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Earning Extra Income? You Might Need to File a Tax Return – Here’s What to Know
| 30-06-2025
If you earn extra income from a side hustle, you could be legally required to register for Self Assessment and complete a tax return - and it’s better to get
Ten Years of Free Companies House Data – and How It Can Help Your Business
| 30-06-2025
Last week marked ten years since Companies House made all digital company data freely available through its online service on GOV.UK.
Inflation Falls Slightly to 3.4% for May
| 25-06-2025
According to the latest figures released by the Office for National Statistics, the main rate of inflation decreased from 3.5% in April to 3.4% in the year to May. Looking at the figures behind the headline rate shows that food prices
New Small Business Commissioner Appointed to Tackle Late Payments
| 25-06-2025
Emma Jones CBE, founder of Enterprise Nation, has been appointed as the new Small Business Commissioner. Taking up the role on 23 June 2025, Jones succeeds Liz Barclay and will lead efforts to address late payments
Should You Own a Property Through a Company – or Personally?
| 25-06-2025
If you're considering buying a property, especially as an investment, one of the key decisions you'll face is whether to hold it personally or through a limited company. This choice can have long-term tax, financial, and
How to Protect Sensitive Personal Information
| 17-06-2025
The National Cyber Security Centre (NCSC) has published new guidance to help businesses identify and protect against the risks of holding sensitive personal information. The guidance can help you to understand what
New Digital Hub for Technology Procurement
| 17-06-2025
The UK government has announced a new digital marketplace that will change the way the public sector buys technology. Plans are for the digital hub,
Tax-Free Childcare: Are You Benefiting?
| 17-06-2025
HM Revenue and Customs (HMRC) have released their latest figures on the take-up of Tax-Free Childcare. For the 2024-25 tax year, almost 826,000 families saved up to ÂŁ2,000 per child. During March 2025, 579,560 UK
Hiring Slows as Costs Rise
| 17-06-2025
New data from the Office for National Statistics suggests that UK businesses are continuing to slow down recruitment, with job vacancies falling by 63,000 between March and May. While this doesn’t indicate a full-blown
Spending Review 2025: Takeaway Points for Your Business
| 17-06-2025
Last week, the Chancellor unveiled her Spending Review setting out how government departments will allocate money over the coming years. While much of the focus
Emissions Cutting Trial to Benefit Hospitality Businesses
| 10-06-2025
The government has published details of a new emissions cutting trial that could benefit UK pubs, cafes, restaurants and hotels. The Zero Carbon Services Hospitality
Named and Shamed: Employers Failing to Pay Minimum Wage
| 10-06-2025
In its latest round of investigations, HM Revenue and Customs (HMRC) have named 518 employers who have failed to pay the National Living or National Minimum Wage correctly to their staff.
Changes to Planning Rules Could Make Life Easier for Small Housebuilders
| 03-06-2025
The government has set out new plans aimed at helping small and medium-sized housebuilders get projects moving faster and with fewer hurdles. For housebuilders
FSB Updates Guidance on Employers’ Liability Insurance
| 03-06-2025
The Federation of Small Businesses (FSB) has recently updated its guidance on Employers’ Liability insurance - a useful reminder of the rules and risks around a business insurance
When is Diversification a Good Business Strategy?
| 03-06-2025
It’s long been said that putting all your eggs in one basket is risky. Many small business owners may fear that risk of becoming a reality. Take the UK’s farming sector as an example. Faced with extreme weather, policy
Are you thinking of starting a business?
| 27-05-2025
If you're considering starting a business, there’s a lot to think about - especially when it comes to finances, tax and compliance. From choosing the right structure (sole trader, partnership or limited company) to registering
New Buy-Now, Pay-Later Rules Announced
| 27-05-2025
From next year, Buy-Now, Pay-Later (BNPL) firms will need to work within a stricter regulatory framework. Following last year’s consultation, the government has now laid legislation before Parliament to bring BNPL under
Inflation Rises to 3.5% as Household Bills and Business Costs Increase
| 27-05-2025
UK inflation rose to 3.5% in April, according to official figures, up from 2.6% in March and higher than many economists had expected. This is the highest

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If you earn extra income from a side hustle, you could be legally required to register for Self Assessment and complete a tax return – and it’s better to get ahead of it now, rather than wait until the January deadline. The threshold is simple: if you earn more than ÂŁ1,000 in a tax year from any additional income, you may need to file. This applies whether you’re selling online, renting out property, freelancing, creating content, dog walking, tutoring, or even trading cryptoassets. Why Act Now? Filing early means you: You don’t need to pay immediately – the deadline for payment is still 31 January 2026 for the 2024-25 tax year – but getting your return done early gives you options and avoids surprises. Many people running side hustles or earning income outside of employment simply don’t realise that tax rules apply – until it’s too late. If you’re unsure whether you need to file, or want help staying compliant, get in touch with us. We’ll guide you through what’s required and make it as straightforward as possible.

Last week marked ten years since Companies House made all digital company data freely available through its online service on GOV.UK. Since launching on 22 June 2015, the Find and Update company information tool has become one of the UK’s most heavily used public data services, with over 16.5 billion searches carried out in 2023-24 alone.

The data includes details on every UK-registered company – such as directors, financial filings, registered addresses, filing history, and company status. It’s used every day by lenders, investors, regulators, law enforcement, and businesses of all sizes to make informed decisions.

How This Data Can Help You Run and Grow Your Business

As your accountant, we regularly use Companies House data behind the scenes – but it’s also a powerful tool that you can use to support growth, reduce risk, and manage your operations more effectively.

Here are some practical ways it can benefit your business:

What’s Next?

The data is about to become even more reliable. New reforms under the Economic Crime and Corporate Transparency Act will introduce mandatory identity verification for directors and other checks to improve accuracy.

If you’re unsure how to make the most of this information or would like help integrating it into your processes – from onboarding checks to competitor tracking – let’s talk. We’re here to help you use every tool available to support the health and growth of your business.

See: https://www.gov.uk/government/news/companies-house-celebrates-10-years-of-open-data

According to the latest figures released by the Office for National Statistics, the main rate of inflation decreased from 3.5% in April to 3.4% in the year to May.

Looking at the figures behind the headline rate shows that food prices have increased for the third month in a row. At 4.4%, this represents the highest inflation rate for food since February 2024.

Some feel that these increases are because businesses are passing on the costs of April’s increase in employer’s national insurance.

However, this is not the only factor at play. Prices for chocolate have increased by 17.7% in the year to May. This is primarily due to bad harvests in areas that produce cocoa meaning that stocks of chocolate have been low and pushing prices up.

The figures showed some good news though in the form of cheaper travel prices.

While inflation had reduced in the earlier part of the year, the current figures show that inflationary pressures continue to be felt.

See: https://www.bbc.co.uk/news/articles/c5ygdqp922vo

Emma Jones CBE, founder of Enterprise Nation, has been appointed as the new Small Business Commissioner. Taking up the role on 23 June 2025, Jones succeeds Liz Barclay and will lead efforts to address late payments and improve payment practices across the UK.

The role of the Small Business Commissioner was created to support the UK’s 5.5 million small businesses, particularly in their dealings with larger firms. Late payment remains a persistent issue for small business owners and the self-employed. Recent research from Intuit QuickBooks found that, on average, SMEs were owed £21,400 in late payments during 2024.

During Liz Barclay’s tenure, the Fair Payment Code was launched in December 2024. The code encourages businesses to commit to faster and fairer payment practices, and over 300 businesses have already signed up. Barclay also helped shape upcoming proposals for further legislation aimed at improving payment terms – with a major consultation expected later this year.

The new Small Business Commissioner said: “Having done it myself, I know the commitment it takes to start and grow a successful business.”

In her new role, Jones is expected to continue developing practical tools and guidance to help small businesses resolve payment disputes and access support.

See: https://www.gov.uk/government/news/government-appoints-emma-jones-cbe-as-new-small-business-commissioner-to-help-tackle-late-payments

If you’re considering buying a property, especially as an investment, one of the key decisions you’ll face is whether to hold it personally or through a limited company. This choice can have long-term tax, financial, and administrative implications, and there’s no one-size-fits-all answer.

Here’s a look at some of the main considerations.

Tax on Profits

One of the most common reasons people use a limited company is the difference in how profits are taxed.

If you own a property personally, rental profits are taxed as income. If you are a higher-rate taxpayer that could mean a tax rate of up to 45%. Mortgage interest relief is also restricted under current rules, meaning higher-rate taxpayers can no longer deduct all their finance costs.

With a limited company, rental profits are subject to corporation tax, and all mortgage interest can be treated as a business expense.

However, if you want to take money out of the company, usually done through dividends or salaries, there is likely to be further tax to pay. So, the benefits depend on what you plan to do with the income.

Tax on Selling the Property

If the property is sold at a profit, there are differences in how Capital Gains Tax (CGT) applies.

Individuals have a CGT tax-free allowance with the rate of tax paid depending on their income and the property type. Companies on the other hand simply pay corporation tax on the gain. However, companies have no tax-free allowance and there can be different rules that apply to how the gain is calculated.

Again, the right route depends on your plans – whether you’re building long-term wealth inside a company or want easier access to the proceeds personally.

Mortgage Availability and Costs

Getting a mortgage through a limited company can be more complicated and is often more expensive, with fewer lenders and potentially higher interest rates. Lenders will also usually require a personal guarantee from the directors.

Administrative and Legal Responsibilities

A company comes with extra administrative and legal responsibilities. There’s filing annual accounts, confirmation statements, corporation tax returns, and keeping proper records that all need to be considered. If you already run a company, this might not be an issue, but if not, it’s important you factor in the time and cost.

Inheritance and Succession Planning

Owning property through a company can offer more flexibility in passing wealth on to family members. Shares in a company can be gifted or passed on more easily than physical property – though care is still needed because of tax implications.

So What’s Best?

The best option depends on your goals: whether you need the income now, plan to reinvest profits, want to keep things simple, or are thinking long-term about passing assets to others. There’s no single answer – and the rules can change over time.

We have a ‘Property – in or Out?’ tool that we can use to help you determine whether it is better for you to own property inside or outside of a company. If you’re unsure which route suits you best, this tool is a great place to start. Please get in touch and we would be happy to help you!

The National Cyber Security Centre (NCSC) has published new guidance to help businesses identify and protect against the risks of holding sensitive personal information.

The guidance can help you to understand what sensitive personal information is and identify any that your business holds. It also provides some principles that, if applied, can reduce risks from holding that data.

Here’s a brief review of the guidance.

What is Sensitive Personal Information?

NCSC explains that there is no formal definition of what sensitive personal information (SPI) is. They explain that it’s necessary to consider possible risks that are associated with sensitivities in information you hold about individuals. For instance, would a compromise of that information increase the risk of harm, harassment or prejudice to the individual.

Examples might include an individual’s profession, their personal life characteristic, or their status.

Assessing the Risks

The guidance advises that the severity of the impact that could arise from misuse of the data should be used to determine how strong your data protections will be. NCSC cover a few questions that can help you in making your assessment.

Nine Principles

NCSC provide nine principles that can help protect SPI as well as some example measures you can use. The principles are:

  1. Understand what data you have and the risks to it.
  2. Ensure only appropriate access to sensitive data.
  3. Ensure you know who is accessing data which contains SPI.
  4. Make sure access to sensitive data cannot be misused.
  5. Avoid putting too much sensitive data together.
  6. When merging data, check if SPI becomes exposed.
  7. When sharing data, check if SPI becomes exposed.
  8. Ensure that the records of individuals with SPI do not appear to be stored, processed or handled differently to those without such sensitive data.
  9. Keep access controls to SPI separate from routine data access controls.

Final Thoughts

Cyberattacks seem to be on the increase and a data breach can have serious consequences to a business. This may particularly be the case if the business is holding sensitive personal information about individuals.

Besides fines and penalties from the Information Commissioner’s Office, there is also loss of customer trust, disruption to your business operations, costs of recovery and potential legal claims from customers or clients whose data was compromised.

If you hold sensitive personal information in your business, reviewing NCSC’s new guidance could be well worth your time.

See: https://www.ncsc.gov.uk/collection/security-principles-protecting-most-sensitive-personal-information-in-datasets

The UK government has announced a new digital marketplace that will change the way the public sector buys technology.

Plans are for the digital hub, which is still in early development, to help public sector organisations be able to benefit from collective buying power. The hub will also use AI to match organisations with suppliers based on their needs.

A recent State of Digital Government report showed that although many public sector organisations use similar tools, they source and negotiate contracts on an individual basis. The new digital marketplace will give users the ability to rate and review the technology they use, allowing other users to benefit from shared collective experiences.

What Could This Mean for Tech Suppliers?

The new digital platform is being created under the revised Procurement Regulations. A “digital playbook” detailing best practice in purchasing decisions is also being developed to help with public sector procurement.

Tech businesses who are, or would like to be, involved in public sector contracts will want to keep an eye on developments.

See: https://www.gov.uk/government/news/one-stop-shop-for-tech-could-save-taxpayers-12-billion-and-overhaul-how-government-buys-digital-tools

HM Revenue and Customs (HMRC) have released their latest figures on the take-up of Tax-Free Childcare.

For the 2024-25 tax year, almost 826,000 families saved up to ÂŁ2,000 per child. During March 2025, 579,560 UK families used the scheme, a 16% increase on the number using the scheme in March 2024.

What is Tax-Free Childcare?

The Tax-Free Childcare scheme allows parents to deposit money in a Tax-Free Childcare account, where the government provides a 25% top-up up to a maximum of ÂŁ2,000 per child (or ÂŁ4,000 if the child is disabled). For example, if parents deposit ÂŁ8, the government provides a ÂŁ2 top up.

The money held on deposit can be used whenever needed to pay for childcare.

Who is Eligible?

Eligibility for the scheme is based on families:

Families also cannot be receiving Universal Credit or childcare vouchers to qualify.

The Scheme May Benefit Employers Too

If you are an employer with staff who are parents, making them aware of this scheme may help to ease the financial burden of childcare for them. This could promote their wellbeing but also reduce the chances of you losing trained and valuable members of your team.

The scheme may also help parents in returning to work after having a child, allowing the business to continue to benefit from the experience and training you have invested in them.

For further information about Tax-Free Childcare and how parents can register, see: https://www.gov.uk/tax-free-childcare

New data from the Office for National Statistics suggests that UK businesses are continuing to slow down recruitment, with job vacancies falling by 63,000 between March and May.

While this doesn’t indicate a full-blown jobs crisis, it’s a clear sign that the labour market is cooling. The unemployment rate rose to 4.6% (from 4.5%), the highest it has been in nearly four years.

What’s Driving the Change?

Rising employment costs are a big factor. From April, employers have had to pay higher National Insurance contributions, and the national minimum wage has gone up too. The figures suggest that these changes are affecting how businesses manage staffing.

According to the ONS, some employers are choosing not to replace staff when they leave or are putting off recruiting new workers altogether.

While average wage growth between February and April slowed slightly to 5.2%, it still outpaces inflation, which rose to 3.5% in April. This suggests that although wage pressure is slowing, employers still need to carefully manage pay expectations.

What This Means for Your Business

If you’re finding recruitment more difficult or too expensive, the figures suggest that you’re not alone.

This could be a good time to:

If you need help with reviewing your staffing strategy or payroll planning, please give us a call. We would be happy to help you!

See: https://www.bbc.co.uk/news/articles/cp92edelzero

Last week, the Chancellor unveiled her Spending Review setting out how government departments will allocate money over the coming years. While much of the focus was on large-scale public services like the NHS and schools, there are some important signals here for businesses to take note of – both in terms of opportunity and outlook.

Zero-based Review

A theme of the review was scrutiny. The Chancellor described the exercise as a “zero-based” review – meaning department budgets were built from scratch, rather than from making changes to what was already in place. The aim, according to the government, was to focus spending only where it delivers value for money.

This may strike a chord with you as a business owner. As you plan for upcoming months, there’s something to be said for taking a zero-based approach yourself.

You could do this by questioning whether each cost is still serving the business. This may help you see areas where reallocating funds could help the business grow or be more efficient.

Everyone is Under Pressure with Costs

Public sector pay rises in education and healthcare are being part-funded through expectations of increased “productivity” in those sectors.

This provides a reminder that cost pressures are widespread and efficiency will be a watchword in public contracts and procurement. If you supply to public sector organisation, you may need to be prepared for closer scrutiny of your prices and performance.

Increases in Capital Investment

Elsewhere, the review confirms increased capital investment in areas like transport infrastructure and social housing. Over time, this may bring new opportunities for construction and related industries. However, spending will be spread over a long period.

Similarly, investment in AI, tech and scientific infrastructure (including a new supercomputer in Edinburgh) could create demand for highly specialised services, but the benefits may take time to filter through.

Speeding Up Infrastructure Projects

The Chancellor also flagged changes to the way the Treasury evaluates infrastructure projects, promising a more modern approach. This might affect which types of projects get greenlit and how quickly – something worth watching if you’re bidding for public contracts or working in the built environment.

Final Thoughts

While headlines may focus on big numbers and high-level priorities, the underlying message of this Spending Review is relevant for businesses of all sizes: pressure on budgets, rising expectations of value, and a focus on getting more from what’s already being spent.

If you’d like help reviewing your own budgets or planning for the year ahead, we’re here to support you.

See: https://www.bbc.co.uk/news/articles/clyr170qm19o

The government has published details of a new emissions cutting trial that could benefit UK pubs, cafes, restaurants and hotels.

The Zero Carbon Services Hospitality Trial will run from May 2025 until March 2026 and has been provided with ÂŁ350,000 of funding. The trial will put hospitality business owners in direct contact with the expertise of trusted energy and sustainability advisers.

Could the trial be worthwhile?

It is estimated that the average pub loses £2,000 a year through energy waste. Making some gains in energy efficiency could have a real impact on the business’ bottom line.

What will the trial involve?

A total of 615 small and medium-sized businesses will be offered support during the trial. Experts will help to show where energy is being wasted and how to fix it. For instance, the scheme will help businesses in making changes such as fixing insulation gaps, upgrading to low energy lighting, and tweaking heating settings.

Businesses will receive a tailored Carbon Reduction Plan as well as having a Carbon Coach. Businesses that take part will receive around seven hours of support each month over a 3-month period.

Register your interest

If you are in the hospitality sector and are interested in receiving this support, you can register your interest and apply on the Zero Carbon Company’s website.

See: https://www.gov.uk/government/news/britains-hospitality-sector-to-save-3-million-under-new-scheme

In its latest round of investigations, HM Revenue and Customs (HMRC) have named 518 employers who have failed to pay the National Living or National Minimum Wage correctly to their staff.

A total of ÂŁ7.4 million will be paid by these employers to almost 60,000 workers. In addition, the employers face financial penalties of up to 200% of the amount they underpaid.

HMRC accepts that not all minimum wage underpayments are intentional, however it is clear that they will take enforcement action wherever they find employers are not paying staff correctly.

The government has provided a resource for workers to check what they are being paid and are encouraging them to use this. Support is also available from Acas.

What does this mean for employers?

Where you employ staff, it’s key that you make sure that all your staff are at least paid the National Living or National Minimum Wage rate that applies to them.

This is not always straightforward as there can be several factors to consider. It’s advisable to check the guidance each time you take on a new employee. Some common errors employers make include:

Rates for 2025/26

Beginning 1 April 2025, the National Living and National Minimum Wage rates are as follows:

Rate per hour
National Living Wage (21 and over) ÂŁ12.21
18 to 20 ÂŁ10.00
Under 18 ÂŁ7.55
Apprentice ÂŁ7.55

If you need any help with paying your staff the correct amount or understanding how the Minimum Wage legislation applies, please get in touch at any time. We would be happy to help you!

See: https://www.gov.uk/government/news/over-74-million-put-back-in-working-peoples-pockets-by-employers

The government has set out new plans aimed at helping small and medium-sized housebuilders get projects moving faster and with fewer hurdles. For housebuilders that have found themselves stuck in a slow, expensive planning process for a small site, these changes might be of interest.

What’s Changing?

Right now, building a site of 10 homes can involve the same level of planning red tape as a site with 100. That’s long been a frustration for smaller developers, and it’s one of the things this package of reforms is trying to fix.

The proposals include plans for small developments (up to nine homes) to benefit from faster decisions made by planning officers, rather than going through a full planning committee. Some of the biodiversity requirements will also be simplified, which should reduce costs and paperwork.

For slightly bigger sites (10 to 49 homes), there’s a new middle category being proposed. These ‘medium’ sites may be exempt from things like the Building Safety Levy and will face more straightforward rules around biodiversity and other requirements.

What Else Is on Offer?

The government has also announced further support it intends to provide to make it easier for smaller firms to access land and finance. Plans include:

There’s also extra funding for councils to speed up environmental assessments and to support innovation in small site delivery, and a consultation on reforming planning committees has also been announced.

What Does This Mean for You?

If you’re running a small building firm or planning a development on a modest site, you may be able to look forward to:

Of course, a lot still depends on how these changes are rolled out locally and whether the promised funding and support are easy to access in practice.

What You Might Want to Do Next

It could be a good time to review any sites you’ve written off in the past – some may become more viable if planning becomes less of a slog.

Take a look at where you currently stand financially, particularly in terms of your access to finance for development projects. You might want to:

The idea is to make sure you’re in a good position to move quickly as and when funding opportunities open up – for example, by having updated accounts, a clear business plan, or some potentially viable sites in mind. The new funding routes may move fast or be competitive, so being prepared could make a difference.

If you’d like a second opinion on how these changes might affect your business or some help reviewing your financial position, feel free to get in touch and we’d be happy to have a chat.

See: https://www.gov.uk/government/news/government-backs-sme-builders-to-get-britain-building

 

The Federation of Small Businesses (FSB) has recently updated its guidance on Employers’ Liability insurance – a useful reminder of the rules and risks around a business insurance that is legally required in the UK.

The guidance explains that if you employ anyone – including part-time, temporary, or even volunteer staff – you are likely required by law to have this cover in place. It’s there to protect businesses should an employee become ill or injured because of their work and the employer is found legally responsible.

What the FSB Highlights

The updated guidance gives practical examples of when this insurance might apply, such as:

The costs of such claims can be significant. As the FSB notes, legal fees and compensation payments can run into tens of thousands of pounds, potentially enough to put a small business under real pressure.

The guidance also clarifies:

Exemptions and Edge Cases

The FSB outlines a few cases where the cover may not be required: for example, some family businesses or sole traders without staff. But these are quite limited and the guidance suggests most businesses with paid staff will need the insurance.

Worth Reviewing

The FSB guidance could serve as a useful prompt for you to review your insurance arrangements, particularly if your staffing or business structure has changed recently.

You can find the full guidance on the FSB website.

It’s long been said that putting all your eggs in one basket is risky. Many small business owners may fear that risk of becoming a reality.

Take the UK’s farming sector as an example. Faced with extreme weather, policy shifts and volatile prices, farmers have increasingly turned to other sources of income to keep their businesses viable. According to a recent BBC news article, nearly three-quarters now run at least one non-farming enterprise – anything from glamping to beauty salons to wedding venues.

It’s not just farming where this lesson applies: when your main income stream becomes unpredictable or limited, diversification can help stabilise your business.

What does diversification look like?

In business terms, diversification means creating additional income streams that don’t rely on your core product or service. That could include:

At its best, diversification adds resilience. It spreads your risk and gives you more ways to grow. But it’s not just a fallback – it can also uncover new markets and help your business grow in a way that may not have been possible otherwise.

When is the right time to diversify?

Here are a few signs that it might be worth considering:

A few things to keep in mind

It’s usually best to start small. You don’t need to go all in. You could try testing a new idea alongside your main business to see what works.

Try to build on what you already do or have. It’s usually easier, more cost-effective, and more likely to succeed than starting something completely new from scratch.

It’s important to be realistic about the time and costs that will be involved. Any new venture will need your attention. Make sure it’s worth the effort and doesn’t distract from what’s already working for you.

Final thought

Diversification isn’t just about chasing trends. It’s about making your business more adaptable and more resilient. For some businesses, diversifying is not just a bolt-on. In a changing economy, it can be what keeps the whole business afloat.

If you’re considering your business strategy, why not give us a call? We would be happy to help you review and appraise the options available to your business.

If you’re considering starting a business, there’s a lot to think about – especially when it comes to finances, tax and compliance. From choosing the right structure (sole trader, partnership or limited company) to registering with HM Revenue and Customs (HMRC), keeping proper records and understanding your tax responsibilities, it’s important to get things right from the start. You may want to consider:

To help you navigate all of this, ask us for your free copy of our New Business Kit for 2025/26. This practical guide has been updated for the latest tax year and covers all the key financial, tax and accounting areas you need to consider when setting up a business. It’s designed to give you a clear overview, with straightforward explanations to help you feel more confident in your decisions.

If you’re in the early stages of planning – or even just testing an idea – it’s a great place to start.

Please get in touch if you’d like a copy of the New Business Kit or to speak to us about your plans.

From next year, Buy-Now, Pay-Later (BNPL) firms will need to work within a stricter regulatory framework. Following last year’s consultation, the government has now laid legislation before Parliament to bring BNPL under formal regulation, aiming to end what’s been called the “wild west” of unregulated borrowing.

BNPL refers to a type of interest-free instalment credit that allows the borrower to split their purchase cost into regular repayments within a 12-month period and in 12 or fewer instalments.

This type of credit is currently unregulated, which means the businesses offering them are not overseen by the Financial Conduct Authority (FCA), nor do they have to comply with the Consumer Credit Act 1974’s requirements. Klarna, Clearpay and Paypal Pay in 3 are examples of third-party providers that many businesses partner with to provide a BNPL option at checkout to their online customers.

What’s changing?

BNPL has grown rapidly in recent years, with millions now using it as a way to spread the cost of purchases. But concerns have grown around affordability, lack of clear terms, and delays in processing refunds. The new rules aim to change that by:

At the same time, the government is reforming the outdated Consumer Credit Act to remove outdated and confusing rules, with oversight of all credit types covered by the Act shifting to the Financial Conduct Authority (FCA). This move is expected to reduce red tape while strengthening consumer protections.

What does this mean for your business?

If your business uses a third-party BNPL provider, these changes will likely affect how those services are delivered and what your customers experience at checkout. Here’s what to be aware of:

Overall, these changes aim to build trust in BNPL – and that could benefit businesses that use it as a flexible payment option to drive sales. Now is a good time to review how your BNPL partner operates and whether any changes are needed to keep up with the new rules.

See: https://www.gov.uk/government/news/new-rules-to-end-buy-now-pay-later-wild-west-protect-millions-of-shoppers-and-drive-growth

UK inflation rose to 3.5% in April, according to official figures, up from 2.6% in March and higher than many economists had expected. This is the highest annual rate in more than a year and comes at a time when both households and businesses are facing a mix of rising costs.

The increase was largely driven by higher water, gas and electricity bills, many of which rose on 1 April. Water and sewerage prices alone increased by over 26%, the sharpest rise in nearly four decades. Airfare and holiday prices also jumped compared to last year, though that rise is expected to be temporary due to the timing of Easter.

For businesses, April also brought higher running costs, including the rise in the National Minimum Wage and an increase in employer National Insurance contributions, both of which are believed to have contributed to a rise in services inflation, which reached 5.4%.

Core inflation – which excludes volatile food and energy prices – also came in higher than expected, suggesting price pressures are more widespread than a few short-term changes.

The Bank of England’s inflation target remains at 2%, and before April’s figures, many were expecting two further interest rate cuts this year. However, some economists now believe only one may happen, with the Bank likely to take a more cautious approach.

In its last report, the Bank of England outlined its expectations that inflation would peak at 3.7% later this year before slowly easing. However, the Bank’s Chief Economist, Huw Pill, recently said that he feared the momentum behind falling inflation had started to stutter.

For now, many businesses will need to manage the impact of higher wage and operating costs alongside ongoing uncertainty over interest rates and consumer confidence.

When costs are rising it is crucial to understand how they are likely to affect your business profitability. If you would like help in analysing your business costs and advice on how to maintain profitability, please get in touch at any time. We are here to help you! See: https://www.bbc.co.uk/news/articles/cx2xx4n1xx0o