For property developers and investors, knowing when a property business officially starts can have a significant impact on tax reliefs, allowable deductions and cash flow. Current HMRC guidance generally treats a UK property business as commencing when the first rental income is received. However, recent professional commentary suggests that, in some circumstances, a property business may begin much earlier. If that interpretation is correct, businesses could be entitled to c

The government has taken another step towards tackling the long-standing issue of late payments by introducing the Small Business Protections Bill to Parliament. First announced in the King's Speech, the proposed legislation is designed to improve cash flow for smaller businesses by introducing stricter payment rules for larger organisations and giving greater powers to enforce them. Key Measures in the Bill If passed, the legislation will introduce a number of significant ch

VAT on food products is often far more complicated than businesses expect. While many food items are zero-rated for VAT, others are subject to the standard rate, and the distinction can sometimes depend on surprisingly detailed legal definitions. A recent tax tribunal case involving giant marshmallows is the latest example of how complex the UK's VAT rules can be. The Case The dispute centred on whether large "Mega Marshmallows" should be treated as confectionery, which is ge

The government has confirmed that the introduction of mandatory payrolling for Benefits in Kind (BiKs) will now be phased in over two years, giving employers more time to prepare for the changes. Originally expected to take effect in full from April 2027, the new timetable follows feedback from employers, payroll professionals and software providers about the scale of the changes required. What Is Changing? Mandatory payrolling will replace the current P11D reporting process

The first deadline under Making Tax Digital (MTD) for Income Tax is fast approaching, and affected taxpayers should start preparing now to avoid a last-minute rush. If you're self-employed or receive income from property, and your qualifying income exceeded £50,000 during the 2024/25 tax year, you are likely to have joined the MTD for Income Tax regime from 6 April 2026. First MTD Deadline: 7 August 2026 Under the new rules, eligible taxpayers must: Keep digital accounting re

Artificial Intelligence (AI) is rapidly changing the way businesses operate. From automating routine tasks to improving customer service and providing valuable insights, AI offers exciting opportunities for businesses of all sizes. However, adopting AI simply because it's the latest trend is unlikely to deliver meaningful results. The businesses seeing the greatest benefits are those using AI with a clear purpose and a well-defined strategy. Here are seven practical steps to

Setting executive pay has become one of the most closely scrutinised responsibilities of academy trust boards. Trustees must balance attracting and retaining high-quality leaders with demonstrating that remuneration represents good value for money and can withstand regulatory and public scrutiny. A recently published executive pay benchmarking report provides academy trusts with additional market data to support these important decisions, but benchmarking should form just one

Maintaining healthy financial reserves is an important part of effective financial management for every academy trust. While there is no prescribed amount that trusts must hold, trustees are expected to demonstrate that their reserves are appropriate for the trust's circumstances and support its long-term objectives. Rather than focusing solely on a target percentage, academy trusts should regularly review whether their reserves policy reflects current risks, future commitmen

The government has confirmed that significant changes to Companies House accounts filing requirements will now come into effect from April 2028, giving businesses an additional year to prepare. The reforms form part of the Economic Crime and Corporate Transparency Act 2023, which aims to improve the accuracy, transparency and integrity of information held on the Companies House register. What Will Change? One of the biggest changes will affect small companies and micro-entiti

Government announces summer VAT cut to support families and tourism The Government has announced a temporary reduction in VAT from 20% to 5% on a range of children's meals, family attractions and leisure activities during the summer holiday period. The measure is intended to support families with the cost of living while providing a boost to the hospitality, tourism and leisure sectors. When Will the Reduced Rate Apply? The temporary 5% VAT rate will apply from 25 June 2026 t

Higher mileage rates announced for cars and vans Businesses, employees, and self-employed individuals will benefit from an increase in the tax-free mileage rate for cars and vans from the 2026/27 tax year. The change, which is backdated to 6 April 2026, increases the amount of tax relief available on qualifying business mileage and may provide valuable additional tax savings for those who regularly use their own vehicle for work purposes. Updated Mileage Rates for the Self-Em

Businesses investing in innovation can benefit significantly from Research & Development (R&D) tax relief, but recent developments highlight the importance of ensuring claims are both accurate and well-supported. New HMRC Advance Assurance Pilot Scheme HM Revenue & Customs (HMRC) has launched a new targeted advance assurance service for R&D tax relief claims. The pilot scheme is designed to help Small and Medium-sized Enterprises (SMEs) gain certainty on complex or higher-ris

More taxpayers are choosing to file early HM Revenue & Customs (HMRC) has reported a record start to the 2026/27 tax year, with almost 738,000 Self Assessment tax returns filed during April 2026 alone. In the first week of the new tax year, 298,905 taxpayers had already submitted their 2025/26 tax returns, demonstrating a growing trend towards filing well ahead of the January deadline. While the Self Assessment filing deadline is not until 31 January 2027, many taxpayers are

Additional disclosures required on Self Assessment tax returns HM Revenue & Customs (HMRC) is introducing new reporting requirements for company directors from the 2025/26 tax year, increasing the amount of information that must be disclosed on Self Assessment tax returns. The changes are designed to give HMRC greater visibility over dividends paid by owner-managed businesses and close companies, an area that has attracted increasing scrutiny in recent years. What Information

Better forecasting can improve decision-making and profitability Creating a budget or financial forecast is an essential part of running a successful business. However, a forecast is only valuable if it is based on realistic assumptions and regularly reviewed. In an increasingly uncertain economic environment, accurate forecasting can help business owners make informed decisions, identify potential cash flow challenges and take advantage of growth opportunities before they a

Small changes can have a big impact on your bottom line Many business owners assume that increasing profits requires a major new product, a significant investment, or a complete change of direction. In reality, some of the most effective profit improvements come from making small, deliberate changes to everyday business activities. Most profit improvement strategies fall into four key areas: Attract more of the right customers. Increase sales to existing customers. Review and

HMRC warns businesses about misleading VAT deadline advice Artificial Intelligence (AI) tools are becoming increasingly popular for answering business questions, but recent reports suggest that some AI-generated guidance is contributing to a rise in late VAT return submissions and payments. HM Revenue & Customs (HMRC) has issued a reminder to VAT-registered businesses that statutory VAT filing and payment deadlines do not change when they fall on a weekend or bank holiday. Ma

What schools and academy trusts need to know from the latest Department for Education updates The Department for Education (DfE) has published a series of updates during May and June 2026 covering funding, free school meals, capital investment, academy development and learner support. While many of the announcements are operational in nature, several contain important information for academy trusts, school leaders and finance teams as they plan for the 2026/27 academic year.

Businesses urged to stay alert to fraudulent invoices Companies House and the Intellectual Property Office (IPO) have issued a warning to businesses about a growing number of misleading payment requests being sent by fraudulent organisations. These invoices often appear official and may be sent by post to a company's registered office or delivered by email. Their aim is to persuade businesses to pay for services that are either available directly from Companies House or the I

If you are considering selling your business - whether in the near future or several years from now - one of the first questions you are likely to ask is: “What is my business actually worth?” While there are various valuation methods and financial formulas available, the reality is that a business is ultimately worth what a buyer is prepared to pay for it. That decision is based on far more than profit alone. Experienced buyers will assess the level of risk involved, the sus