Latest articles

Spotlight on: Making Tax Digital for Income Tax What sole traders and landlords must do before April 2026 Making Tax Digital for income tax (MTD IT) stops being a future problem and becomes a real one from 6 April 2026 for many sole traders and landlords. It will change how you keep records, how often you report to HMRC, and how you plan for tax through the year. The timetable and income thresholds are now confirmed. The Autumn Budget 2025 didn’t delay the start date, but it did soften parts of the penalty regime to make the transition more manageable. This post sets out who must join in April 2026 , what MTD IT actually involves in practice, and the steps worth taking now so you’re not trying to adapt at the last minute. MTD IT in a nutshell MTD IT changes how sole traders and landlords report income to HMRC. Instead of keeping paper records and filing one Self Assessment return a year, you will: keep digital records of income and expenses send quarterly summary updates to HMRC using compatible software make end-of-year adjustments and submit a final declaration through that same software HMRC decides when you must join MTD based on your qualifying income , which is your total gross income from self-employment and property before expenses or tax . Official figures show that in 2023/24 around 7 million people in Self Assessment had self-employment or landlord income. About 2.9 million of those had qualifying income above £20,000 and are expected to join MTD IT between 2026 and 2028. MTD does not mean five full tax returns a year. Quarterly updates are simple summaries pulled from your records. You still finalise your tax position once a year. Who must join — and when MTD IT applies to individuals filing Self Assessment who have qualifying income from self-employment and/or property above the relevant thresholds. The confirmed rules are: From 6 April 2026 You must use MTD-compatible software if your qualifying income exceeded £50,000 in the 2024/25 tax year. From 6 April 2027 The requirement extends to those with qualifying income above £30,000 in the 2025/26 tax year. From 6 April 2028 It is planned to extend to those with qualifying income above £20,000 in the 2026/27 tax year. HMRC will look at your most recent Self Assessment return, total your self-employment turnover and rental income , and use that to decide your start date. Employment income, pensions and savings interest do not count towards these thresholds. Based on 2023/24 data: about 864,000 people are expected to join from April 2026 around 1,077,000 from April 2027 around 975,000 from April 2028 If your qualifying income later drops below £30,000, current guidance suggests you remain within MTD unless HMRC confirms otherwise. It’s best to treat this as a long-term change. What changes for sole traders If you’re a sole trader above the threshold, MTD changes how you work during the year. You will need to: keep digital records of all income and expenses send four quarterly updates per tax year for each sole-trader business make accounting and tax adjustments in an end-of-period statement submit a final declaration by 31 January , as now You will still: register for Self Assessment as normal pay income tax and Class 2/4 NICs under existing rules for 2025/26 manage payments on account and balancing payments If you run more than one sole-trader business , you must keep separate records and send separate quarterly updates for each one. What changes for landlords Landlords above the threshold will also need to move to digital records and quarterly reporting. Key points: digital records are required for rental income and allowable expenses if you’re also a sole trader, rental and trading income are reported separately for jointly owned property, you can report either total figures or just your share in quarterly updates, but all expenses must be included in the year-end position property type doesn’t matter — MTD is driven by income level , not whether a property is furnished or unfurnished Many smaller landlords still use spreadsheets or paper records. Estimates suggest nearly 70% of landlords with one or two properties do this. If you’re in scope from April 2026, now is the time to move onto suitable software. Key dates to be aware of If you’re in the April 2026 group, these are the main milestones: 31 January 2026 – file your 2024/25 Self Assessment as normal 6 April 2026 – MTD IT starts for the 2026/27 tax year 7 August 2026 – first quarterly update due (or calendar-quarter equivalent) 7 November 2026, 7 February 2027, 7 May 2027 – remaining quarterly updates 31 January 2027 – final Self Assessment for 2025/26 filed in the usual way From 2027/28 onwards, the aim is for tax to be finalised directly from software by 31 January using quarterly updates plus year-end adjustments. What the Autumn Budget 2025 changed The Budget confirmed MTD IT will start in April 2026 as planned. No change to thresholds or dates, but some welcome easements: Soft landing on penalties No penalty points for late quarterly updates in the first 12 months (annual returns still count). Extra time before late payment penalties An additional 15 days before late payment penalties apply in year one. Further deferrals and exemptions Some groups remain in standard Self Assessment until at least April 2027, and deputyship cases remain permanently exempt. These changes are designed to ease the transition — not remove the need to be ready. Six practical steps to take now If your qualifying income is above or close to £50,000 , the rest of 2025/26 is your preparation window. 1. Check if you’re in scope Add together: gross self-employment income gross rental income That total decides your MTD start date. 2. Review your records Move away from paper or basic spreadsheets and into MTD-compatible software that suits how you work. 3. Choose your quarterly structure You can use tax-year quarters or calendar quarters — pick what fits your systems best. 4. Clean up existing data Reconcile accounts, tidy categories and remove duplication before you start. 5. Plan for cashflow Quarterly updates give earlier tax estimates — use them to set money aside and avoid surprises. The continued freeze on tax thresholds makes this even more important. 6. Consider early sign-up Joining the pilot early can help you learn the process with fewer consequences, though software options are still evolving. Get MTD-ready MTD IT is no longer theoretical. The rules, dates and thresholds are set, and April 2026 is happening. If you’re a sole trader or landlord with qualifying income above £50,000, now is the time to: confirm whether you’re in scope choose suitable software tidy records plan for quarterly reporting Doing this calmly now will make the transition far less stressful. If you’ve got questions about how MTD applies to you, or you want help getting set up properly, I'm only a call or email away.

National Living Wage and Minimum Wage Set to Rise from April 2026: What Employers and Workers Need to Know The UK government has confirmed the new minimum wage rates that will apply from 1 April 2026 , with significant increases across most age groups. These changes are important for employers to plan for and for workers to understand how their earnings will be affected. Key Rate Changes from 1 April 2026 📈 National Living Wage (NLW) For workers aged 21 and over , the NLW increases by 4.1% to £12.71 per hour . This change is projected to benefit around 2.4 million low-paid workers , boosting the annual income of a full-time worker on the NLW by around £900 . 💷 National Minimum Wage (NMW) 18–20-year-olds: increases by 8.5% to £10.85 per hour , worth around £1,500 more a year for a full-time worker. 16–17-year-olds and apprentices: increase by 6% to £8.00 per hour . The 18–20 rate continues the government’s long-term plan to narrow the gap with the adult rate, working towards a future where a single adult rate applies to all workers aged 18 and over. Why This Matters Now These changes reflect the recommendations of the Low Pay Commission , and the government has accepted them in full. While the headline increase for the NLW is moderate compared to recent years, younger workers see proportionally larger uplifts in their pay rates. For employers, updating payroll systems and employment contracts well in advance is essential to ensure compliance from April. Broader Context: Cost Pressures on Business While worker organisations have welcomed the rise, there is wider economic context that matters to employers. For example: Recent increases in employers’ National Insurance contributions and higher energy costs are already squeezing business budgets. Some employers, particularly in tight-margin sectors like retail, are reporting challenges balancing pay costs with operational sustainability. These factors mean that wage increases, though positive for workers, require careful planning by business leaders. Looking Ahead With these rates locked in from 1 April 2026 , now is a good time for employers to review their staffing budgets and for employees to understand how their take-home earnings will change. Whether you’re managing payroll, thinking about recruitment, or planning for business growth, these statutory wage changes should be on your radar. 👉 Talk to us about your staff costs and how to plan for these and other upcoming business impacts.

What you need to know about compliance Preparing for an audit is rarely anyone’s favourite task, but it is part of running a resilient and well-managed business. With HM Revenue & Customs under continued pressure to close the tax gap, audits and compliance checks are not going away. In 2024/25 alone, HMRC completed around 316,000 compliance checks and continues to invest heavily in new staff and data-led technology. Against this backdrop, business owners should expect ongoing scrutiny — not because they’ve done anything wrong, but because HMRC’s approach is increasingly proactive and risk-based. This guide explains what a “business audit” means in practice, how the current compliance environment affects you, and what you can do to ensure any audit or review runs as smoothly as possible. Why audits and compliance matter in 2025/26 Recent government data shows that small businesses now account for the largest share of the tax gap by customer group — around 60% in 2023/24. Common causes include simple errors, poor record keeping and failure to take reasonable care. HMRC’s response has been twofold: Preventative measures , such as nudges, education and early interventions Traditional inquiries , backed by better data matching and analytics Preventative compliance now accounts for around 41% of HMRC’s compliance yield, up from 29% in 2020/21. Overall compliance yield reached an estimated £48bn in 2024/25, with every £1 spent on compliance generating around £23 for the Exchequer. For business owners, this reinforces the value of strong internal controls, good governance and up-to-date accounting and tax records. What we mean by a “business audit” Clients often use the word “audit” to describe any in-depth review of their figures, but there are several distinct processes. Statutory financial audit A regulated review of annual accounts under the Companies Act . Auditors assess whether the accounts give a true and fair view and comply with UK GAAP or IFRS. HMRC compliance check or tax inquiry A review of one or more taxes — such as corporation tax, VAT, PAYE or R&D relief. HMRC may request explanations, records and supporting documents and can amend returns if errors are identified. Other audits and reviews Lenders, investors, regulators or group parents may request reviews ranging from agreed-upon procedures to a full internal audit. This article focuses on statutory audits and HMRC compliance checks, as these affect most companies. Who needs a statutory audit? For financial years beginning on or after 6 April 2025, a private limited company may qualify for audit exemption if it meets at least two of the following:  Turnover of no more than £15m Assets of no more than £7.5m 50 or fewer employees Even where these thresholds are met, an audit is still required if the company is, for example, a public company, part of a non-qualifying group, carries out regulated activities, or has shares traded on a regulated market. An audit may also be requested by shareholders holding at least 10% of shares, or required by lenders or potential buyers as part of due diligence. HMRC compliance checks and tax inquiries HMRC compliance checks are now a routine feature of the tax system. In 2024/25, HMRC completed around 316,000 checks across all customer groups. Key points include: The overall tax gap for 2023/24 was £46.8bn (5.3%) Corporation tax now accounts for around 40% of the tax gap by tax type HMRC reviewed nearly 16% of R&D tax relief claims in 2023/24 HMRC uses data analytics and third-party information to identify inconsistencies, such as: Dividends that appear high compared to profits VAT returns that don’t align with accounts or sector norms PAYE or CIS data suggesting employment status risks Large or unusual relief claims A compliance check does not automatically imply wrongdoing, but it does require careful handling. Getting audit-ready: practical steps Whether you’re facing a statutory audit or a potential HMRC inquiry, preparation makes a real difference. Key habits include: Keeping complete and timely digital records Reconciling bank, VAT, PAYE and control accounts regularly Documenting key judgments and estimates Reviewing director remuneration and dividends carefully Maintaining clear tax working papers and computations These steps reduce disruption, speed up reviews and minimise the risk of misunderstandings. What to expect during an audit or HMRC check A statutory audit usually follows a clear process: planning, information requests, testing, discussion of findings and final reporting. An HMRC compliance check typically starts with a letter outlining the scope, information required and response deadlines. HMRC may review specific aspects or carry out a full inquiry. Responding promptly, providing clear evidence and keeping detailed records of correspondence all help keep the process under control. The 2025/26 tax year brings relatively stable rules but rising scrutiny. While audit exemption thresholds have increased, HMRC’s focus on the tax gap means more attention on small and mid-sized businesses. You can’t eliminate the chance of an audit or inquiry, but you can control how prepared you are. Consistent records, clear documentation and regular reviews put you in a strong position if questions arise. Preparing for an audit? We can help.

Some businesses across the UK have recently begun receiving letters from HM Revenue & Customs warning that overdue tax debts may now be recovered directly from their bank or building society accounts. These letters mark the first renewed use of HMRC’s Direct Recovery of Debts (DRD) powers. The process was paused during the COVID-19 pandemic but was reinstated earlier in 2025 and is currently operating in what HMRC describes as a “test and learn” phase. For now, it applies to a limited number of businesses, but it signals a clear shift in HMRC’s approach to debt collection. Under DRD, HMRC can recover tax debts of £1,000 or more directly from eligible accounts, provided several strict conditions are met. The debt must be firmly established, all appeal windows must have closed, and HMRC must have made repeated attempts to contact the business without success. Importantly, DRD is not intended to come without warning. Before any funds are taken, HMRC will carry out a face-to-face visit to confirm identity, explain the debt, and discuss alternatives, including the option of a Time to Pay arrangement. For businesses that receive one of these letters or suspect they may be at risk, early action is key. Engaging with HMRC promptly and agreeing on a realistic payment plan can often prevent matters escalating to direct recovery. If you’re concerned about outstanding tax liabilities, cash flow pressure, or communication from HMRC, now is the time to address it. Talk to us about your business.

HMRC is accelerating its move away from paper letters and towards digital communication. From spring 2026 , most routine correspondence will stop arriving by post and will instead be delivered online, with email or app alerts prompting you to log in and view new documents. This change forms part of HMRC’s wider “digital by default” strategy, which aims for around 90% of interactions to be online by the 2029/30 tax year . HMRC estimates the move will save around £50 million a year in printing and postage costs. What’s changing Instead of receiving a letter through the post, taxpayers will receive: an email or app notification , and a prompt to log in to their Personal Tax Account or the HMRC app to view new correspondence. The alert itself won’t include tax details — it simply lets you know that something new is waiting in your account. Anyone already using the HMRC app or an online tax account will be among the first to move across. When logging in, users will be asked to confirm or provide an email address or mobile number, which HMRC will use only for notification purposes. Who will still get paper letters HMRC has confirmed that paper correspondence won’t disappear entirely . You’ll continue to receive letters by post if: you are digitally excluded , you don’t use HMRC’s online services, or you actively opt out of digital correspondence. Safeguards will remain in place for elderly taxpayers and those with disabilities who rely on traditional communication. Paper versions will still be available and must meet the same clarity standards as digital messages. Legal backing and rollout The Finance Bill 2025/26 will give HMRC the power to require digital contact details from people who use its online services. The rollout will start in spring 2026 and expand gradually as HMRC updates its systems. HMRC’s stated aim is to free up staff time so more support is available for those who need it most, while improving the speed and reliability of communications. What this means in practice For many people, this change should mean: quicker access to HMRC letters, fewer delays caused by post, and a lower risk of important documents going missing. The flip side is that it becomes more important to: keep your email address and mobile number up to date , check your online tax account regularly, and make sure notifications don’t get lost in a busy inbox. Missed messages can still lead to missed deadlines — even if no paper letter arrives. A sensible next step If you’re already using HMRC’s online services, it’s worth logging in now to check your contact details and make sure you’re comfortable accessing correspondence digitally. If you’re not, it’s a good time to decide whether digital access works for you or whether opting out makes more sense. If you’re unsure how this affects you, or you want help staying on top of HMRC correspondence alongside your wider finances, talk to us . Clear communication and fewer surprises make everything easier.

Steps to smooth business transitions One of the biggest responsibilities of running a business is thinking about what happens when you’re no longer at the helm. Succession planning isn’t just for “later” or for very large companies. Whether you plan to sell, hand the business to family, move to employee ownership, or simply step back one day, having a plan in place protects what you’ve built and gives you options. In my experience, the businesses that struggle most with succession are not the ones with the worst numbers — they’re the ones that left planning too late. This post cuts through the jargon and sets out what succession planning really involves, why it matters, and how to approach it sensibly. What business succession planning actually means Succession planning is about preparing your business to continue without you, whether that’s through retirement, illness, sale, or an unexpected change. It’s not just choosing who takes over. A proper plan looks at: ownership and control leadership and management financial structure tax implications timing and transition Done properly, it gives clarity and stability at a point where uncertainty can otherwise creep in. Why succession planning matters A surprising number of owners still don’t have a plan. According to the Federation of Small Businesses, around 40% of UK business owners have no succession plan at all. That matters because failing to plan can lead to: loss of business value unnecessary tax bills disruption for staff and clients family or shareholder disputes businesses simply closing when an owner steps away A clear plan helps protect value, minimise tax exposure, and ensure continuity — even if plans change later. It also gives you peace of mind. Life doesn’t always wait for the “right moment”. Common succession routes (and what to watch for) There’s no single “best” option — it depends on your goals, your business, and your people. Passing the business to family This can preserve a legacy, but it only works if the next generation genuinely wants — and is ready — to take over. Skills, motivation and timing matter more than bloodline. Selling to a third party Often the route that maximises value, but it requires preparation. Clean accounts, consistent profitability and clear growth potential make a big difference to buyer interest and price. Management buyout (MBO) Selling to existing managers can provide continuity and stability. The challenge is usually funding, so early planning is key. Employee Ownership Trusts (EOTs) EOTs are increasingly popular. They can preserve company culture and offer tax advantages, including potential capital gains tax relief — but they require careful structuring and long-term planning. The key steps to getting succession right 1. Be clear on your end goal Do you want to exit fully, step back gradually, or remain involved? Your objective shapes everything else. 2. Understand what your business is worth A realistic valuation matters — especially if selling. Don’t overlook intangible value such as brand strength, client relationships and IP. 3. Identify and prepare successors Whether internal or external, successors need time. Training, mentoring and gradual responsibility shifts make transitions smoother. 4. Plan the handover A transition plan should cover leadership transfer, operational responsibilities and financial arrangements — not just a change of ownership on paper. 5. Address tax and legal issues early This is where timing really matters. For example, Business Asset Disposal Relief is changing — the CGT rate is set to rise from 10% to 14% in April 2025 and 18% in April 2026. Leaving planning too late can be expensive. 6. Communicate clearly Staff, family members and advisers should understand what’s happening and when. Silence often causes more disruption than the change itself. 7. Review regularly Succession plans aren’t static. They should evolve as your business, personal goals and tax rules change. Why starting early pays off Early planning gives you options.  It allows time to: prepare successors properly attract stronger buyers spread ownership or tax exposure avoid rushed decisions under pressure Leaving it late often means fewer choices and higher costs. The real cost of delaying Without a plan, businesses are vulnerable. Owners step away unexpectedly, value drops, disputes arise, and staff and clients are left uncertain. I’ve seen good businesses struggle not because they weren’t profitable, but because no one had thought about what came next. How I can help Succession planning doesn’t have to be overwhelming. It just needs structure and honest conversations. I help business owners think through: timing and exit options financial readiness tax implications practical next steps Whether you’re years away from an exit or just starting to think about it, an early discussion can make a significant difference. If you’d like to talk through your options, get in touch. Planning ahead is one of the most valuable things you can do for your business.

As we head into self-assessment season, HMRC has issued a fresh warning about a sharp rise in tax-related scams. Over the past year, almost 145,000 scam attempts were reported to HMRC — a 17% increase on the previous year. And those are just the ones that were flagged. The real number is likely to be much higher. How these scams usually work Most scams follow a familiar pattern. Fraudsters pose as HMRC and contact people claiming: they are owed a tax refund they have unpaid tax that needs urgent action legal action, penalties or arrest are imminent Around half of all reported scams involved fake tax rebate claims , which shows just how effective that hook still is. Messages often arrive by text, email or phone , and are designed to look convincing — using HMRC branding, official-sounding language and links to fake websites. What HMRC will never do It’s worth being absolutely clear on this, because it helps cut through the panic scammers rely on. HMRC has confirmed that it will never : text, email or call you to offer a tax refund ask for personal or financial details by phone or message leave threatening voicemails about arrest or court action ask you to click a link to claim money or make an urgent payment If you receive a message like this, it is not HMRC. How tax refunds really work Genuine tax refunds can only be claimed securely through: your official HMRC online account , or the free HMRC app There are no shortcuts, surprise messages or “one-click” refunds. What to do if you receive a suspicious message If something doesn’t feel right, trust that instinct. HMRC’s advice is simple: Do not reply Do not click links Do not download attachments Do not share any information Instead, report it using the official channels: Forward suspicious emails to phishing@hmrc.gov.uk Forward scam text messages to 60599 Report fraudulent phone calls via the HMRC website on GOV.UK Reporting helps HMRC shut scams down more quickly and protects others too. A quick word of caution during self-assessment season Scammers know that January deadlines create pressure and distraction. That’s exactly when people are more likely to click first and think later. If you’re unsure whether something is genuine — especially where tax refunds or demands are concerned — pause and check before taking any action.  And if you want a second pair of eyes on something that claims to be from HMRC, I’m always happy to help sanity-check it. Talk to us about your taxes.

Wealth transfer strategies for high-net-worth families: practical steps to pass on wealth tax-efficiently Intergenerational wealth planning works best when tax, investment, family governance and timing are aligned. Get those elements pulling in the same direction and you gain clarity, flexibility and far fewer surprises later on. This guide sets out practical options using current UK rules and allowances. It covers how lifetime gifting fits alongside trusts, pensions and family companies, where business and agricultural reliefs can help, and why pensions still play a central role even after recent changes. For internationally mobile families, it also highlights the shift towards residence-based inheritance tax exposure, so decisions on timing and location are taken with eyes open. Start with goals, not tax Before optimising tax, be clear about what you’re trying to achieve over the next 10–20 years: Who should benefit, when, and with what safeguards? How much income and security does the donor need now and later? Which assets are suitable for lifetime gifts, and which are better retained? What level of complexity, cost and investment risk feels acceptable? Agreeing these principles early—ideally with the family members involved—reduces friction later and guides decisions between gifts, trusts, pensions, companies and philanthropy. Lifetime gifting: use exemptions first Lifetime gifts reduce the taxable estate and move future growth to the next generation. Simple, repeatable exemptions Annual exemption: £3,000 per tax year (with one year’s carry-forward). Small gifts: up to £250 per recipient. Wedding gifts: up to £5,000 to a child, £2,500 to a grandchild. Normal expenditure out of income: unlimited, provided gifts are regular, made from surplus income and don’t reduce your standard of living. Good records are essential. Potentially exempt transfers (PETs) Large gifts to individuals fall outside inheritance tax if the donor survives seven years. Taper relief applies after year three. PETs remain a cornerstone where control through trusts isn’t required. Practical points Prioritise assets with strong growth prospects. Consider capital gains tax before gifting; use annual CGT exemptions and spouse transfers where appropriate. Keep a simple gift log to speed probate and reduce queries from HM Revenue & Customs. Trusts: control and protection Trusts can separate control from benefit, protect vulnerable beneficiaries and support long-term governance. They do, however, come with entry, ten-yearly and exit charges above the available nil-rate band, and the £325,000 band is shared across related settlements. Trusts work best when: their purpose is clear (education, housing support, protection), and their size reflects expected tax charges. Residence nil-rate band (RNRB) If your estate is near £2m, the RNRB tapers away. In some cases, lifetime gifts that bring the estate below this level can restore some or all of the £175,000 allowance on death. Business and agricultural reliefs Qualifying business property and certain unquoted or AIM shares can attract 100% or 50% inheritance tax relief after a two-year holding period. Relief is generous but not automatic—trading status, ownership periods and excepted assets all matter. From April 2026, a combined £1m allowance applies for the 100% rate of business and agricultural property relief per individual, with unused allowance transferable to a spouse or civil partner. Amounts above this threshold receive relief at 50%. Family investment companies (FICs) FICs can help families retain control while passing value through growth shares. They work best where: capital is being retained rather than heavily distributed, share classes are clearly designed, and ongoing company compliance is accepted. FICs don’t carry specific inheritance tax reliefs, but they can sit alongside trusts to balance control and protection. Proper tax, legal and corporate advice is essential. Pensions: still central Pensions remain one of the most effective long-term planning tools. Contributions up to £60,000 a year (subject to tapering and MPAA rules). New allowances now cap tax-free lump sums rather than total pension size. From April 2027, most unused pension funds will fall within the estate for inheritance tax, making nomination reviews and estate liquidity planning critical. High earners should test affordability well ahead of retirement and coordinate pension strategy with ISAs, general investments and gifting plans. Charitable giving Philanthropy can reduce tax while reinforcing family values. Gift Aid and inheritance tax relief now focus on UK charities. Gifts of shares, land or property can attract income tax relief and no CGT. Donor-advised funds offer flexibility without the complexity of running a charity. Leaving at least 10% of the net estate to charity can reduce the inheritance tax rate to 36%. Property, portfolios and CGT Review how much housing wealth sits inside the taxable estate. Watch the £2m RNRB taper and upcoming high-value council tax surcharge. Use CGT exemptions, spouse transfers and bed-and-ISA strategies to improve flexibility. Revisit withdrawal order annually; for some families, preserving pensions while using other assets for gifting produces better outcomes. Cross-border families The move to residence-based inheritance tax and the new foreign income and gains regime mean timing matters more than ever. Inbound, outbound and internationally mobile families should map residence, tax exposure and trust structures well in advance. Keep documents and governance current Tax efficiency fails if paperwork lags behind intent. Review wills, letters of wishes, powers of attorney and executor readiness regularly. An annual check avoids costly oversights. A practical 90-day checklist Update net worth and cashflow projections. Confirm pension and insurance nominations. Use available inheritance tax exemptions. Model the RNRB taper if near £2m. Review business relief eligibility and the new £1m allowance. Align pension funding with the new allowance framework. Review cross-border exposure and older structures. Bringing it together Effective wealth transfer is rarely about one clever tactic. It’s about setting a destination, using annual allowances consistently, and applying structures only where they add real value. Plans should evolve as rules, markets and family circumstances change. If you’d like help prioritising actions for 2026, we can model options, test sensitivities and map out what to do now, what to defer and what to keep under review. If you want practical, tailored guidance, get in touch.

UK growth set to stall again in 2026: what this means for your business The latest forecasts suggest the UK economy is heading for another subdued year in 2026, with growth expected to slip below 1%. The downgrade landed just weeks before the Chancellor’s Budget and reflects a wider reassessment of where the economy can realistically grow from here. The Office for Budget Responsibility is expected to lower its estimate of the UK’s potential growth after revisiting productivity assumptions. A reduction of around 0.3 percentage points in annual productivity gains may not sound dramatic, but over the life of the current parliament, it could translate into roughly £21bn less in projected tax revenues. That matters because it shapes future fiscal decisions and the pressure on public finances. This year’s headline growth figures were helped by a strong rebound in business investment, which rose by 3.7%. The problem is that this looks unlikely to continue. Investment growth is forecast to slow sharply to around 0.8% in 2026, removing one of the main supports for output. The labour market is also cooling. Unemployment is expected to peak at around 5% next summer, and as conditions soften, pay growth is forecast to ease back from recent highs to around 3.5% by the end of 2025 and closer to 3% by mid-2026. That may reduce some cost pressure, but it also points to a more cautious hiring environment. Business confidence reflects this mood. The Institute of Directors reports that optimism among business leaders has fallen to record lows. Many small and medium-sized firms say costs have risen faster than revenues over the past year. While some of those pressures are beginning to ease, they are still weighing on decisions around hiring, investment and growth. There are some more optimistic forecasts starting to emerge, but the sensible planning assumption for now is that 2026 will remain challenging. Growth is likely to be modest, investment tight, and the labour market softer than we’ve been used to. What can businesses do? Periods like this aren’t about dramatic moves; they’re about control and clarity. That means: keeping a close eye on cashflow and forecasts understanding where margins are really being made (and lost) being deliberate about investment decisions stress-testing plans so there are fewer surprises You can’t control the wider economy, but you can control how well you understand your numbers and how early you act when conditions change. If you’d like to talk through what this outlook means for your business, and how to plan sensibly for the year ahead, get in touch . A steady plan beats guesswork every time.

Managing business debt: practical steps to stay in control Borrowing is a normal part of running and growing a business. It bridges seasonal dips, supports investment and helps you navigate large orders. Problems only start when visibility slips, costs increase or deadlines are missed. The aim is simple: know your obligations, keep headroom and act early . This guide distils the key practices that keep debt manageable and cashflow steady. 1. Build a clear picture of your position A 12-week rolling cashflow—updated weekly—is the most useful tool you can have. Map inflows and outflows, then add simple stresses such as sales falling 10% or receipts arriving 30 days late. If this highlights a crunch point, deal with it before it hits. Keep the discipline tight: Review aged receivables and payables weekly; tackle the biggest and oldest items first. Recalculate loan covenants, headroom and any downside breach dates. Keep a calendar of VAT, PAYE, corporation tax, rent, utilities and scheduled repayments, with reminders 10 working days before due dates. Assign ownership for chasing and negotiating. A short weekly review turns debt control into habit. 2. Anchor decisions to today’s costs and rules Know the current rates shaping your obligations: Bank Rate (autumn 2025): 4.0% HMRC late payment interest: Bank Rate + 4% (from April 2025) Statutory interest on late B2B invoices: 8% above Bank Rate HMRC arrears are now often more expensive than bank borrowing. Keep filings up to date and deal with tax debts quickly. 3. Prioritise payments with clear logic There’s no single correct order for every business, but a sensible sequence often looks like: HMRC – interest accrues daily and enforcement escalates quickly. Secured lending – missed payments risk breaching covenants. Energy and critical suppliers – protect operational continuity. Other trade creditors and landlords – be transparent and consistent. Director/shareholder loans – avoid repayments that strain cash. Review this order monthly and record your reasoning. 4. Reduce late customer payments Late payment remains one of the biggest sources of cash pressure. Tighten your internal discipline: Keep standard terms to 14–30 days. Issue accurate invoices promptly, with correct POs and accepted formats. Follow a simple chase rhythm: due date, +7 days, +14 days. Apply statutory interest where appropriate. Set credit limits for new or higher-risk accounts. Offer early-payment options or selective invoice finance where margins allow. A calm, consistent approach usually delivers faster cash. 5. Strengthen cash in the short term When pressure builds, work both sides of the cash equation. Bring cash forward Focus on your top ten overdue balances over 60 days; call, agree a plan and diarise follow-ups. Consider invoice finance or factoring, checking fees, recourse rules and any debenture requirement. Defer outflows sensibly Negotiate staged payments with key suppliers. Switch annual costs like insurance to monthly if the uplift is reasonable. Reduce stock to current demand and clear slow-moving lines. Cut non-essential subscriptions and standing orders. 6. Choose the right funding tool Match borrowing to purpose: Overdrafts and revolving lines for seasonal swings. Term loans for defined investments. Asset-based lending for receivables, stock or plant. Government-backed options such as the Growth Guarantee Scheme (scheduled to run to April 2030). 7. Speak to lenders and HMRC early Silence undermines confidence. If your forecast shows a risk of missed payments or covenant breaches, speak up early. Lenders expect: Year-to-date performance summary 12-month cash forecast with base and downside cases Covenant look-ahead and mitigations A clear request with a realistic review date With HMRC, call before any deadline passes. Have the numbers ready and propose a schedule you can keep. 8. Know when to seek formal restructuring advice If debts cannot be met as they fall due, regulated advice protects both the business and its directors. Options include moratoriums , CVAs , restructuring plans and administration . Minutes, forecasts and timely decisions are essential. 9. Build the habits that make borrowing safer The strongest businesses combine good forecasting with tight working-capital control: Regular pricing reviews Clear terms of trade Diversified suppliers Tighter stock management Trade credit insurance for concentrated risk Monthly cash and debt reviews with variances tracked Frequent small adjustments usually beat large, infrequent ones. If cash is tight, act today Update your 12-week forecast, prioritise payments, speak to HMRC and lenders early, accelerate collections and freeze non-essential spend. Early action preserves options. If you want support building control and headroom, get in touch.

The UK is facing a growing challenge that doesn’t make as many headlines as inflation or interest rates — but it has a huge impact on businesses: the rise in long-term sickness and economic inactivity. A new government-commissioned review, led by Charlie Mayfield (former John Lewis chair and head of the Keep Britain Working review), highlights just how serious the issue has become — and why employers are being asked to step up. A rising tide of worklessness Right now, one in five working-age adults — over nine million people — are economically inactive , meaning they’re not in work and not currently seeking work. For almost three million , long-term sickness is the primary reason. That’s the highest figure ever recorded. The fastest-growing group? Young adults — an early warning sign for the future health of the workforce. The review estimates the total economic cost of this “quiet but urgent crisis” at up to £85 billion a year , driven by: Lost business output Higher welfare spending Extra strain on the NHS It’s a problem affecting employers of every size, across every sector. Why occupational health needs a reboot Mayfield’s recommendation is clear: the UK needs a step change in how businesses support employee health. He suggests employers collectively invest £6 billion a year in better workplace health measures — everything from early intervention to proper occupational health services. The goal isn’t simply to help people return to work; it’s to stop people falling out of the workforce in the first place . If these approaches were rolled out at scale, the review estimates annual benefits of up to £18 billion for the wider economy and public finances.  A new employer-led programme To begin testing these ideas in the real world, more than 60 employers — including British Airways, Nando’s and Tesco — will take part in a three-year vanguard programme . They’ll be working with regional mayors and small businesses to pilot and scale new models of workplace health support. The hope is that successful approaches can be rolled out nationally. What this means for businesses For employers, this isn’t just a policy conversation — it’s a real operational challenge: Long-term sickness is increasing Recruitment pipelines are tightening Productivity is under pressure Supporting staff wellbeing isn’t a “nice to have” anymore — it’s essential The message from the review is that businesses will need to take a more active role in early support, prevention and retention. The upside? Companies that invest in workplace health not only help the national picture — they also see reduced absenteeism, better morale and stronger long-term performance. If you’d like to talk about how these changes could affect your business, or how to plan ahead for workforce pressures, get in touch .

Introducing: The Pat van Aalst Story A three-part festive series about resilience, reinvention and doing things differently. As we head into the festive season, I wanted to share something a little more personal than my usual finance insights. I’ll be telling my story — how I went from a childhood spent moving between Army bases, to discovering accounting almost by accident, to rebuilding my life after a serious accident, and eventually launching the practice I run today. It’s a tale of false starts, stubborn perseverance, heavy metal, motorbikes, and finding a way to do the work I love without the jargon or the corporate nonsense. This three-part series covers: Part 1 — From Boarding School to Finance Manager Part 2 — Accident, Resilience and Reinvention Part 3 — Metal, Motorbikes and the Road Ahead If you’re new here, I hope it gives you a sense of who I am beyond the spreadsheets. And if you’ve worked with me for a while, you might learn a few things I’ve never shared before. Thanks for reading — and I hope you enjoy the story. PART ONE From Boarding School to Finance Manager My story begins with constant relocation. I was born in the Dutch town of Alphen a/d Rijn in 1976 to a Royal Signals family, and I spent my childhood shuttling between British Army postings in Germany. To give me stability, my parents enrolled me at the Royal Alexandra and Albert School in Surrey, where I boarded from age eight until I turned 18. The experience gave me a sense of independence and continuity during a turbulent upbringing. Academically, I’ve always been honest about my “average” GCSE grades, and an early attempt at a Business and Finance BTEC ended prematurely. In my twenties I took on factory jobs simply to pay the bills, moving from rural Spalding to Bicester in search of opportunity. A self-described early midlife crisis pushed me to enrol in a basic bookkeeping course, where I discovered a passion for transforming raw financial data into meaningful accounts. I subsequently qualified with the Association of Accounting Technicians and began studying for the Association of Chartered Certified Accountants. My career soon gathered pace. I joined an international scientific services company as a purchase ledger assistant and was promoted to finance manager, supporting UK and European subsidiaries. There, I led initiatives such as migrating payroll to ADP, implementing BACS payments and reducing month-end close from ten working days to three, showcasing my knack for process improvement. Concerned that staying with one employer would limit my future options, I moved to the charity sector. At a large learning-disability charity, I managed assistant finance managers, prepared budgets for multiple operating divisions and automated repetitive journals. A client testimonial later described my “solution-focused analytical approach” as invaluable. These experiences laid the groundwork for the next chapter of my life – a chapter defined by resilience and reinvention. What neither my family nor I could have predicted was the accident that would change everything. In Part 2, you’ll see how I rebuilt my life and career from the ground up... PART 2 Accident, Resilience and Reinvention In May 2016, my life took an abrupt turn when a motorcycle accident near Cambridge left me with broken legs. The injuries required seven operations and years of physiotherapy; each time I thought I was improving, complications would force me back to crutches or a wheelchair. I look back on this period with a kind of stoic humour – “assume the worst and have good insurance” – and I credit my partner for getting me through the darkest moments. While I was still recovering, I was made redundant from my charity role, which pushed me to reconsider my career path. To generate income while I healed, my partner and I expanded a small family laundry business that we eventually sold (the sale itself was far from smooth and taught me important lessons about due diligence). During this time, I also began taking on bookkeeping assignments from home, which eventually blossomed into Pat van Aalst – Accounting Consultant . My practice’s motto, “numbers uncomplicated, suits unnecessary,” reflects my desire to demystify accounting and ditch the stuffy image often associated with the profession. The firm offers a refreshingly straightforward approach, helping clients achieve their business goals without the jargon. I don’t just file year-end accounts; I become part of my clients’ businesses. As a licensed AAT Fellow and a QuickBooks and Xero advisor, I provide management accounts, forecasting and consultancy as part of a Virtual Finance Manager service. This remote offering acts as a sounding board and coach for entrepreneurs, helping them obtain funding, manage risk and stay in control of their numbers. I’m particularly fond of cloud accounting because it gives clients real-time access to their reports. During my convalescence, I balanced recovery with running the practice. I worked from home while disabled, prepared budgets and monthly accounts, and handled payroll and credit control for the laundry business. The AAT’s “Day in the Life” profile depicts me as a night owl who starts work around 10 am, processes bank transactions, takes an afternoon break to walk my dog as part of my physio, and resumes work in the evening. I value the autonomy of self-employment, though I admit the worst part of the job is fighting procrastination. Recovery and reinvention were only part of the story. In the final chapter, you’ll discover how heavy metal and motorbikes feed my passion—and hear directly from clients who’ve benefited from my refreshingly down-to-earth approach. PART 3 Metal, Motorbikes and the Road Ahead Away from the spreadsheets, I’m anything but a stereotypical accountant. My musical taste ranges from rock classics, such as Bon Jovi and U2, to Thrash and industrial metal like Metallica, Megadeth, Machine Head and Rammstein. In recent years, I’ve embraced symphonic bands like Nightwish and Within Temptation. Motorbikes are my escape: I ride with music streaming through my helmet, and after my accident, I switched to a trike so I could keep riding while on crutches. I’m deeply embedded in the biking community and served as the National Finance Officer for the Motorcycle Action Group (MAG), which taught me the power and politics of advocacy. Weekends often involve bike rallies, tents, real ale and live music; I also enjoy gaming and share my life with three dogs. Looking ahead, my ambitions are deliberately modest. I envision a sustainable practice that supports my partner and me without growing into a large firm. I hope to maintain a lean operation that affords regular time off to enjoy life and riding, and I acknowledge that I still spend too much time working in the business rather than on it. Retirement may be distant, but I’m honest about the balancing act of achieving comfort and freedom. A message to clients When you read my story, I want you to feel three things: reassured by my resilience, excited by my unconventional style, and confident in my technical expertise. I’ve come through major setbacks and still ride with a smile, and I bring the energy of a metal concert into the world of finance. I offer clear, jargon-free guidance and a hands-on approach that turns numbers into useful insights. As I say on my website, I provide “clear finances, down-to-earth results” and encourage entrepreneurs to “free up your time and enjoy your life” while I handle the numbers. What clients say The value I provide isn’t measured in meteoric growth but in helping clients get control of their finances. Michael Baines of Affinity Trust describes me as “a knowledgeable, dedicated individual… with a solution-focused analytical approach”, while Mila Read of Found Legal calls me “friendly and responsive” and appreciates how I keep everything running in the background, freeing her up to focus on her own business. Whether you’re a small company needing regular management accounts, or a larger organisation tidying up its books, my blend of resilience, expertise and rock-and-roll personality offers a refreshing alternative to the stereotype of the stuffy accountant.

HMRC Steps Up Reviews of Directors’ Loan Account Tax Relief What companies and directors need to check — and what to do next. HMRC has begun a new round of contact with accountants regarding directors’ loan accounts , specifically where companies have claimed tax relief on the basis that a loan to a director or shareholder (a “participator”) would be repaid within the permitted timeframe. If HMRC believes a company reduced or reclaimed the temporary tax charge incorrectly, they are now asking agents to take another look — and help clients correct any issues. Here’s what’s going on, why it matters, and how to make sure your company is on safe ground. What HMRC is reviewing The focus is on situations where: A directors’ loan balance existed at the company’s year end, The company claimed relief on the basis that the loan would be repaid shortly after, But the repayment did not actually happen within the statutory window. In these cases, HMRC expects the company to pay (or re-pay) the temporary tax charge under s455 CTA 2010 , which applies to loans made to participators of close companies. HMRC’s letters follow earlier compliance activity — including “one-to-many” letters and reminders in recent Agent Updates — signalling that this area is firmly on their radar. What companies should check If your company has had directors’ loan balances in the past few years, it’s worth reviewing the position carefully. HMRC is encouraging advisers to confirm: Were repayments actually made? Not just planned — but completed. Were repayments made within the required timeframe? HMRC will look at the exact dates. Do the company tax return disclosures match what ultimately happened? Relief claimed on “expected” repayments must align with the final outcome. Is there a clear paper trail? Records should show repayments, write-offs, novations, or any changes to the loan. Where the facts don’t match what was claimed, voluntary corrections can help minimise interest and potential penalties. Why this matters HMRC has been tightening compliance around directors’ loans for several years because: It’s a common area for mistakes, Repayments are sometimes planned but not followed through, And temporary s455 relief is sometimes claimed prematurely. If your company currently has an outstanding directors’ loan balance — or previously claimed relief on the assumption that it would be repaid — now is the time to double-check your filings. What to do if you’re unsure If you think your company may be affected: Review the loan account and repayment history Check the year-end tax returns and relief claimed Confirm repayment dates against the statutory window Speak to your accountant early if anything looks unclear A proactive review is almost always cheaper and easier than waiting for HMRC to raise a formal enquiry. Talk to us about your taxes If you’d like help reviewing your directors’ loan account or understanding what HMRC’s latest letters mean for you, get in touch. We’ll guide you through the steps, check your exposure, and help resolve any issues before they escalate.

Autumn Budget 2025: What You Actually Need to Know The Chancellor has delivered the Autumn Budget — and as expected, it’s a mix of tax rises, frozen thresholds and targeted support . There’s a lot of noise around any Budget, but here’s the bit that matters: The Government needs to raise money , and this year’s strategy is to do it quietly — mostly through freezes, tweaks, and changes that won’t hit the headlines, but will hit your pocket. Below is my straightforward breakdown of what’s changed, why it matters, and how it could affect you or your business. The Big Picture: What’s Going On? The UK’s finances are under serious pressure. Public borrowing is high, inflation’s still sticky, and growth is slower than expected. The Office for Budget Responsibility (OBR) is now expecting average growth of 1.5% from 2026–2029 , lower than earlier forecasts, thanks to weaker productivity and global uncertainty. Inflation is expected to settle back to 2% by 2027 , but in the meantime, households and businesses still feel stretched. To shore things up, the Chancellor has turned to the same toolbox we’ve seen for a few years now: Freeze tax thresholds (so people drift into higher tax bands) Tweak investment and business rules Increase taxes on assets and wealth Offer targeted support where pressure is highest Debt is still expected to rise to 96% of GDP by 2030 , but the official forecast shows a slow recovery ahead — if everything goes to plan. Key Business Changes Business Rates From April 2026: Retail, hospitality and leisure properties get 5p lower business rates multipliers Higher-value commercial properties (over £500,000 RV) see their multiplier increase This is good news for the sectors that have been struggling most since the pandemic. Employer National Insurance The employer NI threshold stays frozen at £5,000 until 2031 . That means: Employers continue paying 15% NI on earnings above this low threshold Employment Allowance helps small businesses soften the blow Larger employers continue facing higher payroll costs Corporation Tax & Capital Allowances Main corporation tax rate stays at 25% Full expensing continues for brand-new qualifying plant and machinery BUT: A new 40% first-year allowance arrives from Jan 2026 Main writing-down allowance falls from 18% → 14% in April 2026 This makes long-term investment slightly more expensive unless the spend qualifies for full expensing. Support for SMEs Small Business Rates Relief (SBRR) grace period extended by two years when a business adds a second property EMI share option scheme expands from April 2026 (up to 500 employees and £120m assets ) Venture Capital Trust (VCT) & EIS limits rise (but VCT tax relief drops from 30% → 20%) Sector Funding £14.5m for industrial development in Grangemouth Continued investment in clean energy, manufacturing and advanced tech EVs and charge points remain fully tax-deductible until March 2027 EV-only forecourts and chargepoints get 10-year business rates relief Other Notable Business Measures Low-value import duty exemption scrapped by March 2029 Online gambling tax rises sharply (casino duty to 40% in 2026) VAT loophole for some ride-hailing platforms closes Jan 2026 E-invoicing becomes mandatory for VAT-registered B2B sales from April 2029 Mileage-based tax for EVs coming in 2028 (3p per mile for EVs) Key Personal Tax Changes Income Tax Threshold Freeze The personal allowance (£12,570) and higher-rate threshold (£50,270) stay frozen through to the 2030/31 tax year . As wages rise, more people drift into higher bands – classic fiscal drag. By 2029/30: 780,000 more people will pay basic-rate tax 920,000 more will pay higher-rate tax 4,000 more will fall into the additional-rate band This is fiscal drag at work — not a rate rise, but you pay more tax anyway. New Property Income Tax Rates (from April 2027) 22% (basic rate band) 42% (higher rate) 47% (additional rate) This affects landlords directly — now separated from the main income tax rates for the first time. ISA Rule Change (from April 2027) Annual limit stays at £20,000 , but: Max £12,000 in Cash ISA Remaining £8,000 must go into Stocks & Shares ISA Designed to push people toward investment over cash savings. Capital Gains Tax (CGT) Adjustments CGT relief for Employee Ownership Trusts drops from 100% → 50% in Nov 2025 From April 2026, BADR and Investors’ Relief gains taxed at 18% (not previous lower rates) Business owners planning an exit need to pay attention to these dates. Higher taxes on dividends, savings and property income The Government is quietly turning the screw on income from assets. Dividends : from April 2026, the basic-rate dividend tax goes from 8.75% to 10.75% , and the higher-rate from 33.75% to 35.75% . The additional rate stays at 39.35% . The £500 dividend allowance is unchanged, so this only hits dividends above that, and only outside ISAs and pensions. Savings interest : from April 2027, savings income tax rates rise to 22% / 42% / 47% (basic / higher / additional). Personal savings allowances still apply, but more people will drift over them. Property income : as flagged earlier, rental profits will be taxed at 22% / 42% / 47% from April 2027, in their own banded system separate from your salary. If you take a lot of income as dividends, have sizeable savings outside ISAs, or own rental property personally, it’s worth modelling the numbers ahead of these dates. Temporary non-residence – tougher rules for company owners There’s a targeted change for people who leave the UK for a short spell and then return. The temporary non-residence rules (TNR) are designed to stop people stepping outside the UK for a few years just to take large dividends tax-free. From 6 April 2026 : All dividends and other distributions from a UK close company taken while you’re temporarily non-resident can fall back into UK tax if you return within five years – not just those linked to “pre-departure” profits. Where you’ve already paid tax on those dividends overseas, there will be scope to claim credit so you’re not taxed twice (subject to treaty rules). If you own a family or owner-managed company and are thinking of moving abroad for a few years, don’t assume you can extract profits tax-free while away – get advice before you move money out of the company. National Minimum & Living Wage (from April 2026) £12.71/hr for 21+ £10.85/hr for 18–20 £8.00/hr for 16–17 and apprentices Voluntary NI contributions while abroad From 6 April 2026 , people topping up their UK state pension while living overseas will no longer be able to use the cheaper voluntary Class 2 route for future years abroad. Only Class 3 contributions will be allowed for those periods. To qualify to pay Class 3 for time spent abroad after that date, you’ll generally need either: 10 consecutive years living in the UK, or at least 10 years of paying UK National Insurance. Existing arrangements for periods abroad before 6 April 2026 stay as they are, and HMRC will contact people currently paying Class 2 from overseas with next steps. If you’re planning time abroad and are relying on voluntary NI to protect your state pension, it’s worth checking your record and options early. Pension Salary Sacrifice NI Cap (from April 2029) Only the first £2,000 of pension salary sacrifice gets NI relief. This mainly affects higher earners and owner-managed businesses. High-Value Property Council Tax Surcharge (from 2028) £2,500/yr for £2m–£5m homes £7,500/yr for £5m+ homes Inheritance Tax (IHT) Changes Nil-rate bands frozen until 2031 APR and BPR capped at £1m per person From April 2027, unspent pension pots become part of the IHT estate A major shift for estate and retirement planning. Support for Households Universal Credit two-child limit scrapped (April 2026) Benefits roughly £5,310 per family , helping 560,000 households . PIP changes reversed The Government is no longer tightening eligibility. Extra £3.9bn allocated. Rising disability benefit costs An additional £1.4bn expected as claims and support levels increase. Energy bill support Budget measures should lower CPI inflation by 0.3% in 2026 , easing energy costs slightly. Rail fare freeze For the first time in 30 years , regulated fares won’t rise — saving some commuters £300+ per year. NHS prescription freeze Charges remain at £9.90 per item for 2026/27. Final Thoughts This Budget is exactly what many expected: Taxes are rising — mostly quietly Threshold freezes continue to pull people into higher bands Businesses get a mix of relief and additional obligations Households under pressure receive targeted support If you’re unsure how these changes affect you — whether you're a business owner, landlord, freelancer, or employee — I’m here to walk you through the practical impact. Talk to me about your situation and I’ll help you plan your next steps with clarity.

HMRC has launched a new online tool designed to help businesses work out whether their projects qualify as research and development (R&D) for tax relief purposes. If you’ve ever looked at the R&D rules and thought, “I’m not sure if this counts…”, this tool is meant to give you a steer before you commit to a claim. But — and this is important — it isn’t mandatory, and it doesn’t guarantee HMRC will accept your claim. Think of it like CEST for IR35: useful, but not a final decision-maker. Here’s what you need to know before you use it. What the checker is designed to do The tool walks you through a short questionnaire (around 10 minutes) and gives a simple conclusion:  Your project includes qualifying R&D , or It does not include qualifying R&D , with reasons why. It’s aimed mainly at first-time claimants or businesses with limited experience of the rules. If you’ve been claiming for years, you may still find it helpful as a sense-check. You’ll still need a “competent professional” This is where HMRC has set the bar higher. Several questions must be answered — or at least validated — by someone HMRC calls a competent professional. That means someone who: Is knowledgeable and experienced in the relevant field of science or technology Understands the baseline level of knowledge at the start of the project Was involved in the work and can judge the uncertainties and advancements This is one of the biggest reasons HMRC is challenging more R&D claims — and the checker reflects that push for evidence and technical detail. How the checker works There are three sections: Section 1 — General project information You’ll confirm the project details and describe the scientific or technological problem you were trying to solve. Sections 2 and 3 — Technical input These parts focus on whether: You aimed for an advance in science or technology There were genuine scientific or technological uncertainties You followed a systematic approach to trying to resolve them You succeeded — or not (failed projects can still qualify) If you give an answer that renders the project ineligible, the checker pauses immediately and explains why. You can update your response and continue. At the end, you can preview, save, or print the results. What the tool doesn’t do This part is crucial: It does not assess whether your costs are eligible It does not confirm which R&D scheme you should claim under It does not guarantee acceptance by HMRC You’ll still need to understand eligible expenditure rules and ensure your claim aligns with current guidance. Should you rely on it? It’s a useful early sense-check — especially if you’re unsure whether your project qualifies. But it’s not a substitute for: Proper documentation Technical narratives Evidence of uncertainty and attempted advancement A compliant cost breakdown Independent review where projects are borderline Given HMRC’s increased enquiries into R&D claims, a cautious approach is still the safest one. Final thoughts The checker is a welcome tool, especially for businesses new to R&D claims. Used properly, it can flag issues before you file — and reduce the risk of a stressful enquiry later. But it’s only one part of the process. If you’re thinking of making an R&D claim, or if you want a second opinion before submitting, I can help you walk through the rules, check technical eligibility and review your documentation. Talk to me about your R&D plans — and let’s make sure your claim stands up to HMRC scrutiny.

The latest data from the Office for National Statistics shows the UK economy grew just 0.1% in August — a modest improvement after July’s 0.1% fall, but still a sign of how finely balanced things are at the moment. This small uplift was driven largely by manufacturing, which expanded by 0.7%. By contrast, the much larger services sector — responsible for around 80% of UK output — was completely flat. Over the three months to August, GDP grew 0.3%. Better than contraction, but not a surge. What’s going on under the surface? Manufacturing picking up Production has been a drag for much of the year, so its improvement in August helped soften weaknesses elsewhere. Services stuck in neutral The services sector holding steady isn’t a disaster, but it also isn’t the growth the Government has been hoping for ahead of the 26 November Autumn Budget. Budget pressures building Economists remain cautious. Growth is expected to stay subdued into the winter, particularly as higher taxes, rising costs and squeezed public finances limit room for manoeuvre. The Institute for Fiscal Studies estimates a £22 billion gap in the public finances — a shortfall the Chancellor will almost certainly need to address.  That typically points to one of two things: tax rises spending cuts (or a combination of both) Rachel Reeves has said she is considering “further measures” to ensure her Budget balances the books. How does the UK compare internationally? The IMF’s latest outlook provides a mixed message: The UK is expected to be the second-fastest-growing advanced economy this year . But it’s also forecast to have the highest inflation in the G7 in 2025 and 2026 , driven mainly by energy and utility costs. The Treasury has highlighted the UK’s position as the fastest-growing G7 country so far this year, while acknowledging what many households and businesses feel: the economy still feels “stuck”. What does this mean for businesses? The big takeaway is that conditions remain uncertain. Growth is there — but only just. And with the Budget only weeks away, businesses should expect: potential tax changes policy shifts to support investment and growth possible reforms targeting productivity and infrastructure Now is a good time to revisit your forecasts, review your cashflow and prepare for a few different Budget scenarios. If you’d like help planning for the months ahead or understanding how the Autumn Budget may affect you, talk to me about your business .

The world of work keeps shifting, and for many businesses, flexibility is now a key part of the offer. One growing trend? The “workcation” — where employees spend part of the year working remotely from another country. What began as an occasional perk has become a structured option in many organisations. According to a recent survey, 77% of mid-sized employers now have a formal international remote-working policy , up from 59% just two years ago. It’s a reflection of how hybrid working has matured — and how businesses are using flexibility to attract and retain talent. Setting boundaries Despite the rise in popularity, these policies are far from open-ended. Almost every company that allows overseas work (99%) does so only within strict parameters — and that figure has risen sharply from 92% in 2023. Typical boundaries include: Limits on the number of days abroad A list of approved countries Pre-travel declarations and HR approval Clear tax and social security guidance These checks ensure the arrangement stays low-risk for both sides. Compliance comes first Just a few years ago, letting an employee work from another country could quietly trigger tax filings, local payroll requirements or even a “permanent establishment” issue. In 2025, that risk is much lower — but only because employers are taking compliance seriously. The latest data shows that the number of firms rating overseas work as a high compliance risk has dropped to just 2% . That’s thanks to: Better monitoring systems Integrated payroll and HR data Clearer cross-border tax advice Stronger employee training before travel Why this matters Workcations can be a powerful retention tool. For employees, they offer a sense of balance and freedom. For employers, they can mean happier, more loyal staff. But flexibility only works if the framework is solid. If you’re considering allowing staff to work abroad — or refreshing an existing policy — make sure you: Document your rules and approval process Map out where and when tax or social security obligations arise Build in checks for local employment and immigration rules Handled well, workcations can deliver flexibility without creating compliance headaches — a win for both sides. 📞 Talk to us about your business if you’d like to review your current processes or get practical guidance on managing the risks.

How to Read a Budget Announcement – Separating Noise from Numbers Every Budget day follows the same script: Ministers promise “fairness”, pundits shout “tax raid!”, and by tea time, half the internet is quoting figures that don’t actually exist. So, before 26 November rolls around, here’s how to read a Budget like an accountant — not a headline writer. 1️⃣ Ignore the performance, read the documents The Chancellor’s speech is theatre. The real substance hides in the Red Book and the HMRC policy papers uploaded minutes after the speech. That’s where the fine print lives — thresholds, exceptions, start dates and claw-backs. When I post my post-Budget summary, that’s exactly where I’ll be looking, not at what played well on the 10 o’clock news. 2️⃣ Watch the “effective date” A measure announced for “next April” gives everyone time to adapt. A measure effective from midnight tonight is where the money really is — capital gains, SDLT and duties often land this way. If you’re planning a transaction near Budget day, know which taxes can be switched on overnight. 3️⃣ Follow the small print “Consultation to follow.” “Review of fairness.” “Exploring alignment.” Those sound harmless — but they’re the first stage of real change. A “consultation” on rental income and National Insurance today can turn into an Act of Parliament next year. 4️⃣ Spot the stealth tactics The Treasury’s favourite tools aren’t rate hikes — they’re freezes , allowance cuts and re-definitions . If you hear “no increase in Income Tax, VAT or NI rates”, ask what didn’t change instead: thresholds, reliefs, or the scope of who’s caught. That’s where fiscal drag quietly does its work. 5️⃣ Don’t take “winners and losers” at face value Budgets love “headline giveaways” — a £500 allowance here, a temporary credit there. They often vanish inside a few months of inflation or through tighter eligibility rules. Always read the fine print on who qualifies and for how long. 6️⃣ Separate politics from policy Governments like symbolic measures — alcohol duty freezes, corporation-tax “growth incentives”, tweaks to inheritance tax. They sound decisive, but most raise or cost less than a rounding error in the national accounts. Focus on the structural changes — the ones that alter behaviour, not headlines. ⚙️ What I’ll be doing on Budget day As soon as the details land, I’ll strip out the noise and post a straight-down-the-line summary: what’s confirmed, when it starts, and who it hits.  No jargon, no spin — just what you need to know to plan next steps. Until then, treat every “Budget leak” with suspicion. Most are kite-flying exercises, not policy.

Financial security for the self-employed: how to build a savings plan that actually works If you work for yourself, you already know the trade-off: more freedom and flexibility, but none of the protections that come with employment. No sick pay, no holiday pay, no employer pension, and every tax bill is entirely yours to plan for. That’s why financial resilience isn’t just sensible — it’s essential. But the reality is, many people are still operating with little or no backup. The FCA’s latest data shows: 1 in 10 UK adults has no cash savings at all Another 21% have less than £1,000 set aside Around 13 million people are classed as having “low financial resilience” So let’s look at how to fix that with a practical, self-employed-friendly savings framework. 1. Start with a proper cash reserve target Employees are usually told to save 3–6 months of expenses. If you’re self-employed, aim for 6–12 months instead , because you’re covering more risk and more volatility. It helps to split this into two separate pots: A personal emergency fund — covers rent/mortgage, bills, food, childcare, insurance and other essentials. A business buffer — covers your tax bill, National Insurance, software costs, equipment, subcontractor support and other fixed business costs. A simple test: If your income stopped tomorrow, how long could you continue without taking on debt or panic-spending your savings? Your answer = your target. And the key rule: don’t mix this money with your day-to-day spending account . Separate accounts = better discipline. 2. Build a tax pot automatically A lot of tax stress comes from the same mistake: treating tax as a once-a-year surprise instead of a running cost. The fix is simple: move a percentage of every invoice into a separate “tax pot” the day you get paid. That way, the money is there before HMRC ever asks for it. A rough guide: Basic-rate taxpayers: 20–25% of income Higher-rate: 30–35% Additional-rate: 40%+ And remember: if your last Self Assessment bill was over £1,000, HMRC will probably expect payments on account as well: 31 January — balancing payment + first instalment for the current tax year 31 July — second instalment If you miss these, HMRC charges interest. At the time of writing, that’s more than 8% — so keeping a tax pot is much cheaper than borrowing your way out of a deadline. 3. Use tax-efficient savings options Once you’ve got your emergency fund and tax pot running, the next step is to protect and grow longer-term savings. Short-term access cash (for emergencies): Easy-access savings accounts Notice accounts (30–90 days if you want a better rate) Premium Bonds (not a replacement for interest, but a useful add-on) Long-term savings and investments: The annual ISA allowance (£20,000 for 2025/26) — protects interest, dividends and gains from tax Personal pensions — contributions receive tax relief and can pull income back out of higher tax bands Lifetime ISA (if eligible) — a 25% government bonus for first-time buyers or retirement savings Always keep your emergency fund outside pensions, because pension money can’t be accessed until later in life. 4. Plan for illness, injury or life changes One of the biggest financial risks for the self-employed is not tax — it’s loss of income due to illness or injury. Employees get statutory sick pay. You don’t. So consider whether you need: Income protection insurance (replaces a percentage of earnings if you’re unable to work) Critical illness cover (a lump sum if diagnosed with a severe condition) Life insurance (important if you have dependants) For new or expectant parents: you won’t qualify for Statutory Maternity Pay, but you may be able to claim Maternity Allowance if you meet the NI and earnings rules. It pays up to £187.18 a week for up to 39 weeks. 5. A simple step-by-step action plan  Open three accounts: everyday spending, tax pot, and emergency fund. Automate transfers every time a client pays you — don’t rely on “leftovers”. Set a goal of 6–12 months’ expenses and track progress quarterly. Once your emergency fund is in place, use ISAs and pensions for long-term saving. Review insurance options to protect income if you couldn’t work for several months. Add the Self Assessment deadlines (31 Jan and 31 July) to your calendar and cashflow plan. Refill the emergency fund before restarting investment contributions if you ever dip into it. The best system is one that runs even when you forget about it — not one that relies on motivation. Final word Being self-employed means you carry more financial risk — but also more control. A proper savings structure means: Tax bills stop being a crisis One bad month doesn’t become debt You can take time off without fear You can build wealth long-term instead of firefighting short-term If you’d like help building a tax pot strategy, pension plan or cashflow system that actually fits the way you work, just get in touch. 📩 Need support with self-employed finances? Let’s talk.

HMRC has now launched its new online service allowing people to pay the High Income Child Benefit Charge (HICBC) through Pay As You Earn (PAYE) instead of Self Assessment — a change first announced in the Spring Statement 2025. The update is designed to help taxpayers who only complete a tax return because of HICBC, removing the admin burden for thousands of families. ✅ Who the charge applies to HICBC kicks in when either you or your partner has adjusted net income above £60,000 . From 2024/25: Charge starts at £60,000 Fully removes child benefit by £80,000 The clawback rate: 1% of the benefit for every £200 earned above £60,000 🔄 What’s changed? Until now, the only way to settle the charge was through Self Assessment — unless the amount was under £2,000 and could be coded out via PAYE. Under the new system, PAYE taxpayers who don’t need a tax return for anything else can now pay HICBC directly through their tax code . To use the service, you must: De-register from Self Assessment (if that’s the only reason you're filing) Wait 24 hours for HMRC systems to update Opt in to paying via PAYE HMRC will be writing to around 100,000 people who appear liable but aren’t currently in Self Assessment , so expect contact if you're affected. ⚠️ One quirk to note: If your charge spans 2024/25 and 2025/26, you could briefly see two HICBC deductions in your tax code. HMRC says this will correct itself over the year. 🧠 Don’t forget: opting out of payment isn’t the same as opting out of claiming Some parents choose to stop receiving the benefit to avoid the charge — but it can still be worth registering because: You receive National Insurance credits if you’re not working Your child is automatically issued an NI number before 16 So even if you're not being paid the benefit, the registration still matters. 📌 What to do next If you: File Self Assessment only because of HICBC → you may be able to stop Are unsure whether you're affected → now is the time to check your adjusted net income Want PAYE to handle the charge → you’ll need to de-register before enrolling If you’re not sure whether you're caught by the rules — or whether switching to PAYE makes sense — just get in touch and I’ll walk you through it. Need help reviewing your HICBC position? ✅ Check whether you're liable ✅ Confirm whether PAYE is now suitable ✅ Avoid penalties for missed declarations 📩 Message me or book a call — happy to help.

Why the Treasury Keeps Looking at National Insurance Every few months, someone at the Treasury “discovers” National Insurance again — usually when they need to raise money without appearing to raise taxes. It’s predictable, and it’s clever, because NI is the perfect middle ground between visible tax and quiet revenue grab. Let’s unpack why it keeps coming up, and what it means for employers, workers and landlords. 1️⃣ The political disguise  National Insurance sounds like something you get back — pensions, sick pay, NHS. That makes it far less toxic than calling it “extra income tax”. But make no mistake: for most people, NI is income tax by another name. Employees pay it, employers pay it, the self-employed pay it — yet politicians can tweak the rules and still claim “we haven’t touched income tax”. That’s how we ended up where we are now: Employer rate up to 15 % from April 2025. Thresholds frozen. Wider talk about extending NI to other income types. 2️⃣ The self-employed gap Roughly one in seven UK workers is self-employed. They pay less NI overall because there’s no “employer” contribution on their earnings. From the Treasury’s point of view, that’s a hole — and holes are meant to be filled. That’s why you keep hearing about bringing self-employed Class 4 NICs closer to employee levels, or inventing a brand-new charge on partnership and LLP profits. It’s sold as “fairness”. In practice, it’s revenue. 3️⃣ The landlord problem Rental income currently attracts no NI at all. So, when the Chancellor promises not to raise “rates for working people”, it leaves a nice loophole: you can invent a new NI category on unearned income and say the pledge still stands. If you own property personally, that’s worth watching. Even a 5 % “contribution” on rental profits would raise billions — and quietly shift thousands of landlords towards incorporation or exit. 4️⃣ Employers as easy targets Employers can’t move abroad, and they can’t vote. So an extra percentage point here or a threshold tweak there often goes unnoticed by staff. A 1 % change in employer NI raises more money than most headline tax moves — with far less political pain. If you run payroll, it’s already eating into margins. Expect the pressure to continue, particularly through PSAs and benefits-in-kind rules. 5️⃣ Data makes it easy NI is collected in real time through payroll and digital records. It’s efficient to administer, hard to avoid and cheap to enforce. From a policymaker’s point of view, it’s almost irresistible. That’s why we’ll likely see integration — pulling benefits and expenses into payroll, merging NI classes, or eventually combining NI and income tax entirely. ⚙️ What to take from this NI isn’t going anywhere — expect the base to widen rather than the rate to rise. Employers should plan for the long game: higher costs per head and fewer reliefs. Self-employed clients should budget as if NI parity with employees is only a matter of time. Landlords should at least run the numbers: “What if rent became NI-able?” And remember: whenever a Chancellor says “we’ve kept our promise not to raise income tax”, the translation might be “we’ve changed National Insurance instead.”

🎃 Planning Ahead: What Halloween Can Teach Us About Finances Every year, Halloween arrives with costumes, carved pumpkins, and a few harmless scares. But beneath the fun, the tradition has surprisingly practical roots — and a few lessons that still apply to business and personal finance today. From harvest to Halloween Halloween’s origins trace back to the ancient Celtic festival of Samhain , a time to mark the end of the harvest and prepare for the colder, leaner months ahead. Communities would gather what they’d grown, store supplies, and plan carefully to make sure nothing went to waste before spring returned. In many ways, it was an early version of financial planning — taking stock, reviewing resources, and getting ready for what’s next. Preparing for your own “winter season” Modern business owners face the same principle, just with different tools. The end of the year is a natural point to review your position: How has this year’s trading gone so far? Are you ready for your January bills and tax deadlines? Do you have enough set aside to manage the quieter months ahead? A bit of preparation now — checking your cashflow, updating forecasts, or reviewing expenses — can save a few financial “frights” later on. Avoiding the surprises Most of the financial surprises I see aren’t caused by big mistakes — they come from timing and planning gaps. Things like VAT payments sneaking up, forgotten tax bills, or late invoices that disrupt cashflow. By keeping your books up to date and reviewing regularly, you stay one step ahead. The takeaway Halloween might be about tricks and treats, but it’s also a reminder to prepare before the cold sets in. Take a little time this week to review your numbers, tidy up your records, and plan ahead — so you can enjoy the rest of the year without any unexpected scares. And if you’d like help reviewing your finances or planning for the months ahead, I’m always happy to talk it through.  👻 Happy Halloween — and here’s to a smooth end to the financial year. — Pat

A recent Bank of England survey has painted a worrying picture for UK employers — job cuts are rising at the fastest pace in four years, as higher taxes and ongoing cost pressures continue to bite. The Decision Maker Panel , which surveys more than 2,000 chief financial officers each month, found that employment fell by 0.5% in the three months to August , the sharpest drop since 2021. Plans for future hiring also weakened, with growth expectations slipping from 0.5% to just 0.2% . The impact of higher National Insurance Many businesses pointed to April’s £25 billion rise in employer National Insurance contributions (NICs) as the key factor behind their decisions to cut jobs or reduce wage growth. Almost half of the businesses surveyed said the NIC increase directly led to staff reductions. Around one in three raised prices to offset the additional costs. Two-thirds reported tighter profit margins, and one in five said they paid lower wages than planned. While the overall impact wasn’t as severe as some had feared, the pressure is clear: rising employment costs are forcing difficult decisions across sectors. What this means for business owners For small and medium-sized businesses, this is another reminder of how quickly tax and policy changes can affect hiring, pay and planning. Higher NICs don’t just impact payroll — they ripple through to pricing, profitability and competitiveness. The Bank of England will take this softer jobs data into account when it next meets to set interest rates on 18 September , though most analysts expect rates to stay at 4% for now. Looking ahead to the November Budget With Chancellor Rachel Reeves due to deliver the Autumn Budget on 26 November , many business owners are watching closely for signs of further tax changes or measures to ease growth pressures. The Treasury has said the upcoming Budget will “focus on pro-growth reforms,” but speculation about new taxes or adjustments to existing reliefs remains high. My take The takeaway for businesses is simple: plan ahead, stay flexible, and model your costs under different scenarios. Even small changes to employer taxes or thresholds can have a big impact on payroll budgets. If you’d like a clear view of how potential Budget changes could affect your business — or a review of your current cost structure — get in touch. I’ll also be sharing updates and insights in the run-up to the November Budget, so you can stay informed and prepared for whatever comes next.

How Governments Raise Tax Without “Raising Taxes” We keep hearing the same line every election: “We won’t raise Income Tax, VAT or National Insurance.” And technically, that can be true — yet the tax take still goes up year after year. So how do they do it? Simple: not through new rates, but through quiet tweaks, freezes and re-definitions that barely make the headlines.  Let’s lift the lid. 1️⃣ The stealth tax nobody talks about: freezing thresholds When a tax band or allowance stays still while prices and wages rise, more income drifts into higher tax. That’s called fiscal drag, and it’s been the government’s best friend for years. The personal allowance has been frozen at £12,570 since 2021. If it had risen with inflation, it would be around £15,000 by now. That gap quietly pulls millions into the basic rate, and basic-rate earners into the higher-rate band. The same game plays out across benefits, CGT, pensions and VAT thresholds. No rate rise — yet the Exchequer pockets billions. 2️⃣ Shrinking reliefs and allowances Instead of cutting a tax rate, the Chancellor can cut the allowance attached to it. Take dividends: the tax-free allowance has been sliced from £2,000 to £500 . Capital gains allowance? Down from £12,300 to £3,000 . No headlines, just smaller numbers on the same forms — and higher bills for those who notice too late. 3️⃣ Moving the goalposts Rules change. Definitions change. What used to be tax-free gets re-classified. Examples: Company cars now taxed on a more precise CO₂ scale. Salary-sacrifice schemes that once cut NIC bills for gym memberships or tech purchases are now limited to EVs, bikes and pensions. Even the definition of “trivial benefit” has been tightened by guidance rather than legislation. Every tweak adds a few more taxpayers to the pot. 4️⃣ New classes, not new taxes Politicians can keep their “no new tax” promise while still inventing one. Rebadging is a classic move: Apprenticeship Levy, Bank Surcharge, Health & Social Care Levy (since absorbed back into NIC). Now the talk is of NIC on rental income or wider partnership charges — technically “broadening the base”, not increasing a rate. It’s semantics, but effective semantics. 5️⃣ Compliance and digitalisation HMRC’s push for real-time data — MTD for VAT, PAYE integration, eventually MTD for Income Tax — isn’t just about admin. It’s about closing gaps and boosting yield. Every mismatch spotted by software is another pound recovered. They don’t need higher rates when better data does the work. 6️⃣ The optics game Chancellors rarely want to headline a tax rise. Freezes, relief cuts and “fairness reviews” sound dull but feel safer politically. By the time the impact lands, a different Chancellor is usually holding the brief. 🔍 What this means for you and your business Don’t fixate on rates alone — look at thresholds, allowances and definitions. Model your numbers as if everything you earn will creep into the next band sooner than you expect. Keep pension, ISA and dividend strategies under review — they’re easy political targets. And when you hear “no new taxes” on Budget Day, remember: that doesn’t mean no more tax.

A lot of great community projects start informally — a few people, a good idea, and the motivation to make a difference. Over time, though, many groups reach a point where the question comes up: “Should we register as a charity?” There’s no single answer that fits everyone. But understanding the pros, cons, and timing can help you make a confident decision. The Benefits of Registering Gift Aid on donations This is often the main reason groups register. Once you’re a registered charity, you can claim an extra 25p for every £1 donated by UK taxpayers. That’s effectively a 20%+ boost to your fundraising — without asking supporters to give more. Access to funding Many grant bodies, councils, and corporate funders will only work with registered charities. If you’re planning to grow, you’ll eventually find that registration opens doors that would otherwise stay closed. Credibility and trust Adding “Registered Charity No. XXXXX” to your materials signals that you’re accountable and established. It reassures donors, volunteers, and partners that your finances and governance are transparent. Tax and business rate relief Charities don’t usually pay corporation tax on income used for charitable purposes and can receive up to 80% off business rates — a major help if you rent or own premises. Supplier discounts From fundraising platforms to software, energy, and insurance providers, many suppliers offer reduced rates to registered charities. The Trade-Offs More admin Registration means you’ll need to file annual accounts and returns with the Charity Commission . It’s not overly complex, but it does require organisation and consistency. Governance responsibilities Charities must have trustees who oversee activities and finances. They generally can’t be paid, and funds must only be used for charitable purposes — which means less flexibility than an informal setup. Oversight and regulation The Charity Commission has the power to intervene if governance or finances aren’t up to standard. This oversight helps protect donors and beneficiaries, but it also means accountability is higher. Setting up properly You’ll need a constitution, a clear charitable purpose, and a board of trustees. Getting that groundwork right saves headaches later. The Hidden Costs to Be Aware Of Registering can bring new income opportunities — but also some financial responsibilities: Independent Examination (IE) Under £25,000 income – No external review needed; basic accounts are fine. £25,000–£250,000 – An IE is required, but this doesn’t have to be a professional accountant. A volunteer with the right skills often suffices. Over £250,000 – The IE must be done by a qualified accountant. There may be a fee unless you find someone willing to volunteer. Audit threshold Once your income exceeds £1 million , or certain asset/liability levels, you’ll need a full audit. That’s more work and higher cost. Professional services As your charity grows, you might also decide to outsource bookkeeping, payroll, or financial reporting. Gift Aid vs Costs — A Simple Example Here’s a simple way to see how Gift Aid can make a difference. If your group receives £20,000 in donations each year, claiming Gift Aid adds another £5,000 , giving you £25,000 in total . Even if you spent up to £500 on an independent examination, you’d still be around £4,500 to £5,000 better off than staying unregistered. At £50,000 of annual donations, Gift Aid would bring in £12,500 , for a total of £62,500 . With typical examination costs of around £1,000 , that’s an extra £11,500 in available funds. And if donations reach £100,000 , Gift Aid could add £25,000 , bringing your total to £125,000 . Even allowing about £1,500 for professional review costs, you’d still see a net gain of roughly £23,500 . Rough examples, but enough to show that Gift Aid usually outweighs the extra admin. When It Makes Sense to Register ✅ Income over £5,000 Once you pass this threshold, you’re eligible to apply. For many groups, this is where Gift Aid starts to make a real difference. ✅ Mainly donation-funded If your supporters give regularly, Gift Aid can add thousands each year without increasing donations. ✅ Looking to expand Planning to apply for grants, employ staff, or lease a property? Registration is often required to do so. ✅ Wanting structure and accountability Formal status helps clarify who’s responsible for decisions and how funds are used — which reduces the risk of future disputes. When You Might Stay Informal If your group raises less than £5,000 a year and intends to stay small, the admin may not be worth it.  If your income mainly comes from trading — such as selling products or services — the benefits of Gift Aid may not apply. And if your activities are primarily social or recreational rather than charitable, you might not meet the Charity Commission’s definition of a charitable purpose. Bottom Line Registering as a charity can bring credibility, access to funding, and a welcome boost through Gift Aid. But it also adds structure, rules, and a layer of accountability. If your group is growing, r egularly raising over £5,000 , or planning to expand its reach, now’s a good time to explore registration. With a clear constitution and some light-touch financial support, becoming a charity can set you up for long-term impact and sustainability.

A practical guide for small businesses Many small businesses rely on contractors — it’s often the best way to access specialist skills and keep costs flexible. But with HMRC tightening up on IR35 and off-payroll working rules , getting this right has never been more important. Handled properly, it protects your business from unexpected tax bills and penalties, and it keeps relationships with contractors and agencies running smoothly. Here’s what you need to know for 2025/26 , what changed in April 2025, and how to stay compliant without adding unnecessary admin. What IR35 actually covers IR35 exists to make sure people working like employees but through a limited company (often a personal service company , or PSC) pay roughly the same tax and National Insurance as regular employees. There are two sets of rules: Chapter 8 (IR35) — applies mainly to small private-sector clients. The contractor’s company is responsible for determining employment status and paying any tax. Chapter 10 (Off-payroll working) — applies to medium and large clients, and the client must determine status and operate PAYE if the work is “inside IR35.” If you’re a public sector organisation or a medium/large private company, the responsibility sits with you. Smaller businesses are exempt — for now. Who decides employment status in 2025/26 Public sector: You must assess each engagement and operate PAYE for “inside IR35” roles. Medium/large private sector: Same as above — you assess, issue a Status Determination Statement (SDS) , and deduct tax if needed. Small private sector: You’re exempt from Chapter 10, so the contractor’s company handles the IR35 test. But you must confirm your size if asked. What counts as “small”  In 2025/26 , you’re classed as a small business if you don’t meet two or more of these: Turnover over £10.2 million Balance sheet total over £5.1 million More than 50 employees If you’re below these thresholds, Chapter 10 doesn’t apply — but you still need clear records and a consistent process. From April 2025, the thresholds increase (to £15m turnover and £7.5m balance sheet), but because of how HMRC applies the size tests, those changes won’t usually affect IR35 status until 2027/28 at the earliest. What the data tells us HMRC’s 2025 update shows the impact of the off-payroll reforms: Around 120,000 workers were directly affected 45,000 fewer new PSCs were formed after the 2021 changes The reforms raised £4.2bn in extra tax and NICs That means more scrutiny, more checks, and more reason to have your paperwork watertight. What small businesses should do now If you’re a small business , the contractor’s company decides whether IR35 applies — but you should still: Confirm your size if asked (HMRC says you must reply within 45 days) Keep clear records of contracts, company details and insurance Review working practices — control, substitution, and financial risk are key tests If you’re medium or large , you’ll need a proper process: Use HMRC’s CEST tool or an independent review for every engagement Take reasonable care, keep notes, and issue an SDS to both the worker and your supplier Operate PAYE for “inside IR35” engagements Keep a record trail — contracts, SDS copies, and supporting evidence The 2024 set-off rule A small but important update: since April 2024, HMRC can now offset taxes already paid by a contractor or their company against what they assess from the end-client. This reduces double taxation — but doesn’t cover penalties or interest, so prevention still beats correction. Planning ahead Between now and 2027, keep your size under review. If you’re growing and likely to cross the medium threshold, plan ahead so you can update contracts, systems, and staff training early. For now, focus on: ✅ Knowing which rules apply to you ✅ Keeping evidence and records tidy ✅ Communicating clearly with contractors and agencies Final thoughts IR35 doesn’t need to be complicated. With the right workflow — clear status checks, templates for SDS and size confirmations, and a simple record-keeping process — it can be part of your normal operations, not a yearly headache. If you’d like a light-touch review of your IR35 setup or a one-page policy for your team, get in touch.

Retail sales rise — but uncertainty remains ahead of the “golden quarter” Retailers saw a welcome lift in August, helped along by warm weather, back-to-school spending and the recent Bank of England interest rate cut. But while the numbers look positive, business confidence tells a more cautious story. According to the latest British Retail Consortium (BRC) and KPMG survey , total sales rose 3.1% year-on-year in August — building on 2.5% growth in July and 3.1% in June. Where the growth came from Food and drink led the way, up 4.7% , though much of that rise came from higher prices rather than stronger volumes. Inflation continues to squeeze household budgets, especially for everyday staples like beef, chocolate and coffee. Non-food categories also performed well, rising 1.8% overall — the third consecutive monthly increase. Furniture sales picked up again, and there were solid gains for DIY, household goods and gardening products. Tech sales were another bright spot, boosted by back-to-school purchases and the launch of new Samsung foldable phones and Google’s Pixel 10 . What’s next for retail Despite this positive momentum, many retailers remain nervous about the months ahead. Consumer confidence has now fallen for three straight months , with shoppers expecting further food price increases and tighter household budgets. The BRC has also warned that speculation around possible tax rises could dent spending as we move into the critical pre-Christmas trading season — often called the “golden quarter”. This period accounts for a significant share of annual sales for many retailers, so any dip in confidence could have real consequences. What it means for your business If you’re running a retail or consumer-facing business, this is a good time to keep a close eye on your cashflow, margins and inventory planning. Warmer weather and one-off boosts like tech launches can lift sales temporarily — but sustainability comes from clear financial visibility and flexible forecasting. The next Budget , due on 26 November , may bring more clarity on taxation and spending. Until then, retailers should plan cautiously, track performance closely, and stay adaptable to shifting consumer habits. Need a hand reviewing your figures or forecasting for the next quarter? Get in touch — we can look at your sales trends and help you plan with confidence.

FreeAgent Review – Built for the UK, Perfect for Freelancers and Trades Unlike Xero and QuickBooks, which are global products adapted for the UK, FreeAgent was built exclusively with UK businesses in mind. That makes it unique — and for some clients, it’s the ideal choice. Why FreeAgent works so well for smaller businesses FreeAgent is designed to be simple, friendly, and highly automated . It covers the basics brilliantly, without overloading you with features you’ll never use. Some of the UK-specific features include: Built-in mileage tracking . Self-assessment filing direct to HMRC from within the software. Simple VAT handling, with MTD support. And thanks to deals with certain banks, some clients even get FreeAgent for free with their business account. Things to be aware of FreeAgent isn’t designed for bigger, more complex businesses. If you scale up significantly, you’ll probably outgrow it. It has fewer integrations compared to Xero or QuickBooks. That makes it less attractive if you’re running online systems and want everything joined up — but actually makes it more suited to offline trades and traditional businesses , where the priority is simplicity rather than lots of connected apps. Who FreeAgent is best for  FreeAgent is ideal for freelancers, contractors, sole traders, and offline trades who want a straightforward, UK-focused system. It’s friendly, practical, and does everything most micro-businesses need without unnecessary complexity. As a FreeAgent Partner, I can help you set it up, keep it running smoothly, and guide you on when it’s time to stick with it — or when you might benefit from moving up to Xero or QuickBooks.

What businesses need to know HMRC has recently turned up the heat on research and development (R&D) tax relief claims , and the numbers tell the story. In 2023/24 alone, errors in R&D claims totalled £441 million , and one in five claims were subject to enquiry — a sharp rise from just one in twenty two years ago. This increased scrutiny isn’t going away anytime soon. HMRC has launched a specialist anti-abuse unit , adding 300 more staff to its small business compliance team. Around 500 officers now focus entirely on identifying errors and potential fraud in R&D claims. What’s changed Two new measures mean businesses need to be more careful than ever when preparing R&D claims: The Additional Information Form (AIF) now requires detailed project and cost breakdowns before a claim can be submitted. The Mandatory Random Enquiry Programme (MREP) means that even perfectly compliant claims could be selected for review. In other words — R&D claims will now face more checks, more questions, and higher expectations for evidence. How to reduce your risk There are a few simple but essential steps that can make all the difference: Keep your documentation solid. Track project milestones, staff time and related costs throughout the year. Back everything up with payroll data, invoices, and receipts. A clear audit trail is your best defence if HMRC asks for more detail. Stay proactive, not reactive. Don’t leave compliance checks until the end of the year. Regular reviews and early preparation make the process smoother — and help you avoid nasty surprises later on. Work with the right support. Combining strong record-keeping with the right technical expertise can make your R&D claim both credible and efficient. Rejected claims don’t just delay refunds — they can hurt your cashflow, confidence, and growth plans . With more enquiries expected, accuracy and preparation are absolutely vital. If your business is involved in innovation, take the time to get your R&D process right now. Get in touch if you’d like help reviewing or preparing your R&D claim.

QuickBooks Online Review: A Global Player With a Traditional Touch If there’s one accounting brand almost every business owner has heard of, it’s QuickBooks . In the UK, QuickBooks Online (QBO) is a major alternative to Xero — and for some businesses, it’s the better choice. What QBO does well QuickBooks stands out for a few reasons: It offers a traditional, full bank reconciliation . This means you can tick off transactions line by line, just like in old-school accounting systems, and lock them down without rewriting history. You can use that same reconciliation process for other balance sheet accounts too — like loans or credit cards. Its reporting is strong and customisable , which is a big plus for business owners who like to dive into the detail. Its VAT tools are solid , helping avoid errors and making MTD submissions straightforward. Things to be aware of The interface is a little less slick than Xero’s, so some business owners find it less intuitive at first. The UK ecosystem of apps and add-ons is smaller than Xero’s, though that gap is narrowing. Who QBO is best for QBO is a great fit if you value control, audit trail, and detailed reporting . It’s especially attractive to businesses that want robust reconciliations and confidence that historic reports won’t change if something is amended. As a QuickBooks Partner, I can help you set it up to suit your business — whether you want the basics done, or detailed reports you can rely on month after month.

Self Assessment isn’t anyone’s favourite task — it has a way of sneaking up just when you’re busy with everything else. But getting it right (and done early) can save stress, interest, and penalties down the line. In this blog, I break down what you need to know for the 2024/25 tax return , what’s changed, and how to make the process smoother — whether you file yourself or hand it over to an accountant. Who needs to file You’ll usually need to send a Self Assessment tax return if: You’re self-employed or in a partnership You received untaxed income , like rent, dividends above your allowance, or foreign earnings You (or your partner) received child benefit and your income was over £60,000 You sold property, shares, or cryptoassets that generated a taxable gain For 2024/25 onwards, HMRC has removed the old “high income” filing requirement for PAYE-only employees — but other income sources can still trigger a return, so it’s worth checking HMRC’s tool if you’re unsure. What to gather Before you log in, make life easier by creating one folder — digital or paper — for your records. You’ll need: P60, P45, or P11D forms from employers Self-employment income and expense records (and note: the cash basis is now the default for most sole traders) Property income statements, repair costs, agent fees Savings and investments info (interest, dividends) Capital gains and crypto transactions Pension contributions and Gift Aid donations Student loan details if applicable Keep your records for at least five years after the 31 January deadline — HMRC can ask for them any time in that window. Avoiding penalties The fixed £100 late filing penalty applies even if you owe no tax. After three months, HMRC adds £10 per day , and interest currently runs at 8% on late payments. If you can’t pay in full, you can usually set up a Time to Pay plan online for debts up to £30,000. Payments on account If you owe over £1,000 and less than 80% of your tax was already collected (for example, through PAYE), HMRC will normally ask for two instalments toward your next bill — on 31 January and 31 July . That means new filers often face a “double hit” in their first year — the full bill for 2024/25 plus the first payment on account for 2025/26. Planning ahead can prevent a nasty surprise. Reliefs and allowances not to miss A few areas where people often leave money on the table: Pension contributions – higher-rate or additional-rate relief must be claimed via Self Assessment. Gift Aid – boosts your donation by 25% and can extend your tax bands. Property or trading allowance – up to £1,000 tax-free if income is modest. Rent-a-room relief – up to £7,500 for letting a furnished room in your home. The bottom line Filing early gives you time to claim every relief you’re entitled to, plan for payments on account, and fix any issues before penalties kick in. If your income, property, or pension contributions have changed this year, it’s worth getting your return reviewed before submitting. A quick check now can save you money and stress later. If you’d like help preparing, reviewing or filing your Self Assessment, I can step in at any stage — from a second look to full preparation and submission. 👉 Get in touch if you’d like to go through your figures together.

Xero Review – Why It’s the Go-To Choice for Many UK SMEs When people ask me which accounting software is the “best”, the name that comes up most often is Xero . And it’s not surprising — Xero has become the most widely used cloud system for small businesses in the UK. Why Xero is so popular Xero has built its reputation on being user-friendly, flexible, and accountant-friendly . The interface is clean and intuitive, so business owners can log in and quickly see the numbers that matter. The real power, though, comes from its ecosystem of apps and add-ons . Whether you need inventory, project tracking, or e-commerce integrations, there’s probably a Xero app that does it. That makes it ideal for SMEs that want to grow and connect all their systems together. It’s also well set up for Making Tax Digital and for sharing access with accountants and bookkeepers — meaning collaboration is easy. Things to be aware of No software is perfect. In Xero’s case: The bank reconciliation works differently to QuickBooks — it’s more of a rolling match against balances, which is fine for most users but can be frustrating if you’re used to a traditional tick-off process. It can also feel a bit “over-engineered” for very small businesses, who might never touch half the features they’re paying for. Who Xero is best for Xero is perfect for small and medium businesses that plan to grow — especially if you’ll want to connect your accounting to other apps as you expand. It’s also a safe choice if you want a system that most accountants and bookkeepers already know well. And as a Xero Partner, I can make sure you get the most from it — whether you’re starting from scratch, or looking to improve how you use it.

The Prime Minister has announced a new Budget board – a weekly meeting of senior ministers, advisers and business voices – to shape economic policy in the run-up to the 26 November Budget . It’s designed to join the dots between Number 10, the Treasury and UK business , with a clear brief: find ways to boost growth while keeping the financial markets on side. Why now? The first Labour Budget last October included a £25 billion rise in employer National Insurance and a minimum wage increase . Both measures created extra costs for employers and strained relations with business. Chancellor Rachel Reeves now faces a £20 billion fiscal gap and limited room to cut taxes, so pressure is on to deliver pro-growth measures that don’t spook investors. Who’s involved The board will be co-chaired by Baroness Minouche Shafik , a former Bank of England deputy governor, and Treasury minister Torsten Bell . Other key figures include: Darren Jones , chief secretary to the Prime Minister Senior advisers Varun Chandra, Tim Allan and Ben Nunn Chiefs of staff Morgan McSweeney and Katie Martin Their remit is to align economic policy, planning and communications – and to give business leaders a direct line into government thinking. What to watch The Government has flagged a few priorities: Planning and infrastructure : speeding up major projects Regulatory reform : cutting the number of regulators and streamlining approvals Investment and innovation : keeping markets confident that the UK is worth backing For businesses, that could mean: Possible incentives for investment or capital spending Faster approvals for construction or expansion A steadier policy environment for medium-term planning None of this removes today’s cost pressures – employer NICs remain higher – but it does show an intent to balance growth with fiscal discipline. If you’d like to discuss how upcoming tax or investment measures might affect your plans, get in touch . Early preparation can help you respond quickly when the November Budget details land.

Xero, QuickBooks, FreeAgent: Why I Work With All Three (and Why Market Share Isn’t the Whole Story). If you’ve Googled accounting software recently, you’ll know there’s no shortage of strong opinions. Some firms are “Xero-only”. Others insist QuickBooks is best. A few fly the FreeAgent flag. But no single package suits everyone. That’s why I’m a partner with Xero, QuickBooks Online (QBO), and FreeAgent . Because the right software for your business isn’t about what’s fashionable — it’s about what actually works for you. Who’s “winning” the UK software race? Recent data shows Xero attracting the most attention in the UK, with around half the online market share of interest. Sage and QuickBooks still hold big slices, and FreeAgent sits behind as a smaller but important player — especially since it’s focused entirely on UK businesses. So yes, Xero is the most widely used right now . But popularity alone doesn’t make it the right choice for your business. And while I’ve worked with Sage Business Cloud in the past, I don’t offer it as a partner — I focus on Xero, QuickBooks and FreeAgent, because those three cover the vast majority of needs for small businesses. Why the differences matter Each platform has its strengths: Xero – excellent for growing SMEs, strong app integrations, widely supported by accountants. QuickBooks Online – powerful reporting and widely recognised worldwide. FreeAgent – exclusively UK-focused, simple and intuitive, with neat extras like mileage tracking and built-in self-assessment tools. Perfect for freelancers, contractors, or smaller businesses who want a friendly, all-in-one setup (and sometimes it’s included free with your bank). Why I don’t just pick one A lot of accountants push every client onto the same software, usually whatever they know best. That works fine — until a client outgrows the software, or realises they’d have been better off with something different from the start. By staying fluent in all three : I can recommend the one that actually fits your business today. I can help you switch smoothly later if your needs change. And if you come to me already using one of them, you don’t need to rip everything up and start again. So what does this mean for you? Xero may have the biggest following, QuickBooks is still a heavyweight, and FreeAgent is carving out its UK niche. But what matters isn’t who tops the charts — it’s which one makes your business easier to run. And that’s why I work with all three. What’s next? This is just the start. Over the next few weeks I’ll be taking a closer look at each of the three platforms I partner with — Xero, QuickBooks Online, and FreeAgent — to show where each one shines, where it has limits, and which businesses they’re best suited for. So whether you’re a freelancer, a growing SME, or somewhere in between, you’ll have a clearer idea of which system could make your business life easier.

UK housebuilding slowdown and what it means for businesses New data shows UK construction output saw its steepest fall since May 2020. According to the latest S&P Global Market Intelligence survey, the sector’s purchasing managers index (PMI) dropped from 48.8 in June to 44.3 in July —well below the 50 mark that separates growth from contraction. Housebuilding hit hardest Housebuilding led the decline, with its own index falling from 50.7 to 45.3 . Civil engineering also recorded a sharp fall, and commercial construction slowed. Rising unemployment, stubborn inflation, and global trade pressures—most recently Donald Trump’s new tariffs—are adding to the strain. Challenging government targets These figures cast doubt on the government’s aim to deliver 1.5 million new homes this Parliament. Industry experts say the target overestimates the sector’s building capacity. Labour shortages, higher material costs, and April’s employer National Insurance rise all add to the challenge, despite a promised £39 billion investment in social housing and planning reforms. What it means for your business A slowdown in construction ripples through the economy. Builders, trades, suppliers and professional services—right down to local retailers—can feel the effects. Slower housing delivery may also impact developers’ cashflow and financing plans, while rate changes could influence borrowing costs. The Bank of England’s recent rate cut to 4% and expectations of further easing into 2026 may offer some relief, but planning ahead is key. How I can help If your business is linked to property or construction—or relies on housing growth to drive demand—now’s the time to review budgets and forecasts. We can look at: Cashflow planning to handle slower payments or fewer projects Tax planning to make the most of current allowances and reliefs Scenario modelling to test how interest-rate changes or project delays might affect your finances A proactive review can help keep your business resilient as the housing market and wider economy adjust.  If you’d like to talk through your own numbers or explore tax-efficient ways to stay on track, get in touch.

Scaling your business: when and how to bring in outside investors Growing a business often means looking beyond day-to-day trading profits. External investment can speed up product development, help you hire key people, fund international expansion or support a merger or acquisition. The trade-off is that you’ll share ownership and work more closely with investors who expect solid plans, clear financials and measurable milestones. Before you start approaching investors, ask yourself: Why you need funding – Is it to launch a product, build a team or move into a new market? How much and for how long – What’s the true amount needed to hit your next value-step or break-even point? What you’re prepared to give up – How much control and equity are you willing to share? Investors will ask the same questions, so having answers ready will shorten negotiations and strengthen your position. What investors look for Evidence of traction and sound economics Show consistent revenue and profit trends. If you’re subscription-based, include retention and churn rates, customer lifetime value versus acquisition cost, and detailed sales cycle data. A credible plan Your forecasts should link directly to hiring needs, production capacity and sales pipeline. They must reconcile with historical accounts and bank statements. A clean ownership structure Keep your share register tidy and free of ambiguous agreements. Ensure option grants are documented and aligned with your agreed option pool. Protection for intellectual property Check that trademarks, licences and any contracts transferring IP from founders or contractors are watertight. Good governance and compliance Board minutes, shareholder consents, and clear policies (data protection, information security) will all be tested during due diligence. Regulatory readiness If your sector falls under the National Security and Investment Act, get advice early. Some deals require approval before completion. Understanding today’s market Knowing the market helps you set realistic expectations. UK smaller businesses raised £10.8 billion of equity in 2024 , across 2,048 deals , according to the British Business Bank. Angel investors remain active, with around £1.6 billion of early-stage investment in 2023/24. Technology sectors such as AI are seeing larger average deal sizes , showing where investor appetite is strongest. Choosing the right type of investor Different investors suit different growth stages: Friends and family – Quick but must be handled professionally. Angel investors – Bring experience and contacts; many invest through SEIS or EIS tax-advantaged schemes. Equity crowdfunding – Ideal for consumer brands with an engaged audience. Venture capital and growth equity – Seek rapid expansion and strong market potential. Corporate or strategic investors – Offer distribution and credibility but may come with exclusivity conditions. Family offices – Increasingly flexible, with varied diligence standards. Whichever route you take, plan early for HMRC’s SEIS and EIS incentives and set up a robust option scheme if you need to attract or retain key staff. How I help Raising outside capital isn’t just about finding the right backer. Your numbers need to stand up to scrutiny and the process must run smoothly. I help businesses by: Reviewing forecasts and business plans from an investor’s perspective Preparing financial statements and data rooms for due diligence Guiding SEIS/EIS applications and HMRC valuations for share options Advising on tax, compliance and ongoing investor reporting Getting this groundwork right helps you negotiate better terms and keep your focus on running the business. Ready to explore investment? If you’d like an investment-readiness review or a second opinion on a term sheet, get in touch. Together we’ll make sure your finances tell the strong, clear story investors want to see.

UK pay growth slows as hiring weakens What it means for your business and your finances The UK labour market is showing clear signs of cooling. According to the latest Office for National Statistics (ONS) figures, unemployment stayed at 4.7% in the three months to June – its highest level in four years – while annual pay growth slipped from 5% to 4.6% . Pay growth excluding one-off awards stayed at 5%, suggesting employers are scaling back bonuses and other incentives. At the same time, vacancies dropped by 44,000 , a fall of more than 5% from the previous quarter and the 37th consecutive quarterly decline , bringing total vacancies down to 718,000 – well below pre-pandemic levels . Sector pressures and hiring slowdown The finance and business services sector, where bonuses often make up a significant part of pay, saw the weakest annual regular pay growth at just 3.1% . Surveys by the Chartered Institute of Personnel and Development show only 57% of private sector employers plan to recruit in the next three months , compared with 65% last autumn . Young jobseekers are feeling this drop in hiring intentions most sharply. Wider economic signals The Bank of England has flagged signs of easing pay pressures and a softer labour market. It recently cut interest rates by a quarter point to 4% , but further cuts aren’t expected immediately. Markets had already anticipated a slowdown in both pay growth and recruitment. What this means for small businesses For business owners, these figures carry a few important implications: Recruitment and retention: A cooler labour market may make it easier to hire, but competition for skilled staff in key roles remains. Wage budgeting: Slower pay growth provides an opportunity to revisit salary forecasts and cashflow plans. Cost management: Even with easing wage pressure, employment costs (including National Insurance and pensions) remain significant.  I help clients review payroll, recruitment budgets and cashflow so they can plan with confidence as economic conditions shift. Need to rethink your staffing or wage strategy? Let’s review your numbers and make sure your business is ready for what’s next. Get in touch to discuss your business plans and staffing costs.

The UK Government has recently unveiled a new package of measures designed to support small businesses, tackling some of the long-standing challenges that make running a business harder than it needs to be. Professional bodies, including the Chartered Institute of Management Accountants (CIMA) and the Institute of Chartered Accountants in England and Wales (ICAEW), have welcomed the plan, which looks set to bring meaningful changes in areas that matter most to small firms. Tackling cashflow and late payments One of the biggest challenges for small businesses is late payment. It’s estimated that overdue invoices cost the UK economy £11 billion every year. The Government has pledged to legislate against this issue to help protect smaller firms and improve cashflow. Cutting costs and regulation The plan also includes a target to reduce regulatory costs for businesses by 25%. For many small firms, compliance and admin create a huge time burden – so even a partial reduction could free up valuable time and money. Access to finance Support is also being boosted through finance schemes: Start-Up Loans : More businesses will be able to access funding and mentoring through the expanded scheme, which has already helped over 69,000 businesses get off the ground. British Business Bank : The Growth Guarantee Scheme is being extended, and the ENABLE programme will see its capacity raised from £3bn to £5bn. Support for high streets There will be permanent reforms to business rates, with lower multipliers for retail, hospitality and leisure properties. On top of this, up to 350 communities will receive targeted funding to strengthen local economies. Skills, apprenticeships and technology The Government is also investing £1.2bn into apprenticeships and skills, with a focus on helping small businesses adopt new technologies – something that could make a big difference to productivity and long-term growth. Other measures The Business Growth Service is being reintroduced to provide tailored support. UK Export Finance lending capacity will rise from £60bn to £80bn, giving small businesses more opportunities to trade internationally. Final thoughts This package is being seen as a strong signal of support for small businesses – and while the details will matter, any step that makes it easier to manage cashflow, cut costs, and access growth opportunities is worth paying attention to. As always, the way these changes affect your business will depend on your sector, your size, and your goals. If you’d like to understand how your business can make the most of the support on offer, let’s have a chat. 👉 Talk to me about your small business today.

When it comes to investing, markets will always rise and fall — but your goals usually don’t change. Whether you’re building towards retirement, putting something aside for your children, or making sure you’ve got a buffer for the unexpected, managing risk is about giving yourself the best chance of success without being knocked off track by avoidable shocks. The 2025/26 tax year hasn’t changed the main allowances for ISAs and pensions, but how you use them can make a big difference to protecting your wealth. Below, I’ll share practical steps for keeping your portfolio balanced, tax-efficient, and aligned with your goals. Start with a clear plan Define your goals and timeframe: What’s this money for? A house deposit in three years? Retirement in 20? The shorter the timeframe, the more cautious your portfolio needs to be. Set your risk level in advance: Think about both your capacity (what you could afford to lose without derailing your plans) and your tolerance (how you’d feel if markets suddenly dropped). Ring-fence cash needs: Always keep 3–6 months of essential spending in easy-access savings. This way, you won’t need to dip into investments during a downturn. Simple, broad index funds or ETFs covering global equities and high-quality bonds are a solid starting point. Avoid putting too much into one share, sector, or theme unless you’re comfortable with the extra risk. Diversify sensibly Spreading your investments reduces the impact of any single holding. Some key ways to diversify: Assets: Mix growth assets (like equities) with defensive ones (bonds, cash). Regions: Don’t stay too UK-heavy — global funds help spread risk across economies and currencies. Issuers: In bonds, balance UK gilts with corporate bonds. Currencies: Equities are usually unhedged, adding some volatility, while many bond investors prefer sterling-hedged funds to reduce currency risk. A diversified “core” portfolio behaves more predictably, while smaller “satellite” positions can add interest without increasing overall risk too much. Make the most of tax wrappers Tax-efficient accounts aren’t just about saving money — they make it easier to manage risk because you can rebalance and compound without tax drag. ISAs Allowance: £20,000 for 2025/26 (unchanged). Types: Cash, Stocks & Shares, Lifetime (£4,000 sub-limit), Junior ISAs (£9,000). Benefit: Interest, dividends, and gains are all tax free. Rebalancing inside an ISA won’t trigger CGT. Pensions Annual allowance: £60,000 (subject to tapering if your income is very high). Carry-forward: Use up to three years of unused allowances. Tax-free lump sum: Capped at £268,275 for most people. Tax treatment: Contributions usually qualify for tax relief and grow free of UK income and CGT. Other allowances to remember Personal Savings Allowance: £1,000 (basic rate), £500 (higher rate). Dividend allowance: £500. Capital gains allowance: £3,000. Using wrappers first helps you control costs, rebalance more effectively, and shelter more from tax. Bonds, cash and inflation Interest rates: The Bank of England cut the rate to 4% in August 2025. Bond values can move a lot when rates change, especially long-dated bonds, so check your portfolio’s duration. Inflation: CPI was 3.6% in the year to June 2025 (CPIH at 4.1%). Inflation eats into both cash and bond returns, so keep your mix under review. Cash: Keep enough for short-term needs, spread across institutions for FSCS cover (£85,000 per person, per bank). Too much cash over the long term risks losing out to inflation. Keep costs under control Fees compound just like returns, so keep them as low as possible: Use straightforward, broad funds where you can. Avoid complex products unless you understand the risks and keep them small in your portfolio. Rebalance once a year (or when holdings drift significantly) to keep risk levels in line with your plan. Protect what you have FSCS protection: £85,000 per bank for deposits; up to £1m for six months for certain life events. For investments, cover is £85,000 if a provider fails, but not against market falls. Operational checks: Always use FCA-authorised providers and enable security protections like two-factor authentication. Currency: A mix of unhedged global equities and mostly sterling-hedged bonds works for many UK investors. Behaviour and discipline matter Markets move quickly, and it’s easy to be swayed by headlines. A few golden rules: Automate contributions (monthly investing smooths out entry points). Write down your rules for what you’ll do if markets fall by 10%, 20% or 30%. Keep short-term spending separate from long-term investing. In retirement, hold a 12–24 month cash buffer to cover withdrawals. A repeatable checklist Confirm goals and timelines. Keep 3–6 months of spending in cash. Map your portfolio to your risk level. Max out ISAs and pensions first. Keep costs low with simple funds. Rebalance annually. Monitor allowances and tax dates (31 Jan, 31 July, 6 April). Spread deposits for FSCS protection. Wrapping up Managing risk in your portfolio isn’t about avoiding losses altogether — it’s about being prepared, spreading investments sensibly, and using the tax system to your advantage. With a clear plan, discipline, and regular reviews, you can protect your wealth while giving it the best chance to grow. If you’d like help reviewing your portfolio or checking your allowances, get in touch – I’d be happy to walk you through the numbers.

HMRC has begun a letter campaign aimed at businesses that may have made mistakes when calculating corporation tax marginal relief. If you receive one of these letters, it’s important to act quickly: you must reply within 30 days, even if you believe your return is correct. Ignoring it could trigger a compliance check and potentially lead to penalties. What’s the issue? The focus is on companies with associated companies — that is, businesses that share ownership or control links. Having associated companies reduces the thresholds for marginal relief, meaning some businesses may have underpaid corporation tax without realising it. HMRC’s wording is direct: “We have information that shows your company has associated companies, but hasn’t declared them when claiming marginal relief. Having associated companies reduces the taxable profit limits for claiming marginal relief. This means your company may owe more corporation tax.” A quick reminder on marginal relief Since April 2023: Profits above £250,000 are taxed at 25% . Profits below £50,000 are taxed at 19% . Anything in between benefits from marginal relief , which smooths the jump between the two rates. Where associated companies exist, those thresholds (£50,000 and £250,000) must be divided proportionately, which reduces the scope for relief. What to do if you’re affected Review your corporation tax returns for periods from April 2023 onwards. If an error is within 12 months of filing, you can amend your return online. If it’s outside that window, HMRC recommends making a voluntary disclosure. Above all, don’t ignore a letter — a swift, accurate response avoids bigger problems later. HMRC will keep issuing letters until October 2025 , so now’s the time to double-check your calculations. My take Tax is complicated enough without HMRC knocking on the door. If you’re unsure whether associated companies apply to you, or whether your marginal relief claims are correct, it’s best to get professional advice. A quick review now could save a costly compliance check later. 👉 Talk to me if you’d like me to review your corporation tax filings and make sure everything stacks up.

Energy bills drop, but concerns remain. Energy bills are finally starting to come down. Ofgem has reduced the price cap, which means around 21 million households across England, Scotland and Wales will see a drop in costs. For the average dual-fuel household, that’s a 7% reduction — about £11 a month — bringing annual bills to around £1,720. On the surface, that’s good news. But there are still reasons to be cautious. With colder, darker months ahead, usage will naturally rise and push bills higher again. And while fixed tariffs can offer payment certainty — potentially saving around £200 a year — they only secure the unit rate. How much you use still makes all the difference. For businesses, this matters just as much as it does for households. Energy costs feed directly into overheads, cashflow and profitability. If you’re budgeting for the months ahead, it’s worth reviewing whether fixed rates, efficiency measures or even just tighter monitoring of usage could make a difference to your bottom line. Global uncertainty is keeping wholesale prices volatile, and although another small fall is forecast in October, there are no guarantees. My advice? Treat any savings now as a chance to plan ahead rather than assuming the pressure is over. If you’d like to chat about how changing costs might affect your cashflow or your pricing strategy, I’m here to help.

How to Protect Your Wealth from Inflation Inflation isn’t grabbing the headlines like it did in 2022, but at 3.4% (May 2025 CPI), it’s still quietly eating away at the value of every pound you hold. Think of it this way: something that costs £1,000 today could cost around £1,034 this time next year. That “silent loss” affects your personal savings, your business reserves, and your long-term plans. The good news? There are practical ways to fight back. By using tax allowances properly, making smart use of ISAs and pensions, and putting cash where it works hardest, you can protect — and even grow — your purchasing power. Know Your Numbers Inflation chips away at spending power, but tax reliefs can do a lot of the heavy lifting when you use them fully. Here are the key 2025/26 allowances to keep in mind: Personal allowance – £12,570: tax-free income up to this level. Dividend allowance – £500: best used for higher-yielding shares or investment trusts. Capital gains tax (CGT) exempt amount – £3,000: each spouse gets their own allowance. Personal savings allowance – £1,000 for basic rate, £500 for higher rate, £0 for additional rate: at today’s savings rates, that’s a decent tax-free buffer. ISA subscription limit – £20,000: cash, stocks & shares, innovative-finance and lifetime ISAs all included. Lifetime ISA sub-limit – £4,000: plus a 25% government bonus if used for a first home or retirement. Pension annual allowance – £60,000 (with tapering possible): carry forward unused reliefs from the last three years. Marriage allowance – worth up to £252 if one spouse earns under the personal allowance. Used together, these shelters can add up. For some families, it means over £80,000 under protection before you’ve even touched taxable investing. Make Tax Wrappers Work Harder ISAs : Contributing early in the tax year means more time for growth. Over five years, that timing difference alone can add up to hundreds of pounds. Pensions : Salary sacrifice and carry-forward allowances can deliver big tax savings while building an inflation-proof income for later life. Cash : Shop around — easy-access rates are sitting at 5% in places, but many banks still pay next to nothing. For business owners, tools like corporate treasury platforms let you spread deposits across banks while keeping FSCS protection intact. Beyond Cash – Hedging Against Inflation Index-linked gilts and corporate bonds : These directly adjust with inflation. Equities : Over time, global shares have consistently outpaced inflation. A balanced portfolio can provide both growth and income. Real assets : Property, infrastructure, and commodities can all play a role — but be mindful of tax changes, especially for buy-to-let investors. Keep Your Plan on Track The strategies only work if they’re maintained. That means: Automating contributions. Tracking key dates like the new tax year. Rebalancing investments when markets move. Reviewing your borrowing to make sure it isn’t costing more than necessary. Final Thoughts At 3–4%, inflation might not feel dramatic — but over a decade it can halve the value of your money if you don’t plan ahead. With the right mix of tax wrappers, cash strategies, and inflation-linked assets, you can protect your wealth and keep your long-term plans on track. If you’d like a review of your current set-up or tailored projections for your situation, let’s have a chat.

If you’ve ever been told “no VAT receipt means no VAT claim”, you might think that’s the end of the story. It’s a simple rule, and many bookkeepers follow it. But the truth is, it’s not quite what HMRC says. Yes, a proper VAT invoice is the gold standard. It’s what HMRC expect, and it’s always my first request when I’m working on your accounts. But HMRC’s own guidance makes it clear that in some cases, they’ll accept other proof — as long as it convincingly shows that VAT was paid to a genuine supplier for business purposes. So if that invoice has gone missing, all may not be lost. What Counts as “Other Proof”? It could be things like: A supplier statement or delivery note Bank or card statements showing the payment Email confirmation from the supplier What HMRC want to see is that: You actually received the goods or services. They were genuinely for your business. VAT was charged and paid. If we can show that clearly, a claim can still go through — especially when there’s no suggestion of fraud. Why This Matters for You A blanket “no invoice, no claim” approach can mean you end up paying more VAT than you should.I prefer to take a more practical, case-by-case view: encouraging you to keep all the right documents, but also using my professional judgement when something’s missing. That doesn’t mean being careless — it means understanding the rules well enough to make them work for you, without crossing any lines. The Bottom Line Losing a VAT invoice doesn’t always have to be a deal-breaker. With the right evidence and a careful approach, you may still be able to claim. It’s about having someone on your side who knows the rules, knows the grey areas, and knows when it’s worth fighting your corner. And that’s exactly how I work for my clients. Quick Checklist: What to Keep for Your VAT Records If you want to make VAT claims as smooth as possible, here’s what to hold on to: VAT invoices from your suppliers (paper or digital copies are fine) Till receipts showing VAT separately or marked “VAT receipt” Supplier statements (especially for regular accounts) Proof of payment — bank statements, card receipts, PayPal records Delivery notes or order confirmations The more complete your records, the easier it is to claim — and the stronger the case if HMRC ever ask questions. Tip: My clients use Dext to snap receipts on their phone or forward invoices straight from their email. Everything lands in one secure place, ready for bookkeeping — no more crumpled paper or missing VAT details.

The Bank of England governor, Andrew Bailey, has warned that the UK jobs market is showing early signs of slowing down. Speaking at a British Chambers of Commerce event, he pointed to two main drivers – higher employer National Insurance contributions (NICs) and rising overall costs. In short, businesses are reacting by scaling back recruitment and holding back on pay rises. For many employers, this isn’t about wanting to cut back – it’s about protecting cashflow in a tougher environment. The Bank’s Monetary Policy Committee will be watching closely when it meets in August to decide on interest rates, currently 4.25%. Bailey hinted he’s already seeing more evidence of companies adjusting staffing and pay since the NIC changes came into force earlier this year. The wider economic picture is mixed. The UK economy grew by 0.7% in the first quarter of 2025, but April saw a 0.3% dip. PAYE data shows more than 100,000 jobs lost in May – the steepest monthly drop since the first COVID lockdown. Wage growth in the private sector is also easing, down to 5.1% in the three months to April from 5.9% earlier this year. Some members of the Bank’s rate-setting committee are already pushing for cuts, with markets expecting rates to be down to around 3.75% by the end of the year. But Bailey’s message was clear – growth remains weak and global uncertainty, including new US trade measures, is adding to the pressure. What this means for business owners Slower job growth and pay restraint can create both challenges and opportunities. If you’re an employer, it’s a good time to: Review your staffing plans for the next 6–12 months. Assess the impact of higher NICs on your budget. Keep an eye on interest rate movements – they can affect borrowing costs, investment decisions, and customer spending power. I help small businesses understand these shifts and make informed decisions so they’re not caught out by sudden changes in the economy. If you’d like to talk through how these changes could affect your business, get in touch.

Is it time to rethink the high street? We all know our high streets have been through a tough few years – and now, new research from the Centre for Cities puts a pretty big number on what it might take to turn things around: up to £5 billion . Some of the worst-hit places include Bradford, Newport and Blackpool, where shop vacancy rates are more than double what we see in London. But the issue isn’t just about empty units or even high business rates – it’s about local spending power, and how many people actually live in and use those town centres day-to-day. Places like London, Edinburgh and York have managed to reinvent their high streets with food, drink, leisure and tourism – and the numbers show it. In some of the wealthiest cities, £1 in every £4 is spent on eating out, compared to just £1 in £10 in less affluent towns like Stoke or Wigan. It’s not just about income – it’s also about population density and footfall. Cities with more shops than people (relative to size) tend to struggle. Add in the impact of out-of-town retail parks, changing work habits and the rise of online shopping, and it’s clear our high streets need more than just a tweak to business rates. That said, if you run a business on the high street or in a town centre, you still need to make the numbers work now – not just wait for long-term investment. This is where I come in. I help small business owners: Make the most of current tax reliefs and business rate exemptions Understand how changes to footfall and spending trends affect their bottom line Restructure their offering (or their finances) to stay competitive Assess the viability of new locations or hybrid models (like part-online, part-in person) If you’re wondering how your local high street is shaping up – or what all this means for your own business plans – let’s talk. It could be the difference between surviving, and thriving.

Keeping Your Wealth Ahead of Inflation: Practical Tips That Work Even though inflation isn’t as sky-high as it was in 2022, it’s still quietly chipping away at the value of your money. The Consumer Price Index was 3.4% in May 2025, which might not sound like much—but over time, it adds up. If something costs £1,000 today, it’ll likely cost £1,034 a year from now if inflation keeps ticking along at this pace. Whether you’re a business owner, investor, or just trying to make your money work harder, this is something worth paying attention to. The good news? You’ve got tools at your disposal to help beat inflation—especially if you use tax allowances wisely and keep your savings and investments organised. Let’s break it down. 📌 Know Your Tax-Free Limits Tax allowances can do a lot of the heavy lifting when it comes to protecting your money. The UK tax system gives you several shelters, from ISAs to pensions, that can help you grow your savings tax-free or tax-efficiently. Here are a few of the big ones for 2025/26: Personal Allowance – £12,570 Income below this is tax-free. Starts to taper once income exceeds £100,000. Dividend Allowance – £500 Use this for high-yielding shares or investment trusts to keep income tax-free. Capital Gains Tax (CGT) Annual Exempt Amount – £3,000 Useful for gradually realising investment gains without triggering tax. Spouses each get an allowance. Personal Savings Allowance £1,000 for basic-rate taxpayers £500 for higher-rate taxpayers £0 for additional-rate taxpayers At a 5% interest rate, a basic-rate taxpayer can earn £1,000 tax-free (i.e., hold £20,000 in savings before paying tax on interest).  ISA Subscription Limit – £20,000 Covers cash ISAs, stocks & shares ISAs, Lifetime ISAs and innovative finance ISAs combined. Lifetime ISA Sub-Limit – £4,000 Eligible for a 25% government bonus for first-home purchases or retirement (accessible from age 60). Pension Annual Allowance – £60,000 Subject to tapering for high earners (can reduce to £10,000). Carry-forward rules allow you to use unused allowance from the past 3 years. Marriage Allowance – £1,260 transferable If one spouse earns below the personal allowance, they can transfer £1,260 to the other—worth up to £252 in tax savings. These all work together—used smartly, you could shelter over £80,000 in one year without triggering a tax bill. 📈 Make Your Cash Work Harder If you’ve got money sitting around in a low-interest account, it’s probably losing value in real terms. Here’s what I’d suggest: Immediate Access (1–3 months of spending): Use high-rate easy-access accounts – some are paying over 5% AER. Known Expenses (3–12 months): Ladder fixed bonds or explore Treasury-backed options like British Savings Bonds. Medium-Term Goals (1–5 years): Gilt-backed money-market funds or inflation-linked assets. For business owners , platforms like Flagstone and Insignis can help spread company reserves across multiple banks while staying within the FSCS protection limit. 💼 Business Tip: Use Pensions to Lower Your Tax Bill If you’re running a limited company, you can reduce your corporation tax bill and build long-term wealth by paying into your pension from the business. It’s deductible, so not only are you saving for the future—you’re cutting this year’s tax bill too. Also worth reviewing: the salary/dividend mix , especially once you’ve used up your dividend allowance. In some cases, company pension contributions give better long-term returns than taking extra dividends. 🏡 Real Assets and Investments That Track Inflation Some assets naturally keep up with rising prices: Property and infrastructure: Commercial property trusts and infrastructure funds often have inflation-linked contracts. Equities: A well-diversified share portfolio has historically outpaced inflation in the long run. Commodities: These tend to spike during inflation shocks—but they’re volatile, so keep exposure limited. If you’re unsure where to begin with investing, I can point you toward simple, diversified options (many of which can be held in ISAs or pensions for extra tax efficiency). 🧾 Keep Things Simple and Disciplined Here are a few habits I recommend to stay on top of inflation: Automate contributions to your ISA or pension—it’s like paying your future self first. Use allowances early in the tax year for maximum benefit. Rebalance your investments once or twice a year to keep risk in check. Record and review – whether it's savings rates, fund choices, or contribution history, a simple spreadsheet can go a long way. Final Thoughts Inflation might not be grabbing headlines like it did in 2022, but it’s still a silent threat to your savings and business reserves. With a few smart moves—making the most of tax wrappers, staying organised, and choosing the right mix of savings and investment—you can keep your wealth working for you, not the other way around. If you’d like help reviewing your plan, working out your allowances, or deciding what makes most sense for your business or family, I’m here to help. Get in touch, and let’s keep your finances future-ready.

The OECD (Organisation for Economic Co-operation and Development) has downgraded its forecast for the UK economy. While that might sound like something that only concerns politicians and big businesses, the truth is these shifts can ripple down and affect us all — especially small business owners. The UK economy is now expected to grow by just 1.3% in 2025 (down from 1.4%) and 1% in 2026 (down from 1.2%). These aren’t huge drops on paper, but they point to a broader picture of slowing momentum. After a promising 0.7% growth in the first quarter of this year, confidence has started to dip. Retail sales are up and down, and consumers are feeling cautious. Why does this matter? When growth slows, people tend to spend less. That impacts sales, investment, and confidence — and it also tightens the government’s purse strings. The Chancellor now faces the difficult task of balancing rising costs (think pensions, the NHS, and defence) with sluggish tax revenue. That could mean fewer support schemes or even tax changes in future budgets. The OECD’s advice? Prioritise capital investment, and go easy on day-to-day spending.That’s advice I’d echo on a smaller scale too. If you’re running a business, now’s a good time to: ✅ Review your current spending and identify any areas where you could trim or reinvest. ✅ Reassess your goals for the year and see if they still make sense in this economic climate. ✅ Start thinking ahead — what will tighter conditions mean for your customers, and how can you stay one step ahead? If you’re not sure where to start, I can help. Whether you need a second pair of eyes on your forecasts or want to chat through your options for cutting costs or planning future investment, just get in touch. Now more than ever, making confident, informed financial decisions matters.

According to the latest stats from the ONS, UK workers took nearly 149 million sick days in 2024 – that’s an average of 4.4 days off per person , slightly down on the year before, but still higher than pre-pandemic levels. The public sector continues to have the highest absence rate, while professional services (including accountancy) see far fewer days lost – perhaps unsurprising when you think about the physical and emotional demands placed on key frontline roles. The top causes? No big surprises here – colds, musculoskeletal issues and mental health continue to top the list. But what’s worth watching is the potential cost increase for small employers . With the new Employment Rights Bill on the way, statutory sick pay will become payable from day one , rather than after three unpaid days. A small change that could have a bigger impact on budgets, especially if you’re already running lean. If you’re concerned about how this could affect your payroll, forecasting, or people planning – let’s have a chat. Understanding your numbers means you can prepare properly. 👉 Get in touch to talk through your options.

Spotlight On: Making Sustainability Work for Your Business (and Your Tax Bill) If you’ve been investing in greener ways of running your business - whether that’s upgrading your premises, switching to electric vehicles, or doing your bit to cut carbon - you might be missing out on some serious tax relief. The UK tax system is now wired to encourage sustainable action, and there are several reliefs that could take a decent chunk off the cost of your eco investments. Some are permanent, others are time-sensitive, so it’s worth understanding what’s available and when to act. Here’s a quick run-through of the key tax breaks available this tax year - and how I can help you make the most of them. Why sustainability makes financial sense We’re not just talking about helping the planet. There’s growing consumer demand for greener businesses, and government-backed incentives to support those who are getting on board: Low-carbon businesses generated over £69bn of turnover and 272,000 jobs in 2022. Environmental taxes brought in £52.5bn in 2023. Battery-electric car sales are up 25.8% year on year (as of May 2025). Sustainable investment isn’t a niche trend - it’s mainstream. And the tax system’s catching up. Capital allowances you can claim this year Full Expensing (Companies Only) Companies paying Corporation Tax can deduct 100% of the cost of qualifying plant and machinery (things like solar panels, EV vans, heat pumps). That’s 25p off your tax bill for every £1 you spend—pretty powerful. ➡️ Tip: Keep supplier invoices and product specs that prove the item is energy-efficient (e.g. MCS-certified heat pump). Annual Investment Allowance (AIA) For unincorporated businesses or if your company’s maxed out full expensing. It covers up to £1 million of spend and works well for things like lighting or wiring during property upgrades. Zero-emission cars, vans and charge points You can claim 100% first-year relief on these up to March 2026 (or April 2026 if you're not a company). ➡️ Benefit in kind rate: Still just 3% for EVs in 2025/26—way below the 37% rate on high-emission cars. Running an EV salary-sacrifice scheme? Let me know as soon as you have interest so I can help you forecast the employer NI saving. Property and land incentives Land remediation relief Got contaminated or derelict land? You might get 150% tax relief or a cash credit worth 16% of costs—great if you’re dealing with asbestos, knotweed, or crumbling buildings. Structures & Buildings Allowance (SBA) A solid 3% straight-line deduction for new or upgraded commercial premises—even if they include sustainable features like green roofs or high-performance insulation. Freeports & Investment Zones If your business is based in one of these “special tax sites”, you could unlock: 100% first-year plant & machinery relief 10% SBA on new buildings Stamp Duty and Business Rates relief ➡️ Important: Let’s confirm you’re inside the zone before signing contracts—we can map it out together. R&D Tax Relief (now streamlined) From April 2024, there’s a single scheme offering a 20% credit on eligible R&D spend—worth 15–16.2% net depending on your tax rate. Innovations like recyclable packaging, energy-saving software or low-carbon materials all count. ➡️ Tip: Keep a simple monthly log of what your team is working on—this makes year-end claims smoother and more robust. Other ways to save Climate Change Levy Relief – Up to 92% off electricity and 89% off gas if you sign a climate agreement. VAT Zero-Rating – Still in place for solar panels, heat pumps, insulation, and more until March 2027 . Grants & Schemes – These change often, but the Boiler Upgrade Scheme (worth £7,500) and local net-zero funding are good places to start. Let me know if you’re applying and I’ll help with the tax side. How I can help From checking you’re within your limits to handling paperwork, grant interactions and planning ahead, I make sure the numbers—and the timing—work in your favour. Here's what I do for you: ✅ Track allowances and flag when you're close to a threshold ✅ Check grant/tax interactions ✅ Run profit forecasts to plan major purchases smartly ✅ Prepare R&D claims and keep them HMRC-compliant ✅ Record and categorise green assets for future proofing Next steps Green upgrades can be a big investment—but they don’t have to come with a big tax bill. If you’re planning to improve your premises, invest in EVs or launch an innovation project, get in touch early. The sooner we talk, the more options we’ll have to make your investment tax-smart as well as future-proof. 📞 Let’s chat about how to put these reliefs to work for your business.