News

Are you selling goods or services on a digital platform?
04/09/2025 - More...
From 2024, platforms like eBay, Vinted and Airbnb must report seller data to HMRC, so check your tax responsibilities. If you sell goods or services on a digital platform it is important to understand your tax responsibilities. This can apply whether your sales are a part-time income source or your main income. Even casual selling online

Why your tax code might change
04/09/2025 - More...
The letters in your tax code indicate whether you are entitled to the annual tax-free personal allowance. These codes are updated each year and help employers calculate how much tax should be deducted from your salary. For the current tax year, the basic personal allowance is £12,570. The tax code corresponding to this amount is 1257L,

What counts as working time for minimum wage purposes
04/09/2025 - More...
Employers must ensure they are paying staff at least the National Minimum Wage (NMW) or National Living Wage (NLW). The NMW and the NLW are the minimum legal amounts that employers must pay their workers. The latest NMW and NLW rates took effect on 1 April 2025. The current hourly rate for the NLW is £12.21. For those aged 18 to 20, the

Holding over gains on gifts
04/09/2025 - More...
Gift Hold-Over Relief is a form of Capital Gains Tax (CGT) relief that allows you to defer paying CGT when certain assets, such as qualifying shares, are given away or sold for less than their market value, typically to benefit the recipient. Instead of paying tax at the time of the gift, the gain is "held over" and passed on

Gifts with reservation of benefit
04/09/2025 - More...
Gifting assets can cut inheritance tax, but traps like “gifts with reservation of benefit” may undo the plan. The majority of gifts made during a person's lifetime are not subject to tax at the time they are made. These lifetime transfers are known as "potentially exempt transfers" (PETs). A PET becomes fully exempt

VAT late filing penalties
04/09/2025 - More...
New rules mean late VAT filings and payments now trigger points, fines and interest charges. The VAT late filing penalties regime changed for accounting periods beginning on or after 1 January 2023. Under the new system, there are now distinct and separate penalties for late filing of VAT returns and for the late payment of VAT

Balancing access to justice and abuse of process
02/09/2025 - More...
An extended civil restraint order (ECRO) was issued against a prolific Employment Tribunal (ET) litigant for presenting repeated and baseless claims. A Mr. Khan has been described as a prolific litigant, having issued no fewer than 42 largely unsuccessful tribunal claims since 2017. These various failed claims have typically involved

Cash flow resilience and access to funding
01/09/2025 - More...
Running a small business often feels like walking a financial tightrope. Cash can be flowing in nicely one month, only to dry up the next. With interest rates higher than they were for years and lenders tightening their checks, access to money has become a bigger challenge. That is why focusing on cash flow resilience is so important

Keeping your best people with flexible working
01/09/2025 - More...
For many small business owners, finding and keeping good staff is one of the biggest headaches. Recruitment is costly, time-consuming and uncertain. That is why focusing on staff retention is one of the smartest moves you can make. People stay where they feel valued. Pay matters, of course, but many small businesses cannot simply compete

What are the current Income Tax bands and allowances?
28/08/2025 - More...
Income Tax applies to earnings, pensions, savings, dividends and more, with different bands across the UK nations. Individuals can be liable to Income Tax at any age. There are special rules to stop parents avoiding tax by putting assets into their children’s names. The tables below shows the tax rates you pay in each band if you have a

Corporation tax roadmap
28/08/2025 - More...
With a £50bn shortfall looming, the Chancellor may need to revisit last year’s Corporation Tax roadmap commitments. As this year’s Autumn Budget approaches, it is an interesting time to revisit the Corporation Tax Roadmap published alongside last year’s Budget on 30 October 2024. The roadmap sets out the government’s plans for

MTD for IT taxpayer exemption
28/08/2025 - More...
From April 2026, the self-employed and landlords must use MTD for IT, but exemptions may apply in limited cases. If you are self-employed or a landlord with income over £50,000, you will need to prepare for digital record keeping, quarterly updates and a new penalty system. While most affected taxpayers will be required to comply, there

What if your pension contributions are excessive?
28/08/2025 - More...
You can claim tax relief on pension contributions up to 100% of earnings, but exceeding the annual allowance may trigger charges. Tax relief is paid on pension contributions at the highest rate of income tax paid. The first 20% of tax relief is usually automatically applied by your employer with no further action required if you are a

Unused pension funds and IHT from April 2027
28/08/2025 - More...
From 6 April 2027, new measures first announced in the Autumn Budget 2024 will come into force. These changes will bring most unused pension funds and death benefits into the scope of Inheritance Tax (IHT) from April 2027. This represents a major change to the tax treatment of pensions on death and will significantly broaden the IHT net

Fixing problems with running payroll
28/08/2025 - More...
Employers must report pay and deductions correctly to HMRC, but errors can usually be fixed in your next FPS. Employers need to use payroll software or other payroll services to record employees pay, deductions and national insurance contributions on or before each payday. They also need to consider other deductions such as pension

Why increasing an overdraft to fund losses is a dangerous game
26/08/2025 - More...
Many business owners see their bank overdraft as a flexible safety net. When cash runs short, the temptation is to ask the bank for a higher limit to keep things moving. While this can provide breathing space in the short term, relying on overdrafts to cover trading losses is one of the riskiest financial strategies a business can

How to gain a competitive advantage
26/08/2025 - More...
In every market, businesses face competition. Some competitors may be larger, others may have deeper pockets, but gaining a competitive advantage is not always about size or spending power. It is about finding ways to stand out, deliver value, and build loyalty in ways that others cannot easily copy. The starting point is understanding

Company director disqualification
21/08/2025 - More...
Company directors have a legal duty to act responsibly and in the best interests of their business. If a director fails to meet these responsibilities, they can face disqualification from acting as a company director for up to 15 years. Disqualification can result from ‘unfit conduct,’ which includes actions such as trading while

What happens if you cannot pay your tax bill?
21/08/2025 - More...
If you cannot pay your tax bill, it’s crucial to contact HMRC as soon as possible. They may offer support through a Time to Pay arrangement, allowing you to repay your debt in instalments based on your financial situation. Ignoring the debt can lead to enforcement action, including visits to your home or business by HMRC or the use of

What is the pension’s Money Purchase Annual Allowance?
21/08/2025 - More...
The Money Purchase Annual Allowance (MPAA) is a pension rule designed to prevent individuals from gaining double tax relief on pension contributions. It targets situations where someone withdraws money from their defined contribution pension pot and then reinvests it, effectively receiving tax relief on the same funds twice. The normal

When dividends cannot be paid
21/08/2025 - More...
Under the Companies Act 2006, dividends can only be paid from realised profits, never from capital, no matter what a company’s Articles of Association say. Dividends can only be paid by a company out of profits available for distribution, not from capital, even if the company’s Articles of Association suggest otherwise. This rule is

Using the 159 helpline
21/08/2025 - More...
If a call from your bank feels suspicious, just hang up and dial 159 to be connected safely to your bank’s fraud team. The 159 helpline was launched in September 2021. The helpline is designed to help consumers quickly and safely reconnect with their bank when they receive a suspicious or unexpected call about a financial matter. 159 now

Applying for Home Responsibilities Protection
21/08/2025 - More...
Did you know a missing Home Responsibilities Protection (HRP) record could reduce your State Pension, but you may still have time to put it right. Home Responsibilities Protection (HRP) was a scheme designed to help individuals, mainly those with caring responsibilities, to build entitlement to the basic State Pension by reducing the

Tax Diary September/October 2025
21/08/2025 - More...
1 September 2025 - Due date for corporation tax due for the year ended 30 November 2024. 19 September 2025 - PAYE and NIC deductions due for month ended 5 September 2025. (If you pay your tax electronically the due date is 22 September 2025) 19 September 2025 - Filing deadline for the CIS300 monthly return for the month ended 5