angle to consider. The personal income tax allowance – the amount you can earn tax-free each year – is set to remain frozen at ÂŁ12,570 until 2028. With the new state pension edging ever closer to this level, many pensioners who rely mainly on the state pension could find themselves paying tax for the first time by 2027.

While many pensioners already pay income tax due to other sources of retirement income, this freeze, combined with steady increases in the state pension, will pull more people into the tax net over the next few years.

What This Means for You

Any rise in the state pension will provide some welcome relief against the continuing increases in the cost of living. However, with frozen tax thresholds, the effect on your disposable income may be less than you would first think.

If you would like personalised advice on how your tax position may be affected, please feel free to call us. We would be happy to help you!

See: https://www.bbc.co.uk/news/articles/c62lnzdndkeo

The Government has announced an extra ÂŁ45 million to expand support for young people who are not currently in education, employment or training (known as NEETs).

This extends the Youth Guarantee trailblazer scheme for another year and is part of working towards rolling out a national Youth Guarantee that will help all 18–21-year-olds have the chance to “earn or learn”.

The Challenge

Recent figures from the Office for National Statistics show 948,000 young people across the UK are NEET.

Reasons for the worsening problem in recent years are thought to include:

Young people who are NEET often face additional challenges such as health conditions, a lack of qualifications, or being from disadvantaged backgrounds. The long-term impact can include lower pay, higher unemployment, and poorer mental health.

The Trailblazer Schemes

To tackle this, eight local “trailblazer” projects launched in Spring 2024. They’re trialling new ways of identifying young people most at risk of becoming NEET and matching them to local training, apprenticeships or job opportunities.

What is learned from these local schemes will shape the full Youth Guarantee roll-out across the country.

Why It Matters for Businesses

While these schemes are aimed at supporting young people, they could also represent an opportunity for employers:

If your business could benefit from young, enthusiastic recruits, it would be worth keeping an eye on local schemes. You might also want to look at any entry-level roles you have. Could an apprenticeship or training placement be a good fit?

For small and medium-sized businesses, this may create new opportunities to recruit and train young people while receiving government support.

See: https://www.gov.uk/government/news/thousands-more-young-people-to-get-training-and-work-support-as-government-extends-45m-scheme

From 13 October 2025, Companies House will require all businesses to use GOV.UK One Login to access WebFiling. This change is part of a wider government move to introduce a single, more secure login system across all online services.

What’s Changing?

From 13 October 2025, you’ll need to connect your WebFiling account to GOV.UK One Login before you can continue filing.

If you share your WebFiling account with others, only one person will be able to connect each WebFiling account to their GOV.UK Login. Anyone who shares access will need to create their own GOV.UK One Login, using a different email address.

This is part of a wider move as the government intends for GOV.UK One Login to be increasingly used for accessing online services.

What You Can Do to Get Ready

To avoid last-minute issues, here are a few simple steps to take before October 2025:

If you try to sign into WebFiling after 13 October 2025, you’ll be redirected to connect your account with GOV.UK One Login.

See: https://www.gov.uk/government/news/access-to-companies-house-webfiling-accounts-to-move-to-govuk-one-login

As temperatures begin to drop across the UK, the Government’s Winter Fuel Allowance (WFA) plays a vital role in helping older residents with heating costs. But if you do not want to receive this year’s payment, you’ll need to let HMRC know and opt out by 15th September deadline.

What is the Winter Fuel Allowance?

The Winter Fuel Allowance is a tax-free payment of between £100 and £300, paid automatically to most people born before a certain date. It’s designed to help with energy bills during the colder months.

The allowance is not means-tested, meaning you can receive it regardless of your income or savings, and it is usually paid directly into your bank account. However, anyone earning over ÂŁ35,000 will need to repay the Winter Fuel Allowance unless they choose to opt out. If they do not, HMRC will automatically recover the payment through their tax code in 2026/27, or through self-assessment for the 2025/26 tax year.

Who Gets It?

You’re usually eligible if:

If you already receive a State Pension or other social security benefits (excluding Housing Benefit, Council Tax Reduction, Child Benefit, or Universal Credit), you may get the payment automatically. 

Why Would Someone Opt Out?

While most people welcome the extra help, some choose to opt out—for example:

The Opt-Out Deadline

If you do not wish to receive the WFA this winter, you must inform the Department for Work and Pensions (DWP) before the deadline. Missing it means the payment will be made automatically.

Full instructions are available on the Government website: https://www.gov.uk/winter-fuel-payment/report-change-circumstances

If You’re Keeping It

If you’re happy to receive the WFA, you don’t need to do anything—it will be paid automatically, usually in November or December.

Act Now

Whether you’re planning to keep the payment or opt out, it’s important to be aware of the deadline so you can make an informed choice. A quick phone call or online form is all it takes to opt out, and missing the date means the money will still arrive in your account.

For more information and to make changes to your WFA status, visit the official Government page here: https://www.gov.uk/winter-fuel-payment/report-change-circumstances

The government’s Electric Car Grant (ECG) is now up and running, with more vehicle models eligible for discounts. Initially launched in July, the £650 million scheme offers savings on new electric cars priced at or below £37,000. The discount is either £3,750 or £1,500, depending on the vehicle’s sustainability and is applied directly at the point of sale, with no paperwork required from customers.

The grant aims to make electric vehicles (EVs) more affordable by reducing the upfront purchase price and narrowing the cost gap with petrol and diesel models. This is part of the government’s broader commitment to phase out the sale of new petrol and diesel cars by 2030.

From 9 August 2025, the scheme was expanded to include thirteen more EVs, bringing the total to seventeen models. Brands now on the list include Nissan, Renault, Vauxhall and CitroĂ«n, with more expected in the coming weeks as manufacturers’ applications are approved.

Alongside the ÂŁ650 million in grant funding, the government is investing ÂŁ4.5 billion to accelerate EV adoption, with Britain already the largest EV market in Europe in 2024 and sales up by almost a third this year.

Tax Advantages of Electric Company Cars

Despite the grant, electric cars are still generally more expensive than petrol or diesel cars. However, for businesses and employees, EVs can also be worth considering because of the tax savings they bring when provided as a company car.

If you would like help assessing whether an electric car purchase would benefit you or your business, please give us a call. We would be happy to help you!

See: https://www.gov.uk/government/news/electric-car-prices-slashed-as-grant-scheme-expands-to-13-more-models

The government is pressing ahead with Making Tax Digital (MTD) for Income Tax – and it will affect many sole traders and landlords over the next few years.

Here’s what’s changing, when it’s changing, and how to get ready.

What is MTD for Income Tax?

Under MTD, sole traders and landlords whose “qualifying income” is above a certain level will need to:

“Qualifying income” basically refers to your total gross income from self-employment and property in a tax year, before expenses.

Who Will Be Affected and When?

HMRC have released statistics showing how many will be impacted by the introduction of MTD. Their figures are based on the 2023 to 2024 tax year.

The rollout is happening in stages, as follows:

Qualifying Income When MTD Becomes Mandatory Number of People Affected
Over ÂŁ50,000 6 April 2026 Around 864,000
£30,000 – £50,000 6 April 2027 Around 1,077,000
£20,000 – £30,000 6 April 2028 Around 975,000

In total, about 2.9 million individuals will eventually need to follow the MTD rules.

Are You Ready?

The requirement to send quarterly updates means that you will need to keep up to date with your bookkeeping. Doing it all after the year-end will no longer be an option.

The need to use software will also mean that keeping paper records of your income and expenses will no longer be sufficient.

HMRC’s latest figures show that software use is common but not universal:

What You Need to Do Now

  1. Check your qualifying income – add up your total gross self-employment and property income for the year.
  2. Review your record-keeping – paper records won’t be allowed.
  3. Consider software options – cloud accounting tools make quarterly submissions easier and keep you compliant.

Don’t wait until the deadline. Switching to digital record-keeping now means you can get comfortable with the software and avoid last-minute headaches.

If you’d like some personalised advice, please get in touch with us. We can help you choose the right software and show you how to use it.  If you’d prefer to stay away from software altogether, we can also provide a bookkeeping service.

Whatever the case, we’ll work with you to make the transition smooth and stress-free so when MTD arrives, you’re already ahead of the game.

See: https://www.gov.uk/government/statistics/making-tax-digital-for-income-tax-business-population-statistics/making-tax-digital-for-income-tax-business-population-statistics-commentary

Becoming a company director comes with a fair bit of responsibility – and not just when things are going well. Whether you’re the hands-on type, more of a silent partner, or even directing behind the scenes, all company directors have legal duties under the Companies Act 2006.

Here’s a straightforward look at seven key duties every director should be aware of:

  1. Follow the company’s constitution

Your first duty is to stick to the rules set out in the company’s constitution and articles of association. These documents outline how the company should be run and what powers you have as a director. If you go outside those powers, you could be held personally responsible.

  1. Promote the success of the company

You’re expected to act in the company’s best interests and promote its success. But that doesn’t just mean chasing profits. You also need to think about:

And if the company becomes insolvent? Your focus legally shifts to protecting the interests of creditors.

  1. Use your own independent judgment

It’s fine to take advice, but at the end of the day, you’re responsible for the decisions you make. You must use your own judgment and avoid simply doing what someone else tells you – even if they’re another director or major shareholder.

  1. Exercise reasonable care, skill and diligence

You’re expected to do the job to the best of your ability. The law takes into account your personal knowledge and experience. So, if you’re a qualified professional (like an accountant or engineer), you’ll be expected to apply the skill and experience you have in your role as a director.

  1. Avoid conflicts of interest

You need to steer clear of situations where your personal interests (or those of family members) might clash with your responsibilities to the company. This includes things like:

If there’s even a chance of a conflict, it should be declared to the board – and any process set out in the company’s articles of association should be followed. This duty even continues after you’ve stepped down as a director.

  1. Don’t accept benefits from third parties

You mustn’t accept perks or gifts from others that could influence your decisions as a director. The only exception might be something like reasonable corporate hospitality, and even then, only if there’s clearly no conflict of interest.

  1. Declare any interest in company transactions

If there’s a chance you could personally benefit from something the company is doing (say, awarding a contract to a business owned by a relative), you must declare it. Letting the board know is essential, and in some cases, you may need to step back from decisions altogether.

Anything else?

There are other general duties to keep in mind besides those listed above. Maintaining confidentiality, not misusing company property, and always acting in good faith would be some further examples.

Being a director isn’t just about a title – it carries real legal responsibilities. If you’re ever unsure about your role or what’s expected of you, please feel free to speak to us at any time. A quick check now could save a big headache later.

The Government has published the official remit for the Low Pay Commission (LPC) to begin its work on setting the National Minimum Wage (NMW) and National Living Wage (NLW) rates that will apply from April 2026.

While the final figures won’t be confirmed until later in 2025, the direction of travel is already clear. Employers should be prepared for further increases in wage costs in April 2026.

National Living Wage likely to rise again

The Government has reiterated its commitment to ensuring the National Living Wage doesn’t fall below two-thirds of UK median earnings – a benchmark that defines the level of low hourly pay. Based on current forecasts, that means we could be looking at a NLW rate of ÂŁ12.71 from April 2026, a 4.1% increase.

To put that into context, the current NLW rate for workers aged 21 and over is ÂŁ12.21, up 6.7% from the previous year.

Narrowing the gap for younger workers

As part of its remit this year, the LPC will be consulting on narrowing the gap between the full NLW rate and the rate that applies to workers aged between 18 and 20 years old. The LPC will be putting forward recommendations on how to achieve a single adult rate in the years ahead.

What should employers do now?

Although the final rates won’t be known until October, these latest estimates are a strong indication of where things are headed. Here are a few things to consider:

Final thoughts

The Government is clear in its aim to raise living standards through wage growth – and the LPC’s remit is designed to support that. For employers, this means keeping a close eye on wage forecasts and planning ahead for higher employment costs.

We’ll keep you updated as more information becomes available. In the meantime, if you’d like help reviewing your payroll plans or budgeting for potential increases, we’re happy to help.

See: https://www.gov.uk/government/news/national-living-wage-estimate-update

The government has launched its Small Business Plan which it believes will help small businesses to grow and encourage entrepreneurs to start businesses.

The plan recognises that small businesses make a vital contribution to the economy, employing 60% of the UK’s workforce and generating £2.8 trillion in turnover.

Here is a breakdown of some of the key measures and how they may impact your business.

Could This Be the End of Late Payments?

Likely not, however the government is promising the toughest late payment legislation in the G7.

They plan to introduce:

These reforms could ease cashflow pressures for you and reduce the amount of time spent chasing invoice payment.

Better Access to Finance

The plan includes several measures that could increase access to finance, including:

These changes could mean that there will be more routes to affordable finance.

Cutting Red Tape

The plan promises to make a 25% cut in regulatory admin costs, and to make reforms to the tax and customs system to make things simpler and quicker.

Any time saved on compliance and admin means more time for growing your business.

Other Measures

Other measures included in the plan include targeted support for high street businesses, education and training for the next generation of entrepreneurs, and helping businesses to take advantage of additional opportunities at home and abroad.

To review the Small Business Plan in full, see: https://www.gov.uk/government/publications/backing-your-business-our-plan-for-small-and-medium-sized-businesses

From 18 November 2025, identity verification will become a legal requirement for all company directors and people with significant control (PSCs). This is part of a wider reform under the Economic Crime and Corporate Transparency Act 2023, and it’s set to impact millions of individuals connected to UK companies.

If you’re a company director or PSC, this change will affect you, and it’s important to understand what’s required – and when.

What’s Changing?

From 18 November 2025:

Why Is This Happening?

The aim is to make the companies register more transparent and trustworthy, and to help tackle fraud and economic crime. With identity verification in place, it will be harder for individuals to hide behind fake names or false company appointments.

What Does It Mean for Your Business?

This is a one-off process for most people, and Companies House says it will be quick and simple – taking just a few minutes in most cases.

The verification process can be completed via your GOV.UK One Login. Or, you can verify through us, as we are an Authorised Corporate Service Provider (ACSP).

Once the new rules come into effect, it will be an offence to act as a director without being verified.

When Do You Need to Act?

What If You’re Unsure?

Companies House is contacting all companies via their registered email addresses with details and guidance. You’ll also be able to log into Companies House after 18 November to check identity verification due dates for all roles you hold.

If you have any questions or need help, please just get in touch with us. We’ll be happy to help guide you or your company through the new requirements.

See: https://www.gov.uk/government/news/companies-house-confirms-identity-verification-rollout-from-18-november-2025

As the UK heads into the Budget this autumn, speculation is mounting over whether Chancellor Rachel Reeves will be forced to raise taxes to plug a growing gap in the nation’s finances.

According to the National Institute of Economic and Social Research (Niesr), the government is on course to miss its own borrowing targets by £41.2 billion, unless action is taken. Niesr warns that a “moderate but sustained increase in taxes” may be the only realistic route for the government, particularly under the borrowing rules the chancellor has described as “non-negotiable.”

A “Trilemma” for Reeves

When Reeves became Chancellor, she set out two strict fiscal rules:

  1. Day-to-day government spending must be funded by tax revenues, not borrowing.
  2. Public debt must fall as a share of national income within five years.

These rules were intended to reassure investors and signal economic credibility. However, meeting them is becoming increasingly difficult as weaker-than-expected economic growth and the reversal of welfare cuts are expected to deliver less than previously forecast. The ongoing effect of US trade tariff policies on global trade is also a challenge.

Niesr says the chancellor faces a “trilemma” between:

The deputy director for macroeconomics at Niesr, Stephen Millard, said that if the chancellor is going to be able to raise £40 billion, “I think one of the big taxes is going to have to be raised.” 

Where Might Tax Increases Come From?

NIESR has suggested the government could raise revenue by:

A Difficult Autumn Ahead

With all these pressures converging, the upcoming Autumn Budget could be a significant one. However, whether it will include tax rises, stealth tax extensions, or reforms to the tax system, remains to be seen.

As always, we’ll be keeping a close eye on the Autumn Budget and any announcements that could affect you or your business. Once the details are confirmed, we’ll provide a clear summary highlighting what matters most – whether that’s changes to tax rates, allowances, or other measures.

If you have any questions about the effect of tax on your business or personal situation, please give us a call, we’ll be happy to help you.

See: https://www.bbc.co.uk/news/articles/cn85vyd1epzo

The 2024 Autumn Statement introduced proposed new rules relating to Business Relief (BR), formerly Business Property Relief (BPR), and Agricultural Property Relief (APR), coming into force from 6 April 2026. A consultation with HMRC recently closed, the outcome of which was confirmed on 21 July. Subject to further amendments, the announcements will be included in the upcoming Finance Act.

What’s new?

The new legislation relating to farms and businesses brings in a ÂŁ1million allowance per person, spread across agricultural and business assets if both are owned.

This is a dramatic change to a regime which has been in place for many years, and which allowed qualifying business assets and farms to pass down the generations without a tax charge. The current rules state that where qualifying conditions are met, these assets receive 100% Inheritance Tax (IHT) relief.

Latest updates

The recent HMRC consultation confirmed that the £1million allowance will now ‘renew’ every seven years, in the same was as the £325,000 IHT Nil Rate Band. It also confirmed that the £1million allowance is not transferrable on death to a surviving spouse.

What hasn’t changed?

These proposed changes do not affect the operation of the IHT Nil Rate Band of ÂŁ325,000 or the Residence Nil Rate Band of ÂŁ175,000.

What happens after April 2026

From 6 April 2026, qualifying agricultural and business assets will only be exempt from IHT up to ÂŁ1million per person if the conditions are met. Any excess value above this limit only receives 50% relief. This gives an effective IHT rate of 20% on the value above ÂŁ1million.

What can be done?

There is an opportunity, prior to 6 April 2026, to carry out planning based on the current transitional rules. This will allow you to remove agricultural and / or business assets from your estate – potentially in excess of the £1million allowance – without an immediate charge to IHT by transferring (gifting) assets which qualify for the relief.

If you feel the situation outlined applies to you, it is important that you contact us as soon as possible for planning to be carried out before 6 April 2026.

Transfers (gifts) can be made to:

· Individuals. A seven year survival period for IHT applies. There may be Capital Gains Tax (CGT) to consider but this can usually be deferred. However, you will lose control of the asset(s).

· Trusts. The same IHT and CGT position applies but you can (jointly with your trustees) retain control of the asset(s).

Trusts are widely used estate planning vehicles but are particularly useful in this situation, in view of the upcoming changes. A trust will, usually, also receive its own ÂŁ1million IHT allowance for qualifying agricultural and business assets.

It is crucial for planning to be considered during this transitional period allowing, perhaps, larger value gifts to be made than would be the case from 6 April 2026.

There are important considerations when using a trust, but this current time-limited opportunity should not be ignored. Using a trust will allow you to remove assets from your estate which might otherwise generate IHT liabilities under the new rules.

What else can be done?

Other options to mitigate the IHT burden can be considered, such a life insurance to provide funds towards a potential IHT liability.

Your Wills should be reviewed

It is also important for holders of these qualifying agricultural and business assets to review their Wills to ensure they are structured to make use of all available reliefs and exemptions. This is particularly relevant bearing in mind the inability to transfer the ÂŁ1m allowance.

Download our handy PDF HERE

When it comes to growing a business, many people focus on increasing sales. But sales alone don’t pay the bills – profit does. If you want your business to thrive, it’s important to look beyond the top line and focus on what’s actually left at the end of the day.

Why profit matters more than sales

High sales figures might look impressive, but if your costs are just as high (or higher), your business may be working hard for very little reward. Profit is the real measure of success – it’s what gives you the freedom to reinvest, grow, or simply take home a decent return for your hard work.

Understand your gross profit

Gross profit is what’s left after you subtract the direct costs of producing your goods or delivering your services. These are things like materials, stock, or labour that’s linked directly to a sale.

For instance, if you sell a product for ÂŁ100, and it costs you ÂŁ60 to make or buy it in, your gross profit is ÂŁ40.

Keeping an eye on gross profit helps you understand how efficient your core business activity really is. To improve it, you might:

Why cutting prices can backfire

It’s tempting to drop prices to bring in more sales, especially when things are quiet. But a lower price means a lower profit per sale – and you may end up working twice as hard for half the reward. Unless your costs drop too, chasing sales this way can shrink your margins and leave you worse off.

Know your numbers

One of the simplest ways to improve profit is to understand exactly what money is coming in – and where it’s going out. Many small businesses are surprised when they look closely at their figures. Regular financial reporting, even at a basic level, gives you the insight to spot leaks, adjust quickly, and make confident decisions.

A clearer path to profit

Profit isn’t just about cutting costs – it’s about understanding your business and making small changes that add up over time.

If you’d like support reviewing your margins, simplifying your reporting, or exploring ways to make your business more rewarding, we’d be happy to help. Just get in touch for a chat.

The government has announced the revival of the Pensions Commission, twenty years after it helped bring in automatic enrolment. Its goal is to stop future pensioners from being worse off than those retiring today.

New government analysis suggests some worrying trends:

It’s estimated that people retiring in 2050 could see 8% less private pension income than today’s pensioners.

What’s the Commission going to do?

The newly revived Commission will look at what may be stopping people from saving enough and will issue its final report in 2027.

What does this mean if you’re a business owner or self-employed?

If you’re self-employed or run a small business, this news is a reminder to check in on your own retirement planning. The figures suggest that 3 million self-employed people aren’t saving into a pension.

However, these figures don’t factor in that many business owners look to use their business as their pension. For instance, you may be planning to sell the business or property within it to fund retirement.

Whatever the case, it’s practical to regularly review your planning to check that you will have enough to retire on. Contributing to pensions also carry some tax advantages which can be worth factoring in.

Possible effects on employers could include auto-enrolment being expanded with increased costs or administration work. It’s too early to know what the Pension Commission will recommend, but it could pay to watch developments so that you can be prepared.

See: https://www.gov.uk/government/news/government-revives-landmark-pensions-commission-to-confront-retirement-crisis-that-risks-tomorrows-pensioners-being-poorer-than-todays

UK government borrowing was ÂŁ20.7 billion for June, according to new figures from the Office for National Statistics (ONS) – an increase of ÂŁ6.6 billion compared to the same month last year.

While the overall figure is broadly in line with forecasts for the year so far, the rise has added pressure on Chancellor Rachel Reeves ahead of the Autumn Budget. Higher spending on public services, rising interest payments on debt, and weaker-than-expected tax receipts have contributed to the increase.

What does this mean for taxpayers?

Economists now widely expect that the Chancellor will need to find ÂŁ15–25 billion later this year to meet her fiscal rules – particularly the commitment to:

This makes tax rises a real possibility in the upcoming Budget.

What kind of tax changes could we see?

Obviously, nothing has been confirmed yet, but there is speculation about extending the freeze on income tax thresholds beyond 2028, which brings more people into higher tax bands over time

Other possibilities might include targeted tax increases on capital gains, dividends, pensions, or business reliefs, or maybe reforms to tax breaks – particularly those perceived as benefiting higher earners or larger businesses.

At this stage it’s difficult to predict what could change, however we’ll continue monitoring developments as the Budget approaches. If you’d like to talk through your tax planning or discuss what changes could mean for you, please get in touch.

See: https://www.bbc.co.uk/news/articles/cwygq5plz04o

If you’re involved with a charity – whether you’re on the board, manage the accounts, or provide support behind the scenes – you may have heard that there are some changes coming to the way charities report their finances.

The biggest step in that process has been completed with the consultation into the new Charities Statement of Recommended Practice (SORP) now closed. Over 140 stakeholders submitted their views, and these are now being analysed to help shape the final version of the guidance.

So, what should charities be doing in the meantime?

What Is the SORP?

The SORP (Statement of Recommended Practice) is the framework that sets out how charities should prepare their accounts to comply with UK accounting standards.

The SORP-making body includes the Charity Commission for England and Wales, the Office of the Scottish Charity Regulator (OSCR), and the Charity Commission for Northern Ireland. 

When Will the New SORP Apply?

The updated SORP is expected to be published in October 2025. It will apply to financial years starting on or after 1 January 2026.

So, if your charity’s financial year runs from January to December, you’ll be using the new SORP from January 2026. If your year starts in another month, the changes will kick in at the beginning of whichever month starts your 2026/27 financial year.

What Should You Do Now?

While the full guidance won’t be finalised until October, the Charity Commission are urging charities to get ready for the changes the Financial Reporting Council introduced on lease accounting and revenue recognition.

Those changes involve:

If you’d like a friendly chat about what these changes might mean for your charity, or if you want to schedule a SORP-readiness review later this year, just get in touch. We’d be happy to help you.

See: https://www.gov.uk/government/publications/charity-commission-news/charity-commission-news-july-2025

On 21 July 2025, HM Revenue & Customs (HMRC) announced its Transformation Roadmap – a plan to modernise the UK’s tax and customs systems by 2030.

HMRC have said that the aim of the Transformation Roadmap is to make the tax administration system more automated, more focused on self-service and better set up to get things right first time. The roadmap includes more than 50 IT projects, services and measures.

Let’s see what some of these include.

New PAYE service

As part of the Transformation Roadmap, a new online PAYE service will be launched that’s designed to give all UK PAYE taxpayers easier access to their tax affairs. Through their Personal Tax Account or the HMRC app, employees will be able to check and update things like:

For employees, this should mean more visibility and control of their tax. For employers, it could mean fewer questions from staff about their tax codes or deductions – especially if you’re already fielding those awkward “why has my tax changed?” queries.

If you run payroll or support employees with benefits or expenses, it’s a good idea to keep an eye on these updates. Over time, staff might expect you to understand and even guide them through using these services.

Push for 90% Digital by 2030

HMRC is clear that they feel the future is digital. Their goal is for 90% of customer interactions to happen digitally by 2030.

That means less reliance on letters and phone calls, and more emphasis on apps, online forms, and AI-powered assistants. In fact, HMRC believes they can save ÂŁ50 million a year just by reducing paper correspondence.

Post will still exist, but only for critical correspondence and those who genuinely need it. 

AI and Automation

Artificial Intelligence (AI) is playing a big role in this transformation. HMRC will use it to:

It seems there is a growing emphasis on real-time data and compliance. For example, the introduction of a Digital Disclosure Service will allow taxpayers to correct mistakes more easily – but also means HMRC will have better tools to spot issues.

What Else is Coming Soon: A Few Key Projects

A few measures that HMRC are planning to rollout in this tax year include:

There’s also a focus on tackling offshore tax avoidance, especially among high-net-worth individuals. Tax avoidance amongst non-compliant umbrella companies will also be targeted.

What’s Coming Later?

HMRC will be looking at how they can modernise the penalties they charge for late tax payments and will be providing an update on how they plan to do this later in the year.

Other measures that are in the pipeline include:

New legislation is also planned for April 2026 that will make recruitment agencies legally responsible for accounting for PAYE where they use umbrella companies – so if you use workers in such an arrangement that’s going to be worth a closer look. 

What Should You Do Now?

Here are a few simple steps to consider:

If you’re unsure how these changes might affect your business – or you’d like help reviewing your payroll, compliance processes, or digital readiness – we’re here to support and help you.

To read the Transformation Roadmap in full, see: https://www.gov.uk/government/publications/hmrc-transformation-roadmap/hmrcs-transformation-roadmap