In its Autumn 2025 Budget, the government announced a series of important reforms to the Enterprise Management Incentive (EMI) scheme.  This is the most positive adjustment to the EMI system in recent years, not only significantly expanding its scope of application but also substantially reducing compliance and administrative burdens. For start-ups, scale-ups, and companies planning to incentivise core employees over the long term, this is undoubtedly a major boon. Today, we will introduce this equity incentive tool in detail, along with its tax advantages and common risks. What is the EMI equity incentive scheme? EMI is an employee equity incentive system specifically designed for eligible small, medium, and growing enterprises in the UK.  Through an EMI scheme, a company can grant share options to employees or directors, allowing them to purchase company shares at a pre-agreed price at a specific time in the future (such as company exit, sale, or when options vest). However, it’s important to note: EMI options do not confer dividend rights or voting rights. Returns are usually realised when the shares are sold (e.g., company acquisition, secondary market sale). Because of its high flexibility and low tax burden, EMI has consistently been one of the most commonly used incentive methods for UK start-ups and high-growth companies. Enterprise Management Incentive (EMI) tax advantages The most attractive aspect of EMI is its significant tax advantages. Normally, when EMI options are granted and exercised at market value, no Income Tax or National Insurance Contributions burden arises. Employees only need to pay Capital Gains Tax on the uplift in value when they eventually sell the shares, at a rate of 24%. If the options are held for at least 24 months from the date of grant, employees can also apply for Business Asset Disposal Relief on the first £1 million of gains, which has a tax rate of 18% as of this month (April 2026). Although the tax rate has increased, EMI options overall still save about 29% in tax compared to non-EMI options, maintaining a clear advantage within the UK equity incentive framework. For employers, provided the conditions are met, the company can enjoy Corporation Tax deductions when employees realise their gains, and save on the corresponding employer National Insurance costs. Furthermore, the market value of the shares corresponding to the options can be pre-agreed with HM Revenue & Customs prior to the grant, significantly increasing tax certainty. EMI also has clear limits regarding allowances and timeframes. A single employee can be granted options up to the value of £250,000 within any continuous three-year period, whilst the total option limit for the entire company or group under the EMI scheme is £6 million. Options can be exercised up to 15 years after the grant date. Although options can be granted below market value or even at nil cost, any discount may result in additional tax consequences upon exercise; therefore, careful consideration is required when designing the scheme. Which companies can set up an EMI scheme? Following the Budget, adjustments were made to the EMI rules.  Companies or groups meeting the following conditions can, in principle, use the EMI scheme: Asset and size requirements  Group total assets must not exceed £120 million (effective as of this month, April 2026; previously capped at £30 million). The number of full-time equivalent employees must be fewer than 500 (effective as of this month, April 2026; previously capped at 250). Business nature requirements  The company must engage in a qualifying trade. Non-qualifying trades include leasing, agriculture, financial activities, and property development. Company structure requirements  The company must remain independent and cannot be controlled by another company, which means private equity holding structures often do not qualify. Under a group structure, EMI options must be granted over shares in the parent company, whilst at least one subsidiary engaged in a qualifying trade must be actively operating in the UK. It is worth noting that overseas headquarters can also grant EMI options to their UK employees provided relevant conditions are met; for example, a US holding company can, in principle, grant EMI options over its stock to UK employees. Meanwhile, as of this month, the overall EMI grant limit has increased from £3 million to £6 million.  From April 2027, the mandatory notification requirement following the grant of EMI options will be abolished, reducing compliance risks and administrative costs. This means that many companies that were previously forced to exit the EMI scheme because they grew too quickly are now eligible once again. Who can receive EMI options? Although EMI is excellent, it is not open to everyone. Employees are required to work at least 25 hours per week, or dedicate more than 75% of their working time to the company or group. Self-employed individuals, workers hired through an 'employer of record', and individuals who already hold more than 30% of the company's shares prior to the grant cannot join the EMI scheme.  It should be particularly noted that if employees are seconded overseas long-term or have high international mobility, their EMI options generally cannot enjoy the same tax treatment abroad, and the relevant tax implications must be assessed in advance. EMI reporting and compliance Regarding compliance, all EMI schemes must be registered with HM Revenue & Customs and reported by 6 July following the end of the tax year in which the grant was made; otherwise, the options will immediately lose their EMI status.  Although this notification obligation will be abolished from April 2027, companies must still pay close attention to relevant reporting and annual return obligations before then to avoid significant tax losses due to procedural issues. The view from TB Accountants  Although EMI offers generous tax reliefs, its eligibility is not set in stone.  If a company becomes controlled by another company, ceases to engage in a qualifying trade, or if an employee leaves or their working hours no longer meet the threshold, these can all constitute disqualifying events for EMI.  Furthermore, making inappropriate or non-commercial material changes to the option terms may also affect the EMI tax treatment. Therefore, both companies and employees should continuously review EMI arrangements, especially during financing, mergers and acquisitions, or restructuring phases. Overall, even against the backdrop of rising general tax rates, EMI remains one of the most flexible and tax-efficient employee incentive tools in the UK, particularly suitable for start-ups and scale-ups hoping to retain core talent with equity rather than high cash costs. Please note that UK corporate registration and filing fees increased in February this year, and late tax penalties have also risen sharply. If you intend to register a UK company, we recommend making arrangements as early as possible to effectively manage compliance costs. 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.

2.2m pensioners will pay tax on winter fuel payments Under a controversial new policy on Winter Fuel Payments, state pension recipients with total annual income exceeding £35,000 will have an average of £200 in payments automatically clawed back through the Pay As You Earn (PAYE) tax code system. Those not using PAYE will need to declare and repay the amount through their Self Assessment tax return.   Data from HM Revenue & Customs (HMRC) shows that around one-fifth of retirees have incomes above this threshold. Although the government insists that “Winter Fuel Payments themselves are not directly taxed,” in practice the full amount will be recovered through the tax system, effectively functioning as an income tax charge.   Official HMRC figures indicate that the new policy will affect approximately 2.2 million recipients aged 65 and over with incomes above £35,000.   Among them:   Around 1.3 million are PAYE-only taxpayers (many of whom still have employment income). The system will automatically recover the £200 payment by adjusting their tax code; About 900,000 will need to file returns themselves (including 800,000 who also have PAYE income), declaring the amount through annual Self Assessment or the Making Tax Digital (MTD) system; For the self-employed (around 100,000 individuals), the tax treatment will be more complex and may require professional advice.   HMRC stated that the amounts will be recovered through the tax system in the following tax year. For PAYE taxpayers, this will be treated as an “implicit tax burden,” equivalent to about £17 per month in the first year. By 2027–28, this could rise to around £33 per year due to the recovery of two years’ worth of payments, before returning to a standard annual adjustment thereafter.   For those filing under Self Assessment, HMRC will typically pre-populate the payable amount in the tax return system. If it is not automatically included, taxpayers will need to enter it manually.   Before the policy change (in the 2023–24 tax year), around 11.6 million retirees received Winter Fuel Payments, which were then a universal benefit.   Under the new policy introduced by Chancellor Rachel Reeves, the system will shift to a “pay first, reclaim later” model: everyone will still receive the payment upfront, but only those with annual incomes below £35,000 will ultimately be allowed to keep it.   HMRC has acknowledged that the new mechanism may cause confusion. It plans to issue clearer guidance, improve communication, and pre-fill relevant data in tax returns to reduce errors. At the same time, it warns that some taxpayers will still need to check and report the information themselves, as failure to do so could affect tax compliance and potentially lead to further issues. Read more... HMRC clarifies MTD exemption rules and year one waiver   HM Revenue & Customs (HMRC) has recently updated its guidance on Making Tax Digital (MTD) for Income Tax, aiming to clarify previous confusion around certain exemption rules—particularly for taxpayers claiming averaging relief in the first year of implementation.   Clearer Scope of Exemptions   The updated guidance sets out more clearly the categories of taxpayers who may qualify for exemptions, including: Individuals who are physically or mentally unable to provide financial information to HMRC; Those who do not have a National Insurance (NI) number; Non-UK resident taxpayers who use the SA109 supplementary page when filing their tax returns.   The guidance also includes new references to the 2025–26 Self Assessment tax return, partnerships, supplementary pages used to claim averaging relief, and permanent exemptions for members of Lloyd’s.   First-Year Automatic Exemption Limited to One Year   HMRC confirms that some taxpayers will receive an automatic exemption in the first year of MTD implementation. However, this exemption applies for one year only.   From the 2027–28 tax year onward, these individuals will be required to comply fully with MTD rules, when the income threshold will be reduced to £30,000.   Cases Where Quarterly Reporting Is Not Required in Year One   For the first year of MTD (2026–27 tax year), HMRC states that taxpayers will not be required to submit quarterly updates if, in their 2024–25 Self Assessment tax return, they meet any of the following conditions:   Claimed averaging relief using the SA103 (individual) or SA104 (partnership) supplementary pages (applicable to farmers, market gardeners, or individuals producing literary or artistic works); Claimed qualifying care relief (e.g. foster carers or kinship carers); Included the SA107 supplementary page to report income from trusts or estates; Included the SA109 supplementary page to report residence status and foreign income, and were non-UK residents.   Taxpayers meeting these conditions only need to complete their 2025–26 Self Assessment tax return as usual by 31 January 2027, with no further action required. HMRC emphasized: “If you qualify for these exemptions, you do not need to contact or apply to HMRC.”   Application Required for Non-Automatic Exemptions   Taxpayers who are not automatically exempt but believe they qualify must apply directly to HMRC, either by phone or in writing. HMRC aims to respond within 28 calendar days, although processing may take longer if additional information is required.   Phased Rollout and Application Timeline   As MTD expands to include more lower-income landlords, sole traders, and self-employed individuals, HMRC has outlined a phased exemption application schedule: Wave one taxpayers: Can apply now but must do so before the key quarterly deadline of 7 August 2026; Failure to secure approval by this date will result in mandatory inclusion in MTD for the 2026–27 tax year; Wave two (income above £30,000): Effective from 6 April 2027, with applications opening from summer 2026; Wave three (income above £20,000): Expected to open for applications from summer 2027.   Penalties Still Apply Under Existing Rules   In a separate update, HMRC confirmed that even if taxpayers benefit from a one-year MTD exemption, existing penalties for late filing and late payment under the Self Assessment system will still apply.   Although there will be no penalties specifically for MTD non-compliance in the first year, other penalties remain in force. HMRC also stressed that if an exemption application or appeal is unsuccessful, taxpayers must continue to maintain proper records and supporting documents as required under Self Assessment rules. Read more... UK economy showed surprise 0.5% growth   The latest official data from the UK’s Office for National Statistics (ONS) shows that the British economy performed better than expected ahead of escalating tensions in the Middle East, recording solid growth.   In the three months to February, the UK’s gross domestic product (GDP) grew by 0.5%, with the economy also expanding by 0.5% in February alone. GDP is the key measure of a country’s economic size and total output.   However, revised figures released by the ONS last week indicated that there had been no economic growth in the three months to December.   Services Sector Drives Growth   ONS Chief Economist Grant Fitzner said the February expansion was largely driven by growth in the services sector, which accounts for the largest share of the UK economy. In particular, wholesale trade, market research, hospitality, and publishing performed strongly in the three months to February, making significant contributions to overall economic growth.   Government Welcomes Data   Chief Secretary to the Treasury James Murray welcomed the figures, stating: “Growth only happens when the economy is on a solid footing. In a changing global environment, our plan to restore stability, boost investment, and deliver reform will help build a stronger and more resilient Britain.”   He also noted that at the International Monetary Fund meetings in Washington, the Chancellor outlined plans to further enhance the UK’s competitiveness, reduce costs for households and businesses, and cut energy bills for businesses by up to 25%.   Growth Exceeds Forecasts but Remains Modest   Economists surveyed by Reuters had forecast growth of just 0.1% for February, making the actual figures significantly stronger than expected. Despite this, overall GDP growth remains relatively modest, even as the government continues to prioritise economic expansion.   Outlook Clouded by Global Risks   More concerning is the sustainability of this growth. Although the current Middle East conflict has entered a temporary two-week ceasefire, markets widely expect the situation to have a greater negative impact on the UK economy than on other major economies.   With rising external uncertainties and ongoing weakness in certain domestic sectors, the UK’s economic outlook remains challenging in the months 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 .

Artificial Intelligence is reshaping the world at an unprecedented pace.  For the United Kingdom, this technological revolution is bringing more than just efficiency and opportunity; it is triggering a significant seismic shift in employment.  Multiple recent studies point to a stark reality: among major developed economies, the UK is becoming one of the nations most heavily impacted by AI, with the number of jobs lost to the technology already exceeding those newly created by it. AI improves efficiency but reduces jobs According to research from the investment bank Morgan Stanley, the net reduction rate of employment due to AI in the UK reached 8% over the past 12 months.  This figure is double the international average and surpasses other major economies, including the United States, Japan, Germany, and Australia. Ironically, this is not because British companies have failed to use AI effectively; quite the opposite. The study shows that with the help of AI, the average productivity of UK firms has increased by 11.5%. Businesses generally believe that AI has significantly improved efficiency in areas such as customer service, routine task processing, and data analysis.  However, this efficiency has not translated into more roles. Instead, it has evolved into 'doing more work with fewer people', leading to a net decrease in available positions. UK becomes the nation most affected by AI The reason the UK is more susceptible to the impact of AI is closely linked to costs, tax burdens, and industrial structure. Since April 2025, the rise in the National Living Wage and the increase in employer National Insurance contributions have made companies increasingly cautious about hiring. The emergence of AI provides a rational justification for 'no longer recruiting'.  Furthermore, the UK – and London in particular – is highly dependent on the financial and creative industries, as well as white-collar sectors such as law, accounting, consultancy, and marketing.  These are precisely the fields that AI is invading and restructuring first. The Mayor of London, Sadiq Khan, has previously warned that London is at the sharpest edge of this transformation. He noted that AI could destroy large-scale employment and exacerbate social inequality, placing the city under unprecedented workplace pressure. It is not 'low-skilled work' that disappears first The reality is currently overturning the traditional perception that AI primarily threatens low-skilled roles. Research from the job platform Adzuna shows that since the debut of ChatGPT in 2022, the number of apprenticeship, entry-level, and graduate positions in the UK has decreased by nearly one-third.  Morgan Stanley’s survey also pointed out that companies are most likely to cut early-career roles requiring two to five years of experience. This means many young people are seeing their roles disappear before they even have the chance to accumulate experience, leading to widespread anxiety about the future among the young workforce. Official data from the Office for National Statistics (ONS) reveals that in the three months to October 2025, the UK unemployment rate rose to 5.1%, significantly higher than the 4.3% recorded during the same period the previous year. Within this, the number of unemployed people aged 18 to 24 increased by 85,000, representing the largest increase since November 2022. Historically, this is not the first time workers have been 'replaced by machines'. In the nineteenth century, the appearance of automated power looms led factory owners to dismiss skilled weavers in favour of cheaper labour to operate the machines. At that time, because operating the machinery was relatively simple, highly skilled artisans were replaced by lower-skilled workers. Overall, rather than AI 'occupying' low-skilled jobs, it is more accurate to say that 'AI is restructuring the nature of roles'. In a UK job market where hiring costs are rising, employers will increasingly prefer to hire someone who can flexibly use digital tools to improve efficiency rather than someone requiring long-term, repeated investment. AI inspires entrepreneurial dreams While finding a traditional job is becoming more difficult, people are not standing still. From another perspective, AI is stimulating an impulse towards entrepreneurship. Surveys indicate that over half of the UK workforce has considered starting their own business. Among the younger demographic aged 16 to 34, approximately one-third believe that AI has significantly lowered the barrier to entry for individual entrepreneurship. It allows a 'one person plus a set of tools' model to complete work that previously required team collaboration, giving them the ability and confidence to launch their own ventures. However, insufficient funding, the fear of failure, and uncertainty in the economic environment remain major practical obstacles, limiting the full release of this entrepreneurial potential. AI itself is not the problem; the true challenge lies in whether society is prepared to bear the costs of transition and whether it provides a sufficient buffer and path forward for those who are displaced. Regarding the employment shock caused by AI, OpenAI CEO Sam Altman has proposed buffer solutions such as Universal Basic Income, though he also emphasised that this cannot solve every problem. JPMorgan Chase CEO Jamie Dimon warned that if governments and businesses do not proactively intervene to help workers replaced by technology, social unrest will no longer be merely a theoretical risk. What the UK is experiencing may simply be an early sample of what is to come.  When AI becomes the new watershed, the issue we face is no longer just one of technological progress, but a long-term proposition concerning employment, fairness, and social structure. 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 visa fees to increase by up to £222 A series of stricter new regulations introduced by the UK Home Office have now come into effect, alongside increases in a range of visa fees. From April 8, visa fees for traveling to, living in, studying, and working in the UK have risen by as much as £222.   This adjustment is seen as an important step in the UK’s tightening of immigration policies. Home Secretary Mahmood stated that due to a surge in asylum applications, restrictions have been imposed on student visas from countries including Afghanistan, Cameroon, Myanmar, and Sudan.   Comprehensive Increase in Visa Fees   Under the new rules, visa fees across various categories have generally increased, with rises of up to around 7%:   Short-term visit visa (up to 6 months): increased by £8 to £135 Long-term visit visas: 2-year visa: increased to £506 5-year visa: increased to £903 10-year visa: increased to £1,128 Naturalisation (citizenship) application fee: increased from £1,605 to £1,709 Settlement route visas (leading to permanent residency): Standard application has exceeded £2,000 for the first time, rising to £2,064 Adult dependent relative visa increased by £222 to £3,635 Refugee family reunion visa increased to £452   Work and Study Visas Also Affected   Skilled Worker visa (up to 3 years): increased from £769 to £819 Long-term work visas: increased at similar rates Student visa: increased by £34 to £558 Graduate Route visa: increased from £880 to £937   These increases apply to both main applicants and their dependents.   Passport Fees Also Increased   In addition to visa fees, UK passport fees have also risen:   Adult online application: from £94.50 to £102 Child passport: from £61.50 to £66.50   Additional Tightening Measures   Beyond fee increases, the new policies also include several stricter measures, such as:   Adjustments to refugee status determination rules Offering up to £10,000 to unsuccessful asylum seekers to encourage voluntary departure Removing access to taxpayer-funded accommodation for individuals working illegally   Analysts note that the combination of higher fees and tighter immigration policies is likely to raise the barrier to entry into the UK. This will place direct financial pressure on international students, skilled workers, and family reunification applicants, while also reflecting the government’s clear stance on controlling immigration levels. Read more... New EU entry/exit system rolls out by 10 April   The European Union has fully launched its new Entry/Exit System (EES) on April 10. UK travellers heading to Europe for spring and summer holidays will now face new border control procedures.   Entry/Exit System (EES)   The EES began phased implementation on October 12, 2025, and is scheduled to be fully operational across all Schengen Area border crossings on April 10. The system replaces traditional passport stamping and applies to all non-EU citizens traveling to EU countries for short stays (i.e. no more than 90 days within any 180-day period), including UK travellers. The system will cover 25 EU countries in the Schengen Area, as well as 4 non-EU Schengen countries—making a total of 29 countries, including France, Germany, Spain, Italy, the Netherlands, Switzerland, and Norway. Ireland and Cyprus are not included and will continue using manual passport stamping.   Under the new rules, the system will record travellers’ names, travel document details, biometric data (fingerprints and facial images), as well as the time and place of entry and exit. Children under 12 are not required to provide fingerprints but must still undergo facial scanning.   When entering participating countries for the first time, travellers must complete registration at automated terminals, usually upon arrival at airports or ports.   However, travellers departing via the Port of Dover, the Eurotunnel at Folkestone, or London St Pancras International station will need to complete these checks before leaving the UK. This means passengers may be required to disembark at Dover or the Eurotunnel terminal to register.   Implementation Challenges   In reality, the rollout has not gone smoothly. Travel experts describe the digital border system as “still in chaos.” Some countries, including France, are “far from ready,” and there are known issues with connecting to the central database—making it unrealistic to fully eliminate manual passport stamping by April 10.   Differences in implementation across member states have further complicated matters. For example, Luxembourg is only piloting the system at a single airport, while countries like France, Greece, Poland, and Spain—each with multiple airports, ports, and land borders—are progressing at very different speeds.   ETIAS May Be Delayed Again   At the same time, the rollout of the European Travel Information and Authorisation System (ETIAS), originally planned to complement EES, may face further delays. Although the EU has repeatedly pledged to move forward, industry insiders widely believe the system is “highly unlikely” to be operational before the end of this year. Read more... Renters’ Rights Act brings big changes to UK property market   The UK’s Renters’ Rights Act, set to be implemented in May, is widely regarded as one of the most significant reforms to the residential property market in decades. While the new rules aim to enhance tenant security and protections, they have also raised concerns that landlords—feeling anxious—may impose stricter conditions on tenants, potentially making it harder to rent.   Under the new legislation, tenants will gain several important rights, including:   The ability to challenge “unreasonable” rent increases through an arbitration body A ban on landlords or agents inflating rents through bidding wars The abolition of “Section 21” evictions, meaning landlords can no longer evict tenants without providing a reason   Among these, the removal of Section 21 is seen as one of the most impactful changes.   Under the new rules, from May onward, landlords will only be able to evict tenants if they can provide valid grounds—such as rent arrears, anti-social behaviour, or a need to move into the property themselves. This change has led to concerns among landlords that dealing with “problem tenants” will become more difficult and costly.   Landlord Action, a firm specializing in housing law, reported a 62% year-on-year increase in eviction instructions this year—equivalent to “hundreds” of additional notices. It is expected that once the new law takes effect, more cases will be referred to property tribunals or courts, further increasing pressure on the legal system.   In addition, under the Act, landlords may face fines of up to £7,000 if they fail to provide required information documents to tenants. They may also face additional penalties for not properly addressing issues such as mould or electrical safety in rental properties.   Although the reforms are intended to protect tenants, some industry experts believe that tenants may ultimately bear the greatest impact.   Industry insiders note that landlords may respond by raising rents to offset increased risks and costs. Many landlords are also choosing to sell, redevelop, or adjust rental terms in advance—seeking greater “security” by imposing stricter and more specific conditions, such as longer lease terms, higher income requirements for tenants, and more rigorous guarantor checks. 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 .

With adjustments to tax rules, the pension system is undergoing significant changes.  According to the latest policies, the 'salary sacrifice' mechanism for pensions is set to be substantially curtailed by 2028. However, in stark contrast to these institutional shifts, most British small and medium-sized enterprises (SMEs) remain at the baseline for employee pension investment—contributing only the statutory minimum of 3% into auto-enrolment pension accounts. While many business owners still view pensions merely as a compliance obligation, workplace pensions have, in fact, become a critical component of employee wellbeing and retention strategies. Whether you are an employee navigating the job market, an established business owner, or an aspiring entrepreneur, a thorough understanding of the workplace pension system is an indispensable part of long-term career planning and corporate management. The workplace pension auto-enrolment system The fundamental goal of a pension system is not necessarily to ensure one 'earns the same' after retirement, but rather to prevent a sharp decline in living standards once work ceases. Consequently, pension policy is designed with a basic objective: retirement income should reach approximately two-thirds of pre-retirement income.  The reason this is not 100% is that retirees generally no longer bear 'working-age costs' such as National Insurance (NI) contributions, commuting expenses, childcare costs, or mortgages, which for many are either paid off or significantly reduced. The issue lies in the fact that the State Pension only covers a small portion of this.  Estimates suggest the New State Pension only replaces slightly less than one-third of an average worker's salary. This means that to reach the 'two-thirds' goal, most people must rely on workplace pensions paid during their working lives. This is precisely the original intention behind the 'auto-enrolment' system. When designing the system, authorities made a key assumption: the 'first portion' of income is covered by the State Pension, and the workplace pension only needs to cover the 'subsequent stretch'. Therefore, mandatory workplace pension contributions do not start from the first pound of salary; instead, they apply only to so-called 'qualifying earnings'. Currently, this threshold starts at £6,240 per annum with an upper limit of £50,270. Only income falling within this band is subject to contributions. This forms the well-known '8% minimum contribution ratio': the employee contributes 5% (approximately 4% after tax relief), and the employer contributes 3%. In reality, however, this system is somewhat inequitable for low earners. Part-time or low-paid staff often have only a small fraction of their income subject to contributions, whereas middle-to-high earners have a much larger portion of their salary included. The result is that the same system inadvertently widens the gap in pension accumulation. Joining and opting out of a workplace pension An employer must automatically enrol an employee into a pension scheme and make contributions if all the following criteria are met: They are classified as a 'worker'. They are aged between 22 and the State Pension age. They earn at least £10,000 per year. They normally work in the UK. If these conditions are not met, or if any of the following circumstances apply, the employer usually does not need to automatically enrol the individual: The individual has given or received notice that they are leaving their job The individual is a partner in a Limited Liability Partnership (LLP) The individual is a 'company director' without an employment contract, provided the company employs at least one other person The individual holds a Lifetime Allowance Protection certificate (e.g. from HMRC) The individual is from an EU member state and is part of an EU cross-border pension scheme Although auto-enrolment is mandatory, employers can delay the start date of a pension scheme by up to three months. Employees also have the right to opt out.  Typically, there is a one-month 'cooling-off period' after joining where one can choose to leave and receive a refund of any contributions made. Those who opt out can rejoin at any time; however, if they do leave, the 3% employer contribution will also cease. Why both employers and employees should value pensions If you are currently unsure of the value of your pension investments or the amount you might receive upon retirement, a specific data point might pique your interest.  The Pensions and Lifetime Savings Association (PLSA) estimates that a single person needs an annual pension income of £10,900 to achieve a 'minimum standard of living', while a 'moderate' lifestyle requires £20,800. You might use these figures to roughly estimate your future fixed retirement income. Furthermore, a study based on 2,000 UK employees and 500 SMEs found that 90% of workers stated that a workplace pension influences their decision to stay with their current company or move to a new role. Small businesses appear slightly more 'frugal' regarding pension contributions. Over half (54%) of SMEs pay only the statutory minimum, and only one-seventh (14%) offer an employer-matching scheme. Meanwhile, nearly half of employees (47%) stated that their personal contribution rates are also set at the legal minimum. Crucially, over half (53%) of pension savers indicated they would be willing to increase their personal contribution rate to an average of 12% of their salary if their employer agreed to match it. Therefore, for employers, a flexible workplace pension policy may be a powerful tool for attracting and retaining talent. Some advice from TB Accountants  For employees, the employer's contribution to a pension is essentially a 'hidden pay rise'.  It does not directly affect current take-home pay, yet it significantly bolsters future financial security. Consequently, where circumstances allow, proactively communicating with employers about contribution rates and striving for higher matching funds is often a highly cost-effective method of long-term planning. The age at which one can access a workplace pension usually aligns with the State Pension age (which may rise in the future). Withdrawal methods are flexible, with common options including: Lump sum withdrawal: Choosing to take part or all of the pension savings at once; 25% is tax-free, with the remainder taxed as income Purchasing an annuity: Using pension savings to buy an annuity, providing a guaranteed fixed income for life. One can also explore investment options within other corporate pension schemes to seek higher returns 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 .

National living wage rate rises 4.1% From April 1, the UK’s minimum wage has been increased at a rate above inflation. The National Living Wage for workers aged 21 and over has risen from £12.21 to £12.71 per hour. Meanwhile, from April 6, statutory sick pay (SSP) will be payable from the first day of employment.   Under the new rules, the National Minimum Wage for those aged 18 to 20 has increased by 8.5%, rising from £10 to £10.85 per hour, further narrowing the gap with the National Living Wage.   The changes mean that a full-time worker earning the minimum wage will see their annual income increase by around £1,500. This marks further progress in the UK government’s plan to phase out age-based wage bands for 18- to 20-year-olds and move toward a unified adult wage rate.   For full-time employees on the National Living Wage, annual earnings will rise by approximately £900. Those on the National Minimum Wage will see an increase of about £1,500, bringing total annual earnings to £24,784.50 based on a 37.5-hour work week. According to data from the UK Department for Education, this level is slightly below the median graduate salary of £26,500 and close to the income threshold at which student loan repayments begin.   Accounting and advisory firm BDO noted that while the cost increases for businesses may not be as steep as those seen in April 2025, the wage hike will still pose challenges—particularly for sectors such as retail and hospitality, which employ large numbers of younger workers. Companies required to pay the Construction Industry Training Board (CITB) levy may also face higher contributions unless their total payroll, including subcontractors, falls below £150,000.   At the same time, significant reforms to the Statutory Sick Pay system will take effect from April 6. The new rules remove both the minimum earnings threshold and the waiting period, meaning employees will be eligible for sick pay from the first day of illness, rather than from the fourth day as previously required. In addition, paternity leave and unpaid parental leave will become day-one rights.   In the 2026–27 tax year, all eligible employees—regardless of income—will qualify for SSP from the first day of sickness. Payments will be set at 80% of average weekly earnings or £123.25 per week, whichever is lower. The government estimates that this policy will increase employer costs by around £420 million annually.   These reforms will also coincide with the launch of a new regulator, the Fair Work Agency, on April 7.   The agency will consolidate several existing labour enforcement bodies, including the Gangmasters and Labour Abuse Authority, the Director of Labour Market Enforcement, the Employment Agency Standards Inspectorate, and HMRC’s minimum wage enforcement team. It will have broad powers to inspect workplaces, impose penalties, initiate civil proceedings, and recover costs from employers. Read more... King’s Speech set for 13 May for legislative plans   The King’s Speech is scheduled to take place on May 13. This will be King Charles III’s third such address and will mark the formal opening of a new parliamentary session.   On the day, the King will visit Parliament and deliver the speech in the House of Lords, setting out the government’s legislative programme for the next 12 months. The address will outline proposed new bills as well as ongoing legislation, providing a clear indication of policy priorities for the upcoming parliamentary year.   According to earlier reports, the government has abandoned plans for an Audit Reform Bill and will instead focus on reducing regulatory burdens on businesses and cutting red tape, rather than introducing additional constraints.   UK parliamentary sessions typically last around 12 months, although they may be extended following a general election.   The date for the prorogation of Parliament—marking the end of the current session—has not yet been announced. Any bills that fail to complete all required stages in both the House of Commons and the House of Lords before the session ends will not become law. Unless they are formally carried over into the next session, such bills must restart the legislative process from the beginning.   It is understood that more than 50 bills will be introduced during the upcoming session. Key areas of focus include strengthening renters’ rights, reforming planning laws to accelerate housebuilding, bringing railways into public ownership, and enhancing workers’ rights. Read more... All the bills going up in April as households face over £200 in extra costs   As April 2026 arrives, the UK enters a new financial year, bringing with it the annual wave of rising household bills. This period is often referred to by financial experts as “Awful April,” and against the backdrop of heightened tensions in the Middle East—which may drive up energy prices—this year’s increases feel particularly sensitive. Data shows that the average UK household’s essential expenses are set to rise by £214 in 2026, further intensifying cost-of-living pressures.   Although benefits, the state pension, and the minimum wage are all set to increase in April—expected to benefit millions of households—official figures indicate that wage growth remains weak. Between November last year and January this year, wage growth recorded its slowest rate in five years. Around 62% of people in the UK are concerned that their current income will not be sufficient to cover rising expenses.   Council tax increases: average rise of £109 Most local authorities in England have announced a 4.99% increase in council tax, the maximum allowed without central government approval. Some areas have imposed even higher increases, with Shropshire, Worcestershire, and North Somerset seeing rises of up to 8.99%.   Water bills: average increase of around £32   Annual household water bills are set to rise by an average of about £33, exceeding the rate of inflation and continuing to fuel public dissatisfaction over sewage pollution issues. The largest increases are seen among customers of suppliers in the North West (around £57), as well as companies such as Southern Water.   TV licence fee: increase of £5.50 The TV licence fee will rise from £174.50 to £180. This fee is legally required for watching or recording live television broadcasts. Those aged over 75 who meet certain conditions may qualify for a free licence.   Broadband and mobile bills: average increase of £67 Most telecom providers will raise their monthly charges, resulting in an average annual increase of about £67.20. However, experts note that consumers may still reduce costs by switching plans or providers.There is some rare positive news on energy costs. The UK energy regulator, Ofgem, has announced that the energy price cap for April to June 2026 will fall to £1,641, a decrease of about 7%, equivalent to an average saving of £117.   However, due to potential energy cost increases driven by Middle East tensions, the price cap could rise sharply again from July—by nearly £300.   Overall, despite some increases in income and benefits, the simultaneous rise in multiple household bills means that UK households are likely to face significant financial pressure in the new financial year. 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 .

Back in December 2025, the government announced an increase in the inheritance tax tax-free allowance for Business Property Relief (BPR) from the original £1 million to £250,000.  As this allowance applies to both individuals and trustees, this policy change has immediately created new scope for thought regarding the planning of corporate shareholding structures.   Is it possible to fully utilise the £250,000 tax-free allowance for each person by splitting equity and introducing multiple shareholders, thereby achieving a better arrangement regarding Inheritance Tax (IHT)? From a tax perspective, this may be an important opportunity for businesses to achieve intergenerational succession and preserve family wealth.  However, from the perspective of corporate governance and operational stability, matters are far from being that simple. What is business property relief? The core function of Business Relief is to reduce the taxable value of a business or relevant assets when calculating Inheritance Tax.  Under the Inheritance Tax framework, any business ownership or share in a business is included in the total estate.  However, if conditions are met, a value reduction of 50% or 100% can be enjoyed.  These reliefs apply to both lifetime transfers and inheritance through testamentary arrangements. Through this mechanism, family businesses can avoid being forced to sell assets due to high Inheritance Tax during the succession process, thereby ensuring the continued operation of the business. Which assets qualify for 100% or 50% relief? According to UK Inheritance Tax regulations, different types of business assets are subject to different relief rates: Assets eligible for 100% BPR The business itself or an interest in the business (e.g. a share in a partnership); Shares in unlisted companies (private companies). Assets eligible for 50% BPR Controlling shares holding more than 50% of the voting rights in a listed company; Land, buildings, or machinery owned by the deceased and used in a business in which they were a participant or controller; Land, buildings, or machinery held by a trust where the business has the right to benefit and it is actually used for operations. It is particularly important to note that the relevant business or asset must have been held for at least two years prior to death to qualify for relief. This holding period requirement is an important prerequisite for auditing relief eligibility. Which situations do not qualify for relief? Business Property Relief does not apply to all companies or assets. The following situations generally do not qualify: Ineligible situations at the company level The company is mainly engaged in dealing in securities, stocks, land, or buildings; The company's main business is holding investments or earning investment income; The company is a non-profit organisation; The company is being sold and will no longer continue to operate after the sale (unless the estate mainly receives consideration in the form of shares in a successor company); The company is being liquidated, and the liquidation is not for the purpose of ensuring the continued operation of the business. Ineligible situations at the asset level Assets that simultaneously meet the conditions for Agricultural Property Relief (APR) (Business Property Relief cannot be claimed twice); Assets that were not mainly used for commercial purposes within the two years prior to death; Assets that are not necessary for the future operation of the business. However, if a part of an asset is used for business operations, that part may still qualify for relief.  For example, if one room in a building is used for a shop while other rooms are used as a private residence, the shop portion can enjoy Business Property Relief, while the residential portion does not qualify. As an executor or administrator of an estate, you can apply for Business Property Relief when valuing the estate. When applying, you must submit the IHT400 Inheritance Tax account along with Schedule IHT413 (Details of business or partnership interests and assets).  If the 50% relief applies, the calculation must be based on the market value of the business or asset. Assets for which relief can usually be claimed include real estate and buildings, shares in unlisted companies, and machinery used for business operations. Beyond tax optimisation: can the business operate steadily? For many family businesses, saving on Inheritance Tax is often a matter of whether the business can be passed on smoothly and avoid the forced sale of assets to pay tax.  Therefore, dispersing holdings through a multi-shareholder structure to amplify the BPR tax-free allowance seems logical. However, before making a decision on equity restructuring, business owners must first answer several fundamental questions: Can the daily operations of the company still make decisions efficiently? On key strategic matters, will multiple shareholders increase decision-making resistance? Does the founder still hold a majority stake to maintain control? If the founder still holds an absolute majority stake, a multi-shareholder structure usually does not pose an immediate obstacle to decision-making. However, an often-underestimated risk lies in the potential influence of minority shareholders. Underestimated power: the 'bargaining chip' of minority shareholders In private companies, minority shareholders are usually in a weak position. They cannot influence company decisions alone and often lack liquidity, making it difficult to exit by selling their shares.  Precisely for this reason, Section 994 of the UK Companies Act 2006 grants minority shareholders an important right: if they suffer 'unfair prejudice', they can bring a claim to court. Once the court determines that unfair prejudice does indeed exist, the most common remedy is to order other shareholders or the company to buy back their shares at 'fair value'.  On the surface, this seems like a reasonable exit mechanism. In reality, however, 'unfair prejudice' litigation itself often causes a significant impact on the business. The view from TB Accountants Overall, the new £250,000 Business Property Relief (BPR) allowance provides an important opportunity for some businesses to preserve value during intergenerational succession.  By reasonably allocating equity so that multiple entities can respectively utilise the tax-free allowance, it is indeed possible to significantly enhance tax efficiency. However, business owners must clearly recognise that tax optimisation is only one part of succession planning. What truly determines whether a business can endure across generations is a robust corporate governance system and healthy shareholder relationship management. Great enterprises are able to last because they have established strong and stable corporate ecosystems.  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 .

HMRC clarifies statutory sick pay changes for employers With the UK government implementing reforms to the Employment Rights Act from 6 April 2026, statutory sick pay (SSP) will undergo a major change: all eligible employees, regardless of income, will be entitled to sick pay from the first day of illness.   In response, HM Revenue & Customs (HMRC) has issued detailed guidance clarifying payment rules for employees spanning the old and new regulations, including long-term sickness cases. Under the new rules, SSP will be paid at 80% of the employee’s average weekly earnings (AWE) or a flat weekly rate of £123.25, whichever is lower. The measure is estimated to cost employers approximately £420 million per year.   HMRC noted that employees who started sick leave before 6 April 2026 and previously could not claim SSP due to earnings below the Lower Earnings Limit (LEL) may now receive payments starting from 6 April.   Key dates include:   On or after 22 September 2025: long-term sick employees will have their entitlement calculated from this date. On or before 21 September 2025: if sick leave continues uninterrupted until 5 April 2026, SSP entitlement will not start until at least eight weeks after returning to work.   For continuous or restarted sick leave, SSP payment days will be adjusted based on the duration of the absence:   Three days or fewer: only eligible days from 6 April onward are paid. Four days or more: SSP is paid from the first day of the restarted sick leave for all eligible days.   Once the new rules take effect, the previous waiting days will be replaced by “first-day entitlement”, meaning employees will no longer have to wait before receiving SSP, and waiting days prior to 6 April 2026 will not be paid.   Employers are advised by HMRC to:   Review current sick leave records and start dates to ensure compliance. Verify employee eligibility for SSP, considering any recent Employment and Support Allowance (ESA) claims. Update sick leave policies and notify employees of the changes. Ensure payroll systems are ready if using third-party payroll providers.   HR consultancy BrightHR commented: “Paying SSP from the first day may increase the number of short-term sick absences, as employees no longer fear lost income. It is estimated that after implementation, around 200,000 employees may take single-day sick leave, potentially costing employers at least £5.13 million.” Read more... UK inflation remains unchanged at 3% in February   According to the latest data from the UK Office for National Statistics (ONS), the annual inflation rate remained at 3% in February, unchanged from the previous month. Although inflation has fallen from a high of 11.1% in October 2022, prices themselves have not decreased—they are simply rising at a slower pace.   However, these official figures were recorded before the outbreak of the US-Israel-Iran conflict, at a time when petrol prices were at their lowest since June 2021. Since the conflict began, wholesale oil prices have surged, pushing up petrol and diesel pump prices.   Experts warn that this could drive up energy and other consumer costs, including leisure and food, as manufacturers and businesses pass on higher expenses to consumers. As a result, the previously expected drop in inflation this year may no longer occur.   Last week’s data also showed that wage growth in the UK is at its slowest rate in over five years. While wages are still growing faster than prices, the situation could change if Middle East tensions continue to push energy prices higher. Capital Economics predicts that, based on current oil and gas price assumptions, inflation could peak at 4.6% by the end of this year.   Rising inflation expectations due to the Middle East conflict have led some analysts to conclude that the Bank of England’s chances of cutting interest rates this year are slim, with some even predicting a rate hike later in the year. The Bank adjusts its base interest rate to control inflation, aiming to keep it at or near 2%. When inflation exceeds the target, the Bank typically raises rates to curb consumption and slow price increases.   Chancellor Rachel Reeves stated that the government is taking measures to reduce the cost of living: “We are also acting to protect people from unfair price increases, bring down food prices at the till, and cut red tape to improve long-term energy security, building a stronger, safer economy.” Read more... 60-day invoice payment deadline from 2027   The UK government has announced that, starting from the 2027 financial year, a mandatory 60-day payment cap will be applied to invoices paid to small and medium-sized enterprises (SMEs). Late payments will incur fines and interest at 8% above the Bank of England base rate, currently equivalent to 11.75%.   The new rules aim to hold large businesses and repeat offenders accountable, with legislation to be introduced “as soon as parliamentary time allows,” and further details expected in the King’s Speech.   Scope and Penalties   Under the Companies (Accounts and Reports) (Amendment and Transitional Provision) Regulations 2024, the rules will apply to large businesses with an annual turnover exceeding £54 million, a balance sheet above £27 million, or more than 250 employees. The Small Business Commissioner will have the authority to “investigate poor payment practices, adjudicate disputes, and fine the worst offenders tens of millions of pounds.”   The Department for Business and Trade (DBT) estimates that the new rules will cost these businesses £143.28 million annually, covering both the 60-day payment cap for large firms paying smaller suppliers and the requirement that all commercial contracts include statutory interest at 8% above the Bank of England base rate.   For example, if a business is owed £10,000 and payment is delayed by 60 days, under the new rules the company would receive a total of £10,293.15, including interest, plus an additional £100 compensation.   In addition, proposed legislation will ban withholding retention payments under construction contracts, though this is still under consultation.   Glenn Collins, Head of Technical and Strategic Engagement at ACCA, said: “Given the challenging economic climate for small businesses, we hope these important reforms are implemented as soon as possible. However, primary legislation takes time, and large corporates will also need to adjust their purchase-to-pay systems, which cannot happen overnight.”   In a letter to the CEOs and CFOs of the UK’s largest companies, the government noted: “Late payments cost the UK economy £11 billion each year and cause the closure of 38 businesses daily. UK companies spend 133 million hours annually chasing late payments, which damages cash flow, hinders growth, and threatens survival. We are determined to fix this problem and ensure small businesses are paid on time.” 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 .

The annual list of the UK’s biggest taxpayers—The Sunday Times Tax List—has just been released. The total tax paid by the top five taxpayers alone is equivalent to funding the annual salaries of 10,000 NHS nurses. On one hand, the UK still possesses a group of globally influential billionaires spanning core sectors such as industry, finance, property, and consumer goods. On the other hand, the debate surrounding whether the wealthy pay their 'fair share' and whether wealth is being reasonably regulated is heating up in British society and politics. Those who create wealth and those who hold wealth are often not the same group, and the tax burden is highly asymmetrical. Why is it that while the UK has 156 billionaires, only 100 people paid more than £11 million in tax?   Why are some individuals with a net worth exceeding £10 billion completely absent from the list? 1. The Tax List: Who pays the most? Unlike a traditional 'Rich List', the Tax List published by The Sunday Times  provides a more direct reflection of who is shouldering the primary responsibility for the UK’s public finances. The latest list, published in January 2026, shows that out of the top 100 taxpayers, 45 saw their tax liabilities rise further compared to the previous year. The compilers noted that the overall tax burden for the top 100 has risen, partly due to the corporation tax rate increasing from 19% to 25% since 2023, as well as hikes in dividend tax rates—changes introduced by the previous Conservative government that have fully materialised this year. The tax paid by the Done brothers (Fred & Peter Done) and their family rose from £273.4 million last year to £400.1 million, ranking them first on the list. The story of the Done brothers is highly representative. They dropped out of school at 15 with no qualifications and built the Betfred betting empire from scratch, breaking out of poverty to eventually accumulate billions in family wealth. This background makes them a classic example of 'self-made' capital accumulation in the UK. Ranking second is financial trading entrepreneur Alex Gerko, with an annual tax bill of £331.4 million; third is hedge fund tycoon and bond trader Chris Rokos, who paid £330 million. The high ranking of these two individuals once again highlights the central role of financial trading in the UK’s high-value tax contributions. 2025 UK Tax List | Image source: The Sunday Times Interestingly, this year's Tax List also revealed a thought-provoking phenomenon: although some wealthy individuals left the UK in the past year, they still appear on the list of high-value taxpayers. A total of six taxpayers remained on the list after 'departing', including Revolut founder Nik Storonsky, Malcolm Healey of Wren Kitchens, and sports promoter Eddie Hearn. This fact, to some extent, dampens the ongoing discussion about wealthy individuals moving overseas in response to higher tax burdens and the end of the non-domicile (‘non-dom’) tax regime. In April 2025, reports suggested that 11,300 millionaires chose to leave London in just 12 months, making London the city with the second-largest loss of ultra-wealthy individuals globally, trailing only Moscow, Russia. Reasons for this include a series of tax-raising measures under both Conservative and Labour governments, and Chancellor Reeves' insistence on abolishing the non-dom tax system. Under the new rules, all non-domiciled individuals who have resided in the UK for more than four years will be liable for UK tax on their worldwide income and capital gains, ending the 'remittance basis' system where only funds brought into the UK were taxed. 2. The huge mismatch between the Rich List and the Tax List In sharp contrast to the Tax List is the UK Rich List published by Beinsure Media. According to an analysis of the Bloomberg Billionaires Index, as of January 2026, the combined net worth of the UK's top 15 billionaires reached $177.4 billion. This group covers finance, consumer goods, property, industry, and entertainment, reflecting the structural characteristics of the UK economy. At the top of the list is James Dyson, who turned household appliances into a global consumer tech brand, sitting on a fortune of approximately $16.4 billion. Following closely is Jim Ratcliffe, founder of the chemicals and energy giant Ineos, with a net worth of $15.5 billion. Next are Anthony Bamford, a representative figure in engineering and manufacturing, as well as Alex Gerko, Michael Platt, and Chris Hohn, who built vast wealth through trading, hedge funds, and asset management. 2025 UK Rich List | Image source: Beinsure Media Comparing the two lists, you may notice that many individuals worth billions—or even tens of billions—of pounds do not appear on the Tax List at all. Conversely, regulars on the Tax List are often singers, athletes, and actors. Figures like Ed Sheeran, Anthony Joshua, Erling Haaland, Mohamed Salah, and Harry Styles, while not prominent on the Rich List, consistently rank among the top 100 taxpayers. This is not because they are wealthier, but because their income is primarily derived from labour rather than wealth itself. Record sales, prize money, and salary income are subject to far higher tax rates than capital gains. The view from TB Accountants In summary, the issue is not merely whether the wealthy are engaging in tax avoidance. Although offshore tax avoidance costs the UK approximately £12.5 billion in lost revenue annually, the deeper crux lies in the imbalance of the tax structure itself. The taxes paid by ordinary people come mainly from wages, pensions, consumption, and a small amount of investment income, with the highest burden falling on earned income.  Meanwhile, the primary source of income for the ultra-wealthy is the appreciation of existing wealth, which is much less constrained by the tax system. When vast wealth grows year after year through compound interest while remaining largely untouched, the result is a widening wealth gap.  It is against this reality that a wealth tax has returned to the centre of public discussion in the UK. Although Chancellor Reeves has explicitly opposed the creation of a standalone wealth tax, arguing that the current system already covers high-income groups, Labour’s support is being squeezed by the Green Party. Discussions around fair taxation, wealth distribution, and public responsibility are becoming clearer. Any new reshuffling could create the practical space for new tax policies. 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 .

Meningitis Cases Rise in UK Outbreak The UK Health Security Agency (UKHSA) is continuing to investigate an outbreak of meningococcal disease in Kent, in southeast England. The outbreak has developed rapidly in recent days, raising significant concern among public health authorities.   As of 5:00 PM on March 18, 15 laboratory-confirmed cases have been identified, with an additional 12 reported cases still under investigation, bringing the total to 27 cases, including 2 deaths. Case numbers are still being updated.   So far, confirmed cases involve students from four schools in Kent, as well as one student from a higher education institution in London (confirmed to be directly linked to the outbreak). Earlier investigations suggested that the outbreak was initially associated with individuals who visited the “Club Chemistry” nightclub in Canterbury between March 5 and 7; the venue has since been closed.   To contain the spread, UKHSA has implemented a range of emergency control measures, including the distribution of preventive antibiotics. These are being offered to University of Kent students, individuals who visited the nightclub during the relevant period, and close contacts of confirmed or suspected cases.   Currently, general practitioners (GPs) across England are able to prescribe antibiotics to those advised to receive preventive treatment.   Health experts emphasize that while receiving two doses of the MenB vaccine can significantly reduce an individual’s risk of illness, the vaccine does not protect against all types of meningococcal bacteria, nor does it prevent carriage and transmission. Therefore, vaccination is not the only control measure.   Although meningococcal disease is rare, it can be very serious. It may cause meningitis (inflammation of the lining of the brain) and septicemia (blood poisoning), and can rapidly progress to life-threatening sepsis. The disease often develops suddenly, making early recognition and prompt antibiotic treatment critical.   Common early symptoms include high fever, severe headache, neck stiffness, vomiting and diarrhea, sensitivity to light, cold hands and feet, and a non-blanching rash. In severe cases, symptoms may also include seizures, confusion, or extreme drowsiness. At present, UKHSA assesses that the overall risk to the wider public remains low, but authorities are actively tracing close contacts and providing appropriate preventive measures. Read more... Businesses given £3k grant to hire young people   To address rising youth unemployment, the UK Department for Work and Pensions (DWP) has announced a £1 billion employment support package. This includes a £3,000 subsidy per person to encourage employers to hire young people.   The new initiative, known as the “Youth Jobs Grant,” is set to launch in June 2026. Under the scheme, employers will receive £3,000 for each young person aged 18 to 24 who has been claiming benefits and actively seeking work for more than six months.   The subsidy will be distributed through third-party delivery partners, including employment support organizations, charities, non-profits, social enterprises, local authorities, and regional administrative bodies. The program aims to expand employment pathways, strengthen apprenticeship training, and provide clear policy support to businesses in order to curb the rise in youth unemployment.   In addition to this subsidy scheme, the government plans to expand the “Jobs Guarantee” program starting in autumn 2026. The eligible age range will be increased from 18–21 to up to 24 years old, thereby covering more university graduates.   Under the scheme, participants will receive fully subsidized paid work for 25 hours per week over a six-month period, with wages paid at the minimum wage level.   At the same time, the government is broadening the scope of the “Apprenticeship Incentive” scheme. From April this year, it will expand beyond its previous focus on manufacturing and engineering to include the hospitality and retail sectors. Employers will receive £2,000 for each employee aged 16 to 24 they hire.   Currently, youth unemployment in the UK has reached nearly 957,000, with the unemployment rate rising to 16.1%. The number of young people classified as NEET (Not in Education, Employment, or Training) is also approaching 1 million. The government has stated that it will accelerate the rollout of these measures to prevent further increases in unemployment. Read more... 90% of MTD £50k taxpayers not registered yet   The UK HM Revenue & Customs (HMRC) is set to officially launch the Making Tax Digital for Income Tax (MTD) scheme on April 6, 2026. However, the latest data shows that among the first group of affected taxpayers, only about one in ten have completed registration, far below expectations.   At last week’s annual Finance, Accounting & Bookkeeping (FAB) exhibition, HMRC digital tax experts revealed that only around 81,000 eligible sole traders, landlords, and freelancers have registered for MTD so far. The total number of taxpayers required to join this first phase is approximately 864,000, meaning roughly 90% have yet to register.   In addition, HMRC has received about 2,200 exemption requests.   Under the first phase, MTD for income tax requires taxpayers with annual income above £50,000 to submit quarterly income reports. The first submission deadline is August 7, 2026. Taxpayers with both business and property income must submit two separate reports. HMRC does not provide free official software, so taxpayers must use commercial software or “bridging software” to file their returns.   It’s important to note that MTD does not replace the traditional Self Assessment system. Taxpayers are still required to submit their annual return for the 2025–26 tax year by January 31, 2027.   Eligibility for MTD IT is based on the taxpayer’s income in the 2024–25 tax year. Even if income falls below the £50,000 threshold in 2025–26, registration and submission under MTD are still mandatory.   This rule, combined with MTD running alongside the current Self Assessment system, adds complexity and may increase the difficulty for taxpayers in understanding and complying with the requirements.   For questions or professional assistance, taxpayers can contact TBA UK Tengbang Accounting, which has 17 years of experience and offers one-on-one free consultations with a dedicated account manager via the QR code provided. 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 .

As with the start of any new tax year, almost all taxpayers will encounter a series of routine changes.  Compared to previous years however, the 2026/27 tax year appears exceptionally unusual, involving systemic adjustments to sick pay, the taxation methods for benefits, and even the collection mechanisms for pensions and income tax. What exactly will happen? And how should one prepare for the future starting now? Comprehensive reform of Statutory Sick Pay Before the arrival of the 2026/27 tax year, a major reform requiring primary focus is the comprehensive adjustment of Statutory Sick Pay (SSP).  Under the Employment Rights Act 2025, the scope of SSP will be significantly expanded – for the first time in UK history, all employees, regardless of their earnings level, will be eligible for Statutory Sick Pay, marking a fundamental shift in the sick pay protection system. From 6 April 2026, the Lower Earnings Limit (LEL) will be abolished. The calculation for SSP will change to the lower of 80% of an employee’s Average Weekly Earnings (AWE) or a flat standard rate (£123.25). Additionally, the 'waiting days' system will be scrapped, allowing eligible employees to start receiving SSP from the very first day of their sickness. In light of these changes, all employers and agencies should ensure that sick pay policies and payroll software are updated in a timely manner to comply with the new regulations. Mandatory payrolling of benefits in kind Another key upcoming change is the mandatory payrolling of benefits in kind.  From April 2027, the government will officially require employers to report and pay income tax related to benefits in real-time through the payroll system. It is particularly important to emphasise that even for businesses already 'voluntarily' payrolling benefits, there remains a significant amount of preparatory work to complete under the mandatory regime.  Unlike the current model, which simply requires adding a taxable amount during the pay period, every future benefit or taxable expense must accurately correspond to specific fields within the Real Time Information (RTI) system. This means that payroll processes, data structures, and the interface with benefit providers will undergo substantial changes. Changes to PAYE and pensions Beyond the confirmed short-term changes, two decisions announced in the November 2025 Autumn Budget will be officially implemented in April 2029, exerting a further and more profound impact on the payroll and tax systems. 1. Further integration of Self Assessment and PAYE (April 2029) In the future, Self Assessment (ITSA) taxpayers who also have PAYE income will be required to pay their self-assessed tax liabilities in instalments throughout the year via the PAYE system. This approach is highly consistent with the logic of payrolling benefits, with the core objective being the achievement of 'real-time tax payment' to close the tax gap. 2. Capping NI exemptions for pension salary sacrifice (April 2029) By now, many will be familiar with this change. From April 2029, for pension contributions made via salary sacrifice, only the first £2,000 per year will be exempt from National Insurance (NI). This change has been controversial, as it may discourage employees from increasing savings for long-term retirement while directly driving up National Insurance costs for employers.  Although it will increase treasury revenue, the cost is primarily borne by workers and employers, particularly affecting those who proactively engage in long-term financial planning. The view from TB Accountants  In summary, across the 2026/27 tax year and the series of reforms thereafter, a clear trend is visible: the UK tax and payroll system is moving entirely from 'annual retrospective reporting' towards 'real-time compliance and full-process management'.  These changes do not exist in isolation but are interconnected, progressive restructurings of the system. The earlier you understand the policy logic and adjust your systems and processes, the more controllable future uncertainties become.  Waiting until policies officially take effect to scramble a response often results in higher compliance costs, more frequent adjustments, and even unnecessary tax risks. 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 .

HMRC considers tax exemptions for expats fleeing Middle East According to UK media reports, HM Revenue and Customs (HMRC) is considering granting certain tax exemptions to British nationals who have returned to the UK due to the ongoing conflict in the Middle East.   Under normal circumstances, if an individual spends more than 183 days in the UK during a tax year, they are almost certainly classified as a UK tax resident and must pay UK tax on their global income and other financial gains.   If they remain in the UK for more than 183 days within a fiscal year, they may be deemed UK tax residents and required to pay tax in the UK on their worldwide income and asset gains. As the current tax year will end next month, some returning individuals may already be approaching this threshold, depending on how much time they have spent in the UK over the past 12 months.   Guidance issued by HMRC states that if a country experiences civil unrest or a natural disaster, and the UK Foreign Office issues its highest-level advisory of “avoid all travel,” the time affected individuals spend in the UK may be treated as exceptional circumstances. Under current UK rules, if someone exceeds the permitted number of days in the UK due to “exceptional circumstances,” they may disregard up to 60 additional days of presence in the country without those days counting toward the 183-day limit.   If the UK government advises citizens not to travel to certain countries, preventing them from returning to their usual place of residence, this situation may also be considered an exceptional circumstance. At present, the UK Foreign Office advises against travel to Iran, Israel, Iraq, and parts of Lebanon, while travel to United Arab Emirates, Kuwait, Qatar, Bahrain, and Jordan is recommended only if necessary.   It is understood that even if individuals from these countries remain in the UK for more than 183 days, HMRC may still consider granting tax relief and plans to review applications on a case-by-case basis.   In recent years, a large number of Britons have relocated to Middle Eastern countries to benefit from tax rates that are significantly lower than those in the UK. For example, according to estimates by Expat Insider, around 240,000 British citizens live long-term in Dubai. As tensions in the region continue to escalate, charter flights last week transported British citizens back to the UK. Currently, about 160,000 British nationals have registered their residence in the region.   Tax advisory firm Blick Rothenberg noted that despite the existence of such rules, people evacuated from the Middle East could still unintentionally become UK tax residents. The firm explained that no one knows how long the crisis will last, meaning some individuals could remain in the UK for three to five months or even longer.   In response, an HMRC spokesperson said that the existing rules already account for exceptional circumstances, including situations affecting people due to war. At the same time, the authority emphasized its core principle: individuals who live in the UK should pay tax in the UK. Read more... Chinese retail giant launches in UK with new Joybuy business   Chinese online retail giant JD.com has officially launched operations in the United Kingdom through its new platform Joybuy. The e-commerce company, valued at around £30 billion, rolled out the shopping platform on March 16, aiming to challenge major competitors in the UK market, including Amazon.   As China’s largest retailer, JD.com will offer a wide range of products on the platform, including technology goods, home appliances, beauty products, household items, groceries, and other daily essentials. The company said that after establishing its own logistics network, it will be able to provide next-day delivery to approximately 17 million households across the UK from the day of launch.   Over the past two years, the US- and Hong Kong-listed company withdrew from two potential acquisitions of major UK retail brands. In 2024, the group abandoned plans for a possible deal to acquire Currys, and in September last year, it also walked away from talks with Sainsbury's regarding a potential takeover of Argos. With the launch of its new platform, JD.com is now set to compete directly with these retailers as well as many other players in the market.   At the same time, the company is expanding into six new European markets, including Germany, Netherlands, France, Belgium, and Luxembourg. In addition, JD.com reached a €2.2 billion (about £1.9 billion) deal last year to acquire the Germany-based electronics retail group Ceconomy. Read more... 1.3m taxpayers paid £137m in late payment interest   According to data obtained by investment platform AJ Bell, around 1.3 million taxpayers were charged late payment interest by the UK tax authority HM Revenue and Customs (HMRC) during the 2023–24 tax year, with the total amount reaching £137 million. On average, each taxpayer paid just over £100 in interest.   The significant increase in the total penalties was partly driven by HMRC’s decision to raise the late payment interest rate.   From 6 April 2025, the rate increased from the Bank of England base rate plus 2.5% to base rate plus 4%. This meant that for many months the interest rate reached as high as 8.25%. In addition, the interest is calculated daily on the original tax owed, allowing the total amount due to rise quickly.   Charlene Young, pensions and savings senior specialist at AJ Bell, said the latest figures suggest that many taxpayers are still struggling to navigate the UK’s complex tax system, while HMRC has collected additional revenue as a result. Despite moves to relax the rules on who must submit a Self Assessment tax return, millions of taxpayers have still paid late payment interest in recent tax years.   Since 2018, the tax-free dividend allowance has been repeatedly reduced and now stands at just £500, far below its original £5,000 level. In addition, dividend income tax rates were increased in 2022 and will rise again for both basic-rate and higher-rate taxpayers in the next tax year.   A similar trend has occurred with investment profits. For gains outside Individual Savings Account (ISAs) and pensions, the capital gains tax (CGT) allowance has been reduced and tax rates have recently been increased.   These “multiple factors combined” mean that many small investors are now required to calculate and pay these taxes for the first time, while existing taxpayers are facing higher tax bills. If taxpayers struggle to understand the system or miss deadlines, they may face higher interest charges and penalties.   The increasing complexity of the tax system is also believed to be contributing to a rise in errors and confusion among taxpayers.   Meanwhile, concerns are growing that the upcoming Making Tax Digital (MTD) policy for income tax reporting could further increase late payment interest charges. Under the plan, from April 2026, landlords, self-employed individuals, and sole traders with annual income above £50,000 will gradually be required to adopt the new digital reporting system after the 2024–25 tax year.   For landlords and small business owners, the changes are expected to create additional administrative burdens and require them to adapt to a new penalty points system. 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 .