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Amidst all the news about increased tariffs in the US, the UK government has announced a cut to zero in import tariffs on a range of 89 foreign products. Plywood and plastics, as well as pasta, fruit juices, coconut oil, pine nuts, agave syrup and plant bulbs are all included. Construction, food and hospitality, and garden-related businesses could all benefit from reduced costs as a result. The changes relate to goods where the UK Global Tariff applies, i.e. where the goods entering the UK don’t qualify for preferential treatment under, for example, a free trade agreement. The government anticipates that businesses will save at least £17 million because of these cuts. The suspension to the import tariffs on these products will last until July 2027. See:

In a small bit of good news, March’s inflation figures have been released showing a drop to 2.6% from 2.8% in February. The main reason? Lower petrol prices, which has offered some relief for households and businesses alike. However, April has brought fresh challenges. Wage costs and energy prices have already increased, and that’s expected to feed into higher costs in the coming months. The Bank of England’s last forecast showed that they expect inflation to rise again - potentially reaching 3.7% - and to stay above its 2% target until the end of 2027. The next big date for your diary is 8 May 2025, when the Bank of England will announce whether interest rates are going up, down, or staying put. What does all of this mean for your business planning? **What to watch as a business owner** Even though inflation dipped in March, the picture ahead is more uncertain. Here are a few ways to stay on the front foot: 1\. Rising costs could squeeze margins Now could be a good time to: · Look into fixed-rate energy deals if they are available. · Consider if there are any ways that you could be more energy efficient. · Speak with suppliers or landlords about cost-sharing opportunities. 2\. Customers may be price-sensitive If your costs are rising, many of your customers will be feeling the squeeze too. A smart pricing strategy will help you stay competitive without undercutting your margins: · Consider tiered pricing or flexible packages. · Emphasise the value of your products or services rather than just the price. · Keep communication open with your customer base so you understand their needs. This will help you to know how to respond. 3\. Interest rates remain a key factor While there was an expectation that interest rates would see more cuts during 2025, this is now uncertain. Therefore, you should continue to monitor your borrowing costs, and factor potential interest rate changes into any investment decisions you are planning. 4\. Staffing and wages With living costs staying high, staff who did not receive the increase for minimum wage workers may begin looking for pay rises. If you're not in a position to match inflation, consider other ways you can support and keep your staff. For instance, you may be able to: · Offer flexible hours or hybrid working options. · Provide training or upskilling opportunities. · Show appreciation through small perks or recognition. Stay agile, stay informed While the dip in March inflation is welcome, it’s not a signal that everything’s cooling down. With inflation likely to rise again, it's wise to build flexibility into your business plans. Keep an eye on the Bank of England’s interest rate decision on 8 May. It could offer more clues about where the economy - and your costs - are headed next. If you'd like tailored advice for your business or help adapting your plans, just shout. We’re here to help however we can.

Running a business comes with financial risks, and sometimes, companies struggle to stay afloat. While facing insolvency is undoubtedly stressful, seeking professional help early can prevent serious legal consequences.
A recent case involving a Cheshire builder highlights the risks of mishandling insolvency and why business owners should act responsibly when financial difficulties arise.
A Cautionary Tale: Builder Faces Sentence for Misconduct
Gary Roberts, a builder from Cheshire, was recently sentenced to six months in prison, suspended for two years, after fraudulent behaviour while his company, GR Developments 1 Ltd, was in financial trouble.
In 2021, he took £17,000 from a customer for home improvements, knowing his company was insolvent, and failed to complete the work. He also paid himself over £11,000 from company funds at a time when the business was entering liquidation.
His actions left the homeowner out of pocket and living in a home with its back exposed to the elements. He has been banned from serving as a company director for 10 years and has been ordered to pay more than £10,000 in compensation to his victim.
The Insolvency Service emphasised the seriousness of his misconduct, noting that businesses have a duty to act responsibly even when facing financial difficulties.
Why Seeking Help is Crucial
While seeking help may seem embarrassing, it can bring benefits that may even include saving the business from going under. Here are some key benefits.
1\. Avoid Legal Consequences – Directors who continue trading or remove assets when they know a company is insolvent risk severe penalties, including disqualification, fines, and even imprisonment.
2\. Protect Your Reputation – Mishandling insolvency can cause lasting damage to your professional reputation, making it difficult to secure future business opportunities or financial support.
3\.   Maximise Financial Options – Consulting insolvency professionals early can help explore options like restructuring, administration, or voluntary liquidation, potentially saving the business or reducing losses.
4\. Minimise Losses for Creditors and Customers – Acting responsibly ensures that customers, suppliers, and creditors are treated fairly, reducing financial harm to others.
5\. Ensure Compliance with the Law – Insolvency laws exist to protect businesses and the wider economy. Seeking expert advice ensures you follow the correct legal processes and avoid doing something, even unintentionally, that creates problems for you later.
Conclusion
Facing insolvency is challenging, but acting responsibly can protect you, your business, and your stakeholders. The case of Gary Roberts serves as a reminder that failing to handle insolvency properly can lead to severe consequences.
If you are concerned that your business may be in financial trouble, don’t wait - give us a call for a confidential, no blame discussion that will help you to navigate the situation legally and ethically.
See: https://www.gov.uk/government/news/cheshire-builder-sentenced-after-taking-payments-from-customer-for-work-he-did-not-complete

The Neonatal Care (Leave and Pay) Act 2023 came into force on 6 April 2025. This law provides a new leave and pay entitlement for parents with a baby in neonatal care.
Depending on how long their baby is in neonatal care, parents will now have the right to have up to 12 weeks leave and pay. This right is in addition to other time off and pay.
Who is the leave and pay available to?
The time off is available to the birth parent, father or partner, spouse, civil partner or adoptive parent.
When can the leave be taken?
A parent with a baby up to 28 days old that is admitted to neonatal care is eligible for up to 12 weeks leave. The leave must be taken within 68 weeks of the baby’s birth.
How do parents need to inform their employer?
Parents can self-declare and should contact their workplace HR representative to go through the specifics of their personal situation.
Acas has provided some helpful guidance on the new law, which can be found here - https://www.acas.org.uk/neonatal-care-leave-and-pay.
Dan Ellis, Acas Interim Chief Executive, said: “Becoming new parents can be an incredibly stressful time, especially if their baby requires care in hospital for a while. Any employee that requires time off to help care for their child in these circumstances should be treated with compassion and understanding. Our advice provides employers and managers with guidance on how they can support staff members who need to take neonatal care leave.”
See: https://www.acas.org.uk/acas-publishes-new-guidance-on-neonatal-care-leave

From 8 April 2025, Companies House has launched a new identity verification system as part of changes under the Economic Crime and Corporate Transparency Act 2023.
If you’re a director, person with significant control (PSC), or someone who files on behalf of a company, this applies to you.
What’s Changing
Everyone involved in setting up or running a UK company will soon need to verify their identity, either:
-Through their GOV.UK One Login, or -Via a registered Authorised Corporate Service Provider (ACSP) - like us.
ACSPs have been able to register since 18 March 2025 with individuals being able to start verifying their identity via GOV.UK from 8 April 2025.
While verification is currently voluntary, it will become a legal requirement later in the year, likely autumn 2025. For existing companies, it will be built into the confirmation statement process.
How We Can Help
As your accountant and an approved ACSP, we can handle the identity verification for you. That means:
-No need to manage GOV.UK logins or extra admin.  -We’ll complete the checks and ensure they’re properly recorded.  -You’ll be compliant ahead of the deadline.
This is especially useful if your company has multiple directors or PSCs. If we already look after your company filings, we’ll be building ID checks into our work over the next few months.
If you currently look after your own company filings and would like help, please get in touch. We would be happy to help you!
See: https://www.gov.uk/government/news/companies-house-starts-to-verify-identities

From 7 April 2025, families receiving Child Benefit will see an increase in their payments. HM Revenue and Customs (HMRC) has announced that the weekly rate will rise to £26.05 for the eldest or only child and £17.25 for each additional child. This means an annual payment of £1,354.60 for the first child and £897 for each subsequent child. These payments, usually made every four weeks, are automatically into claimants’ bank accounts.
One way parents can manage their Child Benefit is via the HMRC app, which allows them to make and adjust claims and update their details.
What This Means for Employers
While Child Benefit is a personal entitlement for families, there are several ways this update can be relevant to businesses and employers:
-Supporting Employees’ Financial Wellbeing: This increase in Child Benefit can provide a small but valuable financial boost to employees with children. Encouraging staff to check their eligibility and claim what they are entitled to can help reduce financial stress and improve overall wellbeing.
-Payroll Considerations and High-Income Employees: Employees earning between £60,000 and £80,000 may be subject to the High Income Child Benefit Charge (HICBC). From summer 2025, affected employees will be able to opt to have this charge deducted via their PAYE tax code, reducing the need to file a Self Assessment tax return. Employers may need to provide guidance on this option and ensure payroll systems are updated if and when new tax codes are received from HMRC.
-Maternity and Parental Leave Advice: Employees taking maternity or parental leave should be reminded to claim Child Benefit as soon as possible after their child’s birth. Claims can only be backdated up to three months, so prompt action is crucial.
-National Insurance Credits Awareness: Claiming Child Benefit also provides National Insurance (NI) credits, which contribute to an individual’s State Pension entitlement. Employees who choose to opt out of receiving payments (to avoid HICBC) should still make a claim to secure these NI credits.
Key Actions for Employers
-Inform staff about the Child Benefit increase and encourage eligible employees to claim.
-Educate high-income employees about the upcoming PAYE tax code option for HICBC.
-Ensure payroll teams are aware of the changes, particularly around HICBC deductions.
-Remind new parents of the importance of claiming Child Benefit promptly to secure payments and NI credits.
By keeping employees informed about these changes, businesses can contribute to their financial wellbeing and support parents in managing their family finances.
If you or your employees would like any further information or help, please feel free to contact us. We would be happy to help!
See: https://www.gov.uk/government/news/child-benefit-boost-for-millions-of-families

The UK Government is currently considering its response to the ‘reciprocal tariffs’ announced by the US President Donald Trump on 2 April.
Under the plans, a range of products exported from the UK to the USA would be subject to 10% tariffs. This is in addition to a 25% global tariff on cars, steel and aluminium imported into the USA. On Thursday last week, Business and Trade Secretary Jonathan Reynolds told Parliament that the UK is disappointed with the US tariffs and will continue constructive discussions with the US on a wider deal.
UK companies are being invited to give their views on what any future UK response should look like by providing feedback to questions asking them the average value of their US imports, the impact of any possible UK tariffs and how they would adjust to them.
The Government has also published an indicative list of the goods imported from the US that may be considered in a future UK response. The list does not include products in the wider public interest issues, such as medical supplies and military equipment.
The Business and Trade Secretary said “Our cool-headed, pragmatic approach means that talks with the US will continue to reflect our mandate to deliver economic stability, as we press the case for a trading relationship that supports businesses on both sides of the Atlantic, and reflects our Plan for Change and the best interests of the UK public.”
Ministers will continue to meet a broad range of businesses in the coming days to provide support and set out the Government’s priority of defending the interests of UK industry.
The four-week Request for Input will be open until Thursday 1 May and can be viewed here: https://www.gov.uk/government/publications/request-for-input-on-potential-uk-measures-in-response-to-us-tariffs

From 1 May 2025, all B2B (business to business) parcels travelling from Great Britain to Northern Ireland will need to have information submitted onto the Customs Declaration Service.
This is something your parcel carrier will typically handle; however, you will need to provide them with additional information so that they can do this. In some cases, you may also need to pay duty. If you are affected, we recommend you speak to your parcel carrier to find out how they will be handling this.
Eligible goods that move from a business in Great Britain to a business in Northern Ireland that are for sale to, or final use by, end consumers who are located in the UK will be covered by the UK Internal Market Scheme (UKIMS). This means that they will not need a full international customs declaration and will incur no duty.
This arrangement only applies to goods sent to businesses in Northern Ireland.
However, parcels sent to consumers (private individuals) from Great Britain to Northern Ireland can take advantage of alternative arrangements that mean there are no individual customs declarations, no duty and goods do not need to be presented to customs authorities.
Further guidance on the new arrangements can be found here. 

The government has announced a £20 million package that will help community land trusts, housing cooperatives and other community groups to build over 2,500 new homes in the next 10 years.
Some advantages of community-led housing projects include having local people locate and design new homes that meet the specific needs of their local area. It is also possible for community groups to access land and be given planning permission in situations where speculative developments cannot.
The investment is aimed at helping achieve the government’s wider homebuilding plans and is being provided at a scale that has not been done before. The funding should help community groups more easily access the housebuilding capital they need for projects.
Community-led housing can deliver much-needed affordable housing in their area and is used more widely in other countries in Europe. It is thought that this could be an under-utilised source of building affordable homes for communities.
The £20 million will be invested in a social finance fund that will be run by Resonance Limited, a social finance company that has experience in supporting the delivery of community-led housing. They will use the investment to attract up to £30 million in match funding from the private sector, local authorities and combined mayoral authorities. It is expected that Resonance will begin making direct investments in schemes over the next few weeks.
Housing and Planning Minister, Matthew Pennycook said: “This investment will help community-based organisations overcome barriers to housing delivery and will support the growth of the community-led housing sector.”
See: https://www.gov.uk/government/news/government-paves-the-way-for-local-people-to-build-more-homes

The Chancellor of the Exchequer, Rachel Reeves, delivered her Spring Statement last week in which she outlined the government’s economic plans, including spending decisions, tax policies and efforts to boost growth while managing public finances.
What did the statement tell us about public finances and the economy?
The Statement came on the back of the latest forecasts prepared by the Office for Budget Responsibility (OBR). The forecasts showed a more challenging outlook than was the case last autumn. The OBR cited falls in business and consumer confidence, rising European energy costs, increased government borrowing costs and global uncertainties from issues such as the war in Ukraine and trade tariffs.
As a result, the OBR have downgraded their forecast of GDP growth to 1% for this year. Last autumn they predicted growth of 2%, so this is a significant adjustment in their expectations. However, their projections of growth in the next four years have been upgraded, suggesting that they see the long-term more positively.
The OBR have forecast inflation to average 3.2% this year, up from 2.6% in their previous estimate. They predict that inflation will fall to 2.1% in 2026 and 2% in 2027.
The forecasts also showed that without intervention, public finances would fall short of the targets set at the Autumn Budget.
What has the chancellor done about it?
Much has been made in recent weeks of the Chancellor’s self-imposed stability and investment rules, and whether she will be able to maintain them in the face of the afore-mentioned challenges.
However, the Spring Statement confirmed the Chancellor’s commitment to the rules.  Governments often use these fiscal rules to provide credibility to financial markets.
This decision meant there was pressure on the Chancellor to either raise taxes or reduce spending to cover the forecast shortfall.
In good news for businesses, the Chancellor made no direct increases to taxes. She confirmed her intention to have only one major fiscal event a year and so further tax changes will wait until the 2025 Autumn Budget.
Instead, the Statement outlines a number of plans to reduce public spending, including welfare reforms, and reduced day-to-day spending in government departments. In addition, it is clear the Chancellor has adopted a policy of growing the economy and is looking at ways to promote that, including by supporting increased homebuilding activity. Economic growth is aimed at ‘putting more money in people’s pockets’, but it also indirectly boosts the revenues the government receives.
The OBR have confirmed that the policies outlined in the Spring Statement largely restore the public finance targets set last Autumn.
Will there be any effects on my business from policies announced in the Statement?
Here’s some quick highlights of measures that may affect your business.
Making Tax Digital
The Spring Statement confirmed that Making Tax Digital for Income Tax (MTD for IT) will be further extended to bring in sole traders and property landlords with income of £20,000 or more.
Read our separate article on MTD for IT to see how and when your business might be affected.
Business rates reform
The government has been consulting on longer-term measures to support high street businesses. The Spring Statement confirmed that an interim report on the future of the business rates system will be published in the summer. Further policy detail will follow in the autumn.
Additional clarity on R&D reliefs
Due to the complexity of the rules around R&D reliefs, many companies do not know at the point of making an R&D investment whether the costs will qualify for R&D relief. This can lead to no claim being made, or a claim being made that doesn’t qualify.
HMRC already offer voluntary advance assurances to businesses to help them have more certainty about their claim. However, this service is not commonly used.
The government is consulting on widening the use of ‘advance clearances’ to try and make them more useful and reduce errors and fraud. One aspect being considered is whether to make assurances mandatory in certain areas – particularly those where HMRC feels the risk of an incorrect claim is high. The consultation also considers whether there should be a minimum expenditure threshold before R&D relief can be claimed. In the past, a £25,000 threshold has been used.
Phoenixism to be tackled
‘Phoenixism’ is where company directors go insolvent to evade tax and write off debts owed to others, and then start a new business.
HMRC, Companies House and the Insolvency Service will be delivering a joint plan to better tackle those abusing the insolvency regime. This will include making more directors personally liable for the taxes of their company and increasing the number of enforcement sanctions.
One aspect that could affect newly formed companies is that HMRC may ask for an upfront payment of tax as security. Final thought
Some may have hoped the Spring Statement would bring some relief from the Employers NI changes due to go into effect in April, however the Spring Statement mainly focused on government policies related to public, welfare and defence spending. Announcement of any further tax changes will now wait until the 2025 Autumn Budget.
If you are concerned about how any aspect of the Spring Statement may affect you, please get in touch with us. We would be happy to provide you with personalised advice.

The new National Living Wage and National Minimum Wage rates will come into force from 1 April 2025.
There are also changes to the National Insurance employers pay that take effect from 6 April. For many businesses, the April payroll will represent a sizeable step up in labour costs.
As a reminder, here is a quick recap of the changes.
National Minimum Wage rates
The new minimum wage rates are as follows:
**Hourly Rate:** National Living Wage (21 and over) - £12.21 18-20 Year Old Rate£ -10.00 16-17 Year Old Rate - £7.55 Apprentice Rate - £7.55 Accommodation Offset - £10.66
Employers National Insurance changes
The percentage rate of Employers’ National Insurance (NI) that’s paid on an employee’s earnings increases to 15% (from 13.8%).
The threshold that an employee needs to be earning before any Employers’ NI is due drops to £5,000 a year. Previously this was £9,500.
If you use online payroll software, the new Employers’ NI rates should be automatically included. However, please check with your payroll software provider if you are not sure.
If you need any help using the new rates or calculating the amount of minimum wage that is due to a worker, please get in touch. We would be happy to help you!

As part of the changes being gradually introduced by the Economic Crime and Corporate Transparency Act (ECCT), identity verification is set to become a Companies House requirement.
This is one of a number of changes that the Act is making to better protect the data held at Companies House.
Who will be affected by identity verification?
Identity verification will ultimately become a compulsory part of incorporation and new appointments for new directors and persons with significant control (PSCs).
All existing directors and PSCs will also need to verify their identity as part of the annual confirmation statement filing, once Companies House make this mandatory. Anyone who files a document will also need to have their identity verified.
Mandatory identity verification is still being prepared for. However, individuals will be able to voluntarily verify their identity from 8 April 2025 using their GOV.UK One Login or via an Authorised Corporate Service Provider (ACSP).
Changes for third party corporate service providers
Last week also saw the introduction of a new service for third party corporate service providers, such as accountancy firms, to apply to register as an ACSP. Ultimately, third party providers will have to register to be able to file information and confirm they’ve verified the identities of their clients.
ACSPs have to be: -Based in the UK -Register with Companies House -Be registered with a UK supervisory body for anti-money laundering (AML) services -Retain records of identity verification checks.
We are pleased to say that we have registered as an ACSP and will be able to continue helping you with any incorporation, identity verification and document filing. If you need any company secretarial support, please feel free to contact us at any time.
See: https://www.gov.uk/government/news/companies-house-launches-registration-of-authorised-corporate-service-providers

The Bank of England held its regular meeting to discuss interest rates last Thursday.
They voted to hold interest rates at 4.5% as had been widely expected prior to the meeting.
The Bank targets an inflation rate of 2% and has already predicted that inflation will rise this year before dropping at the end of the year. However, inflation for the 12 months to January 2025 increased to 3.0% from 2.5% in December, a much higher and faster increase in inflation than had been expected.
The Bank have been taking a cautious approach to reducing the rate, and more cuts are expected during 2025. However, with the increases in the amount of national insurance paid by employers and national minimum wage rates taking effect in April, the Bank is having to tread a fine line between slowing price rises and risking damaging the economy by having rates too high.

The Health and Safety Executive are reminding employers about their responsibilities to protect workers from the health risks that come from working with display screen equipment (DSE), including PCs, laptops, tablets and smartphones.
The Health and Safety (Display Screen Equipment) Regulations apply to any worker that uses DSE on a daily basis for continuous periods of an hour or more.
For these workers, the Regulations mean that employers need to do a DSE workstation assessment and reduce risks such as by making sure breaks are taken.
The law applies not only to workers at a fixed workstation but also mobile workers, home workers and hot deskers. Home workers can be easily overlooked because you don’t regularly see their work environment.
As well as the assessments, employers are also required to provide eye tests if requested by the employee and to provide training and information.
HSE provides a guide on what employers need to do as well as a checklist of the things to consider when doing a workstation assessment.
See: https://www.hse.gov.uk/msd/dse/index.htm

HM Revenue and Customs (HMRC) have plans to use a callers voice as their password in an effort to speed up phone calls.
In systems that are being used by banks, a customer’s voice recording is turned into encrypted biometric data, which is then used when they call to clear security checks. HMRC are planning to trial a system like this.
HMRC has come under heavy fire for the poor handling of its customer service phone lines. According to statistics, for January through November last year, the phone line went dead on almost 44,000 callers who had been waiting 70 minutes.
The Public Accounts Committee in their January report concluded that HMRC was deliberately running a poor phone service to try and get taxpayers to use online help instead. Last year, HMRC announced that they were closing their phone line altogether between April and September. However, they had to reverse that decision the next day after a backlash.
It seems that efforts are now being made to modernise the phone service and make it more efficient.
If you are having difficulty contacting HMRC or would like help in dealing with them, please call us and we would be happy to help you!
See: https://www.bbc.co.uk/news/articles/c07z5d0v79ko

Last week, the tax minister responsible for HM Revenue and Customs (HMRC), James Murray, delivered a speech marking the 20th anniversary of HMRC. Previously, the UK’s tax authority was known as Inland Revenue.
During the speech he highlighted some simplifications that are planned. Of particular interest was the announcement of plans to increase the Income Tax Self Assessment (ITSA) reporting threshold for gross income from £1,000 to £3,000.
Who would benefit from this change?
This threshold would apply to anyone with a self-employed trading income, however it can be particularly useful to those with a side hustle. A side hustle is an income-generating activity that is pursued alongside a full-time job or main source of income.
Some have a side hustle for trading clothes online, doing some dog-walking or gardening, or creating online content. Currently if income from these activities exceeds £1,000 then it is likely that a tax return needs to be completed and filed.
However, if the threshold is increased to £3,000 it is estimated that up to 300,000 people will no longer need to complete a tax return. This could be very welcome news for some, although it is important to remember that the £3,000 threshold relates to the requirement to submit a self assessment tax return – the £1,000 trading allowance will not change. Someone with a side hustle that generates £1,200 of income would need to report their trading income through a new online service and will pay tax on the £200 after the £1,000 trading allowance has been deducted.
When will this happen?
Unfortunately no definite date has been mentioned, only the promise that it will happen “within this parliament”. So, we may have a few years yet.
If you would like to know whether you need to complete a tax return for your self employed business or side hustle please get in touch. As tax experts we can help you minimise any tax you owe and would love to help you!
See: https://www.gov.uk/government/news/boost-for-side-hustlers-as-300000-people-to-be-taken-out-of-tax-returns-government-announces#full-publication-update-history

A new deal for GPs has been agreed between the government and the British Medical Association (BMA).
Proposed reforms that were accepted by the BMA include an overall funding uplift of £889 million for the 2025/26 GMS contract. This represents a 7.2% boost to the contract, which is higher than the increase to the NHS budget as a whole. However, the BMA’s acceptance of the funding uplift was given on the proviso that the government commits to renegotiating a completely new national contract within this parliament. They are looking for confirmation of this in writing by mid March 2025.
The increase includes:
-Almost £800 million national funding into the ‘Global Sum’ to help cover the rising costs of staff, premises and patient list growth.
-The Primary Care Network rules will be relaxed, allowing individual practices to decide which roles to hire using their additional staff budgets rather than having this decided centrally.
-An increase to routine childhood vaccination fees.
In addition to the £889 million uplift, there will also be an £80 million investment for a new Enhanced Service that compensates GPs for advice and guidance requests when unsure about making a referral to hospital. This funding will allow doctors to liaise with specialist consultants and help to avoid people being added to waiting lists unnecessarily.
The BMA sees the new contract as an important first step for GPs as they aim to address underfunding over the next few years.
See: https://www.bma.org.uk/bma-media-centre/bma-accepts-202526-contract-for-gps-in-england-as-a-starting-point

The Future of Roads Minister, Lillian Greenwood, has confirmed that the plug-in van grant will be extended for another year.
The plug-in grant means that businesses can obtain grants of up to £2,500 when buying an eligible small van up to 2.5 tonnes and up to £5,000 for an eligible larger van up to 4.25 tonnes.
The grant is made available through the dealer or manufacturer as a discount on the purchase price when the van is purchased. So, there is no need for each purchaser having to go through a grant application themselves.
The government is also removing the requirement for additional training that is currently required for zero emission vans but not petrol or diesel ones.
Zero emission vehicles also carry some attractive tax advantages. If you are looking at replacing vehicles and would like help to know what the end costs are for you, please get in touch. We would be happy to help you!
See: https://www.gov.uk/government/news/120-million-to-roll-out-more-electric-vans-taxis-and-motorbikes

News reported last week said that the Chancellor has put together draft plans for spending cuts to welfare and other government departments.
At the time of the 2024 Autumn Budget, the Office for Budget Responsibility (OBR) said that there was a £9.9 billion buffer available against the Chancellor’s own self-imposed borrowing rules.
However, the OBR’s spring forecast seems likely to show that this buffer has disappeared due to the events of the last few months, including trade tariffs, the war in Ukraine and higher inflation and borrowing costs.
It could be argued that an alternative strategy would be for the Chancellor to amend her borrowing rules. However, to do so would risk losing credibility with the financial markets and the Chancellor has described her rules as “non-negotiable.” So, it seems that spending cuts are now likely, mainly to welfare payments.
How could welfare cuts affect my business?
Such cuts are likely to have ripple effects on small businesses, impacting both their customers and employees. Here are some key ways that these cuts could affect your business:
1\.   Reduced consumer spending: If welfare payments are reduced, lower-income households will have less disposable income, leading to decreased sales for businesses that depend on everyday spending, such as shops, cafes, and tradespeople. It can also lead to less demand for non-essential goods and services, such as entertainment, beauty treatments, and leisure activities.
2\.   Workforce challenges: Employees who may also rely on welfare support, such as Universal Credit top-ups or childcare subsidies, could be affected by cuts. This could lead to increased financial strain for them that leads to reduced productivity, higher stress levels, and even absenteeism. It may also mean difficulties in retaining staff if they seek higher wages elsewhere or struggle to afford travel and childcare costs.
3\.   Higher pressure on business owners: Less support may be available for self-employed individuals who rely on welfare payments during periods of fluctuating income. There may also be increased pressure to raise wages for affected employees, potentially squeezing already tight margins.
4\.   Local economy knock-ons: Local economies shrink when people have less money to spend. For businesses that rely on strong community support, particularly in areas with high welfare dependency, this can present challenges.
5\.   Impact on Business-to-Business (B2B) services: If welfare cuts lead to a slowdown in consumer spending, other small businesses that provide services to local companies (such as marketing, IT, and consulting) could also suffer as their clients tighten budgets.
What can you do?
Some basic steps you could consider include:
-Diversifying your customer base to reduce reliance on low-income consumers.
\- Explore alternative revenue streams, such as online sales or subscriptions.
-Support employees through flexible working arrangements or other benefits to help offset financial strain.
While government decisions on welfare are often made with national budgets in mind, businesses are often on the front line of these changes. While this can create uncertainty, with the right planning and business strategy, you can take proactive steps to protect and even strengthen your business during challenging times.
Staying ahead of economic shifts is key to long-term success. If you’d like expert guidance on how to navigate the impact of welfare spending cuts on your business, get in touch with us today. We’d be happy to help you!
See: https://www.bbc.co.uk/news/articles/c1lpjqg2mp5o

The Chancellor Rachel Reeves met recently with major financial firms at Canary Wharf, encouraging them to invest in emerging markets to boost Britain’s economy.
A key initiative launched at the meeting was the “London Coalition on Sustainable Sovereign Debt,” which aims to improve debt financing in developing countries by bringing together private sector and government stakeholders.
This Coalition is expected to strengthen trade ties, promote economic growth and position London as a global leader in development finance.
As a result of this initiative there may be new opportunities for British businesses, particularly in areas such as financial services.
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The latest figures show that the government had a surplus of £15.4 billion in January. This represents the difference between the tax it receives and what it spends.
Although this is the highest level of surplus for a January since records began over 30 years ago, it is lower than the £20.5 billion that was forecast. The Office for Budget Responsibility (OBR) have said that the shortfall was mainly due to tax receipts being lower than expected and debt interest becoming more expensive.
The chancellor has set two fiscal rules: (1) day to day government spending is to be funded by tax income and (2) debt needs to be falling as a share of national income by 2029/30.
Although the OBR said that the measures announced in the Autumn Budget would provide £9.9 billion of headroom, this wriggle room may have been eaten up over the last few months.
This means that speculation continues on whether Rachel Reeves will need to raise taxes or cut spending when she announces her Spring Forecast on 26 March 2025.
We will keep you posted on any developments that come from that announcement. If you would like advice or an estimate on how recent tax changes have affected you, please contact us and we would be happy to help you.
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Pulpex, a sustainable packaging company, has received £43.5 million from the National Wealth Fund in exchange for an equity share of the business. The Scottish National Investment Bank is also investing £10 million with a further £8.5 million coming from existing investors.
This investment will help Pulpex build its first commercial-scale manufacturing facility near Glasgow. You might wonder why there is so much interest in Pulpex!
**Environmentally friendlier packaging**
Pulpex has developed a fibre-based bottle that is manufactured from sustainably-sourced wood pulp and that can be recycled just like paper and card. With a lower carbon impact than the glass or plastic packaging that is currently used, this represents a positive contribution to the environment.
The new Glasgow plant will produce 50 million bottles a year and will be the start of the UK’s first fibre-bottle supply chain.
To illustrate the potential for growth, 38.5 million plastic bottles are used each day in the UK, and it is estimated that 16 million of these don’t end up being recycled.
**What’s the wider take-home?**
In today’s world, environmental consciousness is no longer just an ethical choice – it’s a strategic advantage.
Here’s a run-down of some of the ways that prioritising sustainability can benefit your business.
1. **Cost savings and efficiency:** Energy-efficient lighting, water conservation measures, and waste reduction initiatives can reduce your utility bills and potentially the cost of operating your business. Tax incentives and grants can also be available for making greener choices. One example would be the use of electric vehicles. 2. **Improved brand reputation:** Customers are increasingly favouring businesses that demonstrate a commitment to sustainability. A business that is known for its environmentally friendly practices can enhance its brand image and attract more loyal customers. For instance, you could use eco-friendly packaging or support green initiatives to build trust and credibility. 3. **Increased competitiveness: **Customers that prioritise sustainability are often willing to pay a premium for eco-friendly products and services. So, a further benefit of integrating green practices into your business is that you may be able to differentiate yourself from your competitors and tap into a growing market of environmentally conscious buyers. In fact, failing to adapt might mean you run the risk of losing some of your market share to greener alternatives. 4. **Reducing risk:** Environmental regulations are becoming stricter, both in the UK and worldwide. By proactively implementing sustainable business practices you can stay ahead of regulations and reduce any legal risks of not complying. 5. **Attracting and retaining talent: **Employees, particularly those who are younger, prefer working for companies that fit with their values. Committing to environmental responsibility can work in your favour in attracting top talent, improving employee morale and reducing staff turnover rates. 6. **Long-term business sustainability:** If your business relies on finite resources, it’s inevitable that at some point in the future it will face challenges. So, by embracing renewable solutions you will be positioning your business for long-term success. Considering the long-term plans for your business now will help you to keep the change incremental and manageable. 7. **Access to new business opportunities:** As can be seen by the investment in Pulpex, governments and larger-scale investors are pushing for greener supply chains. This means that businesses with strong sustainability credentials may gain access to new contracts, partnerships and funding opportunities. Many large businesses now require their suppliers to adhere to environmental standards, which makes sustainability a key factor in securing B2B relationships.
**Conclusion**
News of the investment in Pulpex demonstrates that adopting environmentally conscious practices is not just about corporate responsibility – it’s a smart business move. While the possibilities available vary from business to business, thinking about and prioritising sustainability for your business can help you be better positioned for growth and resilience in the future.
If you would like help accessing finance for your business idea, please give us a call. We would be happy to help you.
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Beginning last week (17 February), Local Authorities were able to begin awarding a 40% reduction in business rates bills to film studios. The tax relief is aimed at boosting the film industry in the UK and contributing towards more box office hits being made.
The creative industries sector employs 2.4 million people and provides £124.6 billion to the UK economy. The government hopes to boost both these figures by providing the relief. The Film Studio Business Rates Relief will be available to eligible studios in England until 2034. Where applicable, it can be backdated to 1 April 2024.
Eligible film studios should not need to apply for the relief, but should be awarded it automatically by their Local Authority.
This is one of several reliefs available or becoming available to the film and TV sector in the UK. Already available is the Audio-Visual Expenditure Credit (AVEC) that provides a tax credit of 34% on UK production costs on a film or high-end TV programme, increasing to 39% on the production costs for an animation or children’s TV programme.
From 1 April 2025, film and high-end TV companies will be able to claim a 39% credit on their UK visual effects costs. Also, the Independent Film Tax Credit will become available. This is for eligible films that have a budget of less than £15 million and will allow for claiming an enhanced 53% rate.
The film and TV industry is seen as significant contributor to the UK economy with the potential for further growth.
If you need help with understanding what tax reliefs are available for your film or TV production, please give us a call at any time. We would be happy to help you maximise the reliefs available to you.
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Latest figures released by the Office for National Statistics (ONS) show that average wages are continuing to grow faster than inflation. After adjusting for consumer price inflation (CPI), wages rose 3.4% between October and December 2024 when compared with the same period in 2023.
Unemployment figures also appear to be encouraging, with the UK’s unemployment rate remaining at 4.4%. However, the ONS has cautioned that the response rate to its survey was low. So, these figures may not reflect the true position.
**What will happen over coming months?**
With the upcoming increases to national minimum wage and employers national insurance, it seems likely that pay growth will reduce over coming months. Many businesses are reporting that they plan to reduce their workforce due to the increased costs.
Increasing wages can also affect the Bank of England’s decision when they set the base rate. When wages grow this means more disposable income in the economy which tends to increase demand and therefore prices. These figures may therefore make the Bank cautious of making another rate cut too soon.
If you need help with budgeting increased wage costs from April, or to look at how your pricing could be adjusted to cover the increases, please get in touch. We would be happy to help you negotiate these changes so that your business continues to grow and thrive.
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Inflation figures for January 2025 were released last week and showed a surprising jump to 3.0%, up from 2.5% in December.
The Office for National Statistics (ONS) reported that the largest upward contribution to the change came from transport, and food and non-alcoholic beverages.
The upward pressure in transport costs came from air fares and motor fuels. Traditionally air fares increase in December before falling in January, however January 2025 saw the smallest January fall since January 2020.
Many businesses are feeling the pinch of increasing costs and news that inflation is rising may not be good news. Some economists believe that the rise will not affect the Bank of England’s plans for the interest base rate – the Bank has already forecast that inflation will increase to 3.7% later this year. However, regardless of this, inflation can squeeze profit margins and put a strain on cash flow.
However, inflation doesn’t have to derail your business. Read on to see how with the right strategies you can mitigate the impact and even uncover new opportunities. Here are some key steps you can take to navigate inflationary pressures.  
**Review pricing regularly**
During periods of rising inflation, it’s essential to review your pricing strategy. Ensure that your prices are reflecting the increased costs of goods and services.
This can be easier said than done because of not wanting to upset your customers. So, one strategy could be to look at smaller, incremental increases rather than implementing one large hike.
Also, be transparent about the reasons behind any changes – many customers understand inflationary pressure and appreciate it when they are clearly communicated with.
**Focus on efficiency**
Look for areas within your business where you can improve efficiency. Perhaps you have opportunities to eliminate areas of wastage, or there are processes that could be automated, or you might be able to renegotiate contracts with your suppliers.
As an example, switching to digital invoicing or using cloud-based software may reduce your administrative costs. Small wins can be worthwhile as each small saving adds up over time.

The UK government has intensified its crackdown on illegal working, with January 2025 seeing record enforcement activity. Home Secretary Yvette Cooper announced these efforts as the Border Security, Asylum, and Immigration Bill returned to Parliament last week.
Key highlights
Here are some key highlights of the recent activity:
-828 premises were raided in January (+48% on the previous January), which led to a total of 609 arrests (+73%).
-Visits show that restaurants, nail bars, and car washes are seen as high-risk sectors.  
-Since 5 July 2024, illegal working visits and arrests have increased by 38% compared with the previous year, with 1,090 civil penalty notices being issued by the Home Office in that time.
What are the takeaways for businesses?
Ensuring your employees have the legal right to work is more critical than ever. Employers can use the Home Office’s guidance on checking a job applicant’s right to work. A proactive approach to vetting staff can save significant headaches down the line.
Now is a good time to review your recruitment processes and make sure you are complying with immigration laws. It’s particularly important to be wary of informal hiring or failing to conduct due diligence, since it’s clear that the authorities are ramping up enforcement.
Ethical employment practices are not just a legal necessity but also a business advantage. Businesses that treat their workers fairly and operate within the law enhance their reputation and contribute to a fairer marketplace. In contrast, those who cut corners risk financial penalties and long-term reputational damage.
In view of the increased enforcement activity, being compliant with the immigration laws will help to protect your business and its reputation.
See: https://www.gov.uk/government/news/uk-wide-blitz-on-illegal-working-to-strengthen-border-security

Following the reduction in the Bank of England base rate, HM Revenue & Customs (HMRC) have confirmed that their interest rates will be reduced accordingly.
Late payment interest will reduce to 7% from 7.25%. Repayment interest – paid on tax repayments – will be reduced to 3.5%.
The change will come into effect from:
-17 February 2025 for quarterly instalment payments.
-25 February 2025 for non-quarterly instalments payments.
See: https://www.gov.uk/government/news/hmrc-late-payment-interest-rates-to-be-revised-after-bank-of-england-lowers-base-rate--2

The government announced major plans last week to modernise the house buying and selling process. The reforms centre on digitalising and making property and identity data available electronically. This will allow mortgage companies and surveyors to have information within easy reach.
It is thought that these changes will help to avoid surprises being encountered late in the process, with the waste of time and money that goes with that.
In Norway, property transactions complete in around one month and the reforms take account of learning about how this has been achieved.
HM Land Registry (HMLR) is involved in the changes and the next step is a 12-week project to identify the design and implementation of agreed rules so that the data can be easily shared. HMLR will also be working with councils over coming months on how to open up more of their data and make it digital.
For estate agents and surveyors these reforms could make a big difference to the amount of time and money lost in sales falling through.
See: https://www.gov.uk/government/news/home-buying-and-selling-to-become-quicker-and-cheaper

Legislation was laid before Parliament last week confirming that the new National Living Wage and new Minimum Wage rates will take effect from 1 April 2025.
While many businesses are feeling and have expressed concern about the increases, the sight of the legislation suggests that no reprieve is in sight.
As a reminder, the National Living Wage will increase to £12.21 from 1 April. This is a 6.7% increase and will be worth £1,400 a year to an eligible full-time worker.
The National Minimum Wage for 18-20 year olds will increase to £10.00 an hour. For an eligible full-time worker, this will work out to an extra £2,500 a year.
An impact assessment published on the same day the legislation was laid indicates that these increases will put around £1.8 billion into the pockets of workers over the next six years.
While these measures will benefit many workers, you may be concerned about the anticipated cost of this increase causing problems for your business.
If you need help costing out what the increases will cost you and advice on the potential strategies you have to manage these costs, please get in touch and we would be happy to help you!
See: https://www.gov.uk/government/news/april-pay-rise-set-to-boost-pockets-of-over-3-million-workers

HM Revenue and Customs (HMRC) have revealed that 37,000 people have plugged gaps in their National Insurance (NI) record since last April, boosting the amount of State Pension they will receive when they reach retirement age.
The amount of State Pension you will receive is based on how many completed years you have in your NI record. Currently it is possible to review your record going back to 2006, and where there is a gap, you can contribute to plug the gap and ensure that you maximise the amount of State Pension that will be available to you.
There is limited time to be able to do this though. From 6 April 2025, you will only be able to make voluntary NI contributions for the previous 6 tax years. This means there is now less than two months left to be able to plug any gaps that go back to 2006.
HMRC have an online service that allows you to check and view any gaps in your NI record, calculate the difference any payment will make to your State Pension and then make a payment for the years you would like to top up. If you would like any help in finding out whether you have any missing years and how much benefit you could get from a top up, please contact us and we would be happy to help you!
See: https://www.gov.uk/government/news/35-million-added-to-state-pension-pots

The Bank of England reduced their base rate to 4.5% last week, as had been widely expected in the days leading up to the decision.
The decision was made by a 7-2 majority. The minority of two members were looking for the rate to be reduced to 4.25%.
In announcing their decision, the Monetary Policy Committee (MPC) outlined their thoughts on the economy. Here are some highlights.
Inflation forecasts
The Consumer Price Index (CPI) was 2.5% for the last quarter of 2024. The Bank expects CPI inflation to increase to 3.7% by autumn 2025 due to higher global energy costs and regulated price changes.
However, the MPC also feel that pressures on inflation at a domestic level are moderating and will wane further as 2025 progresses. So, they expect CPI inflation to fall back to 2% from the end of 2025.
Growth forecasts
The Bank expects GDP growth to pick up from the middle of this year. They believe that the economy’s ability to produce goods and services has grown more slowly than previously estimated. So, while they’ve noted a slowdown in demand, they judge that only a small amount of unused capacity has been created in the economy.
These and other factors led the MPC to reduce the rate to 4.5%.
Will there be future rate cuts?
Looking forward to future potential rate cuts, the MPC has said “a gradual and careful approach to the further withdrawal of monetary policy restraint is appropriate.” They stressed that there are ongoing uncertainties around demand and supply in the economy.
The MPC also highlighted the global economic uncertainty and a pickup in financial market volatility due to the recent announcements in the US on trade tariffs and subsequent retaliatory measures. This is something they continue to monitor.
To review the Monetary Policy Summary in full, see: https://www.bankofengland.co.uk/monetary-policy-summary-and-minutes/2025/february-2025

The Prime Minister and Chancellor met with business leaders last week and unveiled proposals to give occupational defined pension schemes more flexibility.
Restrictions will be lifted on how well-funded, occupational defined benefit pension funds that are performing well will be able to invest their surplus funds. It is hoped that this will pave the way for future growth across the economy.
Currently, around 75% of such pension schemes are in surplus amounting to £160 billion. However, restrictions have meant that businesses have found it difficult to invest these funds, even when both trustees and sponsors want to do so.
The proposals will allow trustees, if they agree, to share a portion of the scheme surplus with a sponsoring employer. The employer can then choose to invest the funds in its core business and/or provide additional benefits to members of the pension scheme.
Jonathan Lipkin, Director of Policy, Strategy & Innovation at the Investment Association said: “With the right guardrails in place, the government’s proposals could help channel more funding into the economy, by enabling schemes to invest more widely and take on greater risk, while allowing for members to receive an uplift to pension benefits.”
See: https://www.gov.uk/government/news/pension-reforms-to-go-further-to-unlock-billions-to-drive-growth-and-boost-working-peoples-pension-pots

The new economic secretary to the Treasury, Emma Reynolds, has said that there are no plans to regulate businesses, whether big or small, to compel them to accept cash.
Concern has been raised about various shops and service firms not accepting cash and therefore excluding those who rely on cash to pay for things. While some countries appear to be planning to put rules in place that require essential services to accept cash, the UK does not seem as though it will be following suit.
Cards have been used for many years in the UK, with mobile payments by smartphone now becoming increasingly popular. 72% of 16-24 year olds now regularly use mobile payment services. This increase is reflected across all age groups, with 27% of those aged 45-54 now also regularly using this method.
However, cash still remains a popular choice for making payments. Cash was used in a fifth of shop transactions last year. After decades where use of cash has been shrinking, this is the second year in a row where cash use in shops has increased. It seems that many find that using cash helps them to budget better.
Should you accept cash?
The answer to this question really depends on who your customers are. If your customers are largely older or more value conscious, then it seems that these types of customers are more likely to rely on paying with cash. If you don’t accept cash, you may risk losing sales.
On the other hand, if you mainly sell to younger, more digital savvy customers, not accepting cash may have little effect on sales. This may help you save the costs and security issues involved in handling cash. See:  

The Chancellor of the Exchequer, Rachel Reeves, delivered a speech last week that served as an update on the government’s plans for delivering economic growth.
The plan largely focused on developments proposed around Oxford and Cambridge as well as a third runway at Heathrow. Here are some of the highlights from the speech.
Oxford and Cambridge Growth Corridor
The Chancellor highlighted the potential growth available in the area between Oxford and Cambridge and feels this could become Europe’s answer to Silicon Valley. Currently, slow transport links and a lack of affordable housing have been identified as holding this potential back.
Improvements to rail transport links with East-West Rail and making Tempsford a mainline station were announced. There are also plans to upgrade roads between Milton Keynes and Cambridge to improve travel times.
A new Cambridge Cancer Research Hospital is being prioritised, and there are plans for a new Fens Reservoir to serve Cambridge and South East Strategic Reservoir near Oxford.
The Chancellor also announced that the Environment Agency have removed their objections to a new development in Cambridge that will provide 4,500 new homes together with schools and business premises.
A new AI Growth Zone in Culham is intended to speed up planning approvals for rapid build-out of data centres. And Cambridge University are planning a new flagship innovation hub in the centre of Cambridge, partly to attract investment and partly to help with building an innovation-focused community.
Third runway at Heathrow
While a third runway has already been previously approved, plans are stepping up to bring this to reality. The government is inviting proposals to be brought forward by the summer and will then take forward a full assessment through the Airport National Policy Statement.
The Chancellor reported that a third runway could increase GDP by 0.43% and create 100,000 jobs.
Other highlights
The Chancellor mentioned other developments as follows:
-Approach to trade: The government will continue to work on building economic relationships with the United States, the EU, and faster-growing economies around the world – China and India were mentioned.
-Employment system reforms: The Secretary of State for Work and Pensions will be setting out reforms to the welfare system before the Spring Statement. And an Immigration White Paper will bring forward proposals to bring overall levels of net migration down, while the government also looks at visa routes for very highly skilled people.  
-Pensions system reforms: A final post-consultations report on the creation of larger consolidated funds will be published in the spring.
-Regulatory system: Following discussions with Heads of the largest regulators, an action plan on how they can be more agile and responsive to businesses will be published in March.
-Planning reforms: The Planning and Infrastructure Bill, to be introduced this Spring, will reduce environmental requirements placed on developers when they pay into the nature restoration fund. Measures will also make it easier to develop new infrastructure like nuclear power stations, trainlines and windfarms.
-Investment: Further investments by the National Wealth Fund in Connected Kerb and Cornish Metals were announced. A refreshed Carbon Budget Delivery Plan is planned for publication later this year as Net Zero is seen as an industrial opportunity.
-Infrastructure: Offshore windfarms in areas like East Anglia and Yorkshire could become a reality, and the government plans to work with the private sector to deliver a Lower Thames Crossing that will improve connectivity. Developments to Old Trafford, South Yorkshire Airport and East Midlands Airport were also discussed. The government is also moving forwards with the Wrexham and Flintshire Investment Zone, and the potential of unlocking land around stations is seen as a good way to improve infrastructure in Manchester and Leeds.
To read the Chancellor’s speech in full, see: https://www.gov.uk/government/speeches/chancellor-vows-to-go-further-and-faster-to-kickstart-economic-growth

As the UK tax year-end approaches on 5 April, it’s an excellent time for you to review your business finances and explore tax planning opportunities, particularly if you are self-employed. Tax planning can help you to reduce tax liabilities, boost your cash flow and put you in a stronger financial position.
Let’s explore some areas that you could think about.
Capital allowances
One key area to consider is capital allowances. If your business invests in equipment, vehicles, or machinery, you may be eligible for tax relief under the Annual Investment Allowance. Reviewing these purchases before the tax year-end can help make sure that you don’t miss out on a valuable deduction.
Pension contributions
Another potential benefit lies in pension contributions. By contributing to employee or director pensions before the tax deadline, you can potentially lower your taxable profit while promoting loyalty in your staff.
R&D activities
If your company has engaged in innovation, you could be eligible for tax credits under the Research and Development Tax Relief scheme. These credits can provide a significant boost.
Proactive planning now can save headaches later and uncover opportunities to improve your bottom line. Why not give us a call to make sure you’re taking full advantage of the options available to you?

A report released by the Public Accounts Committee (PAC) has further criticised HM Revenue & Custom’s (HMRC) phone service. It found that nearly 44,000 customers were cut off without warning after being put on hold for more than an hour in the first 11 months of last year.
Having criticised HMRC’s phone service last year, the committee said the service was worse again since it’s last report. It said HMRC had “damaged trust in the tax system” as a result.
The chair of the PAC, Geoffrey Clifton-Brown MP, has suggested that HMRC is degrading the service as a matter of policy.
HMRC has refuted this, with HMRC chief executive Jim Harra saying that the tax authority has made huge improvements to their service standards. He cited a cut in call waiting times of 17 minutes since April.
In the 2024 Autumn Budget, the Chancellor committed to investing £1.7 billion over the next five years to recruit an additional 5,000 HMRC compliance staff and 1,800 HMRC debt management staff. The report perhaps just confirms that this investment is needed by HMRC.
If you are frustrated by dealing with HMRC or would like help with any tax matter, please give us a call. We would be happy to help you!
See: https://www.bbc.co.uk/news/articles/cn4zjnd2llyo

Recent economic developments have sparked concerns among UK businesses. Government borrowing costs surged in December to their highest levels in four years, and this has drawn heavy criticism of the Chancellor’s fiscal strategy.
The BBC reported that the gap between government spending and tax revenue widened to £17.8 billion in December, compared with £10.1 billion a year earlier. This was notably higher than the Office for Budget Responsibility (OBR)’s forecast of £14.6 billion.
Adding to this, interest on government debt reached £8.3 billion in December, the third highest on record for the month since 1997. While yields on 10-year gilts have since retreated to 4.5% (they peaked at 4.9%), the situation underscores the volatility of financial markets.
What do these developments mean for your business, and how can you respond to any challenges ahead? Let’s explore.
The ripple effects on businesses
Rising borrowing costs often signal trouble for businesses seeking financing. Elevated gilt yields – which influence corporate borrowing rates – could result in higher interest payments on loans. If your business relies heavily on debt financing, this means tighter budgets and less room for growth.
Another concern is the potential for reduced government spending. As more public funds are directed towards servicing debt, the government may cut back on infrastructure projects, public services, or business support schemes. This could directly impact you if you depend on public sector contracts or subsidies.
Inflationary pressures add another layer of complexity. Predictions of rising US inflation due to tariffs under Donald Trump’s administration could disrupt global supply chains. This may mean that the cost of imported goods and raw materials could go up. While the latest UK figures show that inflation here has dropped back again, this international factor could put pressure on your profit margins, especially if they are already tight.
It's worth noting too that rising borrowing costs aren’t unique to the UK government. France, Italy, Spain, and Germany are also experiencing pressures. Differences in how these nations respond to these pressures could further affect the financial and economic environment.
Navigating the challenges
To stay ahead, you may need to review your financial strategies. If you have existing debt, you might consider refinancing to lock in lower interest rates while they are available, if these look likely to increase. Diversifying your funding sources, for instance by inviting equity investment, might be a way of reducing your reliance on traditional loans.
Rising costs have been with us for some time and cost management continues to be a key focus. Can you streamline the way you do things to trim expenses without compromising quality or reducing customer satisfaction? Building resilience is important. Where you can maintain healthy cash reserves, this will help you to weather economic fluctuations.
Some think the pressure on the Chancellor might result in an adjustment to tax and spending measures in the Spring Statement in March. This could potentially provide some good news to businesses if taxes are reduced in some way. However, the government’s strategy appears to be to promote growth as the way forward. This may mean that measures are introduced that could help your business grow. It may pay to be alert to government proposals.
Adapting for the future
Ultimately, staying informed and flexible will be key. While the current economic environment looks challenging, staying agile and proactive can help you to find opportunities amid the uncertainty.
If you would like help reviewing your financial strategies or need a cost audit, please contact us at any time. As experienced business advisers, we would be happy to help you position yourself for future growth.
See: https://www.bbc.co.uk/news/articles/cpwxzpqrnjko

The Renters’ Rights Bill returned to Parliament for debate last week and included some new changes.
Cap on advance rent payments
A new rule is proposed that will cap advance rent payments at one month’s rent. Currently, there is no limit on the upfront rent a landlord can ask for. This is being used to exploit potential tenants in some places and particularly disadvantages renters on lower incomes.
Landlords will still be able to take a security deposit of up to 5 or 6 weeks rent alongside a one month’s rent in advance.
Safeguards for bereavement
Another proposed change will mean that bereaved guarantors will no longer be forced to pay rent for the rest of the tenancy where a loved one has died. This will make it easier to end a tenancy agreement in unforeseen and tragic circumstances.
Reducing early commitments
Currently students can feel pressured to sign a lease many months in advance. Therefore, it is being proposed that students cannot be locked into an agreement more than six months in advance of moving in.
Further changes proposed include closing potential loopholes in rent repayment order and using fees paid by landlords to directly fund the creation and work of a private rented sector Ombudsman.
See: https://www.gov.uk/government/news/new-law-to-protect-renters-one-step-closer-to-becoming-a-reality

The government launched an AI opportunities action plan last Monday that aims to ramp up AI adoption across the UK.
The Secretary of State for Science, Innovation and Technology, Peter Kyle, believes that the plan shows how the application of AI can be shaped within a modern social market economy.
The plan details how the government intends to lay the foundations that will further enable AI by:
1\.   Building sufficient, secure and sustainable AI infrastructure: AI requires a large amount of computational power that comes from large and complex computers in data centres.
2\.   Unlocking data assets in the public and private sectors: AI learns from data, so unlocked data sets, including scientific data sets, that contain data that isn’t currently used in training AI models could be important.
3\.   Training, attracting and retaining the next generation of AI scientists and founders: To meet anticipated future demand, tens of thousands of additional AI professionals could be needed.
It seems that the plan’s publication has gone down well with business and investors. Within 48 hours of publication, it was reported that more than £14 billion worth of investment into the UK and thousands of jobs had been confirmed.
Does AI have a significant part to play in our future and the growth of the UK economy? Time will tell but there certainly seems to be a will to find out.
To review the plan in full, see:
https://www.gov.uk/government/publications/ai-opportunities-action-plan/ai-opportunities-action-plan#lay-the-foundations

The latest figures reveal that UK inflation fell slightly in December, down to 2.5% from 2.6% in November.
While the drop is marginal, however it has sparked discussion in the press as to whether this easing of inflation might prompt the Bank of England to consider cutting interest rates when it meets next month. However, there is also talk of many businesses raising prices over coming months due to payroll cost increases set for April.
Here, we explore some of the key issues you should be aware of.
Potential interest rate cuts: A relief for borrowers?
The fall in inflation raises hopes that further interest rate cuts may be on the horizon. If you already have a loan or are considering borrowing for expansion, a potential reduction in interest rates could lower financing costs and improve cash flow.
An interest rate cut does not necessarily have to have materialised before lenders reduce their rates. Confidence in the financial markets over future interest rate movements can work in your favour.
However, it’s important to remain cautious - any rate cuts are speculative at this stage and dependent on further economic data. The Bank of England have already demonstrated a cautious approach to reducing rates, and the inflation rate is still above their target of 2%.
You should prepare for multiple scenarios, and it may be an idea to seek advice so that you can best manage your business’ debt strategically.
Upcoming cost pressures in April
While lower inflation is welcome news, costs will still be rising in 2025. Payroll will particularly be affected.
The National Living Wage and National Minimum Wage are set to rise in April, which will directly impact payroll costs, particularly if your business is in the hospitality, retail, and care sectors.
In addition, as an employer, the increased Employer National Insurance Contributions rate and reduced threshold will add to your overall cost burden and further squeeze your profit margins.
If you are already grappling with thin margins, these increases could put a severe strain on your business. Now is the time to reassess your cost structures, consider your pricing strategy, improve efficiency, and explore ways to remain competitive.
What should business owners be thinking about?
1\.   Cash flow management: When costs are changing, understanding your cash flow is critical. Accurate forecasting will help ensure your business can meet its obligations while investing for the future.
2\.   Pricing strategy: Raising prices is one way to deal with increased costs. Passing costs on to customers is always a delicate balance, but strategic planning can minimise problems.
3\.   Efficiency improvements: Investing in technology or streamlining processes can help offset rising costs. For example, automation tools could reduce administrative expenses and improve productivity.
4\.   Workforce planning: You should plan for the financial impact of wage increases by knowing how much extra you are likely to pay. Reviewing your staffing levels may also identify areas where you could save money.
The fall in inflation is a positive development, but businesses cannot afford to become complacent. With wage increases and higher employer contributions on the horizon, planning and preparation are key.
If you need help with financial planning and cash flow forecasting, cost management and efficiency reviews, wage planning or tax and national insurance advice, please get in touch. By working with us, you’ll gain the insights and strategies needed to navigate these changes confidently and position your business for long-term success.

Artificial intelligence (AI) continues to bring benefits across many industries, including healthcare diagnostics and consumer technology. However, as its applications expand, so do concerns about its accuracy and potential for misuse. Two recent examples—the use of AI in detecting ovarian cancer and its controversial implementation in summarising news—illustrate both the transformative potential and the risks of AI.
AI in early cancer detection
Ovarian cancer is notoriously difficult to detect in its early stages. Early intervention is critical for improving survival rates. However, current methods rarely identify the disease before it spreads.
A breakthrough by Dr Daniel Heller and his team at Memorial Sloan Kettering Cancer Center offers hope. They have developed an AI-powered blood test that uses nanotube technology—tiny tubes of carbon that react to molecules in the blood. These nanotubes emit fluorescent light based on what binds to them, creating a molecular "fingerprint."
The challenge lies in interpreting this data. While the molecular patterns are too subtle for humans to discern, machine-learning algorithms excel at recognizing such complexities. By training AI systems with blood samples from patients with and without ovarian cancer, the team can identify the disease far earlier than conventional methods.
This innovation could revolutionise diagnostics, not just for ovarian cancer but for other diseases, including infections like pneumonia. However, as with any AI system, its effectiveness depends on the quality of the data and algorithms used, which brings us to a story that highlights the risks involved with AI.
The risks of misapplied AI 
Apple’s AI-driven news summarising feature on its latest iPhones has drawn criticism for generating inaccurate headlines. This feature is designed to help reduce the number of notifications smartphone users receive, however the BBC said that “these AI summarisations by Apple do not reflect – and in some cases completely contradict – the original BBC content.”
The BBC, as well as the journalism body Reporters Without Borders, have called for Apple to withdraw the feature, citing the dangers of misinformation.
Apple has now announced that a software update in the coming weeks will make it clearer that the summary has been AI-generated, but critics argue this is insufficient. They argue that the responsibility to verify accuracy will remain with users, which complicates their being able to get accurate information and lessens trust in the news.
Lessons for businesses
These two contrasting examples of AI in use offer some valuable lessons to businesses that are looking to integrate AI.
Firstly, ensuring accuracy is paramount. This is especially clear in a high stake healthcare application where a false positive or negative in diagnostics can have life-altering consequences. However, in any application the use of AI needs to be subject to robust testing and validation checks.
There is a need to communicate clearly about your use of AI as miscommunication about AI’s role and limitations can damage trust. Apple’s failure to initially acknowledge the AI-generated nature of its summaries contributed to public confusion and backlash.
AI systems have the potential to disseminate false information. Therefore, they need to be designed with safeguards and checks to prevent this from happening.
Balancing promise with caution
AI has the potential to bring many benefits, however, as the above two examples illustrate, this technology is not without risks.
In the rush to innovate, the lesson is clear. AI is best approached with caution, ensuring its use is rigorously tested and clearly communicated so you can fully harness its benefits without any downsides.
See: https://www.bbc.co.uk/news/articles/cq8v1ww51vno; https://www.bbc.co.uk/news/articles/cge93de21n0o

Last week, the Competition and Markets Authority (CMA) set out its initial plans for the new digital markets competition regime. The regime is designed to support the UK’s tech sector and has its legal footing in the Digital Markets, Competition and Consumers Act. The Act received royal assent in May 2024 but came into force on 1 January 2025.
The regime is intended to prevent very large, generally global, tech firms using unfair advantages to shut out smaller businesses. Following an investigation, which can take up to a maximum 9 months, the CMA has the power to designate a business as having “Strategic Market Status” (SMS) in relation to a particular digital activity.
Once a business has been designated in this way, the CMA can impose certain conduct requirements on the business, or it can introduce pro-competition interventions for the benefit of UK consumers and businesses.
The CMA have said that they expect to launch investigations in relation to 2 areas of digital activity in January. The next investigation into a third area is likely to begin towards the end of June.
It has not yet been revealed which areas of digital activity are going to be investigated. The CMA have said more detailed announcements on this will be released later in January.
As it launches its investigations, the CMA also plan to provide more detail on how a particular designation is likely to help affected businesses and consumers.
It’s early days for seeing what practical benefits the regime will bring, however it could provide UK tech businesses with opportunities to innovate and grow in a fairer business environment.
To review the CMA’s guide on how the UK’s digital markets competition regime works, see: https://www.gov.uk/guidance/how-the-uks-digital-markets-competition-regime-works

With the 31 January Self-Assessment tax return filing deadline fast approaching, HM Revenue and Customs issued a press release last week noting that 5.4 million taxpayers are yet to complete their return.
Apparently more than 24,800 people filed their return on New Year’s Day, while a further 38,000 had filed theirs on 31 December. 310 filed their returns between 11pm and midnight.
Missing the 31 January deadline can lead to an initial late filing penalty of £100.
If you need help with your tax return or are not sure whether you need to complete one, please give us a call and we will be happy to help you.
See: https://www.gov.uk/government/news/54-million-yet-to-file-their-tax-return

Recent immigration enforcement activity has highlighted the need for employers to ensure their workers have the right to work in the UK. With thousands of enforcement visits, arrests, and hefty fines being issued, businesses that neglect their responsibilities risk serious consequences.
Crackdown on illegal working
Immigration Enforcement teams have been targeting sectors prone to illegal employments, such as car washes, nail bars, supermarkets, and constructions sites.
Between July and November last year, enforcement teams conducted thousands of visits across the UK. These led to 770 arrests in London alone, with nearly 1,000 premises inspected.
Employers found guilty of hiring workers without the right to work face fines of up to £60,000 per worker, along with reputational damage and potential criminal charges.
How to stay compliant
Employers are required to carry out right to work checks before employing someone.
You need to:
-Request sight of original documents: Review the worker’s passport, visa, or other approved documents that prove their right to work in the UK.
-Verify authenticity: Confirm that the documents are genuine, belong to the individual, and haven’t expired.
-Keep records: Retain copies of the documents, including the date you verified them, for at least two years after employment ends.
-Use the Home Office’s online service: The Home Office offers an online right to work checking service for non-UK nationals. This can provide you with confirmation of a worker’s status.
For further guidance on conducting right to work checks, see: https://www.gov.uk/government/publications/right-to-work-checks-employers-guide/employers-guide-to-right-to-work-checks-23-september-2024-accessible-version

The benefits of exercise on our physical and mental health are well known. The healthier and fitter we are the better we work on our business. A healthier, fitter workforce are also much more likely to be productive and happier. Yet, many of us struggle to find the time or energy to do enough exercise.
The Department of Health and Social Care and the NHS revealed that 8.7 million NHS Couch to 5K runs were completed in 2024, with a total of 790,000 people downloading the NHS fitness app.
The app is designed to help beginners gradually build up to running 5 kilometres. Andrew Gwynne, Public Health Minister, said: “The NHS Couch to 5k app is a great way to get fitter and build sustainable running habits.” Regular running is a proven way to reduce the risk of long-term illnesses, such as heart disease, type 2 diabetes and stroke. It also helps in maintaining a healthier weight and improving your mood.
Users of the app get a guided commentary from a celebrity coach that they can choose and can track their progress by doing 3 runs a week. Users also receive celebration videos and progress summaries as they complete each running challenge. There is also guidance and support for those who have setbacks.
The app also now features ‘graduation’ content to help motivate people to make running a habit.
Of course, running is not the only form of exercise. Some may prefer cycling, swimming, walking, going to the gym, swimming, or playing sports.
However, regardless of the type of exercise, being able to exercise with someone else or making a commitment to someone else provides extra motivation to persist with an exercise habit. The workplace can be a good source of ‘buddies’ to give that motivation.
In view of the benefits available, could promoting the NHS Couch to 5K app or an exercise club not only help improve your and your staff’s health and well being but also benefit your business?
See:

The start of January marks a time of new beginnings, and for business owners, it’s the perfect opportunity to pause, reflect, and plan ahead. After the whirlwind of the festive season, January offers a quieter moment to consider where your business is headed, how it’s performing, and whether you’re still on track to meet your goals.
Why review your goals now?
Setting goals is one thing – keeping track of them is another. Running a business is often about managing the immediate – urgent emails, pressing deadlines, and day-to-day challenges. Without a clear plan, though, it can be easy to drift away from your bigger goals. This is why it’s so important to intentionally carve out time at the start of the year.
Why not ask yourself:
-Are you meeting your financial targets? -Have your priorities changed since you first set your goals? -re there new opportunities or challenges you need to plan for?
This kind of review isn’t about dwelling on what’s gone wrong; it’s about making sure you’re steering your business in the direction you want to go. For instance, it can help you clarify what you want to achieve this year. Is it more growth, more stability, or more innovation? It can also help you focus on the areas that truly drive results as well as allow you to prepare for potential problems and have strategies ready to address them.
A word on the role of a budget
Finances often need to be aligned to help you reach your goals. A budget can be an invaluable tool in helping with that.
Even if you’ve never drawn one up before, it’s not as daunting as it might sound. There’s no need to make it complicated. A simple budget can help you understand where your money is going, plan for upcoming expenses, and avoid surprises. Start by reviewing last year’s financial performance and based on that set some realistic income and expenditure targets for the months ahead.
Steps to get started
Here’s how to make the most of this reflective period.
1\.   Review your goals: What were your key objectives last year? Did you meet them? If not, why? Use these insights to refine your goals for the coming year.
2\.   Set SMART objectives: Make sure your goals are Specific, Measurable, Achievable, Relevant, and Time-bound. For instance, instead of “I want to grow my business,” aim for something like “Increase revenue by 15% by the end of September.”
3\.   Plan for action: Break down your goals into actionable steps. What resources do you need? Who will be responsible? Setting milestones along the way can help you track progress.
4\.   Monitor and adapt: Remember, a plan is only as good as its execution. Regularly review your progress and be willing to adapt it as new challenges and opportunities present themselves.
A resolution worth keeping
January is more than just a fresh start; it’s a chance to be intentional about where your business is headed. Taking the time out for a review of your goals will help to make sure that your efforts are aligned with your ambitions.
Make this the year you take control of your business’s future. With clear goals, a solid plan, and the discipline to follow through, 2025 could be your best year yet.

The Office for National Statistics’ (ONS) latest official figures for October show that the economy shrank for the second month in a row, while pay growth increased for the first time in more than a year.
GDP falls for second month
The official figures show that Gross Domestic Product (GDP) – often used as a measure of the economy as a whole – fell by 0.1% in October. This follows a similar reduction in September of 0.1%.
The quarter to October shows a 0.1% increase when compared with the three months to July 2024.
The results are therefore mixed but suggest there’s been a dip in recent months. This may be related to businesses waiting to see what the Autumn Budget would hold. However, the dip could continue as businesses remain concerned about the effects of the National Insurance increases revealed in the Budget.
Pay growth at 5.2%
Official figures also show that wages have grown at an annual rate of 5.2% between August and October, meaning that wages are growing faster than prices.
The data released by ONS also suggests that job vacancies are falling, however the unemployment rate remains unchanged at 4.3%.
Impact on Bank of England base rate
The Bank of England met last Thursday to review the base rate. They consider various figures on the economy in arriving at their decision.
With inflation also increasing to 2.6% in November, the Bank voted to hold the base rate at 4.75%.
Mixed signals
The UK economy shows mixed signals with figures suggesting a slowdown in economic activity. However, wage growth could support household spending but may fuel inflationary pressures. Figures also suggest that the labour market is holding steady for now. This combination points to a cautiously balanced economy, where businesses may face tightening conditions.

Rachel Reeves, the Chancellor of the Exchequer, has confirmed 26 March 2025 as the date for the Spring Forecast.
The Office for Budget Responsibility is required to produce two forecasts each financial year by the Budget Responsibility and National Audit Act 2011.
The Chancellor will accompany the forecast with a speech to Parliament. However, since she is committed to the stability that having only one major fiscal event a year brings, it seems that her speech is unlikely to include any major tax changes.
We will keep you posted on any developments related to the Spring Forecast. If you have any concerns or questions about how the Autumn Budget will affect your tax position for the 2025/26 tax year, please contact us at any time. We will be happy to help you!
See: https://www.gov.uk/government/news/chancellor-commissions-spring-forecast-on-26-march-2025

Chancellor Rachel Reeves spoke last week at a meeting of EU finance ministers as part of the government’s attempt to perform an economic reset with the EU. It was the first time a UK chancellor has attended such an event since the UK left the EU.
The Chancellor spoke about tackling shared challenges including the war in Ukraine, championing free trade as a driver of economic competitiveness, and strengthening bilateral economic partnerships. She said she was looking for a reset that would break down barriers to trade, create opportunities to invest and help businesses in both the UK and EU countries to sell in each other’s markets.
The speech was part of a trip where the Chancellor attended a series of bi-lateral meetings with European counterparts.
No return to the single market, the customs union, or freedom of movement is planned. However, the President of the European Commission, Ursula von de Leyen and Keir Starmer agreed on October 2 to strengthen the UK-EU relationship and put it on a more solid, stable footing.
The business community waits to see how these discussions will translate into concrete changes with EU trading partners.
See: https://www.gov.uk/government/news/chancellor-calls-for-business-like-relationship-with-eu

HM Revenue and Customs (HMRC) have announced the launch of a new interactive online tool and clearer guidance for those who are already self-employed and those considering it.
The new tool explains what records a self-employed person may need to keep, taxes that may apply to their business, and includes other useful information, such as how to pay a tax bill.
HMRC’s new Set Up as a sole trader: step by step guide can help people who work for themselves understand the situations in which they may need to register as a sole trader and how they can do so.
The tools can be used on an anonymous basis and are only for information purposes. Using them will not result in being registered as self-employed, and the government have said that they do not collect or store any information about the user.
If you are unsure about whether you may need to register as self-employed, please feel free to contact us. We will be happy to help you.
See: https://www.gov.uk/government/news/new-support-for-small-business-from-hmrc

With the holidays and end of the year fast approaching, it’s a good time to plan your finances for the new year. For those who file Self Assessment tax returns, the prospect of having to make a heavy tax payment at the end of January 2025 may be causing you concern.
Did you know that HM Revenue & Customs (HMRC) provides an option to spread the cost of your tax bill with their Time to Pay system?
What is Time to Pay?
Time to Pay is an HMRC service that allows taxpayers to spread the cost of their Self Assessment bill over regular monthly payments. It’s designed for those who can’t pay their bill in full by the deadline. By using Time to Pay, you can avoid further late payment penalties, provided you stick to the agreed payment plan.
Key points to know:
-Eligibility: If your tax bill is less than £30,000, then a payment plan can be set up online without needing to contact HMRC. If you owe more than £30,000, you’ll need to contact HMRC to discuss your options.
-Deadline: The tax return and payment deadline for the 2023 to 2024 tax year is 31 January 2025. To use Time to Pay, you must first file your tax return before you can set up a Time to Pay arrangement.  
-Payment Terms: You can spread payments over a maximum of 12 months, making budgeting more manageable. However, you must ensure you budget for the monthly payments, as missed payments will result in interest and penalties.
HMRC reports that over 15,000 taxpayers have already set up Time to Pay plans for the 2023 to 2024 tax year.
Planning ahead and understanding your options can make tax return filing less stressful. If you’re worried about how you will pay your tax bill, Time to Pay may be a practical option for you to consider.
If you would like any help agreeing payment arrangements with HMRC or with filing your Self Assessment, please get in touch and we will be happy to help you!
See: https://www.gov.uk/government/news/festive-finances-budget-for-christmas-and-spread-the-cost-of-tax-bills

In the runup to Small Business Saturday last week, a new Disability Finance Code was launched.
Research indicates that if opportunities were improved for disabled founders, it could unlock an additional £230 billion for the UK economy in growth and jobs.
Barclays, HSBC, Lloyds and NatWest have all signed up to this new scheme that is designed to help more disabled entrepreneurs get access to finance and support to start their own business.
Joseph Williams, CEO and co-founder of small business Clu said: “When disabled entrepreneurs are given equal access to finance, society gains in ways that go far beyond individual success. Inclusive entrepreneurship drives innovation, creates diverse workplaces, and encourages economic growth that benefits everyone.”
If you would like help in knowing where to go to access finance for your new business idea, why not get in touch? We would be happy to help you make your dreams a reality.
See: https://www.gov.uk/government/news/new-plans-revealed-to-save-small-firms-22000-a-year-and-improve-access-to-cash

New changes come into effect from January 2025 where online platforms, such as eBay and Airbnb, will start sharing some user sales and personal data with HM Revenue and Customs (HMRC).
Although these reporting requirements have caused concern, HMRC have confirmed that there are no changes to the tax rules for someone selling unwanted possessions online.
Angie MacDonald, who is HMRC’s Second Permanent Secretary and Deputy Chief Executive Officer, said: “We cannot be clearer – if you are not trading and just occasionally sell unwanted items online – there is no tax due.”
HMRC have advised that anyone who sold at least 30 items or earned roughly £1,700, or provided a paid-for service, on a website or app in 2024 will be contacted by the digital platform in January to say their sales data and some personal information will be sent to HMRC due to new legal obligations.
This does not mean that an individual automatically needs to complete a tax return. However, if the following applies then you would likely need to register for self assessment (if you are not already registered) and pay tax.
-Buying goods for resale or making goods with the intention of selling them at a profit; or
-Offering a service through a digital platform – such as delivery driving or letting out a holiday home; and
-You generate a total income before deducting expenses of more than £1,000. If you are concerned about whether you are likely to need to register for self assessment or pay tax, give us a call and we will be happy to help you.
See: https://www.gov.uk/government/news/no-tax-changes-for-online-sellers

The government’s promised new Fair Payments Code was launched last week to try and tackle late payment problems that can be particularly harmful to small businesses.
How will the Fair Payment Code help?
The code introduces a gold, silver, and bronze system that smaller firms can use to identify business partners who have made themselves accountable to pay fairly and within certain time limits.
The three award tiers have the following requirements:
-Gold award: for businesses paying at least 95% of all invoices within 30 days.
-Silver award: for businesses paying at least 95% of all invoices within 60 days, including at least 95% of invoices to small businesses within 30 days.
-Bronze award: for businesses paying at least 95% of invoices within 60 days.
Businesses that are granted an award also agree to abide by the principles in the Code of being “Clear, Fair and Collaborative” with their suppliers.
The awards, once granted, last for two years and then have to be reapplied for at the conclusion of that time. There will be a “robust” complaint system so that businesses who don’t meet the requirements of their award, or otherwise comply with the principles in the Code, can be reported.
Dealing with late payments can be a challenge to deal with. While the new Fair Payments Code may help, there are a variety of methods you can use to help reduce the effect of late payments. If you need practical help in how to improve how quickly your business is paid, please get in touch and we would be happy to help you.
See: https://www.smallbusinesscommissioner.gov.uk/fpc/

The government has unveiled some significant reforms to employment support, underpinned by a £240 million investment. The measures aim to address deep-rooted issues of unemployment, economic inactivity, and barriers to work, as detailed in the newly published Get Britain Working White Paper.
Figures quoted in the government’s announcement made for sobering reading. 1.5 million are unemployed, 9 million are economically inactive, and a record 2.8 million are out of work due to long-term illness. Young people, in particular, are disproportionately affected, with one in eight not in education, employment, or training.
The UK is apparently the only major economy that has seen its employment rate fall over the last five years. The government has attributed the reason for the decline to an increase in long-term ill health, and an employment support system that is outdated.
Therefore, the White Paper is highlighting the need for a fundamentally different approach to employment, health, and skills support to revitalise Britain’s workforce.
What are the key reforms being proposed?
1\.   Revamping jobcentres: These will be transformed into a new “national jobs and careers service”. This overhaul will focus on developing people’s skills and careers rather than simply monitoring benefits.
2\.   Tackling economic inactivity from ill health: Health-related issues, which are considered to be a major driver of inactivity, will be addressed through employing extra NHS staff in 20 areas that have high inactivity so as to cut waiting list times. Mental health support will also be expanded.
3\.   A new “Youth Guarantee”: Every 18-to-21-year-old will have access to an apprenticeship, quality training and education opportunities. The current Apprenticeship Levy will be replaced by a more flexible Growth and Skills Levy. Eight youth “trailblazer” areas are to be set up, including in Liverpool, Tees Valley and the East Midlands to help young people in those areas find education, training or work.
4\.   Supporting people with disabilities and health conditions: An independent review will be launched into the role of UK employers in promoting health and inclusive workplaces. It will look at what more can be done to enable employers to increase the recruitment and retention of disabled people and those with a health condition. It will also explore early intervention for sickness absence and what may help increase returns to work.
5\.   Empowering local communities: Local leaders, including mayors and councils, in areas of England that are not getting a trailblazer will receive up to £15 million to develop their own plans.
How will the reforms affect you?
Based on the changes being proposed, we may begin to see new measures introduced into employer’s obligations towards long-term sickness. Over the longer term, if these initiatives result in more younger people receiving more training, then this may increase the number of skilled people available for hire. This could alleviate the difficulty some businesses are finding in locating suitably qualified staff.
To review the White Paper, see: https://www.gov.uk/government/publications/get-britain-working-white-paper

HM Revenue and Customs (HMRC) have issued a reminder to be careful about scam attempts that target people filing Self Assessment tax returns. In the last year, nearly 150,000 scam attempts were referred to HMRC, a 16.7% increase on last year. With the 31 January 2025 filing deadline approaching, fraudsters are likely to step up their activities.
HMRC reports that around half of all scam reports in the last year were fake tax rebate claims. Fraudsters are usually aiming to get hold of personal information and banking details.
If you receive an email, text or phone call from someone claiming to be from HMRC that asks you for personal information or offers you a tax rebate, there is a useful checklist [here](https://www.gov.uk/guidance/identify-hmrc-related-scam-phone-calls-emails-and-text-messages) that can help you identify a scam.
It is helpful to know that HMRC will never leave voicemails threatening legal action or arrest. Neither will they ask for personal or financial information over text message.
HMRC also will not contact you by email, text, or phone to announce a refund or ask you to request one.
If you have been contacted by someone claiming to be from HMRC and feel unsure whether it is a scam, or you would like to check whether you are due a tax refund, call us at any time and we would be happy to help you.
https://www.gov.uk/government/news/scams-warning-as-self-assessment-deadline-loom

The National Cyber Security Centre (NCSC) has reported that shoppers lost over £11.5 million to online criminals between November 2023 and January 2024. Each victim lost an average of £695. A total of £10.6 million was lost the previous year. 
The Black Friday season can be a good time to find bargains for businesses as well as individual shoppers. However, it’s evident that online criminals are doing their best to take advantage of the increased shopping activity.
It’s important then that you and your business exercise vigilance during this time. NCSC advise that criminals will often create false urgency by using limited-time offers or promoting items that seem scarce or not widely available.  
Anyone involved in purchasing should be made aware that if they see or hear anything that doesn’t seem quite right, they should immediately: 
1. Break the contact and don’t click on any links. 2. Research the company or seller by looking at reviews on trusted review sites.
Another important step that the NCSC recommends taking is to enable two-step verification on any online accounts you have. You should also make sure that all online accounts are protected with a memorable but secure password.
By taking these essential measures you will help protect yourself and your business from fraud while you track down any bargains!
To review the report and guidance in full, see:

UK Export Finance (UKEF), the UK’s export credit agency, has launched a new initiative aimed at helping British engineering, design, and technical services firms secure international contracts. The Early Project Services Guarantee (EPSG) is designed to make UK expertise more attractive to overseas buyers while filling a key financing gap for the early stages of major projects.  
How the EPSG works  The EPSG provides overseas buyers of UK services with access to private finance by guaranteeing payments to lenders. This assurance makes it easier for international buyers to choose UK firms for essential scoping and design work in the planning phase of projects.  
Beyond this initial stage, the EPSG also opens the door for buyers to refinance their loans as part of the larger financing for the project’s construction phase. This creates a life-cycle financing advantage, giving UK firms an edge in securing contracts for both the early and later stages of international projects.  
The EPSG addresses a long-standing gap in market provision for financing the preparatory phases of major projects. By supporting the services sector, UKEF aims to drive export growth across all UK regions.  
What this means for your business  For UK businesses offering engineering, design, and technical services, the EPSG could be a game-changer in helping you explore opportunities in international markets. It could be the key to unlocking new contracts and expanding your global reach.
If you would like help with how your business could take advantage of this new scheme, or would like some broader advice on exporting, feel free to get in touch with us. We’re here to help you seize opportunities and grow your business.
See:

The latest inflation figures from the Office for National Statistics (ONS) reveal that the Consumer Prices Index (CPI) for October 2024 rose to 2.3%, up from 1.7% in September. This marks the first increase in inflation since July, and it has sparked interest among business owners, economists, and policymakers alike. 
The rise in inflation was widely anticipated, and as a result the Bank of England have already signalled that any future cuts to the base rate will happen gradually. However, the latest CPI figures make it unlikely that the Bank will reduce rates any further when they meet in December.  
What’s driving the numbers?  According to the ONS, the rise in inflation for October was largely driven by higher energy costs. However, other factors helped to balance the increase:  
- Falling ticket prices: Live music and theatre ticket prices dropped. - Lower business costs: Raw material costs for businesses have been falling.
Despite these offsets, some sectors faced steeper price increases:  
- Services inflation: Inflation in the services sector, which includes services like haircuts, hotels, and airfares, rose to 5%.  - Alcohol and tobacco: Prices for these items rose sharply. Encouragingly though, food inflation remained unchanged from September.  
What does this mean for your business?  The rise in inflation, though modest, signals shifts that businesses may need to navigate carefully:  
- Energy costs: You should revisit your energy usage and consider whether you might be able to reduce costs, either through using energy more efficiently, or considering whether a different supplier or price plan could meet your needs at a lower cost.  - Pricing strategies: Businesses in the services sector should prepare for potential challenges as rising costs affect consumer spending patterns. Balancing price increases with value will be key to maintaining customer loyalty.  - Cost control: With raw material costs easing, this may be a good time for manufacturers and retailers to lock in supply contracts or reassess margins. 
A broader economic context  While inflation has ticked upwards, this is in line with the Bank of England’s forecast that inflation will temporarily rise again before reducing in 2025. For now, businesses can take heart that interest rates are unlikely to rise sharply in the near term. However, with base rate cuts now likely to come more slowly than had been hoped earlier in the year, borrowing costs will remain a factor for planning and investment.  
Also, while October’s figures suggest only a modest uptick, sector-specific changes - particularly in services and energy - highlight the importance of staying agile in your pricing and how your business operates.
This period of mild inflationary growth is an opportunity for forward-thinking businesses to fine-tune their strategies for the months ahead.
See:

The Valuation Office Agency (VOA) has announced plans to share more detailed information on business rates valuations, making the system more transparent for ratepayers across England. Starting in 2026, businesses will have access to tailored information about their properties, and by 2029, they will be able to see specific valuation details and evidence.
Carolyn Bartlett, Chief Strategy and Transformation Officer at the VOA, noted that while ratepayers generally desire more transparency, some have concerns about data confidentiality. “We’ve balanced the desire for greater transparency from some with the concerns of others about the confidentiality of their data,” Bartlett explained.
Having more detailed information available may make it easier to detect whether an error has been made on your business property valuation.
**Business rates reforms coming** The VOA’s disclosure improvements are part of a larger set of business rates reforms that will roll out from 2026 to 2029.
A key part of this reform is a new duty on ratepayers to provide property information to the VOA. This new requirement will start to be tested in phases from April 2026 and will become mandatory by April 2029.
Under the new duty, ratepayers must inform the VOA within 60 days of any property changes, including new occupiers, rent adjustments, and physical changes to the property.
For some businesses, there will also be an annual requirement to submit trade information if it is used in property valuations.
Ratepayers will additionally need to confirm annually that all property changes have been reported.
The VOA have confirmed that businesses do not need to take any action yet. They will contact businesses directly about the changes and tell them when they will be affected.
See:

Next month, councils across England will be given new powers to transform high streets by tackling long-term empty shops. Starting from 2 December, High Street Rental Auctions (HSRAs) powers will allow local authorities to auction leases for persistently vacant commercial properties, a move that is hoped will bring new businesses and community groups back to once-busy centres.
Through HSRAs, councils can take action if a property remains empty for more than 365 days within a two-year period. By auctioning leases for up to five years, this policy aims to prevent disengaged landlords from sitting on empty properties, which contribute to the decline of high streets. Local authorities will need to first try to engage with the landlord to resolve the vacancy before putting a property to rental auction.
According to data quoted by the government, one in seven high street shops are currently closed. So, this initiative could provide a helpful boost, creating jobs and driving foot traffic back to town centres.
Local Growth Minister Alex Norris emphasised the importance of reviving high streets, saying: “High streets are the beating heart of our communities. But for too long, too many have been neglected, with more and more empty lots and boarded-up shopfronts.” He added that HSRAs put “local communities first, re-energising town centres and driving local opportunities and growth.”
**Additional support for high street businesses** There is currently plenty of talk at government level about how to revitalise high streets.
During the Autumn Budget it was announced that the small business rates multiplier has been frozen for next year. Plans were also revealed to permanently lower business rates for retail, hospitality and leisure properties.
£250 million was also committed for 2025-26 to the British Business Bank’s small business loans programme.
The government has also announced its intention to publish a new Small Business Strategy next year. This will set out further measures to support SMEs and, according to the government announcement, supporting small businesses on the high street will be at the centre of this.
See:

Since coming into power, the Labour government has made its Make Work Pay plan a centrepiece of their policies. As a result, we have already seen a number of changes being proposed and implemented. This includes the new Employment Rights Bill which is currently making its way through Parliamentary processes.
The government’s Make Work Pay policy paper makes interesting reading on what it intends to do.
The paper outlines how the UK has seen a productivity slowdown in recent years that is more pronounced than other advanced economies. They attribute much of this to issues with the labour market, both in workers feeling insecure and businesses struggling to find the right staff when they need them.
The Plan to Make Work Pay is therefore designed to modernise the UK labour market and address the challenges the economy is facing.
Principally the plan aims to make work more flexible, more secure and more family-friendly. This will help to support more people to stay in work.
**Employment Rights Bill** This key legislation is the first phase of delivering the government’s Plan. The changes it will bring about, including ‘day 1 rights’ of employment, banning exploitative zero-hours contracts and increasing worker protections have been widely discussed in the press.
Consultations are planned to take place in 2025, with the majority of reforms taking effect no earlier than 2026.
Employment rights and industrial relations are reserved in relation to Scotland and Wales and transferred to Northern Ireland. The UK government intends to work closely with the devolved governments on delivering and implementing their plan so that rights for people across the entire country are strengthened.
**Family friendly rights** The government is looking at how to support workers in working while balancing the essential responsibilities of their wider life, including raising children, improving their own wellbeing or looking after a loved one with a long-term health condition.
Some immediate changes are being made to support this. Flexible working will essentially become the default, a new right to bereavement leave is being introduced, paternity and parental leave will become a day 1 right, and protections for pregnant women as well as new mothers returning to work are being strengthened.
The government also intends to review the current parental leave system and the implementation of carer’s leave.
**Fair pay** We have already seen an adjustment in how minimum wage rates are set, with the cost of living now factored in.
The government’s intention is to remove the separate wage rates for different age bands. Instead, there will be one single rate regardless of the worker’s age.
Statutory Sick Pay is also to be strengthened. The lower earnings limit and the waiting period will be removed.
A consultation on how a Fair Pay Agreement process for the adult social care sector should work is also planned.
**Ending ‘one-sided flexibility’** Where workers have a zero-hours contract or a ‘low’ number of guaranteed hours but regularly work more than these hours, they will gain the ability to move to guaranteed hours contracts. 
Protections from unfair dismissal, which currently have a 2-year qualifying period, will be changed to apply from day 1.
Employers will still be able to assess whether someone is right for the job via probationary periods. Currently the government is suggesting a 9 month statutory probationary period where the worker will have certain day 1 rights, but there will be a lighter-touch process that employers can follow to dismiss an employee who is not right for the job.
There is concern amongst businesses that the proposed changes will expose them to increased legal liability and a greater number of unfair dismissal claims. The government is proposing to identify ways to signpost and support employees that will make clear where bringing claims might be unsuccessful.
They have also said that they will consult on limiting compensation awards for successful claims of unfair dismissal during a probationary period. In addition, there is a commitment that changes to the unfair dismissal rules will not come into effect any sooner than autumn 2026.
**Equality at work** The plan includes measures that will help to ensure greater equality in the workplace, including:
- ensuring that outsourcing of services can no longer be used to avoid paying equal pay. - a regulatory and enforcement unit for equal pay will be implemented. - larger companies will be required to publish information on their ethnicity and disability pay gaps. - specialist initiatives to join up employment and health systems to help support disabled people and people with health conditions thrive at work. - making it unlawful to dismiss a pregnant worker within 6 months of their return to work other than in specific circumstances. - establishing the Fair Work Agency to bring together existing enforcement functions and introduce the enforcement of holiday pay policy.
The government also intends to consult on the legal framework around trade unions and modernise it to reduce conflicts but provide workers with a voice.
Many of these changes will be enacted when the government publishes its Equality (Race and Disability) Bill later in this parliamentary session.
**Anything else?** Further reforms are also briefly discussed in the plan that will take place over the longer term.
These include consulting on having a single ‘worker’ status that differentiates between workers and the genuinely self-employed. This would include strengthening protections for the self-employed through a right to a written contract. Health and safety guidance and regulations will also be modernised.
**Conclusion** The government’s plan could largely be summed up as ‘a happy worker is a productive worker’. Therefore, the aim of the changes seems to be to make workers feel more secure and give them more flexibility over their working hours. If more workers remain more productive, this should make businesses more productive and the economy will grow as a result.
Of course, this will have to be reconciled with businesses dealing with additional costs and compliance. And you may have a question mark about whether the government’s plan will help you to grow your own business, particularly after a Budget that increased employment costs for many businesses.
While many of the proposals still need to be consulted on before they become law and there is time before the Employment Rights Bill will come into force, it is clear that we all need to be ready for changes over the next few years.
To read the policy in full, see:

HM Revenue and Customs (HMRC) have begun reminding taxpayers that time is ticking for getting self-assessment tax returns filed in time for the 31 January 2025 deadline.
More than 3.5 million tax returns have already been submitted, however HMRC are anticipating more than 12 million in total needing to be filed by the end of January. So, HMRC are encouraging people to submit their return as early as possible.
Filing earlier does have some advantages, such as avoiding a last-minute panic, and knowing how much any tax payment will be in time to be able to budget for it.
If you need to complete a self-assessment tax return this year but haven’t completed one before, then you will need to register first before you can sent your tax return. The registration process can take a few days so it is best to start this in good time before the end of January.
If you would like any help with completing your tax return, please feel free to contact us at any time and we would be happy to help you.
See: https://www.gov.uk/government/news/on-your-marks-100-days-to-file-self-assessment

Changes to inheritance tax were announced in the Budget that have caused consternation to farmers and business owners across the UK. What exactly is changing and what could this mean for you?
What are agricultural and business property relief?
Agricultural property relief (APR) is a type of inheritance tax relief that helps reduce the amount of tax that is paid when farmland is being passed down to the next generation. Currently, the relief has no financial limit, meaning regardless of the value of the farmland, it could be passed on with no inheritance tax payable.
Business property relief (BPR) is similar but relates to business assets included in a person’s estate. Again, this relief currently applies without any financial limit to the relief.
Clearly, both reliefs have played an important role in families being able to pass on agricultural and business assets without having to worry about inheritance tax.
What changed in the budget?
Based on the Autumn Budget announcement, there will be a new £1 million limit where 100% relief will be given. The relief will then reduce to 50% on the value that exceeds £1 million.
It is important to note that the £1 million allowance is a combined one for APR and BPR purposes. An estate that has both qualifying business and agricultural assets will only have a single £1 million allowance to use.
In addition, (quoted) shares that are designated as “not listed” on the markets of recognised stock exchanges, such as AIM, will only ever get 50% relief regardless of whether they would otherwise qualify as agricultural or business assets.
When will the change take effect?
The intention is that this change will take effect from 6 April 2026. So, these changes do not take immediate effect and mean that there could be some scope for planning or transferring of assets that will minimise your exposure to inheritance tax when the new limits come into force.
If I have agricultural assets valued at more than £1 million, will I have to pay inheritance tax?
Not necessarily. Inheritance tax is calculated by first deducting any reliefs (such as APR and BPR) and then deducting any allowances that apply. Each individual has a nil rate allowance, currently £325,000, and there is a residence nil-rate band limit of £175,000.
What should I do now?
If your estate is likely to be subject to inheritance tax, then it can pay to consider using some estate planning strategies to reduce your exposure to inheritance tax. As a starting place, it is a good idea to assess the current value and makeup of your estate.
Please get in touch with us if you would like any help with doing this, or if you would like to discuss whether there are any estate planning strategies that are open to you. We would be happy to help you!

As had been widely expected, the Bank of England reduced the interest base rate to 4.75% last week. This was due to inflationary pressures easing in recent weeks.
The Bank expects inflation to increase slightly again over the next year to around 2.75% and then fall back to the 2% target after that.
In their quarterly report, the Bank outlined that they will be taking a cautious approach and so will not be cutting rates too quickly or too much. It seems unlikely there will be a further cut when the Bank next meet on December 19th.
However, the Bank have said that “if things evolve as expected, it’s likely that interest rates will continue to fall gradually.”
Obviously, a rate cut can be a mixed blessing depending on whether your business is investing or borrowing. However, if inflation is stabilising this may mean a more stable economy and more certainty for businesses in the year ahead.
See: https://www.bankofengland.co.uk/monetary-policy-report/2024/november-2024

Two days before the Budget, the Prime Minister announced that the cap for single bus fares would be increased to £3 from its current £2.
The current fare cap is due to expire at the end of 2024. Without intervention, prices for some routes looked set to rise significantly. The new £3 cap will run until the end of 2025.
The cap means that no single bus fare on routes that are included in the scheme can exceed £3. Routes where the fare is less than £3 can only increase in line with inflation.
For workers that are reliant on bus fares, the new cap means an increase in their costs but at least continues to provide some relief.
See: https://www.gov.uk/government/news/over-1-billion-to-boost-bus-services-across-the-country-as-bus-fares-capped-at-3

As has been widely expected in the last few weeks, the Chancellor, Rachel Reeves, made some significant changes to the Employers National Insurance (NI) rate and threshold in the Autumn Budget.
From 1 April 2025, the rate for Employers National Insurance (NI) will increase from 13.8% to 15%. At the same time, the level at which employers start paying national insurance on each employee’s salary will be reduced from £9,100 per year to £5,000. The combination of these two changes means a potentially significant increase in payroll costs for businesses.
To counteract this, the employment allowance will be increased from its current £5,000 to £10,500. The Chancellor claimed that this would mean that “865,000 employers won’t pay any National Insurance at all next year and over 1 million will pay the same or less than they did previously.”
An employer who employs 4 full time (35 hours per week) employees at the National Living Wage rate will not have to pay NI on their wages.
However, there is some encouraging news for larger businesses. Previously the Employment Allowance could only be claimed by an employer if their Employers NI liability was less than £100,000 in the tax year. This restriction will be removed and mean that all employers that otherwise qualify will be able to reduce their national insurance liability by £10,500.
Businesses planning their headcount and budgeting payroll costs for next year will want to factor in the increased national insurance costs. If you need any help with doing this, please do not hesitate to give us a call.
See: https://www.bbc.co.uk/news/articles/c4g7x6p865zo

On 30 October 2024, Rachel Reeves delivered her first Budget speech. As the first Budget speech ever delivered by a female Chancellor of the Exchequer, the occasion was bound to be one for the history books regardless of what was said.
The Chancellor’s speech lasted 76 minutes and right from the start she claimed that difficult decisions were having to be made because of the £22bn ‘black hole’ left in the public finances by the previous government.
Once the speech had concluded there was a feeling that the Budget may not have been as bad as we might have expected. This is likely the effect the Chancellor was hoping for and may have had something to do with the fact that the main way of increasing taxes – from a rise in Employers National Insurance (NI) – had already been strongly indicated before the Budget took place.
For working people, the Budget maintained the status quo with no increases to income tax, national insurance or VAT. The personal allowances and tax rate bands were frozen by the previous government as a way of raising taxes known as ‘fiscal drag’. This is because as pay increases, more earnings are likely to be taxed at higher rates. The Chancellor did promise that from 2028/29, personal tax thresholds would be uprated in line with inflation once again.
However, businesses were one of the big losers in the Budget, largely through the aforementioned Employers NI increases as well as increases to the minimum wage rates, which are both explored in the two articles below.
Retail, hospitality and leisure (RHL) businesses received some support through continued business rates relief. For the 2025/26 tax year, RHL businesses will be given a 40% relief on their business rates, subject to a cap of £110,000 per business. The small business multiplier will also be frozen in 2025/26. These are interim measures as the government intends to introduce permanently lower tax rates for RHL properties with rateable values under £500,000 from 2026/27.
The Chancellor also announced investments in public services and home building. These may mean contracts and work for businesses across various sectors.
If you are concerned about how any of the Budget measures will affect you and your business, please get in touch at any time and we will be happy to provide you with personalised advice.

The UK government has announced a consultation on new legislations designed to regulate Buy-Now, Pay-Later (BNPL) products. The forthcoming rules, which will bring BNPL products under the supervision of the Financial Conduct Authority (FCA), are designed to provide the same key protections for BNPL as exist for other consumer credit products.
If you offer BNPL, what do you need to know?
**Affordability checks and responsible lending**
Under the new rules, BNPL providers will be required to perform affordability assessments to ensure that borrowers can afford repayments. This measure addresses concerns that consumers are at risk of accumulating unsustainable debt through easy access to BNPL products. For businesses offering these services, this will mean integrating new procedures to assess customers’ financial circumstances before approving BNPL transactions.
These checks are expected to be in line with those required for other consumer credit products, such as credit cards and loans, and will help to prevent customers from borrowing beyond their means.
**Clearer information and consumer rights**
The upcoming rules will require BNPL providers to offer clear, accessible information to users upfront, ensuring they can make informed decisions. Businesses that offer BNPL should anticipate needing to provide more detailed and user-friendly loan terms in their online interfaces.
Additionally, consumers will gain stronger rights if they experience issues with their purchases. Protections under Section 75 of the Consumer Credit Act will be extended to BNPL users, allowing customers to seek refunds from their lender if something goes wrong with a purchase.
Access to the Financial Ombudsman Service will also provide a clear avenue for complaints and dispute resolution. Affected businesses may need to look at beefing up their customer service teams to handle any increased demand for support or redress.
**Timeline and next steps**
The government’s consultation on the new rules is only open for a short period until 29 November. Legislation is expected to be laid in early 2025. Once passed, the FCA will finalise the rules, which are anticipated to come into force in 2026.
The consultation can be accessed [here](https://www.gov.uk/government/consultations/regulation-of-buy-now-pay-later-consultation-on-draft-legislation-october-2024).
In the meantime, affected businesses should closely monitor updates on the legislation’s progress and consider consulting legal or financial advisers to ensure compliance.
For those already offering BNPL, this period presents an opportunity to review and enhance your credit-assessment systems, customer communications, and support structures, ensuring your business is prepared for a smoother transition once the rules take effect.
See: https://www.gov.uk/government/news/millions-of-shoppers-to-be-protected-by-new-buy-now-pay-later-rules

Following the release of the Employment Rights Bill, its Impact Assessment was published last week showing that the new Bill will have a “positive direct impact on economic growth.”
The Bill received a majority vote at its second reading in the House of Commons last week, and now goes to committee stage, where it will be given a detailed examination.
The government has now launched consultations on 4 areas of the proposed legislation, which will become part of amendments that will be made to the Bill in the early part of 2025.
The consultations are as follows:
1\. Strengthening Statutory Sick Pay (SSP)
The Bill will remove the waiting period for SSP as well as the Lower Earnings Limit, so that all employees, regardless of how much they earn, will have SSP available from day one of their employment.
The consultation is considering what the percentage replacement rate should be for those who earn below the current rate.
The consultation, which will close on 4 December 2024, can be found [here](https://www.gov.uk/government/consultations/making-work-pay-strengthening-statutory-sick-pay).
2\. Application of zero hours contracts measures to agency workers
This consultation is looking for views on how the zero hours contracts measures in the Employment Rights Bill can best be applied to agency workers without causing unintended consequences. It will close on 2 December 2024.
The consultation can be viewed [here](https://www.gov.uk/government/consultations/making-work-pay-the-application-of-zero-hours-contracts-measures-to-agency-workers).
3\. Creating a modern framework for industrial relations
The government is consulting on various specific measures to modernise the legislative framework that underpins trade unions. This consultation will also close on 2 December 2024 and can be viewed [here](https://www.gov.uk/government/consultations/making-work-pay-creating-a-modern-framework-for-industrial-relations#:~:text=Consultation description,ballot requirement on political funds).
4\. Collective redundancy and fire and rehire
This fourth consultation is looking for views on measures to strengthen the collective redundancy framework and protections for employees against fire and rehire practices. The consultation closes on 2 December 2024 and can be viewed [here](https://www.gov.uk/government/consultations/making-work-pay-collective-redundancy-and-fire-and-rehire).
See: https://www.gov.uk/government/news/up-to-600-cash-boost-for-britains-lowest-paid-to-help-kickstart-the-economy

A strong relationship with your bank is a crucial part of the success and stability of your business. You may rely on them for tailored financial solutions, ranging from short-term credit facilities to long-term loans, to support your growth plans or manage cash flow fluctuations.
At the same time, we can sometimes feel that the bank is calling all the shots, and it is difficult to get any redress when something goes wrong. If you are in that position, then the Business Banking Resolution Service (BBRS) may be able to help you.
While the service is wholly funded by the participating banks, the BBRS has been set up as a free and independent service for SME customers of banks that can help to resolve disputes. However, the service, which first opened in 2021, is scheduled to close to new registrations on 13 December 2024, so there is limited time available to start a claim.
The BBRS website provides an [eligibility checker](https://thebbrs.org/lets-see-if-we-can-help/) so you can check whether you are able to make a claim,
Broadly speaking, you need to have been a business banking customer of one of the participating banks, and your complaint needs to be about a banking service. The incident must have happened on or after 1 April 2019.
You need to have already made a complaint to your bank and your business would need to have had less than £10 million turnover at the time you complained to your bank.
The BBRS may also be able to look at complaints that may appear to be ineligible, so it is worth taking the time to get their advice.
If you are having problems with your bank and would like some advice or help in contacting the BBRS, please feel free to get in touch with us at any time and we would be happy to help. Remember the BBRS service will close for new registrations on 13 December 2024.
See: https://thebbrs.org/

At the International Investment Summit, the UK government announced nearly £63 billion in new investments, which are expected to create 38,000 jobs.
These investments, which span various sectors, are projected to fuel growth across the country. While these investments tend to focus on large businesses and large-scale projects, there could be significant implications for small and medium-sized businesses (SMEs) as these investments roll out.
**Renewable energy opportunities**
Octopus Energy has committed to investing £2 billion in renewable energy projects, including four new solar farms across the UK.
These solar farms will power up to 80,000 homes and generate business for smaller suppliers and contractors in the construction, maintenance, and energy sectors.
SMEs in renewable energy services, installation, and related fields could benefit from the need for equipment, local expertise, and operational support as these projects roll out.
Additionally, BW Group is proceeding with a £500 million investment in battery energy storage projects, which are expected to help the UK’s shift towards cleaner energy.
These projects, set in Hampshire and Birmingham, may create new supply chain opportunities for small businesses involved in the production or installation of renewable energy components.
**Data Centres: A growing sector for small business support**
The growing focus on data centres offers further potential. For example, Amazon Web Services has committed £8 billion to expand its UK data centre operations, a move expected to support around 14,000 jobs annually at local businesses.
Businesses involved in construction, facility maintenance, engineering and telecommunications could find new contracts in the data centre market.
For more information on the project investments announced, see: https://www.gov.uk/government/news/record-breaking-international-investment-summit-secures-63-billion-and-nearly-38000-jobs-for-the-uk

The Office for National Statistics (ONS) have reported that their measure for inflation (Consumer Prices Index) fell to 1.7% for September. This is an unexpected reduction and is the lowest inflation has been in more than three years.
Drops in airfares and petrol were the main reasons for the reduction. The Bank of England targets 2% inflation, so this reduction may allow them to cut interest rates further when they meet in November. There is also some expectation that there could now be a second rate cut in December.
The September inflation figure is an important one since it’s normally used to set how much many benefits increase next April. These include Universal Credit, disability benefits, and carer’s allowance. Lower inflation may lead to lower increases in these allowances.
The drop in inflation may be temporary though, as energy prices increased in October, which may swing the picture once again.
See: https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/consumerpriceinflation/latest

With the Budget coming on 30th October, speculation is increasing on what changes will be announced. The Chancellor and the Prime Minister have made comments to indicate that the Budget will bring “difficult decisions”.
The Chancellor reported shortly after taking office that there was a £22bn “black hole” in public spending inherited from the previous government. The BBC reported last week that their sources indicated that actually £40bn is needed to avoid real-terms cuts to departments.
There has also been much talk about driving growth in the UK economy, with the International Investment Summit recently aiming to attract investment to the UK.
**Will Employers NI increase?**
While Labour’s manifesto promised no increases in taxes to workers, the same promise wasn’t made to employers. Employers National Insurance (NI) is the element of national insurance paid by employers based on an employee’s gross pay. It is therefore a tax on employers that isn’t directly felt by employees.
The Prime Minister neatly sidestepped questions in an interview last week about whether the manifesto promise included employers NI. Chancellor Rachel Reeves also confirmed last week that the election pledge not to increase NI for working people related to the employee element rather than the employer element.
Therefore, it looks as though the government are considering this as an option to raise taxes.
**What else could change?**
By providing this information early, the government look to be preparing the road so that we all expect an increase. However, the actual increase may be less than we fear so that it doesn’t seem like such bad news when it comes to it.
Also, by having an easy headline tax increase to focus on, other welfare cuts and tax rises may not be as easily noticed.
Other areas that seem likely to receive attention in the Budget could include capital gains tax, inheritance tax, fuel duty, and pension taxation. non-domiciled tax status and possibly a gambling tax.
Once the Budget is announced we will keep you updated on the changes. If you have any concerns about how the Budget might affect you, please feel free to get in touch at any time and we will be happy to help you.
See: https://www.bbc.co.uk/news/articles/cj9jdgprv7ko

The Competition and Markets Authority (CMA) has just published a new set of heat maps showing where businesses across the UK have received warning or advisory letters for potentially breaking competition law. It’s the first time the CMA has published this kind of information, and it’s a reminder for all businesses to ensure they’re on the right side of the law.
If you run a retail business, manufacture goods, or operate in any competitive market, the CMA’s report could be of interest to you.
**What Is the CMA Doing?**
From 2018 to 2023, the CMA sent 557 letters to businesses in various sectors, including household goods, technology products, heating equipment, and clothing. These letters are meant to warn businesses about practices that could be harming consumers and breaking competition law.
The most common issue? Resale Price Maintenance (RPM). This happens when suppliers or manufacturers restrict retailers from offering discounts, keeping prices higher for consumers. If your business is involved in setting prices for products sold by resellers or distributors, it’s worth reviewing those agreements carefully.
**What could happen if you ignore a warning?**
If you receive a letter from the CMA, take it seriously. Businesses that ignore these warnings could face significant penalties.
For example, GAK, a business that resells digital keyboards and guitars, were fined £278,945 for having an agreement with Yamaha not to discount online prices for certain products. This was increased by 15% because GAK had already been sent an advisory letter from the CMA expressing their concerns it was potentially engaging in RPM.
The penalties don’t stop at fines. In some cases, the CMA can disqualify company directors, which could be disastrous for a business.
**Why this matters for your business**
Even if you haven’t received a letter, this is a good reminder to review your practices. Staying on the right side of competition law can help to protect your business and reputation.
It may be good to review your supplier and reseller agreements. If you’re involved in setting prices or giving instructions on how your products are sold, make sure you’re not limiting competition. Restricting discounts could land you in trouble.
The CMA’s heat maps show that warning letters have been sent to businesses all over the UK, with higher concentrations in regions like the South East and London. If you operate in these areas, it’s worth being extra vigilant.
At the end of the day, keeping your business compliant with competition law isn’t just about avoiding fines - it’s about protecting your customers, your reputation, and your future growth.
If you’ve received a warning or advisory letter, or if you just want to ensure your business is operating within the law, get in touch with us today. We’re here to support you and help safeguard your business.
See: https://www.gov.uk/government/news/cma-reveals-geographic-spread-of-warnings-issued-to-businesses

Energy Secretary Ed Miliband, along with a newly reactivated Solar Taskforce, is spearheading a major push to get more solar panels on homes and businesses by 2030. This is all part of a wider strategy to build the UK’s energy independence, reduce reliance on fossil fuels, and protect consumer bills from volatile energy markets.
So, what does this all mean for your business?
**Solar power: a growing opportunity**
Solar is one of the cheaper and more accessible forms of renewable energy. If there is an increase in focus on solar panels, then it could be worth considering whether solar energy could benefit your business.
Beyond the environmental impact (cutting carbon emissions is always a plus), businesses that invest in solar could see long-term financial benefits. With energy costs still a major concern, generating your own electricity could offer significant savings and protect you from future price hikes.
**The Solar Taskforce: What’s the plan?**
The government’s reactivated Solar Taskforce, which met for the first time on 2 October, is looking to tackle the key challenges they feel are holding the sector back.
The first meeting focused on how to develop ethical, resilient and innovative supply chains and ensuring that a skilled and properly resourced workforce is in place to scale up solar installations.
**What can businesses do now?**
Whether you own your premises or rent, there may be ways to benefit from this renewable energy push. For instance, solar panel installations on warehouses and office buildings or even smaller rooftop setups could help reduce your energy costs and carbon footprint.
For these kind of investment decisions, a cost benefit analysis can be a simple way to weigh the advantages or benefits of the decision against the costs involved to see whether it’s financially worthwhile.
Here’s how it works in a nutshell:
1\.   List the costs: These could include upfront expenses, ongoing maintenance, time, or any other resources you’ll need to commit. For example, if you're considering installing solar panels, the costs would include the price of the panels, installation, and any maintenance fees.
2\.   List the benefits: Benefits can be financial (such as savings on energy bills or government incentives) and non-financial (like reducing your carbon footprint or boosting your business's green credentials).
3\.   Quantify the costs and benefits: Where possible, you assign a monetary value to both the costs and benefits. If the total benefits outweigh the costs, it suggests it could be a good decision. If the costs are higher, you might reconsider or perhaps look for ways to reduce them.
A cost-benefit analysis might help you decide whether the upfront costs will be outweighed by the long-term savings on your energy bills, any tax incentives, and the potential for increasing the value of your property.
If you need any help putting together a cost benefit analysis, please feel free to contact us at any time and we would be pleased to help you.
See: https://www.gov.uk/government/news/solar-taskforce-meets-in-drive-for-clean-power|

The government has published the Employment Rights Bill, which is intended help deliver economic security and growth to businesses, workers and communities across the UK.
The bill will bring forward 28 individual employment reforms, from ending exploitative zero hours contracts and fire and rehire practices to establishing day one rights for paternity, parental and bereavement leave for millions of workers. Statutory sick pay will also be strengthened, removing the lower earnings limit for all workers and cutting out the waiting period before sick pay kicks in.
The existing two-year qualifying period for protections from unfair dismissal will be removed, ensuring that all workers have a right to these protections from day one on the job.
The government will also consult on a new statutory probation period for companies’ new hires. This will allow for a proper assessment of an employee’s suitability to a role as well as reassuring employees that they have rights from day one.
The bill will end exploitative zero hours contracts, following research that shows 84% of zero hours workers would rather have guaranteed hours. They, along with those on low hours contracts, will now have the right to a guaranteed hours contract if they work regular hours over a defined period, giving them security of earnings whilst allowing people to remain on zero hours contracts where they prefer to.
The bill will also:
- Change the law to make flexible working the default for all, unless the employer can prove it’s unreasonable;
- Set a clear standard for employers by establishing a new right to bereavement leave;
- Deliver stronger protections for pregnant women and new mothers returning to work including protection from dismissal whilst pregnant, on maternity leave and within six months of returning to work;   
- Tackle low pay by accounting for cost of living when setting the Minimum Wage and remove discriminatory age bands;  and
- Establish a new Fair Work Agency that will bring together different government enforcement bodies, enforce holiday pay for the first time and strengthen statutory sick pay.
See: https://www.gov.uk/government/news/government-unveils-most-significant-reforms-to-employment-rights

Companies House have rolled out a new penalties regime as part of a broader effort to boost corporate transparency and combat economic crime, following the implementation of the Economic Crime and Corporate Transparency Act 2023.
This could mean tougher consequences in the shape of financial penalties for companies that don’t meet their obligations, including filing their confirmation statements on time.
More serious offences, such as ongoing non-compliance or fraudulent activity, could lead to civil action, director disqualification, or even criminal prosecution. Companies House have said they will work closely with the Insolvency Service and other enforcement partners to investigate and prosecute offences when necessary.
According to Martin Swain, Director of Intelligence and Law Enforcement Liaison at Companies House: "Where our guidance and support are not enough to encourage users to comply with the law or discourage misuse of our registers, we won’t hesitate to use these new powers available to us." What happens if you break the rules?
For minor breaches, such as filing documents late, the result may simply be a fine. The amount of the fine increases depending on the seriousness of the offence and how many times it has already happened. Amounts could range from £250 to £2,000.
Companies House is also adopting a holistic approach to enforcement, which means that they will share intelligence with other bodies. For companies, this could mean that non-compliance could trigger a much deeper investigation, potentially leading to more severe consequences than in the past. How to stay compliant
To avoid penalties, company directors should make sure they are up to date with their filings and other legal obligations. Here are a few steps to consider:
-Ensure all filings are made on time: This includes confirmation statements, accounts, and any other required documents. -Respond to any warnings from Companies House: Ignoring these can escalate the situation quickly. \- Keep up to date with any changes: Stay informed about legal updates that might affect your responsibilities as a company director. -Seek help if needed: If you’re unsure about what’s required, don’t hesitate to seek professional advice.
If you have any questions or concerns about the new regime, feel free to reach out. We're here to help ensure your business remains compliant with these important regulations.
See: https://www.gov.uk/government/publications/companies-house-approach-to-financial-penalties

If you’re a new parent, congratulations! Apparently, around 2,000 babies are born on 26 September each year – more than any other day.
Therefore, HM Revenue and Customs (HMRC) is reminding parents to claim their Child Benefit. A claim can be made online and the first payment could be made within a week of claiming. 
**Why claim child benefit?**
Child Benefit is a helpful financial support for families, offering up to £1,331 per year for the first child, and £881 for each additional child. This can make a real difference, especially in the early days of parenthood.
But Child Benefit doesn’t just provide extra money – it also gives you National Insurance (NI) credits. These credits contribute to your State Pension in the future, and so this could be especially important for parents who may be taking time off paid employment to care for their little ones.
**How to claim Child Benefit**
The claim process can all be done online. If you register your baby’s birth, you can claim Child Benefit as soon as 48 hours after registration. Payments are typically processed within three days, so parents could receive their first payment within a week of their baby being born.
Here’s what you’ll need to make your claim:
-Your child’s birth or adoption certificate, -Bank details for the payment, -National Insurance number for yourself and your partner (if applicable), and -For children born outside the UK, their original birth or adoption certificate, and their passport or travel document.
You can make the claim using the HMRC app or online through the GOV.UK website.
**What if I earn over £60,000?**
If someone in your household earns over £60,000, you may be subject to the High Income Child Benefit Charge. This means the amount of benefit you receive could be reduced. You can still claim Child Benefit, but it’s important to be aware of this tax charge to avoid any surprises later on.
If you’re in this situation, HMRC offers an online Child Benefit tax calculator to help you work out how much benefit you can claim and what charge might apply. 
For those who previously opted out of Child Benefit payments due to the old £50,000 threshold (which increased to £60,000 in April 2024), you can restart your payments using the online form on GOV.UK.
**Don’t forget your National Insurance credits**
Even if your household is affected by the High Income Child Benefit Charge, you can still make a claim for NI credits. These credits help build up your entitlement to the State Pension – you need at least 10 years of NI credits to qualify for some State Pension, and 35 years of credits to claim the full amount.
If you’ve just welcomed a little one or know someone who has, be sure to claim Child Benefit as soon as possible. It’s a helpful way to support your family financially and protect your future pension. If you need help or have any questions, feel free to call us – we’re here to assist you every step of the way!
See: https://www.gov.uk/government/news/make-september-birth-boom-a-bank-account-boon

The latest figures from the Office for National Statistics (ONS) reveal that the UK’s economy grew by 0.5% between April and June, a slight dip from the initial estimate of 0.6%.
This adjustment, largely due to sharper-than-expected declines in the manufacturing and construction sectors, comes at a pivotal moment as the Labour government gears up to unveil its first Budget at the end of the month.
So, what could this mean for your business?
Firstly, let’s talk about manufacturing and construction. The production of transport equipment, particularly cars, saw a significant drop of 3.1%. According to the ONS, it seems that many car manufacturers are reducing output in preparation for a shift to electric vehicles. For businesses involved in these sectors, this may be a crucial moment to consider strategies carefully and consider investing in technology that aligns with future trends.
On the construction front, while reporting a continuing decline in building new homes, ONS said there are some signs this is beginning to ease. If you're in the construction business, this may offer some positive news for coming months.
Interestingly, households are saving more, with the saving ratio climbing to 10% in the spring. While that might sound positive, it can lead to less consumer spending, particularly on non-essential items. If your business relies heavily on discretionary income, think about how you can add value - perhaps through loyalty programs or personalised marketing - to encourage people to spend.
Looking ahead, there’s also the question of interest rates. The recent downward revision in growth figures may further support that the Bank of England made the right call in cutting the base rate in August. It may make a further rate cut in November more likely.
How much these latest figures might affect the upcoming Budget is uncertain, however they do highlight the need for businesses to remain flexible and proactive. If you would like personalised advice for your business, please just get in touch. We would be happy to help you.
See: https://www.bbc.co.uk/news/articles/c8djelgl6y8o

In line with the e-invoicing initiative we reported on elsewhere, the Chancellor also outlined broader reforms to modernise HMRC through a Digital Transformation Roadmap, which is expected in Spring 2025.
This roadmap will aim to create a “digital-first” tax system, although it will include measures to ensure support for those unable to go fully digital.
In addition, James Murray, who is Exchequer Secretary to the Treasury and is responsible for the UK’s tax system, has been appointed as the Chair of the HMRC Board. This in part is to help him oversee how HMRC can ‘close the tax gap’ – in other words, collect tax that the government currently believes is being underpaid.
HMRC has a target of recruiting an additional 5,000 compliance staff to help it in these aims.
**How businesses might be impacted:**
With HMRC focusing on closing the tax gap, businesses should ensure that their tax affairs are in order. You might consider seeking advice to review your tax compliance processes and make sure you avoid potential penalties.
For most businesses, operating digitally is now a day-to-day norm. However, with HMRC moving to a “digital-first” approach, if you’ve been relying on paper-based or old computer systems, it may be time to think about upgrading to online solutions.
If you’re unsure how these changes might affect your business or need support with your tax compliance or digital strategy, please get in touch. We’re here to help you navigate the upcoming reforms and ensure your business is well-positioned for growth.
See: https://www.gov.uk/government/news/chancellor-unveils-package-to-deliver-on-promises-of-new-government

The Chancellor unveiled a series of announcements last week that could have implications for UK businesses. One of the most relevant for business owners was the government's push for electronic invoicing (e-invoicing).
HM Revenue and Customs (HMRC) will soon launch a consultation on encouraging the wider use of e-invoicing, with the goal of simplifying business transactions and reducing administrative burdens but perhaps especially, reducing errors in tax returns so that HMRC can ‘close the tax gap’.
While there are clearly advantages for HMRC in businesses using e-invoices, it’s also fair to say that they can benefit businesses too.
**Benefits of e-invoicing for businesses:**
- Improved cash flow: E-invoicing accelerates payment times by automating the invoice approval process, making it easier for businesses to receive payments quickly.
- Reduced errors: Automated processes can help minimise the risks of manual entry errors in invoices, which can lead to payment delays or disputes.
- Increased productivity: With fewer administrative tasks, businesses can save time and focus on other essential areas, such as growth and customer service.  
- Tax compliance: E-invoicing can help businesses keep accurate tax records, making it easier to complete tax returns and avoid discrepancies that may lead to penalties.
**How could you take advantage of e-invoicing?**
While the consultation is yet to launch, there’s no reason you couldn’t give some thought to moving over to an e-invoicing system now.
To do this, you could explore the options available. Many software providers offer affordable solutions tailored to SMEs that work with your existing accounting software. You may find that the software you already use can do e-invoicing for you.
If you need any help with e-invoicing or setting up your accounting software, please just give us a call and we would be happy to help you out.
See: https://www.gov.uk/government/news/chancellor-unveils-package-to-deliver-on-promises-of-new-government

The Chancellor, Rachel Reeves, gave an important speech at the Labour Party conference last week, in which she appeared to shift tone to speak more positively about the economy.
Recently she spoke about the upcoming Budget being a “painful” one. As a result, there has been speculation on where spending will be cut and tax raised, which may have affected consumer confidence.
However, the Chancellor’s speech at the party conference concentrated on the positive results she expects to bring to the economy. She plans to grow public spending in real terms as she believes that investment by the government will help the economy to grow. There may be changes upcoming to the rules on government borrowing so that more investment is allowed.
Whether this means that the Budget will not be as painful as we might have been expecting is hard to know. As always, we will keep you posted on the Budget developments.
See: https://www.bbc.co.uk/news/articles/c5y50z5l1r2o

The government has announced a delay to the start of the Procurement Act 2023, moving the commencement date to February 2025.
The Procurement Act aims to simplify and improve transparency in public sector procurement and open opportunities for small businesses.
While the Act’s goals remain unchanged, the government has decided to develop a new National Procurement Policy Statement before the Act comes into force. In short, Labour don’t like the Policy Statement that the Conservatives previously wrote and want to write their own.
**How could this affect businesses?**
For businesses that had hoped to start capitalising on the simplified procurement processes promised by the Act, this is frustrating news. You may have wasted time and money on getting ready and opportunities for contracts being offered this autumn may now be more difficult.
On the other hand, the additional time may offer you an extended period to be able to adapt to the new requirements and opportunities. This could provide a chance to better prepare for the potential benefits of easier access to public contracts.
Whether or not the delay will mean that the revised framework offers more favourable conditions for businesses remains to be seen.
**What’s next?**
The government plans to withdraw the previous policy statement and start drafting new regulations to implement the Procurement Act on 24 February 2025. This also involves working closely with the Welsh and Northern Irish governments to ensure a smooth roll-out across the UK.
For businesses, the key takeaway is to stay informed and prepared. The delay offers a window to get ready for the changes, ensuring that when the Act does come into force, you can take full advantage of the new opportunities it promises to deliver.
See: https://questions-statements.parliament.uk/written-statements/detail/2024-09-12/hcws90

Amazon has announced the end of its hybrid work policy, with corporate staff expected to be back in the office five days a week starting in January. Previously, staff had the flexibility to work from home two days a week.
The decision has apparently been made to help staff work together more effectively and help reduce bureaucracy. Last year, Amazon tightened the full remote work allowance that had been put in place during the pandemic and this resulted in staff staging a protest. The new decision is unlikely to be popular with many.
Amazon’s decision is in contrast with the new UK employment rights bill expected to be published next month. This is expected to make flexible working a default right from day one.
What do you think? Is it time to reconsider remote working? Let’s look at some of the pros and cons.
**The pros of remote working**
- Increased Productivity: Many employees argue that working from home boosts productivity because of there being fewer interruptions when compared to office environments.
- Wider Talent Pool: Flexible work policies enable businesses to recruit from a larger and more diverse pool of talent. For instance, a business can hire staff living in various areas of the country allowing them to tap into a broader or more specialist range of skills.
- Cost Savings: Remote working can reduce overheads for businesses, including office rent, utilities, and other operational costs. This financial flexibility can be particularly beneficial for smaller firms.
**The cons of remote working**
- Collaboration Challenges: In communicating the decision, Amazon’s CEO highlighted that in-person work fosters better collaboration and innovation. The informal discussions and spontaneous idea-sharing that occur in an office environment are often harder to replicate in a virtual setting. This can hinder teamwork and slow down decision-making processes, especially in large businesses.
- Cultural Dilution: Remote working could dilute the culture of the business. Maintaining a strong sense of shared mission and values can be more challenging when employees are spread out and not regularly engaging face-to-face.
- Potential for Bureaucracy: Amazon have linked remote work with a growing number of bureaucratic layers in their business, that slows down their business. Businesses that thrive on agility and quick decision-making may find that remote working introduces inefficiencies.
**Implications for your business**
The debate around remote working remains complex. You may benefit from the flexibility and productivity gains that homeworking can provide. However, if your business relies on close collaboration, you may find that bringing staff back to the office offers greater advantages.
As businesses navigate these decisions, it’s clear that there is no one-size-fits-all solution. The key will be to balance productivity, collaboration, and employee satisfaction so that you achieve the best results for your needs.
See: https://www.bbc.co.uk/news/articles/czj99ln72k9o

Business Finance Week 2024 will run from 24 September to 2 October and includes a variety of national and regional in-person events and webinars.
Business Finance Week is hosted by British Business Bank along with their various partners and can help smaller businesses learn about the various finance options that are available to help them.
Events are being held to cover aspects of finance related to starting your business, innovating, and working capital.
For a full list of the events available and to register, see: https://www.british-business-bank.co.uk/news-and-events/events/business-finance-week

As HMRC intensifies its crackdown on National Minimum Wage (NMW) noncompliance, it’s vital to make sure you don’t fall foul of NMW laws. Compliance can have more complexities to it than many assume, and the risks of getting it wrong are significant.
**HMRC is focusing on SMEs**
It seems that HMRC are targeting SMEs. For instance, they have recently targeted SMEs in regions including Belfast, Liverpool, East Anglia, Watford, and the North East. They have plans to expand to additional areas over time.
**What are the areas of compliance to watch?**
Clearly it is important to make sure that you are using the correct rates of NMW pay. However, compliance isn’t just about paying the correct hourly rate. There are a few areas that you need to be aware of to make sure that you comply with the laws.
1\.   What category is the worker? Under NMW laws, workers are categorised in four different ways - salaried, time-based, output-based, or unmeasured. The category a worker belongs to can alter the method for calculating NMW.
2\.   How much time does the worker work? If you have salaried staff, then you need to monitor the excess hours they work. A salaried worker is entitled to receive NMW for the total hours they work over a year, called their ‘calculated year’. Excess hours could include their turning up early, staying late, working through some of their lunch break, logging on outside of their normal office hours, and business travel. Payments to staff may need to be uplifted to avoid falling foul of the regulations.
3\.   Does a non-employee count as a worker for NMW purposes? In some situations, someone who would not be considered an employee under PAYE may count as a worker under the NMW laws. For instance, paying volunteers beyond expenses, or offering non-cash benefits, could inadvertently classify them as workers under NMW rules.
4\.   Could an after-tax deduction bring a worker below NMW? Deductions from wages, such as those made for benefits or savings schemes, can create unintended problems. A recent tribunal case highlighted that a scheme which was well-intentioned still resulted in noncompliance because it reduced pay below the NMW threshold.
5\.   Are your records complete and accurate? In the event of a dispute where an employee says they have provided time records, but you have not kept a record, HMRC will side with the staff and calculate any arrears based on the information provided by the worker.
**The consequences of noncompliance**
HMRC's enforcement process includes a three-stage approach, that starts softly and becomes heavier where the business fails to put things right. Continued noncompliance can result in penalties of up to 200% of arrears and public naming and shaming on the government website. Such exposure can damage a business’s reputation, affecting recruitment, supplier relationships, and overall growth.
**Proactive steps for compliance**
To mitigate risks, you should conduct periodic and thorough reviews to check that you are complying. This includes assessing potential areas of noncompliance, updating your policies, and ensuring that employment contracts are aligned with NMW regulations. Communication with staff and line managers is also critical to ensure that any issues are flagged promptly. Our payroll team are skilled at applying the NMW rules, so if you have questions on any particular situation, please feel free to contact us and we would be happy to help you.
See: https://www.icaew.com/insights/viewpoints-on-the-news/2024/sep-2024/smes-must-grasp-nuances-of-minimum-wage-compliance

Figures released by the Office of National Statistics last week show that the UK economy showed no growth in July 2024. This is the second month in a row as there was also no growth in June.
However, looking at the three months ending in July, Gross Domestic Product (GDP) – a measure used to assess the economy – has grown by 0.5% when compared to the quarter ended in April.
The figures suggest that the economy is facing a period of stagnation after the growth and optimism we saw earlier in the year.
**What does this mean for your business?**
Oftentimes the GDP figures simply confirm what you have already been seeing, but what could these indications about the wider economy imply for your business?
1\.   Cautious consumer spending: No recent growth in GDP could indicate that consumer confidence is wavering. This can lead to reduced spending, particularly on goods and services that are viewed as non-essential. Businesses in retail, hospitality and non-discretionary sectors may be particularly affected.
2\.   Cash flow pressures: Businesses often rely on steady growth to maintain their cashflow. If sales slow it can make it more challenging to manage cashflow, especially for businesses that have narrow profit margins.
3\.   Investment hesitation: The signs of stagnation may make businesses hesitant to invest in expansion, new hires or capital improvements. If you are a b2b business, you may find it tricky to get customers to commit to projects and need to consider what incentives you can offer to get a sale over the line.
4\.   Potential for government support: If stagnation continues, the government may introduce measures to try and stimulate the economy. These might include tax reliefs or grants. Whether or not these could be helpful will depend on the specific measure proposed.
5\.   Sector specific impact: The figures behind July’s headline GDP rate suggest that the services sector remains relatively consistent with a 0.1% growth for the month, whereas production output decreased by 0.8% and construction output dropped by 0.4%. It could be worth considering whether this provides any opportunities for your business. For instance, if you have suppliers who are noticing a drop in orders, now may be a good time to see if you can negotiate a more preferential rate.
6\.   Supply chain risks: At the same time, if reduced demand or fluctuating costs are affecting your suppliers then this can impact on the security of getting the supplies your business needs. Having good communication with your suppliers can be helpful so that you can pick up on early signs of potential issues or price increases. This will help you to prepare for changes or may signal a need for you to diversify with the suppliers you use.
7\.   Competition and market dynamics: If the market is slowing down and stagnating, competition can increase as businesses fight over a limited pool of consumer spending. Prices and margins can be driven down as a result and make it harder for businesses to stay profitable.
Overall, the lack of growth in GDP suggests that you will need to be cautious and strategic over the next few months. A focus on efficiency, customer retention, and maintaining your financial flexibility may be needed so that you can weather any potential downturns.
Up and down turns in the economy are an inevitable part of business life, but as experienced business advisers we know how to chart a path that can help your business continue to thrive and grow. Please feel free to contact us at any time to see what help and tools we can provide you with.
See: https://www.ons.gov.uk/economy/grossdomesticproductgdp/bulletins/gdpmonthlyestimateuk/july2024

The Plan 1 student loan interest rate reduced to 6% (from 6.25%) from 30 August. This rate change applies across the UK with the Department for Education (DfE), the Welsh Government and the Department for the Economy in Northern Ireland (DfE NI) all confirming the change.
The reduction follows the Bank of England Base Rate changing to 5% earlier in August.
Those running payrolls and payroll bureaus should notice a reduction in student loan deductions for relevant employees in their September payrolls. If not, you may need to confirm that your payroll software has correctly updated.
See: https://www.gov.uk/government/news/change-to-plan-1-student-loan-interest-rate-announcement

Barratt Developments, the UK's largest housebuilder, has reported a significant decline in pre-tax profits, down by three-quarters for the year ending June 2024. This comes as the company completed just 14,000 homes, a sharp decrease from 17,000 the previous year, with forecasts suggesting even lower figures of 13,000 to 13,500 homes for the upcoming year.
For businesses in the construction and property sectors, this slowdown could be a signal of challenging times ahead. High interest rates are deterring potential buyers, while inflation continues to push up costs, creating a ripple effect across the supply chain.
If housebuilders are scaling back their operations, then construction firms, contractors, and suppliers of building materials may need to brace for a reduction in demand.
Architectural firms and estate agents and mortgage brokers may also need to look at strategies to maintain profitability, if project pipelines thin and fewer new homes enter the market.
The new Labour government’s ambitious plans to build 1.5 million homes over the next five years could counter current estimates if the suggested planning reforms, green belt adjustments, and mandatory housing targets for local authorities are effectively implemented.
While these reforms are being welcomed, analysts are suggesting that a further easing of mortgage rates is needed before activity will pick up significantly.
See: https://www.bbc.co.uk/news/articles/c8rx23jdkd5o

A recent report by the British Chambers of Commerce and Tussell has highlighted the ongoing challenges the public sector faces in meeting its procurement targets for small and medium-sized enterprises (SMEs).
Despite the UK government’s commitment to increasing the procurement of goods and services from SMEs, the numbers reveal a persistent shortfall. In 2023, only 20% of the total direct procurement spending in the public sector went to SMEs, amounting to £39.7 billion out of £194.8 billion.
**An overview of the current situation**
The report shows that while the overall value of public sector spending with SMEs has increased by 77% over the past six years, the proportion of total procurement spend directed to SMEs has remained largely unchanged. Local government fared better than central government in this regard, with 34% of its procurement spend going to SMEs, compared to a mere 2% in some individual central government departments.
The conclusion then is that SMEs continue to face significant barriers in accessing and winning public sector contracts. The complexity of procurement processes, high bid costs, and the recent dominance of large procurement frameworks have made it difficult for smaller businesses to compete with established suppliers.
**Could the new Procurement Act provide an answer?**
The Procurement Act, which received Royal Assent in October 2023 and is set to come into effect in October 2024, aims to address these challenges by opening up public procurement to SMEs and social enterprises. The Act introduces a more flexible and streamlined procurement system, with a focus on transparency and fairness.
Key provisions of the Procurement Act include:
- A central digital platform: This new platform will give details of all public sector tenders, making it easier for SMEs to find suitable opportunities and compete for contracts.
- Simplified processes: The Act aims to reduce the complexity of procurement procedures, making it less daunting for SMEs to participate.
- Mandatory Feedback: Public bodies will be required to provide feedback to unsuccessful bidders. This will help SMEs understand how they can improve future bids.
- National Procurement Policy Statement: This statement will guide contracting authorities to level the playing field for SMEs by removing unnecessary barriers and avoiding disproportionate contract requirements.
**What proactive steps could you take?**
If the Procurement Act is successful in reshaping public sector procurement, you could have a significant opportunity to increase your business. Here are some proactive steps you could take to become a public sector supplier:
1\.   Familiarise yourself with the Procurement Act: Understanding the changes introduced by the Act will be crucial. Keep up-to-date with developments and guidelines as they are released, and prepare to take advantage of the new digital platform once it is live.
2\.   Engage with procurement frameworks: Although procurement frameworks have been seen as a barrier, they also present opportunities. You should seek to understand how these frameworks work and explore how to become part of them, potentially in partnership with other businesses.
3\.   Invest in bid preparation: The quality of your bid is crucial in securing contracts. Consider investing in resources or training to improve your bidding skills, including understanding the specific requirements of public sector contracts and how to meet them.
4\.   Seek feedback and adapt: Take advantage of the mandatory feedback provision under the new Act. If you make a bid that is unsuccessful, use the insights you will now get to refine your approach and increase your chances of success in future tenders.
5\.   Network and collaborate: Building relationships with larger suppliers and other SMEs can lead to subcontracting opportunities or joint bids, which can be particularly beneficial when tackling larger contracts.
6\.   Leverage local government opportunities: Since local governments have a higher proportion of spending with SMEs, they may offer a more accessible entry point for you. Focus on building relationships with local authorities and exploring contracts that are well suited to your business’s size and capacity.
While the public sector has fallen short of its procurement targets for SMEs, the forthcoming changes under the Procurement Act could present you with some promising opportunities.
By understanding the new legislation and taking proactive steps, you will be able to better position your business to win public sector contracts and contribute to the growth of your business in this evolving market.
See: https://www.icaew.com/insights/viewpoints-on-the-news/2024/sep-2024/sme-public-sector-procurement-spend-stalls-despite-pledges

Last month, the Home Secretary, Yvette Cooper, announced a significant government crackdown on employers hiring migrants illegally.
**Overview of the government's crackdown**
From Sunday 18 to Saturday 24 August, Immigration Enforcement teams carried out a series of targeted visits to businesses suspected of employing illegal workers, with a particular focus on car washes. Over this intensive week of action, more than 275 premises were targeted. Of these, 135 businesses were issued notices for employing illegal workers, and 85 illegal workers were detained.
**Potential consequences for non-compliant businesses**
The penalties for employing illegal workers are severe. Businesses found in violation can face substantial financial penalties. The maximum civil penalty for employing illegal workers is £45,000 per worker for a first offence and £60,000 per worker for repeat violations.
**Key takeaway for business owners**
In view of the potential penalties, it’s vital you ensure that your business is fully compliant with all employment laws. This includes conducting the necessary right-to-work checks on all employees to ensure they have the legal right to work in the UK.
If you have any concerns or need advice, please get in touch with us. We will be happy to help you.
See: https://www.gov.uk/government/news/hundreds-of-rogue-employers-targeted-in-illegal-working-crackdown  

The Prime Minister, Sir Keir Starmer, speaking from Downing Street last Tuesday, has said that the budget in October will be “painful” and the government would be making “big asks” of the country.
He said that the country would need to be prepared to “accept short-term pain for long-term good” and that those with the “broadest shoulders should bear the heavier burden”.
However, no details were given about what the measures would be, other than Sir Keir reiterated that national insurance, VAT and income tax would not go up.
**What could change?**
There are a number of areas of tax that may be increased, and these could include the following:
-Focus on tax thresholds: By freezing thresholds – the amount of money at which any tax starts to be paid – the government collects more tax as more people are caught by higher rates of tax as their wages rise. Income tax thresholds are already frozen until 2028 and this could be extended.
-Increases in capital gains tax – Capital gains tax rates are lower than income tax rates, so the government may look to increase these.
-Reduce pension tax relief – Currently pension savers receive tax relief at the same rate as their income tax. However, there has been speculation that a flat rate of pension tax relief could be brought in and this would raise funds for the government.
-Raise inheritance tax – The government could raise the rate of inheritance tax or remove some of the reliefs that are available.
If you are concerned about how the budget may affect your situation, please feel free to talk to us at any time and we would be happy to advise you. We will be monitoring the October 30th budget very closely and update you on all the changes!
See: https://www.bbc.co.uk/news/articles/clyn01p5npgo

HM Revenue and Customs (HMRC) have issued a press release debunking some common myths about whether or not someone needs to register to complete a self-assessment tax return.
The basic requirement is that anyone who needs to complete a self-assessment return for the first time to cover the 2023-24 tax year, needs to tell HMRC by 5 October 2024.
Here are the myths and the realities highlighted by HMRC:
**Myth: I don’t need to file a return because HMRC hasn’t been in touch.**
The reality is that it is each taxpayer’s responsibility to determine whether or not they need to complete a tax return.
You may need to register and complete a tax return if you:
-have started to be self-employed and earned gross income of more than £1,000. -earned below £1,000 but want to pay voluntary Class 2 National Insurance contributions to protect your pension and benefit entitlements. -have become a new partner in a partnership. -have received untaxed income above £2,500. \- need to pay the High Income Child Benefit Charge because you receive Child Benefit and you or your partner earned more than £50,000.
**Myth: Tax has to be paid at the same time as the return is filed**
The deadline for paying tax for the 2023-24 tax year is 31 January 2025. Tax can be paid any time before this date, it does not need to be paid at the same time the return is filed.
**Myth: I don’t need to file a return because I don’t owe any tax**
Tax returns need to be completed to claim tax refunds and to claim tax relief on business expenses, charitable donations, and pension contributions. A return also needs to be completed to be able to pay voluntary Class 2 National Insurance Contributions if you want to protect your pension and benefit entitlements.
**Myth: HMRC won’t expect a return from me if I don’t need to file one**
Taxpayers need to tell HMRC if they no longer need to file a tax return, perhaps because they’ve stopped being self-employed or stopped renting out a property. Especially if HMRC have sent you a notice to file a tax return they will expect one and keep reminding you and may charge a penalty if they don’t receive it.
If you think you don’t need to complete a return it is best to tell HMRC as soon as your circumstances change.
**Myth: I have to file a tax return and pay tax on things I sold after clearing out the attic**
Although there has been speculation on this, the tax rules are that selling old clothes, books, CDs and other personal items through online marketplaces do not trigger a requirement to file a return or pay income tax on the sales.
If you are not sure whether you need to file a tax return for the 2023-24 tax year, please just get in touch with us. We’ll be happy to let you know what you need to do and to contact HMRC on your behalf.
See: https://www.gov.uk/government/news/need-to-register-for-self-assessment-top-5-myths-debunked

As a pensioner you were likely dismayed to learn that Winter Fuel Payments are now being restricted to those who are on benefits and Pension Credit. The Winter Fuel Payment is a key benefit to help with increased heating costs during winter that was previously paid to all pensioners. However, with recent changes, the payment is now means-tested and linked to eligibility for Pension Credit.
It could be though that you are eligible for Pension Credit but are not currently claiming. Here’s what you need to know to make sure you don’t miss out.
**Check your eligibility for Pension Credit**
Pension Credit is a vital financial lifeline for many pensioners, especially those on a low income.
While around 1.4 million pensioners already claim this benefit, it's estimated that up to 880,000 eligible households have yet to apply.
If your weekly income is below £218.15 for a single person or £332.95 for a couple, you could be eligible for Pension Credit, which is worth an average of £3,900 a year.
Claiming Pension Credit not only boosts your income but also unlocks additional financial help, such as reduced housing costs, council tax reductions, and the Winter Fuel Payment.
**The importance of claiming before the deadline**
To receive this year’s Winter Fuel Payment, you need to be eligible for Pension Credit during the qualifying week from 16 to 22 September 2024.
To ensure you don’t miss out, you must apply for Pension Credit by 21 December 2024. This allows for your claim to be backdated, covering the qualifying week and securing your entitlement to the Winter Fuel Payment.
The government is actively encouraging pensioners to check their eligibility and apply as soon as possible. During September, the Department for Work and Pensions (DWP) will be running a Pension Credit Week of Action, teaming up with local authorities and charities to raise awareness and tackle misconceptions that might prevent people from applying.
**Don’t let common myths stop you**
Many pensioners mistakenly believe that having savings, a private pension, or owning a home disqualifies them from receiving Pension Credit. This is not necessarily the case. The DWP’s online [Pension Credit calculator](https://www.gov.uk/pension-credit-calculator) can help you determine how much you could receive based on your individual circumstances.
**How to apply for Pension Credit**
Applying for Pension Credit can be done in several ways:
-Online: Visit the [Pension Credit page on GOV.UK](https://www.gov.uk/pension-credit) and use the online application form. -By Phone: Call the Pension Credit claim line on 0800 99 1234 (Monday to Friday, 8 am to 6 pm). -By Post: Download and complete a paper application form from the GOV.UK website.
When you apply, you’ll be asked if you want to backdate your claim to cover the three months prior to your application date, ensuring you meet the qualifying period for the Winter Fuel Payment.
**Act now to secure your benefits**
With winter not too far away, it’s important to check your eligibility and apply for Pension Credit as soon as possible. This not only secures your entitlement to the Winter Fuel Payment but also ensures you receive the financial support you deserve. If you or a loved one could benefit from Pension Credit, don’t delay—take action today.
If you would like any help in checking your eligibility for Pension Credit or making a claim, please give us a call. We would be happy to help you!
See: https://www.gov.uk/government/news/pension-credit-awareness-drive-as-thousands-of-eligible-pensioners-yet-to-claim--2

As GCSE results day approaches on 22 August 2024, many families are considering the next steps for their school-leaving children. If your child plans to continue in approved education or training, it’s important to extend your Child Benefit claim before 31 August to avoid missing out on financial support.
**When can you extend your Child Benefit?**
Child Benefit can continue if your child, aged 16 to 19, is enrolled in full-time non-advanced education or approved unpaid training.
This includes:
**Non-Advanced Education:** -A levels or Scottish Highers; -International Baccalaureate; -T levels; -NVQs up to level 3; and -Home education, if started before the child turned 16, or after 16 with a special educational needs statement assessed by the local authority.
**Approved Unpaid Training:** \- In Wales: Foundation Apprenticeships, Traineeships, or the Jobs Growth Wales+ scheme; \- In Northern Ireland: PEACEPLUS Youth Programme 3.2, Training for Success, or Skills for Life and Work; and -In Scotland: the No One Left Behind programme.
If your child will be continuing their education via one of these routes, then you can extend your Child Benefit payments.
**When Can't You Extend Child Benefit?**
You cannot extend Child Benefit if your child is entering full-time employment, starting an apprenticeship that’s part of a job contract, or enrolling in a course not classified as non-advanced education.
**How to Extend Your Child Benefit Payments**
To extend your claim, you need to inform HM Revenue and Customs (HMRC) by 31 August 2024.
Fortunately, the process is quite simple and can be done online via GOV.UK or the HMRC app. You’ll need a Government Gateway user ID and password, which you can easily set up if you don’t have one already. Have your National Insurance number or postcode, and two forms of ID ready to register.
So far, more than 270,000 parents have successfully extended their claim digitally. This method updates your records immediately and saves you the hassle of waiting on the phone.
If you are unable to handle the claim online, then you can still contact HMRC by post or phone.
**Don’t miss out**
Child Benefit can be a significant financial help, offering up to £1,331 annually for the first or only child, and £881 for each additional child. Missing the deadline means your payments will stop.
Even if you’ve opted out of receiving payments due to the High Income Child Benefit Charge, it’s essential to keep your claim details up to date. You can opt back in quickly if your circumstances change.
**What if your child changes their mind?**
If your child decides not to continue with their education or training, you can easily inform HMRC online or via the app. Your Child Benefit payments will be adjusted accordingly. You can also check your claim status, view payment details, and manage your claim through the app or online portal.
**Act Now**
With the 31 August deadline fast approaching, don’t delay in extending your Child Benefit claim.
If you need any help with your claim, please feel free to get in touch with us. We would be happy to help you!
See: https://www.gov.uk/government/news/extend-child-benefit-for-your-teen-by-31-august

The Office of National Statistics has reported that inflation for July has risen to 2.2%. This is the first rise of 2024 after inflation fell during the early part of the year and then settled at 2% for May and June.
A rise was expected because energy prices are now falling by less than they were doing a year ago.
This means that inflation has now gone back above the Bank of England’s target. However, the Bank themselves expected this, and many economic forecasters are predicting that inflation will stay above 2% for the rest of the year.
Encouragingly, inflation for services dropped from 5.7% to 5.2% in July. This was a larger drop than expected and is primarily due to a fall in inflation on restaurant and hotel pricing. It seems this may be due to the temporary effect on pricing brought about by Taylor Swift’s concerts, as well as increases to cover the minimum wage uplifts now levelling off.
The increase suggests that there is still pressure on prices and so business owners need to continue careful budgeting of costs as well as reviewing pricing to ensure profit margins.
See: https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/consumerpriceinflation/latest

The recent riots have left many small businesses dealing with damage and disruption.
The Federation of Small Businesses (FSB) Insurance Service has created some guidance to help businesses that have been affected.
The guide includes practical steps that businesses can take when experiencing or expecting problems.
It also encourages businesses to check their insurance coverage. All policies are different so it may be necessary to check with your broker to confirm what you are covered for.
The Riot Compensation Act 2016 covers what government compensation is available, but not all instances of damage or loss during a civil disturbance is covered. To check the government guidance on this, see [here](https://www.gov.uk/government/publications/riot-compensation-guidance-leaflet/riot-compensation-claims-quick-guide-for-claimants#:~:text=The Riot Compensation Act 2016 (RCA) gives victims of criminal,from the impact of rioting).
To review the FSB guidance, see: https://www.fsb.org.uk/resources-page/insurance-guidance-for-small-businesses-affected-by-the-riots.html

The latest annual update to Student Loan interest rates was made last week by the Department for Education.
Different rates and thresholds apply depending on the type of student loan and the new rates will apply from 1 September 2024 to 31 August 2025.
Those running payroll may want to be aware that the rates are changing in case of queries from staff with student loans who notice a change in their deduction in their September pay packet.
For details of the rates, see: https://www.gov.uk/government/news/student-loans-interest-rates-and-repayment-threshold-announcement--5

A small business from Barnsley, Slime Party UK, has successfully secured government-backed financing, enabling it to significantly expand its operations, create new jobs, and develop new product lines.
This success story provides a valuable blueprint for other small businesses seeking to grow, especially those looking to enter or expand in export markets.
**Slime Party UK’s journey: From kitchen to global markets**
Slime Party UK began as a humble kitchen project by its founder, Ruby Sheldon, producing a mess-free variety of sensory putty. The business quickly gained traction and now supplies some of the largest toy retailers globally. However, despite its popularity, the company faced significant challenges in securing the necessary financing to continue its growth, particularly in export markets.
**Overcoming financing challenges**
With a £150,000 turnover, the company was too small to qualify for traditional trade finance packages, a common issue for micro-enterprises. So, Slime Party UK reached out to UK Export Finance (UKEF), the UK government’s export credit agency.
UKEF connected the company with Newable Commerce, a specialist lender focused on supporting small and medium-sized enterprises (SMEs). Backed by UKEF’s General Export Facility (GEF) guarantee, Newable Commerce were willing to provide a £55,000 financing package to Slime Party UK.
This funding has been instrumental in the company’s growth, allowing it to open a new 15,000 square foot factory in Barnsley, increase its staff by 50%, and expand its product range.
The financing has also enabled Slime Party UK to meet the high demand from its export markets, particularly in Europe and the Middle East, including Lebanon, Malta, and Ireland.
The business is now well-positioned to continue its expansion into new markets globally, thanks to the financial backing and strategic support it received.
**Lessons for other small businesses**
There are some key takeaways for all small businesses, especially those involved in exporting, including:
1\.   Explore Government-Backed Financing: UKEF’s General Export Facility and other government-backed financing options can be a lifeline for you if you are struggling to secure traditional financing for your business. These resources are designed to support SMEs at various stages of growth, particularly those looking to expand internationally.
2\.   Be willing to partner with specialist lenders: Working with non-bank lenders, like Newable Commerce, that specialise in supporting SMEs, can provide access to tailored financing solutions that align with your business’ unique cash flow needs and growth objectives.
3\.   Leverage Networking Opportunities: UKEF not only provided financial support but also connected Slime Party UK with Dynamic Funding Limited, a broker that helped the business secure additional private financing. Building a network of financial and strategic partners can open doors to you for new opportunities and resources.
4\.   Invest in Growth and Innovation: With the right financing in place, Slime Party UK was able to invest in new facilities, staff, and product development. For your business, securing funding is just the first step - investing wisely in areas that will drive growth and innovation is crucial.
If you are a small business looking to follow in Slime Party UK’s footsteps, the message is clear: the right financial backing, coupled with strategic partnerships, can unlock significant growth opportunities and pave the way for success.
See: https://www.gov.uk/government/news/yorkshire-toy-maker-grows-with-government-backing