News
| 29-12-2025
With 2025 coming to a close, you may already be starting to reflect on how the year unfolded in your business. Your expectations may have been exceeded in some areas.
| 16-12-2025
With the festive season underway and household budgets feeling the pressure, it may be useful to know that if you are worried about paying your tax bill in one
| 16-12-2025
The Government has announced a £725 million package of reforms aimed at increasing apprenticeship and training opportunities for young people. While much of the announcement centres on tackling youth
| 16-12-2025
The latest Budget was packed with policy announcements, but according to the Office for Budget Responsibility (OBR),
| 09-12-2025
If your business is based in England and Wales, you can now view the future rateable value of your property. The Valuation Office Agency (VOA) has completed
| 09-12-2025
The government has announced plans to introduce a new levy, the High-Value Council Tax Surcharge (HVCTS), for owners of residential properties in England
| 09-12-2025
The deadline for filing your 2024/25 Self Assessment tax return is fast approaching. You must submit your return and pay
| 09-12-2025
The recent Budget confirmed that dividend tax rates will increase from April 2026. The ordinary and upper rates of dividend tax will both rise by 2%.
| 03-12-2025
Some self-employed taxpayers who filed their 2024/25 self-assessment tax return may have been incorrectly asked to pay class 2 national insurance contributions (NIC) on their SA302
| 03-12-2025
After weeks of speculation about what Budget 2025 would contain, the Chancellor was unexpectedly upstaged when the Office for Budget Responsibility (OBR) accidentally published their report
| 25-11-2025
Legislation has been passed by Parliament that defines which properties are eligible for the new Retail, Hospitality and Leisure (RHL) business rates multipliers which come into force on 1 April 2026.
| 25-11-2025
The government has confirmed how the new Renters’ Rights Act will be phased in, setting out a three-phase approach that runs from May 2026 through to the end of the decade.
| 25-11-2025
As the festive season approaches, HM Revenue & Customs (HMRC) is urging anyone who earns money from Christmas crafts, seasonal market stalls, or selling festive items to check whether they need
| 25-11-2025
For many sole traders and small business owners, reviewing their accounting system only happens when something forces the issue. For instance, many sole traders are currently looking at whether their accounting system meets
| 25-11-2025
The Prudential Regulation Authority (PRA) has confirmed that the Financial Services Compensation Scheme (FSCS) deposit protection limit will increase from £85,000 to £120,000 from the start of December.
| 18-11-2025
As the festive season approaches, employers are being reminded of their responsibility to take reasonable steps to prevent sexual harassment at work events, including Christmas parties.
| 18-11-2025
The Information Commissioner’s Office (ICO) has opened a consultation on new guidance that sets out how it investigates potential data protection breaches and takes enforcement
| 18-11-2025
The Intellectual Property Office (IPO) has confirmed plans to raise its fees by an average of 25% from 1 April 2026, subject to parliamentary approval. The change will affect applications and renewals for patents, trademarks, and designs.
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With 2025 coming to a close, you may already be starting to reflect on how the year unfolded in your business.
Your expectations may have been exceeded in some areas. Perhaps you found a new source of revenue that grew faster than you anticipated, or you had a new customer relationship that really took off. On the other hand, you might have found you were limited by rising costs, difficulties in finding staff, or changes in what your customers expect.
The economy itself has been far from predictable. While inflation does seem to have eased slightly in recent months, higher wage costs and shortages in skills have been significant factors for many businesses.
You may also be thinking about how the business has contributed toward your broader goals. For instance:
- Did it grow in the ways you planned?
- Did it give you the flexibility, resilience or capacity to pursue new opportunities?
These questions perhaps show where the business supported your ambitions, or where it might have held you back.
With these thoughts in mind, the festive break may provide a natural opportunity to consider some of your strategic priorities in 2026.
What can you do to build on this year?
For instance, did you notice any patterns emerging over the past twelve months on which of your products or services truly delivered growth for your business? Or which customer or client relationships were the most valuable? Where did your business feel most stretched by things like rising costs, difficulties in finding staff, or changes in customer expectations?
Your observations may well help you in thinking about what your priorities could be for the year ahead.
How can you maintain resilience in the business?
The wider economic environment and day-to-day pressures are likely to continue shaping the decisions you make in 2026.
Have you found areas where the business has shown resilience in dealing with rising costs, maintaining customer loyalty, or responding to opportunities quickly?
These are strengths you can really continue to build on.
What could be your goal for 2026?
You might be thinking about growing your business in 2026. For instance, reaching new customers in different areas, adding to your team, or investing in new technology to make your business run more efficiently.
Or maybe you see value in consolidating the gains you made in 2025, concentrating on what has delivered the strongest returns and take a leaner, more focused approach in 2026.
However you are thinking at this time of year though, we hope that you are able to thoroughly enjoy any time off you have coming. 2025 has been a year of hard work and any rest you get is well deserved.
We look forward to supporting you in 2026, helping you to build on the progress you have made, and seeing what the new year brings for your business.
With the festive season underway and household budgets feeling the pressure, it may be useful to know that if you are worried about paying your tax bill in one lump sum, you may be able to spread the cost.
Although the deadline to file your tax return and pay any tax isn’t until 31 January 2026, acting early can make the process far smoother – especially if you need extra time to pay.
HM Revenue & Customs (HMRC) Time to Pay service allows Self-Assessment taxpayers to set up a monthly instalment plan once their tax return has been filed.
Since 6 April 2025, almost 18,000 people have already arranged a payment plan, making use of the flexibility to manage their tax bill without falling into late-payment penalties.
Here are some key points to be aware of:
- If you owe £30,000 or less, a plan can be set up online without calling HMRC.
- Your tax return must be filed before you can apply.
- The amount you pay is specific to your financial circumstances.
- You will still pay interest on the outstanding amounts, so the quicker you can pay, the better.
If it’s needed, HMRC’s Time to Tap can offer some welcome breathing space.
If you’re unsure about how this could apply to you, how to plan for your January tax bill, or what the Time to Pay option might look like in practice, feel free to get in touch. We can help you review your position early, so you have time to make the right decisions for your business.
See: https://www.gov.uk/government/news/hmrc-offers-time-to-help-pay-your-tax-bill
The Government has announced a £725 million package of reforms aimed at increasing apprenticeship and training opportunities for young people. While much of the announcement centres on tackling youth unemployment, there could be benefits for small and medium-sized businesses.
Below is an overview of what’s changing and how it could influence your workforce planning over the next few years.
Fully Funded Apprenticeships for Under-25s at SMEs
One of the headline changes is the removal of the 5% co-investment rate for apprentices under 25 at small and medium-sized employers.
This means training costs for eligible apprentices will be covered entirely by government funding.
If you have previously avoided apprenticeships due to the training and assessment costs, it may be worth reconsidering them as they may be a good way to fill entry-level vacancies and develop talent internally.
Potentially More Local Support in Finding Apprentices
The announced funding includes a £140 million pilot that will give Mayors the ability to connect young people with apprenticeship opportunities.
Of course, how effective this will be depends on how the scheme is implemented locally, but this should translate to more support for you in finding applicants.
Foundation Apprenticeships and Short Courses
Additional foundation apprenticeships are due to be rolled out in sectors such as retail and hospitality.
Foundation apprenticeships were first introduced in May 2025 and are designed to bridge the gap between formal learning in school or college and the workplace helping make young people work-ready. These may be useful if you find you currently have to invest substantial time in early training.
Beginning in April 2026, the possibility of short courses will be introduced to apprenticeships allowing more flexible training options that better suit you. A new Level 4 apprenticeship in AI will also be introduced, which could help you develop skills in your workforce.
In review
Clearly, it will take time for these changes to have a meaningful effect, but it could be well worth reviewing whether fully funded under-25 apprenticeships could support your recruitment needs.
There could be further news on apprenticeships over the coming months as the government has said that the Department for Work & Pensions and Skills England will be working with businesses on the right balance to further boost apprenticeship starts for young people while delivering the right flexibilities for businesses.
See: https://www.gov.uk/government/news/50000-more-young-people-to-benefit-from-apprenticeships-as-government-unveils-new-skills-reforms-to-get-britain-working
The latest Budget was packed with policy announcements, but according to the Office for Budget Responsibility (OBR), these policies will not really change the UK’s growth outlook over the next five years.
Compared with the forecast it prepared in March 2025, the OBR has lifted its expectation for growth this year but then marks it down every year through to 2030. If you were hoping for a clearer sense of the economy’s direction after the Budget, the message is mixed at best.
No Further NI Increase
One point of relief from the Budget was what didn’t happen. After last year’s significant rise in employers’ National Insurance contributions, there were no major new tax costs for employers. However, meaningful pro-business measures were also limited and could leave you wondering where business growth is going to come from.
Even businesses in sectors that did receive some targeted help, including retail and hospitality, are warning that their overall cost base is still set to rise.
Two areas – business rates and wage costs – seem to be standing out.
Business Rates: Relief, But Maybe Still Higher Bills
Business rates remain a major pressure point for high street businesses, with many seeing their rateable value increase due to the 2026 revaluation.
Many shops, pubs and hospitality businesses will have their rates calculated using a lower percentage of their property value; however, taken in combination with higher valuations many businesses are braced for higher bills.
For cash flow planning, this is something to review sooner rather than later.
Wage Costs: Good for Workers, Harder for Employers
National minimum wage increases will help workers, particularly those who are younger, but it means further cost pressure on employers already managing tight margins.
This may impact your recruitment or staffing plans or mean you need to look at raising prices to cover the additional costs.
Salary Sacrifice Cap for Pensions
The £2,000 cap on pension salary sacrifice arrangements also attracted attention. Amounts that are contributed above the cap will become subject to employer and employee national insurance contributions, making these arrangements much less desirable.
Concerns have been raised about the impact this change could have on business investment and pension funding.
It is worth noting that these changes are not proposed to take effect until 6 April 2029. So, there is still time for employers and employees to take advantage of the current rules.
If you would like advice on how a salary sacrifice arrangement for pension contributions works, please get in touch and we would be happy to provide you with personalised advice.
Wider Access to Investment Incentives
One measure that may help some growing businesses over the longer term is the expansion of the Enterprise Investment Scheme (EIS).
EIS schemes provide tax incentives to investors who invest in smaller companies, and from April 2026, investment will be allowed into businesses that have grown beyond the previous size limits.
What to Consider Now
While the Budget’s forecasts may not paint an especially bright picture for national growth, your own plans don’t have to rise or fall with the wider numbers. Many businesses continue to expand by focusing on the areas they can influence day-to-day. You can do the same.
Some sensible steps to consider based on the Budget measures would include:
- Reviewing your business rates valuation and checking whether you are eligible for any transitional relief.
- Update your financial projections to factor in wage increases next April.
- Look again at any pension contribution salary sacrifice arrangements you have and make sure staff understand how the changes could affect them.
- If you are seeking investment for your company, it could be worth looking at the updated EIS rules to see whether they might open any new opportunities for you.
If you need help working through any of these changes – or simply want a second opinion on how they affect your plans – feel free to get in touch. We would be happy to help you!
If your business is based in England and Wales, you can now view the future rateable value of your property.
The Valuation Office Agency (VOA) has completed updating the rateable values of all commercial and non-domestic properties in England and Wales. The new values take effect from 1 April 2026.
Revaluations happen every three years to reflect changes in the property market, and local councils use these values to calculate business rates bills. A rateable value is not the same as the amount you pay, as your bill depends on the government-set multiplier and any reliefs you may qualify for.
Information on the multiplier rates and reliefs available in England was updated during November’s Budget announcement. The Welsh government is likely to confirm multipliers and reliefs in its January Budget.
Estimate Your Future Bill
You can use the GOV.UK Find a Business Rates Valuation service to find your business property’s future rateable values.
For properties in England, the service can also provide an estimate of your business rates bill, though this won’t account for reliefs. The service for Welsh properties will be updated once the Welsh Government confirms multipliers and reliefs.
If you are facing a bill increase, some of the reliefs announced in the Budget would be worth exploring. These include a Supporting Small Business Scheme and a Transitional Relief scheme.
What to Do Now
You can sign into your business rates valuation account to check your property details, see how the valuation was calculated, and report any errors.
It is also possible to use your account to compare your rateable value with other properties in the area and check how the valuation was calculated.
At the moment, you can only request changes to your current rateable value. You must request any changes to this value by 31 March 2026. After 1 April 2026, you will only be able to make changes to your future rateable value.
If you have concerns about how the revaluation could affect your business’s profitability and budgeting for costs, please get in touch. We would be happy to help you. For any questions you have about rates or payments, contact your local council in the first instance.
See: https://www.gov.uk/government/news/business-rates-revaluation-2026
The government has announced plans to introduce a new levy, the High-Value Council Tax Surcharge (HVCTS), for owners of residential properties in England valued at £2 million or more.
The surcharge is expected to come into effect in April 2028. A public consultation on the details will be held in early 2026.
HVCTS currently only affects residential properties in England. Whether the devolved administrations in Scotland, Wales and Northern Ireland will follow suit remains to be seen.
Not Based on Council Tax Bands
In information published following the Budget, the government confirmed that the surcharge will not be calculated based on council tax bands. So, if your property is currently in say bands F, G, or H (which were set based on 1991 values), this does not necessarily mean your property will be subject to a surcharge.
Instead, there will be a fresh valuation process. The Valuation Office Agency (VOA) will carry out a targeted valuation exercise in 2026. Properties assessed at £2 million or more will be slotted into one of four new HVCTS bands.
As far as council tax is concerned, existing council tax bands will remain in place, and a change in council tax band will not affect HVCTS eligibility.
What to Do Next
Especially if you own a property in London or other high-value areas in England, the new surcharge will be a concern.
- The surcharge could add a significant recurring cost from 2028.
- As the surcharge uses up-to-date property valuations (not 1991 values), properties that escaped high “band” classification under the old system could now be subject to it if their current market value is high.
If you have concerns about how the new surcharge will affect your situation, please do get in touch. We would be happy to provide you with personalised advice.
See: https://www.gov.uk/government/news/high-value-council-tax-surcharge
The deadline for filing your 2024/25 Self Assessment tax return is fast approaching. You must submit your return and pay any tax due by 31 January 2026 to avoid penalties and interest.
To meet the deadline, you will need to make sure you have:
- All income details, including any employment, pension, self-employment, dividends, rental and savings income you received.
- Records of allowable expenses and reliefs.
- Details of any pension contributions or charitable donations.
Filing early not only helps avoid last minute stress but also gives you time to check your figures and plan for any tax payments you need to make.
If you would like help preparing and submitting your tax return, please get in touch as soon as possible. We can help you ensure that your tax return is accurate, complete and filed on time.
The recent Budget confirmed that dividend tax rates will increase from April 2026. The ordinary and upper rates of dividend tax will both rise by 2%.
For many small and medium-sized companies, dividends are central to how owners pay themselves. With the tax rates rising, your pay and profit extraction strategies will likely need a fresh look for 2026/27.
What’s Actually Changing
From April 2026:
- The dividend ordinary tax rate increases from 8.75% to 10.75%.
- The dividend upper tax rate rises from 33.75% to 35.75%.
- The dividend additional tax rate remains at 39.35%.
- The tax-free dividend allowance remains at £500
The rate you pay on your dividends will depend on the amount of your total income and the source of your income. These rates apply only to dividends – salary, bonuses and savings are taxed differently.
What the Changes Mean for Profit Extraction
As dividends have usually offered a tax advantage over salary, many directors/shareholders adopt a mix of a low salary and higher dividend income.
However, with dividend tax rising, the balance is shifting slightly. The best extraction strategy for one director may look quite different for another, especially when factors like income levels, other earnings, pensions and company profits are taken into account.
It may therefore be worth reviewing:
- Whether a different mix of salary and dividends is now more efficient for you.
- Bringing forward dividends before April 2026, where appropriate.
- The impact on cash flow if you switch to taking a larger salary instead of dividends.
If you want to review how you take money from your company, or see how the upcoming dividend tax changes could affect your take-home pay, get in touch. We can guide you through the options and help you make sure your remuneration is as tax-efficient as possible.
Some self-employed taxpayers who filed their 2024/25 self-assessment tax return may have been incorrectly asked to pay class 2 national insurance contributions (NIC) on their SA302 tax calculation. HM Revenue & Customs (HMRC) has now confirmed that this issue has been fixed.
Who was affected?
HMRC estimates that between 10,000 and 20,000 self-employed individuals who filed before 29 September 2025 may have received an SA302 showing class 2 NIC as payable when it should not have been.
How HMRC is resolving the issue
HMRC have confirmed that they fixed the issue and any SA302 forms issued since 29 September 2025 should show the correct class 2 NIC payments.
For taxpayers that were affected by the error, HMRC have said that they will make all necessary corrections by the end of December 2025. The corrections will be applied automatically and there should be no need to contact them.
Why the error occurred
From 2024/25 onwards, sole traders and self-employed partners with profits above the Small Profits Threshold (SPT) do not need to pay class 2 NIC. Instead, contributions are treated as having been paid automatically. The Small Profits Threshold (SPT) is:
- £6,725 for 2024/25
- £6,845 for 2025/26
Earlier in the year, some SA302 forms incorrectly flagged class 2 NIC as payable for taxpayers whose profits were above the threshold.
Key points if you have been affected
- If your SA302 incorrectly showed class 2 NIC as payable, HMRC will correct it automatically.
- No action is required on your part.
See: https://www.icaew.com/insights/tax-news/2025/nov-2025/tax-return-class-2-nic-issue-is-resolved-says-hmrc
After weeks of speculation about what Budget 2025 would contain, the Chancellor was unexpectedly upstaged when the Office for Budget Responsibility (OBR) accidentally published their report revealing key policy measures ahead of the official announcement.
Although the report was quickly withdrawn, the information had already been picked up by media outlets and tax commentators.
Ultimately, however, the manner in which the details were released matters less than the substance of the policies themselves. It is the impact of these measures that will be felt over the coming years.
How does Budget 2025 affect your business? Let’s take a closer look at some of the key points and consider their potential implications.
A Tax Hit for Property Owners and Savers
Budget 2025 announced that, from 6 April 2027, the government will create new separate income tax rates that apply to property income and will increase the rates for these and for the income tax rates on savings income by two percentage points.
The new rates will be as follows:
|
|
2027/28 |
|
|
Property income* |
Savings income |
| Basic rate |
£1 – £37,700 |
22% |
22% |
| Higher rate |
£37,701 – £125,140 |
42% |
42% |
| Additional rate |
Over £125,140 |
47% |
47% |
The new property income tax rates will apply to taxpayers in England and Northern Ireland. The Scottish and Welsh governments will have the power to set property tax rates for those jurisdictions.
Owners of property worth more than £2 million were also affected by the introduction of a high-value council tax surcharge, otherwise known as the ‘mansion tax’. The surcharge will be in addition to the existing council tax and will range from £2,500 to £7,500 depending on the property’s value. Properties will be valued before the introduction of the tax.
If you are a landlord, one or both of these changes could increase your costs. With the abolition of the furnished holiday lettings regime, higher stamp duty land tax on additional properties, the added responsibilities under the Renters Rights Act, and now the prospect of increased tax on property income, it is understandable to question whether continuing to let property remains worthwhile.
If you are concerned, please feel free to contact us. We can provide personalised advice to help you review your options, explore strategies to manage your tax exposure, and identify solutions that work for your individual circumstances.
Increase in Dividend Tax
If you are a company shareholder, from April 2026, the dividends you receive will be subject to higher rates of tax. The basic and higher rates of dividend tax will rise by 2% to 10.75% and 35.75% respectively.
For owner-managed companies, these increased rates raise an important question: do dividends remain a tax-efficient way to extract funds from the business? Those considering incorporating their business will also want to understand how these changes may influence their decisions.
We can provide tailored advice to help you plan effectively, ensuring that you continue to extract income in the most tax-efficient way possible. By reviewing your options in advance, you can make informed decisions that protect your hard-earned income and maximise the benefits of any available reliefs.
Increasing Payroll Costs
Even before the Budget speech, the new national minimum wage rates had been announced. These new rates come into force from 1 April 2026.
We’ve covered the details of the new rates separately, but it’s worth noting the 4.1% increase in the main National Living Wage rate that applies to employees aged 21 and over and the rise of between 6.0% and 8.5% for employees under 21 and apprentices.
Employees who are paid at higher than minimum wage rates may also be looking for comparable increases in their pay. These could mean a fairly substantial uplift in your payroll costs next April. It will be important to ensure that you budget for these costs and take them into account with any recruiting you have in mind over the next year.
Salary Sacrifice for Pension Contributions
If your business offers salary sacrifice for pension contributions, an important change is coming in 2029. At present, all pension contributions made through salary sacrifice are exempt from employer national insurance contributions (NIC), regardless of the amount. This provides valuable savings for both employees and employers.
From 6 April 2029, however, the NIC exemption will be capped at £2,000 per year for employee pension contributions made via salary sacrifice. Any contributions above this threshold will continue to receive income tax relief but will become subject to both employer and employee NICs.
Although this change is still a few years away, it’s worth considering now how it may affect the overall value of your employee pay and benefits packages.
IHT reliefs for business owners and farmers
The government is pressing ahead with plans to reform agricultural property relief (APR) and business property relief (BPR) from 6 April 2026. These are important inheritance tax (IHT) reliefs that currently mean that up to 100% relief is available on the full value of qualifying assets.
As announced in last year’s Budget, from April 2026, this 100% relief will be capped at a combined £1 million of agricultural and business property, with any excess qualifying only for 50% relief.
However, Budget 2025 did provide some good news. It added that, from 6 April 2026, any unused APR or BPR allowance will become transferable to a surviving spouse or civil partner. As a result, couples may be able to pass on up to £3 million of qualifying agricultural or business property free of IHT.
Careful planning is essential, though. Transitional rules mean that gifting assets before 6 April 2026 may not necessarily help the situation. Please speak with us for personalised advice on the best way to organise your estate where business or agricultural assets are involved.
Capital Allowances
For 2026/27, the annual investment allowance (AIA) means that qualifying new capital expenditure you make of up to £1 million can be relieved in full against the taxable profits of your business.
Disappointingly, Budget 2025 announced that the rate of writing down allowance applicable to qualifying capital expenditure that is classed as main rate pool will drop from 18% to 14% on 1 April 2026 for companies and 6 April 2026 for unincorporated businesses, such as sole traders and partnerships.
However, this reduction may be partially offset by a new 40% first year allowance (FYA) that will be available from 1 January 2026. Its usefulness to your business may be limited, though, as it will only really be of benefit where the AIA or other FYAs are unavailable.
If you are considering buying electric vehicles for your business, Budget 2025 confirmed that FYAs that give 100% relief for qualifying expenditure on electric vehicles and charging points will be extended to April 2027.
Business Rates
As announced in the 2024 Budget, two new lower business rates multipliers for eligible retail, hospitality and leisure (RHL) properties with a rateable value (RV) below £500,000 will come into effect from 1 April 2026.
These new multipliers will replace the 40% RHL relief available in 2025/26 and will be funded by introducing a higher multiplier for properties with an RV above £500,000.
Legislation and local authority guidance have already set out the eligibility criteria for RHL properties, but Budget 2025 has now confirmed that each of the new multipliers will be 5p lower than the standard multiplier for a property with the same RV.
Mandated Electronic Invoicing
Following a consultation on the topic, the government plans to make electronic invoicing mandatory for all VAT invoices starting in 2029. A detailed implementation road map is expected to be published next year at Budget 2026.
The possibility of introducing real-time reporting (RTR) is also being considered. This is where invoice information is automatically shared with HMRC, perhaps as soon as it is sent to a customer. However, the government has confirmed that this will not start in 2029. RTR would only be introduced once electronic invoicing is widely in use and well established.
We still have a few years before mandatory electronic invoicing takes effect, and it is always possible that details may evolve as plans develop. However, businesses will need to begin thinking about the practical implications now.
In particular, these changes may influence your choice of accounting software and the pace at which you digitise your invoicing processes. Ensuring that your systems can support structured electronic invoicing formats will make any transition far smoother and minimise disruption once the rules are finalised.
In Conclusion
While Budget 2025 included much talk about growth, tackling inflation and cutting the cost of living, everyone has been asked to contribute. Freezing many income tax rates and thresholds for a further three years and increasing taxes on savings, dividends and property income will mean many end up paying more over the coming years.
It may be necessary to re-examine your business and personal plans for 2026 and beyond to be as tax-efficient as possible. Remember, we are here to support you to ensure your business and personal success. Please do get in touch if there is anything that you would like to discuss.
Legislation has been passed by Parliament that defines which properties are eligible for the new Retail, Hospitality and Leisure (RHL) business rates multipliers which come into force on 1 April 2026. HM Treasury has also provided guidance to local authorities on how to apply these regulations.
Earlier in the year, the Non-Domestic Rating (Multipliers and Private Schools) Act 2025 laid the legal basis for introducing higher multipliers for the properties of large businesses and lower multipliers for RHL properties. The intention is to help high street RHL businesses that sell to in-person customers.
From April 2026, two lower business rates multipliers for RHL properties will be introduced for rateable values below £500,000.
- A small business RHL multiplier will apply where the rateable value is below £51,000.
- A standard RHL multiplier will apply where the rateable value is between £51,000 and £499,999.
The rates for these multipliers will be confirmed during Budget 2025, which is being held on 26 November 2025.
In a change from the RHL business rates relief that is currently in place, it is intended that there will be no cash cap. This means the RHL multipliers will apply to any property that meets the statutory definition of a RHL property contained in the new regulations.
Broadly speaking, the new definitions will mean that most properties receiving the 40% RHL relief in 2025-26 will qualify for the proposed lower multipliers. However, local authorities have had discretion in how they have awarded the 40% RHL relief, whereas the new RHL multipliers will only apply where the legal definition is met. This may mean that some properties currently receiving relief could fall outside the new relief measures.
To see whether your RHL business property will qualify for the new RHL multipliers, it is worth reviewing HM Treasury’s guidance
The government has confirmed how the new Renters’ Rights Act will be phased in, setting out a three-phase approach that runs from May 2026 through to the end of the decade.
Phase 1: Initial reforms from 1 May 2026
The first and most immediate changes will take effect on 1 May 2026. These include the end of Section 21 “no-fault” evictions, meaning landlords will no longer be able to evict tenants without giving a valid reason.
At the same time, if landlords need to get their property back, they will have stronger, legally valid reasons to do so. These include moving in, selling the property, dealing with serious rent arrears or tackling anti-social behaviour.
Tenants will gain other new protections, including the ability to challenge above-market rent increases intended to encourage them to leave. Landlords will also no longer be able to unreasonably refuse requests for pets.
From 1 May 2026, it will become illegal to:
- Increase rent more than once a year.
- Request more than one month’s rent in advance.
- Run rental bidding wars between prospective tenants.
- Discriminate against tenants because they receive benefits or have children.
Councils will be overseeing these new rights. Fines can reach up to £7,000 for breaches, increasing up to £40,000 for repeat or serious offences. Tenants and local authorities will also be able to seek rent repayment orders.
Guidance for landlords and letting agents will be published ahead of these changes, with councils receiving additional funding to help them prepare.
Phase 2: Ombudsman and database
The second phase, beginning in late 2026, focuses on improving oversight and resolving disputes in the private rented sector.
A new Private Landlord Ombudsman will be introduced, offering tenants a free, independent service to help them resolve complaints that have not been addressed by their landlord. This is intended to reduce the need for court action and deliver faster outcomes.
A Private Rented Sector Database will also be launched, requiring all landlords to register themselves and their rented properties. The database will be rolled out in stages across England.
Phase 3: Further quality and safety standards to follow
The final phase will introduce measures aimed at ensuring safe conditions in private rented homes, including the introduction of a Decent Homes Standard. The government also plans to consult on extending Awaab’s Law to private renting.
The government has already consulted on plans to require that all domestic privately rented properties in England and Wales meet an EPC rating of C or equivalent by 2030, unless an exemption applies. Further details on this will be set out when the government responds to the consultation.
See: https://www.gov.uk/government/news/no-fault-evictions-to-end-by-may-next-year
As the festive season approaches, HM Revenue & Customs (HMRC) is urging anyone who earns money from Christmas crafts, seasonal market stalls, or selling festive items to check whether they need to report their earnings for last year.
HMRC’s “Help for Hustles” campaign highlights the importance of understanding when extra income becomes taxable.
While selling personal belongings from a clear-out generally does not need to be reported, making or selling items for profit – such as handmade decorations, upcycled furniture or running a seasonal market stall – may be subject to tax.
What You Need to Know
Anyone who earned more than £1,000 from side hustles in the 2024-2025 tax year will need to:
- Register for Self Assessment as a sole trader.
- File a tax return.
- Pay any tax due by 31 January 2026.
The £1,000 threshold applies to all trading income combined. For example, someone earning £600 from craft sales and £500 from content creation would need to register, as their total income exceeds the threshold.
If you would like personalised advice on whether you need to file a tax return, please give us a call. We would be happy to help you!
For many sole traders and small business owners, reviewing their accounting system only happens when something forces the issue. For instance, many sole traders are currently looking at whether their accounting system meets the requirements for Making Tax Digital for Income Tax.
However, even without a regulatory change, reviewing your accounting systems can yield benefits. The right system can save you time, reduce errors and give you better insight into your business’s finances.
Here are some practical points to consider.
- Identify Your Needs
Think about what you or your team handle most often. Is it invoicing, logging expenses, monitoring cash flow, or perhaps tracking stock or projects.
You might only need some basic income and expense recording. On the other hand, features like invoice reminders, payment links in invoices, or job costing could be useful to you.
It’s often easier to start by listing your everyday tasks before you look at what software can do.
- Consider Cost, but Think in Terms of Value
The cheapest option is not always the most effective if it slows you down. A slightly higher monthly fee could be worth it if it saves you work and time.
Ease of use can add a lot of value, too. Simple screens, clear menus and good support can all make day-to-day bookkeeping much less of a chore.
- Automation and Integrations
Modern software can take care of many repetitive tasks. For instance, importing bank transactions, sending reminders, capturing invoice and receipt details can all be done by software.
If you use e-commerce platforms, job management tools or card payment services, software that can connect to them can save you time by eliminating the need to enter information twice.
- Planning for Growth
If you expect your business to grow, consider whether the system can grow with you. Some entry-level tools are perfect for start-ups but become limiting once staff, stock or more complex invoicing are involved.
- Plan for the Switch
Changing accounting systems can be disruptive; however, many platforms offer setup wizards, data import tools and clear guidance that can make the transition easier than you might expect. Choosing to switch at the start of a new financial year can make the process a lot smoother, too.
Choosing the right accounting system is not just about compliance or day-to-day record keeping – it’s an opportunity to make your business run more smoothly and give yourself clearer insight into its financial health.
If you would like help reviewing your current accounting system or recommending options that would suit your business, please feel free to contact us at any time. We would be happy to help you!
The Prudential Regulation Authority (PRA) has confirmed that the Financial Services Compensation Scheme (FSCS) deposit protection limit will increase from £85,000 to £120,000 from the start of December.
The new threshold applies per depositor, per PRA-authorised bank, building society or credit union. The PRA have confirmed that HM Treasury has approved the change.
This is the first change to the limit since 2017 and follows a consultation earlier in the year. The PRA had initially proposed that the limit should rise to £110,000, but feedback provided in the consultation and the latest inflation data prompted a higher final figure.
Temporary High Balances Limit Also Rising
Alongside the core protection limit, the cap for Temporary High Balances (THBs) will increase from £1 million to £1.4 million on 1 December.
THB protection applies to qualifying life events that can temporarily increase a customer’s account balance, such as buying or selling a house or insurance claim payouts.
Implications for Your Business
The increase in limit will be good news if you hold cash reserves in your business to cover working capital, payroll and other running costs.
It is worth noting that the limit continues to be applied ‘per depositor, per PRA-authorised institution’. This means that if you are eligible and hold cash reserves that exceed the deposit protection limit, you could gain further protection by spreading your funds across different authorised institutions.
It is worth checking whether a banking group is operating multiple brands under a single licence. This means you would only receive a single protection limit for the total amounts held across those brands.
Taking a Wider Look at Cash
For many owner-managed businesses, cash reserves naturally rise and fall throughout the year. If you find that your balances regularly build up beyond what the business needs for day-to-day operations, the increase in the FSCS limit could be a useful prompt to review how much cash the business actually needs to hold.
Spreading funds between different banks can increase the level of protection available, but it can also be sensible to take a step back and consider whether those reserves are serving a useful purpose in the business. A simple cash flow review can help identify the amount needed for routine expenses, tax payments and any planned spending over the coming months.
Where cash consistently exceeds this level, you may want to consider:
- Are there investment opportunities for the business that would fit with your business growth plans?
- Would withdrawing funds, such as by dividends, better help you achieve your personal goals?
The right choice for you will depend on your personal and business circumstances, tax considerations and your plans for the business.
If you would like tailored advice or simply assistance in clarifying what level of reserves your business needs, please get in touch. We would be happy to help you!
See: https://www.bankofengland.co.uk/news/2025/november/pra-confirms-fscs-deposit-limit-to-be-increased-to-120000-from-1-december
As the festive season approaches, employers are being reminded of their responsibility to take reasonable steps to prevent sexual harassment at work events, including Christmas parties.
The Worker Protection Act 2023 imposes a preventative duty on employers to protect staff from harassment in the workplace – whether at their usual place of work or at work-related social events.
Heightened risks during festive events
Workplace parties are often positive occasions that bring everyone together, however, the combination of social settings, alcohol, and out-of-hours events can increase the risk of inappropriate behaviour.
Employers are being encouraged to plan ahead and take practical steps to protect staff and maintain a safe, respectful environment.
This does not mean cancelling festive activities, however there is a need to consider the potential risks and take reasonable steps to prevent harm.
What should you do?
The Equality and Human Rights Commission (EHRC) has published guidance for employers on what to consider when organising workplace Christmas parties. Their top three steps are:
- Think ahead to prevent problems – these could include how you will manage alcohol, overnight accommodation and power imbalances.
- Set expectations early and remind employees of company policies.
- Consider the risk of third-party harassment, such as from other customers and members of the public.
More information can be found on the EHRC website.
For technical guidance on sexual harassment and harassment at work, see: https://www.equalityhumanrights.com/guidance/sexual-harassment-and-harassment-work-technical-guidance
The Information Commissioner’s Office (ICO) has opened a consultation on new guidance that sets out how it investigates potential data protection breaches and takes enforcement action.
Increasing transparency
The proposed guidance explains the processes the ICO follows when it suspects an organisation may have failed to comply with the UK General Data Protection Regulation (UK GDPR) and the Data Protection Act 2018.
Key points in the draft guidance
The draft guidance sets out:
- How the ICO decides whether to open an investigation or resolve concerns in another way.
- What can be expected during an investigation.
- How the ICO will use its information-gathering powers, including new powers under the Data (Use and Access) Act 2025 to require individuals to answer questions and organisations to provide reports.
- How decisions on the outcome of an investigation are made, including when warnings, reprimands, enforcement notices, or penalty notices may be used.
- When the ICO may consider a settlement with a reduced fine, and how that process works.
Updates to align with recent legislation
Once finalised, the new guidance will sit alongside the ICO’s Data Protection Fining Guidance, with the two forms of guidance replacing the current Regulatory Action Policy.
The Data (Use and Access) Act 2025 also extends the ICO’s investigatory and enforcement powers under the Privacy and Electronic Communications Regulations 2003 (PECR), bringing them broadly into line with the powers the ICO has under data protection law. While some differences remain, the ICO intends to apply a similar approach to both areas.
What this means for you
Where you act as a data controller or processor, awareness of this new guidance could be helpful in preparing for potential investigations and demonstrating good management of your data protection compliance responsibilities.
The consultation closes on Friday 23 January 2026.
To review the draft guidance and respond to the consultation, see: https://ico.org.uk/about-the-ico/ico-and-stakeholder-consultations/2025/10/ico-consultation-on-data-protection-enforcement-procedural-guidance/
The Intellectual Property Office (IPO) has confirmed plans to raise its fees by an average of 25% from 1 April 2026, subject to parliamentary approval. The change will affect applications and renewals for patents, trademarks, and designs.
This marks the first major fee increase in several years, with some fees unchanged for more than two decades. The IPO says the rise is necessary to keep pace with inflation and maintain the quality of its services.
The change means most fees will go up by around a quarter. For example:
- A patent search will rise from £150 to £200.
- A trademark application will increase from £170 to £205.
Full guidance will be published early in 2026 to help those whose payments fall close to the transition date.
The IPO has also updated its ‘how to pay’ information online, including revised terms and conditions for deposit account holders.
If approved, the new fee structure will take effect from 1 April 2026. Until then, the current fees remain in place.
See: https://www.gov.uk/government/news/intellectual-property-office-fees-to-increase-from-april-2026
