Historically, ISAs have been considered a tax-free investment opportunity, but the latest notes on upcoming changes to this scheme may mean that interest on cash held in a stocks and shares ISA may result in new tax liabilities.
More than 200 leaders from the UK’s hospitality and leisure sector have written to the Chancellor urging the Government to reconsider the proposed visitor levies.
Once again, Ramadan and Lent are set to take place simultaneously, meaning that approximately half the world’s population will be engaging in spiritual reflection. Read more
From October 2026, businesses involved in producing, importing, storing or selling vaping products will face a significant regulatory reform with the introduction of Vaping Products Duty (VPD) and the Vaping Duty Stamps (VDS) Scheme.
Salary sacrifice has long been one of the most tax-efficient ways to save into a workplace pension.
This Valentine’s Day, you might be thinking about spoiling your significant other with flowers and chocolates.
If you have noticed more TV and online adverts for cloud accounting software lately, that is no accident as the countdown to Making Tax Digital for Income Tax (MTD for IT) ramps up.
As the deadline for Self Assessment passes, new data from HMRC shows that taxpayers paid a staggering £325 million in fines and interest last year after failing to meet the 31 January deadline.
Recent analysis of HMRC’s publicly available statistics found that around 600,000 individuals were hit with penalties for filing or paying late, which serves as a clear warning to those who still have returns or payments outstanding.
Fines for late tax returns and payments
HMRC’s systems automatically issue a £100 penalty for missing the filing deadline, even if no tax is owed, with further fines issued if payment or filing of a tax return isn’t completed within certain time frames.
Fines for late filing are as follows:
| Date of filing | Penalty |
| 1 day late | £100 fixed penalty (applies even if no tax is owed) |
| 3 months late | £10 per day penalty, up to 90 days (maximum £900) |
| 6 months late | Further penalty of the higher of £300 or five per cent of the tax due |
| 12 months late | Another penalty of the higher of £300 or five per cent of the tax due |
| 12 months late (serious cases) | Up to 100 per cent of the tax due in very serious cases (e.g. deliberate withholding of information) |
Fines for late payments are as follows:
| How late the payment is | Penalty |
| 1 day late | Interest charged on the overdue tax at the HMRC interest rate (currently 7.75 per cent) |
| 30 days late | A penalty of five per cent of the unpaid tax |
| 6 months late | Additional penalty of five per cent of the unpaid tax |
| 12 months late | Another five per cent penalty of the unpaid tax |
HMRC estimates that £8.7 billion of Self Assessment tax went unpaid in the 2023/24 cycle. This represents 12.5 per cent of the £69.6 billion it expected to collect for the year.
Across all taxes, around £44 billion is now overdue, with the vast majority already in line for formal debt collection.
Be prepared for Self Assessment
For many taxpayers, the real issue is a lack of preparation rather than an unwillingness to pay.
Underestimating a tax bill, poor record keeping or leaving everything until the last minute can lead to panic and costly mistakes.
Once penalties and interest start to accumulate, the situation can quickly spiral out of control.
Setting aside funds throughout the year and seeking advice well before the deadline can make a significant difference.
Energy bills, staffing, borrowing costs, taxes and supplier expenses are just a few of the reasons behind the added financial pressure business owners are currently facing.
As we get closer to the new tax year, it is the ideal time to review your business plans and check that your pricing strategy remains fit for purpose.
Why you should review your pricing strategy now
Reviewing pricing regularly is a key part of maintaining a viable and sustainable business.
Many businesses set prices once and only revisit them when they encounter challenges.
If you leave your prices unchanged for too long, especially amid current economic pressures, you are likely to see your profit margins shrink.
A more regular review can help avoid this.
How to review your pricing strategy
Before making any changes to your pricing strategy, ask yourself:
These are just a few of the questions we ask our clients to think about.
Pricing decisions should reflect both the value you deliver and the cost of running your business.
If your prices are not covering your overheads or generating sustainable profits, it may be time to increase them.
Need help reviewing your pricing strategy?
We understand that this can feel uncomfortable for some business owners who worry that raising prices will push customers away.
However, most clients are far more focused on the quality, reliability and expertise they receive from the service or product than on small price changes.
As long as increases are fair and correlate to the value you deliver, clients often accept the added costs without issue.
It is good practice to review your prices regularly so that you can make smarter decisions for your business’s future.
Our team are happy to assist you with this, so that you create a strategy that works well for you.
Get in touch if you would like help reviewing your pricing strategy.
Recent media coverage has publicised the possibility of a new tax on people who leave the UK, calling it an “exit tax”.
This type of regime already exists in several countries, including France, Spain, Canada and Australia, and is now being discussed as a possible option for the UK Government to raise revenue.
What is an exit tax?
An exit tax in the UK would impose a levy, likely 20 per cent, on gains accumulated while a person was a UK tax resident.
Unlike Capital Gains Tax (CGT), which applies to assets when you sell them, a regime like this could mean assets, such as shares and property, could be treated as though they had been sold at the point a person leaves the UK.
Tax would then be calculated on the increase in value to date.
What is the current tax situation when you leave the UK?
Currently, individuals who leave the UK can typically dispose of assets after departure without incurring UK CGT, as long as they remain abroad for a minimum of five years.
However, a move towards a more immediate exit tax could have a consequential impact on those considering a change in residence, potentially restricting international mobility.
How could an exit tax affect you?
Business owners would need to take extra care because shareholdings in trading companies, growth shares and other long-term investments may carry unrealised gains.
An unexpected tax charge at the point of departure could prove challenging, particularly where assets are difficult to sell, as the individual may not have the cash available to settle the bill at that time.
What should you do now?
At this point in time, there is no certainty as to whether an exit tax will even be introduced or what it might entail, making it difficult to effectively plan.
However, the ongoing discussions serve as a reminder that decisions around residence, investment timing and business succession should be made carefully, with future implications in mind.
