Many people in the UK have experience with side businesses or have seen others share their experiences. Besides e-commerce platforms, an increasing number of people have started small home kitchens to sell homemade food. From baking cakes to preparing marinated dishes, customers can place orders online directly with the seller, often without using a food delivery platform. For home chefs, this significantly reduces labour and venue costs while generating extra income. Some people work full-time as students or employees during the weekdays and use their free time on weekends to pursue their passion and earn additional income. But did you know? Selling homemade food in the UK is subject to regulatory oversight, just like opening a restaurant. You must obtain the necessary certifications, fulfil your tax obligations, and may even be eligible for tax relief. Selling homemade food in the UK What Preparations Are Required? Running a home kitchen business in the UK is not as simple as cooking a meal for yourself. You need to follow these steps to ensure legal and compliant operation: Register as Self-Employed A home kitchen business is considered a type of food enterprise. Whether you do it full-time or part-time, you must register as self-employed with HMRC within three months of starting your business. Once registered: You can decide your working hours and methods (e.g. taking orders and preparing food); You earn income from selling food rather than receiving a fixed salary; You are responsible for tax obligations and business risks (e.g., paying taxes regularly and complying with hygiene inspections). If your business turnover is small and limited to occasional sales, HMRC may still classify you as self-employed, requiring registration. Registration Process: Visit the HMRC website and create a Government Gateway account (if you don’t have one); Fill in the self-employment registration form (provide your name, address, date of birth, National Insurance number, business type, etc.); Submit your application and wait for HMRC to send you a Unique Taxpayer Reference (UTR) number (usually received within 10 days); Use your UTR number to register for Self Assessment and submit a Self Assessment Tax Return annually. Register Your Food Business Under UK law, you must register your food business with your local council at least 28 days before starting operations. Registration is free and does not require renewal. If you plan to operate in multiple locations, you must register with each local council. Do not register too early. If your food business is not yet ready for commercial activity, wait until it is about to start before registering at https://www.gov.uk/guidance/food-business-registration . Operating a food business without registration may result in fines, up to two years' imprisonment, or both. Apply for a Food Hygiene Rating The Food Standards Agency (FSA) assigns a food hygiene rating ranging from 0 to 5 after an inspection. This rating assesses food safety and hygiene conditions. Inspections typically occur a few weeks after you register your food business (often unannounced), and the results are published on the FSA website for customers to check. Inspections cover: Food storage, handling, cooking, and refrigeration; Kitchen cleanliness, equipment hygiene, ventilation, and drainage; Whether employees maintain good hygiene practices. Apply for Food Premises Approval Depending on your business nature, you may need to apply for specific licences. You must apply if: ✅You handle raw or cooked meat, seafood, dairy, or other animal-derived foods and supply them to other businesses (e.g., supermarkets, restaurants) ✅You produce food in bulk and supply it to multiple locations instead of selling directly to consumers. You do not need to apply if: ❌You only sell food locally (e.g., selling homemade food directly to consumers) ❌Your business is retail-based and supplies small quantities (e.g., small restaurants, home kitchens, takeaways) ❌You have already registered your food business and do not engage in large-scale food processing. Establish an HACCP Plan A Hazard Analysis and Critical Control Points (HACCP) plan is a food safety management system designed to identify, assess, and control potential hazards in the food production process to ensure food safety. For more details, visit https://www.gov.uk/food-safety-hazard-analysis Obtain a Food Hygiene Certificate Before starting a home kitchen business, you must hold at least a Level 2 Food Hygiene Certificate and complete an accredited Level 2 Food Hygiene course to ensure you understand food safety and hygiene standards. Requirements for Selling on Food Delivery Platforms If you plan to sell via food delivery platforms such as Uber Eats, Deliveroo, Just Eat, or Panda Delivery, you may need to apply for an A5 licence, which covers businesses offering hot food for takeaway. Additionally, consider purchasing Public Liability Insurance to protect your business against risks such as food poisoning claims from customers. Taxation and Tax Relief As a home chef, you must declare and pay taxes based on your income. Some tax reliefs may apply: Personal Allowance: As of the 2024/25 tax year, the standard personal allowance is £12,570, meaning individuals earning below this threshold do not pay income tax; Trading Allowance: Self-employed individuals can receive up to £1,000 in tax-free trading allowance. However, this does not apply if you jointly own or control a trading business with family members; Business Expenses Deduction: You can claim a portion of business expenses such as council tax, heating, lighting, phone, and broadband costs to offset tax liability. If you run your home kitchen from a property you own, you may need to pay business rates for the portion used for business. Additionally, when selling your home, you might be liable for Capital Gains Tax on the business-used portion. Some Advice from TB Accountants This guide provides detailed information on starting a home kitchen business as a self-employed individual. However, some people wonder whether registering a company for food sales would be more advantageous. We would advise that this depends on your business scale, total income level, and financial planning. Registering a company may be beneficial if: Your annual income exceeds £30,000, and corporation tax is lower than income tax; You want to separate personal and business assets to reduce personal liability; You aim to optimise taxes through dividend payments and legitimate business expense claims (e.g., kitchen rental, equipment, ingredients, insurance, marketing); You plan to expand your food business and establish partnerships with food suppliers and B2B customers. Starting a business is never easy, whether it's a primary or secondary job. The registration process, document preparation, tax filing, and compliance requirements can be overwhelming. Don’t worry – our professional team is here to support you. From self-employment registration and tax filing to company registration and financial planning, our experienced tax experts offer personalised services to help your business thrive. 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 .

Temu to stop selling goods from China directly to US customers As the U.S. cancels its de minimis exemption rule, tariffs and import taxes will be imposed on goods valued under $800.  In response, Chinese cross-border e-commerce platform Temu has announced it will stop directly selling China-imported goods to U.S. consumers through its platform. Sales in the U.S. will now be handled by local sellers, with orders fulfilled and shipped domestically within the United States. In a statement, Temu said it has been actively recruiting U.S. companies to join its platform. “Now, all sales within the U.S. are handled by local sellers, with orders fulfilled within the country, helping local businesses reach more customers and grow their operations.” What is the de minimis exemption rule? The de minimis exemption is a U.S. trade rule enacted by Congress in 1938, intended to avoid the administrative costs associated with collecting small amounts of import duties. When an individual package shipped from overseas to the U.S. is declared at a value of $800 or less, U.S. Customs allows it to enter duty- and tax-free, under this “small-value exemption.” The original goal of the policy was to simplify customs procedures, reduce the clearance cost of low-value goods, and facilitate personal online shopping or small-scale cross-border trade. But in recent years, large e-commerce platforms like Temu and Shein have used this rule to ship massive quantities of low-cost goods directly from China to U.S. consumers, bypassing tariffs and regulations. This has sparked discontent among the U.S. government and domestic businesses. Critics of the de minimis rule argue that it creates unfair competition, harms U.S. manufacturing, and increases the risk of illegal smuggling and counterfeit goods. As a result, former President Donald Trump, upon taking office, actively pushed to cancel the exemption, aiming to impose taxes even on low-value packages. Since returning to the White House in January this year, Trump has already imposed tariffs of up to 145% on Chinese imports. In April, he stated that if the new tariffs are combined with existing ones, the tax rate on some Chinese goods could reach 245%. How will tax rates change after the exemption is canceled? With the cancellation of the de minimis exemption, packages shipped from mainland China and Hong Kong to the U.S. — even those valued at $800 or less — will face a 120% tax rate or a fixed fee. The fee initially starts at $100 and is expected to rise to $200 by early June. E-commerce platforms Shein and Temu said in statements that “due to recent global trade rule and tariff changes,” their operating costs have increased, leading to price adjustments from April 25 and that they will announce further measures soon. According to the U.S. Customs and Border Protection (CBP), goods within the exemption scope account for over 90% of all goods entering the U.S. UK and EU considering review of small-package tariffs Meanwhile, the United Kingdom has announced it will review low-value imports entering the country. Currently, U.K. rules allow international retailers to ship packages valued under £135 without paying import taxes.Chancellor Rachel Reeves stated that these cheap goods are “undermining Britain’s high streets and U.K. retailers’ competitiveness.” The European Union has also proposed canceling the exemption for packages valued under €150 — meaning that U.K. and EU consumers may soon face higher prices as well. Read more... House prices fall in April as stamp duty changes kick in According to the latest data from Nationwide, since the stamp duty adjustment in April, UK house prices have fallen 0.6% month-on-month, and the annual growth rate of house prices has also slowed. However, home prices are still 3.4% higher compared to the same period last year, with the current average price at £270,752. Nationwide’s Chief Economist, Robert Gardner, stated that transaction volumes surged in March as buyers rushed to avoid higher stamp duty costs, and “the market may remain slightly subdued in the coming months.” However, with the possibility of further interest rate cuts, homebuying activity may rebound over the summer. Starting April 1, 2025, the stamp duty exemption threshold for ordinary residential transactions will be lowered, cutting the tax-free threshold for residential property purchases from £250,000 to £125,000, meaning more property transactions will be subject to taxation. In addition, the benefits for first-time buyers will also be adjusted: The tax-free threshold will drop from £425,000 to £300,000; The maximum property price eligible for the 5% stamp duty rate will decrease from £625,000 to £500,000; If the property price exceeds £500,000, buyers will no longer qualify for any first-time buyer benefits and will have to pay the standard stamp duty rates. The new policy means homebuyers will face higher tax burdens, particularly first-time buyers and those purchasing mid-priced homes. Ashley Webb, an economist at Capital Economics, noted that April’s house price drop was the largest monthly decline since August 2023. Lowering mortgage rates will help boost housing demand in the coming months and offset the spending squeeze caused by U.S. President Trump’s trade tariffs, which may lead to rising housing costs. The firm forecasts that UK house prices will rise 3.5% in 2025 and 4.5% in 2026. Read More... Milkshakes and lattes could be covered by sugar tax Under a new plan, the sugar tax currently applied to carbonated drinks could be extended to include prepackaged milkshakes and lattes. This means the UK may end its tax exemption for milk-based drinks, as well as non-dairy alternatives like oat or rice-based drinks, further expanding the scope of the sugar tax. The sugar tax (formally known as the Soft Drinks Industry Levy, SDIL) is a tax on prepackaged drinks (such as those sold in cans and cartons in supermarkets). It applies to manufacturers and was introduced by the Conservative government in April 2018 to help tackle obesity. Last week, the Treasury confirmed a proposal to lower the sugar content threshold from 5 grams per 100 millilitres to 4 grams before the tax applies. Government analysis estimates that about 203 types of prepackaged milk drinks (accounting for 93% of sales in that category) would be taxed unless they reduce their sugar content as proposed. Milk-based drinks were initially exempted due to concerns over calcium intake. However, it’s now reported that young people obtain only 3.5% of their total calcium intake from these drinks, suggesting that “their health benefits likely do not outweigh the harm from excessive sugar consumption.” According to statistics released in September 2024, the Soft Drinks Industry Levy has raised £1.9 billion since its launch in 2018, with HM Revenue & Customs (HMRC) collecting £338 million in revenue during the 2023–24 fiscal year. In recent years, opposition has come from the soft drinks industry, pubs, and off-licences, with some arguing the tax disproportionately impacts low-income households while doing little to combat obesity. The government consultation will run until July 21. Read More... 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 .

From 6 April, the UK entered a new tax year, and with it came a series of new regulations. Have you already noticed changes in your household bills or tax liabilities? For many business owners, the effects may become more apparent by the end of the month. Whether you're self-employed or run a limited company, the 2025/26 tax year brings several important changes—impacting Employer National Insurance Contributions (NICs), minimum wage rates, company size thresholds, and Capital Gains Tax (CGT), among others. If you're a business owner or have registered a UK limited company, the following policy updates are crucial to understand. If you’re an employee or about to enter the workforce, some of the benefits you may be entitled to are also changing. Employer National Insurance Contributions In the 2025/26 tax year, significant changes will directly impact employers—most notably regarding Class 1 Secondary NICs.  Effective from 06 April 2025: The employer rate for Class 1 Secondary NICs (on employees' wages) will rise from 13.8% to 15%. The NIC threshold will decrease from £9,100 to £5,000, meaning employers will pay NICs for more of their employees' earnings. NICs on employee expenses and benefits (Class 1A and Class 1B) will also increase from 13.8% to 15%. Despite the rise in tax burden, the government has introduced measures to support small and medium enterprises (SMEs): Employment Allowance will increase by 110%, from £5,000 to £10,500 per year. The £100,000 eligibility threshold for this allowance will be abolished, enabling more businesses to benefit.   NIC Lower Earnings & Small Profits Thresholds The Lower Earnings Limit (LEL) and Small Profits Threshold (SPT) are key in determining whether employees or self-employed individuals qualify for National Insurance records (e.g. to claim the State Pension). From 6 April 2025, the following changes will apply: LEL (employees): increases from £6,396 to £6,500 per year. SPT (self-employed): increases from £6,725 to £6,845 per year. Only individuals earning above these thresholds will be treated as having paid NICs, thus accumulating qualifying years for benefits like the State Pension. Note: Actual NIC payments are only required if annual earnings exceed the personal allowance of £12,570. Below this, voluntary contributions can be made. Minimum Wage Increases From 01 April 2025, the National Living Wage and National Minimum Wage will be updated as follows: 21 and over (National Living Wage): £12.21/hour Ages 18–20: £10.00/hour Ages 16–17: £7.55/hour Apprentices: £7.55/hour Accommodation Offset: £10.66/night   Statutory Employee Benefits Increase From 6 April 2025, statutory employee benefit payments will increase: Statutory Sick Pay (SSP): £118.75 per week Statutory pay for maternity, paternity, adoption, shared parental, and parental bereavement leave: £187.18 per week Maternity Allowance: £187.18 per week Also from this date, eligible employees will gain the ‘day one right’ to Statutory Neonatal Care Leave and Pay, if caring for a baby in neonatal intensive care. Pay is set at £187.18 per week.   Small Employers’ Relief Increase From 6 April 2025, the Small Employers’ Relief reimbursement rate will increase from 103% to 108.5%. This allows qualifying small businesses to: Reclaim 100% of statutory payments (maternity, paternity, adoption, parental bereavement, shared parental, neonatal), Plus an additional 8.5%, to help cover indirect costs of processing these payments. Larger employers may still reclaim 92% under existing rules. State Pension Annual Increase Under the Triple Lock Guarantee, pensions will rise by 4.1% in the 2025/26 tax year: New State Pension (for those reaching retirement age on/after April 2016): rises from £221.20 to £230.25/week, or about £470 annually. Basic State Pension (before April 2016): rises from £169.50 to £176.45/week, or about £361 annually. Company Size Classification Thresholds As part of the 2024 Companies (Accounts and Reports) Regulations, the UK will adjust turnover thresholds for company size classifications from 6 April 2025. The new thresholds affect: Micro-entities Small companies Medium-sized companies Large companies’ thresholds and employee headcount rules remain unchanged. The new limits, applicable to financial years starting on or after 6 April 2025, will allow more Limited Companies and LLPs to qualify as Micro or Small entities—benefiting from simplified financial reporting obligations. In addition, certain disclosure requirements in directors’ reports for medium and large companies will be removed to reduce administrative burdens.   Capital Gains Tax (CGT) Changes From 6 April 2025, the preferential CGT rate for: Business Asset Disposal Relief (BADR) and Investors’ Relief (formerly Entrepreneurs’ Relief) ...will increase from 10% to 14%. This applies to qualifying disposals made on or after this date, affecting business owners or investors planning to sell shares or assets. The CGT rate is scheduled to rise again in April 2026, from 14% to 18%, aligning it with the general lower CGT rate bracket and tightening tax treatment of asset disposals.   Retail, Hospitality & Leisure Business Rates Relief Extended The UK Government has extended the Retail, Hospitality and Leisure (RHL) business rates relief for another year. However, the relief will reduce from 75% to 40%, with a maximum cap of £110,000 per business. Additionally: Standard multiplier will increase from 54.6p to 55.5p Small business multiplier remains frozen at 49.9p   Furnished Holiday Lettings Tax Regime to Be Abolished From 6 April 2025, the Furnished Holiday Lettings (FHL) tax regime will be abolished. This means the current tax advantages and separate reporting requirements for FHL properties will end. Income and gains from such properties will now be taxed as part of the taxpayer’s UK or overseas property business under standard rules, as with unfurnished or non-FHL lets. HMRC Late Payment Interest Rate Increase According to the Autumn Budget 2024, from 06 April 2025, HMRC will increase the interest rate on late tax payments by 1.5 percentage points, setting it at Bank of England base rate + 4%. This change will significantly raise the cost of delayed payments. Taxpayers are strongly advised to meet filing and payment deadlines to avoid additional interest and penalties. If you need professional advice or want to understand how these changes affect your business or personal finances, contact TB Accountants for more 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 .

The Prime Minister proposes stricter immigration rules with English Tests and Delayed Settlement On Monday, May 12, UK Prime Minister Sir Keir Starmer announced a comprehensive overhaul of the country’s immigration system. In a newly released immigration white paper, the government detailed plans to tighten immigration rules and significantly reduce net migration to the UK. Under the new white paper, stricter controls will be implemented across all areas of the immigration system, including: Raising the skill requirement to degree level Increasing English language proficiency standards Extending the qualifying period for permanent settlement from 5 years to 10 years According to The Times, the new plan aims to establish “a controlled, highly selective, and fair system.” One major change includes raising the English language requirement for work visa applicants to the equivalent of A-Level (B2) proficiency. This level means being able to “express oneself fluently and spontaneously without much obvious searching for expressions,” and to “use the language flexibly and effectively.” Currently, only a GCSE-level proficiency is required. Additionally, the period required to apply for permanent residency on a work visa may be extended from 5 years to 10 years. However, this will depend on factors such as the applicant’s time spent outside the UK and the stability of their financial situation. UK media have also reported that visa applications from nationals deemed more likely to overstay or seek asylum in the UK may face additional restrictions. Work and study visas from countries such as Pakistan, Nigeria, and Sri Lanka are reportedly most likely to be affected. According to Home Office data, the UK received 108,138 asylum applications in 2024—marking the highest 12-month total since records began in 2001. Net migration for the same year was approximately 728,000. Prime Minister Starmer stated: “Some people think controlling immigration is about restricting a natural freedom, rather than a basic and reasonable responsibility of government to make choices in the interest of the national economy. For years, this attitude has clouded our judgment. Let me be clear: those days are over. We will build a system that is controlled, selective, and fair.” When asked whether this meant net migration numbers would fall, he responded that “net migration will fall significantly by the end of this Parliament,” though he did not provide a specific target. Read more... UK and US announce trade deal According to the latest data from Nationwide, since the stamp duty adjustment in April, UK house prices have fallen 0.6% month-on-month, and the annual growth rate of house prices has also slowed. However, home prices are still 3.4% higher compared to the same period last year, with the current average price at £270,752. Nationwide’s Chief Economist, Robert Gardner, stated that transaction volumes surged in March as buyers rushed to avoid higher stamp duty costs, and “the market may remain slightly subdued in the coming months.” However, with the possibility of further interest rate cuts, homebuying activity may rebound over the summer. Starting April 1, 2025, the stamp duty exemption threshold for ordinary residential transactions will be lowered, cutting the tax-free threshold for residential property purchases from £250,000 to £125,000, meaning more property transactions will be subject to taxation. In addition, the benefits for first-time buyers will also be adjusted: The tax-free threshold will drop from £425,000 to £300,000; The maximum property price eligible for the 5% stamp duty rate will decrease from £625,000 to £500,000; If the property price exceeds £500,000, buyers will no longer qualify for any first-time buyer benefits and will have to pay the standard stamp duty rates. The new policy means homebuyers will face higher tax burdens, particularly first-time buyers and those purchasing mid-priced homes. Ashley Webb, an economist at Capital Economics, noted that April’s house price drop was the largest monthly decline since August 2023. Lowering mortgage rates will help boost housing demand in the coming months and offset the spending squeeze caused by U.S. President Trump’s trade tariffs, which may lead to rising housing costs. The firm forecasts that UK house prices will rise 3.5% in 2025 and 4.5% in 2026. Read More... Interest rate cut to 4.25% by Bank of England As the UK and US reached a trade agreement, the Bank of England’s Monetary Policy Committee (MPC) voted to lower the benchmark interest rate from 4.5% to 4.25%. The vote revealed a three-way split among the nine members: five supported the cut to 4.25%, two voted for a deeper cut to 4%, and the remaining two opposed any cut, favoring keeping the rate at 4.5%. Announcing the rate cut, Bank of England Governor Andrew Bailey stated, “The past few weeks have shown just how unpredictable the global economy can be. Our top priority is to reduce inflation gradually and steadily.” Analysts note that while higher tariffs may dampen global and UK economic growth and contribute modestly to lowering inflation, the effects are expected to be limited. Growth is projected to decline by just 0.3%, and inflation by 0.2%. The Bank of England has not forecast a recession as a result of ongoing trade tensions. The central bank raised its 2025 UK economic growth forecast from 0.75% to 1%, attributing the revision mainly to stronger-than-expected growth in the first quarter. However, it noted that underlying growth remains weak, with the economy expanding by just 0.1% per quarter. Meanwhile, UK house prices rose in April for the first time this year, supported by easing mortgage costs and steady demand. According to data from lender Halifax, house prices increased by 0.3% last month, reversing a 0.5% drop in March. It marked the first monthly increase since January. The average UK property value now stands at £297,781, up from £296,899 the previous month. Read More... 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 .

Since the Labour Party took office, its fiscal policy has been full throttle: sweeping tax hikes, cuts to benefits, public sector job losses, and spending reductions — all to fill what is claimed to be a £22 billion deficit left by the former Conservative government and to free up funds for strategic priorities such as education, clean energy, and healthcare. In her March Spring Budget, Chancellor Rachel Reeves made it clear that the government would focus on cracking down on tax evasion and avoidance, projecting £7.5 billion in additional revenue. This crackdown has now extended to company registration across the UK. Over 100 Companies Fined — Penalties in the Tens of Thousands The government has taken swift enforcement action. After granting new enforcement powers to Companies House, the government agency overseeing company registration, a total of 234 fines have been issued to companies found submitting false information — with total penalties reaching £58,500. Offences include submitting false director details, faking persons of significant control, and using bogus addresses. There have even been cases of companies registered under names like ‘Darth Vader’ and ‘Santa Claus’. Companies House Steps Up Enforcement — Full Recovery Efforts in 2025 All companies operating in the UK must be registered with Companies House. Once registered, they are required to submit an annual Confirmation Statement and Annual Accounts, which help the public, investors, and government assess a company’s financial health and operations. Failure to file these documents on time can result in penalties, including fines and compulsory company dissolution. With its expanded powers, Companies House is now authorised to issue fines for submitting false information or abusing the registration system. Despite having issued 234 fines, enforcement has so far recovered only £1,250, around 2% of the total. The government also plans to introduce more frequent spot checks, increasing the likelihood of non-compliant companies being investigated.   Whistleblower Reward Scheme to launch Alongside the crackdown by Companies House, HMRC will introduce a new Whistleblower Reward Scheme later this year. This aims to tackle serious tax evasion and avoidance involving large companies, individuals, and offshore entities — effectively plugging gaps in the regulatory net. The government says the scheme will be modelled on successful programmes in the US and Canada, offering rewards linked to the amount of tax recovered through whistleblower reports. The number of reports is expected to rise from 500 to 600 per year. Some advice from TB Accountants - about company registration As the UK intensifies efforts to combat shell companies, fraud, and tax evasion, businesses must take proactive steps to ensure compliance and avoid penalties. Here are some practical tips:   1. Submit Accurate Company Information Avoid using generic templates or random names for directors. Your registered address must be valid and in use, or you should engage a licensed UK registered office service.   2. Ensure Director and PSC Information Is Genuine Complete identity verification before company formation. Keep information on directors and persons of significant control up to date to avoid penalties for outdated records.   3. File Confirmation Statements and Accounts on Time Incorporate filing deadlines into your compliance processes. Consider appointing a professional accountant or company formation agent to handle submissions.   4. Establish Internal Compliance Systems Especially important for medium and large companies: designate staff responsible for company filings and compliance. Conduct regular compliance audits to manage risk.   5. Stay in Touch with Professionals Regularly consult with accountants and legal advisors, especially regarding shareholder structures and director changes. For complex international structures, seek advice from tax consultants to determine whether specific compliance obligations are triggered. Registration is not just a formality — compliance is your company’s safeguard. If you have questions about confirmation statements, annual accounts, corporation tax, VAT filings, or any other UK company or personal tax matters — or if you require a help with a compliance check or audit, contact our team. 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 .

As we move further into the digital age, many industries are gradually abandoning paper-heavy administrative processes in favour of streamlined, digital solutions. HMRC first introduced the concept of Making Tax Digital (MTD) in 2015, with the aim of phasing out paper-based tax returns and shifting to digital submissions via approved software — ushering in a system of real-time tax.   What Is Making Tax Digital (MTD)? Making Tax Digital (MTD) is a major tax modernisation initiative by the UK government, designed to: Digitise and automate the tax filing process; Minimise human error in tax reporting; Improve overall system efficiency; Encourage small businesses and the self-employed to embrace digital solutions. The MTD rules apply to sole traders, landlords, companies, and businesses registered for VAT. The registration threshold is based on gross income or turnover, not net profit. MTD to be made mandatory for millions In her Spring Budget, Chancellor Rachel Reeves announced key adjustments to the MTD rollout. HMRC has since confirmed three major tax regulation changes that will impact millions of UK taxpayers — the first of which takes effect in April next year: From 6 April 2026: Businesses, landlords and self-employed individuals with income over £50,000 must register for MTD. From 6 April 2027: Landlords and self-employed individuals with income over £30,000 must register. From 6 April 2028: Landlords and self-employed individuals with income over £20,000 must register. Those who meet the criteria must: Keep digital records; Submit quarterly updates; Use MTD-compatible software to send Income Tax Self Assessment (ITSA) data to HMRC.   Will you need to use digital ITSA submissions? From 6 April 2026, digital income tax filing will be rolled out in phases. You can choose to register voluntarily now to prepare ahead of time. For the 2025/26 tax year, you should consider: Whether you need to file a Self Assessment return; Which income sources you’ll need to declare; How much you expect to earn from self-employment or rental income. Currently, MTD only applies to income for the 2024/25 and 2025/26 tax years and does not include foreign income. If you earn money overseas, you should consult a tax advisor regarding digital filing requirements. How to register for MTD — and what you’ll need Before registering, make sure you have: A Government Gateway ID (you can create one during the registration process); Your National Insurance number; Business details (e.g. name, start date) or, for landlords, rental income documentation (e.g. rent statements); The name of your MTD-compatible software (e.g. QuickBooks, Xero, FreeAgent). Taxpayers must use HMRC-approved software to: Automatically record transactions; Categorise income and expenses; Submit quarterly reports and final declarations; Provide tax forecasts and reminders. Popular software options include Xero, QuickBooks, FreeAgent, Sage, and 123 Sheets. Once your information is submitted, HMRC will confirm registration success by email or SMS within 5–7 working days. If you're not confident using digital systems or have multiple income streams, you can also ask an accountant or tax adviser to register on your behalf.   Once registered, you must: Sign up for MTD for ITSA; Use approved software to record and submit income/expenses; Submit quarterly updates (instead of annually); File a Final Declaration at the end of the tax year to confirm all income and reliefs; No longer use traditional paper or Gov.uk SA tax return forms. Do businesses need to register for MTD? In addition to the upcoming MTD for Income Tax rollout (for landlords and self-employed earning over £30,000 from 2026), all VAT-registered businesses in the UK have been required to use Making Tax Digital for VAT since April 2022. HMRC automatically registers all new VAT-registered businesses for MTD for VAT unless they are exempt or have applied for an exemption. Therefore, if you're newly VAT-registered, there's no need to register separately — just use compatible software to maintain digital records and file your VAT returns.   Some advice from TB Accountants Businesses registered for MTD for VAT must keep digital accounting records and use compatible software to submit VAT returns. If you’re unsure about any aspect of digital filing, or if you’d like assistance registering through an accountant or tax agent, contact our team for professional support. 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 .

UK rich list has recorded the biggest drop in 37 years According to the Sunday Times Rich List, the number of billionaires in the UK has seen the largest drop on record since the abolition of the non-domiciled (non-dom) tax status and the introduction of global taxation under Chancellor Rachel Reeves. In this annual wealth ranking, the Hinduja family once again topped the list with assets exceeding £3.5 billion. Well-known figures including Elton John, Andrew Lloyd Webber, Lewis Hamilton, David and Victoria Beckham, and even King Charles III were all featured among the 350 wealthiest individuals and families in the UK. However, the list also revealed that the number of UK billionaires has declined for the third consecutive year. The count dropped from 165 in 2024 to 156 in 2025 — the steepest annual decrease in the 37-year history of the list. Robert Watts, compiler of the Rich List, noted: "We're seeing fewer billionaires, their combined wealth is also declining, and there are fewer global super-rich choosing to settle in the UK." He added, "While interviewing wealthy individuals for the list, criticism of the UK Treasury was especially strong. We initially thought scrapping the non-dom status would mainly upset wealthy foreigners, but actually, young homegrown tech entrepreneurs and heads of centuries-old family businesses also warned that several tax reforms announced in last autumn’s budget could have serious consequences." Notably, Akshata Murty, wife of former Prime Minister Rishi Sunak, was once a high-profile non-dom. The couple reappeared on the 2025 Rich List, but their wealth dropped from £65.1 million to £64 million due to falling Infosys shares amid tariff concerns — putting them on par with King Charles III, who also holds personal assets of £64 million. Jim Ratcliffe, founder of chemicals giant Ineos and part-owner of Manchester United, saw his wealth shrink for the second year in a row, down by approximately £6 billion in 2025 to £17 billion, placing him seventh on the list. Meanwhile, Russian-born brothers Igor and Dmitry Bukhman, developers of mobile games like Gardenscapes and Fishdom, nearly doubled their wealth to £12.5 billion. The list highlights that technology and real estate remain key engines of wealth, while macroeconomic uncertainty and geopolitical tensions are reshaping the UK's financial landscape. Read more... One in 10 people in Britain have zero savings Data released last week by the UK's Financial Conduct Authority (FCA) shows that one in ten Britons has no cash savings at all for emergencies, and a further 21% have savings of less than £1,000, highlighting the financial vulnerability faced by millions. In addition, nearly half of all adults have unsecured debt, with a median amount of £2,500. Among adults with defined contribution pensions, one-third have savings of less than £10,000, and 12% don’t even know how much is in their pension accounts. Over the past two years, 1.6 million homeowners (around 3%) have received support from mortgage lenders or credit institutions to cope with repayment pressures. These figures are significant reference points for the Bank of England and policymakers guiding the UK economy, indicating that the country is being hit by inflation, a cooling job market, and the threat of a global trade war triggered by U.S. President Trump’s new tariffs. Sarah Pritchard, Executive Director of Consumers and Competition at the FCA, said: "The data shows many people are under serious financial strain, with some unable to save for a rainy day. We also found a lack of confidence in investing among the public." In the past 12 months, only 8.6% of people have received financial advice on investments, pensions, or retirement planning. As of 2024, around 900,000 adults remain "unbanked" (without a bank account), although this is down from 1.1 million in 2022. Rachael Griffin, tax and financial planning expert at investment firm Quilter, also noted: "This reflects a broader cultural trend — a general lack of confidence in investing, and a sense of confusion and lack of understanding when it comes to navigating financial markets." The FCA stated that it is working to improve public access to financial services, guidance, and advice, aiming to help those under debt stress build a more resilient financial future. Read More... Work permit applicants after 2020 may be affected by the new 10-year permanent residency rules According to the immigration white paper released last week by UK Prime Minister Keir Starmer, new rules will extend the waiting period for work visa holders to obtain permanent residency, and these changes will apply to individuals already holding visas in the UK. The white paper states that under the new policy, immigrants will typically need 10 years before they can apply for Indefinite Leave to Remain (ILR) — double the current five-year requirement. Previously, it was unclear whether this change would affect the approximately 1.5 million foreign workers who have moved to the UK since 2020. However, according to British media, a document to be released in the coming weeks will clarify that the government intends to apply the 10-year threshold to existing visa holders, not just new applicants. That said, the policy document released last week notes that non-British family members of British citizens will still be eligible to apply for settlement under the current five-year rule. Additionally, individuals who can demonstrate significant contributions to the UK’s economy and society will continue to be eligible for faster settlement pathways. Net migration to the UK (the difference between those entering and leaving the country) reached a record 906,000 in the 12 months to June 2023, with the total for the year at 728,000. Prime Minister Keir Starmer stated that the new measures mean: “Settlement will be a privilege to be earned, not an automatic right. If you contribute to the UK, work, pay taxes, and help rebuild the country, you’ll find it easier to qualify for settlement.” However, some Labour MPs have expressed concern over the possible retroactive application of the extended residency requirement to current residents — warning it could face legal challenges. Florence Eshalomi, Chair of the Housing, Communities and Local Government Committee, noted in Parliament that the policy lacks clarity and that constituents have already voiced serious concerns. She mentioned that some individuals have even said they are considering leaving the UK, fearing their settlement status is now at risk. In response, Home Secretary Yvette Cooper stated that the government will launch a public consultation and release more details later this year. Read More... 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 .

The US administration recently announced a plan targeting more than 20 economies with the largest trade deficits with the US, claiming unfair trade practices are harming American interests. In addition, the US plans to impose a 10% baseline tariff on nearly all imports from around 180 countries and regions — including the UK. What’s really going on, and more importantly, how will it impact everyday life in the UK?   US Tariffs may cut UK economic growth by 2% Although the US has only imposed the lowest 10% tariff on UK exports, this trade barrier is still expected to significantly impact the British economy. Several leading think tanks estimate that this policy could shave up to 2 percentage points off the UK's annual GDP growth. UK Prime Minister Keir Starmer stated that the government is actively exploring countermeasures, prioritising an accelerated UK-US trade agreement negotiation to offset the economic hit. Interestingly, on April 3, the UK’s Department for Business and Trade released a 417-page document listing over 11,000 US products — many of which may become targets for retaliatory tariffs. This move was widely seen as a strong signal to Washington. Insiders revealed that officials at 10 Downing Street were somewhat relieved that the UK only received the minimum 10% tariff — especially when compared to the 20% punitive tariffs slapped on EU countries. This differential treatment is seen as a relative advantage for Britain. GBP surge shocks international students Markets reacted fast — within 24 hours, the British Pound surged. International students in the UK definitely felt this during tuition payments — GBP to CNY jumped to 9.41, a post-Brexit high. The pound’s exchange rate against both CNY and USD hit multi-year highs, while UK 30-year government bond yields spiked to 5.19%, the highest since the 1998 Asian Financial Crisis — raising alarm bells in fiscal circles. Government debt burden set to grow Each 1% rise in bond yields adds roughly £18 billion in annual debt interest. Chancellor Rachel Reeves now faces a fiscal double whammy: shrinking tax revenues from a slowing economy and rising borrowing costs. Budget revisions in the autumn may become inevitable. How is the government responding? 1. Diplomatic policy The UK has launched a multi-pronged response. PM Starmer is reportedly opening hotline talks with global allies such as Australia's PM Anthony Albanese and Italy’s PM Giorgia Meloni. Goals of this diplomatic blitz include: Establishing a real-time economic intelligence network Building a joint protective buffer to reduce the global economic fallout of US tariffs 2. Economic policy A recent Deutsche Bank report warned that Trump’s tariff move could cost 50,000 to   100,000 UK jobs, shrinking GDP by 0.3% to 0.6% — or up to 6 per 1,000 of total output. To fight back, the UK government is planning a three-pronged strategy: Launch an economic reform plan to restructure industries and streamline investments Eliminate invisible roadblocks like red tape and monopolies that hinder business growth Accelerate infrastructure rollout, especially for high-speed rail and green energy projects The aim? Push for a ‘speed-up’ amidst a turbulent global economy.   3. How will the tariffs impact everyday Brits? US tariffs are already rippling through UK households, affecting everything from supermarket prices to interest rates. Here are 5 key areas where you'll likely feel the changes: Higher Living Costs Products imported from the US such as steak, cherries, and other foods — may get pricier. If the UK retaliates with tariffs, these items will take the first hit. On the flip side, supermarkets may boost promotions for French cheese and Spanish ham as alternatives. Investment Market Volatility Many Brits noticed their retirement funds and investment portfolios took a hit due to drops in US stocks. Experts urge calm — don’t panic sell. Think of long-term investing like slow-cooking a stew — patience is key. Job Market Turbulence Industries that heavily export to the US, like car manufacturing, may face setbacks. US consumers might shift to domestic products, forcing UK exporters to cut costs — possibly jobs. Still, there’s a silver lining: innovation pressure could spur new tech and green job creation. Energy Price Spikes Natural gas for cooking or petrol for cars may soon feel more expensive. One-third of the UK’s LNG comes from the US If exports fall due to domestic US demand, UK households could face rising energy bills. Time to check your home insulation! Interest Rate Uncertainty The Bank of England may pause planned rate cuts. Base interest rates (currently 4.5%) could remain high — bad news for first-time homebuyers, as monthly repayments could jump. On the bright side? Savings accounts are paying more now. Final Thoughts Yes, economic changes are happening fast — but there’s no need to panic. Keep up with the news, plan your finances wisely, and if needed, consult a tax advisor to help with your financial planning. Remember – economic uncertainty is like British weather — unpredictable, but if you stay prepared, the sun always returns. 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 .

From April onwards, various UK tax changes, along with rising household bills, have created new challenges and opportunities in personal and business financial planning. Of particular concern for foreign nationals residing in the UK is the new policy which took effect on 6 April – the Foreign Income and Gains (FIG) regime. This policy marks a fundamental shift in how non-domiciled individuals are taxed, including the abolition of the remittance basis and the introduction of worldwide taxation on any income or gains earned outside the UK.   So, how will the abolition of the ‘non-dom’ tax regime affect individuals? How the Non-Domicile Tax Regime is Changing Before 6 April 2025 For migrants who have lived in the UK for at least 183 days in a tax year and are considered UK tax residents, but whose permanent home (or ‘domicile’) remains abroad, they are classed as Non-Domiciled (‘non-dom’). Under these current rules, they can enjoy tax exemptions on foreign income and gains for up to 15 years. They could also choose between: Arising basis: Pay UK tax on worldwide income and capital gains Remittance basis: Only pay UK tax on foreign income and gains brought into the UK, with untaxed amounts remaining offshore After 6 April 2025 The non-dom regime was abolished in favour of a residence-based system for Foreign Income and Gains (FIG). Under the new FIG regime, those who: Become UK tax residents on or after 6 April 2025, and Have been non-UK tax residents for the previous 10 consecutive tax years can benefit from a 4-year tax exemption on their foreign income and gains. During this 4-year period: Foreign income and gains are 100% exempt from UK tax, regardless of whether the funds are brought into the UK This also includes distributions from non-resident trusts UK-source income and gains remain taxable After the 4-year window, all global income and gains will be subject to UK taxation, including any remitted amounts. If a person temporarily leaves the UK during this time, they may still apply FIG for any remaining eligible tax years upon their return. Note: Time spent as a UK resident before 6 April 2025 also counts towards the 4-year limit. So, individuals who moved to the UK before the 2021/22 tax year may not qualify for FIG. Other Key Tax Changes for Non-Doms Inheritance Tax (IHT) Based on Residency A new residency-based IHT regime will be introduced from 6 April 2025. Trust Asset Taxation Trusts will be assessed for IHT based on the long-term residency of the settlor at the time of the taxable event – not just the date of trust creation. Transitional Provisions For current non-doms or individuals using the remittance basis: 1. Temporary Repatriation Facility Foreign income/gains earned before 6 April 2025 can be brought into the UK at a reduced tax rate of 12% during 2025/26 and 2026/27.From 2027/28 onwards, normal tax rates will apply. 2. Capital Gains Base Revaluation Assets held on 5 April 2017 may use that date's value as the cost basis for calculating capital gains if disposed of after 6 April 2025. 3. Long-Term Residency and IHT Anyone who has been UK resident for at least 10 out of the past 20 tax years will be considered deemed domiciled and subject to IHT on worldwide assets, even for 3–10 years after leaving the UK. Trust transfers made during deemed domicile status may also be liable for IHT.   Determining Your Domicile Status Under UK tax law, your domicile status (not just tax residency) determines your eligibility for special rules. What is Domicile? Domicile refers to the place where a person has their permanent home or intends to reside indefinitely. There are three types: Domicile of Origin – Usually based on the father’s domicile at birth Domicile of Dependency – Applies during legal dependency on parents Domicile of Choice – Acquired by moving permanently to a new country Self-Assessment: Are You a Non-Dom? Was your domicile of origin in the UK? Yes → You are likely UK domiciled No → You may be a non-dom Have you acquired a domicile of choice in the UK? E.g. long-term UK residency, British citizenship, owning UK property, and intention to remain Do you meet the 15-Year Rule? If you’ve been a UK resident for 15 of the past 20 tax years, you’re automatically deemed domiciled → All worldwide income/assets are taxable in the UK   Overseas Workday Relief (OWR) For individuals who: Are non-domiciled, and Have not been UK tax residents in the previous 3 years They may be eligible for Overseas Workday Relief (OWR). Under the FIG Regime: OWR will also apply for 4 years, aligning with the FIG rules. Foreign employment income not brought into the UK during this time is not taxable, and any withheld taxes abroad can potentially be reclaimed. Some Advice from TB Accountants If you become globally taxable from 6 April, it's crucial to review your investment strategy and financial planning. You may wish to: Shift towards assets with more favourable tax treatment (e.g. CGT over income tax) Evaluate compliance obligations, especially for FIG-eligible individuals who must declare tax-relieved amounts in their returns Ensure correct completion of tax returns to maximise allowances and avoid errors If you’re unsure whether these new tax rules apply to you, or if you're a UK resident or business seeking professional guidance, get in touch with our team for a free one-to-one consultation. 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 .