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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
New Free HSE Tool Helps Employers Tackle Work-Related Stress
| 21-05-2025
Last week was Mental Health Awareness Week, and to mark the occasion, the Health and Safety Executive (HSE) launched a free online learning module to help
Don’t Miss Out: Parents of Teenagers Need to Extend Child Benefit by 31 August
| 21-05-2025
If you’re a parent of a 16 to 19-year-old who’s staying in full-time education or training, HM Revenue and Customs (HMRC) is reminding families to extend their Child
Interest Rates Cut, Trade Talks Shift – What It Means for Your Business
| 21-05-2025
In the last couple of weeks, the Bank of England cut interest rates from 4.5% to 4.25%, and a new ‘trade deal’ was announced between the UK and the US.
Helping Employees Save on Childcare: What Employers Need to Know
| 13-05-2025
With many families finding out where their child will be starting school this September, now is a good time for working parents to start planning childcare.
Cyber Attacks on Retail Giants: What Every Business Should Learn
| 13-05-2025
The recent wave of cyber attacks on UK retailers, including Marks & Spencer, Co-op and Harrods, is a reminder that no organisation is too big - or too
New Rules Aim to Curb Sudden Bank Account Closures
| 07-05-2025
From April 2026, banks and payment service providers will face stricter rules around how and when they can close customer accounts,
New Reforms Aim to Tackle the Growing Problem of Small Pension Pots
| 07-05-2025
The government has announced plans to address the growing issue of small, forgotten pension pots - a problem affecting millions of workers who change jobs frequently and accumulate multiple small pensions over time.
Raft of tax administration measures announced: How will these affect businesses and employers?
| 07-05-2025
James Murray, the Exchequer Secretary to the Treasury, made a Written Ministerial Statement last week that included a number of tax simplification, administration and reform measures. In total,
What the Latest IMF Forecast Means for Business Owners
| 29-04-2025
The International Monetary Fund (IMF) has predicted that the Bank of England could cut interest rates three more times this year, despite the UK facing higher-than-expected inflation.
Cyber Governance: Why Boards Need to Take the Lead
| 29-04-2025
For most businesses today, digital technology is fundamental to operations. With that comes the growing reality that cyber security is no longer just an IT issue

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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 £350,000 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

Last week was Mental Health Awareness Week, and to mark the occasion, the Health and Safety Executive (HSE) launched a free online learning module to help employers better understand and manage work-related stress in their teams.

The new resource is part of HSE’s Working Minds campaign, which aims to help businesses take practical steps to improve workplace mental health and meet their legal obligations.

Why does this matter to your business?

According to HSE, around half of all work-related ill health is down to stress, depression or anxiety. That’s a significant figure, and one that many business owners are likely to recognise – whether it’s seen in staff absence, reduced productivity, or just a general drop in morale.

Importantly, managing stress at work isn’t just good for your people – it’s also something the law expects employers to take seriously. As Kayleigh Roberts from HSE puts it: “Preventing work-related stress isn’t just the right thing to do for your workers – it’s also a legal requirement”.

The new module offers guidance in conducting effective risk assessments, identifying the root causes of work-related stress and implementing solutions.

Six key areas to watch

The HSE has identified six main areas that can cause stress at work if they’re not managed well: demands, control, support, relationships, role, and change.

A simple framework: The 5Rs

The module also builds on the Working Minds campaign’s 5Rs, a straightforward approach to managing stress:

Next steps

If you’re an employer, especially in a small business where everyone wears multiple hats, this is a helpful, free tool that can make a real difference to how you support your team.

To access the online learning module, you can register here.

See: https://press.hse.gov.uk/2025/05/12/hse-provides-free-online-learning-to-help-employers-tackle-work-related-stress/

If you’re a parent of a 16 to 19-year-old who’s staying in full-time education or training, HM Revenue and Customs (HMRC) is reminding families to extend their Child Benefit claim by 31 August to avoid the payments stopping altogether.

Why it matters

Child Benefit is worth up to £1,354.60 per year for your first child and £897 for each additional child. It’s a welcome boost for many families, but it won’t continue automatically once your child turns 16. Unless you confirm they’re still in approved education or training, payments will stop at the end of August following their 16th birthday.

With many teens finishing GCSEs this summer, now is the time to get this sorted.

How to extend your claim

It’s quick and easy to extend your Child Benefit online or via the HMRC app. If you’re eligible, you don’t need to wait for anything from HMRC, you can do it today. Alternatively, HMRC is sending out reminder letters between May and July that include a QR code to take you straight to the right page on GOV.UK.

What counts as approved education or training?

You’ll still qualify if your child is studying full-time in non-advanced education (like A-levels, NVQs up to level 3 or home education), or attending approved unpaid training. It doesn’t count if the course is part of a job contract.

Are you an employer? Here’s what to keep in mind

If you employ parents of older teenagers, this reminder might be helpful to share. It’s also worth being aware of changes coming for those affected by the High-Income Child Benefit Charge.

From this summer, families can now opt to pay this charge through their PAYE tax code instead of filing a Self Assessment return, a move designed to cut paperwork. This might reduce admin for some of your employees. You’ll just need to look out for any updates to their tax code for payroll processing.

What about families who opted out of Child Benefit?

If someone in your team previously opted out because of the High-Income Charge, it’s now easier to opt back in if circumstances have changed. They can restart payments through the app or website.

And don’t forget Child Trust Funds

If your teenager has recently turned 16, they can take control of their Child Trust Fund, which could be worth thousands of pounds. They’ll be able to withdraw the money once they turn 18.  If they’re not sure where it’s held, there’s a free online tool to track it down on GOV.UK.

Next steps

As always, if you have questions or aren’t sure how this might affect your personal or business situation, feel free to get in touch.

See: https://www.gov.uk/government/news/parents-of-teens-reminded-to-extend-child-benefit-claim-online

In the last couple of weeks, the Bank of England cut interest rates from 4.5% to 4.25%, and a new ‘trade deal’ was announced between the UK and the US. Let’s see what these news items can tell us about the latest developments in the economy.

Split opinions

At its meeting to discuss the Bank Base Rate, the Monetary Policy Committee (MPC) voted by a majority of 5-4 to reduce it to 4.25%. Two of the opposing members voted for reducing the rate to 4.0%, while the remaining two voted for keeping the rate at 4.5%.

This represents a wide range of opinion, which is perhaps to be expected given the uncertainty both domestically and globally in recent months. It could suggest that your guess is as good as ours on what direction the economy will take in the coming months.

Inflation and growth

At 2.6% in March, inflation is still above the Bank’s target of 2%. It was, however, a reduction from 2.8% in February and so is a step in the right direction.

Most tellingly, though, the MPC noted that this was close to their expectations in February. Perhaps this gives them added confidence in their predictions of how inflation is going to develop over the medium term.

The Bank believes that inflation will increase to 3.5% between July and September because of energy costs. However, the committee believes that inflation will fall back after that.

The latest growth figures showed 0.7% growth in the January-to-March period, stronger than the 0.6% that had been forecast. Critics point out that the period excludes the effects of the Chancellor’s increase in employers’ National Insurance Contributions.

This may mean that we should not expect big cuts to the base rate in the rest of 2025.

With many families finding out where their child will be starting school this September, now is a good time for working parents to start planning childcare. The government’s Tax-Free Childcare scheme can save them up to £2,000 a year per child – and this could be good news for employers as well as employees.

Why this matters for employers

Childcare is one of the biggest financial pressures for working families. By signposting Tax-Free Childcare, employers can support staff wellbeing, reduce financial stress, and make it easier for parents to return to or stay in work.

For every £8 a parent pays into a Tax-Free Childcare account, the government adds £2 – up to £500 every three months per child (or £1,000 if the child is disabled). The scheme can be used for a wide range of approved childcare, including:

This support applies to children aged 11 or under (or up to 16 if the child is disabled).

What employees need to know

To be eligible, the parent and their partner (if they have one) must:

Each eligible child needs their own account, and parents must reconfirm their details every three months to continue receiving the top-up.

A useful tool for returning parents

This scheme can be particularly helpful for parents returning to work after parental leave, or those increasing their hours. As many employees will be finalising childcare for September, now is a good time to raise awareness.

What employers can do

By promoting Tax-Free Childcare, you can show support for working families and may be able to reduce a barrier that helps you keep a valued employee.

See: https://www.gov.uk/government/news/save-up-to-2000-a-year-on-childcare-for-your-new-school-starter

The recent wave of cyber attacks on UK retailers, including Marks & Spencer, Co-op and Harrods, is a reminder that no organisation is too big – or too prepared – to be targeted. But while the headlines may focus on the big names, there are important lessons here for businesses of all sizes.

The National Cyber Security Centre (NCSC) is working with the affected businesses. In a recent statement they said they are not yet in a position to say if the attacks are linked. However, they are saying that they have insights and there is a lot they do know.

For instance, while not confirming any details, NCSC have commented and provided advice on press speculation that social engineering was used to target IT helpdesks. By impersonating support staff – or posing as employees locked out of their accounts – a hacker might use social engineering tactics to trick people into handing over login credentials and security codes.

It’s a disturbingly simple method, but one that works.

The takeaway? People, not just passwords, are your first line of defence.

In its latest guidance, the NCSC urges organisations to review their password reset processes – especially for senior employees who have access to sensitive parts of your network. That means thinking carefully about how identity is verified when someone calls the IT help desk. Is there a secondary check? Would a fraudster be spotted?

Some in the cyber community are even suggesting codewords to help authenticate real users. But that only works if it’s part of a broader culture of awareness, where staff are trained to question the unexpected, even if it sounds routine.

Small businesses aren’t immune

While the recent attacks have hit household names, the tactics used don’t discriminate by size. If anything, smaller businesses – often without dedicated cyber security teams – can be seen as easier targets. That’s why it’s essential for you to act now:

Organised or opportunistic?

The advice from NCSC seems to indicate that these recent incidents are not about high-tech hacking. It’s about gaining trust and then gaining access. This makes it vital to see cyber security not as an IT issue, but a business-wide responsibility.

NCSC have warned that online criminal activity is rampant and attacks like the ones experienced by high profile retailers are becoming more and more common. Businesses of all sizes need to be prepared. The best defence for most organisations starts internally – with stronger processes, clearer communication, and a healthy dose of scepticism.

Now is the time to ask: could this happen to us?

See: https://www.ncsc.gov.uk/blog-post/incidents-impacting-retailers

From April 2026, banks and payment service providers will face stricter rules around how and when they can close customer accounts, under new legislation aimed at improving transparency and giving people and small businesses more time to respond to account closures.

The changes mean that:

These new protections are expected to apply to contracts agreed from 28 April 2026, and are part of a wider government plan to give people and businesses more certainty and security when it comes to accessing banking services.

Why It Matters for Businesses

Small business owners in particular have raised concerns in recent years about accounts being shut down with little or no warning, often without a clear explanation. Clearly this is very disruptive and has left businesses with no time to complain or find a replacement bank.

The new rules should help to improve matters. There will however still be some exceptions – for example, where account closure is necessary for financial crime prevention.

Therefore, it’s worth being aware of these upcoming changes. While they don’t come into force until 2026, they could influence how banks handle account management going forward.

See: https://www.gov.uk/government/news/millions-of-people-and-businesses-protected-against-debanking

The government has announced plans to address the growing issue of small, forgotten pension pots – a problem affecting millions of workers who change jobs frequently and accumulate multiple small pensions over time.

Currently, there are around 13 million small pension pots in the UK, each worth ÂŁ1,000 or less. That number is growing by about one million a year. For savers, this means difficulty in keeping track of retirement savings and can mean paying multiple flat rate charges which leads to lower returns. Problems are caused for the pensions industry too; they estimate that the administrative costs of managing these small pots could be as much as ÂŁ225 million a year.

What’s Changing?

Under reforms being introduced through the Pension Schemes Bill, small pots will be automatically consolidated into a single pension scheme that meets certain standards – including providing good value for savers. Individuals will still have the right to opt out if they wish.

This “pot for life” approach is expected to:

How It Will Work

Key features of the proposed system include:

Industry Reaction

The proposals have received broad support from across the pensions sector. Organisations such as the Pensions and Lifetime Savings Association, Which?, and leading pension providers have welcomed the move, saying it will reduce complexity and help people get better outcomes from their savings. 

What to Watch For

The Pension Schemes Bill is due to be introduced to Parliament later this spring. If passed, it will mark a significant shift in how pensions are managed, particularly for workers with multiple jobs over their careers.

Employers may want to start reviewing how the reforms could affect their workplace schemes and communications with staff.

If you have pension pots with various providers, then there could be value in consolidating them even if their value is more than ÂŁ1,000.

See: https://www.gov.uk/government/news/1000-retirement-savings-boost-from-plans-to-bring-together-small-pension-pots

James Murray, the Exchequer Secretary to the Treasury, made a Written Ministerial Statement last week that included a number of tax simplification, administration and reform measures. In total, 39 measures were announced.

Many measures are intended to reduce burdens on employers and small businesses, whereas others are designed to modernise H M Revenue & Customs (HMRC) systems and processes.

Here are five highlights included among the measures announced.

  1. Delay to payrolling benefits

Mandatory payrolling of benefits in kind will now be delayed to April 2027 instead of April 2026.

Payrolling benefits is a way to report and tax employee benefits through the payroll system, rather than submitting them at the end of the tax year via form P11D. Currently, employers can voluntarily choose to payroll benefits, however the government intends for this to become mandatory.

Delaying the introduction of mandatory payrolling of benefits will give employers more time to prepare. In addition, HMRC will work to make sure that the new requirements are easy for employers to implement.

  1. Simplification to Capital Goods Scheme

The VAT Capital Goods Scheme (CGS) makes you adjust how much VAT you can reclaim on expensive items like buildings or equipment if how you use them changes over time – especially if you move between taxable and exempt activities.

While no date has been mentioned yet, new legislation will be put forward to remove computers from the assets covered by the scheme. The capital expenditure value of land, buildings and civil engineering work at which CGS begins to apply will be increased to ÂŁ600,000 (excl. VAT) from its current level of ÂŁ250,000 (excl. VAT).

This will be a welcome simplification for affected businesses.

  1. Updates to Check Employment Status for Tax (CEST) Digital Tool

HMRC is making this tool easier to use, and updates to the tool may have been made by the time you are reading this.

These are accessibility changes only though. How the CEST tool works out if a worker is self-employed or employed is not being changed.

This is unfortunate as there are occasions where the determination the CEST arrives at is not necessarily accurate. If you would like a second opinion about the results of a check you have carried out, please contact us and we would be happy to help you.

  1. VAT Treatment of Business Donations of Goods to Charity

The government is to begin a consultation on the VAT treatment of business donations of goods to charity.

The consultation will look at what types of goods are donated, how they are distributed, and if there is scope to make adjustments that will balance preventing tax evasion with avoiding burdensome administration requirements.

The consultation is available to view here.

  1. Less paper in the post

HMRC is aiming to reduce the amount of paper correspondence it sends out, and use digital formats instead. It expects to be able to save ÂŁ50 million in print and postage costs annually by the 2028-29 tax year.

Therefore, we should begin to see fewer letters from HMRC arriving in the post as they make use of online methods. Certain critical correspondence will continue to be sent by paper post, and promises have been made not to abandon those who are unable to access correspondence by digital means.

If you are affected by these or any other measures announced in the Tax Update Spring 2025 announcement, please call us and we will be happy to help you understand how your personal situation is affected and what you need to do.

To review the Exchequer Secretary’s statement in full, please see: https://questions-statements.parliament.uk/written-statements/detail/2025-04-28/hcws607

The International Monetary Fund (IMF) has predicted that the Bank of England could cut interest rates three more times this year, despite the UK facing higher-than-expected inflation.

Inflation in the UK is now forecast to be 3.1% for 2025 – the highest among advanced economies – largely driven by higher utility and energy bills. However, the IMF believes this spike will be temporary, paving the way for further rate reductions. It expects inflation to fall back to 2.2% by 2026, close to the Bank of England’s long-term target.

For business owners, potential rate cuts offer both opportunities and challenges:

The IMF also downgraded its growth forecast for the UK economy in 2025 from 1.6% to 1.1%, reflecting the impact of global trade tensions, particularly from new US tariffs. While this is a slowdown, it still places the UK ahead of France, Italy, and Germany.

The message for businesses is clear: while interest rate cuts could support borrowing and investment, ongoing cost pressures and global instability mean careful financial management and resilience planning remain essential.

See: https://www.bbc.co.uk/news/articles/cy9vy7yq849o

For most businesses today, digital technology is fundamental to operations. With that comes the growing reality that cyber security is no longer just an IT issue – it’s a business owner and board-level responsibility.

Managing cyber risks effectively is now as essential as managing financial, legal, or operational risks. Increasingly complex supply chains and evolving threats make strong cyber governance critical not just for resilience, but for business continuity and sustainable growth.

To provide support in this area, the National Cyber Security Centre (NCSC), working alongside the Department for Science, Innovation and Technology (DSIT) and industry experts, has developed a set of resources.

While these resources have not been specifically designed for smaller businesses, the practical insights contained in the guidance can be useful to businesses of all sizes.

The resources are split as follows:

These tools are designed to be practical, with input from organisations like NEDonBoard to ensure relevance for board members.

While many businesses will already have some cyber security measures in place, these resources aim to help boards review whether governance structures are sufficiently robust – and, if necessary, strengthen them.

Good cyber governance is not just about compliance; it can also improve resilience of your business, protect your reputation, and put you in a better position for growth in a digital economy.

To review the guidance, see: https://www.ncsc.gov.uk/cyber-governance-for-boards/overview