Against the backdrop of high taxes and rising living costs in the UK, many people choose to build up their wealth through savings interest or investment products. What some may not realise, however, is that while savings capital itself is not taxed, the interest earned on savings is subject to taxation – this is known as the tax on savings interest. In recent years, the tax burden on British savers has grown heavier. According to the latest data, around 300,000 savers will pay tax on their savings for the first time. The main reason behind this surge is the effect of ‘fiscal drag’. Sharp increase in taxpayers among savers The Nottingham Building Society, using data obtained under the Freedom of Information Act, revealed that in the 2025/26 tax year the number of savers paying tax has risen from 3.06 million in 2020/21 to 3.35 million. This means an additional 300,000 savers will for the first time be liable to pay tax on their savings interest. The key driver of this change is ‘fiscal drag’. Since the government has frozen income tax thresholds, even modest increases in nominal income caused by inflation can push savers into higher tax brackets, requiring them to pay tax on their savings interest. For example, in the 2025/26 tax year: The basic rate threshold is £12,570 The higher rate threshold is £50,270 The additional rate threshold is £125,140 As wages rise, many savers’ nominal incomes now exceed these frozen thresholds, which in turn triggers a liability to tax on their savings interest. How savings interest is taxed Your liability for tax on savings interest depends on your total income in a given tax year (6 April to 5 April the following year) and the allowances you are entitled to. These include: Personal Allowance Starting rate for savings Personal Savings Allowance Personal Allowance In 2024/25 the standard Personal Allowance is £12,570. If your total income (including wages, pensions and savings interest) does not exceed this amount, you will not have to pay tax. However, if your income exceeds £100,000, the allowance is reduced. Your Personal Allowance goes down by £1 for every £2 that your adjusted net income is above £100,000, and is withdrawn completely once it reaches £125,140. Starting rate for savings For savers with annual incomes between £17,570 and £50,270, up to £5,000 of savings interest can be tax-free each year. This allowance is calculated after the Personal Allowance (£12,570). The higher your non-savings income, the less of this starting rate you can claim. For every £1 your non-savings income exceeds the Personal Allowance, your £5,000 starting rate is reduced by £1. Example 1 – full benefit of £5,000 allowance: Salary: £12,000 Savings interest: £4,000 Since the salary is below £12,570, it is fully covered by the Personal Allowance. Non-savings income is under £17,570, so the full £5,000 starting rate applies. The £4,000 interest is fully tax-free. Example 2 – partial or no allowance: Salary: £22,000 Savings interest: £4,000 Here, non-savings income exceeds £17,570 by £4,430. The £5,000 starting rate is reduced by £4,430, leaving only £570 tax-free. Therefore, £3,430 of savings interest is taxable. Personal Savings Allowance On top of the starting rate, you may also qualify for a Personal Savings Allowance depending on your tax band: Basic rate taxpayers: £1,000 Higher rate taxpayers: £500 Additional rate taxpayers: £0 This means anyone earning over £125,140 will pay tax on all savings interest. Finally, if your income from savings and investments exceeds £10,000, you must register for Self Assessment and declare it to HMRC. How to reclaim overpaid tax on savings interest If you discover you have overpaid tax on savings interest, you can reclaim it – but you must apply within four years of the end of the relevant tax year. If you complete a Self-Assessment Tax Return, you can claim through the return itself. Otherwise, you need to complete form R40 and submit it to HMRC. Repayments usually take around six weeks. How to reduce tax on savings To enjoy more tax benefits on savings, consider diversifying your investments. For example, transferring some savings into an Individual Savings Account (ISA). The annual ISA allowance for 2025/26 is £20,000. If you are married and your spouse has a lower income, you might also consider holding savings in their name to take advantage of their Personal Allowance and Personal Savings Allowance. Some advice from TB Accountants It is important to remember that the way tax-free allowances apply to savings interest can vary depending on your individual circumstances. If you have no employment income and no pension income: Banks or building societies will report your interest to HMRC, who will then inform you if you need to pay tax. If you are employed or receive a pension: HMRC may adjust your tax code so that the correct tax is collected automatically. They do this by estimating the amount of interest you are likely to receive, based on the previous year, and then issuing a tax calculation notice to confirm whether you have underpaid or overpaid. With 16 years of experience in UK personal and corporate taxation, we can provide bespoke tax solutions for your needs. Why TB Accountants? Professional Assurance: Our team includes ACA members and ACCA-certified professionals, delivering services to the highest industry standards. Responsive Service: We respond to your inquiries within 24 hours, ensuring efficient communication across time zones. Multilingual Support: Services available in English, Mandarin, Cantonese, Japanese, French, German, Spanish, Italian, Turkish, and more. Trusted by Clients Worldwide: Consistently praised by global clients for proactive, professional, and reliable accounting and tax 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@tbagroup.uk 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.

This month, the Bank of England has lowered the base rate from 4.75% to 4.5%, marking the third interest rate cut since August 2024 and reaching its lowest level in 18 months. Changes in interest rates also impact millions of people’s mortgages, credit cards, and savings rates. For savers, a rate cut may mean banks will reduce the Annual Percentage Yield (APY) on savings accounts, resulting in lower interest earnings. If the Bank of England continues to cut rates, banks may further decrease fixed-term deposit rates (such as one-year or five-year savings products), affecting long-term savings returns. Aside from interest rate changes, savers are also concerned about the following questions: Do savings interest earnings need to be taxed? Will there be an investigation if they are not declared? Today, we’ll provide detailed information on taxation of bank interest earnings. Do Savings Interest Earnings Need to Be Taxed? In the UK, the principal amount of savings is not subject to tax, but any interest earned on savings is taxable. This is known as tax on savings interest, and the specific tax obligations depend on your total income within a tax year (from 6 April to 5 April of the following year) and the applicable tax-free allowances. These include: Personal Allowance Starting Rate for Savings Personal Savings Allowancees the proportion of their income (4.8%) to Council tax compared to the wealthiest fifth (1.5%). Personal Allowance Most individuals can earn a certain amount tax-free before paying income tax, known as the Personal Allowance. The standard Personal Allowance for the 2024-25 tax year is £12,570. If your total income (including wages, pensions, and savings interest) does not exceed this amount, you do not need to pay tax. However, if your income exceeds £100,000, the Personal Allowance is reduced. Your Personal Allowance goes down by £1 for every £2 that your adjusted net income is above £100,000, which means it is withdrawn completely once your adjusted net income reaches £125,140. Starting Rate for Savings If your non-savings income (such as wages or pensions) does not exceed £17,570, you can benefit from up to £5,000 in the Starting Rate for Savings. This means that qualifying savings interest earnings within this threshold are taxed at 0%. It is important to note that as non-savings income increases, the applicable threshold for the Starting Rate for Savings is reduced. For every £1 of other income above the Personal Allowance, the starting rate allowance is reduced by £1. For example: If Alex earns a salary of £16,000 and receives £200 in savings interest, their salary, after deducting the Personal Allowance of £12,570, is £3,430. This means the remaining Starting Rate for Savings is £1,570 (£5,000 - £3,430 = £1,570). Since this is higher than the £200 interest earned, Alex does not need to pay tax on their savings interest. Personal Savings Allowance In addition to the above, you may be eligible for a Personal Savings Allowance of up to £1,000, depending on your income tax band. These tax-free allowances apply to savings interest earnings. Any interest exceeding the allowance is taxed at the applicable rate. Additional rate taxpayers (considered high-income earners) are not eligible for the Personal Savings Allowance. Therefore, if your annual income exceeds £125,140, you will need to pay tax on all savings interest. The allowances mentioned generally apply to interest earned from the following accounts: Bank and building society accounts Savings and credit union accounts Unit trusts, investment trusts, and open-ended investment companies Peer-to-peer lending Trust funds Payment Protection Insurance (PPI) compensation Government or corporate bonds Life annuity payments Certain life insurance policies Savings within tax-free accounts such as Individual Savings Accounts (ISAs) and some National Savings and Investments (NS&I) accounts are not included in these allowances. Different tax rules also apply to foreign savings and children's accounts. Tax Planning Strategies You can optimise your tax strategy by making use of tax-free savings tools and maximising available allowances. Here are some recommendations: Individual Savings Accounts (ISAs): Interest earned within an ISA is completely tax-free. For the 2024/25 tax year, you can deposit up to £20,000 into an ISA. Tax-free investment products: Such as Premium Bonds, issued by NS&I. While they do not pay interest, they offer monthly prize draws with tax-free winnings. Individuals can hold up to £50,000 in Premium Bonds. Although returns are uncertain, winnings are tax-free. Spousal asset allocation: If you are married and your spouse has a lower income, consider holding savings accounts in their name to maximise their Personal Allowance and Personal Savings Allowance. Declaration Requirements and Consequences of Non-Disclosure If your interest earnings exceed the tax-free allowances, you must pay tax on the excess amount according to the usual income tax rates. Additionally, if your income from savings and investments exceeds £10,000, you must register for Self Assessment with HM Revenue & Customs (HMRC) and file a tax return. Failure to declare taxable savings interest may result in: A tax investigation: HMRC may review your tax affairs. Penalties and interest: Late tax declarations and payments may incur penalties and interest charges on overdue tax. To avoid potential legal and financial consequences, ensure you accurately report all taxable income, including savings interest. Tax Treatment Based on Employment Status If you have no employment income and do not receive a pension: Your bank or building society will report your interest earnings to HMRC at the end of the year. HMRC will then inform you whether you owe tax and how to pay it. If you are employed or receive a pension: HMRC will adjust your tax code so that tax is deducted automatically. HMRC estimates your interest earnings based on the previous year’s figures and will notify you of any overpayment or underpayment of tax. If you have not received a tax calculation letter by 31 March 2025, you must contact HMRC as soon as possible to avoid penalties. Can You Claim a Refund If You Have Overpaid Savings Interest Tax? If you have overpaid tax on your savings interest, you can claim a refund within four years of the relevant tax year’s end. If you complete a Self Assessment tax return, you can claim your refund through your tax return. If not, you must complete an R40 form and send it to HMRC. Refunds typically take up to six weeks to process. If you have further questions regarding taxation of bank savings interest, or if you are unsure whether you need to pay tax and how much, or if you would like to explore financial and tax planning strategies to reduce tax liability, feel free to contact us. 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.

Most letters from HM Revenue & Customs (HMRC) are routine tax administration rather than the start of an investigation. The five most common types are nudge letters, compliance checks, tax calculation notices, penalty and late payment notices, and notices to file a tax return. Each carries a different deadline and a different correct response, and identifying which one you have received is what decides whether the matter closes quickly or escalates. Key Takeaways Not every HMRC letter is an investigation. Nudge letters and tax calculations are routine correspondence. The deadline usually matters more than the content. Most cases that escalate do so because of a late or incomplete reply, not the original issue. Voluntary correction is treated more favourably than the same error identified later by HMRC. A notice to file must be answered even if no tax is due. Assuming otherwise is itself a trigger for penalties. Check your own records before accepting HMRC's figures. HMRC calculations are only as accurate as the data reported to it. Receiving a letter from HM Revenue & Customs (HMRC) can often cause concern. For many business owners, the first reaction is to assume that a tax mistake has been made, or that an investigation is about to begin. In practice, not every HMRC letter indicates a problem. A large proportion of HMRC correspondence forms part of normal tax administration — prompts, calculations, and routine requests for information. What matters is understanding which type of letter you have received, what it is actually asking for, and how quickly you need to respond. Correctly identifying the letter is the difference between a straightforward reply and an escalating compliance issue. The Five Most Common HMRC Letters at a Glance Nudge letter — an informal prompt to review a specific area of your tax affairs. No formal enquiry is open. Review your records and correct any errors voluntarily. Compliance check — a formal review of your return. HMRC requests supporting documents. Respond accurately and on time; take advice first if the case is complex. Tax calculation notice — HMRC's own calculation of tax payable or overpaid, based on data it already holds. Check it against your records before paying. Penalty or late payment notice — issued after a missed deadline. Appeal if it is incorrect; settle quickly if it is correct, as interest continues to accrue. Notice to file — a legal requirement to submit a tax return for a specific year. It must be filed even if no tax is owed. Common Types of HMRC Letters 1. HMRC Nudge Letter A nudge letter is an informal reminder from HMRC encouraging taxpayers to review a specific area of their tax affairs. It does not mean that HMRC has opened a formal investigation. Instead, it is an early warning that HMRC holds information suggesting an area may require attention. Common topics include: Rental property income VAT treatment Business profits Tax relief claims, such as R&D Tax Relief What to do: review your records carefully and correct any errors as soon as possible. A voluntary correction made at this stage is almost always treated more favourably than an error identified later by HMRC. 2. HMRC Compliance Check A compliance check is a formal review carried out by HMRC to confirm that tax returns are complete and accurate. HMRC may request supporting documents, including: Accounting records Invoices Contracts VAT information Other relevant evidence A compliance check may focus on a single specific issue, or it may extend to a wider review of your tax affairs. What to do: provide accurate and timely information. For more complex cases, taking professional advice before responding can help reduce the potential risks and keep the scope of the check contained. 3. Tax Calculation and Payment Requests HMRC may issue tax calculation notices based on information it already holds from a range of sources, including employers, banks, pension providers, and previous tax records. These notices may confirm: Additional tax payable Overpaid tax refunds Updated tax calculations What to do: always compare HMRC's calculation against your own records rather than assuming it is correct. HMRC's figures are only as accurate as the data reported to it. If the information is wrong, contact HMRC promptly to request a correction. 4. Penalties and Late Payment Notices Penalty letters are usually issued when tax obligations have not been completed on time, such as: Late tax returns Late VAT submissions Late tax payments What to do: if you believe a penalty has been issued incorrectly, you may be able to appeal. Where the penalty is correct, resolving the matter quickly helps to minimise additional interest and further charges, which continue to accrue until the position is settled. 5. Notice to File a Tax Return A notice to file means HMRC requires you to submit a tax return for a specific tax year. This is one of the most commonly misunderstood letters. Even if you believe no tax is payable, receiving an official notice to file generally means the return must still be completed and submitted. Failing to file because you assume there is nothing to declare is itself a trigger for penalties. What to do: file the return by the stated deadline, or contact HMRC to ask for the notice to be withdrawn if you believe it was issued in error. Do not simply ignore it. What Should You Do When You Receive an HMRC Letter? Regardless of the type of letter, the same basic process applies: Read the letter carefully and identify what is being asked Check the response deadline Review the information against your own records Prepare supporting documents if required Seek professional advice if the situation is unclear Ignoring HMRC correspondence rarely makes the issue go away. It increases the risk of further enquiries, penalties, and wider compliance problems — and it removes the option of correcting matters voluntarily. Frequently Asked Questions Does a letter from HMRC mean I am being investigated? Usually not. Most HMRC correspondence is routine administration — a prompt, a calculation, or a request for information. A nudge letter in particular does not mean a formal enquiry has been opened. A compliance check is a formal review, but even that is often limited to a single issue rather than a full investigation. How long do I have to respond to an HMRC letter? The deadline is stated on the letter itself and varies by letter type — 30 days is common for compliance checks and penalty appeals. Always work to the date printed on your own letter rather than a general rule, and contact HMRC before the deadline if you need more time. What happens if I ignore a letter from HMRC? Ignoring HMRC correspondence typically escalates the matter. It can lead to penalties, accruing interest, determinations issued in your absence, and a wider enquiry. It also removes the option of making a voluntary correction, which is normally treated more favourably than an error HMRC discovers itself. Do I still need to file a tax return if I owe no tax? Yes, if you have received a notice to file. The obligation comes from the notice itself, not from whether tax is owed. If you believe the notice was issued in error, you must contact HMRC and ask for it to be withdrawn rather than simply not filing. Can I appeal an HMRC penalty? In many cases, yes. Appeals are normally made within 30 days of the penalty notice and require a reasonable excuse for the failure. If the penalty is correct, it is usually better to settle promptly, as interest continues to accrue until the position is resolved. How can I check whether an HMRC letter is genuine? HMRC publishes a list of genuine contact on GOV.UK, which you can use to check whether a letter, email, call, or text matches known HMRC correspondence. HMRC will not ask for passwords, or for personal and financial details, in an unsolicited message. If you have any doubt, do not use the contact details printed on the letter — verify using the official HMRC contact details published on GOV.UK instead. A Word from TB Accountants In recent years, HMRC has significantly expanded the data it receives from third parties, including banks, online platforms, and overseas tax authorities. Much of the correspondence businesses now receive is generated from cross-checking that data against submitted returns. For compliant businesses, this is not a cause for alarm, but it does raise the importance of two things: keeping accurate and contemporaneous records, and responding to HMRC within the stated deadlines. Most HMRC matters that escalate do so not because of the original issue, but because of a delayed or incomplete response. This is particularly relevant for international businesses and overseas entrepreneurs operating in the UK, where correspondence may be sent to a registered office address and go unnoticed until a deadline has already passed. How TB Accountants Can Help At TB Accountants, we support UK companies, international businesses, and overseas entrepreneurs with professional accounting and tax compliance services. Our experienced team can assist with: Reviewing HMRC correspondence Assessing tax compliance risks Preparing responses to HMRC Managing UK accounting and VAT obligations With extensive experience supporting international businesses operating in the UK, we help clients handle HMRC matters confidently and efficiently. Why TB Accountants? Professional Assurance: Our team includes ACA members and ACCA-certified professionals, delivering services to the highest industry standards. Responsive Service: We respond to your inquiries within 24 hours, ensuring efficient communication across time zones. Multilingual Support: Services available in English, Mandarin, Cantonese, Japanese, French, German, Spanish, Italian, Turkish, and more. Trusted by Clients Worldwide: Consistently praised by global clients for proactive, professional, and reliable accounting and tax support. Contact Received an HMRC letter and unsure how to respond? 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@tbagroup.uk or for a free one-to-one consultation. Email: info@tbagroup.uk WhatsApp: +44 7776 908114 Tel: +44 208 349 3939 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. TB Accountants UK Accounting | Tax Compliance | VAT Services | Business Advisory

The British supermarket giant Morrisons previously lost a VAT dispute with HM Revenue & Customs over rotisserie chicken, facing a clawback of around £17 million—a massive sum that shook the food retail sector. If the chicken case was surprising, the 'marshmallow case' takes the absurdity of the UK food VAT system to new heights. It took four tribunal hearings, a detour to the Court of Appeal, a mathematical formula, and nearly £473,000 in disputed tax to answer one single question: is a marshmallow considered confectionery? A years-long VAT dispute - Marshmallow If you have a sweet tooth or frequent the snack aisles of British supermarkets, you might be familiar with Mega Marshmallows. For years, HMRC and the manufacturer, Innovative Bites Limited, were locked in a legal battle over whether these marshmallows are confectionery. HMRC argued that these marshmallows are 'normally eaten with the fingers' and therefore classify as confectionery, subjecting them to the standard 20% VAT rate. The manufacturer, however, maintained that this specific product is intended to be roasted over a fire, making it 'food' eligible for zero-rating. The case was remitted back to the First-tier Tribunal by the Court of Appeal in recent years. Following four tax hearings, the judge ultimately sided with the manufacturer, confirming the zero-rated status of the marshmallows. The tribunal's key reasoning was that these marshmallows are not typically eaten straight from the hand. Investigations highlighted that these giant marshmallows are usually 'cooked'. People skewer them for roasting and may even handle them with tongs, rather than eating them directly with their fingers. Consequently, they do not meet the statutory definition of 'confectionery' and are zero-rated. The result: HMRC lost. The method of consumption is key During earlier hearings, it had already been largely established that the product was not 'traditional confectionery'. Thus, the sole issue in the final hearing focused on a seemingly simple yet highly contentious point: how do people usually eat these giant marshmallows? The tribunal analysed the consumption methods in detail, even examining the cooking process. The ruling noted that giant marshmallows are typically roasted over a barbecue or open fire using a skewer or tongs. Once roasted, the inside turns into a molten state encased in a caramelised shell, making the structure too soft and sticky to handle directly. Unlike standard marshmallows, they do not fit the description of being 'normally eaten with the fingers'. A mathematical formula enters the argument Beyond settling a dispute that spanned several years, one of the most surprising aspects of this case was the tribunal's use of a mathematical formula to support its conclusion. The tribunal categorised the consumption methods into four types: A: eaten directly from the skewer B: taken off the skewer and eaten with fingers C: made into a ‘s'more’ (a toasted marshmallow sandwich) D: eaten unroasted straight from the bag For Mega Marshmallows, the judge determined that: Method A is more frequent than Method B Method C is more frequent than Method D This led to the conclusion: (A + C) > (B + D) In other words, consumers more frequently eat the product without using their bare fingers. This mathematical expression became a crucial piece of evidence in ruling that the product is not 'confectionery'. The subsequent impact Ultimately, the tribunal ruled in favour of the appeal, meaning HMRC lost the case. This outcome allowed Innovative Bites Limited to successfully reclaim their previously rejected VAT refund of £472,928, which covered the period between 2015 and 2019. At the time of the final ruling in early 2024, HMRC had a 56-day window to consider a further appeal. However, as we look back from 2026, the decision firmly stood, closing the chapter on this saga and cementing a significant victory for the manufacturer. The VAT paradox Whether it is Morrisons' rotisserie chicken, roasting marshmallows, KFC dipping sauces, or the hotly debated Marks & Spencer strawberry and cream sandwiches, the UK's food VAT system is full of anomalies that often border on the farcical: Cold croissants: 0% Croissants kept under a heated lamp: 20% Pasties labelled as freshly baked: 0% Pasties labelled as hot: 20% Standard marshmallows: 20% Giant roasting marshmallows: 0% Chocolate-covered biscuits: 20% Chocolate-covered cakes: 0% All these disputes stem from the complex structure of the Value Added Tax Act 1994, which means that food is generally zero-rated. However, excepted items such as confectionery are standard-rated. Yet, there are exceptions to the exceptions. This convoluted structure has been aptly described as a 'Russian doll tax system'. As a result, HMRC and businesses are forced to argue in court over ingredient ratios and preparation methods—debating whether an item is 'normally eaten with the fingers', whether it hardens or softens, its potato content, or whether it is 'intended to be heated'. The view from TB Accountants Although this specific case offers limited direct precedent for other food manufacturers, it is highly likely that similar VAT disputes will continue to arise as food formats and consumption habits evolve. For businesses, every legal precedent offers valuable, practical lessons: Do not blindly accept HMRC's initial assessment. Innovative Bites lost their initial case but eventually won through persistence. Evidence is paramount. Packaging, marketing, shelf placement, and usage methods are all critical pieces of evidence. Conduct early tax assessments. A few hundred pounds spent on professional advice can save hundreds of thousands in litigation costs. Borderline products present opportunities. A 20% difference in tax rates can determine a product's market competitiveness. If you are operating in or planning to enter the UK food sector and have questions regarding VAT rates, returns, or refunds, please contact us for expert support. Why TB Accountants? Professional Assurance: Our team includes ACA members and ACCA-certified professionals, delivering services to the highest industry standards. Responsive Service: We respond to your inquiries within 24 hours, ensuring efficient communication across time zones. Multilingual Support: Services available in English, Mandarin, Cantonese, Japanese, French, German, Spanish, Italian, Turkish, and more. Trusted by Clients Worldwide: Consistently praised by global clients for proactive, professional, and reliable accounting and tax 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@tbagroup.uk 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.

Rising tax burdens in the UK exacerbate fiscal pressures The latest UK tax figures show that both businesses and individuals are facing a steadily increasing tax burden. In May 2026, employers paid £11.3 billion in Employer National Insurance Contributions (NICs), an increase of £848 million compared with the same month last year, representing annual growth of around 8%. During the same period, Corporation Tax receipts reached £3.31 billion, up 12% year-on-year. When combined with other business-related taxes, including the Energy Profits Levy, total business tax revenues amounted to £8.6 billion during the first two months of the 2026/27 fiscal year, an increase of 9.3% compared with the same period last year. Workers Also Facing Higher Tax Bills Businesses are not the only ones paying more tax. Ordinary employees across the UK are also seeing their tax bills rise. In May 2026, PAYE Income Tax receipts totalled £24.2 billion, up from £22.2 billion a year earlier—an increase of approximately 9%. Analysts attribute much of this increase to fiscal drag. Since personal income tax thresholds have been frozen at 2021/22 levels, wage increases have pushed more people into paying income tax or into the 40% higher-rate tax band, even though tax rates themselves have not changed. Sarah Coles, Head of Personal Finance at AJ Bell, said that the freeze in income tax thresholds, combined with higher dividend taxes, has significantly increased the tax burden on households. She noted that since the thresholds were frozen in 2021, every pay rise has resulted in millions of Britons paying more tax or moving into higher tax bands. With the thresholds expected to remain frozen until at least 2031, she warned that tax pressures are unlikely to ease anytime soon. Coles also pointed out that once taxpayers cross into a higher tax band, they not only pay more income tax on their earnings, but also face higher tax rates on savings and investment income, while access to various tax allowances is gradually reduced. Inheritance Tax Revenue Continues to Climb Inheritance Tax (IHT) receipts also continued their upward trend, reaching £730 million. Industry experts expect these revenues to rise even further once pension assets become subject to inheritance tax under planned reforms, potentially bringing many more families within the scope of the tax. Government Borrowing Still Rising Despite Higher Tax Revenues Despite the continued increase in tax receipts, pressure on the UK's public finances remains intense. Official figures show that government borrowing reached £23.3 billion in May 2026, more than 30% higher than in the same month last year and the highest May borrowing figure since 2020. Of that total, £11.7 billion was spent on servicing government debt—accounting for roughly half of all new borrowing during the month and marking the highest debt interest payment ever recorded for May. Financial analysts say the UK's large debt burden means movements in the bond market will continue to place significant constraints on fiscal policy. They note that debt interest costs, public service spending and welfare expenditure are all growing faster than tax revenues. As a result, even with taxes continuing to rise, government income is still insufficient to eliminate the budget deficit. Many observers believe that, with the UK government expected to announce new defence spending plans in the coming weeks, the Treasury will be forced to seek additional sources of revenue—raising the possibility of further tax increases in the future. Read more... UK to miss out on £600m a year after allowing US exemption from landmark tax deal The UK's tax authority, HM Revenue & Customs (HMRC), has revealed that Britain is expected to lose around £600 million in annual tax revenue after the United States secured an exemption from the global minimum corporate tax agreement. In January this year, countries reached a landmark international tax agreement under which nearly 150 jurisdictions agreed to implement a 15% global minimum corporate tax rate. The initiative was designed to prevent large multinational companies from shifting profits to low-tax jurisdictions and to curb international tax avoidance. Co-operation and Development (OECD), U.S. companies were granted an exemption from key elements of the global minimum tax rules. HMRC's Director of Large Business Compliance said the exemption for U.S. businesses is expected to have a direct impact on the UK's public finances, reducing annual tax revenues by approximately £600 million and creating a significant fiscal shortfall. The Public Accounts Committee (PAC) has called on HMRC to strengthen its oversight of multinational corporations amid ongoing concerns over profit shifting and the exploitation of differences between international tax systems. According to official figures, HMRC was investigating approximately £70.1 billion in potential tax liabilities involving large businesses in 2025, with around £21 billion linked to international tax risks. The committee has asked HMRC to provide greater clarity on the scale of these risks and to outline more effective measures to address them. Clive Betts MP, Deputy Chair of the Public Accounts Committee, warned that the UK continues to face a significant risk of losing tax revenue as multinational companies shift profits overseas. He said: "The UK remains at risk of losing substantial tax revenues through multinational profit shifting. With U.S. companies now exempt from parts of the global minimum tax framework, it is even more important that HMRC strengthens its oversight to ensure businesses comply with the new international tax rules and to better understand how these rules are operating in practice." Analysts believe that the U.S. exemption could undermine the effectiveness of the global minimum corporate tax regime. It may also reduce the additional tax revenues that other countries had expected to collect under the new framework, while weakening international efforts to discourage multinational corporations from shifting profits to lower-tax jurisdictions. Read more... Scottish mansion tax will double council tax for £2m homes The Scottish Government is proposing new Council Tax bands for high-value residential properties, introducing higher charges for homes worth more than £1 million. Under the proposals, owners of properties valued at over £2 million could see their annual Council Tax bills rise by around £3,600, bringing the total charge close to double the current level for some of Scotland's most expensive homes. Unlike England, where a similar "mansion tax" proposal would apply only to properties worth more than £2 million, Scotland plans to introduce the higher tax bands starting from £1 million. According to a consultation published by the Scottish Government, two new Council Tax bands would be created: Band I: For properties with an estimated market value between £1 million and £2 million as of 1 April 2026, with an expected annual Council Tax increase of around £720. Band J: For properties valued at over £2 million, adding approximately £3,600 to the current highest Council Tax charge under Band H. At present, Band H is Scotland's highest Council Tax band and applies to homes valued at more than £212,000 under the existing valuation system. Under the proposed reforms, owners of multi-million-pound properties would face significantly higher annual tax bills. For the 2026/27 financial year, annual Band H Council Tax charges are: Edinburgh: £3,983.82 Glasgow: £4,180.00 Aberdeen: £4,281.47 South Lanarkshire: £3,597.75 Scotland's Deputy First Minister said the reforms are based on the principle of fairness, arguing that "those with the greatest wealth should contribute a little more." The Scottish Government estimates that the new high-value property bands would affect less than 1% of homes across Scotland. Following the public consultation and discussions with local authorities, the Scottish Government will determine the final tax rates for Bands I and J before submitting the proposals to the Scottish Parliament for approval. As the reforms require primary legislation, the government intends to introduce the new Council Tax bands on 1 April 2028. Reduction Scheme—would continue to apply across all Council Tax bands. The public consultation is open until 24 August 2026. Read more... Why TB Accountants? Professional Assurance: Our team includes ACA members and ACCA-certified professionals, delivering services to the highest industry standards. Responsive Service: We respond to your inquiries within 24 hours, ensuring efficient communication across time zones. Multilingual Support: Services available in English, Mandarin, Cantonese, Japanese, French, German, Spanish, Italian, Turkish, and more. Trusted by Clients Worldwide: Consistently praised by global clients for proactive, professional, and reliable accounting and tax 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@tbagroup.uk 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 recent years, Capital Gains Tax (CGT) policies have become increasingly stringent. The annual exemption has dropped significantly to £3,000, pulling many taxpayers into the CGT net for the first time. Furthermore, HMRC is strengthening its oversight through data matching and proactive correspondence, causing compliance risks to rise rapidly. Meanwhile, as of 2026, tax compliance requirements have undergone a comprehensive overhaul. This includes a stricter penalty regime and digital reporting mandates such as Making Tax Digital (MTD). For investors holding residential rental properties, there is a crucial requirement that is easily overlooked but highly likely to trigger penalties: the 60-day CGT reporting rule. What is the 60-day CGT reporting rule? Under current legislation, when you sell a residential property and a Capital Gains Tax liability arises, you must report and pay the tax within 60 days of the completion date. This rule applies to buy-to-let properties, second homes, non-main residences, and properties partially used as a main residence that still generate a taxable gain. It is important to note that even if you already submit an annual Self Assessment tax return, the 60-day report must be completed separately. It cannot be combined with or replaced by your annual return. For non-residents, similar but broader reporting requirements apply, covering both residential and non-residential properties, as well as direct and indirect disposals. If this applies to you, seeking professional advice is highly recommended. Failing to report and pay within the 60-day window can result in late filing penalties, late payment interest, and an increased risk of an HMRC investigation. Given current regulatory trends, HMRC actively uses data to identify unreported transactions and issues warning letters. Many taxpayers only realise there is a problem when they receive a notice from HMRC, by which time additional costs have already accrued. Exemptions from the 60-day reporting rule If a disposal does not result in a CGT liability, the 60-day reporting rule generally does not apply. Examples include 'no gain, no loss' transfers between spouses or civil partners, gains fully covered by exemptions or reliefs (such as the annual exemption or Private Residence Relief), gains offset by realised losses from previous years or the current year, and properties sold at a loss or with no gain. Therefore, if you are selling your only or main residence and have lived in it for your entire period of ownership, you generally do not need to submit a 60-day report. Furthermore, reporting is not required for commercial leases granted to unconnected parties with no premium, disposals made by charities, disposals of pension investments, or disposals of properties belonging to a trading business (which are subject to Income Tax rather than CGT). How to calculate Capital Gains Tax When submitting a 60-day report, you typically need to perform an initial tax calculation to estimate the CGT payable. This calculation should factor in the annual exemption, which has been £3,000 since the 2024/25 tax year, and deductible capital losses, including losses generated before the disposal and losses carried forward from previous years. However, you cannot use losses that occur later in the current tax year to reduce the immediate tax payable. You may reasonably account for expected tax reliefs where applicable. A submitted report can be amended, but it cannot be adjusted for events occurring after the completion of the transaction, nor can it be modified after the annual tax return has been submitted. The final tax position is confirmed in your annual Self Assessment and adjusted based on actual circumstances, such as subsequent losses. If the tax paid in advance falls short, interest may be charged. Common pitfalls to avoid In practice, we find that the 60-day reporting obligation is most frequently missed in the following scenarios: Telling the accountant only at year-end: Many clients are accustomed to mentioning transactions during their annual tax return preparation, but by this time, the 60-day deadline has usually passed. Assuming main residences are automatically exempt: If the property was not occupied as your main residence for the entire period of ownership (for instance, if it was let out or used as a second home), a CGT reporting obligation may still arise. Believing a Self Assessment return is sufficient: Simply reporting the sale in your annual tax return can still be treated as a late 60-day submission. Confusing the completion date with the exchange date: The 60-day period begins on the completion date of the transaction, rather than the date contracts are exchanged. Forgetting that CGT must be paid immediately: The CGT arising from the sale must be paid alongside the 60-day report. It cannot be deferred until the 31 January deadline for your annual tax bill. The view from TB Accountants If you are planning to sell or gift a residential property, consulting a professional adviser as early as possible will help you plan your taxes and ensure compliant reporting. If the property sale results in a loss, although a 60-day report is not strictly required, voluntarily reporting it may help confirm and utilise that loss. If there is a gain, you might consider realising a capital loss prior to the sale to reduce your overall tax burden. Additionally, if you are unsure of your tax residency status, you should confirm it promptly, as different statuses dictate different reporting rules. After the end of the tax year in which the disposal occurs, reviewing your overall tax position is sensible, as there may be opportunities for a tax refund. Why TB Accountants? Professional Assurance: Our team includes ACA members and ACCA-certified professionals, delivering services to the highest industry standards. Responsive Service: We respond to your inquiries within 24 hours, ensuring efficient communication across time zones. Multilingual Support: Services available in English, Mandarin, Cantonese, Japanese, French, German, Spanish, Italian, Turkish, and more. Trusted by Clients Worldwide: Consistently praised by global clients for proactive, professional, and reliable accounting and tax 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@tbagroup.uk 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.

England's warmest June on record following historic heatwave The UK Met Office’s latest preliminary data show that June 2026 was the hottest June ever recorded in England and the second-hottest June in UK history overall. The prolonged extreme heat wave sweeping across Europe has not only broken multiple temperature records but has also caused excess deaths in several countries, once again drawing attention to the impacts of climate change. On June 26, 2026, the temperature in Lingwood reached 37.7°C setting a new UK record for the highest temperature ever recorded in June. The previous record of 35.6°C had stood for nearly 70 years. Data show that the average temperature in England this June was 17.1°C, nearly 3°C above the historical average for the month, also a record high. Daytime temperatures were exceptionally elevated, while nighttime temperatures remained unusually warm as well. Many areas experienced frequent tropical nights—when the minimum temperature does not fall below 20°C—further increasing the monthly average. In response to the persistent heat, UK meteorological authorities issued a rare red extreme heat warning for parts of England and Wales. Some areas in eastern England remained under the highest-level warning for three consecutive days, the longest duration ever recorded. The heat wave also affected other parts of the United Kingdom: Wales experienced its second-hottest June on record. On June 25, the capital Cardiff recorded 35.9°C (96.6°F), breaking the city’s June temperature record and surpassing the previous record of 33.7°C (92.7°F). Northern Ireland recorded 30.8°C (87.4°F) in Castlederg, tying its all-time June temperature record. The extreme heat was not limited to the UK. During June 2026, several European countries—including Hungary, Austria, Netherlands, Switzerland, and Denmark—set new June temperature records. France also experienced historic heat. According to Météo-France, the country’s 24-hour average temperature exceeded 30°C (86°F) for the first time ever, making it the hottest day since records began. As official statistics continue to emerge, the human cost of the heat wave is becoming clearer. France recorded approximately 1,000 excess deaths during the heat wave, most of them among people aged 65 and older. Spain reported 1,029 excess deaths attributed to extreme heat. These figures underscore the growing public health risks associated with increasingly frequent and intense heat waves across Europe. Read more... HMRC names and shames 150 businesses avoiding tax The UK's tax authority, HM Revenue & Customs (HMRC), has recently published a list naming more than 150 businesses and individuals that were penalized for failing to meet their tax obligations. Among them, 43 businesses in London were identified for deliberately evading taxes, with unpaid taxes and penalties totaling approximately £4.8 million. However, the list only covers civil tax penalties and does not include criminal tax evasion cases. The published list includes a wide range of high street businesses, such as convenience stores, vape retailers, takeaway shops, and other everyday local businesses. Among those named, S&B Expo Ltd, a wholesale company headquartered in Manchester, received a penalty of £801,400 for tax violations, making it one of the largest fines on the list. The head of HMRC's Small Business and Customer Compliance division said that many businesses operating on Britain's high streets gain an unfair competitive advantage by evading taxes, allowing them to reduce operating costs at the expense of businesses that comply with tax laws. This, in turn, harms local communities and undermines fair competition. Kevin Hubbard said that the businesses named on the list—including takeaway outlets, convenience stores, and other high street retailers—demonstrate that HMRC's enforcement efforts against tax non-compliance extend across all parts of the UK. HMRC also announced that it plans to carry out more than 30,000 compliance inspections targeting high street businesses across the UK, with a focus on tackling tax evasion and other forms of illegal business activity. In addition, the tax authority will crack down on business owners who attempt to avoid their tax liabilities by closing one company and registering a new one to continue trading. Under HMRC's rules, the details of the businesses and individuals named on the list will remain publicly available for 12 months. HMRC said the publication of the list is part of its ongoing efforts to combat tax evasion, improve tax transparency, promote fair competition, and ensure that the UK's tax system is enforced effectively. Read more... Council tax crisis as British households trapped in £7.4billion debt black hole: 'People can't pay!' Local government finances in the UK continue to come under increasing strain. According to the latest official figures, outstanding Council Tax debt in England reached a record £7.4 billion by the end of March 2025, an increase of around £800 million compared with the previous year. As the cost of living remains high, more households are struggling to keep up with their tax payments. Data released by the UK Department for Levelling Up, Housing and Communities show that £2.2 billion in Council Tax went uncollected on time during the 2025–26 financial year, representing a 16% increase from the previous year. Despite the growing level of unpaid tax, Council Tax bills have continued to rise. In the 2025–26 financial year, around 90% of local authorities increased Council Tax by the maximum legal limit of 5%, pushing the average annual bill for a typical household to around £2,280. James Cleverly, the Conservative Party's Shadow Housing Secretary, said the rising tax bills were placing an even greater burden on families. "It's no surprise that people are struggling to pay their taxes. Working families are facing an ongoing cost-of-living crisis while also being hit with ever-higher tax bills. For the average Band D household, Council Tax is expected to rise by a total of £1,143 over the course of this Parliament." Meanwhile, the Labour government is reportedly planning to reform the Council Tax collection system from 2027 to reduce the pressure on residents who fall behind on payments for a short period. Under the current rules, if a resident misses just one instalment, a local authority can require them to pay the entire year's Council Tax bill within as little as 21 days. Under the proposed reforms, this grace period would be extended to 63 days, giving taxpayers more time to catch up on missed payments. The government also plans to cap the administrative fees that local authorities can charge when applying to the courts for a Liability Order, setting a maximum charge of £100. At present, some councils charge as much as £153 for this process. Once a Liability Order has been granted, however, local authorities can still take stronger enforcement action, including instructing bailiffs to recover unpaid debts. Responding to criticism, the Ministry of Housing, Communities and Local Government stressed that the reforms are not intended to reduce or write off Council Tax liabilities. Instead, the aim is to create a fairer and more reasonable repayment process that helps taxpayers meet their obligations while preventing short-term financial difficulties from quickly escalating into serious debt. Read more... Why TB Accountants? Professional Assurance: Our team includes ACA members and ACCA-certified professionals, delivering services to the highest industry standards. Responsive Service: We respond to your inquiries within 24 hours, ensuring efficient communication across time zones. Multilingual Support: Services available in English, Mandarin, Cantonese, Japanese, French, German, Spanish, Italian, Turkish, and more. Trusted by Clients Worldwide: Consistently praised by global clients for proactive, professional, and reliable accounting and tax 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@tbagroup.uk 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.

Small, owner-managed, and family businesses play a vital role in the economy. However, an issue that cannot be ignored is the widening tax gap among small businesses. Currently, the small business tax gap accounts for 60% of the overall tax gap, with the Corporation Tax component being particularly prominent. In the 2023 to 2024 tax year, this gap reached £14.7 billion, representing 40.1% of the theoretical Corporation Tax liability for small businesses. Recently, the government published a new consultation document planning to introduce stricter information reporting requirements for 'close companies' to strengthen tax oversight, reduce tax loss, and narrow the small and medium-sized enterprise (SME) tax gap. Why strengthen oversight? The consultation document proposes to require 'close companies' to report details of their transactions with 'participators' to HM Revenue and Customs (HMRC), including the amount and date of each transaction, as well as information about the payee. The document notes that due to the close relationship between close companies and their participators, such structures are more susceptible to tax loss risks. Although current regulations already address some scenarios (for instance, loans provided by a company to a participator must be reported and taxed under specific circumstances), HMRC believes it still lacks a comprehensive overview of relevant transactions. Therefore, introducing new reporting requirements is deemed necessary to reduce tax errors and evasion, and to further narrow the SME tax gap. What is a 'close company'? Broadly speaking, a company is typically classified as a close company if it meets the following criteria: It is controlled by five or fewer participators, or Any number of participators are also directors. Here, a 'participator' refers to any individual or entity that has a share or financial interest in the company, including shareholders, loan creditors, and anyone entitled to a share of the company's income or assets. This definition encompasses not only direct shareholders but also related parties holding share options or similar rights. In practice, the vast majority of private limited companies fall into this category. For example, a typical owner-managed business, usually consisting of just one or two members who act as both directors and shareholders, will almost certainly be treated as a close company. Although companies of all sizes in theory could be classified as close companies, in reality, this classification predominantly applies to SMEs. Proposed transaction types and information to be reported Under the proposal, close companies would be required to report on a wide range of transactions with their participators, including: Cash withdrawals, loan arrangements, debt agreements, and dividend distributions; Other forms of asset transfers or benefit distributions (whether flowing from the company to the participator or vice versa). However, employment income that is already reported through the Real Time Information (RTI) system, such as salaries paid to directors, would not be included in these new reporting requirements. For each transaction within the scope, companies are expected to provide detailed information, including the transaction amount, date, and the identity of the payee, such as their name, address, and National Insurance number (NINO). If a company is unable to obtain the relevant individual's NINO, it may need to provide additional supporting information to help HMRC accurately identify the other party to the transaction. Reporting mechanism and timeframe The government has not yet finalised the specific reporting mechanism, but it leans towards annual reporting, potentially linked to the existing Corporation Tax return. At the same time, it is evaluating whether there is a need to introduce more frequent or even real-time reporting mechanisms. It should be noted that while the exact implementation date for the new rules has not yet been announced, it is expected that the current general penalty regime will apply. Furthermore, the government has indicated it does not rule out the possibility of introducing specific penalties for the deliberate concealment of transactions. The consultation period closed on 10 June 2026, and the industry is now awaiting the government response. Existing anti-avoidance regimes and practical operations There is in fact already a relatively comprehensive regulatory framework targeting common tax avoidance behaviours within close companies, the core of which is the loans to participators regime. Loans to participators regime Under current rules, if a company provides a loan or an untaxed benefit to a participator, or if a participator owes a debt to the company, and the relevant amount remains unpaid nine months after the end of the accounting period, the company is required to pay an additional tax charge set at the higher dividend rate. Although the company can claim a refund of this tax once the debt is finally repaid, if the debt is released or written off, the relevant amount is treated as a dividend, and the participator must pay individual Income Tax accordingly. Director's loan accounts In practical business operations, many SME owners withdraw funds from their company for personal expenses. These funds are often not immediately processed as salary or dividends but are initially recorded as a 'loan' in the company's books and allocated to what is known as a director's loan account (DLA). The issue is that without proper record-keeping and management, such accounts can easily become high-risk areas for tax compliance, involving situations such as long-term outstanding balances, unclear usage of funds, or deliberate avoidance of dividend tax. A word from TB Accountants Alongside strengthening oversight at the corporate level, recent years have also seen improvements to the personal tax reporting system. From April 2025, company directors have been required to disclose more information when submitting their personal Self Assessment tax returns, including basic details of the company they work for, dividend income received, and their shareholding percentage. This aims to further enhance transparency and strengthen the cross-checking capabilities of tax data. At the same time, although the government has decided to pause the rollout of Making Tax Digital for Corporation Tax, it has clearly stated its intention to collaborate with stakeholders to explore future optimisations of the Corporation Tax administration system, and to continue researching other policy tools to narrow the SME Corporation Tax gap. This series of initiatives indicates that the future development of the tax system will place a greater emphasis on information connectivity, data transparency, and structural coordination. Overall, the focus of the latest tax measures is on improving transparency and compliance rather than simply increasing the tax burden. For the majority of legally compliant SMEs, this is an opportunity to strengthen management and reduce tax risks. By standardising financial records and establishing clear boundaries between company and personal funds, businesses can improve their resilience and credibility under strict regulatory scrutiny. Why TB Accountants? Professional Assurance: Our team includes ACA members and ACCA-certified professionals, delivering services to the highest industry standards. Responsive Service: We respond to your inquiries within 24 hours, ensuring efficient communication across time zones. Multilingual Support: Services available in English, Mandarin, Cantonese, Japanese, French, German, Spanish, Italian, Turkish, and more. Trusted by Clients Worldwide: Consistently praised by global clients for proactive, professional, and reliable accounting and tax 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@tbagroup.uk 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 pulls forward plan to close small parcel import tax loophole According to UK media reports, the British government will bring forward the abolition of tariff relief for imported parcels valued at less than £135 in an effort to address growing competitive pressure from overseas e-commerce platforms. Last year, the UK Chancellor indicated that Britain would follow similar approaches adopted by the United States and Europe and reform the system by 2029. However, the Treasury announced last week that the exemption will now be abolished earlier, in October 2028. However, several major UK retailers argue that the revised timeline is still too slow and will do little to alleviate the challenges facing domestic retailers. Under the current rules, overseas retailers can ship parcels worth less than £135 directly to UK consumers without paying customs duties. These goods are commonly referred to as de minimis imports. It remains unclear how much additional tax revenue the new policy will generate. However, a previous investigation by Sky News found that the declared trade value of de minimis imports reached £5.9 billion during the 2024–2025 fiscal year. Based on an illustrative tariff rate of 20%, the potential tax revenue could exceed £1 billion. George Weston, Chief Executive of Associated British Foods (ABF), the parent company of fashion retailer Primark, said the government has already acknowledged that the current system harms UK high streets and deprives the Treasury of hundreds of millions of pounds in potential tax revenue, yet the policy will remain in place for another two years. The British Retail Consortium (BRC), which represents many of the UK's largest retailers, also stated that the newly announced reforms "still fall far short" of what is needed. Its members include major retailers such as Next, Sainsbury's, and Superdrug. Industry observers believe that as cross-border e-commerce continues to grow, debates in the UK over import tax fairness, the protection of brick-and-mortar retailers, and competition within the e-commerce sector are likely to continue. Read more... VAT and PAYE payments will have to be made by direct debit HM Revenue & Customs (HMRC) has launched a major tax consultation that could require most businesses and sole traders to pay Value Added Tax (VAT) and Pay As You Earn (PAYE) liabilities through Direct Debit, eliminating alternative payment methods such as bank transfers, debit or credit cards, and even cheques. According to HMRC, the proposed reform could affect approximately 2.4 million businesses, self-employed individuals, and employers, representing around 87% of all current VAT and PAYE taxpayers. Only some large businesses with exceptionally high tax liabilities may continue to use other electronic payment methods. Currently, only around 330,000 of the UK's 2.73 million VAT- and PAYE-registered taxpayers pay via Direct Debit, accounting for just 13% of the total. As a result, the proposal would represent one of the most significant changes to the UK tax payment system in recent years. Under the proposed system: Businesses would set up a one-time Direct Debit authorization through their online VAT account. HMRC would automatically collect the payment three days after the tax payment deadline. Taxpayers would receive advance notice of the payment amount and collection date three working days before the funds are withdrawn. HMRC believes the change would create a more automated “file-and-pay” process, removing the need for businesses to arrange individual payments each time a tax return is submitted. From a business perspective, automatic collection may also reduce the risk of late payment penalties. However, the system would not apply to every business. The UK BACS Direct Debit system has a transaction limit of approximately £20 million per payment, meaning large companies with tax liabilities exceeding that amount would be unable to use Direct Debit. HMRC intends to retain alternative electronic payment methods for those businesses. In addition, companies with annual VAT liabilities exceeding £2.3 million but below £20 million would also see their Payments on Account included within the new arrangements. In recent years, HMRC has actively encouraged businesses to adopt Direct Debit payments. Earlier this year, official guidance described Direct Debit as the department's “primary payment method.” However, uptake has remained relatively low. At present, most businesses continue to pay taxes using: Bank transfers Debit cards Corporate credit cards Standing orders Cheques Cash payments at bank counters The proposed reform forms part of HMRC’s broader tax digitalization strategy. In addition to expanding Direct Debit payments, HMRC plans to phase out several paper-based VAT forms by the end of 2026 and replace them with online processes, including: Option to Tax notifications Requests to revoke an Option to Tax VAT deregistration applications Other VAT compliance procedures The public consultation on mandatory Direct Debit payments for VAT and PAYE will remain open until 16 August 2026. If the proposal receives sufficient support, the government could formally announce implementation plans in the Autumn Budget later this year. Read more... Trump threatens 100% tariff on any country that imposes digital services tax U.S. President Donald Trump has warned that any country imposing a Digital Services Tax (DST) on American technology companies could face punitive tariffs of up to 100% on exports to the United States. The move could further escalate trade tensions between the United States and Europe and add uncertainty to the future of global digital tax reforms. In a recent post on his social media platform Truth Social, Trump stated that any country implementing a digital services tax targeting U.S. companies would be subject to an immediate 100% tariff on goods exported to the United States. “This tariff will supersede any trade agreements made with that country, whether implemented, signed, or pending implementation,” Trump wrote. Digital services taxes generally target the world’s largest and most profitable technology companies, including Meta Platforms, Alphabet, and Amazon. Because these firms are predominantly American, Trump has long opposed such taxes, arguing that they unfairly discriminate against U.S. technology companies. Last year, Trump threatened to suspend trade negotiations with Canada over its proposed digital services tax. The Canadian government subsequently withdrew the measure before it was due to take effect. More than a dozen countries have already introduced or proposed similar digital taxes. France was among the first to adopt such a measure. Since 2019, France has imposed a 3% digital services tax on revenue earned in France by large digital companies with annual French revenue exceeding €25 million and global revenue exceeding €750 million. French lawmakers even proposed increasing the tax rate to 6% last year. Trump previously warned that the United States could impose 100% tariffs on French wine if France refused to eliminate its digital tax. French President Emmanuel Macron responded that France would not abandon its tax policy under U.S. pressure. France’s digital services tax applies to activities such as online advertising, digital marketplaces, and online platforms. The Office of the U.S. Trade Representative has also repeatedly threatened retaliatory tariffs against countries including France, the United Kingdom, Spain, and Austria, arguing that their digital tax regimes unfairly target American businesses. Trump’s latest comments come at a time of renewed trade tensions between the United States and Europe. Under a previous trade agreement between the United States and the European Union, U.S. tariffs on European goods were capped at 15%, while the EU agreed to gradually reduce tariffs on American industrial products to zero. However, slow progress within the EU’s legislative process prompted Trump to threaten the reimposition of 25% tariffs on European imports, including automobiles, and to demand that the EU implement the agreed changes by July 4. Analysts believe that if Trump follows through on his threat to impose 100% tariffs, trade tensions between the United States and Europe could intensify significantly. However, considerable legal uncertainty remains regarding whether Trump has the authority to implement such tariffs immediately. Read more... Why TB Accountants? Professional Assurance: Our team includes ACA members and ACCA-certified professionals, delivering services to the highest industry standards. Responsive Service: We respond to your inquiries within 24 hours, ensuring efficient communication across time zones. Multilingual Support: Services available in English, Mandarin, Cantonese, Japanese, French, German, Spanish, Italian, Turkish, and more. Trusted by Clients Worldwide: Consistently praised by global clients for proactive, professional, and reliable accounting and tax 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@tbagroup.uk 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 start of the new financial year in April 2026, what should have been a 'reboot' for the economy and public finances has instead evolved into a silent but widespread upward trend in the tax burden. Is This the Hardest Year for the Middle Class? The Personal Allowance threshold remains frozen while inflation has continued to bite. An increasing number of people who previously paid no tax are being pulled into the tax net for the first time, and more middle-class earners are unknowingly being pushed into higher tax bands. This is not due to a genuine increase in wealth, but rather a passive increase in tax liability. At the same time, from Making Tax Digital (MTD) to adjustments in corporate tax regimes, a combination of policies has left both businesses and individuals feeling unprecedented pressure. Wages are struggling to keep pace with prices, yet the tax burden is quietly climbing. The intersection of 'stealth taxes' and the cost-of-living crisis is directly impacting the income and outgoings of every British household. What is happening for the Middle Class? An annual assessment by the International Monetary Fund (IMF) indicates that the UK's tax-to-GDP ratio will rise from 37.6% to 42.1% between 2024 and 2031, an increase of 4.5 percentage points. This increase is not only the highest among all the countries analysed, but also five times the average of the 38 advanced economies (0.9 percentage points). In other words, the UK is experiencing an 'accelerated' expansion of its tax burden, a trend set to continue over the coming years. Chancellor Rachel Reeves suggests that this trajectory is almost inevitable. The fiscal black hole left by the Covid-19 pandemic, the worsening issue of an ageing population, and the economic shocks stemming from Middle Eastern conflicts are all continuously driving up government spending. Without a corresponding increase in revenue, raising taxes has become a primary method to plug the gap. According to the latest estimates from the Institute for Fiscal Studies (IFS), nearly a quarter of all taxpayers will be pushed into higher tax bands by 2031. Why does the tax burden keep climbing? The drivers behind the rising UK tax burden are primarily focused on three areas: Freezing of tax thresholds: Since 2021, the starting threshold for Income Tax has remained unchanged and will continue to be frozen until 2028. On the surface, the tax rate has not changed, but as wages rise due to inflation, an increasing number of people are passively crossing the line into higher tax bands. This phenomenon is known as 'fiscal drag', and its essence is to increase the tax burden without raising the headline rate. Increased corporate tax burden: In the 2024 Budget, the employer National Insurance rate was raised from 13.8% to 15%. This means that businesses must pay the government more for every employee they hire. Although this tax is borne directly by businesses, in the long term, it may indirectly affect workers by depressing wage growth or reducing hiring. Significant pressure on government spending: On the one hand, the UK's debt interest payments are expected to exceed £100 billion this year; on the other hand, an ageing population is rapidly driving up pension and welfare costs. Against this backdrop, even just to maintain the current level of public services, the government must continually increase its tax revenue. The tax burden is not the highest, but feels ‘heavier' Among G7 nations, the UK's tax burden is not the highest. France's tax burden is around 46% of GDP, and Germany's is roughly 39%, both higher than the current UK level; the US and Canada are lower at 28% and 34% respectively. However, structural issues within the UK tax system make the 'perceived pressure' on taxpayers much greater. For instance, France utilises a 'family quotient' system, taxing based on the household, which effectively reduces the burden on single-income families. While social security contributions in Germany are relatively high, they are shared more evenly between employers and employees, and employ a progressive adjustment mechanism. The US and Canada generally lack 'cliff-edge' tax thresholds, making changes in tax liability much smoother. In contrast, the UK has several distinct income thresholds; once crossed, the tax burden rises sharply. This 'bracket jumping' effect leaves many feeling a noticeable shrinkage in their take-home pay. The freezing of tax thresholds is gradually altering the UK's tax structure and having a differential impact on various income groups. Low earners see limited take-home pay growth: For lower-income earners, those previously earning below the £12,570 Personal Allowance are being pulled into the 20% basic rate band as their wages rise. While their income appears to increase, the actual post-tax growth is limited. For example, a worker with a starting salary of £15,000 could pay an extra £3,000 in tax over the entire freeze period. Middle-income earners face a clearer impact: Someone with a starting salary of £35,000 could see their earnings reach approximately £53,000 by 2031 under normal wage growth, thereby crossing the £50,270 threshold and entering the 40% tax band. Consequently, this group will not only see their income growth partially offset, but they may also bear thousands to tens of thousands of pounds in additional Income Tax during the freeze. High earners are equally unable to escape: Between £100,000 and £125,140, the Personal Allowance is gradually tapered away, creating an effective marginal tax rate of around 60%. As this threshold has not been adjusted since 2010, the number of people affected has tripled to approximately 1.6 million. Furthermore, once this bracket is crossed, parents also lose up to £2,000 per child in tax-free childcare subsidies. Increased tax burden for families with children: For families with children, the situation is even more complex. The Child Benefit charge now starts tapering at £60,000 and is completely withdrawn at £80,000. Due to the frozen thresholds, an increasing number of families are being caught by this mechanism. When combined with Income Tax, National Insurance, and student loans, the effective marginal tax rate for some families can exceed 60%. More pensioners will pay tax: Pensioners are also beginning to feel the squeeze. It is projected that by 2027, the State Pension will exceed the Personal Allowance threshold, meaning that a growing number of retirees will start paying Income Tax for the first time. By 2031, this newly taxable demographic is expected to reach one million people. The view from TB Accountants The rising tax burden in the UK is not the result of a single policy change, but rather the culmination of multiple structural factors. From frozen thresholds to demographic shifts, and from debt pressures to expanding public expenditure, this trend is unlikely to reverse in the short term. The more critical uncertainty lies in the government's next fiscal policy choices. Faced with mounting financial pressure, the UK may be forced to continue weighing up tax rises, spending cuts, or increased borrowing. These choices will not only influence the budget arrangements later this year but could also dictate the trajectory of the UK's overall tax environment for years to come. Why TB Accountants? Professional Assurance: Our team includes ACA members and ACCA-certified professionals, delivering services to the highest industry standards. Responsive Service: We respond to your inquiries within 24 hours, ensuring efficient communication across time zones. Multilingual Support: Services available in English, Mandarin, Cantonese, Japanese, French, German, Spanish, Italian, Turkish, and more. Trusted by Clients Worldwide: Consistently praised by global clients for proactive, professional, and reliable accounting and tax 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@tbagroup.uk 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.

Reform UK vows to raise VAT threshold to £150,000 Reform UK has announced that, if it wins the next general election, it will raise the VAT (Value Added Tax) registration threshold for small businesses from the current £90,000 to £150,000, aiming to provide what it calls a “fairer deal” for small business owners and self-employed workers in the UK. The proposal has once again sparked a long-running debate over the costs and benefits of tax reform. According to plans unveiled by the party last week, businesses with an annual turnover below £150,000 would no longer be required to register for or pay VAT. Although the tax cut is expected to reduce government revenue by more than £2 billion, Reform UK argues that the long-term fiscal benefits generated by higher productivity across the British economy would offset the cost. The party also stated that, in the short term, the policy would be funded through reductions in civil service spending, welfare expenditures, and spending related to “net-zero emissions” policies. At present, the maximum VAT registration threshold permitted for European Union member states is €100,000. Reform UK contends that, following Brexit, the UK enjoys greater policy autonomy, and that raising the threshold would strengthen the country’s international competitiveness while further unlocking the benefits of leaving the EU. Party leader Nigel Farage said: “When we proposed abolishing tax on overtime earnings, we promised that self-employed workers and small business owners would also benefit. Today’s announcement of a higher VAT registration threshold is the beginning of delivering on that promise.” In fact, Farage stated in a media interview last year that the current £90,000 VAT threshold was “clearly too low,” as many small businesses with only one or two employees find themselves hovering around that level. At the time, he suggested increasing the threshold to around £160,000. Tax experts have expressed mixed views on the proposal. Economists at the Chartered Institute of Taxation (CIOT) argue that the current VAT threshold system distorts market competition and should be reformed to create a fairer business environment, simplify tax administration, and establish a more sustainable tax system. Other economists acknowledge that the VAT system may, to some extent, discourage business growth, but warn that a substantial increase in the threshold would impose a “significant cost” on public finances. One economist commented: “Rather than raising the threshold, the government should address the issue by lowering or even abolishing the threshold and broadening the VAT tax base.” Analysts believe that this attractive tax-cutting proposal serves not only as a key expression of Reform UK’s support for small businesses and self-employed workers, but may also be intended to divert attention from controversies surrounding some of the party’s candidates and help secure greater voter support ahead of upcoming by-elections. Read more... Rachel Reeves double UK state pension tax threshold to £25,140 showdown Recently, a petition calling for reform of pension taxation has gathered 119,206 signatures, surpassing the 100,000-signature threshold required for consideration by the UK Parliament. The petition proposes increasing the tax-free personal allowance for recipients of the State Pension from the current £12,570 to £25,140—effectively doubling it. Under parliamentary procedures, MPs are scheduled to debate the issue on 15 June, and the UK Treasury will be required to formally respond and clarify the government's position. The petition proposes creating a separate tax code for pensioners, with a tax-free allowance of £25,140. Key elements of the proposal include: Pensioners would pay no income tax on annual income up to £25,140. Higher-income retirees would continue to pay tax as normal. The policy is primarily aimed at reducing the tax burden on low- and middle-income pensioners. At the heart of the debate is the UK's Triple Lock system. Under this mechanism, the State Pension increases each year by whichever is highest: average earnings growth, inflation, or 2.5%. The policy is designed to ensure that pensioners' purchasing power is protected from economic changes. As a result, State Pension payments have risen steadily in recent years. Market forecasts suggest that by 2027, the annual State Pension could exceed the current personal tax-free allowance of £12,570 for the first time. This would mean that even individuals with no other source of income could become liable for income tax solely because of their State Pension income. Analysts believe this development could bring millions of pensioners into the income tax system for the first time, further intensifying calls for pension tax reform. After the petition passed the 10,000-signature mark, the UK Treasury issued an official response. The Treasury stated that the Triple Lock is widely regarded as one of the most generous pension uprating systems in the world. Under current plans, the State Pension will increase by 4.8% next April, providing pensioners with up to £575 in additional annual income. However, as pension payments continue to rise, increasing numbers of retirees are concerned that they may be pushed into paying income tax. Many are questioning whether some of the gains from higher pensions could effectively be offset by higher tax liabilities. The upcoming parliamentary debate is expected to further raise the profile of the issue and may prompt the Treasury to provide clearer answers on several key questions. Analysts argue that, against the backdrop of an aging population and a growing number of retirees, pension taxation could become one of the major political and fiscal policy debates in the UK over the coming years. At the same time, although Chancellor Rachel Reeves did not increase the personal income tax allowance in her Autumn Budget, she previously made a clear commitment that pensioners who rely solely on the full State Pension would not be required to pay income tax or file tax returns simply because their pension income exceeded the personal allowance threshold. In response to that commitment, the Treasury further explained that if the State Pension eventually rises above the personal allowance, pensioners who receive only the Basic State Pension or the New State Pension and have no other sources of income will no longer be required to pay small tax liabilities through the Simple Assessment system from the 2027/28 tax year onward. The Treasury stated that the details of the implementation are still being developed and that further information is expected to be published in 2026. This means that even if the State Pension exceeds the personal allowance in the future, eligible pensioners may be spared the need to file tax returns or make additional tax payments, thereby reducing administrative burdens. Read more... More than 1.5 million people taken to court over unpaid council tax According to newly released research by the UK trade union GMB, at least 1.5 million people across Britain have faced legal proceedings over unpaid Council Tax during the past year, raising fresh concerns about the financial pressures on local authorities and the fairness of the current council tax system. After submitting Freedom of Information (FOI) requests to 200 local authorities across the UK, GMB found that approximately 1.4 million court summonses related to council tax arrears were issued during the 2024/25 financial year. Since some local authorities did not provide data, the union believes the true figure is likely to be significantly higher, estimating that at least 1.5 million individuals have become involved in legal proceedings over unpaid council tax. Council Tax is a key source of revenue for local governments in the UK, funding essential public services such as waste collection, social care, road maintenance, and community services. When residents fall seriously behind on payments, local authorities typically apply for a Liability Order through the courts, which can then lead to wage deductions, benefit deductions, or the involvement of debt collection agencies. GMB National Secretary Rachel Harrison said the figures demonstrate that the current council tax system is becoming increasingly unsustainable. She argued that the existing property banding system is severely outdated and no longer reflects residents’ actual wealth levels or current property values. The union is calling for tax reforms that would require owners of higher-value properties to contribute more, creating what it sees as a fairer distribution of the tax burden. In addition, GMB has proposed reforms to the Business Rates system, allowing local authorities to retain a greater share of business tax revenues to support the regeneration of struggling high streets and local economies across the country. Harrison also questioned the practice of local authorities pursuing millions of residents through the courts simply to maintain balanced budgets: “Cash-strapped councils are being forced to take 1.5 million people to court just to keep their finances afloat. That should not be considered a normal way of operating.” In recent years, a number of local councils across the UK have declared financial crises or effectively entered bankruptcy proceedings by issuing a Section 114 Notice, highlighting the severe pressures facing local government finances. As living costs continue to rise, households' ability to pay declines, and funding gaps within local government budgets widen, council tax arrears are becoming an increasingly significant social and fiscal challenge in the UK. Analysts note that the fact that more than 1.5 million people have been drawn into legal proceedings over council tax debts not only reflects growing financial pressures on households, but also exposes long-standing structural weaknesses in the UK's local government funding model. Debate over council tax reform, central government funding, and the future reconstruction of local government finances is therefore expected to intensify in the years ahead. Read more... Why TB Accountants? Professional Assurance: Our team includes ACA members and ACCA-certified professionals, delivering services to the highest industry standards. Responsive Service: We respond to your inquiries within 24 hours, ensuring efficient communication across time zones. Multilingual Support: Services available in English, Mandarin, Cantonese, Japanese, French, German, Spanish, Italian, Turkish, and more. Trusted by Clients Worldwide: Consistently praised by global clients for proactive, professional, and reliable accounting and tax 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@tbagroup.uk 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 many years, buy-to-let property has been viewed as a reliable way to secure steady income and achieve long-term wealth growth. However, the landscape has since shifted. While rents across the country continue to rise, changing tax policies and increasing costs have made it harder for landlords to translate high turnover into high profit. Furthermore, the end of fixed-term tenancies and the abolition of 'no-fault evictions' have added layers of complexity to the sector. For both resident and overseas landlords, the most critical variables currently at play are the shifting tax and regulatory environments. Rising Rents – Not Always Rising Returns On the surface, rental income appears robust. In December 2025, the average monthly rent reached £1,368, a 4% increase year-on-year. However, this growth varies significantly by region. For instance, in the year to December 2025, rents in the North East rose by 7.9%, while London saw a more modest increase of 2.1%. Property prices are equally bifurcated. Generally, areas with the highest rents also command the highest purchase prices, which often results in lower rental yields (the ratio of annual rent to property value). Consequently, high rental income does not automatically guarantee a superior return on investment. A Complex Regulatory and Tax Landscape Landlords are facing pressure from two sides. Firstly, the Renters' Rights Act, which came into force last month, has strengthened tenant security. While designed to protect renters, it has caused some anxiety among landlords, leading to concerns about more stringent vetting processes. Secondly, the implementation of Making Tax Digital (MTD) for Income Tax and a series of rate changes are significantly impacting tax liabilities. Mortgage Interest Tax Relief Since April 2020, landlords have been unable to deduct mortgage expenses from their rental income to reduce their tax bill. Instead, the system provides a tax credit equivalent to 20% of mortgage interest payments. This means that while you can no longer reduce your taxable income directly, you can lower your final tax liability through this credit. For example, if a landlord receives £950 in monthly rent (£11,400 annually) and pays £600 in monthly mortgage interest (£7,200 annually), they are taxed on the full £11,400. Under current rules, they receive a tax credit of £1,440 (20% of £7,200). Ultimately, a basic-rate taxpayer would pay £840 in tax, while a higher-rate taxpayer would face a bill of £3,120. This policy was phased in between 2017 and 2020 and has been particularly disadvantageous for higher-rate taxpayers, who previously benefitted from up to 40% relief. New Adjustments from April 2027 From 6 April 2027, the government is set to increase tax rates on property income. The basic rate will rise to 22%, the higher rate to 42%, and the additional rate to 47%. To align with the new basic rate, the mortgage interest tax credit will also increase to 22%. This adjustment means the tax structure is evolving again, forcing landlords to re-evaluate their returns. This has prompted many to consider either selling their portfolios or transferring their assets into a limited company structure to optimise their tax position. Is holding property through a limited company more beneficial? The way a property is held (either personally or through a company) directly impacts tax efficiency. In theory, if a landlord operates through a limited company, they can deduct mortgage interest as a business expense before calculating profit, effectively retaining the advantages of the old system. If held personally, rental profits are treated as personal income and taxed at 20%, 40%, or 45% (rising to 22%, 42%, and 47% in 2027). In contrast, landlords using a limited company pay Corporation Tax, currently ranging from 19% to 25%. This advantage has led to a surge in 'incorporation'; by 2025, there were over 440,000 buy-to-let companies in operation, a nearly fivefold increase since 2016. However, a company structure is not a universal fix and may not suit everyone. Firstly, commercial lending rates for companies are often higher than personal mortgage rates, which can offset tax savings. Secondly, transferring personally owned property into a company triggers Stamp Duty Land Tax (SDLT), which is a significant upfront cost. Furthermore, running a company adds administrative complexity. Landlords must file company accounts and pay Corporation Tax. If you wish to use the rental profit for personal spending, you must extract it as dividends. While dividend tax rates are generally lower than income tax, they have also risen: as of 2026, the ordinary rate is 10.75% and the upper rate is 35.75%. Additionally, the freezing of Income Tax thresholds until 2031 may push more landlords into higher tax brackets. Rising costs of buying and selling Beyond ongoing taxes, transaction costs are climbing. Since October 2024, the Stamp Duty surcharge on additional properties increased from 3% to 5%, raising the barrier to entry. When selling, landlords must also account for Capital Gains Tax (CGT): Basic-rate taxpayers: 18% Higher/Additional-rate taxpayers: 24% The annual exempt amount remains low at £3,000 (£1,500 for trusts). Market volatility can also impact the timing of a sale, potentially restricting liquidity. Consequently, the decision to invest in or retain a buy-to-let property is no longer a simple one. Investors must carefully weigh their tax status, financing options, and risk appetite. The View from TB Accountants The shift in mortgage interest tax policy has fundamentally altered the financial landscape for landlords, particularly those in higher tax brackets. Under the new regime, deciding whether to incorporate, how to structure financing, and how to balance tax vs. operational costs are paramount. Before making any significant changes, it is essential to conduct a full financial assessment and seek professional advice to ensure your investment remains viable in this changing environment. Why TB Accountants? Professional Assurance: Our team includes ACA members and ACCA-certified professionals, delivering services to the highest industry standards. Responsive Service: We respond to your inquiries within 24 hours, ensuring efficient communication across time zones. Multilingual Support: Services available in English, Mandarin, Cantonese, Japanese, French, German, Spanish, Italian, Turkish, and more. Trusted by Clients Worldwide: Consistently praised by global clients for proactive, professional, and reliable accounting and tax 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@tbagroup.uk 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.