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HMRC has estimated that around a million people missed the 31 January 2026 Self Assessment tax return filing deadline. It confirmed that 11.48 million people filed their tax return on time, with most people filing online. As usual, there was a significant rush on deadline day itself with nearly half a million people filing on 31 January, including more than 27,000 in the final hour before midnight. The busiest hour was between 5 pm and 6 pm, when almost 33,000 returns were submitted. Despite this, it seems that a million people missed the deadline altogether. If you missed the deadline Anyone who still needs to file should do so as soon as possible. HMRC applies a fixed £100 late filing penalty immediately, even if no tax is owed. Further penalties apply the longer the return is outstanding: - After three months: £10 per day (up to £900).  - After six months: 5% of the tax due or £300, whichever is higher.  - After 12 months: another 5% or £300. There are also penalties for paying tax late - 5% of anything unpaid at 30 days, six months and 12 months - plus interest. If you need help filing your tax return, please get in touch. We would be happy to help you. What’s coming next Making Tax Digital for Income Tax will start from April 2026 for many sole traders and landlords. From 6 April 2026, Making Tax Digital (MTD) for Income Tax becomes mandatory for sole traders and landlords with qualifying income over £50,000. MTD involves keeping digital records and sending quarterly updates to HMRC. If you need help getting ready for MTD, please get in touch. We can help you with all aspects of MTD, including choosing suitable software, bookkeeping and submitting the quarterly updates and end of year return. See:

The Competition and Markets Authority (CMA) has announced a set of proposed measures aimed at increasing fairness, transparency and choice for businesses and consumers using Google’s search services in the UK. Given that Google accounts for more than 90% of general search queries in the UK and took over £10 billion in UK search advertising spend last year, these changes could have a meaningful impact on how businesses promote themselves online. Google was designated with Strategic Market Status (SMS) in October 2025, which doesn’t imply wrongdoing, but it does allow the CMA to impose conduct requirements. Below is a summary of what is being proposed and what it may mean in practice for businesses relying on Google to reach customers. Improving user choice in search Google is normally set as the default search service in its Android operating system and Chrome browser. The CMA is proposing that it be made easier for users to choose which search service they want to use and be able to switch services more easily. If implemented, Google would be required to display more choice screens and give users the ability to change which search service they want to use at any time. This change intends to help users select alternative search providers rather than defaulting to Google. That might mean a need to review advertising spend with Google but could also lead to lower advertising costs if competition between the various search providers increases. Publisher choice and transparency Content publishers, such as news outlets, blogs and others producing specialist content, are seeing a decline in the number of ‘clicks through’ to their websites because of generative AI features that Google is using. The measures proposed would allow publishers more control over whether their material can be used within AI features, such as AI Overview, including being able to opt out. There would also be clearer information for publishers on how their content is being used and Google would be required to take steps to ensure that any content used is properly attributed to the publisher. Fair ranking Search services are a key way of finding online customers, but many businesses lack confidence in how Google ranks websites. Google can make changes to its algorithms at any time. This can result in additional costs to businesses as they try to understand what has changed and adjust their websites to ensure they stays visible in search rankings. The CMA is looking to impose some ‘fair ranking’ conduct requirements. These include: - Google not being allowed to discriminate based on whether the website has chosen to advertise on or has some other commercial arrangement with Google. A business opting out of its content being used in Google’s AI features could also not be discriminated against. - Greater transparency on search rankings and a requirement to provide sufficient notice and information on upcoming changes. - A clear and accessible process for complaints, with accountability to the CMA. For businesses that rely heavily on search visibility, this could offer more confidence that search performance isn’t being undermined by opaque algorithms or unfair advantages. Data portability Google currently offer users the ability to transfer their search data to another provider. However, this is provided voluntarily, and the CMA is looking to make it a legal requirement. What happens next? The CMA is consulting on the proposals, and feedback is open until 25 February 2026. A final decision will follow once the responses have been assessed. To review the consultation and participate, see:

Enterprises that pay business rates are being encouraged to check their current property valuation and make sure the details held by the Valuation Office Agency (VOA) are correct. If you believe your valuation is wrong, you have until 31 March 2026 to request any changes to your current valuation. After that, a new rating list comes into effect on 1 April, and you will only be able to request changes to your new 2026 valuation from that date. To request any changes, you need a business rates valuation account. If you haven’t used yours recently, it’s worth checking that you can still log in. The verification process to claim a property can take up to 15 working days, so it’s sensible not to leave this until the last minute. You will need a Government Gateway user ID or a One Login account to sign in to your account. Support is available on [GOV.UK](https://www.gov.uk/guidance/register-for-the-service) for anyone needing help with registration. See:

The latest Business Confidence Monitor, an Institute of Chartered Accountants in England and Wales survey, shows confidence continuing to fall. Confidence has now fallen for six consecutive quarters and is now at its lowest since the final three months of 2022. The survey, which gathered views from 1,000 business leaders, shows growing concern over tax complexity and the wider outlook for business activity. Tax pressures rising A record 64% of businesses said the tax burden was becoming a greater challenge, up from 60% in the previous quarter. According to the report, this reflected uncertainty over what tax changes might be included in the Autumn Budget 2025, combined with the effects of previous tax rises feeding through. Regulation was the second biggest reported challenge, with 51% of businesses saying it was holding back performance. Many cited the Employment Rights Bill as a contributing factor. Differences between sectors Some sectors remain noticeably more pessimistic. Property, retail and wholesale continue to show the weakest sentiment, with construction close behind. Exporters, however, were more upbeat than non‑exporters. IT and communications was the only sector to report a positive score, at +0.3. Employment and pay trends Employment growth slowed to 0.8% in the quarter, the lowest figure since mid‑2021. Manufacturing and engineering, retail and wholesale and transport reduced their headcount as 2025 ended. However, it seems that transport and storage are the only sectors expecting to cut jobs further during 2026. Salary growth also eased to 2.9%. This is still above pre‑pandemic levels but lower than the rises seen in recent years. The expectation is for pay to increase at a similar pace over the next 12 months. Sales expectations improving Despite the fall in overall confidence, there are some bright spots. Expectations for domestic sales improved for the first time since 2024, even though actual growth slowed slightly to 2.9%. Export sales growth rose to 2.5% and is also expected to continue improving in 2026. Capital investment grew modestly to 2%, although businesses expect to slow their spending plans over the coming year. What this means for your business The report paints a picture of businesses managing rising costs while holding back on hiring and major investments. At the same time, the slight improvement in sales expectations suggests many firms are cautiously optimistic about trading conditions in 2026. If you would like to review how these economic trends might affect your business plans, particularly around staffing, investment or cash flow, please feel free to get in touch. We would be happy to help you! See:

If you are a small VAT-registered business, how you calculate your VAT could make a real difference to your cash flow and the time you spend keeping records. For some businesses, the standard method for calculating VAT is the best choice, but for others, their circumstances mean the VAT Flat Rate Scheme may be worth considering. Here we review some of the factors involved in determining whether the VAT Flat Rate Scheme could work for you. Comparing methods Under the standard method you charge VAT on your sales and reclaim VAT on your purchases. You then pay the difference to HM Revenue & Customs (HMRC). The Flat Rate Scheme uses a different calculation. You still charge your customers the usual VAT rate. However, instead of reclaiming VAT on most purchases, you pay a fixed percentage of your VAT-inclusive turnover to HMRC. The percentage amount depends on the industry your business belongs to. Eligibility rules apply. Businesses may be able to join the VAT Flat Rate Scheme if their VAT turnover is £150,000 or less (excluding VAT). When the Flat Rate Scheme might help The Scheme can work well for businesses when VAT-able expenses are low. For example, a consultant or designer who mainly sells their time may find the flat rate percentage more favourable than reclaiming VAT under the standard method. Some business owners also prefer the simplicity. Because you don’t claim VAT on purchases, other than certain capital assets over £2,000, the calculations can be quicker. When the standard method may be better If your business regularly buys goods or services with VAT on them, reclaiming VAT through the standard method is often more cost-effective. The same can be true if you regularly make larger purchases. Choosing a method The best way to be sure which method is right for you is to run the numbers and compare. If you would like advice on whether the Flat Rate Scheme is right for you, give us a call. We are happy to help!

It has been announced that eligible pubs and live music venues in England will receive a 15% discount on their business rates bills in 2026/27. Rates bills will then be frozen in real terms for a further two years. The British Beer and Pub Association (BBPA) has said that pub landlords will breathe a sigh of relief and that the relief will “stave off the immediate financial threat posed by accelerating business costs.” Wider concerns remain over the challenge of rising costs and squeezed profit margins. Which pubs are eligible? To be eligible, a pub must meet all of the following criteria. - Be open to the general public. - Allow free entry other than when occasional entertainment is provided. - Allow drinking without requiring food to be consumed. - Permit drinks to be purchased at a bar. Businesses that will be specifically excluded are: - Restaurants, cafes, nightclubs, snack bars. - Hotels, guesthouses, boarding houses. - Sporting venues. - Festival sites, theatres, cinemas. - Museums, exhibition halls. - Casinos. The government has advised local authorities that the above list is not intended to be exhaustive, and the local authority will have discretion to make the determination where eligibility is unclear. The intent of the policy is to benefit pubs that would be classified as such by the natural meaning of the word. Being owned and operated by a brewery would be one example of this. Which live music venues are eligible? Properties that are wholly or mainly used for the performance of live music to entertain an audience will qualify for the relief. The property is still likely to qualify if it is used for other ancillary activities, such as the sale of food and drink to audience members or is infrequently used in a way that does not affect its primary use, such as use as a polling station or fortnightly community event. A property that is wholly or mainly used as a nightclub or theatre under the Town and Country Planning (Use Classes) Order 1987 (as amended) will not be considered to be a live music venue for the purposes of the relief. What is the position in Scotland, Wales and Northern Ireland? Business rates are devolved in Scotland, Wales and Northern Ireland. The Welsh government has already indicated that it will explore whether additional support for pubs is needed once the final details of the announcement are known. See:

UK wage growth eased to 4.5% between September and November 2025, according to the Office for National Statistics, reflecting a notable slowdown in private sector pay. Pay in private businesses rose just 3.6%, the lowest rate in five years. Public sector wages increased 7.9%, however, the ONS has said that this was likely due to pay awards being brought forward when compared with the previous year. The labour market showed further signs of cooling. The number of people on company payrolls fell by 135,000, with the decline concentrated in retail and hospitality. Youth unemployment for 16-24-year-olds remained elevated at 15.9%, while overall unemployment held at 5.1%, the highest since early 2021. Are there any takeaways for businesses? Economists have interpreted slower private sector pay growth as something that will ease inflationary pressures, which may help in further cuts to interest rates. Slower private sector pay growth suggests that there could be some relief to wage pressures over the next few months, although with an increase to national minimum wage rates coming in April, hiring is unlikely to get cheaper. The weaker hiring activity by retail and hospitality businesses suggests that consumers are feeling the pinch, which could have implications for sales income for many businesses. See:

A national expansion of WorkWell, a health-and-employment support service, is set to take place across England, following a successful pilot that helped more than 25,000 people stay in or return to work. The programme aims to support up to 250,000 more people with health conditions, and forms part of the government’s wider efforts to tackle long-term sickness absence and economic inactivity. For employers, the key point is that WorkWell is designed as an early intervention service - stepping in before health issues lead to prolonged absence or an employee leaving work altogether. Long-term sickness remains a significant issue for businesses. Around 2.8 million people are currently out of work due to long-term health conditions, and fit notes are issued more than 11 million times a year. How employees can access support Participants in the programme can be referred through: - Their employer. - A GP. - Jobcentre Plus. - Local services. - Self-referral. Each participant receives personalised support from a Work and Health Coach. Services offered vary depending on location, but can include physiotherapy, mental health support, workplace adjustment advice for employers and ongoing health condition management. Businesses may want to be aware of WorkWell as a referral option for staff struggling with health issues. See:

Small Business Britain is set to roll out its Small and Mighty Enterprise Programme, a six-week online course designed to help sole traders and micro businesses unlock growth opportunities. The programme combines expert guidance, mentoring, and practical resources to equip participants with a twelve-month action plan to grow and flourish over the next year. Delivered entirely online, it offers flexible learning accessible from anywhere in the UK, making it suitable for business owners with busy schedules. Key features of the programme include: - Live weekly sessions recorded and available on a private Small Business Britain website available exclusively to participants. - Weekly worksheets developed by each week’s expert trainers to reinforce key learning outcomes. - 1-2-1 and group mentoring, providing one hour of personalised guidance across the six weeks. - Access to an exclusive community of peers and mentors for networking, advice, and sharing experiences. · - A personalised twelve-month Action Plan to guide business growth. The course runs from 2 February to 9 March 2026, with sessions held every Monday at 10am. Small business owners looking to develop their skills, expand their networks, and plan for growth can find more information and register via the [Small & Mighty Enterprise Programme Registration](https://docs.google.com/forms/d/e/1FAIpQLSfwwb3v7RgjwoY9876z_SGZXbkttVtwwQnc8uP00bmtjxgkjw/viewform) page.

With just 10 weeks or so to go until the new tax year, many businesses are preparing for the changes that Making Tax Digital (MTD) will bring. From April, sole traders and landlords with an income of over £50,000 will need to submit quarterly updates to HMRC. It is estimated that around 900,000 individuals will be joining in April. If you are affected, this will be a major change and the earlier you can be prepared, the better. Using approved software MTD requires the use of software. Whether you are already a ‘digital native’ with your bookkeeping, or have not yet made the jump, it will be vital to make sure that any accounting software you use is HM Revenue & Customs (HMRC) approved for MTD use. Use of software for keeping your accounting records can have benefits beyond helping you to comply with MTD. For instance, software can help streamline some of your work, make it easier to forecast your cash flow, help inform you in making financial decisions and help to reduce mistakes. That means that when you are selecting accounting software, it is worth considering some of the other advantages it could give you and your business. Registering for MTD Based on your tax return information, HMRC will get in touch with you to let you know that you need to get ready for Making Tax Digital. However, HMRC will not sign you up automatically. This is something you will need to do, and it is important that you do this in time. Are there any exemptions? There are some automatic exemptions from MTD. For instance, if you are submitting a tax return as a trustee or as a personal representative of a taxpayer who has died, there is no need to sign up for MTD. Generally, HMRC will tell you if you are automatically exempt. In addition to automatic exemptions, there are situations where an exemption can be applied for. So, it pays to check whether your situation might mean you can apply. What if your income is less than £50,000? MTD is being given a phased introduction. MTD will become mandatory for sole traders and landlords as follows: - 6 April 2026 - those with income above £50,000 - 6 April 2027 - those with income above £30,000 - 6 April 2028 - those with income above £20,000 It is possible to voluntarily sign up sooner if you wish. Does MTD apply to partnerships? Not yet, however, HMRC have advised that business partnerships will also need to use MTD in the future. The timeline for when this will happen will be set out at a later date. Would you like help with MTD? Choosing software can be a bit of a minefield, so if you would like support, we can offer you a tailored recommendation and any training you need. We can also handle your registration with HMRC. If you would like ongoing help with bookkeeping, filling in the quarterly returns, or you just want us to handle the end-of-year return, please get in touch. We would be happy to help you!

If you are new to being self-employed or being a landlord, Self Assessment can feel like one of those jobs you know you should understand better, but never quite get around to. When do you actually pay the tax? Why does January seem to be so expensive? And what on earth is a “payment on account”? In this article, we’ll walk you through how Self Assessment tax payments work in practice, the key dates to watch, and how to avoid nasty surprises by planning ahead. Understanding Self Assessment payments Once your tax return is completed and filed, HM Revenue & Customs (HMRC) calculate how much tax you owe on all income you have earned outside of PAYE. Unlike tax taken automatically from a salary, you are responsible for paying the tax yourself. That is why knowing the deadlines is crucial. For most people, there are two main types of payments to make each year: 1\.   Payment on account - This is essentially a prepayment for your next year’s tax. When your tax bill for a year is over £1,000, HMRC will require you to make two equal payments on 31 January and 31 July. Think of it like a deposit on your tax bill. 2\.   Balancing payment - This is the top-up for anything left over once your tax return is finalised and submitted. It’s due by 31 January following the end of the tax year. For example, say your tax bill for 2023/24 was £3,000. You will likely have paid £1,500 on 31 January 2025 and another £1,500 on 31 July 2025 as payments on account. Then, if your tax bill for 2024/25 is £3,200, you will pay the £200 balancing payment on 31 January 2026. You will also pay a £1,600 payment on account against the next year’s tax bill on the same date, which means you would pay a total of £1,800 on 31 January 2026. If you are new to Self Assessment, then you probably will not have made any payments on account for the first tax year that you file a tax return for. So, you will need to pay the full balance for the entire tax year on the 31 January following the tax year end. In other words, if your tax bill for 2024/25 is £3,200, you’ll need to pay £3,200 on 31 January 2026. You’ll also pay a £1,600 payment on account against the next year’s tax bill on the same date, which means you’d pay a total of £4,800. No wonder January can feel so expensive! How to pay Paying is straightforward once you know the methods. These days most people pay online through their HMRC account by bank transfer or by debit card. You can also use the HMRC app to pay your bill through your bank’s app or by using online banking. You just need the reference numbers to make sure the money goes to the right place. Avoiding surprises Late or missing payments can lead to penalties and interest charges, so planning ahead is essential. A good tip is to set up a calendar reminder so that you don’t forget to make the payment on time. Keeping a separate pot of money for tax that you save each month can also prevent you from scrambling at the last minute. If you need help completing your tax return or want advice on paying tax, please get in touch. We would be happy to help you! See:

It appears that the government has backtracked on plans to require workers to register with its new digital ID programme to prove their right to work in the UK. While right-to-work checks will still be carried out digitally by 2029, such as by using biometric passports, registering for a digital ID will be optional. Transport Secretary Heidi Alexander confirmed that mandatory digital right-to-work checks will be brought in to help crack down on illegal working, but that the digital ID will be one way that a worker could use to prove their eligibility to work. The idea of compulsory digital IDs has proved unpopular with nearly three million people signing a parliamentary petition to oppose their introduction. Details on how the digital ID will work are not yet available. Many expect it to be based on the Gov.uk One Login and the yet to be launched, Gov.uk Wallet. In the meantime, it is already possible to use government-certified digital verification services to do passport checks on British and Irish citizens. The Home Office also provide an online service for verifying the status of non-British or Irish citizens where the individual’s immigration status is held electronically. See:

The Department of Work and Pensions (DWP) has confirmed that all key auto-enrolment pension thresholds will remain unchanged for 2026/27. This means: - The auto-enrolment earnings trigger stays at £10,000 - the annual pay above which employees must be automatically enrolled. - The lower earnings limit remains at £6,240. - The upper earnings limit remains at £50,270. These thresholds determine which employees are eligible for automatic enrolment and the portion of earnings in respect of which contributions need to be made. Employees who earn less than the earnings trigger can still opt in to their employer’s workplace pension. It’s important to remember that if they earn between the lower earnings limit and enrol, the earnings trigger a mandatory employer contribution. With thresholds unchanged, this should mean there is no need to adjust your payroll systems or processes in the coming year. If you would like support with your payroll system and auto-enrolment, please give us a call. We would be happy to help you! See:

HM Revenue & Customs (HMRC) reports that more than 6.36 million people have already submitted their Self Assessment tax return for the 2024/25 tax year. However, they say around 5.65 million taxpayers still need to file, with the statutory deadline of 31 January 2026 now close. While filing remains possible right up to the deadline, leaving matters late can limit your options if you suddenly find information is missing or if the amount of tax you need to pay is more than you expected. Filing and payment are separate steps It is worth being aware that submitting your tax return does not mean that you must immediately pay any tax due. Tax due for 2024/25 must be paid by 31 January; however your return can be filed at any time before that date. This allows you to confirm the amount you owe and gives you time to arrange payment. Penalties for late filing and late payment There are automatic penalties that HMRC will charge if the return is not filed by the 31 January deadline. - An initial £100 late filing penalty is charged even if you do not owe any tax.   - If the return has still not been filed after another three months, daily penalties of £10 per day (up to £900) can be charged.   - After six months, a further penalty of £300 or 5% of the tax due is charged.   - After 12 months, another £300 or 5% is charged. Penalties are also charged for late payment of tax. Five per cent of the unpaid tax is charged at 30 days, six months and 12 months after the deadline, alongside interest on the overdue amount. If you have not yet filed your return and would like help, please get in touch as soon as possible to make sure you do not miss the deadline. See:

The start of a new year is a natural moment to take stock of your business. You probably have ambitions for your business, but you also want it to help you reach your personal goals. Many business owners take time out to periodically set priorities for their business to support their wider life objectives. This kind of strategic planning involves stepping back from day-to-day work so you can consider the bigger picture. It is about deciding where you want your business to be and how to get there. How to do it A practical approach to strategic planning often involves: - Reviewing your aspirations: What do you want to achieve both in the business and in your personal life? Where would you like to be in 12 months, five years, ten years? What will it take to get you there? - Reviewing the previous year: What went well and what didn’t? Which of your products or services performed best? Which customers were the most profitable, or perhaps nicest to work with? Which staff showed potential to take on more responsibility? Questions like these can help you identify what might be possible in the year ahead.   - Setting objectives: This involves setting some clear and measurable goals for the next 12-24 months. These might relate to sales and revenue, reducing certain costs, new product launches, training, or investment.   - Identifying key actions: Each goal needs to be broken down into concrete steps. You can then assign responsibilities and set timelines for those steps.   - Monitoring progress: Over the year, you can then review how the business is doing against those actions and adjust as you need to. Keep your personal goals to the fore As you work through these steps, it can be helpful to keep your personal goals clearly in mind. Otherwise, you may work hard to achieve a business objective but find it has negatively impacted your life outside of work. For example, while looking at where you want your business to be financially in the next 12 months, consider how the profits could support your personal plans, such as saving for a home, investing in a pension, or taking more time off. Alternatively, a new product launch might increase revenue, but it could also require long hours. So, how will this fit with your personal priorities, like time with your family or maintaining your health? How to start Strategic planning is difficult to do while dealing with the day-to-day demands of your business. The best way to start is often to block out some dedicated time where you are free to think about your aspirations and objectives. You might also want to involve key team members as you review 2025 and consider what is possible for 2026. Using an external adviser can also help provide a neutral, objective view that helps you to work smarter, not harder. If you would like a hand, we can help you in setting priorities, modelling potential scenarios, considering the financial and tax impact of decisions and turning your objectives into actionable steps. Get in touch and we would be happy to help you build a roadmap that supports both your business and personal goals in 2026.

HM Revenue & Customs (HMRC) has issued a warning about scams ahead of the 31 January Self Assessment deadline. According to HMRC, more than 4,800 Self Assessment scams have been reported to them since February 2025. In all, they have received more than 135,500 reports of suspected scams, including 29,000 that referred to fake tax refund claims. Scammers will often target taxpayers around peak filing periods, using persuasive or threatening tactics to obtain personal information or try and get the individual to make a payment to them. Common tactics include: - Fake tax demands via email, text or phone calls. - Claims of refunds that require the recipient to provide banking details. - Threats of legal action or arrest. Lucy Pike, HMRC’s Chief Security Officer, confirmed that scammers mimic HMRC to try and catch unsuspecting victims out. Her advice is: "If any emails, text messages or phone calls appear suspicious – don’t be lured into clicking on links or sharing your personal information - report it directly to HMRC. Just search ‘report and HMRC scam’ on GOV.UK to find out more" HMRC have confirmed that they will never: - Leave voicemails threatening legal action or arrest. - Ask for personal or financial information via text message or email. - Contact someone by email, text or phone to inform them about a refund or ask them to claim one. If you are unsure about a message you have received, please feel free to contact us and we will be happy to confirm whether it is genuine or not. See:

The UK economy continues to show a mixed picture, with recent data highlighting both relief for households and ongoing challenges for businesses. Inflation slows Consumer price inflation fell to 3.2% in November, down from 3.6% the previous month. The drop was largely driven by lower prices for food, clothing, and alcohol, with particularly large decreases in cakes, biscuits, and breakfast cereals. This has perhaps provided some respite for households ahead of the festive season. Labour market softens The unemployment rate rose to 5.1% in the three months to October, with younger workers hardest hit as youth unemployment has increased by 85,000. These figures likely reflect the higher employment costs that came into effect in April 2025 and many businesses may have adjusted or delayed hiring plans while waiting to see what would be contained in the recent Budget. Wage growth is still above inflation, which may be making employers cautious about hiring, though the impact could ease as private sector pay rises appear to be slowing. Economic growth remains fragile Official figures show the UK economy contracted by 0.1% in October and over the three months to October. Weakness in the production sector, particularly vehicle manufacturing which was affected by the Jaguar Land Rover cyber-attack, and flat growth in services contributed to this slowdown. It seems likely that both consumer and business spending was dampened by uncertainty ahead of the Budget. Interest rate cut In response to these conditions, the Bank of England has reduced its base rate from 4% to 3.75%. The cut aims, in part, to support growth by lowering borrowing costs. Where you have variable rate borrowings this could be good news. As the banks adjust to the new rate, it may also be a good time to consider whether refinancing could lower your business’ costs. 

With 2025 coming to a close, you may already be starting to reflect on how the year unfolded in your business. Your expectations may have been exceeded in some areas. Perhaps you found a new source of revenue that grew faster than you anticipated, or you had a new customer relationship that really took off. On the other hand, you might have found you were limited by rising costs, difficulties in finding staff, or changes in what your customers expect. The economy itself has been far from predictable. While inflation does seem to have eased slightly in recent months, higher wage costs and shortages in skills have been significant factors for many businesses. You may also be thinking about how the business has contributed toward your broader goals. For instance: - Did it grow in the ways you planned? - Did it give you the flexibility, resilience or capacity to pursue new opportunities? These questions perhaps show where the business supported your ambitions, or where it might have held you back. With these thoughts in mind, the festive break may provide a natural opportunity to consider some of your strategic priorities in 2026. What can you do to build on this year? For instance, did you notice any patterns emerging over the past twelve months on which of your products or services truly delivered growth for your business? Or which customer or client relationships were the most valuable? Where did your business feel most stretched by things like rising costs, difficulties in finding staff, or changes in customer expectations? Your observations may well help you in thinking about what your priorities could be for the year ahead. How can you maintain resilience in the business? The wider economic environment and day-to-day pressures are likely to continue shaping the decisions you make in 2026. Have you found areas where the business has shown resilience in dealing with rising costs, maintaining customer loyalty, or responding to opportunities quickly? These are strengths you can really continue to build on. What could be your goal for 2026? You might be thinking about growing your business in 2026. For instance, reaching new customers in different areas, adding to your team, or investing in new technology to make your business run more efficiently. Or maybe you see value in consolidating the gains you made in 2025, concentrating on what has delivered the strongest returns and take a leaner, more focused approach in 2026. However you are thinking at this time of year though, we hope that you are able to thoroughly enjoy any time off you have coming. 2025 has been a year of hard work and any rest you get is well deserved. We look forward to supporting you in 2026, helping you to build on the progress you have made, and seeing what the new year brings for your business.

The latest Budget was packed with policy announcements, but according to the Office for Budget Responsibility (OBR), these policies will not really change the UK’s growth outlook over the next five years. Compared with the forecast it prepared in March 2025, the OBR has lifted its expectation for growth this year but then marks it down every year through to 2030. If you were hoping for a clearer sense of the economy’s direction after the Budget, the message is mixed at best. No Further NI Increase One point of relief from the Budget was what didn’t happen. After last year’s significant rise in employers’ National Insurance contributions, there were no major new tax costs for employers. However, meaningful pro-business measures were also limited and could leave you wondering where business growth is going to come from. Even businesses in sectors that did receive some targeted help, including retail and hospitality, are warning that their overall cost base is still set to rise. Two areas - business rates and wage costs - seem to be standing out. Business Rates: Relief, But Maybe Still Higher Bills Business rates remain a major pressure point for high street businesses, with many seeing their rateable value increase due to the 2026 revaluation. Many shops, pubs and hospitality businesses will have their rates calculated using a lower percentage of their property value; however, taken in combination with higher valuations many businesses are braced for higher bills. For cash flow planning, this is something to review sooner rather than later. Wage Costs: Good for Workers, Harder for Employers National minimum wage increases will help workers, particularly those who are younger, but it means further cost pressure on employers already managing tight margins. This may impact your recruitment or staffing plans or mean you need to look at raising prices to cover the additional costs. Salary Sacrifice Cap for Pensions The £2,000 cap on pension salary sacrifice arrangements also attracted attention. Amounts that are contributed above the cap will become subject to employer and employee national insurance contributions, making these arrangements much less desirable. Concerns have been raised about the impact this change could have on business investment and pension funding. It is worth noting that these changes are not proposed to take effect until 6 April 2029. So, there is still time for employers and employees to take advantage of the current rules. If you would like advice on how a salary sacrifice arrangement for pension contributions works, please get in touch and we would be happy to provide you with personalised advice. Wider Access to Investment Incentives One measure that may help some growing businesses over the longer term is the expansion of the Enterprise Investment Scheme (EIS). EIS schemes provide tax incentives to investors who invest in smaller companies, and from April 2026, investment will be allowed into businesses that have grown beyond the previous size limits. What to Consider Now While the Budget’s forecasts may not paint an especially bright picture for national growth, your own plans don’t have to rise or fall with the wider numbers. Many businesses continue to expand by focusing on the areas they can influence day-to-day. You can do the same. Some sensible steps to consider based on the Budget measures would include: - Reviewing your business rates valuation and checking whether you are eligible for any transitional relief.   - Update your financial projections to factor in wage increases next April.   - Look again at any pension contribution salary sacrifice arrangements you have and make sure staff understand how the changes could affect them.   - If you are seeking investment for your company, it could be worth looking at the updated EIS rules to see whether they might open any new opportunities for you. If you need help working through any of these changes - or simply want a second opinion on how they affect your plans - feel free to get in touch. We would be happy to help you!

The Government has announced a £725 million package of reforms aimed at increasing apprenticeship and training opportunities for young people. While much of the announcement centres on tackling youth unemployment, there could be benefits for small and medium-sized businesses. Below is an overview of what’s changing and how it could influence your workforce planning over the next few years. Fully Funded Apprenticeships for Under-25s at SMEs One of the headline changes is the removal of the 5% co-investment rate for apprentices under 25 at small and medium-sized employers. This means training costs for eligible apprentices will be covered entirely by government funding. If you have previously avoided apprenticeships due to the training and assessment costs, it may be worth reconsidering them as they may be a good way to fill entry-level vacancies and develop talent internally. Potentially More Local Support in Finding Apprentices The announced funding includes a £140 million pilot that will give Mayors the ability to connect young people with apprenticeship opportunities. Of course, how effective this will be depends on how the scheme is implemented locally, but this should translate to more support for you in finding applicants. Foundation Apprenticeships and Short Courses Additional foundation apprenticeships are due to be rolled out in sectors such as retail and hospitality. Foundation apprenticeships were first introduced in May 2025 and are designed to bridge the gap between formal learning in school or college and the workplace helping make young people work-ready. These may be useful if you find you currently have to invest substantial time in early training. Beginning in April 2026, the possibility of short courses will be introduced to apprenticeships allowing more flexible training options that better suit you. A new Level 4 apprenticeship in AI will also be introduced, which could help you develop skills in your workforce. In review Clearly, it will take time for these changes to have a meaningful effect, but it could be well worth reviewing whether fully funded under-25 apprenticeships could support your recruitment needs. There could be further news on apprenticeships over the coming months as the government has said that the Department for Work & Pensions and Skills England will be working with businesses on the right balance to further boost apprenticeship starts for young people while delivering the right flexibilities for businesses. See:

With the festive season underway and household budgets feeling the pressure, it may be useful to know that if you are worried about paying your tax bill in one lump sum, you may be able to spread the cost. Although the deadline to file your tax return and pay any tax isn’t until 31 January 2026, acting early can make the process far smoother - especially if you need extra time to pay. HM Revenue & Customs (HMRC) Time to Pay service allows Self-Assessment taxpayers to set up a monthly instalment plan once their tax return has been filed. Since 6 April 2025, almost 18,000 people have already arranged a payment plan, making use of the flexibility to manage their tax bill without falling into late-payment penalties. Here are some key points to be aware of: - If you owe £30,000 or less, a plan can be set up online without calling HMRC.   - Your tax return must be filed before you can apply.   - The amount you pay is specific to your financial circumstances.   - You will still pay interest on the outstanding amounts, so the quicker you can pay, the better. If it’s needed, HMRC’s Time to Tap can offer some welcome breathing space. If you’re unsure about how this could apply to you, how to plan for your January tax bill, or what the Time to Pay option might look like in practice, feel free to get in touch. We can help you review your position early, so you have time to make the right decisions for your business. See:

If your business is based in England and Wales, you can now view the future rateable value of your property. The Valuation Office Agency (VOA) has completed updating the rateable values of all commercial and non-domestic properties in England and Wales. The new values take effect from 1 April 2026. Revaluations happen every three years to reflect changes in the property market, and local councils use these values to calculate business rates bills. A rateable value is not the same as the amount you pay, as your bill depends on the government-set multiplier and any reliefs you may qualify for. Information on the multiplier rates and reliefs available in England was updated during November’s Budget announcement. The Welsh government is likely to confirm multipliers and reliefs in its January Budget. Estimate Your Future Bill You can use the GOV.UK [Find a Business Rates Valuation](https://www.gov.uk/find-business-rates) service to find your business property’s future rateable values. For properties in England, the service can also provide an estimate of your business rates bill, though this won’t account for reliefs. The service for Welsh properties will be updated once the Welsh Government confirms multipliers and reliefs. If you are facing a bill increase, some of the reliefs announced in the Budget would be worth exploring. These include a Supporting Small Business Scheme and a Transitional Relief scheme. What to Do Now You can sign into your business rates valuation account to check your property details, see how the valuation was calculated, and report any errors. It is also possible to use your account to compare your rateable value with other properties in the area and check how the valuation was calculated. At the moment, you can only request changes to your current rateable value. You must request any changes to this value by 31 March 2026. After 1 April 2026, you will only be able to make changes to your future rateable value. If you have concerns about how the revaluation could affect your business’s profitability and budgeting for costs, please get in touch. We would be happy to help you. For any questions you have about rates or payments, contact your local council in the first instance. See:

Charity trustees in England and Wales now have new legal powers when considering moral payments: payments made because there is a moral rather than strictly legal obligation to transfer some of a charity’s property. This is the final provision in Charities Act 2022 to come into effect. Few charities encounter situations where a moral payment is relevant. Typically, these arise in cases involving legacies where there is evidence that a person’s will does not reflect their final wishes. Key Changes to Moral Payments The Charity Commission has updated its guidance to help trustees navigate these changes. The main changes, which came into force on 27 November 2025, are: - Objective legal test: Previously, trustees needed to personally feel a moral obligation (a subjective test). The law now requires an objective assessment -of whether trustees can reasonably be seen as being under a moral obligation. - Self-authorisation: Charities may make small moral payments without needing the Commission’s approval, provided they meet certain criteria.   - Scaled financial limits: The maximum amount a charity can pay without Charity Commission approval is based on the charity’s gross annual income from the previous financial year. Payments above this threshold still require approval.   - Delegation of decisions: Trustees may delegate moral payment decisions to staff or committees, although they retain ultimate responsibility for the decision. Practical Implications for Trustees - The availability of these new powers depends on the individual charity and the proposed payment. Some charities, particularly national museums and galleries, are prevented from making moral payments by their governing document or other legislation.   - Trustees cannot apply these powers retrospectively. Applications for approval to make a moral payment that have already been submitted will be considered under previous legislation.   - When necessary, trustees should seek Charity Commission consent. The Commission will continue to evaluate applications on a case-by-case basis, checking that reasonable decisions have been made and legal obligations met. Commission Guidance Christine Barker, Head of Regulatory Authority at the Charity Commission, said, “Few charities ever face decisions over ex gratia payments, but for those that do, these legislative changes provide greater clarity and flexibility and allow them to make in-house decisions for small sums. Our updated guidance is designed to help charity trustees know how to apply the law and whether they need to apply for our permission.” The Charity Commission has encouraged trustees to refer to its general guidance on [decision-making](https://www.gov.uk/government/publications/its-your-decision-charity-trustees-and-decision-making) (CC27) when considering a moral payment. See:

The deadline for filing your 2024/25 Self Assessment tax return is fast approaching. You must submit your return and pay any tax due by 31 January 2026 to avoid penalties and interest. To meet the deadline, you will need to make sure you have: - All income details, including any employment, pension, self-employment, dividends, rental and savings income you received. - Records of allowable expenses and reliefs. - Details of any pension contributions or charitable donations. Filing early not only helps avoid last minute stress but also gives you time to check your figures and plan for any tax payments you need to make. If you would like help preparing and submitting your tax return, please get in touch as soon as possible. We can help you ensure that your tax return is accurate, complete and filed on time.

The Health and Safety Executive (HSE) has published its latest annual statistics on work-related ill health and workplace injuries for 2024/25. According to the report, an estimated 1.9 million workers suffered from work-related ill health during the year. This is broadly in line with recent years, though still higher than pre-pandemic levels recorded in 2018/19. Mental health remains a key concern Mental health conditions are still the primary driver of work-related ill health. In 2024/25, 964,000 workers reported stress, depression, or anxiety caused or worsened by work. This continues an upward trend seen over the past several years. The impact of work-related ill health and injuries is also reflected in lost working time. An estimated 40.1 million working days were lost in 2024/25. Fatal and non-fatal injuries In 2024/25, there were 124 worker fatalities and an estimated 680,000 self-reported non-fatal injuries. HSE Chief Executive Sarah Albon said the statistics “demonstrate that workplace health challenges persist, particularly around mental health.” To review the report in full, see:

The government has confirmed that regulated rail fares in England will be frozen until March 2027. The freeze, announced prior to the Budget, follows a 4.6% rise in March 2025. Regulated fares include most season tickets on commuter routes, some off-peak long-distance tickets and flexible city-travel products. The freeze applies only to services run by England-based train operating companies. Unregulated fares can still be set independently by operators, although historically they have tended to move broadly in line with regulated fare changes. The government said the freeze is intended to help limit inflation and ease pressure on everyday travel costs. For regular business travellers and employers with staff travelling by rail, the freeze may provide a degree of cost certainty between now and 2027. The government estimates that passengers on the most expensive routes could save more than £300. The Transport Secretary Heidi Alexander said that the announcement forms part of “wider plans to rebuild Great British Railways.” See:

Some self-employed taxpayers who filed their 2024/25 self-assessment tax return may have been incorrectly asked to pay class 2 national insurance contributions (NIC) on their SA302 tax calculation. HM Revenue & Customs (HMRC) has now confirmed that this issue has been fixed. Who was affected? HMRC estimates that between 10,000 and 20,000 self-employed individuals who filed before 29 September 2025 may have received an SA302 showing class 2 NIC as payable when it should not have been. How HMRC is resolving the issue HMRC have confirmed that they fixed the issue and any SA302 forms issued since 29 September 2025 should show the correct class 2 NIC payments. For taxpayers that were affected by the error, HMRC have said that they will make all necessary corrections by the end of December 2025. The corrections will be applied automatically and there should be no need to contact them. Why the error occurred From 2024/25 onwards, sole traders and self-employed partners with profits above the SPT do not need to pay class 2 NIC. Instead, contributions are treated as having been paid automatically. The SPT is: - £6,725 for 2024/25 - £6,845 for 2025/26 Earlier in the year, some SA302 forms incorrectly flagged class 2 NIC as payable for taxpayers whose profits were above the threshold. Key points if you have been affected - If your SA302 incorrectly showed class 2 NIC as payable, HMRC will correct it automatically. -  No action is required on your part. See:

For many sole traders and small business owners, reviewing their accounting system only happens when something forces the issue. For instance, many sole traders are currently looking at whether their accounting system meets the requirements for Making Tax Digital for Income Tax. However, even without a regulatory change, reviewing your accounting systems can yield benefits. The right system can save you time, reduce errors and give you better insight into your business’s finances. Here are some practical points to consider. 1\. Identify Your Needs Think about what you or your team handle most often. Is it invoicing, logging expenses, monitoring cash flow, or perhaps tracking stock or projects. You might only need some basic income and expense recording. On the other hand, features like invoice reminders, payment links in invoices, or job costing could be useful to you. It’s often easier to start by listing your everyday tasks before you look at what software can do. 2\. Consider Cost, but Think in Terms of Value The cheapest option is not always the most effective if it slows you down. A slightly higher monthly fee could be worth it if it saves you work and time. Ease of use can add a lot of value, too. Simple screens, clear menus and good support can all make day-to-day bookkeeping much less of a chore. 3\. Automation and Integrations Modern software can take care of many repetitive tasks. For instance, importing bank transactions, sending reminders, capturing invoice and receipt details can all be done by software. If you use e-commerce platforms, job management tools or card payment services, software that can connect to them can save you time by eliminating the need to enter information twice. 4\. Planning for Growth If you expect your business to grow, consider whether the system can grow with you. Some entry-level tools are perfect for start-ups but become limiting once staff, stock or more complex invoicing are involved. 5\. Plan for the Switch Changing accounting systems can be disruptive; however, many platforms offer setup wizards, data import tools and clear guidance that can make the transition easier than you might expect. Choosing to switch at the start of a new financial year can make the process a lot smoother, too. Choosing the right accounting system is not just about compliance or day-to-day record keeping - it’s an opportunity to make your business run more smoothly and give yourself clearer insight into its financial health. If you would like help reviewing your current accounting system or recommending options that would suit your business, please feel free to contact us at any time. We would be happy to help you!

UK inflation eased to 3.6% in the year to October, down from 3.8% in September, according to the latest figures from the Office for National Statistics (ONS). Although still above the Bank of England’s 2% target, this is the slowest pace of price rises for four months and comes just before the Chancellor delivers the Autumn Budget. What is Driving the Latest Change? The ONS highlighted smaller increases in household energy bills as a key reason for the slowdown. Ofgem raised the energy price cap in October, but the 2% rise was far lower than the 9.6% increase applied this time last year. Hotel prices, which often fall between summer and winter, also dipped more sharply than they did last year. However, not all categories moved in the right direction. Food inflation rose to 4.9%, from 4.5% in September. Prices increased for items such as bread, meat, fish, vegetables, chocolate and confectionery, although fruit prices fell slightly. The Food and Drink Federation said the pressures were linked to ingredient and energy costs as well as regulatory requirements, such as packaging taxes and rising National Insurance. Position Ahead of the Budget Chancellor Rachel Reeves responded to the figures by saying that one of the main goals of the Budget is to ease cost-of-living pressures. What this will mean in terms of concrete measures we must wait to see. Prospects for Interest Rates Although inflation remains above target, the latest figures strengthen expectations of a cut to the Bank of England base rate. Some economists believe this could happen at the next meeting of the Monetary Policy Committee on 18 December 2025. What This Means for Your Business Reducing inflation is good news for the economy and increases confidence. You may find your customers becoming more willing to commit to spending again. If you have clients who have paused projects, re-engaging with them could encourage them to restart work. At the same time, cost pressures have not disappeared. The ONS reported that the annual cost of raw materials for businesses has continued to increase. So, keeping an eye on your costs and ways that you can control or reduce them is still key to remaining profitable. If you would like to discuss how the latest inflation figures or the Autumn Budget may affect your business, please get in touch. We are here to help!

The Prudential Regulation Authority (PRA) has confirmed that the Financial Services Compensation Scheme (FSCS) deposit protection limit will increase from £85,000 to £120,000 from the start of December. The new threshold applies per depositor, per PRA-authorised bank, building society or credit union. The PRA have confirmed that HM Treasury has approved the change. This is the first change to the limit since 2017 and follows a consultation earlier in the year. The PRA had initially proposed that the limit should rise to £110,000, but feedback provided in the consultation and the latest inflation data prompted a higher final figure. Temporary High Balances Limit Also Rising Alongside the core protection limit, the cap for Temporary High Balances (THBs) will increase from £1 million to £1.4 million on 1 December. THB protection applies to qualifying life events that can temporarily increase a customer’s account balance, such as buying or selling a house or insurance claim payouts. Implications for Your Business The increase in limit will be good news if you hold cash reserves in your business to cover working capital, payroll and other running costs. It is worth noting that the limit continues to be applied ‘per depositor, per PRA-authorised institution’. This means that if you are eligible and hold cash reserves that exceed the deposit protection limit, you could gain further protection by spreading your funds across different authorised institutions. It is worth checking whether a banking group is operating multiple brands under a single licence. This means you would only receive a single protection limit for the total amounts held across those brands. Taking a Wider Look at Cash For many owner-managed businesses, cash reserves naturally rise and fall throughout the year. If you find that your balances regularly build up beyond what the business needs for day-to-day operations, the increase in the FSCS limit could be a useful prompt to review how much cash the business actually needs to hold. Spreading funds between different banks can increase the level of protection available, but it can also be sensible to take a step back and consider whether those reserves are serving a useful purpose in the business. A simple cash flow review can help identify the amount needed for routine expenses, tax payments and any planned spending over the coming months. Where cash consistently exceeds this level, you may want to consider: - Are there investment opportunities for the business that would fit with your business growth plans? - Would withdrawing funds, such as by dividends, better help you achieve your personal goals? The right choice for you will depend on your personal and business circumstances, tax considerations and your plans for the business. If you would like tailored advice or simply assistance in clarifying what level of reserves your business needs, please get in touch. We would be happy to help you! See:

The Intellectual Property Office (IPO) has confirmed plans to raise its fees by an average of 25% from 1 April 2026, subject to parliamentary approval. The change will affect applications and renewals for patents, trademarks, and designs. This marks the first major fee increase in several years, with some fees unchanged for more than two decades. The IPO says the rise is necessary to keep pace with inflation and maintain the quality of its services. The change means most fees will go up by around a quarter. For example: - A patent search will rise from £150 to £200. - A trademark application will increase from £170 to £205. Full guidance will be published early in 2026 to help those whose payments fall close to the transition date. The IPO has also updated its ‘how to pay’ information online, including revised terms and conditions for deposit account holders. If approved, the new fee structure will take effect from 1 April 2026. Until then, the current fees remain in place. See:

HM Revenue and Customs (HMRC) are writing to some taxpayers to tell them what they need to do to get ready for the new Making Tax Digital rules that come into force next April. What is Making Tax Digital? Making Tax Digital for Income Tax is a new way for sole traders and landlords to provide their business accounts and tax information to HMRC. It involves using software to maintain digital accounting records and then submit reports to HMRC each quarter. From 6 April 2026, Making Tax Digital will be mandatory for almost all sole traders and landlords who had gross income over £50,000 in the 2024/25 tax year. Why have you received a letter? If your 2024/25 tax return has already been filed and your total gross income from self-employment and/or rental income is more than £50,000, then HMRC are likely to have written to you. It is worth noting that even if HMRC have not sent you a letter but your income from self-employment and/or rental income for the 2024/25 tax year is more than £50,000, you will still be required to follow the new Making Tax Digital rules from next April. What to do next A small minority of taxpayers may be exempt from the new rules, so you may want to check this first. For instance, if it is not reasonable for you to use software to keep digital records or submit them to HMRC, it is possible to apply for exemption. HMRC would then confirm whether they accept your application. Otherwise, you will need to: 1. Choose compatible software to keep the digital records needed for the new system. If you already use software to manage your accounting information, check with your provider that the software is ready for Making Tax Digital. 2. Sign up on GOV.UK for Making Tax Digital for Income Tax. If you need any help with signing up, choosing software or submitting reports to HMRC, please get in touch. We can offer you anything from tailored advice to a full Making Tax Digital service designed to give you peace of mind.

The UK unemployment rate has risen to 5% in the three months to September, the highest since early 2021, according to the latest figures from the Office for National Statistics (ONS). The increase was slightly higher than expected and adds to signs that the jobs market is starting to soften. The rise comes ahead of the government’s Budget later this month and may add further pressure to the Chancellor’s decisions. Signs of a cooling jobs market While unemployment has ticked up, the number of job vacancies has remained broadly unchanged at around 723,000 between August and October. Early data suggests the number of people on company payrolls fell by 180,000 in the year to October - more than forecasters had predicted. Liz McKeown, director of economic statistics at the ONS, said the latest data “points to a weakening labour market”, with unemployment reaching a post-pandemic high. The ONS noted that its unemployment figures should be treated with caution while it continues work to improve data quality. Wage growth slows Average pay growth across the economy stood at 4.6% in the third quarter, slightly down from 4.7% in the previous three months. The difference between public and private sector pay continues to widen: public sector wages rose 6.6%, while private sector grew 4.2%. According to Yael Selfin, chief economist at KPMG UK, public sector pay growth is “approaching a peak” as last year’s pay settlements work their way through the system. She added that private sector pay is likely to slow further as more people re-enter the workforce, reducing wage pressures. What this means for employers For many businesses, the figures reinforce what’s already being felt on the ground. Richard Carter of Quilter Cheviot suggested that with the Budget only weeks away, many companies have “shelved any major hiring plans” amid uncertainty over potential new costs or tax changes. The Federation of Small Businesses (FSB) echoed that view, warning that regulation, litigation and tax burdens continue to make it harder for smaller businesses to employ staff. Looking ahead The Bank of England has projected that unemployment will remain close to 5% for the next few years, suggesting employment growth could remain subdued over the medium term. For business owners, the key questions now centre on the upcoming Budget - whether measures will support job creation and investment, or whether further cost pressures could make a challenging jobs market even tougher. See:

The Department for Work and Pensions (DWP) has launched a national campaign to offer UK businesses access to no-fee specialist recruitment support through Jobcentre Plus. The service is available to all businesses, regardless of size or sector. Over the last year, only one in five businesses has used Jobcentre Plus services for support. This may be indicative of a lack of confidence in the service being able to locate suitable candidates. At the same time, over half of employers in a recent DWP Employer Survey reported difficulties in finding suitable candidates. With the average cost of filling a vacancy estimated by CIPD at £6,125, it could be worth considering trying out the service. Who Can Benefit? The campaign is particularly focused on sectors with high vacancy rates, including: - Manufacturing  - Logistics  - Retail  - Hospitality  - Health and social care  - Construction  However, the service is open to all employers, whether they’re recruiting for one role or many. To find out more and access support, visit the [Business.gov.uk website](https://www.business.gov.uk/campaign/recruit-with-jobcentreplus/?gclsrc=aw.ds&gad_source=1&gad_campaignid=23130348946&gbraid=0AAAAACVgi064aWtIBdniEiGQ4DVmhSpNR&gclid=EAIaIQobChMI17jp2YbZkAMVwY5QBh0lKjgcEAAYASAAEgJLjfD_BwE).

From 18 November 2025, identity verification with Companies House will start to be required for company directors and People with Significant Control (PSCs). The measure is intended to improve the reliability of information on the UK’s company register and support efforts to reduce economic crime. The identity verification process was introduced on a voluntary basis in April 2025. According to Companies House, more than one million individuals have completed verification since then. Companies House Chief Executive, Andy King, described the milestone as significant, saying: “Identity verification will help make sure that the people setting up and running companies are who they say they are. This will make our data more reliable and less open to misuse, supporting a more transparent and trusted business environment.” When to verify The specific date by which each director or PSC needs to verify their identity varies. Companies House says it will contact each company directly with this information. Broadly, the requirements are as follows: - Directors Existing directors of companies will need to verify their identity as part of their company’s next confirmation statement from 18 November 2025. This will need to be done for each company if you are a director of more than one entity. If you are registering a new company that you will be a director of, you will need to verify your identity as part of the registration process.   - PSCs If you are a PSC, as well as a director of the same company, you need to verify your identity for your PSC role as well as your director role. Verifying for your PSC role will need to be done within 14 days of the company’s confirmation statement date. If you are a PSC but not a director of the same company, then you will be required to verify within the first 14 days of your birth month. For example, if your date of birth is 20 December, your 14-day period begins on 1 December. If you become a PSC after 18 November 2025, you need to verify within 14 days of being added to the Companies House register. How to verify Verification can be carried out in one of two ways: directly through Companies House using GOV.UK One Login, or via an Authorised Corporate Service Provider (ACSP) such as our firm. Verified individuals will receive a personal code through the service. They will then need to provide this personal code and a verification statement for each company role they hold. Other roles Companies House plan to introduce identity verification for other roles in the future. This will include limited partnerships and corporate directors. If you need any help verifying your identity or that of others for your company, please give us a call. We would be happy to help you! See:

The Chancellor, Rachel Reeves, gave a surprise ‘pre-Budget’ speech last week that appeared to pave the way for tax rises in the Budget on 26 November 2025. What did she say? The Chancellor’s scene setting speech outlined her priorities to cut NHS waiting lists, reduce the national debt, and improve the cost of living. Quoting world challenges such as the continuing threat of tariffs, persistent inflation, the increasing cost of government borrowing, and pressures on public finances, the Chancellor acknowledged that productivity in the economy is weaker than previously thought. This all means increasing pressure on revenue for the government. The Chancellor indicated that her Budget would support businesses in creating jobs, innovating and protecting families from high inflation and interest rates. She further said: “If we are to build the future of Britain together, we will all have to contribute to that effort. Each of us must do our bit …” This is the clearest indication yet that tax rises are coming for everyone. So, what could this mean for you in the Budget? Let’s explore some of the possibilities. Changes already due to take effect in 2026 and 2027 There are still some measures announced in Autumn Budget 2024 that have not taken effect yet. These are: - Capital Gains Tax (CGT): The rate of CGT where Business Asset Disposal Relief (BADR) applies will increase from 14% to 18% from 6 April 2026.   - Inheritance Tax (IHT): Restrictions on 100% relief for business and agricultural property will take effect from 6 April 2026. Unused pension funds and death benefits will be brought into IHT estates from 6 April 2027. In addition, the new Making Tax Digital for Income Tax (MTD for IT) becomes mandatory for self-employed individuals and landlords with turnover over £50,000 from 6 April 2026. While not a tax increase, there is an increase in compliance costs to those affected. Predictions for Autumn Budget 2025 Manifesto promises included not increasing National Insurance, income tax or VAT rates. The October 2024 Corporate Tax Roadmap commits to keeping the small profits rate and marginal relief and not increasing the 25% main rate of corporation tax. Enhanced research and development tax reliefs and the £1 million annual investment allowance for plant and machinery capital allowances are also to be kept. However, the Chancellor’s speech now casts a doubt on these commitments. Here are a few of the possibilities we could see. - Freeze on income tax thresholds extended: Income tax thresholds and the tax-free allowance are currently frozen until 6 April 2028. This could now be extended to 5 April 2030, bringing more people into tax.   - Increase to income tax rates: A one or two percentage point increase could be made to income tax rates. To generate sufficient tax revenues, it seems likely that the basic rate of income tax would need to be increased, not just higher rates. - National Insurance and partnerships: A current hot topic is the suggestion that the government sees partnerships as receiving a tax break because partnership profits are distributed without having to pay 15% employers’ NI. This might result in the introduction of an additional partnership NI contribution for partners. Current speculation suggests this might be limited to LLPs rather than all types of partnership.   - Flat rate relief for pension contributions: Pension savings are currently given tax relief based on the saver’s marginal income tax rate. This could be changed so that all savers receive the same flat rate of income tax relief. This would collect more tax from higher earners. - Reduce pension income tax-free lump sum: Individuals can often take a tax-free lump sum from their pension when they reach retirement age. Reducing the amount that can be taken tax-free could be one of the options being considered by the Chancellor. - Cut Cash ISA saving limits: It was reported earlier in the year that the Chancellor was interested in restricting the amount that can be saved into a cash ISA. Nothing has happened on this so far, however, this could form part of the Budget announcement. - Increase the BADR rate further: The CGT Business Asset Disposal Rate is already due to increase to 18% from 6 April 2026. This could be increased further. Another CGT possibility is that the CGT rates could be aligned with income tax rates. This might mean the current 18% rate being increased to 20% and the current 24% rate being increased to as much as 40% or 45%. - Cap Principal Residence Relief (PRR): When an individual sells their home they pay no tax, no matter how much they receive, as PRR is unlimited. However, another possible measure could see PRR being capped. - Further restrictions to IHT reliefs: Possible measures could include changes to the Potentially Exempt Transfer (PET) regime, reducing or removing taper relief on gifts given three to seven years before the donor’s death, and introducing annual or lifetime limits on exempt giving. - VAT: There could be a mixture of good and bad news for VAT. One possibility could be a cut to the 5% VAT rate on household energy. However, privately funded healthcare might perhaps be subject to 20% VAT, like private education. What should you take away? Of course, predictions and possibilities of what might happen are speculative. However, the Chancellor’s determination to stick to her fiscal rules that keep the financial markets happy, coupled with the need to generate additional revenue, strongly suggest that there will be some wide-ranging changes in the Budget. We will keep you updated on the Budget and any changes it brings. If you would like to discuss your personal situation and whether there are any actions you could take before the Budget, please get in touch. We would be happy to help you! See:

HM Revenue and Customs (HMRC) has been reminding taxpayers that there are now fewer than 100 days left to file their tax return and pay any tax due for the 2024-25 tax year. The online filing deadline applicable to the majority of taxpayers is 31 January 2026. According to HMRC figures, over 3.5 million people have already filed their return, but with more than 11.5 million people submitting a return last year many are yet to file. HMRC is encouraging an early start to avoid the last-minute rush. Why file early? Filing early gives you a clearer picture of how much tax you owe and helps you budget for the payment due by 31 January. If you’re due a refund, you’ll receive it sooner. Things to be aware of for this year’s return - Capital Gains Tax (CGT): The CGT rates changed partway through the tax year. This is not automatically calculated on the Self-Assessment tax return. If you sold assets such as shares after 30 October 2024, the change in rate will need to be factored in. - High-Income Child Benefit Charge (HICBC): A new digital PAYE service means that if you only complete a tax return to pay this charge, you may no longer need to. Eligible claimants can opt to have the charge collected through their tax code instead. HMRC can de-register you from Self-Assessment if you qualify – - Either for this tax year or the next, depending on whether you have already submitted your return. - Winter fuel and heating payments: You do not need to include your Autumn 2025 Winter Fuel Payment (or Pension Age Winter Heating Payment in Scotland) on your 2024-25 return. These payments will be accounted for in your 2025-26 tax return, not due until 31 January 2027. Making Tax Digital Looking ahead, sole traders and landlords with a turnover above £50,000 will need to use MTD for Income Tax from 6 April 2026. This will require quarterly submissions of income and expenses through compatible software. If you are affected by this change, we recommend making early preparations so that you are ready in good time. Watch out for scams As ever, HMRC is warning taxpayers to stay alert to scams, particularly around this time of year. Your HMRC login details should never be shared with anyone. HMRC guidance on spotting and reporting scams can be found on their [website](https://www.gov.uk/government/collections/hmrc-phishing-and-scams-detailed-information). Getting started With less than 100 days to go, it’s a good time to make a start. Completing your return early gives peace of mind, allows time to resolve any queries, and helps you plan for your tax payment well before the deadline. If you would like help with preparing and filing your tax return or with how to use MTD for Income Tax, please get in touch and we would be happy to help you! See:

As part of its move to reduce ‘red tape’ and aid business growth, the government has announced plans to remove the requirement for companies to include a directors’ report as part of their annual accounts. Micro-entities are already exempted from the requirement to include a directors’ report in their accounts; however, it is intended that the requirement will be removed for all companies. It is estimated that this will affect approximately 440,000 companies. Medium-sized private companies will also be exempted from the requirement to prepare a strategic report as part of their annual report and accounts. Wholly-owned subsidiaries will also be exempted from preparing a strategic report, provided their disclosures are included in the UK parent company’s annual report and accounts. Estimates suggest that these changes could save UK businesses in the region of £230 million each year, and legislation to bring about these changes will be introduced as soon as possible. See:

The Information Commissioner’s Office (ICO) has launched a consultation on how charities can make use of new rules that will allow greater use of electronic marketing in contacting their supporters. From January 2026, the Data (Use and Access) Act will introduce a new ‘charitable purpose soft opt-in’. This will allow charities to send marketing emails and texts to people who have expressed interest in or offered to support a charity - even if they haven’t specifically ticked a consent box - provided certain conditions are met. How the new rule will work The change is intended to make it easier for charities to stay in touch with potential supporters and raise funds, while still protecting individuals’ data rights. The charitable purpose soft opt-in will not apply to contacts already held in existing databases. Charities must always provide a clear opportunity to opt out - both when contact details are first collected and in every communication sent. ICO’s consultation The ICO’s consultation runs until 27 November and invites feedback from charities and others working in the third sector. Emily Keaney, the ICO’s Deputy Commissioner for Regulatory Policy, said the soft opt-in is intended “to help charities stay connected with the people who want to support them, while still making sure everyone has control over how their data is used." Steps charities can take now Although the new rule won’t apply until 2026, the ICO has provided some tips on what charities can do to prepare. 1\.   Update your privacy notice - make sure it clearly explains how your charity will use their personal information. 2\.   Plan your communications - decide how you will explain the soft opt-in when collecting new contact details, and how you’ll make it clear why someone is receiving marketing messages. 3\.   Keep separate contact lists - since you cannot send electronic mail marketing to people whose contact details were collected before the soft opt-in commences, you’ll need to keep separate lists of those who have given their consent and those who will be contacted under the soft opt-in. 4\.   Train your team - ensure staff know how to handle queries or complaints about marketing messages. Next steps Charities interested in shaping how the new rules are applied can respond to the [ICO’s consultation](https://ico.org.uk/about-the-ico/ico-and-stakeholder-consultations/2025/10/ico-consultation-on-new-electronic-mail-marketing-rules-for-charities/). See:

The government has announced a major shake-up in how UK regulators operate, aiming to make them more accountable and more focused on supporting business growth. Beginning last week, regulators have a stronger growth duty, meaning they’ll be expected to balance their oversight role with helping businesses invest, innovate and expand. The change is designed to ensure regulation remains proportionate and doesn’t hold back economic activity. A new public dashboard of regulator performance will also be launched. The new GOV.UK site, which will be updated quarterly, will bring together performance data into one place and allow for direct feedback to the government. Business and Trade Secretary Peter Kyle explained that the aim is to strip back unnecessary rules and pointless paperwork while keeping essential protections in place. He described the stronger growth duty and new transparency measures as part of the government’s wider “Plan for Change” to boost investment and job creation. For business owners, will these changes mean a more responsive and balanced regulatory environment that’s clearer about helping your business grow? Let’s see. See:

Conversations about Generation Z (those born roughly after 1996) and the workplace tend to generate headlines - perhaps even blaming younger workers for disrupting the traditional norms of office culture. Generational differences are nothing new, but if differences lead to conflict this can be detrimental both to staff and your business. When differences are managed well, though, they can bring out the strengths of every generation - creating a more innovative, resilient and productive workplace. What’s happening Many employers are noticing a shift in attitudes. Younger workers tend to value flexibility, mental health, and meaningful work, while many older workers were shaped by more traditional ideas about presence, hierarchy and progression. Older workers may view the younger generation as lacking “grit” or commitment, while younger employees might see their more experienced colleagues as resistant to change or too wedded to traditional ways of working. Many Gen Z entrepreneurs are also bringing fresh values into the way they run their own businesses - building businesses that are tech-savvy, purpose-driven, and often more informal. What can you do? In the main, it’s about practical management and good communication. Here are a few ideas: - Review how you measure contribution. If your business still prioritises time in the office or visibility over measurable output, you may find tension between generations. Shifting the focus to outcomes helps value both experience and fresh ideas. To do that successfully, it’s important to recognise that productivity can look different across roles and stages of career. - Balance flexibility with consistency. Expectations around work-life balance and flexibility vary widely. Having a clear policy that sets boundaries while allowing reasonable autonomy will help both those seeking balance and those who value routine and predictability. - Create an environment that supports learning. While workers starting on their career are generally looking for progression and purpose, those with more experience benefit from opportunities to refresh their skills, share knowledge and adapt to new technologies. We’re not necessarily talking about training courses. De-emphasising hierarchy in the workplace and finding ways for younger and older workers to team up on projects can provide learning opportunities for everyone. - Encourage open, respectful communication. Different generations often prefer different communication styles. Agreeing on how and when to communicate - whether by message, call or face-to-face - helps avoid confusion and keeps everyone connected. - Value different work styles and motivations. Some people thrive on rapid change, others on stability. Help staff understand each other’s preferred way of working so that workloads and responsibilities play to everyone’s skills. The takeaway Generational differences aren’t a threat - they’re a resource. For your business, blending the energy and digital fluency of younger staff with the experience and resilience of older workers can be a real competitive advantage. The most effective goal isn’t to preserve a single way of working but to create one that works for your business. That starts with communication, trust, and a willingness to keep learning from each other.

Official figures show that UK government borrowing reached £20.2 billion in September - the highest for the month in five years. The figures, released by the Office for National Statistics (ONS), underline the financial pressures facing the Chancellor as preparations continue for next month’s Budget. Borrowing, which measures the gap between government spending and income from taxes, was £1.6 billion higher than in September last year. The ONS said that although the government raised more through taxes and National Insurance, this was outweighed by higher spending, particularly on debt interest and inflation-linked costs. Implications for the upcoming Budget Higher borrowing means there is less room to manoeuvre in November’s budget. The rise in debt interest costs - nearly £10 billion in September alone - reduces the funds available for tax cuts or new spending commitments. These figures are likely to make the Chancellor’s job more difficult when setting out her Budget plans. The Office for Budget Responsibility will update its forecasts alongside the Budget, setting out how much “headroom” the Chancellor has under her own fiscal rules. Many expect that the chancellor will need to raise taxes to meet those rules. Analysts at Capital Economics estimate that around £27 billion may need to be raised, with households expected to carry much of that burden. What might be in the Budget Chancellor Rachel Reeves has been keen to emphasise that the government remains committed to manifesto promises not to raise the rates on income tax, VAT or National Insurance. She has also made promises on taking “targeted action to deal with cost of living challenges” in the Budget. One idea suggests that the current 5% rate of VAT charged on energy could be reduced. This suggests that any tax rises will at least be framed in such a way as to avoid the impression that people are receiving less in their pay packets. Speculation around where tax rises could come from includes: - Freezing tax thresholds. This is a stealthy way of bringing more people into higher rates of tax and increasing tax yield without being immediately felt by most. - Cutting the employee rate of National Insurance, while adding the same amount to income tax. This would have a limited effect on those who are employed, but increase tax collected from pensioners, landlords and the self-employed. - Reforming property taxes, such as replacing stamp duty with a property tax, making landlords pay more and removing principal private residence relief. - Reducing the tax relief available on ISA and pension saving and the size of the tax-free lump sum that can be withdrawn. Keep calm and carry on Of course, the uncertainty that precedes a Budget leads to all kinds of speculation. We will only know what measures will definitely be used when the Budget announcement takes place. We will keep you updated following Budget day on the measures likely to affect you. If you would like personalised advice on your tax situation, please call us at any time. We would be happy to help you! See:

Small businesses across the UK are being urged to take simple, practical steps to protect themselves from growing online threats - and a new free toolkit from the National Cyber Security Centre (NCSC) aims to make that much easier. The Cyber Action Toolkit, launched this week at the NCSC’s Annual Review, offers tailored guidance to help sole traders, micro businesses and small organisations strengthen their cyber security. NCSC’s latest annual review warns that every organisation with digital assets is a potential target for criminal cyber attackers. NCSC’s CEO, Dr Richard Horne, urged all businesses to ‘act now.’ A growing problem Recent figures show that 42% of small businesses reported a cyber breach in 2024, while more than a third of micro businesses faced phishing attempts. Many small firms admit they simply don’t know where to start - often because cyber protection feels complicated or time-consuming. The NCSC’s new toolkit aims to help with that. It breaks cybersecurity down into simple, achievable steps for businesses, with straightforward actions tailored to their size and needs. What the new toolkit offers The Cyber Action Toolkit is free to use and provides: - Personalised cyber security guidance. - Step-by-step actions tailored to business size. - Progress tracking and rewards to recognise each improvement you make. It’s structured around three levels - Foundation, Improver and Enhanced - so businesses can progress through the levels at their own pace and build their resilience gradually. As you put in place the basic measures recommended by the toolkit, this can be a good starting point in later working towards Cyber Essentials certification. Taking the first step For busy business owners, cybersecurity can easily fall down the to-do list. But the reality is that small steps now can save a lot of time and stress later, and the Toolkit seems to be a useful tool in helping with that. You can access the Cyber Action Toolkit free through the NCSC website. See: [https://cybertoolkit.service.ncsc.gov.uk](https://cybertoolkit.service.ncsc.gov.uk/)

The Competition and Markets Authority (CMA) has published proposals to overhaul how the veterinary market works. While this review focuses on vet businesses, its findings provide some useful insights for businesses of all types - particularly around transparency, communication, and customer confidence. What’s happening The CMA’s investigation found that many pet owners struggle to understand what they’re paying for when they visit the vet. Prices are often unclear, comparisons are difficult, and complaints can be hard to make when things go wrong. The market has also changed dramatically in recent years. Independent practices have been bought by larger corporate groups, and yet many clients don’t realise who actually owns their local surgery. Between 2016 and 2023, average vet prices rose by more than 60% - well above inflation - and in some cases, prices increased faster after businesses were taken over by bigger groups. The CMA concluded that the current regulatory system doesn’t keep up with how the sector now operates. It regulates individual professionals, but not the businesses behind them. The proposed changes To address these issues, the CMA has suggested a wide-ranging package of 21 measures. The proposals include: - Requiring vet businesses to make ownership clearer and to be more open about their services and fees. A price cap of £16 on prescriptions is also proposed.   - Requiring vets to explain where clients might find cheaper medicines and to provide prescriptions automatically, with a cap on what practices can charge for issuing them.   - Providing clear price information when pet owners are choosing a treatment, putting estimates of prices for treatments over £500 in writing and providing itemised bills.   - Making it easier for customers to compare local options through an improved “Find a Vet” website that will include price information.   - Modernising the regulatory framework to cover veterinary businesses, not just individual vets, to ensure proper standards and fair handling of complaints. The [CMA’s consultation](https://connect.cma.gov.uk/vets-provisional-decision) runs until 12 November 2025, with their final decision expected by March 2026. They are encouraging vet businesses to carry on and make changes that would benefit their customers in the meantime. What it means for other business owners Even if you’re not in the pet care world, there are some good lessons here. The CMA’s proposals underline how crucial transparency and clear communication have become in building client trust. Customers increasingly expect to understand how a service is structured, who owns the business, and what they can expect to pay. The CMA’s final decision is due in early 2026, but the message for business owners is already clear: transparency builds trust, and trust sustains long-term client relationships. See:

Running your own business often means juggling a lot - and for many, that includes childcare. With autumn school breaks rapidly approaching, HMRC is reminding working families that the Tax-Free Childcare scheme can be a good way to make some savings. What’s on offer Through the scheme, you can get up to £2,000 a year toward childcare costs for each child up to the age of 11, or up to £4,000 (up to the age of 16) if your child is disabled. The government adds £2 for every £8 you pay into your childcare account - and you can use that money to pay for approved childcare, such as nurseries, wraparound childcare, after-school clubs, or holiday clubs. Your childcare provider needs to be signed up to the scheme before you can pay them, so you do need to check with them to see that they’re signed up. It’s completely flexible: you can pay in whenever you like, use it straight away, or leave it in the account until needed. If your plans change, any unused money can be withdrawn. Who can use it You don’t need to be on a payroll to qualify - self-employed parents can use the scheme too. Your family may be eligible if: - Your child is 11 or under (or 16 if they have a disability). - You and your partner (if you have one) earn, or expect to earn, at least the National Minimum Wage or Living Wage for 16 hours a week on average. - You each earn less than £100,000 per year. - You’re not claiming Universal Credit or childcare vouchers.   How to get started You can apply online by visiting [the Tax-Free Childcare section of GOV.UK](https://www.gov.uk/get-tax-free-childcare). Each child needs their own account, and the government top-up is added to each one separately. Once your account is open, you’ll need to reconfirm your details every three months to keep the top-up payments coming. With school holidays around the corner, now’s a good time to check if you’re eligible and set up your account - especially if you’re self-employed or running a small business and need reliable childcare to keep work flowing smoothly. See:

Cyber incidents, data breaches and operational disruptions don’t just affect systems - they affect people. The National Cyber Security Centre (NCSC) has published guidance called “Putting staff welfare at the heart of incident response” to help organisations consider the impact of a cyber incident on the people involved. While the guidance has been available for some time, the increasing prevalence of cyberattacks continues to make it timely. When things go wrong - whether it’s a cyberattack, system failure or security breach - employees may feel stress, uncertainty, fatigue, guilt, or anxiety. The NCSC’s view is that if welfare is overlooked, it actually undermines the resilience of the whole response effort. A team that’s burnt out or demoralised is less able to think clearly, act decisively, or recover well. What the NCSC recommends The guidance lays out five core recommendations for making sure that staff welfare is considered: - Include all staff in the incident response plan: When planning how you will respond to an incident, identify the staff that will be affected by it. Consider what the potential stresses might be. For instance, what if key staff are absent? Can you call on staff to handle incidents outside normal working hours? Planning can reduce unnecessary stress if an incident happens. -  Build a culture where staff feel safe to speak up: In a stressful incident, people cope with it differently. The guidance encourages a positive, secure culture where staff will feel able to speak up if they are feeling overwhelmed, burnt out, or need help, or if they spot worrying signs in their colleagues. This will help you to handle a problem before it becomes too serious. - Plan your internal communications: During a live incident, people want clarity. Keep everyone – including staff that are not directly involved – informed about what’s happening. - Be conscious of staff concerns: Staff are likely to worry about how the incident will impact their own livelihoods, whether because their personal information has been stolen or they will lose their job. Clearly communicating how the business plans to get through the incident can help people focus on what they need to do rather than worrying. - Practise your response: Practice can help your staff feel better prepared. NCSC offers a free [Exercise in a Box](https://www.ncsc.gov.uk/section/exercise-in-a-box/overview) that can be used for this purpose. If you have an incident response plan (or are planning to build one), it’s worth reviewing it through a welfare lens by using NCSC’s guidance. To review the guidance, see:

Cash flow is the lifeblood of any business. Without it, even profitable businesses can run into trouble. Yet many business owners, and even some finance teams, treat cash flow as a monthly or quarterly review item. That’s a mistake. A weekly cash flow check is a simple, powerful habit that keeps you informed, proactive and in control. It’s a simple routine that will help you to keep your business financially healthy, spot opportunities early, and gain confidence in every decision. What can weekly checks do for you? Weekly cash flow checks can help you to: - Avoid surprises. When you review your cash inflows and outflows weekly, you’ll spot timing gaps, slow-paying clients, or unexpected expenses before they become urgent. - Plan smarter. Being able to see what’s happening to cash will help you make better decisions and avoid problems. For instance, should you delay a payment, push harder on collections, or hold back on spending? - Spot opportunities early: Regularly reviewing cash flow can reveal trends and openings you might otherwise miss, such as funds that are available to grow the business or potential savings on expenses. What are the core steps for a weekly check on cash flow? Hopefully, you’re convinced of the benefits, but how do you do it? Here are five steps to a weekly check on cash flow. STEP 1: Update Cash Position Start by reviewing your bank balances and reconciling them with any outstanding invoices and bills. You’ll need to make sure your accounting data is accurate and up-to-date, but this should help you know exactly how much cash is available. STEP 2: Project the Next 2-4 Weeks List out everything you expect to receive and everything you expect to pay out over the next 2-4 weeks. This will help you to see where potential shortfalls could come, or where you might have an opportunity. STEP 3: Compare Forecast to Reality Look back at last week’s projections and notice how they differed from what happened in reality. Make sure you know the reason “why” behind differences. Was it a late payment? Were there unexpected expenses? Or did a sale you were expecting not come off? As you do this, you’ll get better at estimating what’s likely to happen in future. For instance, you might tend to be too optimistic about when customers will pay you. STEP 4: Identify Action Items Based on what you’ve learned, you should be able to list out some actions that can be taken over the coming week. Don’t necessarily try and list everything possible. You only have a week before the next review. Make sure that you flag the most critical issues so that you can make a meaningful adjustment. You might decide to set a program of calls to customers to chase collections, defer non-critical expenses, or adjust staffing plans. STEP 5: Document and Track Trends Keep a simple log of your weekly checks. Over time, patterns can emerge that will help you in your budgeting, forecasting and decision making. Tips - A simple spreadsheet with columns for inflows, outflows, net cash and comments can be a good start and make it easier to collect and record the information you need. - Many banking apps can be set to automatically notify you if balances drop below a preset threshold. - Consistency is key, so you’ll want to schedule a fixed day each week for this review. Mark it in your calendar and make it non-negotiable. Bottom line Weekly cash flow checks can transform your financial management from reactive to proactive. It can mean peace of mind and smarter decisions, and give you an insight into your business that goes way beyond what day-to-day bookkeeping allows.

For many small and medium-sized business owners, bookkeeping, payroll and VAT returns are seen as a necessary part of their routine. These tasks are essential, but in terms of shaping your business, they can only tell you what has already happened. It can give you a real advantage if you also spend some time thinking like a strategic Chief Financial Officer (CFO). That means using your financial data to plan and forecast so that you make smarter decisions for your business. Bookkeepers record history, CFO thinking shapes the future A bookkeeper’s job is to make sure that the numbers are complete and accurate, but a CFO - or a business owner thinking like one - takes those numbers and asks questions like: - Which customers or products generate the most profit? - How much cash do we really need in the next six months? - Where should we invest resources for maximum impact? Adopting this kind of mindset can transform how you run your business. The good news is that it’s not that difficult to develop some core skills that will help you to do this. Core skills every business owner can learn - Financial Literacy: Understand P&Ls, balance sheets and cash flows. These aren’t just for accountants; they can be your roadmap for understanding the financial performance of your business. - Forecasting and Budgeting: Forecast what your business income is likely to be, plan for expenses and prepare for seasonal variations. -  Key Metrics: Track metrics that matter to your business - cash flow, margins, costs to acquire customers - so that you can make decisions based on data, not just gut feel. - Risk Awareness: Identify risks to your finances early on, whether it’s a slow-paying customer or an investment that’s costing too much. Just picking one of these areas and making a small improvement can pay dividends. Start small, think big You don’t need fancy software or a finance degree. You could begin with: - Weekly checks on your cash flow. - Reviewing profit margins per product or service. - Setting simple financial goals for the quarter. Gradually, these habits build the foundation of strategic financial thinking allowing you run your business more confidently and proactively. The bottom line Treating finance as a back-office chore keeps you in the dark. Thinking like a CFO - tracking the right numbers, asking the right questions, and planning ahead – can give you control, clarity, and confidence. Bringing a CFO’s mindset into your business doesn’t mean you need to do it all alone. Sometimes an outside perspective can make the numbers clearer and the decisions easier.

The Autumn Budget will be delivered on 26 November, but the Chancellor’s recent speech in Liverpool gave us some useful hints about what could be on the table. The Chancellor Rachel Reeves appeared to prepare the ground when she said: “We will face further tests, with choices to come, made all the harder by harsh global headwinds and long-term damage to the economy, which is becoming ever clearer.” Her comments note two factors: - Global headwinds – trade tensions, wars and higher interest rates driving costs up. - The UK’s own productivity problem – the Office for Budget Responsibility (OBR) is due to publish a critical reassessment of the long-term productivity performance of the UK economy. In short, the message seems to be: don’t be surprised if taxes rise, and don’t expect giveaways. How might taxes be raised? It looks as though there will be no change to the main tax rates (Income Tax, National Insurance and VAT). When pressed on whether VAT could rise, the Chancellor said: “The manifesto commitments stand.” She further said that she wants to protect pay packets and “not put up the prices in shops” – which also makes a straight VAT rise unlikely. But she hasn’t ruled out changes elsewhere. One option for raising money without headline rate rises is to keep tax thresholds frozen. As wages rise with inflation, more people and businesses get dragged into higher tax bands. Pensions, housing-related tax breaks, and other business reliefs could also be reviewed. The government may frame these as closing “loopholes” rather than introducing new taxes. Reeves has also confirmed that there could be changes to the legally required biannual forecasts carried out by the OBR. When the mid-year OBR forecasts don’t meet expectations, the resulting speculation about tax changes can lead to wider instability. These forecasts might now only happen once a year, which could help with this. What this could mean for you We won’t know the detail until the budget is delivered at the end of next month. But this Budget is unlikely to bring windfalls for business – it looks like it could be more about stability and plugging gaps in public finances. As ever, preparation is key. Keep an eye on the announcements and be ready to adapt. We’ll be keeping you informed with details of what’s changed following the Budget. As ever, if you would like any personalised advice please give us a call. We would be happy to help you! See:

The Competition and Markets Authority (CMA) has published its latest monitoring report on fuel prices, highlighting increases in both pump prices and retailer margins. Between May and August 2025, the average price of petrol rose to 133.9 pence per litre (ppl) and diesel climbed to 141.9ppl. That’s up by 1.9ppl and 3.5ppl respectively. While global oil markets explain part of the increase, the CMA is more concerned about retailers holding onto higher profits at the pump. Margins far above historic levels The CMA found that: - Supermarket fuel margins (the difference between selling price and what the supermarket pays for fuel) averaged 8.4% for the first half of 2025 – more than double the 4% level seen in 2017.   - Non-supermarket retailers saw an average margin of 9.8% for the same period, compared with 6.4% in 2017. Dan Turnbull, Senior Director of Markets at the CMA, said: “What’s deeply concerning is that fuel margins – a key indicator of retailer profit – remain far above historic levels.” In fairness, the monitoring report doesn’t look at how operating costs have changed for retailers. So, CMA will be carrying out a full review of retailers’ operating costs in its first annual road fuel monitoring report, which is due to be published at the end of 2025. This will allow the CMA to assess whether rising costs explain some of the increase, or whether retailers are simply enjoying fatter profits. Retail spreads remain high The CMA also looked at “retail spreads” – the average price drivers pay at the pump compared to the benchmark price at which retailers buy the fuel. - Retail spreads for petrol averaged 13.3ppl between June and August, lower than the spring period but still double the 2015–2019 average of 6.5ppl.   - Diesel spreads also averaged 13.3ppl, well above the long-term average of 8.6ppl. Fuel Finder scheme coming Following a recommendation made by the CMA in its 2023 road fuel market study, the government is planning to launch its new Fuel Finder scheme by the end of the year. This will allow drivers to compare real-time fuel prices via navigation apps, in-car devices and comparison websites. Increased transparency in pricing may push retailers to be more competitive in their pricing and help bring margins back down. What’s next The next major CMA report is due at the end of 2025 and will provide a deeper look at retailers’ operating costs. In the meantime, businesses and drivers alike will be watching closely to see whether the Fuel Finder scheme makes a dent in the high margins and helps bring more competition back to the pump. To review the report in full, see:

The government has announced its plan to introduce a new digital ID scheme, which will become the standard way to complete Right to Work checks by the end of the current Parliament. The digital ID will be available to all UK citizens and legal residents and will be stored securely on mobile phones in the same way as the NHS App or contactless payment methods. The new system should make compliance simpler for employers carrying out Right to Work checks. Guidance will follow as the roll-out progresses, with a consultation later this year to help shape how the service works. The government has confirmed there will be options for people unable to use smartphones, and security will be built in through encryption and authentication technology. For now, employers should watch for updates and prepare for digital checks becoming mandatory. See:

Amazon is set to close all 19 of its UK Amazon Fresh grocery stores less than five years after launching the till-free sites in London. Five of the stores may be converted into Whole Foods outlets, another grocery brand owned by Amazon. The closures will affect around 250 staff, and the company has started a consultation process regarding its plans. Amazon has said it will be aiming to redeploy as many staff as possible. Amazon opened its first UK grocery store in Ealing Broadway in March 2021. Shoppers at Amazon Fresh used a “walk in, pick up, and walk out” model, with purchases billed automatically to their Amazon accounts using in-store cameras and other technology. Why Amazon is making the change Amazon said the decision followed a “thorough evaluation” of its operations and the growth potential of online grocery delivery. The company plans to focus on its delivery services, working with partners including Morrisons, Co-op, Iceland, and Gopuff. Industry analysts suggest the physical stores struggled to offer a differentiated experience. Sucharita Kodali of Forrester commented that Amazon Fresh may not have been set up for success, with issues including store locations and an unproven model in a highly competitive grocery market. Danni Hewson at AJ Bell noted that the till-less technology “always felt a little awkward,” and feels that Amazon’s strength lies in delivery convenience rather than in-store shopping. What lessons are there to take? Amazon’s decision highlights several practical points that can be helpful to businesses of all sizes. - Test new ideas, but don’t get too attached - trying new approaches is good, but be ready to change or stop them if they aren’t working. Amazon’s rapid pivot shows that even huge companies adjust quickly when their experiments don’t deliver. - Play to your strengths - focus on what your business does best. Amazon is closing stores to concentrate on online delivery, an area where it already has a clear advantage. Think about where your own strengths lie and build on them. - Innovations need to have a practical benefit - technology alone isn’t enough. While till-less stores demonstrated how technology can work, they didn’t really solve anything customers needed. Any new system or process should be simple, useful, and solve a real problem for your customers. - Be flexible and ready to adapt - markets change quickly. Watch customer behaviour and your competition and be prepared to tweak your approach rather than sticking rigidly to a plan that isn’t working. Amazon’s decision to close its physical stores highlights an important lesson for all businesses: success often comes from focusing on your strengths, staying agile and responding quickly to changes in the market. While not every experiment will work, each one provides valuable insight that can help you refine your strategy and grow. For business owners, the key takeaway is to keep evaluating what’s working, identify opportunities to innovate, and make sure your operations are aligned with where you can truly add value. If you want support in assessing your business strategy, planning for growth, or navigating change effectively, give us a call. We would be happy to help you! See:

Cyber incidents continue to feature in the news headlines, with airports now joining large UK retailers and manufacturers in experiencing serious disruption to supply chains and services. While small businesses are unlikely to grab the same headlines, the risks are just as real. For many, a serious cyber-attack could stop their business from trading altogether. That is why it is important not only to think about preventing attacks, but also how your business would recover if the worst happened. Start with the basics The National Cyber Security Centre (NCSC) encourages all businesses to adopt the Cyber Essentials programme. This focuses on five straightforward measures that block the majority of common attacks. They cover areas such as keeping software up to date, controlling access to your systems, and protecting your internet connection with firewalls. These are practical steps that any small business can put in place without needing a large IT team. Some insurers and customers also now look out for Cyber Essentials certification as a reassurance that you take cyber security seriously. Know what matters most If your business were hit by an attack, what would you need to keep running at all costs? For some, it might be your customer database. For others, it could be your booking system, your payment processing, or even email. By thinking this through in advance, you can: - Identify your most important systems and data - Decide how you would keep the business going if they were unavailable - Put in place simple backup and recovery processes so you are not left starting from scratch. Plan and practice NCSC advise that the businesses that recover best from disruption are those that have rehearsed their response. This doesn’t need to be complicated. It could mean, for instance: - Making sure you know who to call - is it your IT support provider, your bank, or the police’s cyber-crime unit? - Keeping offline copies of important contact details and documents - Agreeing who in the business will speak to customers or suppliers if systems are down - Running through “what if” scenarios with your team so everyone knows their role Leadership matters Cyber risk is often left to whoever looks after the IT. However, a cyber-attack poses a risk to the whole business. Just as you would take a threat to your cash flow or business operations seriously, cyber risk needs to be considered in the same way. This includes staying informed about and interested in the steps you’re taking as a business to minimise problems. Next steps If you want to build the resilience of your business, consider: - Reviewing NCSC’s [advice for sole traders and small organisations to respond to cyber attacks](https://www.ncsc.gov.uk/section/respond-recover/sole-small) - Working towards [Cyber Essentials](https://www.ncsc.gov.uk/cyberessentials/overview) certification - Making a simple recovery plan covering your critical systems and contacts. No business can guarantee it won’t be targeted, but by preparing now, you can reduce the damage, recover faster, and keep your customers’ trust. See:

The Chancellor of the Exchequer, Rachel Reeves, hosted US Treasury Secretary Scott Bessent at Downing Street recently for a joint industry roundtable. The meeting reaffirmed the close ties between London and New York as leading global financial centres and announced the creation of a new Transatlantic Taskforce for Markets of the Future. Purpose of the task force The task force will provide recommendations to both governments on how the UK and US can work more closely together in areas such as: - Digital assets - exploring both short-term opportunities while regulation is still developing and long-term possibilities for innovation in wholesale digital markets. - Capital markets - identifying ways to make it easier for UK and US firms to raise funds across borders, reducing unnecessary burdens and strengthening competitiveness. The task force will feed its recommendations through the existing UK-US Financial Regulatory Working Group and report within 180 days. See:

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

From April, people drawing the state pension may see an increase of more than £500 a year, thanks to the government’s triple lock guarantee. The policy means the pension rises each year by whichever is higher: 2.5%, inflation, or average wage growth. The latest figures from the Office for National Statistics suggest that the average earnings growth of 4.7% will be the measure used. For those on the new state pension (anyone reaching state pension age after April 2016), the weekly amount for a full entitlement is expected to increase to £241.05, or £12,534.60 a year. That’s a rise of £561.60 compared with now. For those on the old basic state pension, the increase is expected to take the full weekly payment to £184.75, or £9,607 a year, an annual rise of £431.60. Tax Implications While this is welcome news for pensioners’ incomes, there’s another angle to consider. The personal income tax allowance - the amount you can earn tax-free each year - is set to remain frozen at £12,570 until 2028. With the new state pension edging ever closer to this level, many pensioners who rely mainly on the state pension could find themselves paying tax for the first time by 2027. While many pensioners already pay income tax due to other sources of retirement income, this freeze, combined with steady increases in the state pension, will pull more people into the tax net over the next few years. What This Means for You Any rise in the state pension will provide some welcome relief against the continuing increases in the cost of living. However, with frozen tax thresholds, the effect on your disposable income may be less than you would first think. If you would like personalised advice on how your tax position may be affected, please feel free to call us. We would be happy to help you! See:

Small businesses looking to expand premises could soon find it easier following new government commitments to make business rates fairer. An interim report from the Treasury says that the Chancellor will examine ways to tackle “cliff edges” in the system - sudden jumps in rates that can discourage investment. Currently, if a small business opens a second property, it immediately loses all entitlement to Small Business Rates Relief (SBRR). The government now says it will review how SBRR can support business growth. The report also confirms that from April 2026, permanently lower tax rates will be introduced for shops, pubs, restaurants, and other retail, hospitality, and leisure businesses with a rateable value below £500,000. Changes to how business rates are calculated are also under review Business groups have been advocating for changes in the way business rates are calculated. They welcomed the report’s confirmation that the government will also consider moving from the current “slab” model (where the whole property is taxed at the highest rate) to a “slice” model (where tax gradually increases with value). What happens next This is an interim report. An update will be provided at the Autumn Budget on 26 November 2025. If you are looking to expand your business into new premises, business rates are not the only factor to consider. If you would like help formulating or assessing plans for business expansion, why not contact us? We would be happy to help you! See:

From October 2025, businesses that fall under the UK’s Extended Producer Responsibility for packaging (pEPR) scheme will receive their first invoices, covering the period from 1 April 2025 to 31 March 2026. These invoices, called Notices of Liability, will be based on the packaging data you submitted for 2024. What to expect Invoices will be issued through the Report Packaging Data (RPD) system, which only registered users can access. PackUK will notify Primary Contacts and Approved Users of the invoice and how to access it. However, if your finance team will need access, it would be worth making sure they are set up on the system before October. If you have not logged into the RPD system recently, then PackUK has recommended that you log in again before October to check your details. This will minimise delays to accessing your account when you need to in October. The size of your liability will depend on your submitted data and the overall figures from all producers. In some cases, fees may be recalculated later in the year if there are material changes. Payment and deadlines You will need to either pay in full within 50 days or sign up to a four-instalment plan. It’s important to note that these invoices are classed as statutory debts, so late payment penalties apply and PackUK will not issue purchase orders or VAT numbers. Being late in paying could be expensive. You may be liable to a variable monetary penalty of (whichever is greater): - 20% of the unpaid fees; or - 5% of your UK turnover (2% of UK group turnover if registered as a group). Preparing now To be ready for October: - Check your RPD login details and contact information. - Ensure your finance team have access if they need it. - Review your submitted 2024 packaging data and calculate what the fee is likely to be based on published material rates. - Prepare any necessary internal processes to ensure the invoice is paid in good time. Further details Further guidance and contact information if you need support can be found here:

The Financial Conduct Authority (FCA) has launched proposals that could see the £100 limit on contactless card payments raised - or even removed altogether. If agreed, shoppers may soon be able to pay for larger supermarket trips or restaurant bills with just a tap, without needing to enter a PIN. Why now? When contactless payments were introduced in 2007, the limit was only £10. It has been raised gradually over time, most recently to £100 in October 2021. The FCA says this latest proposal reflects both rising prices and the way technology is changing how people pay. Digital wallets on smartphones already allow unlimited contactless payments because of the added security from face ID or fingerprint checks. As a result, many are now using their smartphone to pay rather than using a card. How it would work Under the new plans, banks and card providers - not the FCA - would decide whether to raise limits. Some may even let customers set their own cap, or keep the limit lower if they prefer. Payment terminals would also need reprogramming to accept higher-value card transactions. Although many consumers remain cautious - 78% of those who responded to an FCA consultation wanted the £100 limit to stay - providers argue that fewer interruptions at the till would mean faster payments and less “friction” for both businesses and customers. Concerns about fraud Each increase in the limit has raised questions about security. The FCA has put forward this most recent proposal despite consumers and industry respondents already saying they preferred the current rules. The FCA admits in its own analysis that higher limits would likely increase losses from fraud, but it says detection systems are improving. It also stresses that consumers remain protected: they would be refunded if their card was used fraudulently. At present, safeguards already require a PIN if a series of contactless payments exceeds £300 or if more than five transactions are made in a row. Many banks also allow customers to lower their own contactless limit or switch it off entirely. Next steps The FCA’s consultation runs until 15 October, and changes could be introduced early next year. If adopted, the four-digit PIN could become an increasingly rare part of everyday shopping. For now, the £100 limit remains in place, but businesses may want to prepare for a shift in how customers choose to pay. See:

Cyber-attacks are on the increase, and smaller businesses are by no means immune. Have you been the victim of an online scam or cyber-attack? Or worried that something like that may happen? If so, a collection of resources on the National Cyber Security Centre (NCSC) could be helpful to you. The guidance is broken down across six topics and provides practical advice on what to do. Here’s a summary. Phishing Phishing involves receiving a suspicious message that usually includes a link to collect information from you. NCSC advise that it’s important not to click on links in such a message or enter any information. However, if you have already done this, there are still important actions you can take to protect yourself, including: - Contacting your bank if you have shared banking details. - Using antivirus software. - Changing passwords. - Reporting it. Business payment fraud Criminals send emails that appear to be tailored to your business that are designed to trick you into believing you are dealing with a legitimate contact. They might send an invoice that looks real but contains a virus or change the bank account details you normally pay into. If you have been caught out, NCSC encourage you not to panic and contact your bank directly, making sure to use their official website or phone number. Hacked accounts NCSC provide a useful checklist of actions you can take if you can’t access one of your online accounts, or have noticed some unusual activity on an account. Ransomware attack In a ransomware attack, an attacker may encrypt your electronic device or the data stored on it and demand payment in exchange for decrypting the device or data. There are recommended actions you can take in these circumstances, and NCSC also provide their view on paying the ransom and the dangers you face if you decide to pay. Infected devices If you have a device that is behaving strangely, this may be because of malware. The guidance explains what you need to do confirm whether your device is infected, and what you can do to try and fix it. NCSC highlight that you are likely to lose any data that wasn’t backed up in your ‘last known’ good backup; however, trying to rescue data while your device is still infected runs the risk of carrying the problem through even after your device has been wiped and reinstalled. Denial of Service (DoS) attack A DoS attack will make your website or network unreliable or unresponsive, which could be critical to your business. NCSC provides guidance on what to do and how to defend your business from this threat. To review the resources in full, see:

Aldi introduced a pay boost last week for its store assistants that will see their pay rise to at least £13.02 per hour nationwide, making it the first UK supermarket to pass the £13 mark. Within the M25, rates will start at £14.35, rising to £14.66 with length of service. All staff, regardless of age, will receive the same minimum rate – well above the new National Living Wage of £12.21. This move follows Aldi’s policy of paid breaks, worth around £1,425 per year to the average store colleague, further strengthening its reputation as a leader on pay and conditions. What are the benefits of Aldi’s approach? Are there downsides? The benefits of Aldi’s approach Higher pay can certainly deliver some clear business advantages. These include: - Attracting and keeping staff – competitive pay helps reduce staff turnover, which saves on recruitment and training costs. - Boosting productivity – well-rewarded employees are more motivated, which can translate into better customer service and improved store performance. - Positive brand image – standing out as an employer that values its workforce helps Aldi with recruitment, customer loyalty, and wider reputation. - Consistency for staff – paying the same rate regardless of age supports fairness and can create a stronger workplace culture. The potential downsides However, not every business can match Aldi’s scale and financial muscle. Many businesses do not have sufficient buying power or margins to be able to absorb increased pay rates. As large employers raise pay, staff in smaller businesses may expect similar increases, putting those businesses under pressure to follow suit and increase wages. What can you do? Aldi’s move shows how pay can be used strategically, not just as a cost but as an investment in people and performance. For smaller businesses, the lesson may be less about matching Aldi pound-for-pound and more about finding sustainable ways to reward staff – whether through competitive pay, fair contracts, or other benefits that support recruitment and retention. See:

The UK government is facing a fresh financial squeeze after long-term borrowing costs climbed to their highest level in a generation. The yield on 30-year government bonds (known as gilts) has reached 5.72% – the highest since 1998. For the government, this means it is now significantly more expensive to borrow money, adding pressure on Chancellor Rachel Reeves to increase taxes ahead of the Budget later this year. For businesses, tighter government finances could shape tax and spending decisions over the coming months. Why borrowing costs matter Governments raise money by selling bonds to investors, promising to repay them in future with interest. The yield on those bonds – effectively the interest rate – has been rising for months. Higher yields mean the government must spend more just to service its debt, reducing the funds it has available for day-to-day spending or investment. Rachel Reeves has set herself two “non-negotiable” fiscal rules: - By 2029–30, all day-to-day government spending must be funded through tax income rather than borrowing. - Government debt must be falling as a share of national income by the same year. The challenge is that her buffer – the margin of safety built into her plans – is slim at around £10bn. Why are costs going up? The UK is not alone. Yields have been climbing in Germany, France, the Netherlands and the US. Several factors appear to be driving the change. The World Trade Organisation has said the world is currently “experiencing the largest disruption to global trade rules” in 80 years, with the impacts from the US tariffs perhaps not likely to be fully felt until next year. It also appears that investors may be selling off UK government debt due to concerns over the government’s financial plans, and this increases the rates that need to be offered to attract investors. What this means for the Autumn Budget One economist has estimated that Reeves may need to find between £18bn and £28bn in extra revenue at the Budget to avoid breaking her own fiscal rules. That raises the likelihood of tax rises. The government has so far stuck to its manifesto pledge not to raise income tax, VAT, or national insurance for “working people”. Assuming this continues, that limits the options available for raising taxes, but several possibilities are being speculated on. These include: - Extending the freeze on income tax thresholds – this so-called “stealth tax” drags more people into higher tax bands as wages rise. - Reforming property taxes and stamp duty. - The introduction of National Insurance for landlords. At this stage, these remain as speculation but they indicate that the Autumn Budget could be a challenging one. For the Chancellor, the challenge is not only meeting her fiscal rules but doing so in a way that maintains confidence in the UK economy. What this could mean for your business For business owners, the headlines about bond yields and borrowing costs might seem distant, but the consequences could well be felt over the coming weeks: - Potential tax changes – measures could be introduced to raise revenue. - Economic headwinds – higher borrowing costs for the government may translate into higher financing costs across the economy, including for businesses seeking loans or investment. - Policy uncertainty – until the Budget is delivered, businesses may find it harder to plan for tax and cost pressures. Looking ahead For businesses, the best approach for the next few months may be to plan cautiously. For instance, it would be worth stress-testing your business finances to see how they would cope with possible tax rises or higher borrowing costs. The Budget later this year will set the direction for government finances and, by extension, the business environment. Rising borrowing costs have narrowed the Chancellor’s options, meaning that decisions in the autumn could well have direct consequences for businesses across the UK. We will continue to keep you posted on the Budget news, but in the meantime, if you would like any help looking at how your business finances may be affected, please give us a call. We would be happy to help you! See:

After three years of losses, it’s been reported that Royal Mail has returned to profit under its new owner, Czech billionaire Daniel Kretinsky. While the £12m profit (excluding redundancy costs) is modest compared to the £336m loss the year before, it marks an important shift for a company that has faced falling demand, rising costs, and hits to its reputation. Royal Mail’s story provides food for thought on what it takes to adapt and grow your business in tough market conditions. Here are five lessons. 1\. Shift Focus to Growth Areas Royal Mail recognised that letter volumes are in long-term decline (down 4% in the latest year), but parcel volumes are rising (up 6%). By pivoting investment and strategy towards parcels - where customer demand and profitability lie - the business is working to realign itself with market reality. The lesson? Analyse your income streams to see if there are any areas where customer demand is increasing. Then focus more resources in that area, even if it means letting go of parts of the business that once seemed core. 2\. Streamline Operations Royal Mail has already stopped second-class letter deliveries on Saturdays to save costs. The Universal Service Obligation (USO) requires Royal Mail to deliver letters six days per week, Monday to Saturday, and parcels Monday to Friday. However, the USO is currently being reviewed and Royal Mail has argued that reducing second-class deliveries to every other weekday would save up to £300 million a year. It feels this would give it a “fighting chance.” The lesson? Regularly review the way your business operates to see if you’re doing work that drains resources but adds little value. Small changes in the way you do things could unlock big savings. 3\. Innovate for Customer Needs Royal Mail plans to install 3,500 solar-powered parcel post boxes across the UK. Solar panels on the top of the post boxes will power a digitally-activated drawer allowing for the posting of items as large as a shoebox. Customers will be able to use the Royal Mail app to use the service and can request proof of posting and tracking of their parcel, making it a more convenient way for customers to send small parcels. The lesson: Innovation not only can improve your reputation as a sustainable business but also help you better meet the needs of your customers. Innovation doesn’t have to be high-tech or complicated. Ask: ‘What small changes would make my customers’ lives easier?’ 4\. Invest in Brand and Trust Despite foreign ownership, Royal Mail kept its name, UK headquarters, and tax residency for at least five years. This was an agreed condition when Royal Mail was bought out, and the government has kept a so-called “golden share” that allows it veto rights on certain changes. However, this requirement has helped to maintain continuity and trust with customers. The lesson? In times of change, you can reassure your customers by keeping the things they rely on most consistent – whether that’s your level of service, how you communicate with them, or the quality of your products. Familiarity helps build trust and loyalty. 5\. Be Willing to Make Tough Calls Royal Mail has shed staff, absorbed strikes and endured reputational knocks. Yet leadership has made difficult and sometimes unpopular choices to put the company back on a sustainable path. The lesson? Growth often requires tough decisions, whether on staffing, pricing, or cutting loss-making activities. Avoiding them only delays how long it can take to put the business back on a positive footing. 6\. Adapt Business Models to Long-Term Trends The shift from letters to parcels reflects a deeper societal trend - digital communication replacing paper. Royal Mail’s survival depends on embracing this shift rather than resisting it. The lesson? Take time to examine what the long-term trends in your industry are. Are you positioned to thrive in five or ten years’ time, or might you be clinging to models that show signs of being in decline? What’s the key takeaway from all this? Royal Mail’s modest profit shows that even a 500-year-old organisation can adapt when forced to. Focusing on growth areas, cutting what no longer works, innovating around your customers’ needs, investing in trust, making tough calls and staying in touch with long-term trends can help your business continue to grow and thrive. If you’d like to talk through how these kinds of lessons could apply to your own business – whether that’s managing costs, adapting services, or keeping customers onside – we’d be happy to help! See:

Many business owners we work with feel caught up in the day-to-day drudge. They’re handling customer queries, fixing problems, chasing invoices - and wondering how they’ll ever find the time to step back and think about where the business is heading. The truth is, if your business relies heavily on you, it can feel impossible to take time out to work on strategy, growth plans, or even a long-term exit. That’s where systemising your business comes in. What Do We Mean by “Systemising”? Systemising simply means creating repeatable processes that don’t rely on your constant oversight. It’s about making sure the “how” of your business is written down, consistent, and easy for others to follow. The benefits? - More time for you – fewer fires to fight each day.   - Better customer experience – clients get the same high standards every time.   - A more valuable business – buyers pay more for a company that runs smoothly without the owner. Here are a few areas where systemising can make a big difference: - Onboarding new staff: Instead of spending hours explaining the same things, create a checklist or training video library. It saves time and ensures consistency.   - Sales process: Document the steps from first enquiry through to closing a sale. This helps staff handle leads in a consistent, professional way.   - Customer service: Use standard responses for common queries and a simple escalation process for problems. This reduces mistakes and keeps clients happy.   - Finance: Automate invoice reminders and set up clear procedures for credit control, so cash flow doesn’t depend on your memory.   - Marketing: Have a content calendar or email template bank so your marketing doesn’t stop when you’re busy. Linking Systems to Your Exit Plan If you’re thinking about selling your business in the next three to five years, systemisation is even more important. A potential buyer will ask: “Does this business depend on the owner?”, “Can it run without them?” or “Are there written processes that staff can follow?” The more “yes” answers you can provide, the more attractive your business becomes. A buyer isn’t just buying your products or customer list - they’re buying a machine that runs smoothly without you. First Steps to Get Started Of course, to systemise your entire business all in one go would likely be overwhelming. So, why not pick just one repetitive task you’re always involved in and write down the process? Other ideas you could think about include: - Asking your team where the “bottlenecks” are - often they already know which areas could run more smoothly and could help you put together a system to overcome the problem.   - Consider using simple tools (e.g. Trello, Asana, or even shared spreadsheets) to keep processes clear and visible.   - Try to block out some time in your diary each month to work on the business, not just in it. In short, systemising your business isn’t about bureaucracy - it’s about buying yourself time, reducing stress, and building a business that’s worth more when you eventually step away. If you would like personalised advice on areas in your business that would benefit from systemising, or you are looking to maximise the value of your business, please feel free to get in touch. We would be happy to help you!

HM Revenue and Customs have reported that 170,000 scam referrals were made to them in the year to July 2025. Encouragingly, this is a 12% reduction on the previous year, however HMRC are warning taxpayers to take care. Whether it’s emails pretending to be from HMRC, your bank or someone else, phishing scams are becoming harder to spot. They’re no longer just poorly worded emails full of spelling mistakes. Many now look professional, use company logos, and even include QR codes to try to trick you into clicking links or handing over details. For small business owners, falling for a phishing attempt can mean more than inconvenience - it could lead to stolen funds, lost data, or serious reputational damage. The good news is that the National Cyber Security Centre (NCSC) provides some clear guidance on the signs to look out for. The Common Red Flags Scam messages (whether email, text or phone call) usually try to make you act quickly without thinking. Watch out for these tell-tale tactics: - Authority: The message pretends to come from someone official (bank, HMRC, solicitor, or even your IT provider). Criminals pretend to be authority figures to pressure you into doing what they want.   - Urgency: “Act now or your account will be closed!” If you’re told to respond immediately or are threatened with fines or other negative consequences, it’s often a scam.   - Emotion: Fear (“you owe money”), excitement (“you’ve won a prize”), or curiosity (“see your confidential report”). Emotional triggers make you click without pausing.   - Scarcity: Offers of something “in short supply” - cheap tickets, limited-time tax refunds, or medical “cures”.   - Current events: Criminals exploit tax season, major sporting events, or big news stories to make scams look more believable. How to Check If a Message Is Genuine If something about a message doesn’t feel right to you, stop and don’t click any links or open attachments. Check the contact details in the message against the organisation’s official website (not the ones given in the suspicious message). It’s also good to remember that your bank or HMRC will never ask you to confirm account details or passwords over email or text. If it’s a phone call purporting to be from your bank, simply hang up and use the official number from your bank statement or credit card. Make Yourself a Hard Target With a few simple steps you can significantly reduce your risk and make it more difficult for scammers. You can: - Think about what personal information is posted about you online, as criminals may use this to make their messages seem more convincing. Check your privacy settings within your social media accounts so that you’re not sharing information more widely than you intended.   - Train your staff on how to recognise scam messages.   - Use multi-factor authentication (e.g. login codes sent to your phone) for all your online accounts.   - Keep devices updated with the latest security patches. Final Thought Phishing scams rely on speed and pressure. If you stop, take a breath, and double-check, you greatly reduce the chance of falling victim. Building awareness across your business can save you a lot of time, stress and money in the long run. See:

From 13 October 2025, Companies House will require all businesses to use GOV.UK One Login to access WebFiling. This change is part of a wider government move to introduce a single, more secure login system across all online services. What’s Changing? From 13 October 2025, you’ll need to connect your WebFiling account to GOV.UK One Login before you can continue filing. If you share your WebFiling account with others, only one person will be able to connect each WebFiling account to their GOV.UK Login. Anyone who shares access will need to create their own GOV.UK One Login, using a different email address. This is part of a wider move as the government intends for GOV.UK One Login to be increasingly used for accessing online services. What You Can Do to Get Ready To avoid last-minute issues, here are a few simple steps to take before October 2025: - Check your email addresses – make sure the email you use for WebFiling is current and accessible. If you also use “Find and update company information,” use the same email address for both.   - If you don’t already have one, you could set up a GOV.UK One Login in advance, using the same email as your Companies House accounts. This will make connecting smoother.   - Check that you have the authentication code handy for each company you file for. You may need to enter it when you connect your WebFiling account to GOV.UK One Login.   - Review who has access – if your team shares a WebFiling login, each person will need their own account going forward. Start planning how to manage this.   - Think about identity verification – while not compulsory until November 2025, directors and People with Significant Control (PSCs) can verify their identity early using GOV.UK One Login. If you try to sign into WebFiling after 13 October 2025, you’ll be redirected to connect your account with GOV.UK One Login. See:

The Bank of England reduced its base rate from 4.25% to 4.00% on 7 August 2025. Because HM Revenue and Customs (HMRC) interest rates are directly linked to the base rate, the interest charged on late tax payments and the interest paid on repayments will also fall. When the changes take effect - 18 August 2025 for quarterly instalment payments. - 27 August 2025 for non-quarterly instalment payments. How the rates are set Late payment interest is set at the Bank of England base rate + 4.0%. So, this will decrease to 8.0%. Repayment interest is based on the Bank of England base rate - 1.0%, with a minimum floor of 0.5% So, the interest payable on tax repayments will reduce to 3.0%. See:

The government’s Electric Car Grant (ECG) is now up and running, with more vehicle models eligible for discounts. Initially launched in July, the £650 million scheme offers savings on new electric cars priced at or below £37,000. The discount is either £3,750 or £1,500, depending on the vehicle’s sustainability and is applied directly at the point of sale, with no paperwork required from customers. The grant aims to make electric vehicles (EVs) more affordable by reducing the upfront purchase price and narrowing the cost gap with petrol and diesel models. This is part of the government’s broader commitment to phase out the sale of new petrol and diesel cars by 2030. From 9 August 2025, the scheme was expanded to include thirteen more EVs, bringing the total to seventeen models. Brands now on the list include Nissan, Renault, Vauxhall and Citroën, with more expected in the coming weeks as manufacturers’ applications are approved. Alongside the £650 million in grant funding, the government is investing £4.5 billion to accelerate EV adoption, with Britain already the largest EV market in Europe in 2024 and sales up by almost a third this year. Tax Advantages of Electric Company Cars Despite the grant, electric cars are still generally more expensive than petrol or diesel cars. However, for businesses and employees, EVs can also be worth considering because of the tax savings they bring when provided as a company car. - Benefit-In-Kind (BIK) rates for fully electric company cars are currently much lower than for petrol or diesel vehicles. For 2025/26, the BIK rate for zero-emission cars is 3% of the car’s list price, compared to rates often exceeding 20% for conventional vehicles. - Employers may also benefit from capital allowances - in some cases, qualifying new zero-emission cars can attract a 100% first-year allowance, meaning the full cost of the vehicle can be written off against taxable profits in the year of purchase. - There are further potential savings on Class 1A National Insurance contributions for employers, as these are based on the BIK value. If you would like help assessing whether an electric car purchase would benefit you or your business, please give us a call. We would be happy to help you! See:

The latest figures from the Office for National Statistics (ONS) indicate that the UK labour market is continuing to ease, although the slowdown remains measured rather than abrupt. Vacancies fell by 5.8% to 718,000 in the three months to July 2025, the lowest level since April 2021 when the economy was still affected by the Covid-19 pandemic. Outside of the pandemic period, vacancy numbers have not been this low since early 2015. The fall was broad-based across sectors, with hospitality and retail seeing the largest reductions. Payroll data showed 8,000 fewer people in employment between June and July. However, the unemployment rate remained unchanged at 4.7% and redundancy notifications in July were relatively subdued, suggesting a gradual cooling rather than a sharp deterioration. Former Bank of England policymaker Andrew Sentence noted that with more than 30 million people currently on payrolls, recent changes represent a modest proportion of the workforce. Ashley Webb, UK economist at Capital Economics, suggested that the modest fall in payrolls indicates that the impact of recent increases in employers’ national insurance and the minimum wage is beginning to settle. Political reactions to the data were divided. Chancellor Rachel Reeves described elements of the figures as positive but acknowledged the need to further reduce unemployment, which remains at a four-year high. Opposition parties criticised the government’s approach, citing higher taxes and increased regulation as barriers to job creation. Looking ahead, analysts suggest that the decline in vacancies could contribute to slower wage growth, currently steady at 5%. This is one of the indicators the Bank of England considers as it assesses inflationary pressures when setting the Bank’s base rate. Therefore, wage growth slowing could lead to further interest rate cuts. In summary, the data suggests that there’s a measured cooling of the labour market, with employers showing greater caution in recruitment. See:

Becoming a company director comes with a fair bit of responsibility - and not just when things are going well. Whether you're the hands-on type, more of a silent partner, or even directing behind the scenes, all company directors have legal duties under the Companies Act 2006. Here’s a straightforward look at seven key duties every director should be aware of: 1\. Follow the company’s constitution Your first duty is to stick to the rules set out in the company’s constitution and articles of association. These documents outline how the company should be run and what powers you have as a director. If you go outside those powers, you could be held personally responsible. 2\. Promote the success of the company You’re expected to act in the company’s best interests and promote its success. But that doesn’t just mean chasing profits. You also need to think about: - Long-term consequences of decisions. - The interests of employees. - Relationships with suppliers and customers. - The community and environment. - The company’s reputation. - Fairness to all shareholders or members. And if the company becomes insolvent? Your focus legally shifts to protecting the interests of creditors. 3\. Use your own independent judgment It’s fine to take advice, but at the end of the day, you’re responsible for the decisions you make. You must use your own judgment and avoid simply doing what someone else tells you - even if they’re another director or major shareholder. 4\. Exercise reasonable care, skill and diligence You’re expected to do the job to the best of your ability. The law takes into account your personal knowledge and experience. So, if you’re a qualified professional (like an accountant or engineer), you’ll be expected to apply the skill and experience you have in your role as a director. 5\. Avoid conflicts of interest You need to steer clear of situations where your personal interests (or those of family members) might clash with your responsibilities to the company. This includes things like: - Personal financial interests. - Competing businesses. - Inside knowledge you gained as a director. If there’s even a chance of a conflict, it should be declared to the board - and any process set out in the company’s articles of association should be followed. This duty even continues after you’ve stepped down as a director. 6\. Don’t accept benefits from third parties You mustn’t accept perks or gifts from others that could influence your decisions as a director. The only exception might be something like reasonable corporate hospitality, and even then, only if there’s clearly no conflict of interest. 7\. Declare any interest in company transactions If there’s a chance you could personally benefit from something the company is doing (say, awarding a contract to a business owned by a relative), you must declare it. Letting the board know is essential, and in some cases, you may need to step back from decisions altogether. Anything else? There are other general duties to keep in mind besides those listed above. Maintaining confidentiality, not misusing company property, and always acting in good faith would be some further examples. Being a director isn’t just about a title - it carries real legal responsibilities. If you’re ever unsure about your role or what’s expected of you, please feel free to speak to us at any time. A quick check now could save a big headache later.

If your business ever runs into financial difficulties, how you handle the situation can have serious and lasting consequences. That’s the message behind a recent case involving a Staffordshire director who’s just been banned from running a company until 2031. Kulbarg Singh, director of Aldridge Construction Engineering Ltd, has been disqualified for six years after selling off over £1.5 million worth of company assets to another company he also controlled - for under £500,000. In one part of the sale, Singh transferred seven historic vehicles - including two Jaguars and three Rolls Royces - for just £1. The cars alone were worth more than £100,000. In total, the company was left more than £1 million worse off from the under-priced sales. The company went into liquidation the following year, owing over £1.5 million to HM Revenue and Customs and other creditors. The Insolvency Service described Singh’s actions as deliberately putting the company’s assets out of reach of those creditors - and they’re now looking at ways to recover what they can. What to do if your company is struggling? The case serves as a strong reminder that there’s a need to take care if your company is in difficulty. If your business starts to show signs of insolvency (such as struggling to pay debts, or liabilities outweighing assets), it’s crucial to get advice early. The sooner you act, the more options you’re likely to have. While the temptation may be to protect shareholders, it’s important to remember that if the company becomes insolvent, your responsibilities as director will apply towards those the company owes money to, instead of the company. If you’re concerned about your company’s financial position or unsure about how to handle a specific situation, don’t leave it too late. A quick chat with us can save a world of stress later on - and help keep your business (and your reputation) intact. See:

The government has launched its Small Business Plan which it believes will help small businesses to grow and encourage entrepreneurs to start businesses. The plan recognises that small businesses make a vital contribution to the economy, employing 60% of the UK’s workforce and generating £2.8 trillion in turnover. Here is a breakdown of some of the key measures and how they may impact your business. Could This Be the End of Late Payments? Likely not, however the government is promising the toughest late payment legislation in the G7. They plan to introduce: - A legal requirement for large businesses to pay within 60 days, moving to 45 days over time. - Mandatory interest charges on late payments. - Greater powers for the Small Business Commissioner, including the ability to fine persistent offenders and carry out spot checks. - Audit committees to be legally obliged to scrutinise payment practices. These reforms could ease cashflow pressures for you and reduce the amount of time spent chasing invoice payment. Better Access to Finance The plan includes several measures that could increase access to finance, including: - 69,000 Start-Up Loans, paired with business mentoring. - A £3 billion boost to the British Business Bank to help more lenders offer loans. - £340 million in regional equity investment to help entrepreneurs across the UK. - A new Code of Conduct on personal guarantees for government-backed loans. These changes could mean that there will be more routes to affordable finance. Cutting Red Tape The plan promises to make a 25% cut in regulatory admin costs, and to make reforms to the tax and customs system to make things simpler and quicker. Any time saved on compliance and admin means more time for growing your business. Other Measures Other measures included in the plan include targeted support for high street businesses, education and training for the next generation of entrepreneurs, and helping businesses to take advantage of additional opportunities at home and abroad. To review the Small Business Plan in full, see:

From 18 November 2025, identity verification will become a legal requirement for all company directors and people with significant control (PSCs). This is part of a wider reform under the Economic Crime and Corporate Transparency Act 2023, and it’s set to impact millions of individuals connected to UK companies. If you're a company director or PSC, this change will affect you, and it’s important to understand what’s required - and when. What’s Changing? From 18 November 2025: New directors will need to verify their identity when incorporating a company or being appointed to an existing one. - Existing directors will be required to confirm they’ve verified their identity when filing their company’s next confirmation statement - this forms part of a 12-month transition period. - Existing PSCs will also need to verify their identity within a specific 12-month period, depending on their role and date of birth.   Why Is This Happening? The aim is to make the companies register more transparent and trustworthy, and to help tackle fraud and economic crime. With identity verification in place, it will be harder for individuals to hide behind fake names or false company appointments. What Does It Mean for Your Business? This is a one-off process for most people, and Companies House says it will be quick and simple - taking just a few minutes in most cases. The verification process can be completed via your GOV.UK One Login. Once the new rules come into effect, it will be an offence to act as a director without being verified. When Do You Need to Act? - If you’re appointed as a new director or PSC from 18 November 2025, you must verify within 14 days of being registered. -  If you’re an existing PSC, your deadline depends on your circumstances: - If you’re also a director, you must confirm that you have verified your identity within 14 days of the company’s confirmation statement date. - If you’re not a director, your 14-day deadline starts on the 1st day of your birth month in 2026 (as shown on the Companies House register). What If You’re Unsure? Companies House is contacting all companies via their registered email addresses with details and guidance. You’ll also be able to log into Companies House after 18 November to check identity verification due dates for all roles you hold. If you have any questions or need help, please just get in touch with us. We’ll be happy to help guide you or your company through the new requirements. See:

New government reforms will make it quicker and cheaper for small businesses to turn empty shops into cafes, bars and music venues, as part of a wider push to bring life back to high streets and support small business growth. Outdated planning and licensing rules will be overhauled under a new National Licensing Policy Framework, announced as part of the government’s upcoming Small Business Plan. The changes are designed to reduce red tape, cut costs, and speed up decisions for entrepreneurs looking to launch hospitality businesses in town centres. Key measures include: - Making it easier to convert disused shops into hospitality venues. - Creation of ‘hospitality zones’, where permissions for alfresco dining, street parties and extended opening hours will be fast-tracked. - Protection for existing pubs, clubs and venues, through the introduction of the Agent of Change principle, which makes new developers responsible for soundproofing if building nearby. - Standardised national rules to replace the current patchwork of local licensing regulations that often deter small operators from starting up. The aim is to help small firms grow, bring empty premises back into use, and give communities more places to meet, socialise and enjoy local events. Business and Trade Secretary Jonathan Reynolds said the changes are about replacing “shuttered up shops with vibrant places to socialise.” He concluded by saying that “when small businesses thrive, communities come alive.” The reforms build on the High Street Rental Auction Scheme, which allows councils to auction off leases for commercial properties that have been vacant for more than a year. See:

A businessman has been jailed for more than four years after hiding assets, illegally acting as a company director, and obtaining over £100,000 in credit while still subject to bankruptcy restrictions. Helim Miah, 46, of Lansdowne Road, was made bankrupt in 2006 owing £12.3 million. He was disqualified from acting as a company director for 13 years. Because of failing to cooperate with the Insolvency Service, he could not be discharged from his bankruptcy in 2007 or be released from his debts. He therefore continued to be restricted from forming new companies and obtaining credit. Despite this, Miah: - Used £130,000 from a company account to help buy a house in Cardiff. - Set up and ran companies while banned from doing so. - Took out loans, credit cards and overdrafts totalling well over £100,000, including finance for a car. He pleaded guilty to multiple offences and was sentenced at Merthyr Tydfil Crown Court on 24 July to four years and eight months in prison, along with a new 10-year director disqualification. The Insolvency Service said the case showed the serious consequences of ignoring bankruptcy law. See:

The International Monetary Fund (IMF) Executive Board has concluded its 2025 Article IV Consultation assessing that the UK economy is recovering, with modest growth expected this year and stronger momentum building into 2026. But global uncertainty, cautious consumers, and inflation pressures could still slow things down. The IMF forecasts growth of 1.2% in 2025, rising to 1.4% in 2026. Business investment is picking up, and public spending from the last budget is helping support the recovery. Inflation still a concern - but expected to ease While inflation is expected to average 3.2% this year, the IMF estimates that it should fall back to 2.3 percent next year. Government finances: on the right track, if plans hold The IMF says the government’s current spending and borrowing plans are about right - encouraging growth while keeping debt in check. But it stressed the importance of sticking to the deficit reduction plan over the next five years. Interest rates: gradual cuts make sense With inflation still above target and the outlook uncertain, the IMF supports the Bank of England’s cautious approach to cutting interest rates. Overall, the message is cautiously upbeat. Growth is returning, and the right policies are largely in place. But the IMF says it’s vital to prioritise long-term reforms - especially around skills, planning, and economic stability - and avoid frequent policy changes. See:

The government has announced the revival of the Pensions Commission, twenty years after it helped bring in automatic enrolment. Its goal is to stop future pensioners from being worse off than those retiring today. New government analysis suggests some worrying trends: - 45% of working-age adults are saving nothing into a pension - 4 in 10 people are undersaving for retirement - Self-employed workers, low earners and some ethnic minorities are most at risk of falling behind - There’s a 48% gap in private pension wealth between men and women It’s estimated that people retiring in 2050 could see 8% less private pension income than today’s pensioners. What’s the Commission going to do? The newly revived Commission will look at what may be stopping people from saving enough and will issue its final report in 2027. What does this mean if you’re a business owner or self-employed? If you're self-employed or run a small business, this news is a reminder to check in on your own retirement planning. The figures suggest that 3 million self-employed people aren’t saving into a pension. However, these figures don’t factor in that many business owners look to use their business as their pension. For instance, you may be planning to sell the business or property within it to fund retirement. Whatever the case, it’s practical to regularly review your planning to check that you will have enough to retire on. Contributing to pensions also carry some tax advantages which can be worth factoring in. Possible effects on employers could include auto-enrolment being expanded with increased costs or administration work. It’s too early to know what the Pension Commission will recommend, but it could pay to watch developments so that you can be prepared. See:

UK government borrowing was £20.7 billion for June, according to new figures from the Office for National Statistics (ONS) - an increase of £6.6 billion compared to the same month last year. While the overall figure is broadly in line with forecasts for the year so far, the rise has added pressure on Chancellor Rachel Reeves ahead of the Autumn Budget. Higher spending on public services, rising interest payments on debt, and weaker-than-expected tax receipts have contributed to the increase. What does this mean for taxpayers? Economists now widely expect that the Chancellor will need to find £15–25 billion later this year to meet her fiscal rules - particularly the commitment to: - Not borrow for day-to-day spending - Get debt falling as a share of national income by 2029–30 This makes tax rises a real possibility in the upcoming Budget. What kind of tax changes could we see? Obviously, nothing has been confirmed yet, but there is speculation about extending the freeze on income tax thresholds beyond 2028, which brings more people into higher tax bands over time. Other possibilities might include targeted tax increases on capital gains, dividends, pensions, or business reliefs, or maybe reforms to tax breaks - particularly those perceived as benefiting higher earners or larger businesses. At this stage it’s difficult to predict what could change, however we’ll continue monitoring developments as the Budget approaches. If you’d like to talk through your tax planning or discuss what changes could mean for you, please get in touch. See:

On 21 July 2025, HM Revenue & Customs (HMRC) announced its Transformation Roadmap – a plan to modernise the UK’s tax and customs systems by 2030. HMRC have said that the aim of the Transformation Roadmap is to make the tax administration system more automated, more focused on self-service and better set up to get things right first time. The roadmap includes more than 50 IT projects, services and measures. Let’s see what some of these include. New PAYE service As part of the Transformation Roadmap, a new online PAYE service will be launched that’s designed to give all UK PAYE taxpayers easier access to their tax affairs. Through their Personal Tax Account or the HMRC app, employees will be able to check and update things like: - Income details - Tax codes - Allowances and reliefs - Work-related expenses For employees, this should mean more visibility and control of their tax. For employers, it could mean fewer questions from staff about their tax codes or deductions - especially if you're already fielding those awkward "why has my tax changed?" queries. If you run payroll or support employees with benefits or expenses, it’s a good idea to keep an eye on these updates. Over time, staff might expect you to understand and even guide them through using these services. Push for 90% Digital by 2030 HMRC is clear that they feel the future is digital. Their goal is for 90% of customer interactions to happen digitally by 2030. That means less reliance on letters and phone calls, and more emphasis on apps, online forms, and AI-powered assistants. In fact, HMRC believes they can save £50 million a year just by reducing paper correspondence. Post will still exist, but only for critical correspondence and those who genuinely need it. AI and Automation Artificial Intelligence (AI) is playing a big role in this transformation. HMRC will use it to: - Help staff summarise calls and cases - Improve online guidance with digital assistants - Spot fraudulent documents using biometric checks - Develop principles for how third-party software (like payroll or tax apps) should interact with HMRC systems It seems there is a growing emphasis on real-time data and compliance. For example, the introduction of a Digital Disclosure Service will allow taxpayers to correct mistakes more easily - but also means HMRC will have better tools to spot issues. What Else is Coming Soon: A Few Key Projects A few measures that HMRC are planning to rollout in this tax year include: - SMS confirmations for Self Assessment updates and some PAYE services - A more streamlined process for registering or exiting Self Assessment - Voice biometrics to speed up telephone verification - A new option for higher earners to manage Child Benefit charges through their tax code There’s also a focus on tackling offshore tax avoidance, especially among high-net-worth individuals. Tax avoidance amongst non-compliant umbrella companies will also be targeted. What’s Coming Later? HMRC will be looking at how they can modernise the penalties they charge for late tax payments and will be providing an update on how they plan to do this later in the year. Other measures that are in the pipeline include: - Digitising the Inheritance Tax service - Allowing agents to submit information that affects a tax code digitally - An electronic trade documentation pilot looking at how to improve customs operations New legislation is also planned for April 2026 that will make recruitment agencies legally responsible for accounting for PAYE where they use umbrella companies - so if you use workers in such an arrangement that’s going to be worth a closer look. What Should You Do Now? Here are a few simple steps to consider: - Encourage employees to activate and explore their Personal Tax Accounts if they have questions about their tax code. - If you use payroll software, keep an eye on updates from your software provider to make sure your system remains compatible with future HMRC requirements - Stay informed - we’ll be keeping an eye on the rollout and will continue to share relevant updates. - Plan ahead for compliance - it looks as though HMRC will be quicker to penalise when things aren’t done right. If you’re unsure how these changes might affect your business - or you’d like help reviewing your payroll, compliance processes, or digital readiness - we’re here to support and help you. To read the Transformation Roadmap in full, see:

New government reforms to the UK Internal Market Act aim to make it easier for businesses to trade across England, Scotland, Wales and Northern Ireland - with less friction and more certainty. Following feedback from businesses, the changes are designed to simplify the rules that apply when trading across the UK’s four nations, while still allowing each devolved government to reflect local priorities. What’s changing? - Clearer and more consistent rules across the UK to help avoid confusion and unexpected costs when doing business across borders. - Fewer trade barriers – particularly when rules in one nation differ slightly but don’t have major economic impacts. - Greater transparency and engagement in how new rules are developed, with opportunities for businesses to get involved made easier. - Devolved governments will still be able to make decisions that suit their regions, but the process will be more collaborative and business-focused. Why it matters The UK’s internal market supports over £129 billion of trade each year – a lifeline for many small and medium-sized firms, especially those in Scotland, Wales and Northern Ireland, where sales to the rest of the UK often make up over half their external trade. What business owners should consider - If you trade across borders within the UK, you may find processes more straightforward in future, with less chance of being caught out by diverging regulations. - Keep an eye on consultations and rule changes, particularly in sectors like manufacturing, chemicals, food, and retail – areas likely to see more aligned rules. -  Use the breathing room to plan – clearer rules mean more confidence in pricing, logistics and investment decisions. This could be a positive step for UK-wide trade, particularly for businesses that operate across more than one nation. If that’s you, it’s worth reviewing how these reforms could help you. See:

The Tax Faculty of the Institute of Chartered Accountants in England and Wales (ICAEW) is encouraging employers to take a fresh look at the Employment Allowance. If you have a payroll and are not already claiming this allowance, it could reduce your employer national insurance contributions (NICs) by up to £10,500 for the 2025/26 tax year. It’s a simple, practical incentive that’s already widely used – over 1.2 million employers claimed it in 2024/25 – but some businesses are still missing out, especially newer or smaller employers unfamiliar with the scheme. What is the Employment Allowance? The allowance reduces an employer’s Class 1 NIC liability, and is applied through your payroll, meaning you feel the benefit in real time. - The allowance reduces the employer’s NIC liability, not an employee’s. - It’s worth up to £10,500 in 2025/26. Who can claim? The ICAEW’s Tax Faculty point out that all employers, including businesses, charities and individuals employing a care or support worker can claim, with the following exceptions: -  Public authorities (who do 50% or more of their work in the public sector) other than charities. -  Single-director companies where the director is the only paid employee. One restriction to note is that if you employ someone whose earnings are subject to the off-payroll working rules, or a nanny or gardener or someone else providing personal household or domestic work (and they’re not a carer or support worker), then the allowance can’t be used to offset the Employers NIC due on their specific wages. Also, if your business operates multiple payrolls or is connected to other companies (e.g. within a family business structure), you can only claim once. Determining whether companies are connected isn’t always straightforward to work out, so it’s best to get advice if you’re unsure. What’s new for 2025/26? -  The maximum allowance has risen to £10,500 (previously £5,000). - Restrictions that previously blocked many larger employers from claiming have been lifted. - It no longer counts as de minimis state aid, simplifying compliance for many. Can you claim for previous years? Yes - you can go back four tax years. Which means if you were eligible but didn’t claim Employment Allowance for the 2021/22 tax year, you still have until 5 April 2026 to make a claim. The eligibility requirements can vary for different tax years, so the ICAEW advises that you check the specific eligibility rules for each year before making a retrospective claim. Bottom Line If you’re not already taking advantage of it, the Employment Allowance offers real cash-flow benefits. If you would like help in making a claim or checking if you are eligible, please get in touch and we would be happy to help you. See:

Business owners across the UK are facing an increasingly complex economic picture. Inflation has crept up again and recent figures show the economy has contracted for two months in a row. So, what’s really going on - and what should you be doing as a business owner? Inflation rises again The latest figures from the Office for National Statistics show inflation rose to 3.6% in the year to June, up from 3.4% in May. This is the sharpest increase since January 2024 and was driven mainly by rising motor fuel and food prices. Food price inflation has increased for the third consecutive month. The Bank of England expects inflation to peak around 3.7% in the summer before easing towards its 2% target later in the year. But for now, rising prices are continuing to put pressure on households and businesses alike. Economic growth faltering The economy shrank by 0.1% in May, following a 0.1% fall in April. These figures were worse than expected and are mainly down to a drop in manufacturing and weak retail sales. While the economy saw strong growth earlier in the year, that now looks like a temporary boost - partly due to changes in US tariffs and the end of the UK stamp duty break. Although the economy isn’t technically in recession, it is clearly struggling. Business confidence and activity in some sectors remain fragile, and growth may be modest in the months ahead. Interest rate cuts on the horizon There may be some relief ahead in the form of lower interest rates. Bank of England governor Andrew Bailey has said he believes the path for rates is “downward”, and many economists expect a rate cut at the next review in August. Rates currently sit at 4.25%. A rate cut would reduce the cost of borrowing and could help ease pressure on mortgages, loans and credit. The Bank is being cautious because inflation is above target. However, Mr Bailey indicated that if the job market is showing signs of cooling down the Bank will be prepared to make cuts. There are signs of that happening. The number of job vacancies has fallen to its lowest level since 2021, and more people are now available for work. Many employers are struggling to absorb increased payroll costs due to the government’s recent increase in National Insurance for employers as well as the National Living Wage. As an example, National Trust cited these as reasons for its plan to cut 550 jobs from its payroll over the next few weeks.  What are the takeaways for your business Here are some key takeaways and practical tips for navigating the current climate: 1\.   Keep an eye on costs: With inflation on the rise again, review your costs - especially around fuel, food and other goods affected by price increases. If you can, negotiate supplier contracts early to lock in rates. 2\.   Plan for potential interest rate cuts: If your business has borrowing (loans, overdrafts or credit lines), a rate cut in August could reduce your costs. Consider reviewing repayment terms or refinancing if you expect rates to drop further later in the year. 3\.   Watch your cashflow: If the economy is stalling, demand in some sectors may weaken. Make sure you have a clear view of your cashflow over the next 3-6 months. Adjust your spending plans if needed and chase payments due from your customers promptly. 4\.   Take care with hiring decisions: Given slower economic growth and higher employer NICs, it’s sensible to be cautious with recruitment. Consider flexible or temporary options if you’re unsure about long-term demand. 5\.   Exporting? Look abroad for growth: Some UK businesses are still thriving by focusing on overseas markets. If your product or service can be exported, this may be a way to grow even if domestic demand softens. 6\.   Be ready for tax changes at the Autumn Budget: The Chancellor will face difficult choices later this year, and some are anticipating further tax changes. We’ll be keeping you updated as we learn more. Final thoughts It’s a challenging environment, but not without opportunities. If you stay alert, control what you can, and keep your plans flexible you’re likely to be well placed to keep your business resilient as the economic picture develops. If you need help reviewing your costs, cashflow or hiring strategy in light of these changes, we’re here to help.

The Government's new Pension Schemes Bill, currently before Parliament, introduces wide-reaching reforms aimed at improving outcomes for pension savers. These changes will not only affect how pensions are administered but also impact scheme selection, cost management, and employee engagement over the long term. Figures released last week suggest that the average worker on an average salary saving into a pension pot over their working life could benefit by up to £29,000 when they retire. Here are two of the measures that could particularly affect small employers. 1\. Automatic Consolidation of Small Pension Pots Small pension pots under £1,000, often created when employees change jobs, will now be automatically consolidated into large, authorised schemes that have been certified as delivering good value. This change will reduce the administrative work involved in holding and reporting on multiple inactive pots. This could have an indirect benefit to employers too. 2\. Schemes Will Need to Prove They Are Value for Money Pension schemes will need to meet new regulatory standards to prove they offer long-term value, not just low charges. This will help protect savers from getting stuck in underperforming schemes. The intention is to help employees get the best possible retirement outcomes. As an employer, you will need to make sure the default pension scheme you use is meeting these standards. Failing to do so will run the risk of being required to switch schemes. In addition, a poorly performing scheme could affect the value of the benefits package you offer and might lead to losing existing or potential employees. What Can You Do to Prepare? - It may be worth speaking to your pension adviser so that they can provide you with specific advice on the pension scheme you use and its value. - As the value-for-money requirements become clear, review your pension provider to ensure they’re on course to meet the requirements. - Employees may have questions about how the changes may affect their pension, so be ready to communicate with them early and provide support where needed. - These changes may create an opportunity to re-evaluate how your workplace pension supports retention and financial security for your workforce. By staying ahead of these changes now, you can ensure your business continues to provide high-quality, compliant pension arrangements that support your employees' long-term financial wellbeing. See:

The Employment Rights Bill is currently making its way through Parliament, and some important amendments have been announced that employers will want to be aware of. These two updates relate to how employers handle issues of harassment and pregnancy loss. 1\. Non-Disclosure Agreements (NDAs): New Restrictions on Use The Bill includes a proposal to ban the use of NDAs that prevent employees from speaking out about harassment, including sexual harassment and workplace discrimination. These clauses, which can often be found in settlement agreements, will no longer be enforceable where their purpose is to stop someone from discussing such experiences. Witnesses will also be protected – meaning that individuals who have seen or supported someone through harassment can speak up without risk of breaching confidentiality. This means that where NDAs have been used to silence or discourage people from speaking about an allegation of harassment or discrimination, that approach will no longer be supported by law. 2\. Bereavement Leave for Pregnancy Loss: A New Legal Right Another key amendment introduces a new right to bereavement leave for families affected by a pregnancy loss before 24 weeks. Currently, statutory Parental Bereavement Leave only applies where parents lose a child under 18 or experience stillbirth after pregnancy has reached 24 weeks. This change recognises that grief doesn’t depend on how far along a pregnancy was. What to consider: Employers will need to offer protected time off for pregnancy loss from day one of employment, once the Bill becomes law. This is a good opportunity to review your bereavement and sickness policies, and make sure they reflect the needs of employees going through these difficult experiences. Many businesses have already taken steps to build more compassionate policies in this area, and this change will help ensure greater consistency and clarity across the board. Wider context: The Plan for Change These proposals sit alongside wider measures in the Bill aimed at improving job security and working conditions. The government has said these reforms are intended to support both workers and businesses, helping employers build strong, sustainable teams while protecting people through major life events. We’d recommend that you continue to monitor developments as the Bill progresses through Parliament. This will allow you to be ready with your policies and communications with staff. To review more information on the NDAs measure, see [here](https://www.gov.uk/government/news/ban-on-controversial-ndas-silencing-abuse). To review more information on the measure for bereavement leave, see [here](https://www.gov.uk/government/news/employment-rights-bill-to-increase-bereavement-leave-for-families-who-face-pregnancy-loss).

If you’ve ever reached the end of a busy month wondering where your profits have gone, you’re not alone. For many small business owners, cash seems to disappear faster than it arrives. While sales are important, its cash flow – the money coming in and going out – that keeps your business alive. So, asking “Where did the money go?” can be your key to regaining control of your cash. Where to Start Effective cash management starts with visibility. Without a clear understanding of where your money is going, it’s difficult to: - Spot wasteful or unnecessary costs - Plan for tax payments or seasonal dips - Invest with confidence in equipment or opportunities to grow - Avoid last-minute scrambles to cover payroll or bills In short, if you can’t track it, you can’t manage it. Common Money Drains Business owners are often surprised by how much they spend on the “small stuff” - subscriptions, software licenses, office supplies, travel costs, or energy bills. These often fly under the radar but add up quickly. Similarly, inconsistent pricing, uncollected invoices, or excess stock can quietly eat away at your margins. What You Can Do 1\.   Review Your Spending Monthly: Make time each month to review your bank statements and P&L reports. Look for patterns, unexpected charges, and trends in your expenses. This will make it easier to see where adjustments can be made to reduce spending. 2\.   Use Cash Flow Tools: Accounting software or spreadsheets can make a huge difference. A simple Excel cash flow template can allow you to forecast, monitor, and adjust in real time. 3\.   Separate Personal and Business Finances: Mixing the two creates confusion and risk. Keeping them separate makes your cash situation easier to monitor. 4\.   Set Spending Limits: Give yourself boundaries, capping monthly spend in certain areas. Being disciplined will help you to avoid overspending. 5\.   Revisit Your Pricing: If your costs have increased but your prices haven’t, your margins may be suffering. Reviewing your pricing structure will help you to make sure your income is keeping pace with your expenses. The Takeaway Asking “Where did the money go?” isn’t a sign of failure - it’s a sign that you’re ready to take control. By building better awareness of how money flows through your business, you’ll be better placed to plan, save, and grow. Fancy taking this a step further? Why not get in touch and we would be happy to help you!

UK house prices recorded their steepest monthly fall in over two years in June, according to the latest data from mortgage lender Nationwide. Prices declined by 0.8%, marking the largest drop since February 2023. While annual growth remained positive at 2.1%, this was the slowest year-on-year increase in nearly 12 months. The downturn appears to reflect cooling demand in the wake of stamp duty threshold changes introduced in April. Stamp Duty Changes and Market Adjustment The stamp duty reforms mean that homebuyers in England and Northern Ireland now start paying the tax on properties over £125,000, down from the previous threshold of £250,000. First-time buyers also saw their exemption limit reduced, which has likely dampened enthusiasm, especially in lower to mid-range property brackets. The reforms prompted a surge in transactions before the deadline, leading to a temporary drop-off in activity afterward - a trend many analysts suggest will be short-lived. Outlook for the Housing Market Despite the June dip, forecasters including Nationwide expect activity to rebound in the coming months. Factors supporting the market include: - Low unemployment - Earnings continuing to outpace inflation - Potential interest rate cuts from the Bank of England later this year Recent increases in mortgage approvals point toward a possible stabilisation or recovery in the second half of the year. Implications for Businesses For businesses, the short-term dip in house prices and transaction volumes may signal temporary caution among consumers. However, the broader economic indicators suggest that this is more of a pause than a downturn. See:

The government has launched a full review of the UK’s parental leave and pay system, aiming to make it fairer, simpler and better suited to the needs of modern families. This is part of the government’s wider ‘Plan to Make Work Pay, and it could lead to significant reforms in how maternity, paternity and shared parental leave work – with the potential to affect businesses and employers across the country. Why now? The review comes in response to growing concern that the current system is complicated and unaffordable for many families – especially new fathers and partners. Currently, one in three dads don’t take paternity leave, often because they simply can’t afford to. Shared parental leave is available but uptake remains very low. What’s being reviewed? The Government will be looking at the whole parental leave system, from maternity and paternity leave through to shared parental leave. The goal is to make the system work better for both parents and employers. What this might mean for you If you employ staff, particularly younger adults or growing families, this review could eventually lead to changes in your statutory obligations. It might mean: - Higher levels of statutory pay - Longer periods of paid leave for both parents - Changes to how shared leave works and is applied for But it could also mean simpler rules to navigate, which would be welcome for many employers! It’s worth keeping in mind that these changes won’t happen overnight. The review will gather views from parents, businesses and experts across the country before any new policies are introduced. What can you do now? Right now, there’s no action required – but it’s worth keeping this on your radar. Here are a few tips: - Stay informed: If draft proposals come out later this year, there may be a chance to have your say - Review your current policies: Make sure your employee handbook or contracts reflect the current legal entitlements correctly – especially if you haven’t looked at them in a while. - Be prepared for change: While we don’t know the final shape of any reforms, there’s a clear signal that better support for working parents is a priority for the Government. See:

Following publication of the Employment Rights Bill in October 2024, the government has published a comprehensive implementation roadmap. The roadmap outlines a phased timeline for one of the most significant overhauls of UK employment law in decades. Aimed at raising living standards and strengthening workplace protections, it’s estimated that the reforms will affect around 15 million workers, or half of the UK workforce. The legislation is part of the Government’s plan to Make Work Pay, as well as its Plan for Change. It introduces new entitlements for employees, creates new enforcement mechanisms, and sets out clearer obligations for employers. The Bill, which has passed through the House of Commons, is now at the Report Stage in the House of Lords. Key Changes and Implementation Timeline The Employment Rights Bill will be introduced in phases, beginning shortly after its passage through Parliament and extending into 2027. The government has said this staged approach is intended to give businesses the clarity and lead time needed to plan and adjust. Here’s a broad outline of when key changes are likely to take effect. Immediate (once granted Royal Assent): - Repeal of the Strikes (Minimum Service Levels) Act 2023 and most of the Trade Union Act 2016. - Protections against dismissal for workers involved in industrial action. From April 2026: - Statutory Sick Pay (SSP) eligibility extended by removing the lower earnings limit and waiting period. - Day one rights to paternity leave and unpaid parental leave. - New whistleblowing protections. - Creation of the Fair Work Agency to enforce employment rights. - Doubling the maximum period of the protective award in cases of collective redundancy. - A package of trade union measures, including simplifying recognition processes and electronic and workplace ballots. From October 2026: - Legislation to ban fire and rehire practices. - Establishment of a fair pay agreement negotiating body for adult social care in England. - Strengthened tipping laws, requiring consultation with workers on fair distribution. - Employers required to take “all reasonable steps” to prevent sexual harassment. - New duties on employers to prevent third-party harassment. - Further trade union rights and protections, including stronger safeguards for union reps. In 2027: - Enhanced dismissal protections for pregnant women and new mothers. - Bereavement leave for workers. - End to exploitative zero-hours contracts, with requirements for predictable hours. - ‘Day one’ rights to unfair dismissal protection. - Expanded access to flexible working arrangements. - Gender pay gap and menopause action plans (to be introduced on a voluntary basis in April 2026). - Clarified requirements for preventing workplace harassment. - A modern framework for industrial relations. Business Implications For employers, the roadmap presents a number of changes that will require preparing for and adapting to over the coming months and years. The Government has stated it will publish detailed guidance ahead of each implementation date, alongside additional support via organisations such as Acas. The reforms are likely to increase employers’ responsibilities in areas such as record-keeping, employee relations, and compliance with new procedural standards. Hospitality, social care, and retail businesses, which often rely on flexible contracts or lower-paid workforces, may experience particular impacts. With some measures coming into effect from April 2026, you may wish to begin reviewing your HR strategies, employment contracts, and risk management practices now. The roadmap also signals a shift in the relationship between employers and trade unions, with increased access rights and simplified processes for recognition and balloting. The expansion of employment protections from day one represents a significant departure from the current law. Looking Ahead Having clear timelines and advance publication of guidance should help with navigating the changes. There are also indications that there will be further consultations in some areas to make sure that the measures implemented will be practical. For further information and full timelines, see:

The UK Government has launched a major 10-year Industrial Strategy aimed at cutting business costs, creating over 1.1 million good skilled jobs, and making the UK a world leader in clean, competitive industries. A headline measure is a plan to cut electricity bills by up to 25% for more than 7,000 energy-intensive businesses starting in 2027. Companies in sectors like automotive, aerospace, steel, and chemicals will benefit from new exemptions on energy levies and deeper discounts on electricity network charges. These changes, delivered through the British Industrial Competitiveness Scheme and an expanded British Industry Supercharger, aim to reduce the UK’s industrial energy costs - some of the highest in the developed world - and help British firms compete globally. The new strategy also tackles delays in connecting to the energy grid, with a Connections Accelerator Service expected to launch at the end of 2025 to speed up access for major investment projects. What It Means for Businesses Looking to Grow The strategy includes measures that could make a real difference for businesses with ambitions to scale up or modernise. These include: - Technology adoption support for more than 5,000 firms through the _Made Smarter_ programme - A streamlined centralised Business Growth Service to make government support easier to access - Simpler planning rules and faster grid connections for new sites and facilities - Easier access to investment and skills training, including short courses in high-demand sectors - Cutting red tape, reducing regulatory costs for businesses by 25% These measures may help to give growth-focused businesses the tools and confidence to invest, hire and compete. Targeted Investment Across Key Sectors The strategy focuses on eight high-potential sectors, including clean energy, advanced manufacturing, digital and technologies, creative industries, and professional and business services, with tailored plans and billions in public and private investment. While the [Industrial Strategy](https://www.gov.uk/government/collections/the-uks-modern-industrial-strategy-2025) has been welcomed by many business leaders, the strategy’s success will depend on how it is delivered and implemented across the coming decade. See:

If you earn extra income from a side hustle, you could be legally required to register for Self Assessment and complete a tax return - and it’s better to get ahead of it now, rather than wait until the January deadline. The threshold is simple: if you earn more than £1,000 in a tax year from any additional income, you may need to file. This applies whether you’re selling online, renting out property, freelancing, creating content, dog walking, tutoring, or even trading cryptoassets. Why Act Now? Filing early means you: - Avoid the stress of the January rush - Know what you owe sooner, so you can budget or set up a payment plan - Get peace of mind by knowing your tax affairs are in order You don’t need to pay immediately - the deadline for payment is still 31 January 2026 for the 2024-25 tax year - but getting your return done early gives you options and avoids surprises. Many people running side hustles or earning income outside of employment simply don’t realise that tax rules apply - until it’s too late. If you’re unsure whether you need to file, or want help staying compliant, get in touch with us. We’ll guide you through what’s required and make it as straightforward as possible.

The government has announced plans to raise an additional £7.5 billion by stepping up efforts to close the tax gap - the difference between the tax HMRC expects to collect and what is actually paid. Figures published on 19 June show that £46.8 billion in tax went unpaid in the 2023-24 tax year. That’s 5.3% of the total tax due, slightly up from previous estimates. Small Businesses Under the Spotlight The data reveals that small business non-compliance accounts for 60% of the total tax gap, with Corporation Tax accounting for 40%. The most common causes are: - Failure to take reasonable care (31%) -  Error (15%) - Tax evasion (14%) As a result, HMRC is intensifying compliance work - particularly within the small business sector - with a clear aim to improve accuracy, reduce mistakes, and clamp down on evasion. What's Changing? The government has committed £1.7 billion over four years to fund more HMRC staff, including 5,500 compliance officers and 2,400 debt management roles. Meanwhile, HMRC’s Making Tax Digital (MTD) programme continues to expand. It’s expected to generate £4 billion in additional VAT over the next four years by reducing errors. MTD for Income Tax comes into force from April 2026, and this is forecast to raise £1.95 billion in additional tax revenue by 2030. What This Means for Your Business With HMRC stepping up compliance efforts, now is the time to make sure your business accounts and tax affairs are in order. One of the biggest changes on the horizon is Making Tax Digital (MTD) for Income Tax, due to start in April 2026. Initially, it will affect anyone who earns over £50,000 from self-employment or property income. However, in future years this limit will drop to £30,000 and then £20,000 by April 2028. Under MTD, you’ll need to: - Keep digital records of your income and expenses - Submit quarterly updates to HMRC using MTD-compatible software - File an annual final declaration This is a major shift in how tax is reported - and planning ahead is essential to avoid disruption. While HMRC says the majority of taxpayers pay what they owe, the pressure is clearly growing to close gaps and improve standards - particularly among smaller businesses. If you’re unsure whether your current systems and processes meet HMRC’s expectations or want to get ahead of the MTD changes coming in 2026, please give us a call. We would be happy to help you! See:

According to the latest figures released by the Office for National Statistics, the main rate of inflation decreased from 3.5% in April to 3.4% in the year to May. Looking at the figures behind the headline rate shows that food prices have increased for the third month in a row. At 4.4%, this represents the highest inflation rate for food since February 2024. Some feel that these increases are because businesses are passing on the costs of April’s increase in employer’s national insurance. However, this is not the only factor at play. Prices for chocolate have increased by 17.7% in the year to May. This is primarily due to bad harvests in areas that produce cocoa meaning that stocks of chocolate have been low and pushing prices up. The figures showed some good news though in the form of cheaper travel prices. While inflation had reduced in the earlier part of the year, the current figures show that inflationary pressures continue to be felt. See:

The Monetary Policy Committee (MPC) has decided to keep the Bank of England base rate at 4.25% following its latest review last Thursday. Their decision was not a great surprise. Inflation is currently standing at 3.4% for May, which is a slight drop since April but is still a significant high after reductions in the rate earlier this year. The MPC considers that inflation will now remain at this level for the rest of the year before falling back towards 2% next year. The MPC also noted their concerns over a softening in the labour market and continued global economic uncertainty, referencing the recent escalation in the conflict in the Middle East. What this means for your business: - Borrowing costs remain steady for now. The MPC’s comments suggest that further rate cuts could be made later in the year and lenders may respond to that by dropping their rates, even in advance of any future cut. - No change for returns on savings. You should review any cash reserves you hold to ensure they’re earning interest. - The inflation figures suggest that costs remain a concern, and this is likely to remain the case for the rest of the year. So, it could be important to plan conservatively for the coming months. The Bank continues to take gradual, cautious steps when it comes to interest rates. If you’d like to review your funding or cash flow strategy, we’re happy to help. See:

If you're considering buying a property, especially as an investment, one of the key decisions you'll face is whether to hold it personally or through a limited company. This choice can have long-term tax, financial, and administrative implications, and there’s no one-size-fits-all answer. Here’s a look at some of the main considerations. Tax on Profits One of the most common reasons people use a limited company is the difference in how profits are taxed. If you own a property personally, rental profits are taxed as income. If you are a higher-rate taxpayer that could mean a tax rate of up to 45%. Mortgage interest relief is also restricted under current rules, meaning higher-rate taxpayers can no longer deduct all their finance costs. With a limited company, rental profits are subject to corporation tax, and all mortgage interest can be treated as a business expense. However, if you want to take money out of the company, usually done through dividends or salaries, there is likely to be further tax to pay. So, the benefits depend on what you plan to do with the income. Tax on Selling the Property If the property is sold at a profit, there are differences in how Capital Gains Tax (CGT) applies. Individuals have a CGT tax-free allowance with the rate of tax paid depending on their income and the property type. Companies on the other hand simply pay corporation tax on the gain. However, companies have no tax-free allowance and there can be different rules that apply to how the gain is calculated. Again, the right route depends on your plans - whether you're building long-term wealth inside a company or want easier access to the proceeds personally. Mortgage Availability and Costs Getting a mortgage through a limited company can be more complicated and is often more expensive, with fewer lenders and potentially higher interest rates. Lenders will also usually require a personal guarantee from the directors. Administrative and Legal Responsibilities A company comes with extra administrative and legal responsibilities. There’s filing annual accounts, confirmation statements, corporation tax returns, and keeping proper records that all need to be considered. If you already run a company, this might not be an issue, but if not, it’s important you factor in the time and cost. Inheritance and Succession Planning Owning property through a company can offer more flexibility in passing wealth on to family members. Shares in a company can be gifted or passed on more easily than physical property - though care is still needed because of tax implications. So What’s Best? The best option depends on your goals: whether you need the income now, plan to reinvest profits, want to keep things simple, or are thinking long-term about passing assets to others. There’s no single answer - and the rules can change over time. We have a ‘Property – in or Out?’ tool that we can use to help you determine whether it is better for you to own property inside or outside of a company. If you're unsure which route suits you best, this tool is a great place to start. Please get in touch and we would be happy to help you!

New data from the Office for National Statistics suggests that UK businesses are continuing to slow down recruitment, with job vacancies falling by 63,000 between March and May. While this doesn’t indicate a full-blown jobs crisis, it’s a clear sign that the labour market is cooling. The unemployment rate rose to 4.6% (from 4.5%), the highest it has been in nearly four years. What’s Driving the Change? Rising employment costs are a big factor. From April, employers have had to pay higher National Insurance contributions, and the national minimum wage has gone up too. The figures suggest that these changes are affecting how businesses manage staffing. According to the ONS, some employers are choosing not to replace staff when they leave or are putting off recruiting new workers altogether. While average wage growth between February and April slowed slightly to 5.2%, it still outpaces inflation, which rose to 3.5% in April. This suggests that although wage pressure is slowing, employers still need to carefully manage pay expectations. What This Means for Your Business If you’re finding recruitment more difficult or too expensive, the figures suggest that you’re not alone. This could be a good time to: - Review staff roles and make sure people are focused on the tasks that really help the business succeed right now. You might find some responsibilities can be reshuffled or streamlined to save you time and money. - Think about more in-house training. Someone already working for you might be able to take on more with the right training. This could be a better option than hiring someone in with those skills. - Check what support is available. There may be grants, training funds or wage subsidies on offer in your area that could help with staff development and easing your costs. If you need help with reviewing your staffing strategy or payroll planning, please give us a call. We would be happy to help you! See:

Last week, the Chancellor unveiled her Spending Review setting out how government departments will allocate money over the coming years. While much of the focus was on large-scale public services like the NHS and schools, there are some important signals here for businesses to take note of - both in terms of opportunity and outlook. Zero-based Review A theme of the review was scrutiny. The Chancellor described the exercise as a “zero-based” review - meaning department budgets were built from scratch, rather than from making changes to what was already in place. The aim, according to the government, was to focus spending only where it delivers value for money. This may strike a chord with you as a business owner. As you plan for upcoming months, there’s something to be said for taking a zero-based approach yourself. You could do this by questioning whether each cost is still serving the business. This may help you see areas where reallocating funds could help the business grow or be more efficient. Everyone is Under Pressure with Costs Public sector pay rises in education and healthcare are being part-funded through expectations of increased “productivity” in those sectors. This provides a reminder that cost pressures are widespread and efficiency will be a watchword in public contracts and procurement. If you supply to public sector organisation, you may need to be prepared for closer scrutiny of your prices and performance. Increases in Capital Investment Elsewhere, the review confirms increased capital investment in areas like transport infrastructure and social housing. Over time, this may bring new opportunities for construction and related industries. However, spending will be spread over a long period. Similarly, investment in AI, tech and scientific infrastructure (including a new supercomputer in Edinburgh) could create demand for highly specialised services, but the benefits may take time to filter through. Speeding Up Infrastructure Projects The Chancellor also flagged changes to the way the Treasury evaluates infrastructure projects, promising a more modern approach. This might affect which types of projects get greenlit and how quickly - something worth watching if you’re bidding for public contracts or working in the built environment. Final Thoughts While headlines may focus on big numbers and high-level priorities, the underlying message of this Spending Review is relevant for businesses of all sizes: pressure on budgets, rising expectations of value, and a focus on getting more from what’s already being spent. If you’d like help reviewing your own budgets or planning for the year ahead, we’re here to support you. See:

The UK’s economic growth is set to slow more than expected, according to the Organisation for Economic Co-operation and Development (OECD), which has downgraded its forecast for 2025 to 1.3%, down from 1.4% earlier this year. The global think tank pointed to high government debt interest payments and new trade barriers - particularly from the US - as key reasons for the cut. It also warned that the UK’s public finances leave little room for surprises, urging Chancellor Rachel Reeves to consider a mix of targeted spending cuts and tax reforms to shore up the economy. While the OECD acknowledged that growth in early 2025 had been better than expected, it said business confidence is now weakening and predicted further slowing to 1% growth in 2026. The state of the UK’s finances, it said, poses a real risk if fiscal rules are to be met. Different to the IMF To place their comments in context, the OECD’s growth forecast is still higher than the 1.2% estimated by the International Monetary Fund (IMF) reported on last week. For the IMF, this was an uplift on their previous forecast. What’s next? The timing of the OECD’s warning comes just ahead of Reeves’ upcoming Spending Review, where she’ll be tasked with deciding how to allocate funds between government departments. It’s not just the UK Due to trade tensions having a global effect, the OECD also downgraded growth forecasts for most major economies. It noted that the global economy is slowing and warned that “weakened economic prospects will be felt around the world, with almost no exception.” While national growth forecasts can influence general outlook, they don’t have to define your business’s future. If you're looking for practical ways to keep your business moving forward in uncertain times, get in touch - we're here to help you explore the options and make confident decisions. See:

The government has published details of a new emissions cutting trial that could benefit UK pubs, cafes, restaurants and hotels. The Zero Carbon Services Hospitality Trial will run from May 2025 until March 2026 and has been provided with £350,000 of funding. The trial will put hospitality business owners in direct contact with the expertise of trusted energy and sustainability advisers. Could the trial be worthwhile? It is estimated that the average pub loses £2,000 a year through energy waste. Making some gains in energy efficiency could have a real impact on the business’ bottom line. What will the trial involve? A total of 615 small and medium-sized businesses will be offered support during the trial. Experts will help to show where energy is being wasted and how to fix it. For instance, the scheme will help businesses in making changes such as fixing insulation gaps, upgrading to low energy lighting, and tweaking heating settings. Businesses will receive a tailored Carbon Reduction Plan as well as having a Carbon Coach. Businesses that take part will receive around seven hours of support each month over a 3-month period. Register your interest If you are in the hospitality sector and are interested in receiving this support, you can register your interest and apply on the [Zero Carbon Company’s website](https://www.zerocarboncompany.org/sme-trial). See:

In its latest round of investigations, HM Revenue and Customs (HMRC) have named 518 employers who have failed to pay the National Living or National Minimum Wage correctly to their staff. A total of £7.4 million will be paid by these employers to almost 60,000 workers. In addition, the employers face financial penalties of up to 200% of the amount they underpaid. HMRC accepts that not all minimum wage underpayments are intentional, however it is clear that they will take enforcement action wherever they find employers are not paying staff correctly. The government has provided a [resource for workers](https://checkyourpay.campaign.gov.uk/) to check what they are being paid and are encouraging them to use this. Support is also available from Acas. What does this mean for employers? Where you employ staff, it’s key that you make sure that all your staff are at least paid the National Living or National Minimum Wage rate that applies to them. This is not always straightforward as there can be several factors to consider. It’s advisable to [check the guidance](https://www.gov.uk/guidance/calculating-the-minimum-wage) each time you take on a new employee. Some common errors employers make include: - Making a wage deduction for items or expenses that relate to the job. - Making wage deductions that are for the employer’s own use and benefit. - Failing to pay for additional time added on to an employee’s shift. - Failing to pay for time spent travelling on business. - Failing to pay an employee for time they spend training. - Failing to apply the annual rate increase on 1 April Rates for 2025/26 Beginning 1 April 2025, the National Living and National Minimum Wage rates are as follows:   Rate per hour - National Living Wage (21 and over) - £12.21 - 18 to 20 - £10.00 - Under 18 - £7.55 - Apprentice - £7.55 If you need any help with paying your staff the correct amount or understanding how the Minimum Wage legislation applies, please get in touch at any time. We would be happy to help you! See:

The National Cyber Security Centre (NCSC) has released new guidance on how to properly retire old digital systems and devices – a process known as decommissioning. The guidance is aimed at IT teams, but there are useful takeaways for any small business that uses computers, software or online systems. Why this matters With so many demands on our time, it can be easy to leave old laptops or devices lying around when they’re no longer needed. But old tech can quietly become a security risk. It might still hold sensitive information or give someone a way into your systems without you realising it. The NCSC says that getting rid of old systems safely is just as important as setting them up in the first place. What should you do? Here are some key tips from the guidance: ·    Don’t wait until the end: Plan ahead. If you’re buying new systems or changing software, think about how and when you’ll stop using the old one. ·    Keep track of what you use: Make a basic list of your computers, software and devices. This helps you stay in control, especially if you’ve tried out different tools over the years. ·    Back up your data: Before getting rid of any computer or online service, save a full copy of the important data. This includes documents, emails, passwords, and anything you might need to recover later. ·    Wipe data properly: If you’re planning to sell, donate, or throw away an old device, make sure you clear all data first. A factory reset often isn’t enough. Look up how to securely wipe a device or ask someone to do it for you. ·    Check it’s really gone: If you’ve used someone else to help dispose of a device, ask for proof it was wiped properly. If you’ve done it yourself, keep a note of what you did and when – that may help if you encounter problems in the future. Final thought You don’t need to be a tech expert to take simple steps that protect your business. The NCSC’s guidance is a good reminder that old systems aren’t just clutter – they can be a risk if they’re not dealt with properly. If you’re not sure where to start, make a list of the tech you use now, and think about what’s no longer needed. That’s often the first and most important step. You can find [more detail on the NCSC website](https://www.ncsc.gov.uk/guidance/decommissioning-assets) if you’d like to explore further.