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Employment Rights Act – What is Changing First?
| 24-02-2026
A new website has been launched by the Department for Business and Trade (DBT) offering practical guidance and support on the changes that the Employment Rights Act will introduce and what they can do to get ready.
UK Unemployment Rises as Wage Growth Slows
| 24-02-2026
The UK’s unemployment rate has risen again, according to the latest data from the Office for National Statistics (ONS). In the three months to December 2025, unemployment increased to 5.2%, up from 5.1% in the three months
Could a Fiscal “Traffic Light System” Help Your Business Cut Through Uncertainty?
| 24-02-2026
A leading think tank has criticised the fiscal rules that the Chancellor uses to determine the government’s tax and spending
Personal Tax Changes Coming in April 2026
| 24-02-2026
With just a few weeks to go until the beginning of a new tax year, a new round of tax changes take effect from April 2026. While many people won’t see a big difference in their day-to-day tax position, there are some areas worth having on the radar.
HMRC Moves to GOV.UK One Login for New Users
| 17-02-2026
HM Revenue & Customs has started using GOV.UK One Login for taxpayers signing up to its digital services for the first time. This means that if you do not already have a Government Gateway account, you will now
Deadline Approaching for Business Rates Valuation Checks
| 09-02-2026
Enterprises that pay business rates are being encouraged to check their current property valuation and make sure the details held by the Valuation Office Agency (VOA) are correct.
Salary Sacrifice: Tax Efficient Options for Employers and Employees
| 09-02-2026
With costs rising, many employers and employees are looking for practical ways to reduce outgoings without cutting benefits. Salary sacrifice can be an excellent tool to do this, but many
One Million Miss the Tax Return Filing Deadline
| 09-02-2026
HMRC has estimated that around a million people missed the 31 January 2026 Self Assessment tax return filing deadline. It confirmed that 11.48 million people filed their tax return on time, with most people filing online.
Business Confidence Falls Again as Tax Concerns Reach Five‑Year High
| 03-02-2026
The latest Business Confidence Monitor, an Institute of Chartered Accountants in England and Wales survey, shows confidence continuing to fall. Confidence has now fallen for six consecutive quarters and is now at its
VAT Flat Rate Scheme: Could It Work for You?
| 03-02-2026
If you are a small VAT-registered business, how you calculate your VAT could make a real difference to your cash flow and the time you spend keeping records. For some businesses, the standard method for calculating
Business Rates Relief for Pubs and Live Music Venues
| 03-02-2026
It has been announced that eligible pubs and live music venues in England will receive a 15% discount on their business rates bills in 2026/27. Rates bills will then be frozen in real terms for a further two years.
Small Business Britain Launches ‘Small and Mighty Enterprise Programme’ to Support Small Businesses
| 27-01-2026
Small Business Britain is set to roll out its Small and Mighty Enterprise Programme, a six-week online
Private sector pay growth slows to five-year low
| 27-01-2026
UK wage growth eased to 4.5% between September and November 2025, according to the Office for National Statistics, reflecting a notable slowdown in private sector pay.
Nearly 500 employers fined over National Minimum Wage breaches
| 27-01-2026
Almost 500 UK employers have been fined a total of ÂŁ10.2 million for failing to pay the National Minimum Wage (NMW), with ÂŁ6 million returned to 42,000 workers.
Why Management Skills Matter More Than Ever for Business Owners
| 27-01-2026
Many people start a business because they are good at what they do. A great designer sets up on their own. A skilled electrician goes self-employed.
New to Self Assessment Tax? Here’s an Explainer
| 19-01-2026
If you are new to being self-employed or being a landlord, Self Assessment can feel like one of those jobs you know you should understand better, but never quite get around to. When do you actually pay the tax?
Auto-Enrolment Pension Thresholds to Stay the Same in 2026/27
| 13-01-2026
The Department of Work and Pensions (DWP) has confirmed that all key auto-enrolment pension thresholds will remain unchanged for 2026/27.
Spring Forecast Scheduled for 3 March 2026
| 13-01-2026
The Chancellor, Rachel Reeves, has requested the Office for Budget Responsibility (OBR) to publish an economic and fiscal forecast on 3 March 2026.

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A new website has been launched by the Department for Business and Trade (DBT) offering practical guidance and support on the changes that the Employment Rights Act will introduce and what they can do to get ready. The website provides details of upcoming changes, including several that come into force from April 2026. These include: The website includes details on how to prepare for changes and a timeline of when further changes will be introduced. It can be found here and would be well worth saving to your browser favourites.

The UK’s unemployment rate has risen again, according to the latest data from the Office for National Statistics (ONS). In the three months to December 2025, unemployment increased to 5.2%, up from 5.1% in the three months to November. This marks the highest rate in almost five years.

Alongside the rise in unemployment, annual wage growth has slowed to 4.2%, its weakest pace in close to four years.

This combination of slower wage growth and rising unemployment suggests a cooling labour market.

Businesses Reacting to Higher Costs

Part of the slowdown may be linked to increased employment costs. The 2024 Budget raised employer national insurance contributions and increased the minimum wage.

Some businesses appear to have chosen to delay recruitment or leave vacancies unfilled as they review budgets for the year ahead.

Younger Workers Bearing the Brunt

The unemployment rate for 16–24-year-olds has risen to 16.1%. For school leavers and graduates, securing an entry-level role has become increasingly competitive.

Analysts have also raised concerns that investment in artificial intelligence could reduce the number of traditional starter roles over time, adding further pressure to new entrants to the job market.

Interest rates

The slowdown in wage growth may influence the Bank of England’s next decision on interest rates and could give room for a further rate cut.

Looking ahead

For your business, a softer labour market might make it easier for you to fill certain vacancies, with more applicants available for job openings. However, it could also hint at weaker consumer confidence that may lead to slower sales. If you are planning investment, recruitment or borrowing in the coming months, this may be a useful moment to revisit those plans rather than rush decisions.

See: https://www.bbc.co.uk/news/articles/c1l7pedyzjeo

A leading think tank has criticised the fiscal rules that the Chancellor uses to determine the government’s tax and spending plans. The Institute for Fiscal Studies (IFS) has suggested that reducing complex finances to a pass‑or‑fail number misses the bigger picture.

The Treasury, on the other hand, has said that the rules are helping to keep borrowing costs down and support long‑term investment.

Of course, which view is correct when it comes to managing the country’s finances could be an endless debate. However, the IFS proposal brings up an interesting idea that many businesses are using with success.

The IFS Proposals

The IFS are advocating moving to a fiscal “traffic light” system. Rather than judging the economy against the one requirement for “headroom”, a broader set of indicators should be assessed. And given a green, amber or red status.

Why This Idea Might Feel Familiar to Businesses

This traffic‑light idea is something many businesses already use informally. For instance, it’s very common to track financial health and business performance using a dashboard of red, amber and green indicators.

Business owners can get an ‘at-a-glance’ look at the different areas of the business and quickly flag potential problems.

Applying a Traffic‑Light System to Your Own Business

A simple set of indicators is often all that is needed. Three or four core measures can help to assess the business and check its day‑to‑day resilience. For example:

Businesses using a traffic‑light approach tend to make decisions earlier – whether that’s tightening costs, adjusting pricing, or negotiating with lenders. It also helps everyone in the business get a picture of what’s happening without necessarily needing to dive into pages of accounts.

If you would like help building a simple financial traffic‑light dashboard tailored to your business, we would be happy to work with you in developing something that is based on the metrics that matter most to your business.

See: https://www.bbc.co.uk/news/articles/c1kg48m937wo

With just a few weeks to go until the beginning of a new tax year, a new round of tax changes take effect from April 2026. While many people won’t see a big difference in their day-to-day tax position, there are some areas worth having on the radar.

Here is a run-through of some of the changes you may want to be aware of.

Dividend Tax Rises

The tax rates for dividends are rising from April 2026. The basic rate and higher rates are each increasing by two percentage points to 10.75% and 35.75%, respectively. The dividend additional rate remains at 39.35%.

Many company owners rely on a combination of salary and dividends for their pay. If that’s you, it’s important to review how you draw income and whether your current mix of salary and dividends still makes sense.

Thresholds Remain Frozen

The tax-free personal allowance and income tax thresholds all remain frozen and are set to stay that way until 2030/31. That ongoing freeze will continue to pull more people into higher rates of tax.

National Insurance and Voluntary Contributions

People with gaps in their national insurance contribution (NIC) record, those who are self-employed with low profits, or those who work overseas often consider making voluntary contributions.

From 6 April 2026, the rate for Class 2 NICs (applicable to the self-employed) will be increased from ÂŁ3.50 to ÂŁ3.65. The rate for voluntary Class 3 NICs will increase from ÂŁ17.75 to ÂŁ18.40.

Aside from the increase in rates, a major change is that voluntary Class 2 NIC will no longer be an option for periods spent abroad. Making voluntary Class 3 contributions will be possible, but the qualifying criteria have been tightened.

Capital Gains Tax (CGT)

Business owners thinking about selling or restructuring should be aware that capital gains that are subject to business asset disposal relief or investor’s relief will be taxed at 18% for 2026/27, an increase from 14% in 2025/26.

Reliefs for disposals to employee ownership trusts have also been scaled back and the rules for share reorganisations have been tightened. Both changes are already in force.

These changes won’t affect everyone, but if you are considering business succession or restructuring, getting the timing and your approach right continues to be key.

Inheritance Tax – Agricultural and Business Property Relief Changes

As has been widely publicised, changes to Inheritance Tax (IHT) to Agricultural Property Relief (APR) and Business Property Relief (BPR) will come into force on 6 April 2026.

These reliefs were previously unlimited, but from April, 100% relief will be capped at ÂŁ2.5 million of combined agricultural and business assets. Thereafter, the relief reduces to 50%. Unused amounts can be passed to a spouse or civil partner.

The ÂŁ2.5 million limit is higher than initially proposed, but those who may be affected by the new cap may want to consider whether there are ways to rearrange their estate that would be effective in saving tax.

In Conclusion

If you are affected by any of these changes for 2026/27 and would like help in making sure you are in the best tax position possible, please get in touch. We would be happy to help you!

See: https://www.icaew.com/insights/tax-news/2026/feb-2026/prepare-for-2026-27-individuals

HM Revenue & Customs has started using GOV.UK One Login for taxpayers signing up to its digital services for the first time.

This means that if you do not already have a Government Gateway account, you will now register using an email-and-password login rather than needing to obtain a 10-12 digit Government Gateway ID.

For now, this only affects new HMRC users. Existing Government Gateway users do not need to switch yet.

Even if you already have a GOV.UK One Login that you use for another government service, you will still need to use your government gateway to access HMRC’s services for the time being.

HMRC plans to roll out GOV.UK One Logins gradually and will contact existing users when it is ready for them to move over.

Eventually, GOV.UK One Logins will become the single login for everything from filing a tax return to renewing a passport.

If you need help registering for or accessing HMRC services, please contact us. We will be happy to help you!

See: https://www.gov.uk/government/news/hmrc-introducesgovukonelogin-for-new-customers

Enterprises that pay business rates are being encouraged to check their current property valuation and make sure the details held by the Valuation Office Agency (VOA) are correct.

If you believe your valuation is wrong, you have until 31 March 2026 to request any changes to your current valuation.

After that, a new rating list comes into effect on 1 April, and you will only be able to request changes to your new 2026 valuation from that date.

To request any changes, you need a business rates valuation account. If you haven’t used yours recently, it’s worth checking that you can still log in. The verification process to claim a property can take up to 15 working days, so it’s sensible not to leave this until the last minute.

You will need a Government Gateway user ID or a One Login account to sign in to your account.

Support is available on GOV.UK for anyone needing help with registration.

See: https://www.gov.uk/government/news/deadline-for-challenging-your-business-rates-valuation

With costs rising, many employers and employees are looking for practical ways to reduce outgoings without cutting benefits. Salary sacrifice can be an excellent tool to do this, but many businesses overlook it.

In short, salary sacrifice lets an employee give up part of their gross salary in exchange for a benefit such as a pension contribution, an electric car or a bike. Because the exchange happens before tax and National Insurance (NI), both sides can save money while staff gain a more attractive package.

A proposed cap on National Insurance relief for pension contributions received heavy publicity after the Autumn Budget 2025 announcement. However, the cap will not come into force until 6 April 2029. Until then, the advantages existing under the current rules remain available.

For employers, salary sacrifice can be an effective way to enhance benefits, improve recruitment and retention, and reduce tax costs. For employees, it can make benefits they value more affordable at a time when cash flow really matters.

If you want to understand how the numbers stack up for your business, we would be happy to help you calculate and compare the tax and NI position and show you exactly how salary sacrifice could work in practice for you and your team.

HMRC has estimated that around a million people missed the 31 January 2026 Self Assessment tax return filing deadline.

It confirmed that 11.48 million people filed their tax return on time, with most people filing online.

As usual, there was a significant rush on deadline day itself with nearly half a million people filing on 31 January, including more than 27,000 in the final hour before midnight. The busiest hour was between 5 pm and 6 pm, when almost 33,000 returns were submitted.

Despite this, it seems that a million people missed the deadline altogether.

If you missed the deadline

Anyone who still needs to file should do so as soon as possible. HMRC applies a fixed ÂŁ100 late filing penalty immediately, even if no tax is owed.

Further penalties apply the longer the return is outstanding:

There are also penalties for paying tax late – 5% of anything unpaid at 30 days, six months and 12 months – plus interest.

If you need help filing your tax return, please get in touch. We would be happy to help you.

What’s coming next

Making Tax Digital for Income Tax will start from April 2026 for many sole traders and landlords.

From 6 April 2026, Making Tax Digital (MTD) for Income Tax becomes mandatory for sole traders and landlords with qualifying income over ÂŁ50,000.

MTD involves keeping digital records and sending quarterly updates to HMRC.

See: https://www.gov.uk/government/news/1148-million-beat-the-self-assessment-deadline

The latest Business Confidence Monitor, an Institute of Chartered Accountants in England and Wales survey, shows confidence continuing to fall. Confidence has now fallen for six consecutive quarters and is now at its lowest since the final three months of 2022.

The survey, which gathered views from 1,000 business leaders, shows growing concern over tax complexity and the wider outlook for business activity.

Tax pressures rising

A record 64% of businesses said the tax burden was becoming a greater challenge, up from 60% in the previous quarter. According to the report, this reflected uncertainty over what tax changes might be included in the Autumn Budget 2025, combined with the effects of previous tax rises feeding through.

Regulation was the second biggest reported challenge, with 51% of businesses saying it was holding back performance. Many cited the Employment Rights Bill as a contributing factor.

Differences between sectors

Some sectors remain noticeably more pessimistic. Property, retail and wholesale continue to show the weakest sentiment, with construction close behind.

Exporters, however, were more upbeat than non‑exporters. IT and communications was the only sector to report a positive score, at +0.3.

Employment and pay trends

Employment growth slowed to 0.8% in the quarter, the lowest figure since mid‑2021. Manufacturing and engineering, retail and wholesale and transport reduced their headcount as 2025 ended. However, it seems that transport and storage are the only sectors expecting to cut jobs further during 2026.

Salary growth also eased to 2.9%. This is still above pre‑pandemic levels but lower than the rises seen in recent years. The expectation is for pay to increase at a similar pace over the next 12 months.

Sales expectations improving

Despite the fall in overall confidence, there are some bright spots. Expectations for domestic sales improved for the first time since 2024, even though actual growth slowed slightly to 2.9%. Export sales growth rose to 2.5% and is also expected to continue improving in 2026.

Capital investment grew modestly to 2%, although businesses expect to slow their spending plans over the coming year.

What this means for your business

The report paints a picture of businesses managing rising costs while holding back on hiring and major investments. At the same time, the slight improvement in sales expectations suggests many firms are cautiously optimistic about trading conditions in 2026.

If you would like to review how these economic trends might affect your business plans, particularly around staffing, investment or cash flow, please feel free to get in touch. We would be happy to help you!

See: https://www.icaew.com/insights/viewpoints-on-the-news/2026/jan-2026/tax-worries-pull-business-confidence-further-into-negative-territory

If you are a small VAT-registered business, how you calculate your VAT could make a real difference to your cash flow and the time you spend keeping records.

For some businesses, the standard method for calculating VAT is the best choice, but for others, their circumstances mean the VAT Flat Rate Scheme may be worth considering.

Here we review some of the factors involved in determining whether the VAT Flat Rate Scheme could work for you.

Comparing methods

Under the standard method you charge VAT on your sales and reclaim VAT on your purchases. You then pay the difference to HM Revenue & Customs (HMRC).

The Flat Rate Scheme uses a different calculation. You still charge your customers the usual VAT rate. However, instead of reclaiming VAT on most purchases, you pay a fixed percentage of your VAT-inclusive turnover to HMRC. The percentage amount depends on the industry your business belongs to.

Eligibility rules apply. Businesses may be able to join the VAT Flat Rate Scheme if their VAT turnover is ÂŁ150,000 or less (excluding VAT).

When the Flat Rate Scheme might help

The Scheme can work well for businesses when VAT-able expenses are low. For example, a consultant or designer who mainly sells their time may find the flat rate percentage more favourable than reclaiming VAT under the standard method.

Some business owners also prefer the simplicity. Because you don’t claim VAT on purchases, other than certain capital assets over £2,000, the calculations can be quicker.

When the standard method may be better

If your business regularly buys goods or services with VAT on them, reclaiming VAT through the standard method is often more cost-effective. The same can be true if you regularly make larger purchases.

Choosing a method

The best way to be sure which method is right for you is to run the numbers and compare.

If you would like advice on whether the Flat Rate Scheme is right for you, give us a call. We are happy to help!

It has been announced that eligible pubs and live music venues in England will receive a 15% discount on their business rates bills in 2026/27. Rates bills will then be frozen in real terms for a further two years.

The British Beer and Pub Association (BBPA) has said that pub landlords will breathe a sigh of relief and that the relief will “stave off the immediate financial threat posed by accelerating business costs.”

Wider concerns remain over the challenge of rising costs and squeezed profit margins.

Which pubs are eligible?

To be eligible, a pub must meet all of the following criteria.

Businesses that will be specifically excluded are:

The government has advised local authorities that the above list is not intended to be exhaustive, and the local authority will have discretion to make the determination where eligibility is unclear.

The intent of the policy is to benefit pubs that would be classified as such by the natural meaning of the word. Being owned and operated by a brewery would be one example of this.

Which live music venues are eligible?

Properties that are wholly or mainly used for the performance of live music to entertain an audience will qualify for the relief.

The property is still likely to qualify if it is used for other ancillary activities, such as the sale of food and drink to audience members or is infrequently used in a way that does not affect its primary use, such as use as a polling station or fortnightly community event.

A property that is wholly or mainly used as a nightclub or theatre under the Town and Country Planning (Use Classes) Order 1987 (as amended) will not be considered to be a live music venue for the purposes of the relief.

What is the position in Scotland, Wales and Northern Ireland?

Business rates are devolved in Scotland, Wales and Northern Ireland.

The Welsh government has already indicated that it will explore whether additional support for pubs is needed once the final details of the announcement are known.

See: https://www.bbc.co.uk/news/articles/c78vqj99168o

Small Business Britain is set to roll out its Small and Mighty Enterprise Programme, a six-week online course designed to help sole traders and micro businesses unlock growth opportunities.

The programme combines expert guidance, mentoring, and practical resources to equip participants with a twelve-month action plan to grow and flourish over the next year. Delivered entirely online, it offers flexible learning accessible from anywhere in the UK, making it suitable for business owners with busy schedules.

Key features of the programme include:

The course runs from 2 February to 9 March 2026, with sessions held every Monday at 10am.

Small business owners looking to develop their skills, expand their networks, and plan for growth can find more information and register via the Small & Mighty Enterprise Programme Registration page.

UK wage growth eased to 4.5% between September and November 2025, according to the Office for National Statistics, reflecting a notable slowdown in private sector pay.

Pay in private businesses rose just 3.6%, the lowest rate in five years. Public sector wages increased 7.9%, however, the ONS has said that this was likely due to pay awards being brought forward when compared with the previous year.

The labour market showed further signs of cooling. The number of people on company payrolls fell by 135,000, with the decline concentrated in retail and hospitality.

Youth unemployment for 16-24-year-olds remained elevated at 15.9%, while overall unemployment held at 5.1%, the highest since early 2021.

Are there any takeaways for businesses?

Economists have interpreted slower private sector pay growth as something that will ease inflationary pressures, which may help in further cuts to interest rates.

Slower private sector pay growth suggests that there could be some relief to wage pressures over the next few months, although with an increase to national minimum wage rates coming in April, hiring is unlikely to get cheaper.

The weaker hiring activity by retail and hospitality businesses suggests that consumers are feeling the pinch, which could have implications for sales income for many businesses.

See: https://www.bbc.co.uk/news/articles/cddgrg87ly5o

Almost 500 UK employers have been fined a total of ÂŁ10.2 million for failing to pay the National Minimum Wage (NMW), with ÂŁ6 million returned to 42,000 workers.

The list of named employers includes well-known high-street brands, indicating that businesses of all sizes can have difficulties in applying the minimum wage rules correctly. 

Implications for employers

For businesses, this latest naming round highlights the ongoing scrutiny there is on minimum wage compliance.

The NMW and National Living Wage rates increased earlier this year, with a further rise planned from April 2026. As a reminder, the rates are:

  2025 rate 2026 rate
National Living Wage (21+) ÂŁ12.21 ÂŁ12.71
18-20 ÂŁ10.00 ÂŁ10.85
Under 18 ÂŁ7.55 ÂŁ8.00
Apprentice ÂŁ7.55 ÂŁ8.00

 

Failing to pay workers correctly can lead not only to fines but also risks harm to the business’s reputation.

With employees being encouraged to obtain advice from Acas or complain to HM Revenue & Customs (HMRC), it is an important area to get right.

Strengthening enforcement

The government plans to expand oversight of labour standards in 2026 with the creation of a Fair Work Agency as part of the new Employment Rights Bill. The agency will have powers to address employers who underpay workers and fail to pay holiday and sick pay.

If you need help with your payroll and ensuring that your staff are paid correctly, please get in touch. We would be happy to help you!

See: https://www.gov.uk/government/news/expansion-of-support-scheme-to-help-thousands-of-people-back-into-work

Many people start a business because they are good at what they do. A great designer sets up on their own. A skilled electrician goes self-employed. A consultant turns expertise into income. What often comes later is realising that running a business and doing the work are two very different jobs.

As a business grows, management skills become just as important as technical ability for the success of the business.

What management really means in a small business

In a smaller business, management is not about hierarchy or job titles. It is about how work gets organised and how people, including you, are supported.

Good management often shows up in quite simple, everyday ways. For instance:

Firefighting, missed deadlines, confused roles, work being redone, or feeling constantly stretched can all be signs of a need to improve how the business is being managed. These kinds of issues do not usually come from a lack of effort; they come from a lack of structure.

Why management skills often get overlooked

Management skills often fall down the priority list because time is tight and client or customer work comes first. Or it may be that managing people feels uncomfortable or unfamiliar.

However, not addressing how the business is managed means you can end up stuck in the day-to-day, with little capacity to focus on growing the business or carrying out long-term planning.

How improving management skills helps your business

Businesses with clearer management tend to:

Even small changes, such as regularly checking in with staff or having clearer task planning, can have a noticeable impact.

Practical ways to build management skills

Improving management does not require formal qualifications or years of experience. For many business owners, they make progress by:

Just like with any other part of the business, management can be learned and improved over time.

A final thought

Good management and proper controls are vital for business success. Having the best idea in the world is only half the story. It is management skills that will make the idea work and keep you and your staff happy along the way.

If you are new to being self-employed or being a landlord, Self Assessment can feel like one of those jobs you know you should understand better, but never quite get around to.

When do you actually pay the tax? Why does January seem to be so expensive? And what on earth is a “payment on account”?

In this article, we’ll walk you through how Self Assessment tax payments work in practice, the key dates to watch, and how to avoid nasty surprises by planning ahead.

Understanding Self Assessment payments

Once your tax return is completed and filed, HM Revenue & Customs (HMRC) calculate how much tax you owe on all income you have earned outside of PAYE. Unlike tax taken automatically from a salary, you are responsible for paying the tax yourself. That is why knowing the deadlines is crucial.

For most people, there are two main types of payments to make each year:

  1. Payment on account – This is essentially a prepayment for your next year’s tax. When your tax bill for a year is over ÂŁ1,000, HMRC will require you to make two equal payments on 31 January and 31 July. Think of it like a deposit on your tax bill.
  1. Balancing payment – This is the top-up for anything left over once your tax return is finalised and submitted. It’s due by 31 January following the end of the tax year.

For example, say your tax bill for 2023/24 was £3,000. You will likely have paid £1,500 on 31 January 2025 and another £1,500 on 31 July 2025 as payments on account. Then, if your tax bill for 2024/25 is £3,200, you will pay the £200 balancing payment on 31 January 2026. You will also pay a £1,600 payment on account against the next year’s tax bill on the same date, which means you would pay a total of £1,800 on 31 January 2026.

If you are new to Self Assessment, then you probably will not have made any payments on account for the first tax year that you file a tax return for. So, you will need to pay the full balance for the entire tax year on the 31 January following the tax year end.

In other words, if your tax bill for 2024/25 is £3,200, you’ll need to pay £3,200 on 31 January 2026. You’ll also pay a £1,600 payment on account against the next year’s tax bill on the same date, which means you’d pay a total of £4,800.

No wonder January can feel so expensive!

How to pay

Paying is straightforward once you know the methods.

These days most people pay online through their HMRC account by bank transfer or by debit card. You can also use the HMRC app to pay your bill through your bank’s app or by using online banking.

You just need the reference numbers to make sure the money goes to the right place.

Avoiding surprises

Late or missing payments can lead to penalties and interest charges, so planning ahead is essential. A good tip is to set up a calendar reminder so that you don’t forget to make the payment on time.

Keeping a separate pot of money for tax that you save each month can also prevent you from scrambling at the last minute.

If you need help completing your tax return or want advice on paying tax, please get in touch. We would be happy to help you!

See: https://www.gov.uk/government/news/65-rise-in-self-assessment-payments-via-the-hmrc-app

The Department of Work and Pensions (DWP) has confirmed that all key auto-enrolment pension thresholds will remain unchanged for 2026/27.

This means:

These thresholds determine which employees are eligible for automatic enrolment and the portion of earnings in respect of which contributions need to be made.

Employees who earn less than the earnings trigger can still opt in to their employer’s workplace pension. It’s important to remember that if they earn between the lower earnings limit and enrol, the earnings trigger a mandatory employer contribution.

With thresholds unchanged, this should mean there is no need to adjust your payroll systems or processes in the coming year.

If you would like support with your payroll system and auto-enrolment, please give us a call. We would be happy to help you!

See: https://www.gov.uk/government/publications/review-of-the-automatic-enrolment-earnings-trigger-and-qualifying-earnings-band-for-202627/review-of-the-automatic-enrolment-earnings-trigger-and-qualifying-earnings-band-for-202627

The Chancellor, Rachel Reeves, has requested the Office for Budget Responsibility (OBR) to publish an economic and fiscal forecast on 3 March 2026. This will be accompanied by a statement to Parliament.

As set out in the Budget, the Spring forecast will provide an interim update on the economy and public finances, rather than assessing the government’s performance against the fiscal mandate.

This means the forecast is unlikely to result in changes to tax policy, however, the full details will only be completely clear once the forecast is published and the Chancellor has responded. We will, of course, keep you updated once the forecast is published.

See: https://www.gov.uk/government/news/chancellor-announces-date-of-spring-forecast