The UK property market has always been attractive to investors, including not just new residents in the UK but also many overseas landlords who live elsewhere but still want to invest in UK rental properties. But are you aware that overseas landlords are subject to the Non-Resident Landlord Scheme (NRLS)? In most cases, the UK does not tax non-residents. However, if non-residents earn income from the UK, they are required to pay taxes on it. To address this, the government introduced the Non-Resident Landlord Scheme (NRLS) in 1996. This scheme allows HMRC to collect taxes in advance from landlords living outside the UK. The scheme applies not only to landlords themselves, but also to those managing properties in the UK on behalf of overseas friends or family members. 1.How does the NRLS work? The Non-Resident Landlord Scheme (NRLS) applies to ‘non-resident landlords’ (also referred to as overseas landlords) and places responsibilities on both the tenant and letting agents. The tax year for NRLS runs from April 1 to March 31. If you live abroad but earn income from renting property in the UK, this income is typically subject to UK tax, just like any other income sourced from the UK. However, as it is difficult for HMRC to track individuals living overseas, the NRLS is designed to deduct taxes in advance. 2.Who qualifies as a ‘non-resident landlord’? Under the NRLS, if you spend six months or more per year outside the UK but own rental property in the UK, you are considered a ‘non-resident landlord’. This is different from the broader tax definition of a ‘non-resident’. In practice, HMRC considers people who have left the UK for six months or more as having a habitual residence outside the UK. Even if you are a UK citizen, you are still classified as a non-resident landlord if you do not meet the residency conditions. Furthermore, the NRLS applies not only to individuals but also to companies and trustees that own rental properties in the UK but are based abroad. If you qualify as a non-resident landlord, you must register with the NRLS to manage your tax obligations. Here are the steps: Fill out the NRL form: Individuals use form NRL1, companies use NRL2, and trustees use NRL3. Provide documents: Submit evidence of living abroad, such as utility bills, rental agreements, or bank information. Submit to HMRC: Send the completed forms and documents for approval. 3.Letting agents and tenants’ responsibilities If you do not manage your UK property yourself, you may hire a letting agent or ask friends or family to help, who will then act as your letting agent. Alternatively, you may manage the property directly from abroad by liaising with tenants. In these cases, your letting agent or tenant has a legal responsibility under the NRLS. They must send quarterly reports to HMRC and handle the paperwork. Additionally, they are responsible for deducting the required tax from your rental income before forwarding it to HMRC. 4.How is tax deducted? UK tax law mandates that 20% (the basic rate of income tax) be deducted from rental income paid to a non-resident landlord before the landlord receives it. For example, if a letting agent is managing a property and needs to pay the landlord £1,000 in rent, they must deduct £200 (20%) in tax, pay £800 to the landlord, and send £200 to HMRC. The purpose of this rule is to prevent rental income from flowing overseas and eroding the UK tax base. However, non-resident landlords can request to receive the full rental income without tax being deducted in advance by applying for ‘full rent receipts’ from HMRC. If granted, the landlord can manage their tax obligations themselves, but they must ensure they pay taxes on time. 5.What if you don’t apply for full rent receipts? If non-resident landlords do not apply for or receive approval for full rent receipts, 20% tax will automatically be deducted from their UK rental income. Any pre-deducted tax must be paid to HMRC within 30 days after each calendar quarter ends. Letting agents or tenants are responsible for making these deductions, submitting payments, and filing quarterly and annual tax returns. Tenants must also deduct tax if there is no letting agent involved and the weekly rent exceeds £100. 6.What if there are multiple landlords? If multiple landlords co-own a property, each landlord must individually register for the NRLS and submit their self-assessment tax returns. Tax deductions under the NRLS will be calculated and paid based on each landlord’s ownership share in the rental income. Some advice from TB Accountants It’s important to note that even if a non-resident landlord applies for full rent receipts, this does not reduce their tax obligations. Overseas landlords must review their tax situation in their country of residence and pay any owed taxes on time. Additionally, if letting agents or tenants are responsible for managing the property, you must ensure that they fully understand the NRLS rules. Non-compliance can have serious consequences. At TB Accountants, we offer a range of services to help non-resident landlords register for and comply with the NRLS. We’ve assisted many overseas landlords with tax returns, dual tax treaties, and personal allowances. If you need help, feel free to contact us for professional advice. For individuals and businesses looking for UK taxation services, use our contact form  to get in touch for more information. Get in touch with us at info@tbgroupuk.com  or for a free one-to-one consultation.  This article is intended as general guidance only, and does not replace any legal or professional advice.  For enquiries, please contact  TBA Group  via  email  or  WhatsApp .

If you plan to invest in property in the UK for rental business or want to temporarily rent out a vacant property, whether you are a professional landlord or just a side hustler, you have an obligation to declare your rental income for tax purposes. You must report this income each tax year and pay income tax and National Insurance. HMRC is strict, and there are many documents landlords need to prepare and fill out when reporting taxes. If it’s your first time filing a tax return, you might feel overwhelmed – the more properties you rent out, the more complex the process becomes. Today, we aim to clarify things and guide you step-by-step on how to report and pay taxes on rental income. When do I need to file a tax return? Landlords are subject to taxes including stamp duty, capital gains tax, and income tax on rental income. Stamp duty and capital gains tax usually apply when landlords buy and sell properties; here, we focus mainly on income tax from rental income. If you are a landlord with rental income below £1,000, you don’t need to report or pay any tax. However, if your rental income is between £1,000 and £2,500, you must proactively contact HMRC to inform them of your income. Remember, if your rental income exceeds £2,500 in a tax year, you must report it. According to tax law, you need to register and fill out a “self-assessment tax return” to report to HMRC. If you fail to do this before the annual deadline, you may face penalties ranging from £100 to fines based on 100% of your taxable rental income. Our step-by-step guide for tax returns 1.Register with HMRC The deadline for submitting the self-assessment tax return online is January 31 of the following tax year. However, if you haven’t registered for self-assessment before, you must do so by October 5 of the tax year in which you first receive rental income. Go to the government’s self-assessment tax return website to register. After registering, you will receive a government gateway user ID and password. Use these to set up your personal tax account, allowing you to manage all your taxes online. You will then receive a Unique Taxpayer Reference (UTR) number, which is your code for submitting tax returns and making payments. You can then submit your self-assessment online before the January 31 deadline. Late submissions will incur penalties. If you prefer, you can still submit the return on paper and mail it to HMRC, but ensure you complete this before October 31. 2.Prepare Your Documents Even if you can submit everything online, you need to compile the relevant documents first, including rental dates, expenses incurred, and accounts of rental income received. Keeping all documents related to your rental income and expenses can simplify tax reporting; you can also file them in case tax officials have any questions about your return. Here’s a summary of the information landlords need to retain: Contracts/Lease agreements Receipts Rent books Invoices Bank statements Mileage logs and vehicle costs (if applicable) Documents related to property purchases Days the property was rented out Amounts spent Total rental income received 3.Organise and calculate rental income You need to pay tax on your rental income, which refers to the net profit. Therefore, calculate your rental income for the tax year and then determine the allowable deductions—HMRC allows landlords to deduct business expenses incurred for renting out property when calculating profits. Allowable expenses include: Property repairs and maintenance (not including renovations) Utilities, council tax, gas, and electricity Replacement of household items (if the property includes items like wardrobes or beds) Accounting and agency fees (you can reduce these by not hiring agents) Landlord insurance Operating costs Service fees, including cleaning Direct costs, including phone bills, stationery, advertising for tenants Vehicle operating costs You might know that mortgage interest is no longer a deductible expense. However, you can claim a 20% tax credit on mortgage interest payments. If you have questions about allowable business expenses, feel free to consult us. 4.Fill out your tax return Log in to your personal tax account using your government gateway ID. Next, using your UTR, you can select the option to submit your self-assessment. It assumes you will report rental income along with other income, dividends, interest, etc. If these do not apply to you, you don’t have to fill them out. Just declare which sections you need to complete, and the form will adjust accordingly. You need to submit your rental income from properties in the UK in the property section. One section of the form will ask about the deductions you want to claim (which we advised you to prepare in advance) to apply for tax relief. After filling out all online sections of the form, you can return to modify data, save for later use, or submit. 5.Pay your taxes! Now comes the crucial part—payment. The tax portal will calculate your tax bill, and you must pay by the January 31 deadline. If you applied online, you can view your calculations to see how much you need to pay. Payments can be made via online banking or telephone banking, debit cards, or company credit cards (if applicable), but not with personal credit cards or bank or building society payments. Other options include BACS, checks, or direct debit, but allow extra time for processing. If you plan ahead and set aside part of your monthly income for tax, life will be much easier. If for any reason you don’t have the cash to pay your taxes, you can arrange a payment plan with HMRC over the next 12 months. If you have questions about this process, please consult your accountant. Some advice from TB Accountants Many landlords in the UK rent out one or more properties in their personal names to earn extra income. Therefore, most landlords need to fill out self-assessment tax returns to report to HMRC rather than filing corporate tax returns. There are various issues that may arise when submitting self-assessment tax returns, so you must remain vigilant. Here are a few points to note: If you rent out multiple properties, you need to combine your total profits/losses before calculating your tax obligations Profits/losses from overseas properties must be reported separately from UK properties, as these need to be reported individually If you are a foreign national, you must fulfil your tax obligations through the Non-Resident Landlord Scheme If you cannot pay your taxes on time, contact HMRC immediately to discuss the support they can provide to avoid penalties For individuals and businesses looking for UK taxation services, use our contact form  to get in touch for more information. Get in touch with us at info@tbgroupuk.com  or for a free one-to-one consultation.  This article is intended as general guidance only, and does not replace any legal or professional advice.  For enquiries, please contact  TBA Group  via  email  or  WhatsApp .

Recently, the High Pay Centre in the UK released a corporate pay report, and the figures are jaw-dropping! According to the report, the average salary for CEOs of FTSE 100 companies last year reached a record high of £4.2 million.  To put this into perspective, this means the income of a FTSE 100 CEO is 120 times higher than that of the average worker. 1.How much are CEOs paid? In 2022, the average salary for FTSE 100 CEOs was £4.1 million, meaning there was an increase of £100,000 in just one year. The High Pay Centre noted that this growth was mainly driven by particularly generous pay agreements at a small number of publicly listed companies. Reportedly, eight companies last year offered salaries exceeding £10 million, while only four companies did so in 2022. The report also highlighted the gender disparity in CEO salaries within FTSE 100 companies. Female CEOs earned significantly less, with an average salary of £2.69 million, compared to £4.19 million for male CEOs. This gap is primarily due to the smaller number of female CEOs – in the 2022-2023 financial year, only six companies had female CEOs. At the top of the pay list is Pascal Soriot, CEO of AstraZeneca, who is 65 years old. Can you guess how much he earned? Last year, Soriot’s salary was £16.85 million. In second place is Erik Engstrom, CEO of analytics company Relx, aged 61, with a salary of £13.64 million. Reportedly, companies such as Rolls-Royce, BAE Systems, GSK, HSBC, Pearson, and Diageo also paid their CEOs eight-figure salaries last year. For these executives, there could be even more good news – the UK government has made no commitments to limit executive compensation packages or introduce a ‘wealth tax’ on the super-rich, meaning most of their money stays in their pockets! You might be wondering, why are UK executives paid so much? The FTSE 100 index refers to the 100 companies listed on the London Stock Exchange, mostly UK companies but also including firms from other European countries. In comparison to American executives, the pay of these CEOs is actually quite modest! In 2020, the average salary for UK executives was only one-fifth of that for US executives. For instance, Sundar Pichai, CEO of Google’s parent company Alphabet, earned $226 million (£177 million) last year, and Nikesh Arora, CEO of Palo Alto Networks, earned $151 million. Astonishing, right? 2.How are executive and employee salaries determined? Salaries are usually determined by balancing various factors. For company executives, their pay structure can be quite complex, with base salary being just one part of the package. Executives also receive significant bonuses, often a mix of cash and stock options, which include annual bonuses based on internal targets and long-term incentives tied to performance over time. Executives also receive pensions (or cash equivalents in lieu of pensions) and other perks such as company cars, drivers, health insurance, and life insurance. If a new executive has to forfeit substantial stock or bonuses from a previous job, they may negotiate additional compensation, on top of other incentives. All these pay details are set by the company’s remuneration committee, made up of board members, and the committee typically hires compensation consultants to devise pay formulas. The details are published in the company’s annual report, and executive pay packages are subject to shareholder votes every three years. Shareholders can also vote annually to express their dissatisfaction with the current pay package, though these votes are advisory, meaning the company isn’t obligated to make changes. If you’re planning to start a company in the UK, you need to think not only about how much to pay your executives but also about employee salaries. Offering high pay can attract and retain talent, showing you value your employees and boosting their self-worth. However, as a business owner, you don’t want to overspend on salaries. So, what’s the right number? You’ll need to weigh factors such as: What future employees want The market value of employees Their value to your business What you can afford 3.Tips for employers Be clear about the role Understand your business structure and know what type of employee you need and for which position. Make sure the job title accurately reflects the role and responsibilities and define the percentage of time spent on each task. Research the Market and Gather Salary Data Look into what other companies are paying for similar roles. Keep in mind that salary data can change quickly, particularly for in-demand skills, so stay updated. Talk to local employers While online research is a good start, it’s also useful to talk to other business owners and recruitment firms to get a sense of appropriate salary ranges. Follow local laws Be aware of legal requirements regarding wages, including minimum wage, pay dates, frequency, and record-keeping obligations. Understand candidate expectations When interviewing candidates, don’t forget that they may have their own salary expectations. You can ask about their current pay structure and additional benefits. Calculate what you can afford After gathering market data, it’s time to assess your business budget. Consider how much a new employee can generate in revenue within the first year and how their salary fits into your company’s structure. Lastly, don’t forget to consider taxes! For instance, if you’re paying yourself as a company director, research whether it’s more tax-efficient to receive a salary or dividends.  If you’re paying employees, remember to apply for business expenses to lower your company’s tax bill. For any tax-related questions, feel free to contact TB Accountants for expert advice! For individuals and businesses looking for UK taxation services, use our contact form  to get in touch for more information. Get in touch with us at info@tbgroupuk.com  or for a free one-to-one consultation.  This article is intended as general guidance only, and does not replace any legal or professional advice.  For enquiries, please contact  TBA Group  via  email  or  WhatsApp .

With the conclusion of the UK general election, the Labour Party has become the ruling party and introduced a series of new fiscal measures in its Autumn Budget. As part of the new measures, the Treasury plans to increase funding for HMRC in order to hire 5,000 new employees to combat tax fraud. This means that tax audits in the UK will become stricter! Even a slight oversight could result in hefty fines, and the accounting fees during the audit process could also become a significant expense. The UK is further intensifying tax audits The newly appointed finance minister responsible for HMRC, James Murray, briefly outlined his plan to tackle tax avoidance and allocate HMRC funds in a written statement to Parliament. As early as May 2024, the previous Conservative government provided HMRC with £51 million in emergency funding to address the urgent resource issues caused by the decision not to close a series of HMRC helplines. During the campaign, the Labour Party stated that to recover £6 billion in unpaid taxes over the next five years, they would take action to eliminate the abuse of the tax system. Before being elected, the Labour Party also indicated that it would provide up to £555 million in new funding for HMRC as part of its anti-tax evasion efforts, outlined in a document titled ‘Labour’s Plan to Close the Tax Gap’. This will increase HMRC’s planned budget for 2024/25 from £4.7 billion to £5.27 billion, a 12% rise. Murray told MPs that the government will take a comprehensive approach to addressing the tax gap and ensure that more unpaid tax revenues are collected properly. Can timely tax filing lead to a tax audit? It’s possible, because tax audits are somewhat random. Any individual, sole trader, or business can be audited by HMRC, even if you submit your tax returns on time and pay your taxes on time. Additionally, if your upstream or downstream business partners are audited, you may also be investigated. How to reduce losses caused by tax audits Given the increasingly strict tax audits, what can businesses do to avoid large losses during an audit? If you are audited by HMRC, your accountant will need to assist you in communicating and defending the case with HMRC, potentially gathering evidence across regions, incurring time costs. If the case involves another city, the accountant may also need to travel for work, leading to additional expenses like travel, accommodation, and meals.  Accountants will inevitably charge these extra fees during the audit period, and it can become quite expensive. However, if you are one of our existing clients and have purchased our Compliance Fee Protection Service (CFPS) , you won’t need to pay these additional expenses, which could save you thousands of pounds! Note, though, that the CFPS does not cover the following situations: Investigations of Fraud Cases handled by HMRC’s Fraud Investigation Service, Civil Investigations of Fraud, Criminal Investigation Sections, or The Counter Avoidance Directorate. Late Submissions Tax returns (income tax, corporate tax, VAT, or IHT) submitted more than 90 days after the statutory tax date, or failure to notify HMRC of tax obligations or VAT registration within the statutory period. Voluntary Disclosure Investigations arising from voluntary disclosures to HMRC; tax, NIC, or VAT liabilities arising from deliberately misleading HMRC; or submitting incorrect tax returns. Business Record Fees Professional fees incurred during pre-HMRC PAYE/VAT audits for reviewing/preparing business records, preparing and checking returns, accounts, or statutory declarations, and professional assessment costs, including VAT Returns, Construction Industry Scheme (CIS) Returns, and Real-Time Information (RTI) submissions. Third-party fees, such as property valuations for SDLT/LBTT/LTT returns, are also not covered (unless prior written consent from the firm is obtained). Penalties, Duties, or Interest The plan does not cover fines, interest, or duties payable by the taxpayer or tax-paying business. As HMRC strengthens its compliance audits, both individuals and businesses will face stricter tax reviews.  CFPS can help reduce unnecessary losses during an audit. Different business entities can select the type of tax compliance audits covered and the service period. The firm will determine whether the audit notice is eligible based on the date and specific details as specified on HMRC’s audit letter.  Contact us for more information about the CPFS. For individuals and businesses looking for UK taxation services, use our contact form  to get in touch for more information. Get in touch with us at info@tbgroupuk.com  or for a free one-to-one consultation.  This article is intended as general guidance only, and does not replace any legal or professional advice.  For enquiries, please contact  TBA Group  via  email  or  WhatsApp .

In the past decade, the UK tax authority (HMRC) has frequently conducted surprise audits, with the number of tax investigations increasing significantly each year. For friends running businesses or working in the UK, one of the most stressful issues every year is the tax authority’s audits. These surprise audits not only create anxiety but also financial pressure. Many clients need to defend themselves against tax investigations and often have to hire accountants and other professionals to gather evidence, organise accounts, etc., resulting in costs amounting to thousands of pounds. If you are worried about these issues, this post is for you! Did you know that when HMRC comes knocking, if you have enrolled onto our Compliance Fee Protection Scheme, you can avoid related accounting fees resulting from a tax investigation? So, what exactly is this service? Is it worth buying? Does it cover all fees?  Don’t worry, we will clarify everything for you today. What is a compliance check? Let’s briefly explain the basic process of tax audits conducted by HMRC. When the tax authority suspects that there is a discrepancy between the taxes they should collect from individuals or businesses and the actual taxes collected, they initiate a tax investigation—also known as a ‘compliance check’ —to ensure that individuals and businesses pay the correct amount of tax and address the ‘tax gap’. Any individual, sole trader, or business can receive an invitation for an investigation, even if you submit your tax returns on time and pay the taxes due. You may also be randomly selected for an audit if your upstream or downstream businesses are being investigated by the tax authority. HMRC has very advanced technology that allows them to track high-risk or unusual situations at any time.  The most likely triggers for a tax investigation include (but are not limited to): Late submission of tax returns Incorrect figures in tax returns or accounts Reports from others about unusual activity in your accounts Your industry being deemed ‘high risk’ (e.g. regularly only accepting cash transactions) Lost information Inconsistent tax return figures (significant increases or decreases) Possible undisclosed background activities Typically, tax investigations can be categorized into three types: aspect queries, full investigations, and random checks. Regardless of the type of investigation, the consequences and costs can be severe. An important part of compliance checks is thoroughly reviewing and verifying your financial records. Before HMRC conducts a compliance check on a taxpayer or business, they will notify you by letter or phone, specifying what they wish to examine, such as: Any taxes you have paid Accounts and tax calculations Self-assessment tax returns Corporate tax returns PAYE records and returns if you employ staff Upon receiving a notice of audit, the taxpayer needs to prepare according to the letter’s instructions. Due to the complexity of the process, taxpayers or businesses usually require the help of professional accountants or tax experts to navigate through it. Professionals can assist their clients in gathering and organising all necessary documents, cross-checking the accuracy of all data, and preparing for HMRC’s review. What is our Compliance Fee Protection Scheme? As mentioned earlier, each year, HMRC decides whether to investigate the validity of tax returns submitted by taxpayers or businesses or whether to ask the parties to clarify certain issues. During the investigation, accountants need to assist clients in preparation for the check.  This can include organising information for clients, communicating with the tax authority, and finding ways to defend clients, among other tasks—these all take time. Sometimes, inquiries from HMRC can be delayed, extending the investigation period. As a result, accountants often have to charge clients for these additional costs incurred during the investigation. They typically bill clients for these hours – if the client’s case involves travel to other cities, accountants charge for travel-related expenses, such as hotel fees and transportation costs. In such situations, taxpayers or businesses can face unexpected expenses, which can be extremely high. Our scheme introduces a single annual flat-rate fee to alleviate any uncertainties. What does the Scheme not cover? Of course, our service does not cover all fees. For example, it does not cover the following situations: Cases of Fraud: Cases handled by HMRC’s Fraud Investigation Service, Civil Investigations of Fraud, Criminal Investigation Sections, and the Counter Avoidance Directorate. Late Submissions: If a taxpayer or business’s income tax, corporation tax, VAT, or inheritance tax return is submitted more than 90 days after the statutory due date; if the client fails to notify their tax obligations or register for VAT within the statutory deadline. Voluntary Disclosures: Investigations due to voluntary disclosures of relevant information to HMRC; taxes due, NIC or VAT liabilities arising from misleading HMRC intentionally; submission of incorrect tax returns to HMRC. Business Record Expenses: This audit protection service primarily covers expenses incurred during the audit period. Professional fees incurred while reviewing and/or organizing client business records before HMRC conducts PAYE and/or VAT tax reviews are not included; furthermore, this protection service does not cover accountants’ preparation and verification of returns, accounts, records, or any statutory submissions; costs related to professional assessments, including VAT Returns to accounts, Construction Industry Scheme (CIS) Returns, Real Time Information (RTI) payment submissions; third-party expenses, including property valuations related to SDLT/LBTT/LTT returns (unless prior written consent from the firm is obtained). Fines/Taxes/Interest: This plan does not cover fines, interest, or any taxes that taxpayers and businesses must pay. Why do I need this service? Given the current reality, the number of investigations by HMRC is significantly increasing and is unlikely to decrease in the near future. During a tax investigation, you may be asked various complex or confusing questions by audit officials and required to submit more documents and information, often without knowing exactly what HMRC is reviewing or how long the audit will take. If you purchase this service, you essentially buy ‘peace of mind’ in advance, allowing you to pass everything to your accountant, who will handle the investigation for you. Some advice from TB Accountants In the UK, most accounting firms offer some form of fee protection plan to their clients. However, like other insurance policies, the coverage and amounts offered by each service provider will vary. Different business entities can choose the types of tax compliance reviews covered and the service duration, with limitations on what accounting firms can determine based on the date of the tax authority’s audit letter. We strongly recommend that you consult professionals and review related content carefully before purchasing; you should specifically look at the scope of reimbursable expenses and the restrictions involved. For individuals and businesses looking for UK taxation services, use our contact form  to get in touch for more information. Get in touch with us at info@tbgroupuk.com  or for a free one-to-one consultation.  This article is intended as general guidance only, and does not replace any legal or professional advice.  For enquiries, please contact  TBA Group  via  email  or WhatsApp .

Have you reviewed how the latest Autumn Budget could affect you? Touted as one of the largest tax-increase budget in UK history, its contents include: An increased minimum wage Changes to income tax and National Insurance State pension increases Stamp duty increases on second homes Capital gains tax hike Inheritance tax reform Business rate relief & abolishment of the Non-Domicile tax status VAT exemption removed for private schools A key revenue source for the government Recently, the Environment Minister Steve Reed criticized the previous Conservative government, stating it ‘deliberately obscured’ the true state of public finances, leaving a ‘£20 billion gap’ which effectively justified future tax increases. Inheritance tax therefore emerged as a major focus for revenue generation. The Autumn Budget confirms that from 6 April 2027, unclaimed pension funds and death benefits will be included in the inheritance tax base. This means pensions are no longer a tax-efficient tool for transferring wealth to the next generation. Additionally, the inheritance tax threshold, initially set to expire in 2028, will be extended to 2030, allowing up to £325,000 to be inherited tax-free. This rises to £500,000 if the estate includes a family home passed to direct descendants and up to £1 million if passed to a surviving spouse or partner. However, starting in April 2026, agricultural and business asset relief is capped at £1 million. Any excess will receive a 50% tax exemption, resulting in a 20% inheritance tax on applicable assets beyond the threshold. Meanwhile, stocks in alternative investment markets will qualify for a 50% inheritance tax reduction, with an effective tax rate of 20%. Overall, these changes aim to raise over £2 billion by the end of the forecast period. Minimising your inheritance tax bill Though inheritance tax may seem unavoidable, residents can take advantage of certain policies to reduce it: Gift Giving : Gifts made at least seven years before death are tax-free. An annual exemption allows tax-free gifts up to £3,000, and smaller gifts of up to £250 can be given without additional allowances. You can also carry over any unused annual tax-free allowance to the next tax year—but only for one tax year. If you are attending a wedding, you can gift up to £1,000 without worrying about inheritance tax (IHT). You can give more to relatives—up to £2,500 to grandchildren and up to £5,000 to children. To qualify as an IHT-exempt gift, the gift must be made before the wedding, and the wedding must take place. Otherwise, the gift will be considered a potentially exempt transfer. Charity Donations : Leaving donations to UK-registered charities exempts them from inheritance tax. If more than 10% of the taxable estate is donated, the inheritance tax rate drops from 40% to 36%. Leave to Spouse or Partner : Transfers to spouses or civil partners are tax-free, regardless of amount. Unused allowances can be transferred, resulting in a combined allowance of up to £1 million. Property Allowance : Passing a residence to children or grandchildren allows an additional £175,000 exemption. Equity Release : Options such as lifetime mortgages or home reversion plans can reduce estate value. However, care is needed with lifetime mortgages due to accumulating interest. Insurance : Policies can cover inheritance tax liabilities. Trusts : Placing assets in trusts can control how assets are distributed, potentially reducing inheritance tax. Inheritance tax and pension policies directly impact financial planning, and consulting with a tax expert can offer more tailored advice to suit your needs. For individuals and businesses looking for UK taxation services, use our contact form  to get in touch for more information. Get in touch with us at info@tbgroupuk.com  or for a free one-to-one consultation.  This article is intended as general guidance only, and does not replace any legal or professional advice.  For enquiries, please contact  TBA Group  via  email  or  WhatsApp .

With the UK self-assessment tax deadline fast approaching, HMRC is urging taxpayers who haven’t completed their personal tax filings to review their property income—landlords being the primary target. HMRC has issued updated guidance for landlords in its ‘Let Property Campaign’, encouraging them to disclose any undeclared rental income and settle outstanding taxes promptly. Key Highlight ‘If you’re a landlord and you have undisclosed income, you must tell HMRC about any unpaid tax now. You’ll then have 90 days to work out and pay what you owe. If you do not do this now, and HMRC finds out later, you could get higher penalties or face criminal prosecution.’ Anyone earning rental income in the UK is obligated to report and pay taxes on it annually. Following the Autumn Statement last month, there have also been changes to property-related taxes that landlords should be aware of. What taxes do landlords pay? Income Tax Rental income is subject to income tax if it exceeds the personal allowance threshold. UK-based landlords: Eligible for a £12,570 annual personal allowance Overseas landlords: no tax-free allowance applicable Income tax rates are as follows: Basic rate (20%) Higher rate (40%) Additional rate (45%) For most overseas landlords, the standard 20% rate applies.  The basic calculation is: Tax owed = (Rental income – Allowable expenses) × 20% However, this doesn’t necessarily result in higher tax liabilities for overseas landlords. For example, UK-based landlords with other significant income (e.g., exceeding £43,000 annually) may face 40% or higher tax rates on their rental earnings. Capital Gains Tax (CGT) When selling a property, landlords are required to pay CGT on any profits made. Rates remain unchanged after the Autumn Budget: 18% for basic rate taxpayers 24% for higher and additional rate taxpayers CGT applies to gains from selling properties that are not your primary residence. Private residence relief may exempt you from CGT if the property was your main home for at least 90 days annually and not rented out. Important deadlines: Capital gains must be reported to HMRC within 30 days of the sale Failure to comply could result in automatic fines, starting at £1,300 per owner for delays over six months Council Tax Council tax covers local services such as waste collection, street lighting, and public facilities. Who pays council tax? Main residences: Occupants (landlords or tenants) pay Shared homes/couples: Residents split the bill or receive a joint account Single occupants: Eligible for a 25% discount Houses in Multiple Occupation (HMOs): Landlords usually cover council tax, often bundled into rent Vacant properties: Owners pay Full-time students: Exemption by providing proof of status to the local council Discounts or exemptions are available for: People under 18 or in apprenticeships Full-time students or young adults in education Those with severe mental impairments Diplomats and other exempt individuals Stamp Duty Land Tax (SDLT) SDLT is a tax on property purchases in England and Northern Ireland, with varying rates based on the property price, buyer’s status, and intended use. Buy-to-let or second homes: subject to an additional 5% SDLT surcharge First-time buyers: exempt from SDLT on the first £250,000 of the property price, with a relief cap of £425,000 for homes priced below £625,000 Some Advice from TB Accountants Property investments in the UK can be lucrative, but landlord tax rules—especially for overseas landlords—are complex. UK residents: must report global income Non-residents: must declare UK-derived income Failure to understand these rules may lead to missed declarations and penalties. We recommend consulting with a specialist tax advisor to ensure that you understand the implications of any financial decisions and arrangements. For individuals and businesses looking for UK taxation services, use our contact form  to get in touch for more information. Get in touch with us at info@tbgroupuk.com  or for a free one-to-one consultation.  This article is intended as general guidance only, and does not replace any legal or professional advice.  For enquiries, please contact  TBA Group  via  email  or    WhatsApp .

With the fast-paced lifestyle of modern society, convenient online shopping has become essential for most people. However, a recent UK report found that the total annual value of online shopping returns by British consumers has reached a staggering £6.6 billion! On average, each person returns around £1,400 worth of products—a figure that some may not even spend in a year on online shopping. Let’s take a look in a bit more detail. Returns in 2024 set to reach £27 billion? According to a report by return logistics company ZigZag and research firm Retail Economics, UK returns are expected to reach £27 billion by the end of this year. The amount returned by frequent returners alone accounts for £6.6 billion, or about a quarter of all returns, with this group making up around 11% of all consumers. Why are online returns so high in the UK? The report suggests that serial returners and slow returners tend to be more impulsive shoppers, often returning items due to buyer’s remorse, making up nearly half of all returns. In the UK, over one-fifth of non-food online purchases are returned. More than two-thirds (69%) of Gen Z consumers tend to shop excessively, such as buying multiple similar items only to realize they don’t need them, or impulsively buying items they later decide against. Similarly, over two-fifths (42%) of shoppers admit to purchasing the same item in different sizes or colours to try on at home, then returning the ones they don’t want. ‘Wardrobing’ and ‘staging’ in online shopping About one in six shoppers (16%) admit to purchasing clothes or shoes online with the intent of using them temporarily, such as for a social event. Some shoppers even buy clothes just to show them off on social media, a trend called ‘staging’. Since products can be returned as long as they are undamaged and retain their tags, many consumers take advantage of this, maximising product use at no extra cost. Frequent returns increase pressures on sellers to manage inventory and drive sales growth. To combat rising costs and return fraud, sellers are expected to continue introducing paid return policies and measures against return abuse. Why invest in e-commerce despite high return rates? Despite the high rate of returns, which costs sellers considerable time, effort, and money, many still choose e-commerce—especially in recent years as cross-border trade has surged. It’s common to see news headlines about sellers earning thousands monthly or having products sell out instantly through cross-border e-commerce in the UK. The money-making strategy you don’t know about? Even with return rates hitting £27 billion, UK-based e-commerce still attracts many sellers due to the advantages of operating from the UK, particularly for cross-border e-commerce. Here are some benefits of registering a UK company for cross-border e-commerce: Strategic Location: The UK is geographically well-positioned between Europe and North America, serving as a hub for both markets and offering a wide reach and efficient logistics. Digitalized Consumer Base: British consumers’ digital lifestyle habits provide vast potential for cross-border e-commerce. (The £27 billion return rate also reflects the preference for online shopping.) Strong Online Retail Market: The UK is home to well-established online retailers like Amazon, eBay, and Walmart, providing robust sales channels for cross-border sellers. Advanced Logistics Infrastructure: The UK’s comprehensive logistics system, covering delivery, warehousing, and distribution, enables sellers to choose their logistics solutions or use platform-provided services. Tax Benefits: Companies with a turnover under £90,000 are exempt from VAT. Above that threshold, sellers manage their VAT filings independently and can benefit from a lower tax rate. Flexible Account Management: With no foreign exchange controls, funds can be freely transferred, making it easier to manage cross-border settlements and finances. Simple Registration Process: Only one shareholder is required to register a UK company, with no nationality restrictions. The minimum capital is £1, with no need for capital deposits, and the process is straightforward and quick. Brand Building: A UK-registered company helps enhance brand credibility and global visibility, strengthening competitive advantage. Ease of Listing: The UK’s mature economy and transparent listing system make it easier for companies to go public. These advantages make UK registration an ideal pathway for cross-border e-commerce, particularly for companies aiming to enter the international market. What are the requirements for registering a UK company? Company Name: The name must end with “Limited,” “Ltd.,” “LLC,” or similar, indicating limited liability. It cannot duplicate existing company names or include sensitive or misleading terms. A name check is required to ensure it is unique and compliant. Registered Address: The company needs a UK address, which can be an actual office or a virtual address. Director(s): At least one director aged 16 or older is required, with no nationality restrictions. Shareholder(s): At least one shareholder, either an individual or a company, with no nationality restrictions. Company Secretary: A company secretary is optional. Registered Capital: Minimum capital of £1, with an upper limit of £1 million, to be specified in the articles of incorporation. Some advice from TB Accountants If you’re considering registering a UK company, additional requirements may apply. For example, hiring UK employees requires compliance with labour laws; specific business activities might need licenses or certifications. Tax filings and annual audits are also essential for compliance. When preparing registration materials, ensure all information is accurate and complete. Consulting a professional registration advisor or attorney can help ensure a smooth and compliant registration process. Reach out to TB Accountants if you have any questions. For individuals and businesses looking for UK taxation services, use our contact form  to get in touch for more information. Get in touch with us at info@tbgroupuk.com  or for a free one-to-one consultation.  This article is intended as general guidance only, and does not replace any legal or professional advice.  For enquiries, please contact  TBA Group  via  email  or   WhatsApp .

For business owners in the UK, one of the most stressful events is likely a surprise visit from the tax office.  Without any prior notification, they may suddenly inspect your store or any other business premises. This often happens when HMRC suspects a business of tax evasion. According to official data, there have been 4,314 such surprise inspections by HMRC over the past five years. These inspections are so sudden that business owners often don’t know how to respond, which can lead to mistakes, especially if they’re nervous. Without preparation, a business could face serious consequences. So, how can you be prepared? 1.What is a ‘Dawn Raid’? In the industry, surprise inspections are known as a ‘dawn raids’. When HMRC suspects a business of significant tax evasion, they may conduct a dawn raid. While these often happen early in the morning, they could happen at any time of day, emphasizing the unplanned nature of the inspection. When handling most cases, HM Revenue and Customs noticed that if they planned a visit to businesses or requested necessary information through correspondence, the businesses would preemptively destroy some crucial evidence. Therefore, surprise inspections can help HMRC uncover more evidence and information. 2.HMRC’s powers during a raid Once HMRC obtains a search warrant from the court, they assign officers to carry out dawn raids at various locations. It’s important to note that such raids are not necessarily limited to a single site. HMRC often conducts sudden searches of any premises related to the individuals or businesses under investigation. This means they can simultaneously raid a taxpayer’s residential address, business premises, and even the offices of their professional advisors. Under the Police and Criminal Evidence Act 1984 (PACE), HMRC can apply for a search warrant to investigate suspected tax fraud. With a warrant, HMRC must convince a court that: A prosecutable offense has occurred The premises may contain material valuable to the investigation The material likely serves as evidence for criminal proceedings The material isn’t protected by legal privilege, exclusion, or special procedure materials If these conditions are met, HMRC has further rights during a raid, such as forced entry, searching individuals if they suspect them of carrying relevant materials, and making arrests if they suspect an individual of an offense. 3.How to respond to an HMRC Raid — Three Key Tips Given the increasingly strict regulatory environment, the risk of a raid is real. Such a raid can disrupt, stress, and pressure a business, but with preparation, businesses can handle the situation effectively. Before a Raid: Preparation is Key Develop a crisis management plan, setting out a policy for handling such inspections Train employees on the importance of staying calm, polite, and professional during a raid Reception, security, and IT staff may need extra training, as they’ll likely be the first to meet related officers Conduct mock drills if necessary to familiarise staff with procedures During a Raid: Cooperate Fully It’s illegal to obstruct officers or attempt to destroy or hide documents or data Have trained staff present during the inspection to monitor HMRC officers, document all actions, and note down questions and responses Ensure officers stay supervised and that any issues or questions are promptly raised with the legal team After a Raid: Gather Documentation and Seek Professional Advice Obtain copies of HMRC’s notes and any documents they examined or copied Review all records of questions and the responses provided If necessary, seek professional advice from a tax consultant or legal advisor You might also consider setting up an internal investigation team to audit relevant business areas and minimise future issues Generally, after completing a raid, HMRC may take a considerable amount of time, often several years, to review the materials. For individuals and businesses looking for UK taxation services, use our contact form  to get in touch for more information. Get in touch with us at info@tbgroupuk.com  or for a free one-to-one consultation.  This article is intended as general guidance only, and does not replace any legal or professional advice.  For enquiries, please contact  TBA Group  via  email  or   WhatsApp .

Living and working in the UK means you have to deal with HM Revenue and Customs (HMRC). One crucial method of communication is the Self-Assessment Tax Return which HMRC uses to collect income tax. Generally, if you are a full-time employee, your taxes are automatically deducted from your salary and pensions under the PAYE system. However, if your total taxable income exceeds a specified amount or if you have additional untaxed income, you must declare it on your tax return. Today, we provide a guide detailing who must register for a self-assessment tax return, deadlines, and associated penalties. Who needs to register for Self-Assessment? You must submit a tax return if any of the following applies to the previous tax year (April 6 to April 5): You are self-employed and your income exceeds £1,000 (before deducting eligible expenses). You are a partner in a business partnership. Your total taxable income exceeds £150,000. You need to pay Capital Gains Tax when selling or disposing of valuable items, which requires a tax return. You need to pay high-income child benefit charges. If you have any other untaxed income exceeding £2,500, you may also need to submit a tax return, such as: Income from renting properties. Tips and commissions. Interest from savings, investments, and dividends. Foreign income. Other reasons you may need to register and fill out a tax return: To claim certain income tax deductions. To prove you are self-employed, such as for tax-free child benefits or maternity pay. To pay voluntary National Insurance contributions. Is there a deadline? If you have never submitted a self-assessment return before, you must register by October 5 to notify HMRC. Upon registration, you will receive a Unique Taxpayer Reference (UTR) number, which allows you to activate your online services account. After registering, you must submit your self-assessment tax return by the deadline: For online submissions: The deadline is January 31 following the tax year. For the 2024 to 2025 tax year, you must submit by January 31, 2025. For paper submissions: Although most people submit online, HMRC still accepts paper forms. You can request a paper self-assessment form (SA100) by calling HMRC. The deadline for paper forms is October 31 (or January 31 for pension scheme trustees or non-resident companies). For the 2024-2025 tax year, submit paper returns by midnight on October 31, 2024. The mailing address for paper forms is: Self-Assessment HM Revenue and Customs BX9 1AS United Kingdom After submitting your paper return, you can check when you will receive a response from HMRC. If you need to submit an SA100 tax return for the 2021 to 2022 tax year or earlier, you’ll need to obtain the form from the National Archives. Are there penalties for not registering or submitting my tax return? If you miss the deadline for submitting or paying taxes, you will incur penalties. A £100 penalty applies if your tax return is late by three months. Additional delays or late payments result in more fines and interest charges. You can appeal penalties if you have a reasonable explanation. How to Change Your Self-Assessment Tax Return? You can change your return after submission if you made an error. Your tax bill will update automatically based on your amendments. You can also correct your tax return within 12 months of the self-assessment deadline either online or by sending a new paper form. For example, for the 2022 to 2023 tax year, you typically need to make changes by January 31, 2025. If you miss this deadline or need to amend previous tax years, you must write to HMRC. Note that you must wait three days (72 hours) after submission before updating your return. Here’s how to do it: Log in to your account. Select “S elf-Assessment Account” from “Your Tax Account.” Choose ‘More Self-Assessment Details.’ Select ‘Overview’ from the left menu. Choose ‘Tax Return Options.’ Select the tax year you want to amend. Access the tax return, make corrections, and resubmit. If modifying a paper form, call HMRC for the SA100 form. Download all other forms and supplementary pages. Then, send the corrected pages to the self-assessment address, marking each page as “Amendment” and including your name and UTR. If you can’t find the address, send your corrections to: Self-Assessment HM Revenue and Customs BX9 1AS If you need to declare foreign income, the process differs, and you should consult a professional advisor. What if I no longer need to file? In some cases, you might no longer need to complete a self-assessment tax return for various reasons, such as: No longer renting properties. No longer receiving high-income child benefits. Your income falls below the £150,000 threshold. You are no longer self-employed. If you believe you no longer need to submit a return, inform HMRC immediately. If HMRC agrees, they will send a letter confirming that you do not need to file. If they do not agree before the January 31 self-assessment deadline, you may face penalties. If you are no longer self-employed, you must notify HMRC that you have ceased self-employment. Even if you inform them your self-employment has ended, they may still require you to submit returns for future years. If you have verified that you no longer need to submit a tax return, you should inform HMRC. You can notify HMRC through an online form, their digital assistant service, or directly by phone or mail. Regardless of the method, provide your National Insurance number and UTR for identification. Some advice from TB Accountants Whether you are a newcomer or experienced in taxation matters, registering and filling out a self-assessment tax return can be complex. We recommend preparing in advance and maintaining good record-keeping habits. If you’re confused, especially with diverse income sources, consulting a tax expert or hiring one to assist with your forms can alleviate stress. For individuals and businesses looking for UK taxation services, use our contact form  to get in touch for more information. Get in touch with us at info@tbgroupuk.com  or for a free one-to-one consultation.  This article is intended as general guidance only, and does not replace any legal or professional advice.  For enquiries, please contact  TBA Group  via  email  or   WhatsApp .

Christmas is a very important holiday in the UK, and giving gifts is a key part of this tradition. Many people are willing to spend a significant amount of money to buy gifts, hoping to bring joy to their family and friends. But here’s a reminder: make sure to keep an eye on your gifts! Reports indicate that UK thieves are already ‘back to work’ and the number of burglaries has soared. Every year around this time, thieves target people’s Christmas presents. According to police data, jewellery, smartphones, Apple Watches, and other items are among the most commonly stolen goods, with some worth over £100,000. So, how can we prevent these losses? Which Christmas gifts are most popular with thieves? During the holiday season, burglary cases spike. Particularly at Christmas, when homes are full of gifts—some are meant for others, and some are received by the household. Thieves take advantage of this, often breaking in when people are out at gatherings. A report from UK police shows that thieves steal almost any gift, including bottles of alcohol or even a single piece of candy. Recently, media reported that a family’s entire Christmas haul was stolen, with all the presents under the tree taken, including candy from the table. Based on police data, here are the most commonly stolen items and their value: Stolen Items Value Jewellery £103,234 Cash £99,570 Electronics £24,608 Sports Watches £13,475 Decorations £12,255 Hand Tools £3,000 Photography Equipment £2,597 Women’s Clothing £1,050 Alcohol £865 Medals/Currency Collectibles £600 Men’s Clothing £500 Shoes £120 According to police, in the reported burglaries, jewellery and watches account for 32% of cases. These items are hard to trace and easy to hide, making them prime targets for criminals. In England and Wales, one in three burglary reports involves stolen jewellery or watches. Next in line are electronics, including computers, tablets, and cameras, which account for 23% of stolen items, many of which are worth over £1,000. Police note that laptops and tablets are particularly easy to carry off. High-risk areas for burglaries in the UK The following regions in the UK have the highest burglary rates: Middlesbrough: 22 burglaries per 1,000 households | Middlesbrough, in North Yorkshire, has the highest burglary rate in England and Wales. The risk of burglary in this northern town is 11 times higher than in other areas. Manchester: 20 burglaries per 1,000 households | Manchester ranks second in terms of burglary rates, with 20 burglaries per 1,000 households last year. Despite its reputation for being safer than London, Manchester has a higher burglary rate than any other district in London. Doncaster: 18 burglaries per 1,000 households | Doncaster ranks among the top areas for burglaries, with 18 burglaries per 1,000 households. In London, the following districts are particularly prone to burglaries: Southwark: 14 burglaries per 1,000 households Barnet: 13 burglaries per 1,000 households Hackney: 13 burglaries per 1,000 households Haringey: 13 burglaries per 1,000 households Kensington and Chelsea: 13 burglaries per 1,000 households Have you insured your home? If you live in a high-risk burglary area or have valuable gifts at home, it’s worth checking if you can claim under your home contents insurance if you’re a victim of a burglary. Over 80% of home insurance policies automatically increase coverage during Christmas. Although they may not explicitly mention ‘Christmas coverage’ you might see terms like ‘seasonal increase’ or ‘holiday coverage’ in your policy, which applies to this period. Insurers often increase your coverage by a fixed amount (typically between £1,000 and £10,000) or by a certain percentage of your total insurance. For example, AXA Insurance automatically increases its clients’ home contents coverage by £7,500 during Christmas, covering the 30 days before and after Christmas. Other insurers may have shorter coverage periods, such as 14 days before and after Christmas. Tax considerations In the UK, the Insurance Premium Tax (IPT) is applied to most general insurance premiums, similar to VAT. The IPT has two rates: 12% for standard policies like home, car, or pet insurance, and 20% for policies covering travel or the sale of home appliances and cars. If your annual premium is £300, with a 12% IPT, you would pay £336. With a 20% rate, the cost would be £360. IPT applies to most insurance policies, but some, like life insurance or commercial aircraft insurance, are exempt. To lower your premiums, you can consider increasing your voluntary excess (but note that this will increase your costs if you need to make a claim), adding extra security measures to your property, and avoiding posting pictures of expensive gifts on social media, which could attract thieves. For individuals and businesses looking for UK taxation services, use our contact form  to get in touch for more information. Get in touch with us at info@tbgroupuk.com  or for a free one-to-one consultation.  This article is intended as general guidance only, and does not replace any legal or professional advice.  For enquiries, please contact  TBA Group  via  email  or  WhatsApp .

Many pensioners recently received the £10 Christmas bonus from the government. However, the distribution of this bonus hasn’t been met with joy, because in winter, people face another important expense—heating. Recently, the UK House of Commons voted to reject a proposal to prevent cuts to the winter heating subsidy, with a result of 348 votes against 228. This means that about 10 million pensioners in the UK will not receive heating subsidies this winter. The £10 Christmas bonus, in comparison, is virtually meaningless in the face of heating costs, and over a million elderly people will fall into poverty because they can’t afford to heat their homes. Why reduce the winter fuel subsidy? The reason is simple—it’s to fill the UK government’s budget deficit. How severe is the UK’s financial deficit? According to foreign media reports, UK prisons are overcrowded, but the government can’t even afford to build new ones. This shows just how bankrupt the UK government is. By July of this year, the UK government’s public debt had reached about £2.7 trillion, approximately 99.4% of the country’s GDP. This means the government needs to pay nearly £100 billion in interest each year, which is roughly 10% of government spending, just to cover the debt hole. Many local governments in the UK are in even worse financial shape. Since 2020, several cities in the UK, including Birmingham and Nottingham, have declared bankruptcy. With such dire finances, Labour’s Chancellor of the Exchequer, Rachel Reeves, has proposed a fiscal cut plan, which includes cutting £5.5 billion in spending this year and £8 billion next year. The £300 winter heating subsidy for the elderly is part of the £5.5 billion in cuts for this year. Are the Labour Party and the Conservative Party fighting again? In the vote against cutting the winter heating subsidy, the proposal was ultimately rejected with 348 votes against 228. However, in the UK House of Commons, the Labour Party holds 410 seats. Apart from one member who voted against the Labour government’s proposal, over 50 other members didn’t vote. This indicates that within the Labour Party, there is some disagreement over the policy to reduce heating subsidies. Conservative Party leader and former Prime Minister Rishi Sunak mocked, ‘They are shouting loudly now. But these arguments couldn’t even convince his own 50+ members, who suddenly found they had urgent matters elsewhere’. Starmer quickly fired back: ‘Before he complains about us cleaning up his mess, perhaps he should apologize for the £22 billion black hole. Mr. Sunak pretends everything is fine. This is the argument he made during the election, and it’s why he’s sitting there [in opposition] while we’re here [in government]’. This was a sharp exchange, essentially saying: Labour argues that they had to reduce subsidies to clean up the financial mess left by the Conservative Party, and since the Conservative policies were ineffective, it’s Labour who became the governing party. Therefore, the Conservative Party has no right to criticize the fiscal measures taken by Labour, as Labour sees the Conservatives as the root cause of the current problems. Many families will face a tough winter Winter in the UK can be quite cold! Reducing winter heating subsidies for pensioners means that many elderly people will have a particularly hard time this winter. Surveys show that 55% of retirees are considering reducing heating, and two-thirds say they will take additional energy-saving measures. In 2022, as the Russia-Ukraine conflict escalated, energy prices continued to rise. The UK government implemented a plan to cap energy price increases at 10% per year. In the winter of 2021, the maximum annual energy price for an average household was capped at £1,100, but this winter it will rise to £1,717. It is estimated that at least 27 million households in the UK will continue to see their energy bills rise. During the 2022 energy crisis, many places opened ‘heat banks’ in libraries, community centres, and other locations, where people without money to heat their homes could stay warm for free. It is expected that this year the number of ‘heat banks’ will increase, especially for elderly people who cannot afford heating costs. This makes people feel frustrated about the £10 Christmas bonus, as they might be too cold at home to enjoy Christmas. More importantly— The £10 Christmas bonus was introduced in 1972 by the Heath government during a period of high inflation, to help pensioners have a good Christmas. Half a century has passed, but the Christmas bonus has remained at £10. If adjusted for inflation, that £10 would be equivalent to £168 today! Many people have suggested that the Labour government should reassess the level of the Christmas bonus, as at today’s prices, £10 can barely buy two large hamburgers. Can this really help people enjoy Christmas? For individuals and businesses looking for UK taxation services, use our contact form  to get in touch for more information. Get in touch with us at info@tbgroupuk.com  or for a free one-to-one consultation.  This article is intended as general guidance only, and does not replace any legal or professional advice.  For enquiries, please contact  TBA Group  via  email  or  WhatsApp .