The noise around the upcoming Autumn Budget is getting louder the closer it gets and the reality is there is likely to be tax increases for everyone, including businesses.
Why economic uncertainty shouldn’t impact your business activities
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The advantages of self-employment and how to get your business started
When wanting to take that step into self-employment, it may feel like there is never a right time and financial uncertainty may leave you reluctant.
UK small businesses left behind in new trade deals
Many small UK businesses are struggling to take advantage of the new trade deals, with many reporting flat or falling exports.
Unpacking the pre-Autumn Budget speech – What looms on the horizon?
With less than a month to go before the Autumn Budget, business owners and individuals alike are waiting to know what the future of the country’s financial state will be.
The signs of digital wallet abuse you need to look out for
Digital wallet abuse is on the rise as criminal networks continue to exploit individuals and businesses for their own selfish gains.
In 2024, over 2.5 million cases of remote purchase fraud were recorded, so it is important that you can spot signs of digital wallet fraud and put measures in place to protect yourself, your business and your customers.
How do criminal networks exploit digital wallets?
Criminals will steal card details and add them to apps like Apple Pay and Google Pay without the cardholder’s knowledge.
From there, they can bypass the standard banking checks and complete purchases and cash-outs.
They may look to exploit the verification process that links a card to the digital wallet, as many banks and apps will ask for a One-Time Passcode (OTP). Their objective is to try and obtain that OTP.
They could use methods, such as phishing, malicious online adverts, social media content and social engineering, to manipulate unsuspecting victims into providing OTPs.
Once they have the information required, they can begin to take advantage of and use the funds and details they have gained illicitly.
What can be done to reduce the risk of digital wallet fraud?
Taking some simple precautions can significantly reduce the risk of digital wallet fraud.
One of the best approaches to reduce the risk of digital wallet fraud is not receiving an OTP via SMS.
Criminals see SMS as a golden opportunity to obtain the information they need through social engineering and SIM swapping.
However, if this option is removed, the risks of digital wallet abuse reduce drastically, with many banks reporting very few digital wallet cases.
If your business, firm or your clients are using SMS based OTPs, you should consider removing this to protect your data.
Other ways you can reduce the risk are to educate yourself and your clients on exactly what digital wallet abuse is.
Preparing for Plan 5: The newest student loan payment structure
Students who started their undergraduate and advanced learner loan courses on or after 1 August 2023 will fall into the new Plan 5 payment plan bracket.
From April 2026, students who fit in the Plan 5 criteria will begin repaying their student loan, which is why it’s important you understand the new plan and how it will work.
How will the new Plan 5 payment structure work?
The Plan 5 payment structure will have three specific thresholds and if an employee’s income matches those, they will be required to start paying off their student loan.
The thresholds for Plan 5 are £25,000 per annum, £2,083 per month and £480 a week. If any are met, loan payments will be automatically deducted from their pay.
Should your income fall below the thresholds in place, the Student Loans Company (SLC) will automatically stop taking payments.
Once they return to that threshold, the SLC will begin to take payments once again.
How will employees be charged?
Under Plan 5, there will be a nine per cent charge on their income above the threshold, which is collected through their payroll or via Self Assessment, if they are classed as self-employed.
Should they receive a pay increase, for example, this will be reflected in the figure collected.
So, if they are in the Plan 5 bracket and earn £28,000 per annum, they can expect the £3,000 above the threshold to be subject to the nine per cent, resulting in an overall deduction of £22.50 per month.
If their pay were to increase to £31,000 per annum, the monthly deduction would increase to around £45 per month to reflect the salary increase as the amount above the threshold would be £6,000.
How we can help
Whether you are an employee or an employer, you need to understand the new payment structure taking effect and our team is here to advise and help.
We can talk you through all the student loan categories, including Plan 5 and help you put measures in place to manage the changes coming into effect.
We also offer the preparation of payroll so that you can relax knowing everything is taken care of.
Outsourcing your payroll is a great way of streamlining internal processes so that you can focus on keeping your business growing.
The UK’s residency rules explained – Six months on from the change
In April 2025, the UK’s ‘non-domicile regime’ was replaced with a new set of rules centred around an individual’s tax residency, taking in factors like an individual’s links to both the UK and other countries and trust structures they are connected to.
What was introduced?
A new four-year Foreign Income and Gains (FIG) regime has been introduced, which allows UK tax residents to be exempt from most forms of foreign income and gains from these taxes during their first four years as a UK tax resident.
The FIG regime is accessible for any individual provided they have been a non-UK tax resident for at least ten consecutive years before the first of the four-year regime kicks in.
If you do make a claim, the years you make a claim for will see you lose some tax allowances and the ability to deduct any foreign losses from taxable gains.
It’s important to note that the regime doesn’t automatically take effect, so you need to check before you apply.
You have the option to choose which of the four years to claim and all foreign income must be reported to HMRC, whether you claim the relief or not.
Have trust structures changed?
The changes announced also impact trust structures for non-UK residents, because the protected status on those trusts has been removed.
This means the scope for taxation has been increased significantly for the settlor.
While this is primarily a concern for non-UK resident trusts with living tax settlors in the UK, the extent of the exposure will be determined by several factors.
These factors include:
- The beneficial class of the trust
- The investment profile
- Whether the settlor is eligible to claim the four-year FIG regime.
Inheritance Tax (IHT) liabilities may also increase as a result.
For discretionary trusts, your residency status will determine whether IHT applies, although this will be unchanged if a settlor passed away before the rules came into effect on 6 April 2025.
If you have international connections and are unsure about the new regime, our team can help.
We can explain the new legislation and help you map out a plan to manage the changes.
Contact us if you need tax advice on the new residency rules.
Bank and building society interest – What needs to be reported under Self Assessment?
HMRC has confirmed it is changing the way it will handle tax on bank and building society interests.
What has HMRC changed?
Since October 2025, HMRC has been sending out Simple Assessment letters to individuals who may owe tax on interest incurred from banks and building societies between April 2024 and April 2025.
The letters clarify the exact amount of tax owed on the interest during the 2024/25 tax year, why you owe that amount and how to pay your tax bill.
You may have received an initial Simple Assessment letter, but HMRC may send another to you if your bank or building society has provided updated information to the tax authority that includes any accrued interest.
If you have already paid following a first letter, you will need to calculate the outstanding debt and pay that off.
It’s important to remember that banks and building societies report the interest you receive to HMRC each year, meaning that even though you didn’t declare it, HMRC is aware and the letter outlines what you need to do.
What if the figures don’t match?
You don’t need to be concerned if the figures from your tax code and bank statements do not match what is shown, as a number of factors may be taken into consideration.
These include some interest on your personal savings allowance that can be tax-free, only taxable interest is included in your tax codes and when preparing assessments, HMRC may be estimating figures based on the data available to them.
You can contact HMRC directly to dispute the letter, but this must be done within 60 days of receiving the letter.
If you are unsure about a Simple Assessment letter you’ve received, our team of experienced accountants can help you review it, check that it has been reported correctly and outline the steps you need to follow to ensure HMRC is satisfied.
Could the Autumn Budget hold big changes to the taxation of partnerships?
With the November Budget just weeks away, one rumour appears to be gaining more traction than others.
Media reports suggest that the Chancellor, Rachel Reeves, may introduce a new National Insurance charge on partnerships in her Budget announcement.
What is being considered?
It is understood that the Government is exploring the idea of applying an employer-style National Insurance charge to partnership profits.
This follows a paper published by the CenTax think-tank, which recommended the Government equalise the employer NIC treatment of partners with employees.
Currently, partners are treated as self-employed, so the 15 per cent NIC charge, introduced in April 2025, does not apply to their earnings.
If the change mirrors the employer rate, it could amount to an effective tax rise of about seven per cent for higher rate taxpayers in a partnership once deductibility is taken into account.
It is not yet known whether the charge would apply only to limited liability partnerships (LLPs) or to all partnerships.
What are the possible implications?
LLPs are widely used across professional and private capital sectors. Any additional charge would increase costs and may encourage firms to reconsider their structures.
Some may look at incorporating, allowing profits to be retained at the 25 per cent Corporation Tax rate rather than being taxed on distribution.
Others may restructure internally to balance compliance and flexibility.
Partnerships outside financial services, including medical and agricultural practices, could also be affected.
However, there are further rumours that suggest Rachel Reeves could introduce an exemption for medical professionals.
A full consultation would be expected to help firms prepare, so if partnership NICs are introduced, it is unlikely to start before April 2026.
What should you do?
There has been no formal confirmation of the possible change, but Treasury officials have not denied the reports.
Given the potential impact, partnerships should review their current structure and model possible outcomes ahead of the Budget.
Contact us to prepare your firm for the best possible response if new charges are confirmed.
Family businesses most exposed to 2026 IHT reforms
In the October 2024 Budget, the Government confirmed reforms to Inheritance Tax (IHT) that will take effect from April 2026.
The changes will restrict the availability of Business Property Relief (BPR), which helps reduce the tax liabilities of family-owned businesses.
The new £1 million BPR cap
BPR currently gives up to 100 per cent relief on qualifying assets, allowing them to pass free of IHT if the right conditions are met.
However, from April 2026, only the first £1 million of qualifying business assets will receive 100 per cent BPR. Any value above that figure will be eligible for 50 per cent relief.
The standard 40 per cent IHT rate will then apply, creating an effective 20 per cent IHT charge on death.
The cap will apply per individual and will not be transferable between spouses. Each trust will have its own £1 million limit. However, individuals cannot create multiple trusts to multiply the allowance.
Why family firms are at risk
A significant number of private sector businesses in the UK are family-run – estimated to be more than 5 million in total.
Many of them already exceed £1 million in value once property, retained profits and other assets are included.
BPR has enabled family businesses to pass down wealth from generation to generation without triggering Inheritance Tax liabilities.
However, the new restrictions could leave them facing a substantial IHT bill if no planning takes place.
Steps to take before IHT reform in 2026
Succession planning will be important for family-run business owners, even if you do not plan to exit or retire soon.
Families should review ownership structures to see whether shares can be distributed among family members or held in trust.
Transfers before April 2026 may allow access to more than one, £1 million allowance, but professional guidance is necessary to avoid unintended tax consequences.
A review of the balance sheet can identify and remove assets that do not qualify for relief, while planning for liquidity helps ensure beneficiaries have funds available to pay any tax without needing to sell trading assets.
Contact us to reduce future tax exposure and ensure a smooth transition to the next generation.