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Online marketplaces and vape producers to help fund recycling costs
| 17-12-2024
The UK Government has announced new measures to ensure online marketplaces and vape producers contribute fairly to the costs of recycling electrical waste. Circular Economy Minister Mary Creagh revealed the plans
Spread the cost of your Self Assessment tax bill with HMRC’s Time to Pay
| 17-12-2024
With the holidays and end of the year fast approaching, it’s a good time to plan your finances for the new year. For those who file Self Assessment tax returns, the prospect of having to make a heavy tax payment at the
New reporting requirements for online platforms
| 10-12-2024
New changes come into effect from January 2025 where online platforms, such as eBay and Airbnb, will start sharing some user sales and personal data with HM Revenue and Customs (HMRC). Although these reporting
Better finance access for disabled entrepreneurs
| 10-12-2024
In the runup to Small Business Saturday last week, a new Disability Finance Code was launched. Research indicates that if opportunities were improved for disabled founders, it could unlock an additional ÂŁ230 billion for
New Fair Payments Code launched
| 10-12-2024
The government’s promised new Fair Payments Code was launched last week to try and tackle late payment problems that can be particularly harmful to small businesses. The code introduces a gold, silver, and bronze
Salary vs dividends: The best way to extract profit in 2025/26
| 10-12-2024
If you trade as a limited company, then you will likely know that balancing salary and dividends is key to extracting profit from your company in the most tax-efficient way. Both methods have distinct implications. and the
Pensions for the self-employed: What you need to know
| 09-12-2024
Saving for retirement can feel daunting for many self-employed people. Without the workplace schemes that salaried workers often rely on, self-employed individuals must take proactive steps to secure their financial
Addressing work-related ill health and injuries: Are there practical steps you can take? 
| 03-12-2024
The Health and Safety Executive’s (HSE) recently released annual statistics for 2023/24 reveal the challenges being faced by employers in managing
Be wary of Self Assessment scams
| 03-12-2024
HM Revenue and Customs (HMRC) have issued a reminder to be careful about scam attempts that target people filing Self Assessment tax returns. In the last year, nearly 150,000 scam attempts were referred to HMRC,
Business rates reforms continue: What it means for you 
| 26-11-2024
The government has now published the legislation to deliver the business rates changes announced in the recent Budget. These reforms, set to take effect from the 2026/27 tax year, are designed to create a more
New UKEF guarantee boosts opportunities for UK engineering, design and technical services firms 
| 26-11-2024
UK Export Finance (UKEF), the UK’s export credit agency, has launched a new initiative aimed at helping British engineering,
Inflation on the rise: What October’s figures mean for businesses 
| 26-11-2024
The latest inflation figures from the Office for National Statistics (ONS) reveal that the Consumer Prices Index (CPI) for October 2024 rose to 2.3%, up from 1.7% in September. This marks the first increase in inflation since July,
Important Tax Changes for Double Cab Pick-Ups (DCPU)
| 19-11-2024
The Autumn Budget 2024 announced that double cab pick-up trucks with a payload capacity of at least one tonne purchased after 5 April 2025 will be treated as passenger cars for tax purposes.
VOA to improve transparency on business rates valuations with reforms coming
| 19-11-2024
The Valuation Office Agency (VOA) has announced plans to share more detailed information on business rates valuations,
Help for the high street: New powers for councils
| 19-11-2024
Next month, councils across England will be given new powers to transform high streets by tackling long-term empty shops. Starting from 2 December, High Street Rental Auctions (HSRAs) powers will allow local
Make Work Pay: What are the next steps
| 19-11-2024
Since coming into power, the Labour government has made its Make Work Pay plan a centrepiece of their policies. As a result, we have already seen a number of changes being proposed and implemented.
Why staying up-to-date with your accounts is essential: Lessons from a recent insolvency case
| 11-11-2024
In a recent court case, a company director from Bury was sentenced to prison for failing to comply with basic accounting and legal responsibilities.
Employers now required to take “reasonable steps” to prevent sexual harassment
| 11-11-2024
From 26 October 2024, employers were given a new legal duty to take “reasonable steps” to prevent sexual harassment of employees.

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The UK Government has announced new measures to ensure online marketplaces and vape producers contribute fairly to the costs of recycling electrical waste. Circular Economy Minister Mary Creagh revealed the plans last week, marking a significant step towards creating a circular economy and supporting UK retailers. Levelling the playing field Currently, UK-based retailers bear most of the financial burden for recycling electrical items such as toasters, hair curlers, and vapes. This has placed them at a disadvantage compared to online marketplaces that often avoid such costs. The new rules will require online retailers to pay their share, providing a fairer system for all businesses. Minister Creagh stated: “Electrical equipment like vapes are being sold in the UK by producers who are failing to pay their fair share when recycling and reusing of dealing with old or broken items. Today we’re ending this: creating a level playing field for all producers of electronics, to ensure fairness and fund the cost of the treatment of waste electricals.” Tackling waste and boosting recycling Each year, the UK discards around 100,000 tonnes of household electrical items, with many valuable materials such as copper and gold lost in landfills. Improper disposal also poses health and safety risks to the waste industry. The government’s initiative aims to reduce waste and recover these valuable resources. Research from Material Focus estimates that 100,000 tonnes of smaller household electrical items, such as kettles and lamps, are incorrectly thrown away every year. Alex Baldock, CEO of Currys said: “We welcome the Government’s new measures to help level the playing field for responsibility for waste, making online marketplaces do their part. Low value, low quality, and unsustainable tech is piling up in landfills, and it’s good to see Government doing something to tackle that.” Changes to regulations Under the new plans: Circular Economy Taskforce The government has also established a Circular Economy Taskforce to develop a comprehensive Circular Economy Strategy for England. This is set to be published next year. The strategy will outline sector-specific measures to promote sustainability and reduce waste. This initiative complements other efforts, such as the upcoming deposit return scheme for drinks containers and extended producer responsibility for packaging. Together, these reforms aim to reduce waste, stimulate recycling infrastructure, and create thousands of green jobs. A call to action These new measures mark a further step in tackling the throwaway culture and transitioning towards a sustainable economy. These changes aim to protect the environment, support UK businesses, and recover resources that would otherwise go to waste. See: https://www.gov.uk/government/news/online-giants-to-pay-their-fair-share-for-electrical-waste  

With the holidays and end of the year fast approaching, it’s a good time to plan your finances for the new year. For those who file Self Assessment tax returns, the prospect of having to make a heavy tax payment at the end of January 2025 may be causing you concern.

Did you know that HM Revenue & Customs (HMRC) provides an option to spread the cost of your tax bill with their Time to Pay system?

What is Time to Pay?

Time to Pay is an HMRC service that allows taxpayers to spread the cost of their Self Assessment bill over regular monthly payments. It’s designed for those who can’t pay their bill in full by the deadline. By using Time to Pay, you can avoid further late payment penalties, provided you stick to the agreed payment plan.

Key points to know:

HMRC reports that over 15,000 taxpayers have already set up Time to Pay plans for the 2023 to 2024 tax year.

Planning ahead and understanding your options can make tax return filing less stressful. If you’re worried about how you will pay your tax bill, Time to Pay may be a practical option for you to consider.

If you would like any help agreeing payment arrangements with HMRC or with filing your Self Assessment, please get in touch and we will be happy to help you!

See: https://www.gov.uk/government/news/festive-finances-budget-for-christmas-and-spread-the-cost-of-tax-bills

New changes come into effect from January 2025 where online platforms, such as eBay and Airbnb, will start sharing some user sales and personal data with HM Revenue and Customs (HMRC).

Although these reporting requirements have caused concern, HMRC have confirmed that there are no changes to the tax rules for someone selling unwanted possessions online.

Angie MacDonald, who is HMRC’s Second Permanent Secretary and Deputy Chief Executive Officer, said: “We cannot be clearer – if you are not trading and just occasionally sell unwanted items online – there is no tax due.”

HMRC have advised that anyone who sold at least 30 items or earned roughly ÂŁ1,700, or provided a paid-for service, on a website or app in 2024 will be contacted by the digital platform in January to say their sales data and some personal information will be sent to HMRC due to new legal obligations.

This does not mean that an individual automatically needs to complete a tax return. However, if the following applies then you would likely need to register for self assessment (if you are not already registered) and pay tax.

If you are concerned about whether you are likely to need to register for self assessment or pay tax, give us a call and we will be happy to help you.

See: https://www.gov.uk/government/news/no-tax-changes-for-online-sellers

In the runup to Small Business Saturday last week, a new Disability Finance Code was launched.

Research indicates that if opportunities were improved for disabled founders, it could unlock an additional ÂŁ230 billion for the UK economy in growth and jobs.

Barclays, HSBC, Lloyds and NatWest have all signed up to this new scheme that is designed to help more disabled entrepreneurs get access to finance and support to start their own business.

Joseph Williams, CEO and co-founder of small business Clu said: “When disabled entrepreneurs are given equal access to finance, society gains in ways that go far beyond individual success. Inclusive entrepreneurship drives innovation, creates diverse workplaces, and encourages economic growth that benefits everyone.”

If you would like help in knowing where to go to access finance for your new business idea, why not get in touch? We would be happy to help you make your dreams a reality.

See: https://www.gov.uk/government/news/new-plans-revealed-to-save-small-firms-22000-a-year-and-improve-access-to-cash

The government’s promised new Fair Payments Code was launched last week to try and tackle late payment problems that can be particularly harmful to small businesses.

How will the Fair Payment Code help?

The code introduces a gold, silver, and bronze system that smaller firms can use to identify business partners who have made themselves accountable to pay fairly and within certain time limits.

The three award tiers have the following requirements:

Businesses that are granted an award also agree to abide by the principles in the Code of being “Clear, Fair and Collaborative” with their suppliers.

The awards, once granted, last for two years and then have to be reapplied for at the conclusion of that time. There will be a “robust” complaint system so that businesses who don’t meet the requirements of their award, or otherwise comply with the principles in the Code, can be reported.

Dealing with late payments can be a challenge to deal with. While the new Fair Payments Code may help, there are a variety of methods you can use to help reduce the effect of late payments. If you need practical help in how to improve how quickly your business is paid, please get in touch and we would be happy to help you.

See: https://www.smallbusinesscommissioner.gov.uk/fpc/

If you trade as a limited company, then you will likely know that balancing salary and dividends is key to extracting profit from your company in the most tax-efficient way. Both methods have distinct implications. and the right mix will depend on your specific circumstances.

The Autumn Budget, with its changes to employers national insurance rates and the employment allowance has further complicated the picture.

Here we set out some of the factors you need to keep in mind.

Salary: What to consider

A salary is a straightforward way to pay yourself from your company, and it offers a few advantages. However, it also comes with specific tax and national insurance obligations.

Here are some of the advantages:

There are disadvantages though:

Dividends: What to consider

Dividends are another popular way for small business owners to withdraw profits from their company.

Here are some of the advantages:

Dividends are paid from post-tax profits, meaning the company must have sufficient retained earnings to be able to distribute dividends. Also, an over reliance on dividends could reduce your contributions towards state benefits.

The combined approach

Many business owners find that a combination of salary and dividends offers the best balance. For example, a modest salary can ensure your eligibility for state benefits while minimising the national insurance you pay. Dividends can then be used to supplement that income in a tax-efficient manner.

The exact split will depend on your personal circumstances.

If you would like help determining what the best approach is for extracting an income from your company in 2025/26, please give us a call. Our expert tax team have tools to assess the optimal balance and will be happy to help you minimise your tax liabilities and support your long-term financial wellbeing.

Saving for retirement can feel daunting for many self-employed people. Without the workplace schemes that salaried workers often rely on, self-employed individuals must take proactive steps to secure their financial futures. But with the right guidance, pensions can become a valuable tool for your retirement planning.

We’ll walk you through why pensions are vital, your pension options as a self-employed person and some practical ways to maximise your retirement savings.

Why pensions matter for the self-employed

When you’re self-employed, financial planning often revolves around the immediate needs of your business. However, looking after your future is just as important, and a pension offers a tax-efficient way to save. Research from the Department for Work and Pensions shows that only 16% of self-employed workers contribute to a pension, compared to 78% of employees. Since state pensions alone may not cover all living costs in retirement, having a personal pension plan can help secure your long-term financial stability.

Investing in a pension also comes with attractive tax benefits. As a self-employed individual, you’re entitled to tax relief on contributions, meaning a portion of what you invest is effectively returned to you by the government. For basic-rate taxpayers, this is 20%, while higher-rate taxpayers can claim up to 40% and additional-rate payers, 45%.

Your pension options as a self-employed person

Without a workplace scheme in place, you have several pension options. Let’s break down the most common choices available for self-employed workers.

Personal pensions

A personal pension is a private plan set up by an individual with a pension provider, such as a bank, insurer or investment firm. You decide the contribution level and control how your money is invested. Personal pensions invest your contributions in stocks, bonds or other assets, aiming for long-term growth. You’ll receive tax relief on contributions and any investment growth, which can provide a strong foundation for retirement savings.

Self-invested personal pensions (SIPPs)

A SIPP functions similarly to a personal pension but offers greater investment flexibility. You can invest in various assets, from stocks and shares to commercial property and even specific types of precious metals. SIPPs can be ideal if you have investment experience and want greater control over your portfolio.

The drawback of a SIPP is that it requires more time and knowledge to manage. Fees can also be higher than standard personal pensions, so you’ll need to balance the benefits of control against the costs and complexities involved.

Stakeholder pensions

Stakeholder pensions are designed to be accessible and straightforward. They have low minimum contributions, capped charges and offer the flexibility to stop and start contributions without penalties. They’re generally a good option if you’re looking for a simple, affordable way to save without managing investments actively. However, the range of investments may be more limited than in a SIPP or personal pension.

How much should you contribute?

When it comes to pension contributions, there’s no one-size-fits-all answer. Financial planners typically recommend saving at least 12-15% of your annual income for retirement. This may sound high, but remember that every little bit helps. Even small, regular contributions can grow significantly over time due to compounding.

For instance, according to Aviva’s Pension Calculator, a 30-year-old self-employed individual who contributes £200 per month could have a pension pot of approximately £130,000 by age 68, assuming moderate investment growth. Increase that to £300 a month and the pot could rise to around £195,000. These figures underline the importance of starting early, even if your contributions are modest.

Benefits of starting a pension early

The earlier you start contributing to a pension, the more you stand to benefit from compound interest. When your investments generate returns, those returns are reinvested, creating an exponential growth effect over time. Small contributions in your 20s and 30s can add to a sizeable pension pot by retirement.

On the other hand, starting later in life doesn’t mean it’s too late; it just requires a more focused approach. You may need to contribute more or choose investments with higher growth potential. However, building a meaningful retirement fund is still possible, and you’ll still receive valuable tax relief on your contributions.

Tax relief: a boost for your savings

Tax relief can significantly enhance the value of your pension contributions. For every £80 you put into your pension, the government adds an extra £20 in basic-rate tax relief. You can claim an additional £20 through your self-assessment tax return if you’re a higher-rate taxpayer and £25 if you’re an additional-rate taxpayer. This means that £100 in your pension pot costs only £60 of your post-tax income if you’re in the 40% tax band.

Tax relief effectively boosts your contributions and accelerates the growth of your pension savings, making it one of the most advantageous features of contributing into a pension scheme. This tax advantage can be a crucial factor in reaching retirement goals for self-employed individuals without the benefit of employer contributions.

Balancing pension contributions with business needs

Balancing long-term pension savings with immediate business expenses can be challenging when you’re self-employed. It may be tempting to pause or reduce contributions during lean periods, especially if cashflow is tight. However, it’s often better to keep contributing a smaller amount than to stop altogether.

z Remember that any modest contribution keeps your pension pot growing and ensures you’re still benefiting from tax relief.

Maximising pension growth through investments

While your contributions are the foundation of your pension, investment performance plays a major role in determining your final retirement pot. With self-employed pensions, you are typically free to choose your investment approach, ranging from cautious to adventurous.

For example:

Most pension providers offer pre-built investment portfolios tailored to different risk profiles, which can help simplify the investment decision process. Remember, your risk tolerance may evolve over time, and adjusting your investments to match your age and retirement goals is a sensible approach.

A common strategy is to invest in riskier assets, such as equities, earlier in your career to maximise growth potential, then gradually shift towards safer investments, like bonds, as you approach retirement to protect the value of your pension pot.

Planning for retirement withdrawals

From the age of 55, you can access your pension savings, with up to 25% available tax free. You can take this as a lump sum, stagger it through drawdowns or leave your money invested for further growth. It’s worth thinking carefully about how you’ll structure your withdrawals to ensure your savings last throughout retirement.

With life expectancy rising, retirement can now stretch 20 years or more. Many self-employed retirees opt for a phased approach, gradually withdrawing funds to supplement their income while keeping some investments in place. Planning your withdrawals thoughtfully can provide financial security without depleting your pension pot too quickly.

Taking advantage of new pension rules and allowances

Pension rules and tax allowances can change, and it’s important to stay informed so you’re making the most of available opportunities. The annual allowance for pension contributions is currently set at £60,000, but any unused allowance from the previous three years can be carried forward. This “carry forward” rule can be especially helpful for self-employed individuals with variable incomes.

In addition, the lifetime allowance, which previously limited the amount you could save tax free, was abolished as of 6 April 2024. This change allows more flexibility to build your pension pot without concerns about tax penalties.

Is a pension right for everyone?

While pensions are highly beneficial for many, they may not be the only option. Some self-employed people prefer to invest in property, ISAs or their businesses as part of their retirement strategy. Each option has pros and cons, and it’s wise to consider all avenues when planning your retirement.

It’s worth seeking professional advice to ensure you make the best choice for your circumstances. With tax advantages, flexible contribution options and various investment choices, pensions remain among the most effective ways to secure your financial future. They offer reliable long-term growth and can complement other retirement savings efforts.

Ready to take the next step?

Taking control of your retirement planning is empowering, and a pension offers a structured way to build a secure future. Start by researching different pension providers, comparing fees and assessing investment options that align with your risk tolerance and goals.

If you’d like more personalised advice, we’re here to help. We specialise in guiding self-employed professionals through retirement planning, from selecting the right pension type to managing contributions and maximising tax relief.

Reach out to us for a consultation to discuss how we can support your journey towards financial independence in retirement.

The Health and Safety Executive’s (HSE) recently released annual statistics for 2023/24 reveal the challenges being faced by employers in managing work-related ill health and injuries. Stress, depression, anxiety, and workplace injuries continue to be issues affecting the health and wellbeing of workforces.

Key insights from the report 

Practical measures employers can take 

These figures highlight a dual responsibility for employers: safeguarding employees’ physical health and addressing the increasing prevalence of work-related mental health challenges.

Here are some practical steps you might be able to take to help with these issues in your workplace.

  1. Strengthen mental health support

Depending on the size of your workforce and the costs, you might be able to consider implementing an Employee Assistance Programme (EAP). These provide confidential counselling and mental health resources to employees.

More practically, you may be able to promote work-life balance policies that increase employee wellbeing and reduce stress. For instance, you could look at flexible working arrangements, consider how you monitor and react quickly when workloads become unreasonable, and consider whether you can do things to help staff take breaks that reduce stress.

Managers may also need training so that they can identify and support employees who are experiencing mental health challenges.

  1. Enhance physical safety protocols

The HSE provides guides and risk assessments that can help you to identify workplace hazards and implement preventive measures. Make sure safety is not being left to chance and ensure that you have procedures in place to regularly review guidance, carry out risk assessments, and implement any adjustments needed.

Providing employees with regular training on safe practices tailored to their specific roles can also reduce safety-related problems.

Any tools and machinery used by your business should also meet modern safety standards to reduce accident risks. A program to regularly review alternatives to any dangerous equipment you use can also help.

  1. Address the root causes of stress and anxiety

Stress and anxiety are often exacerbated by uncertainty and a lack of transparency. Therefore, look to see that there are open lines of dialogue between management and staff that can be used to address concerns and reduce uncertainties.

Heavy workloads can also cause stress and anxiety, particularly if workers feel that tasks are not distributed fairly. So, it may be good to consider: how is work allocated? How would you know if an employee felt that excessive demands were being placed on them.

  1. Proactively monitor and review

Look to see if there are any patterns in sick leave that might help you identify underlying issues. This will give you the opportunity to address them early.

Ask your employees for their thoughts on safety and well-being. If they feel they can speak up about issues, you are more likely to be able to sort issues before they become a problem.

  1. Leverage technology

New technologies are appearing all the time. Implementing those that can reduce manual, high-risk tasks will minimise injury risks to your employees.

E-learning and on-demand training is now widely available, and this can be used to provide training in a cost-effective way that reinforces safety awareness.

Looking ahead 

HSE’s Chief Executive Sarah Albon noted that while the UK has made significant strides in workplace safety over the past five decades, these statistics are a reminder of the need for continued vigilance and improvement.

Considering what practical steps you can take to ensure the safety and well-being of your employees could pay dividends. A healthy, safe, and supported workforce isn’t just good for employees—it’s a critical component of a productive, sustainable and profitable business.

See: https://press.hse.gov.uk/2024/11/20/hse-publishes-annual-work-related-ill-health-and-injury-statistics-for-2023-24

HM Revenue and Customs (HMRC) have issued a reminder to be careful about scam attempts that target people filing Self Assessment tax returns. In the last year, nearly 150,000 scam attempts were referred to HMRC, a 16.7% increase on last year. With the 31 January 2025 filing deadline approaching, fraudsters are likely to step up their activities.

HMRC reports that around half of all scam reports in the last year were fake tax rebate claims. Fraudsters are usually aiming to get hold of personal information and banking details.

If you receive an email, text or phone call from someone claiming to be from HMRC that asks you for personal information or offers you a tax rebate, there is a useful checklist here that can help you identify a scam.

It is helpful to know that HMRC will never leave voicemails threatening legal action or arrest. Neither will they ask for personal or financial information over text message.

HMRC also will not contact you by email, text, or phone to announce a refund or ask you to request one.

If you have been contacted by someone claiming to be from HMRC and feel unsure whether it is a scam, or you would like to check whether you are due a tax refund, call us at any time and we would be happy to help you.

https://www.gov.uk/government/news/scams-warning-as-self-assessment-deadline-loom

The government has now published the legislation to deliver the business rates changes announced in the recent Budget. These reforms, set to take effect from the 2026/27 tax year, are designed to create a more balanced system, with notable benefits for smaller retail, hospitality, and leisure (RHL) businesses.

Here’s what you need to know and how it might affect your business.

Relief for retail, hospitality, and leisure 

Businesses in the RHL sectors with properties valued below £500,000 will benefit from “two permanently lower business rates multipliers”. This means a reduced tax bill for smaller high-street businesses, which could free up funds for growth, staffing, or other operational priorities.

Of course, RHL properties have already been receiving temporary relief to their business rates charges. However, the legislation will make permanent adjustments so this should provide greater stability of RHL businesses to plan.

Any relief here is likely to be welcome since high-street businesses are facing tough competition. The BBC recently reported that footfall in Ipswich town centre fell by a third in the past year. So, the high street is under significant pressure to find and maintain sales.

Larger properties to shoulder more 

From 2026/27, properties with rateable values of £500,000 or above will see their rates increase, as a higher multiplier will apply. If you operate in higher-value premises, it’s worth factoring this into your financial planning.

This move is because the government intends to fund the reduced rates for smaller businesses sustainably by shifting some of the tax burden to higher-value properties. This may particularly be aimed at large warehouses used by the online giants, but isn’t limited to these firms.

How to prepare 

Although these changes are still a couple of years away, there are steps you can take now to ensure you’re ready:

Looking ahead 

Precise definitions of which businesses qualify for the lower rates, as well as the exact multipliers, will be confirmed by Autumn 2025. This clarity will be crucial for understanding the full impact of the reforms on your business.

For now, the key takeaway is that relief is on the horizon for many smaller RHL businesses, while larger property holders should begin preparing for increased costs.

If you’d like to discuss what these changes might mean for your business, please get in touch. We would be happy to help!

See: https://bills.parliament.uk/bills/3887

UK Export Finance (UKEF), the UK’s export credit agency, has launched a new initiative aimed at helping British engineering, design, and technical services firms secure international contracts. The Early Project Services Guarantee (EPSG) is designed to make UK expertise more attractive to overseas buyers while filling a key financing gap for the early stages of major projects.

How the EPSG works 

The EPSG provides overseas buyers of UK services with access to private finance by guaranteeing payments to lenders. This assurance makes it easier for international buyers to choose UK firms for essential scoping and design work in the planning phase of projects.

Beyond this initial stage, the EPSG also opens the door for buyers to refinance their loans as part of the larger financing for the project’s construction phase. This creates a life-cycle financing advantage, giving UK firms an edge in securing contracts for both the early and later stages of international projects.

The EPSG addresses a long-standing gap in market provision for financing the preparatory phases of major projects. By supporting the services sector, UKEF aims to drive export growth across all UK regions.

What this means for your business 

For UK businesses offering engineering, design, and technical services, the EPSG could be a game-changer in helping you explore opportunities in international markets. It could be the key to unlocking new contracts and expanding your global reach.

If you would like help with how your business could take advantage of this new scheme, or would like some broader advice on exporting, feel free to get in touch with us. We’re here to help you seize opportunities and grow your business.

See: https://www.gov.uk/government/news/new-export-guarantee-champions-uk-engineering-and-design-services

The latest inflation figures from the Office for National Statistics (ONS) reveal that the Consumer Prices Index (CPI) for October 2024 rose to 2.3%, up from 1.7% in September. This marks the first increase in inflation since July, and it has sparked interest among business owners, economists, and policymakers alike.

The rise in inflation was widely anticipated, and as a result the Bank of England have already signalled that any future cuts to the base rate will happen gradually. However, the latest CPI figures make it unlikely that the Bank will reduce rates any further when they meet in December.

What’s driving the numbers? 

According to the ONS, the rise in inflation for October was largely driven by higher energy costs. However, other factors helped to balance the increase:

Despite these offsets, some sectors faced steeper price increases:

What does this mean for your business? 

The rise in inflation, though modest, signals shifts that businesses may need to navigate carefully:

A broader economic context 

While inflation has ticked upwards, this is in line with the Bank of England’s forecast that inflation will temporarily rise again before reducing in 2025. For now, businesses can take heart that interest rates are unlikely to rise sharply in the near term. However, with base rate cuts now likely to come more slowly than had been hoped earlier in the year, borrowing costs will remain a factor for planning and investment.

Also, while October’s figures suggest only a modest uptick, sector-specific changes – particularly in services and energy – highlight the importance of staying agile in your pricing and how your business operates.

This period of mild inflationary growth is an opportunity for forward-thinking businesses to fine-tune their strategies for the months ahead.

See: https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/consumerpriceinflation/latest

The Autumn Budget 2024 announced that double cab pick-up trucks with a payload capacity of at least one tonne purchased after 5 April 2025 will be treated as passenger cars for tax purposes.

The key changes will affect:

DCPU will no longer benefit from the tax treatment traditionally given to vans/ light commercial vehicles.

The BIK is to be aligned with cars and will be calculated as a percentage of the vehicle’s retail price, based on its CO₂ emissions. Most double cab pick-ups have high CO₂ emissions, so they will attract the highest tax band of 37%.

A taxable benefit will arise if the vehicle is available for any level of private use, regardless of how minimal it may be. The VAT treatment of DCPU will remain unchanged.

DCPU will be subject to new deductions from business profits.

Businesses can retain the current, more favourable tax treatment by completing the purchase of a DCPU before 6 April 2025 as transitional benefit in kind arrangements will apply for the purchase, lease or order of a DCPU before 6 April 2025.  The previous treatment can be used until the earlier of disposal, lease expiry or 5 April 2029.

Single cab pick-ups are expected to remain as commercial vehicles

The Valuation Office Agency (VOA) has announced plans to share more detailed information on business rates valuations, making the system more transparent for ratepayers across England. Starting in 2026, businesses will have access to tailored information about their properties, and by 2029, they will be able to see specific valuation details and evidence.

Carolyn Bartlett, Chief Strategy and Transformation Officer at the VOA, noted that while ratepayers generally desire more transparency, some have concerns about data confidentiality. “We’ve balanced the desire for greater transparency from some with the concerns of others about the confidentiality of their data,” Bartlett explained.

Having more detailed information available may make it easier to detect whether an error has been made on your business property valuation.

Business rates reforms coming

The VOA’s disclosure improvements are part of a larger set of business rates reforms that will roll out from 2026 to 2029.

A key part of this reform is a new duty on ratepayers to provide property information to the VOA. This new requirement will start to be tested in phases from April 2026 and will become mandatory by April 2029.

Under the new duty, ratepayers must inform the VOA within 60 days of any property changes, including new occupiers, rent adjustments, and physical changes to the property.

For some businesses, there will also be an annual requirement to submit trade information if it is used in property valuations.

Ratepayers will additionally need to confirm annually that all property changes have been reported.

The VOA have confirmed that businesses do not need to take any action yet. They will contact businesses directly about the changes and tell them when they will be affected.

See: https://www.gov.uk/government/news/sharing-more-information-on-business-rates-valuations

Next month, councils across England will be given new powers to transform high streets by tackling long-term empty shops. Starting from 2 December, High Street Rental Auctions (HSRAs) powers will allow local authorities to auction leases for persistently vacant commercial properties, a move that is hoped will bring new businesses and community groups back to once-busy centres.

Through HSRAs, councils can take action if a property remains empty for more than 365 days within a two-year period. By auctioning leases for up to five years, this policy aims to prevent disengaged landlords from sitting on empty properties, which contribute to the decline of high streets. Local authorities will need to first try to engage with the landlord to resolve the vacancy before putting a property to rental auction.

According to data quoted by the government, one in seven high street shops are currently closed. So, this initiative could provide a helpful boost, creating jobs and driving foot traffic back to town centres.

Local Growth Minister Alex Norris emphasised the importance of reviving high streets, saying: “High streets are the beating heart of our communities. But for too long, too many have been neglected, with more and more empty lots and boarded-up shopfronts.” He added that HSRAs put “local communities first, re-energising town centres and driving local opportunities and growth.”

Additional support for high street businesses

There is currently plenty of talk at government level about how to revitalise high streets.

During the Autumn Budget it was announced that the small business rates multiplier has been frozen for next year. Plans were also revealed to permanently lower business rates for retail, hospitality and leisure properties.

£250 million was also committed for 2025-26 to the British Business Bank’s small business loans programme.

The government has also announced its intention to publish a new Small Business Strategy next year. This will set out further measures to support SMEs and, according to the government announcement, supporting small businesses on the high street will be at the centre of this.

See: https://www.gov.uk/government/news/high-streets-to-be-revitalised-with-new-legal-powers

Since coming into power, the Labour government has made its Make Work Pay plan a centrepiece of their policies. As a result, we have already seen a number of changes being proposed and implemented. This includes the new Employment Rights Bill which is currently making its way through Parliamentary processes.

The government’s Make Work Pay policy paper makes interesting reading on what it intends to do.

The paper outlines how the UK has seen a productivity slowdown in recent years that is more pronounced than other advanced economies. They attribute much of this to issues with the labour market, both in workers feeling insecure and businesses struggling to find the right staff when they need them.

The Plan to Make Work Pay is therefore designed to modernise the UK labour market and address the challenges the economy is facing.

Principally the plan aims to make work more flexible, more secure and more family-friendly. This will help to support more people to stay in work.

Employment Rights Bill

This key legislation is the first phase of delivering the government’s Plan. The changes it will bring about, including ‘day 1 rights’ of employment, banning exploitative zero-hours contracts and increasing worker protections have been widely discussed in the press.

Consultations are planned to take place in 2025, with the majority of reforms taking effect no earlier than 2026.

Employment rights and industrial relations are reserved in relation to Scotland and Wales and transferred to Northern Ireland. The UK government intends to work closely with the devolved governments on delivering and implementing their plan so that rights for people across the entire country are strengthened.

Family friendly rights

The government is looking at how to support workers in working while balancing the essential responsibilities of their wider life, including raising children, improving their own wellbeing or looking after a loved one with a long-term health condition.

Some immediate changes are being made to support this. Flexible working will essentially become the default, a new right to bereavement leave is being introduced, paternity and parental leave will become a day 1 right, and protections for pregnant women as well as new mothers returning to work are being strengthened.

The government also intends to review the current parental leave system and the implementation of carer’s leave.

Fair pay

We have already seen an adjustment in how minimum wage rates are set, with the cost of living now factored in.

The government’s intention is to remove the separate wage rates for different age bands. Instead, there will be one single rate regardless of the worker’s age.

Statutory Sick Pay is also to be strengthened. The lower earnings limit and the waiting period will be removed.

A consultation on how a Fair Pay Agreement process for the adult social care sector should work is also planned.

Ending ‘one-sided flexibility’

Where workers have a zero-hours contract or a ‘low’ number of guaranteed hours but regularly work more than these hours, they will gain the ability to move to guaranteed hours contracts.

Protections from unfair dismissal, which currently have a 2-year qualifying period, will be changed to apply from day 1.

Employers will still be able to assess whether someone is right for the job via probationary periods. Currently the government is suggesting a 9 month statutory probationary period where the worker will have certain day 1 rights, but there will be a lighter-touch process that employers can follow to dismiss an employee who is not right for the job.

There is concern amongst businesses that the proposed changes will expose them to increased legal liability and a greater number of unfair dismissal claims. The government is proposing to identify ways to signpost and support employees that will make clear where bringing claims might be unsuccessful.

They have also said that they will consult on limiting compensation awards for successful claims of unfair dismissal during a probationary period.

In addition, there is a commitment that changes to the unfair dismissal rules will not come into effect any sooner than autumn 2026.

Equality at work

The plan includes measures that will help to ensure greater equality in the workplace, including:

The government also intends to consult on the legal framework around trade unions and modernise it to reduce conflicts but provide workers with a voice.

Many of these changes will be enacted when the government publishes its Equality (Race and Disability) Bill later in this parliamentary session.

Anything else?

Further reforms are also briefly discussed in the plan that will take place over the longer term.

These include consulting on having a single ‘worker’ status that differentiates between workers and the genuinely self-employed. This would include strengthening protections for the self-employed through a right to a written contract. Health and safety guidance and regulations will also be modernised.

Conclusion

The government’s plan could largely be summed up as ‘a happy worker is a productive worker’. Therefore, the aim of the changes seems to be to make workers feel more secure and give them more flexibility over their working hours. If more workers remain more productive, this should make businesses more productive and the economy will grow as a result.

Of course, this will have to be reconciled with businesses dealing with additional costs and compliance. And you may have a question mark about whether the government’s plan will help you to grow your own business, particularly after a Budget that increased employment costs for many businesses.

While many of the proposals still need to be consulted on before they become law and there is time before the Employment Rights Bill will come into force, it is clear that we all need to be ready for changes over the next few years.

To read the policy in full, see: https://www.gov.uk/government/publications/next-steps-to-make-work-pay/next-steps-to-make-work-pay-web-accessible-version

In a recent court case, a company director from Bury was sentenced to prison for failing to comply with basic accounting and legal responsibilities. Vezubuhle Ndlovu, the former director of VN Electrics Limited, was jailed for 10 months after he failed to provide the required records when his company went into liquidation, leaving over ÂŁ200,000 in unpaid taxes.

This case serves as a stark reminder of the consequences for businesses that do not prioritise accurate accounting, particularly when dealing with financial and tax obligations. Let’s examine why keeping up-to-date records is so important for businesses of all sizes and sectors.

What happened?

Ndlovu’s company, VN Electrics, which operated as a wholesale trade business, was petitioned for liquidation by HM Revenue and Customs (HMRC) in 2019 due to an outstanding tax bill of ÂŁ221,600.

After the company entered liquidation, Ndlovu was required by law to provide the company’s financial records to the Insolvency Service. His failure to do so prevented the Official Receiver from assessing the company’s assets, income, and financial position.

Ndlovu repeatedly refused to cooperate. Even after being disqualified as a director for seven years, he still failed to respond or attend interviews requested by the Insolvency Service. Manchester Crown Court have subsequently sentenced him to 10 months in prison.

The legal responsibilities of directors

Company directors have a legal duty to keep accurate financial records and to be transparent with stakeholders, especially in times of financial distress. This case highlights the severe consequences for not complying. Under the Companies Act and Insolvency Act, it is a criminal offence to fail to keep proper accounting records, and persistent failure to cooperate with authorities can result in prison sentences.

The impact on the stability of your business

Maintaining up-to-date accounts is more than just an administrative task; it is a core responsibility that can safeguard the future of a business.

Businesses that regularly review their accounts are better positioned to make informed decisions, identify potential financial issues early on, and avoid the kinds of tax and debt problems that led to VN Electrics’ liquidation. Without clear records, even the day-to-day management of cash flow, payroll, and expenses can become difficult to handle, potentially leading to further financial instability.

Protecting relationships with stakeholders

For any business, building trust with creditors, suppliers, and partners is essential. Reliable accounting practices demonstrate that a company is well-managed, financially sound, and transparent in its dealings.

In the case of VN Electrics, the lack of financial transparency not only damaged the company’s reputation but also strained relationships with stakeholders who were left uncertain about the company’s financial position.

Key takeaways

The case of VN Electrics serves as an important reminder for all business owners and directors:

In a time when economic challenges and tax obligations continue to impact businesses, staying on top of financial records is one of the best ways to protect a company’s future, meet legal responsibilities, and ensure transparency with all stakeholders.

If you need advice about or help with your accounts please feel free to get in touch and we would be happy to help you!

See: https://www.gov.uk/government/news/bury-director-jailed-after-failing-to-produce-accounts-for-company-which-owed-more-than-200000-in-tax

From 26 October 2024, employers were given a new legal duty to take “reasonable steps” to prevent sexual harassment of employees.

This duty requires employers to anticipate when sexual harassment may occur and take reasonable steps to prevent it. If sexual harassment has already taken place, then an employer would need to take action to stop it from happening again.

It is not possible for an individual to make a claim against their employer for failing to take preventative action. However, if they successfully bring a sexual harassment claim, the employment tribunal will automatically consider whether the employer failed in its duty to prevent the harassment from happening. If they find that the employer was negligent then they can order an uplift in the compensation paid to the employee.

ACAS have provided guidance to employers on what to do, including advising on things that should be included in a sexual harassment policy.

To review the guidance, see: https://www.acas.org.uk/sexual-harassment