HMRC to reduce taxpayer letters in £50m cost-cutting plan The UK tax authority, HM Revenue and Customs (HMRC), recently announced a major initiative to significantly reduce the number of paper letters sent to taxpayers during the current parliamentary term. The plan aims to cut paper correspondence by as much as 75%, with a goal of saving £50 million in costs. Under this plan, HMRC will only send letters to taxpayers for critical issues directly related to tax revenue. According to the latest budget review document released by HMRC last week, this move is intended to streamline operations by fully digitizing non-essential communications, allowing resources to be focused on more urgent and necessary tax-related notifications, such as tax payment notices. At the same time, the UK government plans to invest an additional £1.6 billion between 2026 and 2029 to upgrade HMRC’s IT and data systems, accelerating the shift of services to online platforms. This initiative aligns with a previously introduced phone service restriction policy: due to the rise in phone scams related to tax refunds, HMRC has restricted refund claims by phone for self-assessment taxpayers, requiring them to apply online or by post instead. However, this wave of digital reforms has sparked some concerns. Tax experts warn that the changes may be problematic for individuals who are not familiar with or unable to use email or mobile apps, especially the elderly and digitally vulnerable groups. Eliminating most paper correspondence means some taxpayers could miss crucial tax information, such as filing requirements, tax code changes, or overdue payment warnings. Additionally, HMRC has recently faced criticism over its customer service, with the public complaining about slow response times and increasingly long waits on the phone. Whether this reduction in paper communication will lead to improved service efficiency remains to be seen. Read more... UK considers taxing pensioners to claw back winter fuel payment According to The Times, following a major overhaul of the winter heating allowance policy by the Labour government, as many as 5 million retirees may end up effectively “paying back” their heating support through increased taxes. The move has sparked widespread public debate and criticism, with some calling it a case of “policy confusion” and “moral ambiguity.” Policy Reversal: Allowance Reinstated, But With a Tax Catch UK Chancellor Rachel Reeves recently confirmed that more retirees will once again receive the winter heating allowance this year, with payments ranging from £200 to £300 per person annually. The benefit had been restricted in July 2024, previously limited only to those receiving Pension Credit. However, in an effort to ease fiscal pressures, the Treasury is reportedly exploring a plan to recoup the payments through tax increases targeting retirees with annual incomes over £37,000. This could even involve reclaiming allowances from the estates of deceased high-income pensioners—a move some media outlets have described as akin to “debt collecting from grieving families,” triggering fierce backlash. A Labour insider admitted: “We never should’ve cut this allowance in the first place, and now the reinstatement is a mess.” The Unite union’s General Secretary also condemned the proposal, saying: “We are the sixth-largest economy in the world—this government should not be targeting retirees. If it needs money, it should introduce a wealth tax, not take from the pockets of the elderly.” More detailed policy measures are expected to be announced in the upcoming Spending Review. Read More... Energy bills could be cut by up to 25% for thousands of UK businesses The UK government has announced that starting in 2027, it will significantly reduce energy bills for manufacturing businesses, potentially lowering bills by up to 25% for over 7,000 companies. This move is seen as a key pillar of Prime Minister Keir Starmer’s ten-year industrial strategy, aimed at tackling sluggish economic growth and restoring investor confidence in the business sector. The government has also pledged to streamline the approval process for factories and major projects to connect to the power grid, effectively “fast-tracking” manufacturing expansion. According to the newly released UK Industrial Competitiveness Plan, the government will eliminate several green levies from business electricity bills—including the Renewables Obligation, Feed-in Tariffs, and Capacity Market charges. These changes are expected to cut costs by up to £40 per megawatt-hour, significantly easing the burden of high energy consumption and costs in the manufacturing sector. In addition, around 500 of the most energy-intensive companies—such as those in steel, chemical, and glass manufacturing—will benefit from even deeper discounts on grid charges. The current British Industry Supercharger program offers these firms a 60% discount, which will rise to 90% starting in 2026. The government’s industrial strategy focuses on eight key sectors where the UK has both foundational strengths and growth potential: Advanced manufacturing Clean energy Creative industries Defence Digital technology Financial services Life sciences Professional and business services Energy Secretary Ed Miliband noted that high commercial electricity costs in the UK are largely due to an overreliance on the international gas market. He called for accelerated investment in wind and nuclear power, emphasizing the need to “fundamentally reduce energy costs” over the long term. 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 .

According to major media reports, the so-called ‘Bank of Mum and Dad’ is playing a major role in the UK housing market, helping young people buy homes earlier and at higher prices — particularly first-time buyers. In other words, for many people under 30 in the UK, homeownership is simply not realistic without financial help from parents. ‘Bank of Mum and Dad’ A recent analysis from UK Finance compared first-time homebuyers who received financial help in 2024 with those who didn’t. Unsurprisingly, those who received help from family were much better off when it came to buying power. These buyers typically bought a home by age 30, with an average household income of £56,000. They also bought properties worth nearly £40,000 more than buyers without financial support. Interestingly, buyers without help actually had higher household incomes — averaging £65,000 — but typically only managed to buy a home around age 32.5. This shows how significant family support can be. Even with lower incomes, supported buyers can afford more expensive homes. Average down payment (with family help): £118,073 Average down payment (without family help): £60,741 That’s a gap of nearly £60,000! This growing dependence on family wealth may further deepen inequality in the UK housing market. Across the UK: Average home price (with family help): £317,846 Average home price (without help): £279,381 In London, the gap is even starker: Down payment (without help): £145,133 Down payment (with help): £224,054 Stamp duty & interest rate policies widen inequality Certain government policies — like changes to stamp duty and interest rates — are amplifying the inequality between those with and without family support. 1. Stamp duty relief cut From April 1, 2025, the stamp duty threshold for standard residential purchases will drop from £250,000 to £125,000, meaning more property transactions will be taxed. For first-time buyers, the relief is also reduced: Exemption threshold: from £425,000 → £300,000 5% rate threshold: from £625,000 → £500,000 If the property price exceeds £500,000, the buyer gets no first-time buyer relief at all. This has already caused a disproportionate increase in first-time buyers using family wealth to get into the market before further costs set in. 2. Base rate cut spurs market The Bank of England recently cut its base interest rate from 4.5% to 4.25%. Mortgage lenders have already launched products with rates below 4%, encouraging more buyers to enter the market. 3. How to legally reduce your tax burden when buying in the UK Regardless of whether you’ve got help from the Bank of Mum and Dad, everyone wants to save money on buying a home. Here are some tax-saving strategies: Use trusts to transfer funds Setting up a family trust can help transfer funds while potentially avoiding inheritance tax (IHT) or capital gains tax (CGT) later — particularly helpful for high-net-worth families. Ensure first-time buyer status Have your children buy under their own name to qualify as first-time buyers. Avoid joint ownership or improper funding structures that could disqualify them from stamp duty relief. Avoid tax on gifts If parents gift money directly and register the property under the child’s name, this may be deemed a taxable gift in the UK. Plan the amount and timing carefully to minimise potential tax burdens. Use a company to hold rental property Families buying property for rental purposes might benefit from buying through a limited company, which can optimize tax on rental income and allow deductible expenses. Consult a professional tax advisor Since every family’s financial situation is different, it’s best to consult a UK-based tax advisor or accountant before buying. This ensures your plan is both legal and tax-efficient.   For individuals and businesses looking for UK taxation services, use our contact form to get in touch for more information. Get in touch with us at info@tbgroupuk.com  or for a free one-to-one consultation.  This article is intended as general guidance only, and does not replace any legal or professional advice.  For enquiries, please contact  TBA Group  via  email  or  WhatsApp .

Think people stop buying homes just because the economy’s tough? Absolutely not! Despite significant volatility in global financial markets during the first half of 2025—due to factors such as US tariff policies, geopolitical tensions, and inflationary pressure—UK property prices have continued to rise against the trend.   According to recent data, the average asking price of homes listed in May climbed to £379,517, while average rent in London surged to around £2,300 per month. Meanwhile, as of now in 2025, the average monthly salary for full-time employees (including bonuses) is approximately £2,846. After rent, that leaves just over £500, which explains why it’s often said that the cost of living in London is especially high for single individuals. According to Rightmove, the average price of properties for sale rose by 0.6% (approximately £2,335) this month. Although this marks a new record high, it is the lowest May increase since 2016. Rightmove’s data shows that there was a spike in demand in March, as buyers rushed to complete transactions before stamp duty changes came into effect in England in April, but activity slowed the following month. Compared to April 2024, buyer interest in April 2025 dropped by 4%, the first year-on-year decline in 2025. Nevertheless, demand for the year to date is still 3% higher than in 2024, and early signs in May suggest a rebound. Sales agreed in April were up 5% year-on-year, indicating that committed buyers are still moving decisively. Some people are buying to live in their homes, others for investment. Overall, while there’s been short-term fluctuation, the UK property market remains on an upward trajectory. Why is the UK property market still booming? 1. Domestic policy stimulus & favourable interest rates Stamp duty changes From 1 April 2025, the UK introduced revised stamp duty thresholds, reducing the nil-rate threshold for first-time buyers from £250,000 to £125,000, while also increasing additional levies for second homes and overseas buyers. This led to a rush of transactions ahead of the change, with Q1 2025 transaction volumes up 5% year-on-year, and property enquiries in some areas like London up 13%. The so-called “rush-to-complete” effect temporarily pushed up prices, with average UK house prices reaching a record high of £377,000 in April. Low interest rates and expectations of further cuts Since 2024, the Bank of England has gradually lowered interest rates, and in May 2025 cut rates by another 25 basis points to 4.25%, with two more potential cuts forecast within the year. Mortgage rates fell accordingly, with five-year fixed rates down to about 4%, significantly reducing the cost of buying a home. This lower borrowing cost encouraged both first-time buyers and movers, particularly during policy windows like the stamp duty changes. 2. International investment & safe-haven appeal Prime locations as safe-haven assets Amid global market turbulence, UK properties—particularly in prime London areas—are viewed as secure investments. International buyers (e.g. from North America and the Middle East) are drawn to the UK for its political and economic stability and world-class education, which drives up prices in the luxury market. Capital appreciation and rental income make dual gains In central London, annual capital appreciation rates of 4–5% and stable rental yields are attracting long-term investors. 3. Economic resilience & market confidence Stronger-than-expected economic performance In Q1 2025, UK GDP grew by 0.6%, and leading indicators show signs of economic recovery. Unemployment remains low, and real wages have increased, supporting home buying power. Despite rising global trade uncertainties, UK interest rate cuts and fiscal policy have cushioned the blow, improving resilience. Post-Brexit adjustment stabilising the market The long-term impacts of Brexit are easing, with new UK–EU agreements (e.g. on trade and security) reducing friction and boosting business confidence. As the market adapts to post-Brexit rules, investor confidence is returning—especially in international cities like London where property remains a favoured asset class. 4. Long-term structural demand Population growth & housing shortage The UK population continues to grow, but housing supply remains insufficient. Although property listings in 2025 reached their highest level in 10 years, demand still outstrips supply—particularly for first-time buyers and growing families. Government plans to ease planning rules and build more social housing may help, but short-term impact will be limited. Wealth transfer & changing investment preferences After the pandemic, some households accumulated savings to fund home purchases. Younger generations are increasingly buying homes to preserve asset value, while pensions and institutional investors are increasing real estate allocations, further fuelling demand.   What are the tax changes in 2025? Stamp Duty Land Tax (SDLT) Revision From 1 April 2025, the nil-rate threshold for standard buyers fell from £250,000 to £125,000—meaning that transactions above £125,000 are now taxed starting at 2%.For first-time buyers, the tax-free threshold dropped from £425,000 to £300,000, with the portion above that taxed at 5%. For second properties, the additional SDLT surcharge rose from 3% to 5%, with overseas buyers paying an additional 2%, bringing the total SDLT to 7%.For example, a £250,000 second home now attracts £17,500 in stamp duty, up £5,000 from before. Council Tax Surcharge for Second Homes From 1 April 2025, England and Wales began levying a council tax surcharge of up to 200% on second homes, affecting around 500,000 properties across 200 districts. Capital Gains Tax (CGT) Increase As of April 2025, CGT rates increased significantly: Basic rate rose from 10% to 18% Higher rate rose from 20% to 24% This applies to all asset sales, including buy-to-let and second homes, with a substantial impact on landlords and investors. Inheritance Tax Tightening Threshold frozen: The inheritance tax threshold (£325,000) is now frozen until 2030, projected to generate over £2 billion in additional tax revenue. Non-UK residents: From April 2025, overseas assets owned by non-UK domiciled individuals will be subject to 40% inheritance tax, without the standard exemptions available to UK residents. The increase in SDLT and CGT is likely to raise purchase costs—especially in high-priced areas like London. The higher tax burden on second homes may also cool investment demand. However, the extra revenue from council and inheritance tax—over £1 billion annually—is promised to go toward new housing and public services, potentially improving quality of life. A silver lining? Some advice from TB Accountants There have been significant UK property tax changes in 2025. If you’re planning to buy a property but missed the April tax deadline—or are a non-UK resident—it’s strongly advised to consult a professional tax adviser to avoid unnecessary tax risks.   For individuals and businesses looking for UK taxation services, use our contact form to get in touch for more information. Get in touch with us at info@tbgroupuk.com  or for a free one-to-one consultation.  This article is intended as general guidance only, and does not replace any legal or professional advice.  For enquiries, please contact  TBA Group  via  email  or  WhatsApp .

In the UK, whether you’re an employee or an employer, it’s nearly impossible to avoid one key system when it comes to payroll – PAYE (Pay As You Earn).  This means that when an employer processes payroll, they automatically deduct Income Tax, National Insurance Contributions (NICs), and other applicable deductions (such as student loans or pension contributions). PAYE significantly reduces the administrative burden for both employers and employees. However, before you start using the system, there are a few key documents you need to understand – particularly the often-confused P45, P60, and P11D forms. Still unsure about the differences and usage of these forms?  Then you’ll definitely want to save this article! They are directly linked to your resignation, onboarding, tax filing, and benefit declarations. P45, P60, and P11D What is a P45? When an employee leaves a job, the employer must provide them with a P45. This form records the employee’s earnings and tax paid during the current tax year (which runs from 6 April to 5 April the following year) up to the date they left. A P45 has four parts: Part 1: Sent by the employer to HMRC Part 1A: Retained by the employee Parts 2 and 3: Given to the next employer or Jobcentre Plus By law, employees should receive their P45 on their leaving date. When joining a new employer, you're often asked to provide Parts 2 and 3 of your P45 so the employer can apply the correct tax code. If you don’t have a P45, your new employer may have to use an emergency tax code, which could result in overpaying tax. If it’s your first job or you’re starting a second job, you naturally won’t have a P45. In that case, your employer will ask you to fill in a Starter Checklist, which collects your basic tax details (such as whether you have other jobs, your National Insurance number, and whether you have a student loan), so the correct tax code can be applied. The P45 is valid for the entire tax year in which it is issued. If the tax year changes between jobs, you will need to fill in a Starter Checklist instead. What is a P60? In contrast to the P45 which is issued when you leave a job, a P60 is issued if you are still employed at the end of the tax year (5 April each year). Your P60 includes: Your National Insurance number Your employer’s PAYE reference number Your tax code at the end of the year Total earnings for the tax year Total tax paid through PAYE, including breakdowns by tax type The P60 is very important – it helps you check whether you’ve overpaid tax. If you have, you may be able to claim a refund. If you’ve had multiple jobs, each employer should issue you with a separate P60. We recommend keeping your P60s for at least four years as evidence of your income and tax history. This will be crucial if you ever need to prove your tax status or resolve any tax issues with HMRC. What is a P11D? Now that we’ve covered resignations and joining new jobs, let’s look at a form relevant during employment – the P11D. If you receive Benefits in Kind (non-cash benefits) as part of your job – such as: A company credit card Interest-free loans Private medical insurance Company cars or other assets used for personal reasons Then your employer is required to submit a P11D form to HMRC on your behalf. This form lists the taxable value of each benefit, which is used to determine whether you need to pay additional Income Tax. If your total income (including benefits) exceeds £8,500, the employer must submit a P11D. Employers usually give you a copy of the P11D, but if they don’t, they’re still legally required to inform you of the benefits included. If your employer is using payrolling benefits (where tax is deducted through payroll instead), you may not receive a P11D. Employer responsibilities  As an employer, if you provide any Benefits in Kind to employees, you must: Submit a P11D for each employee receiving benefits Submit a P11D(b) to report the Class 1A NICs owed on these benefits The key deadlines are:  Submission deadline (P11D & P11D(b)): 6 July each year Employee copies must be provided by: 6 July Class 1A NICs payment deadline: 22 July each year The P11D is a crucial document in the UK’s tax system for declaring employee benefits.  Even non-cash perks with monetary value can lead to tax liabilities. Both employers and employees should understand these responsibilities to avoid future penalties or unexpected tax bills. Some advice from TB Accountants  The different uses of the P45, P60, and P11D highlight the UK’s emphasis on real-time compliance and transparency in payroll and taxation. For employers, these forms are not only records of employee tax status – they are legal obligations. Any delays, omissions, or errors could lead to HMRC investigations or fines. For employees, understanding these forms can help clarify your salary and tax structure. More importantly, it can determine whether you receive a timely tax refund, avoid excessive emergency tax codes, or correctly report additional income from self-employment or investments. For individuals and businesses looking for UK taxation services, use our contact form to get in touch for more information. Get in touch with us at info@tbgroupuk.com  or for a free one-to-one consultation.  This article is intended as general guidance only, and does not replace any legal or professional advice.  For enquiries, please contact  TBA Group  via  email  or  WhatsApp .

With several tax changes introduced in the UK this April, entering the ‘era of global taxation’ has become a topic of concern for foreign nationals residing in Britain. Under the new policy, the UK government has scrapped the remittance basis for non-domiciled individuals—previously allowing up to 15 years without paying UK tax on foreign income. It has now been replaced by a new residence-based system for foreign income and gains (Foreign Income and Gains, or FIG). What is the new Foreign Income and Gains (FIG) regime? For migrants to the UK who become UK tax residents by spending at least 183 days in the country, but whose permanent home (or family base) is abroad, they may qualify as non-domiciled. Under this new Foreign Income and Gains (FIG) regime, individuals who become UK tax residents before 5 April 2025, and who were non-UK tax residents for the previous ten consecutive tax years, may apply for the FIG scheme within the first four tax years of residency.  During these four years, applicants enjoy 100% tax exemption on foreign income and gains. Is the four-year exemption under fig really worth it?  Perhaps not. A closer look at the FIG scheme might make you rethink its value. Applying for FIG could result in loss of allowances and reliefs According to the new rules, from 6 April 2025, those who apply for the FIG regime within their first four tax years of UK residency may enjoy 100% tax relief on foreign income and gains. This includes bringing funds into the UK—such as trust distributions—without paying tax. However, this comes with a major caveat: during the four-year exemption period, you will not be entitled to personal allowances on your income or capital gains. Personal allowances and reliefs HMRC’s RFIG43000 guidance makes clear that non-domiciled individuals must choose whether to opt into the new four-year FIG regime. Once opted in (or if Overseas Workday Relief is claimed), it will affect your eligibility for various tax allowances and reliefs, including: No personal allowance No blind person’s allowance No married couple’s allowance or civil partner’s allowance No transferable tax allowance for married couples/civil partners No relief on certain payments such as life insurance premiums Moreover, foreign income exemptions are ignored when calculating your Adjusted Net Income (ANI), which is used to assess eligibility for various reliefs such as the tax-free childcare scheme. This means that your entire foreign income is still counted for determining thresholds such as: Eligibility for childcare support Liability for the High-Income Child Benefit Charge (HICBC) Capital gains and losses The FIG regime also impacts capital gains tax (CGT) treatment: You will not be entitled to the annual CGT exemption in any tax year where FIG is claimed You cannot claim capital losses—qualifying overseas losses during such years cannot be used to offset gains However, foreign capital gains will be exempt first, so UK losses from the same year, or carried forward losses from unrelated prior years, can still be used as normal. Trade and property losses If your trade, profession, or property business is based entirely outside the UK, and you apply for FIG in a given tax year, you will not be able to offset any losses from that activity in that year—or in future years. This applies if the income from such business would otherwise be treated as ‘qualifying’ foreign income. In this case, the losses cannot be carried forward to offset future profits.   Summary By opting into the FIG regime, you will lose eligibility for all personal income and capital gains tax allowances, and cannot offset capital, trade, or property-related losses. Since tax is calculated separately for each source of income, if you have multiple sources of global income, you are strongly advised to consult a qualified accountant or tax adviser before applying for FIG. This helps ensure optimal use of allowances and tax reliefs to minimise liability. Some advice from TB Accountants While FIG offers a four-year foreign income tax exemption, this does not mean your global income is simply written off.    FIG affects many other allowances and reliefs. In addition, once excluded from ANI calculations, your full income may push you into higher tax bands for benefit entitlement and other threshold-based assessments. Therefore, before applying for FIG via your Self-Assessment in the new tax year, you should fully consider the implications. Even if you qualify, it does not mean you are required to claim it. If you plan to apply for FIG, the first reporting deadline for the 2025/26 tax year is 31 January 2027, and the claim must be made annually. If you opt in for the first year, it won’t automatically roll over—you must tick the relevant box in each year’s Self-Assessment to continue claiming tax exemption under the regime. If you still have questions about the global taxation rules for non-domiciled individuals or the FIG regime, or would like to speak with a tax advisor, contact TB Accountants for more information.  With over 16 years of experience, we can offer tailored tax planning and financial services to support your needs. For individuals and businesses looking for UK taxation services, use our contact form to get in touch for more information. Get in touch with us at info@tbgroupuk.com  or for a free one-to-one consultation.  This article is intended as general guidance only, and does not replace any legal or professional advice.  For enquiries, please contact  TBA Group  via  email  or  WhatsApp .

Did you know that although singles might save on Valentine’s Day gifts, they end up spending at least a few thousand pounds more than couples every year on their daily living expenses. And that’s far more than the cost of any Valentine’s gift!   Single People Spend an Extra £2,533 Annually Compared to Couples! According to data from Hargreaves Lansdown, single people end up paying significantly more across various aspects of life compared to couples. This includes rent or mortgage payments, council tax, energy bills, food, broadband, and phone costs. Basic housing expenses — including rent or mortgage, council tax, and energy bills — cost single people an average of £7,974 per year, while couples each spend £6,215 annually. Higher Food and Utility Costs for Singles Since single individuals lack the advantage of bulk purchasing and shared cooking, they spend an average of £574 more on food annually than couples. Data from CEIC indicates that energy costs (including electricity, gas, and fuel) in the UK average around £200 per month. Since singles have no one to share these expenses with, they typically bear the full cost, whereas couples can split these bills, reducing individual financial burdens. Moreover, single people spend £828 per year on communications and devices, while couples each pay only £628.   Less Money Left at the End of the Month Studies show that on average, at the end of the month, single people are left with just £42, while couples have around £341 left after covering their expenses. Additionally, single people often tend to spend more on social activities such as going to bars, karaoke, and other entertainment venues, which adds further costs. But even without factoring in these expenses, single individuals still end up spending around £2,533 more per year than couples. How Can Single People Cut Living Costs? 1. Claim a Council Tax Discount Single people can benefit from a 25% discount on council tax, which applies whether you rent or own your home. As long as you live alone, you’re entitled to this reduction. You may also qualify for a discount if your partner is in long-term care. Additionally, if your income is low, you could be eligible for further council tax support.   2. Apply for Pension Credit Many people overlook the Pension Credit benefit. If you’ve reached the State Pension age and have a low income, Pension Credit provides extra funds to help cover living expenses — and even contributes towards housing costs. For single people, Pension Credit can boost weekly income to £201.05. For couples, the weekly income can increase to £306.85. You can apply online, call 0800 99 1234, or submit an application by post.   3. Make the Most of Capital Gains Tax Allowance Single individuals have an annual £3,000 Capital Gains Tax (CGT) exemption. By timing asset sales strategically, you can maximise the use of this allowance and reduce potential tax liabilities.   4. Consider House-Sharing Sharing a home can significantly reduce living costs, especially rent and utilities. According to Unbiased, the average monthly bill for electricity and gas in a three-bedroom house is around £167. Splitting this between three people means each will pay only £56 per month. Council tax for a shared house averages £57 per person. 5. Maximise Freezer Usage Buying food in bulk is usually cheaper, and filling your freezer with ingredients can encourage more home cooking. This reduces reliance on takeaways and eating out, saving a significant amount in the long run.   6. Control Entertainment Spending Why not opt for lower-cost social activities or take advantage of group deals and discounts?   Many entertainment venues offer group-buying deals, allowing you to enjoy social time without overspending. ‘Companionship Culture’ on the Rise? In the 21st century, it seems we’ve entered the era of ‘companionship culture’ . Whether it’s a travel buddy, a dining partner, or a gym companion, having someone to share experiences with not only fulfils emotional needs but also helps reduce living costs. Isn’t that, in some sense, a different kind of ‘relationship’? For individuals and businesses looking for UK taxation services, use our contact form  to get in touch for more information. Get in touch with us at info@tbgroupuk.com  or for a free one-to-one consultation.  This article is intended as general guidance only, and does not replace any legal or professional advice.  For enquiries, please contact  TBA Group  via  email  or  WhatsApp .

The EU recently announced that starting from 2025, users of third-party short-term rental platforms such as Airbnb will need to pay VAT on any rental income received.  This also applies to overseas property owners renting out their foreign properties and apartments. In contrast, HMRC has always imposed strict rules on short-term rentals in the UK, which include levying VAT.  So, if you’re renting out property on a short-term basis, what do you need to be aware of? 1. Charging UK VAT on Airbnb rentals In the UK, ordinary rental income from residential properties is exempt from VAT.  This includes properties that are purchased and rented out on a buy-to-let basis. Airbnb (and other short-term rental platforms) are categorised as holiday lets, similar to hotels, rather than a residential rental.  This means that Airbnb rentals are subject to normal VAT rules – a standard rate of 20% should be charged. This becomes relevant if you meet the VAT registration threshold (£90,000 in 2024/25), after which you will also need to report and remit the VAT collected. 2. Other taxes Income Tax Perhaps you started renting out your small property on Airbnb out of a hobby or as a way to earn extra pocket money. Regardless of your motive, as an Airbnb host, just like any landlord, you need to pay income tax on the rental income you earn. Whether you pay tax on this income and how much tax you pay depends on several factors, including the type of property you rent out, the amount you earn through renting that property, and whether you qualify for any tax relief schemes. Currently, each taxpayer in the UK has their own personal tax-free allowance—£12,570. This means that in the tax year 2024/2025, you can earn up to £12,570 of tax-free income. If you already have a full-time job, it’s likely that your tax-free allowance has already been used up. However, if Airbnb is your only source of income, earning less than £12,570 means you won’t have to pay any income tax. If your Airbnb income exceeds this amount, you are responsible for declaring and paying the relevant income tax. When it comes to the amount of income tax you owe, once personal allowances and tax reliefs are deducted, the general rules apply. This means that your tax rate will be calculated based on the relevant tax rate bands. In England, the basic tax rate is 20%, applicable to income from £12,571 to £50,270. The higher tax rate is 40%, applicable to income from £50,271 to £150,000. Finally, the additional tax rate is 45%, applicable to income of £150,000 and above. Business Rates Airbnb hosts who own properties in the UK may be liable for business rates. In England, any property that is available for rent for 140 days or more per year is classified as a self-catering property and is subject to business rates. In Wales, any property that is available for rent for 140 days or more per year but actually rented out for 70 days or more needs to pay business rates. Council Tax When you rent out your holiday home or investment property on Airbnb for less than 140 days per year, you need to pay council tax, but not business rates. 3. What tax relief opportunities do landlords have? Rent-a-Room Scheme The Rent-a-Room Scheme allows you to earn up to £7,500 tax-free each year by renting out furnished rooms in your home. If you share the income with your partner or someone else, the tax-free amount is halved. In general, if your income is less than £7,500, it is automatically tax-free. This means you don’t need to do anything. If your income exceeds this amount, you must fill out a tax return form. You can then choose to join the scheme and claim your tax-free allowance. You can do this on your tax return form. Alternatively, you can choose not to join the scheme and instead record your income and expenses on the property page of your tax return. £1,000 tax-free allowance Airbnb hosts can receive a £1,000 tax-free short-term rental allowance. However, you cannot claim both the £1,000 tax-free allowance and the Rent-a-Room Scheme relief on the same income. It’s best to consult with a qualified accountant about your specific situation, as eligibility may vary depending on your specific circumstances. Note that the rules for rental income still apply as long as you rent out properties other than your main residence. Capital Gains Tax Relief In some cases, Airbnb properties may also qualify for capital gains tax relief. If your property meets the conditions for furnished holiday lettings (FHL) and is a second residence, there are some schemes that can minimise the tax burden. Business Asset Disposal Relief Business Asset Disposal Relief, previously known as Entrepreneurs’ Relief, allows individuals selling Airbnb properties to be taxed at a rate of 10% on their gains instead of 18% or 28%. If you own a furnished holiday home, you can claim capital allowances to reduce your tax bill. For example, with ordinary properties, when you buy furniture like beds and tables, these cannot be deducted as costs for your tax. Only replacement furniture can be, such as when a bed breaks after two years and needs to be replaced. However, with furnished holiday homes, you can claim capital allowances for any furniture initially purchased. 4. What properties qualify as furnished holiday lettings (FHL)? A property must meet the following criteria to be classified as furnished holiday lettings (FHL): The property must be available for rent for at least 210 days a year. Of those 210 days, the property must be rented out for at least 105 days per year. The property must be furnished enough to meet normal living needs, and tenants must be allowed to use the furniture provided. The property must be located in the UK or the European Economic Area (EEA). It must be let out to holidaymakers rather than just friends and family. The property must be let on a short-term basis, with no single tenancy exceeding 31 days—except in special or unforeseen circumstances. For individuals and businesses looking for UK taxation services, use our contact form  to get in touch for more information. Get in touch with us at info@tbgroupuk.com  or for a free one-to-one consultation.  This article is intended as general guidance only, and does not replace any legal or professional advice.  For enquiries, please contact  TBA Group  via  email  or  WhatsApp .

UK economy shrank 0.3% in April, tax increases may save more Due to tax changes and the impact of US tariffs, the UK economy shrank by 0.3% in April — the largest monthly decline since October 2023 — exceeding the 0.1% contraction forecast by City of London economists. Liz McKeown, Director of Economic Statistics at the Office for National Statistics (ONS), noted that following the US tariffs, UK exports fell by £2 billion, marking the largest monthly drop on record since January 1997. This data is undoubtedly a setback for Chancellor Rachel Reeves, who just last week outlined her economic growth plans in a three-year spending review. She attributed most of the unexpected contraction to the “uncertainty caused by tariffs.” She said: “We know April was a challenging month… If you look closely at today’s data, you’ll see that both exports and production weakened, and that’s all down to the uncertainty brought about by global tariffs.” Meanwhile, the Institute for Fiscal Studies (IFS) also warned Chancellor Reeves that if the UK economy continues to decline, it could trigger another round of significant tax increases and spending cuts. The IFS raised a concern: under what it calls a “fiscal drag,” more people could be pushed into higher income tax brackets — because even if wages rise with inflation, the income thresholds at which people start paying more tax remain frozen. This is expected to generate about £10 billion in revenue per year by 2029. In response, government sources did not deny that they might extend the freeze on thresholds, only saying that future tax and spending decisions will be announced in the autumn budget. Read more... Council tax is expected to rise by 5% a year Recently, the UK government released its latest Spending Review document, indicating that in the coming years, Council Tax could rise by up to 5% annually to cope with ongoing pressure on local services and policing budgets. Although local councils have the discretion not to raise Council Tax to the maximum 5% limit, the document assumes that all councils will implement the full increase. Due to tight budgets, the majority of local councils already raised Council Tax by 5% for the new fiscal year starting this April. Some councils facing severe financial difficulties have raised it by even more, after securing central government approval or holding referendums. In response, Chancellor Rachel Reeves emphasized in an interview that this cap was set by the previous Conservative government: “This is just an upper limit — local councils do not have to increase it by 5%.” However, she also stated that raising Council Tax is necessary to continue funding social care and maintaining essential public services such as policing. It is worth noting that even though central government grants to local authorities have seen a slight increase (up 1.1%), the overall fiscal pressure remains high. This Spending Review projects that local councils’ total spending power will grow by 2.6%, including locally raised revenues such as Council Tax and business rates. Steve Lynch, Acting Chair of the Police Federation of England and Wales, expressed concern: “This Spending Review was supposed to mark a turning point after 15 years of austerity, but it now appears that cuts are continuing — and the public will ultimately pay the price.” Council Tax is a key funding source for essential local services such as social care, libraries, waste collection, and street cleaning. Due to severe budget deficits, since 2022, councils in Birmingham, Nottingham, Woking, Croydon, Slough, and others have issued Section 114 notices declaring effective bankruptcy. Read More... UK unemployment rises to highest level in four years According to the latest data released by the Office for National Statistics (ONS), the UK’s unemployment rate rose to 4.6% as of April this year, marking a new high since July 2021 and already exceeding the Office for Budget Responsibility’s (OBR) forecast for the highest unemployment rate this year. The current number of unemployed people in the UK has surpassed 1.6 million. Meanwhile, figures from the tax authority show that in May 2024, the number of payrolled employees in the UK dropped by 109,000 — nearly double the revised figure for April (55,000) — registering the largest single-month decline in five years. The period covered by this data coincides with the government’s increase in employer National Insurance contributions and the rise in the national minimum wage. Several business groups had previously warned that these tax hikes would increase costs for companies and could trigger a wave of layoffs, price increases, and a slowdown in wage growth. Liz McKeown, ONS Director of Economic Statistics, said: “The labour market continues to weaken, with a marked drop in the number of jobs. Feedback from businesses shows that many are slowing their hiring pace and are in no rush to replace staff who leave.” Despite the slowdown in wage growth, wages are still rising at 5.2%, significantly higher than the inflation rate of 3.5%. Minister for Employment Alison McGovern said: “Since we launched the ‘Back to Work Britain’ plan six months ago, we have added 500,000 new jobs, economic activity is at a record high, and the increase in real wages since last July has outpaced the entire decade since 2010.” However, market reaction shows that investors remain cautious about expecting an interest rate cut by the Bank of England next month. According to LSEG data, 90% of market participants expect rates to remain unchanged at the next meeting. 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 .

Did you know? Even the State Pension issued by the government can be subject to tax. Nearly half of retirees to be hit by Inheritance tax bill. According to data analysis, approximately 46% of individuals aged 85 to 89 receive a State Pension that exceeds the £12,570 tax-free personal allowance, meaning they must pay income tax on their pension income. For retirees aged 90 and above, this figure stands at 45%. Among those under 85, around 22% are also taxed on their State Pension income — effectively subject to a so-called ‘retirement tax’. Experts have warned that continued taxation on pension income could place additional burdens on the oldest and most vulnerable members of society. Let’s take a closer look at the real concerns behind pension taxation for retirees aged 85 and above. Inheritance Tax bill: State Pension and Income Tax The State Pension counts as taxable income and must be included in total income when calculating income tax. For the 2024/25 tax year, the personal allowance remains at £12,570. If a retiree's State Pension combined with other income (such as savings interest, rental income, or private pensions) exceeds this threshold, the excess is taxed at the applicable income tax rate. For example, the full new State Pension in 2023 is £203.85 per week (around £10,600 per year). With just modest additional income from savings or private pensions, it’s easy to surpass the tax-free threshold. Inheritance Tax bill: Private Pensions and Income Tax When withdrawing from private pensions (such as workplace or personal pension schemes), 25% can be taken tax-free, while the remaining 75% is taxed at your income tax rate. If retirees aged 85 and above withdraw large lump sums to cover medical or care-related expenses, their taxable income could increase significantly, pushing them into a higher tax band. For instance, withdrawing £100,000 from a private pension would leave £75,000 subject to income tax at progressive rates.   The impact of savings and investment income After a lifetime of work, many over-85s may own property, savings, or investments, which generate capital gains, interest, or dividends — all of which may be taxable. For instance: Rental income is taxed at 20–45% Interest over £1,000 is taxable These, combined with State Pension income, can easily push total income well above the personal allowance. Income thresholds affecting benefit entitlement Eligibility for certain benefits (e.g. Pension Credit, Housing Benefit) is income-dependent. If income exceeds the set thresholds, retirees may lose eligibility for these benefits — effectively creating a hidden tax. For example, the Pension Credit threshold for a single person is £192.60 per week. If income exceeds this, benefits are reduced by £1 for every £1 over, equating to a 100% marginal tax rate. Other policies 1. ‘Triple Lock’ policy The Triple Lock mechanism, introduced in 2011 by the Conservative–Liberal Democrat coalition, aims to ensure that the State Pension rises each year by the highest of the following three: Consumer Price Index (CPI) inflation E.g. In April 2023, CPI reached 10.1%, and pensions rose accordingly. Average earnings growth E.g. In April 2024, average wages rose 8.5%, so pensions increased by that amount. Minimum guarantee of 2.5% This ensures the State Pension keeps pace with inflation, wage growth, and other economic factors. 2. Personal allowance frozen until 2028 Since 2022, the government has frozen the personal allowance, with no increase planned until 2028 at the earliest. Even though pensions are rising due to the triple lock, taxable income may grow faster than the frozen threshold. For instance, if the pension rises by 3% annually, by 2028, it could reach nearly £12,000, meaning even a small amount of other income could push retirees above the £12,570 threshold. 3. Compounding tax policy effects In recent years, the government has sought to increase revenues through various tax changes: From 6 April 2025, employers' National Insurance will rise to 15%, potentially affecting workplace pension contributions. Capital Gains Tax (CGT) has increased, with the top rate rising from 20% to 24% Inheritance Tax and reductions in tax relief have also increased burdens for retirees.   The Institute for Fiscal Studies (IFS) forecasts that by 2028, the frozen allowance will bring 4 million more people into the tax net, including 3 million at higher rates. Among over-85s, 45% have private pension or investment income, often pushing total income over the tax threshold. Case studies We have prepared some examples demonstrating how the income tax rules could affect your pension.  Case 1: An 85-year-old receives a State Pension of £10,600, £2,000 interest, and a £5,000 private pension. Total income: £17,600Taxable amount: £5,030Tax due: £1,006 (at 20%) Case 2: An elderly person withdraws £200,000 from a private pension for care costs. £150,000 is taxable. Adding their £10,600 State Pension, total taxable income is £160,600.They may pay up to 45% tax on a large portion of this — a significant hit to retirement funds. Some advice from TB Accountants 1. Strategic Withdrawals Withdraw pension funds in low-income years to make the most of lower tax bands. Consider converting some pension funds into tax-free ISAs to reduce exposure. 2. Use Tax-Advantaged Accounts Invest through a SIPP (Self-Invested Personal Pension) for tax deferral. Use Lifetime ISAs (LISAs) for tax-free retirement or home purchase funds. 3. Seek Professional Advice Pension income is a crucial part of retirement planning. If your finances involve international pensions or high-value assets, consult a qualified tax advisor to avoid unnecessary liabilities. For individuals and businesses looking for UK taxation services, use our contact form to get in touch for more information. Get in touch with us at info@tbgroupuk.com  or for a free one-to-one consultation.  This article is intended as general guidance only, and does not replace any legal or professional advice.  For enquiries, please contact  TBA Group  via  email  or  WhatsApp .

Between the 1970s and 1980s, around 5,000 haemophiliacs and other blood disorder patients in the UK were infected with HIV or hepatitis viruses after receiving contaminated blood products from the NHS. Nearly 3,000 died as a result. In addition, up to 30,000 patients may have been exposed to infected blood products during surgeries, with the consequences still unfolding today—new deaths are still reported weekly. Survivors suffer from chronic illnesses like cirrhosis, cancer, and immune deficiencies. Some experienced broken families or even took their own lives due to delays in diagnosis and treatment. It is now recognised as the NHS’s greatest medical disaster.   Scandal compensation: 6-year inquiry unveils the truth In 2017, following years of protests and public pressure, then-Prime Minister Theresa May ordered an independent inquiry. Led by former judge Sir Brian Langstaff, the inquiry lasted six years, reviewing tens of thousands of documents and hearing thousands of testimonies. Compensation plan: £11.8 billion in historic redress In October 2024, Chancellor Rachel Reeves allocated £11.8 billion in the budget to be administered by the Infected Blood Compensation Authority (IBCA). The compensation includes five categories: Health impact compensation: Up to £2.735 million for individuals infected with both HIV and hepatitis C. Social impact compensation: For losses like interrupted employment and family caregiving. Autonomy compensation: For life disruptions caused by treatment failures. Care compensation: Financial support for caregivers and family members. Economic loss compensation: Medical costs, lost income, and other financial impacts. Implementation Details: Interim payments: £210,000 will be paid within 90 days to those in urgent need. Inheritance: If the victim is deceased, the compensation becomes part of their estate. Tax exemption: The compensation is exempt from income tax, capital gains tax, and inheritance tax. The focus of today’s article is the last point—the tax exemption policy.   The inheritance tax trap In practice, the promise of tax-free compensation has proven hollow. Under current UK inheritance tax laws, only the first direct heir is exempt. Any subsequent inheritance of that scandal compensation is subject to up to 40% tax. This is especially problematic for victim families—many of whom are already in their 60s or older. Once the original inheritor (such as a spouse or parent) dies, the remaining compensation passed on to other family members is heavily taxed. So, even though the government claims the compensation is tax-free, in reality, the families of infected blood victims face huge inheritance tax bills—because the exemption only applies to the initial inheritance. Given the long timeline of this scandal, many victims’ siblings or parents are now elderly. If they pass away and wish to pass remaining funds to others in the family, those recipients face inheritance tax rates of up to 40%.   The Telegraph interviewed a woman in her 60s with multiple health issues. Her brother died in the 1990s after contracting HIV from contaminated blood. She is due to inherit at least £1 million in compensation from his estate. However, if she dies soon after receiving it, her family could lose £400,000 to inheritance tax—because second-generation heirs are not tax-exempt. Under current rules, gifting money to children or others only becomes tax-free if the giver lives more than seven years after the gift. If not, inheritance tax applies. In other words, this woman—already in her 60s and in poor health—must live at least 7 more years, or her family will lose nearly half of the compensation. This woman’s story is heartbreakingly common. Her brother died decades ago, and if she passes away within seven years of inheriting his compensation, her children will lose 40% of it. This policy design effectively inflicts a second wound on families: even after legal redress, the state continues to erode the legacy of the victims. Minimising your inheritance tax bill The standard inheritance tax threshold (Nil-Rate Band, NRB) is £325,000. Any amount above this is taxed at 40%. While compensation from the infected blood scandal is technically tax-exempt, here are four legal strategies to reduce inheritance tax exposure: 1. Maximize Tax-Free Thresholds Leave your primary residence to children or grandchildren to claim an extra £175,000 Residence Nil-Rate Band (RNRB). Married couples or civil partners can combine allowances, totalling up to £1 million tax-free.(£325,000 + £175,000) x 2 = £1,000,000 2. Gifts and the Seven-Year Rule If you gift assets and live more than seven years, they’re exempt from inheritance tax. If you die sooner, they’re taxed on a sliding scale. 3. Use Trusts Placing assets in a trust transfers ownership to trustees, helping keep them out of the taxable estate.Also, donating at least 10% of the estate to charity can reduce the tax rate to 36%. 4. Investment Strategies Enterprise Investment Scheme (EIS): Exempt from inheritance tax after 2 years 30% income tax relief on investment Capital gains tax exemption on sale ISA Accounts: Tax-free within the account Can be passed to a spouse without inheritance tax implications Some final thoughts The contaminated blood scandal reveals not only the ongoing need for medical oversight but also the deeper tension between legal systems and human ethics. When the law reduces moral restitution to fine print and footnotes, it is arguable that no amount of money can truly restore public trust. The UK’s inheritance tax system is complex and constantly evolving. Strategic planning and professional advice are crucial. By using tax-free thresholds, trusts, and smart investment vehicles, families can pass on wealth whilst minimising their tax liability. For individuals and businesses looking for UK taxation services, use our contact form to get in touch for more information. Get in touch with us at info@tbgroupuk.com  or for a free one-to-one consultation.  This article is intended as general guidance only, and does not replace any legal or professional advice.  For enquiries, please contact  TBA Group  via  email  or  WhatsApp .

100,000 HMRC accounts hit as scammers steal £47m in phishing attack According to the latest disclosure from the UK Parliament’s Treasury Committee, HM Revenue & Customs (HMRC) has recently confirmed a serious phishing scam affecting approximately 100,000 taxpayers, resulting in around £47 million in tax fraud losses. HMRC Chief Executive Max told MPs that the incident occurred last year and was an “organized criminal activity,” not a random act. Attackers obtained personal identity information via phishing or other means, then used this data to create fake PAYE (Pay As You Earn) accounts or accessed existing accounts to fraudulently claim tax refunds. HMRC stated: “The accounts targeted were all personal accounts, not company accounts. We have notified or are in the process of notifying about 100,000 affected accounts, which represents 0.2% of all PAYE taxpayers.” They emphasized that no individuals have suffered any financial loss. Additionally, HMRC clarified that this incident was not a cyberattack — a true cyberattack would involve system breaches, data extraction, or ransomware. This case was different: HMRC’s systems were not hacked, and no data was leaked. The core of the attack was “off-system data phishing,” meaning attackers obtained user information outside HMRC’s systems and then used this data to fraudulently carry out tax operations. HMRC has locked all affected accounts and removed login credentials to prevent further misuse. They have also deleted false tax records and checked to ensure no other information was altered. The investigation has extended beyond the UK’s jurisdiction, with some arrests already made last year. A spokesperson said HMRC will send letters to affected users within the next three weeks, informing them their accounts have been secured and no funds were lost. Whether in the UK or elsewhere, vigilance against phishing and protection of personal information remain the first line of defense against financial fraud. Never trust requests for identity details in unsolicited emails or messages — verify through official channels if in doubt. If you suspect your tax account has been accessed fraudulently, please contact the relevant authorities promptly for investigation and resolution. Read more... Winter fuel payments to be reinstated this year After public pressure and policy reversals, UK Chancellor Rachel Reeves recently confirmed that part of the winter heating fuel subsidy will be restored this year. Previously, about 10 million pensioners were affected by the government’s cancellation of this subsidy, sparking widespread dissatisfaction. In addition, because Reeves firmly stated that she will not relax the already announced fiscal rules, multiple key departments remain deadlocked in budget negotiations with the Treasury ahead of the upcoming spending review. On July 29, 2024, the UK Labour Party stated that starting from the winter of 2024/25, the winter fuel subsidy will no longer be universally distributed but will only be given to pension credit recipients or other targeted eligible groups—only 1.5 million people (1.3 million households) will continue to receive the subsidy. Although this change is expected to save about £1.3 billion in 2024/25 and about £1.5 billion annually thereafter, public opinion widely criticizes the policy as “the harshest attack on the elderly generation”—it is estimated that this move will push around 100,000 pensioners into poverty by 2026, and even cause thousands to die from the cold winter. In Reeves’s latest speech last week, she already indicated that the winter fuel subsidy will be restored, but the focus of this policy adjustment is to raise the income threshold—previously, pensioners with incomes above £11,500 were ineligible. She said: “We have listened to public concerns about the income assessment threshold being too high, so adjustments will be made to ensure pensioners can receive the subsidy this winter.” It is reported that the government is considering a “pay first, reclaim later” approach—distributing the subsidy to everyone initially, then reclaiming funds through tax returns from high-income groups. This method has precedent in the child benefits system and is operationally feasible. Although the Chancellor is pushing a fiscal tightening agenda, sources say three key Whitehall departments have yet to reach multi-year budget agreements with the Treasury. According to The Guardian, Home Secretary Yvette Cooper, Energy Secretary Ed Miliband, and Housing Secretary Angela Rayner continue to insist on their budget demands. Reeves also made it clear that fiscal rules will not be relaxed for convenience. According to the new fiscal rules established by the Starmer government in October last year, by the 2029-30 financial year, the national budget must be balanced or in surplus, and government debt relative to the economy must decline. In addition, welfare spending is also restricted. Read More... First-time buyers typically borrowing for 31 years As UK house prices continue to rise, first-time buyers are facing significant financial pressure and are forced to choose longer mortgage terms to reduce their monthly repayments. Data from UK Finance shows that the average mortgage term for first-time buyers has now extended to 31 years, compared to just 28 years ten years ago. Lenders generally allow a maximum mortgage term of 40 years. Many first-time buyers in their 30s are using these “ultra-long” loans to achieve their homeownership goals. While longer loan terms reduce monthly payment pressure, they result in higher overall interest costs. As incomes grow or if buyers move, some may choose to shorten their mortgage term later. Higher mortgage interest rates are a key factor driving the extension of loan terms. On April 1 this year, the temporary stamp duty relief threshold for England and Northern Ireland returned to pre-adjustment levels, reducing the first-time buyer exemption threshold back to £300,000. Due to policy changes, first-time buyer transactions surged 113% year-on-year in March, but mortgage approvals have declined for four consecutive months through April, reflecting ongoing affordability pressures. Despite this, the UK housing market remains somewhat resilient. Data from the National House Building Council shows house prices rose 0.5% month-on-month in May, with a 3.5% increase over the past year, and the average house price reaching £273,427. 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@tbgroupuk.com  or for a free one-to-one consultation.  This article is intended as general guidance only, and does not replace any legal or professional advice.  For enquiries, please contact  TBA Group  via  email  or  WhatsApp .

Since the start of the new financial year, HMRC and Companies House have significantly ramped up audits of individuals and businesses. HMRC has raised the interest rate on overdue tax payments from the previous base rate + 2.5% to the Bank of England base rate + 4%.  Meanwhile, Companies House, now empowered to impose fines, has already issued 234 penalties totalling £58,500 to companies found to be using false registration information. Among these penalties, most relate to offences such as submitting false director details, forging information about persons with significant control, and using fake or unauthorised addresses.  Since UK company registration requires a real, compliant UK address, this has become a major headache for some business owners. Today, we’ll discuss what to do if your UK company’s registered address is disputed or deemed non-compliant—and how overseas business owners can still register a UK company without a physical address in the country. Why might a company address be disputed? Companies House may raise objections to a registered office address, service address, or principal place of business for several reasons, including (but not limited to): Fraudulent use of an incorrect address (e.g. to register a company, apply for credit, or falsely appoint directors); Use of a residential or commercial address without the property owner’s consent or knowledge; The registered office not meeting the legal criteria for a ‘proper’ address; Continued use of a third-party address service that has lapsed due to unpaid fees, incomplete identity checks, or abuse of the service. If your company’s address might be in dispute, you can apply to Companies House to change the registered office, LLP address, or service address by submitting Form RP07. What is Form RP07 and what is it used for? Companies House requires companies, LLPs, and certain associated individuals to provide official address details, which are made publicly available. All addresses submitted must be accurate and legally authorised for use. If the address is disputed, Form RP07 can be used to formally request a change.  However, companies or LLPs cannot use RP07 to change their own registered address, nor to change service or principal addresses of directors, secretaries, PSCs, or LLP members. How do you complete Form RP07? Form RP07 is available from Companies House.  It can be submitted online, or downloaded and submitted by post. Information required includes: Applicant’s full name (or company name if the applicant is a legal entity); Contact address and email; Name and registration number of the company involved; The disputed address; How the address is being used (registered office, service address, or principal place of business); Reason for the change request. The applicant must sign the form and include supporting evidence, such as: A utility bill (dated within the last 6 months) for the disputed address; A Land Registry title document (dated within the last 12 months); A written agreement confirming the applicant is authorised to use the address; Proof of ownership (e.g. freehold/leasehold documents); If the applicant is a service provider, contract start/end dates must be supplied. Companies House will assess each case based on the documents provided. Once submitted, Companies House will send the applicant a confirmation letter and notify the company or individual using the disputed address. That party then has 28 days to prove they have the right to use the address. If they fail to do so, or if Companies House deems the evidence insufficient, the disputed address will be removed from the register and replaced with a default address. However, if the company or individual updates their address before the end of the 28-day period, they can avoid the use of the default address. Companies House default addresses  1. England and WalesCompanies House Default AddressPO Box 4385Companies HouseCrown WayCardiff, CF14 3UZ 2. ScotlandCompanies House Default AddressPO Box 24238Edinburgh, EH7 9HR 3. Northern IrelandCompanies House Default AddressPO Box 2381Belfast, BT1 9DY What if you don’t have a UK address? Whether you’re a UK-based business owner seeking to use a commercial address instead of your home address to protect privacy, or an international entrepreneur wanting to register a UK company, using a registered office address service can help meet legal requirements. These services typically include: Basic Registered Address A legally compliant UK address for official company registration and receipt of government correspondence (e.g. from HMRC and Companies House). Government Mail Handling Receiving and managing official mail from HMRC and Companies House, with email notifications, scanning, or postal forwarding options. Mail Scanning & Forwarding Providing scanned copies of letters via email. Physical mail can be forwarded to a specified address (postage fees may apply). Enhanced Address Services Some addresses can also serve as a business correspondence address, enabling receipt of customer or partner mail—not just government letters. If you have questions about your company address or would like to learn more about setting up a UK company or using our agent address services, contact our team for more information.  For individuals and businesses looking for UK taxation services, use our contact form to get in touch for more information. Get in touch with us at info@tbgroupuk.com  or for a free one-to-one consultation.  This article is intended as general guidance only, and does not replace any legal or professional advice.  For enquiries, please contact  TBA Group  via  email  or  WhatsApp .