London Underground prices are going up, some ticket types increase by up to 7.1% From 1 March, London Underground fares have increased again, with some ticket types rising by as much as 7.1%. Peak fares in Zone 1 have seen particularly noticeable increases. Under the new changes, a peak single fare in Zone 1 has risen from £2.90 to £3.10, while the off-peak fare has increased from £2.80 to £3.00.   At the same time, National Rail fares across the country will be frozen to help ease cost of living pressures. However, London Underground fares will not be subject to a similar cap. London Mayor Sadiq Khan said the fare increase was one of the conditions attached to the government’s funding support for major Transport for London (TfL) infrastructure projects, a requirement stemming from last year’s public spending review.   Fare Changes on Selected Routes   This increase forms part of the annual fare adjustment. In recent years, London Underground fare rises have generally outpaced inflation.   Examples of the latest increases include:   Tottenham Court Road (Zone 1) to Edgware (Zone 5): from £3.60 to £3.80 Richmond (Zone 4) to Stratford (Zone 2), off-peak avoiding Zone 1: from £2.20 to £2.40 Upminster (Zone 6) to Cannon Street (Zone 1), peak: from £5.80 to £5.90 Piccadilly Line, Zone 1 to Heathrow Airport: from £5.80 to £5.90   In addition, fares on the Elizabeth line between central London and Heathrow Airport will increase from £13.90 to £15.50, a rise of 11.5%.   Some Positive News for Regular Passengers   There are, however, some measures that remain unchanged:   Travelcards and daily fare caps will be frozen until March 2027. Concessions such as the Zip Photocard, 18+ Student Oyster card, 18–25 Railcard-style discounts, and the 60+ Oyster card will remain unchanged. London bus and tram fares will be frozen until July 2026. The “Hopper Fare” will stay at £1.75, allowing unlimited bus transfers within one hour.   In addition, regulated intercity rail fares will also be frozen in line with commitments made in last autumn’s Budget. This applies to commuter season tickets, peak return fares, and off-peak returns between major cities, with the freeze expected to last until March 2027.   The fare increase has drawn criticism from some members of the public and campaign groups. The advocacy group Fare Free London has called for fully free public transport, arguing that raising fares amid ongoing cost of living pressures will further burden residents. In response, Sadiq Khan stated that the government’s £2.2 billion investment in TfL was conditional on London Underground fares rising by inflation plus 1%. He added that efforts had been made to limit the impact, with contactless “pay as you go” fare increases capped at 20 pence, and many fares rising by only 10 pence.   Unless the government intervenes again or announces a further freeze, London Underground fares are typically reviewed and adjusted each March. Read more... Replacement Lifetime ISA for first-time buyers only   HMRC has confirmed plans to introduce a new Individual Savings Account (ISA) designed specifically for first-time buyers, replacing the Lifetime ISA (LISA) as a home-buying savings product rather than a retirement savings tool.   Under the proposal, the government bonus for the new product will no longer be paid with each contribution, as is currently the case with the Lifetime ISA. Instead, the subsidy will be granted as a one-off payment at the point of property purchase. This approach effectively marks a return to the model previously used by the Help to Buy ISA, which was withdrawn in 2019.   The government’s decision is partly driven by ongoing criticism of the high withdrawal penalties associated with the Lifetime ISA. At present, savers who withdraw funds for purposes other than buying a first home are subject to a 6.25% withdrawal charge.   The policy also clarifies that, until the new product is officially launched, individuals can still open a Lifetime ISA, and existing account holders may continue to contribute under the current rules. The annual contribution limit for the Lifetime ISA will remain at £4,000, at least until April 2031.   Rachel Vahey, Head of Public Policy at AJ Bell, noted that since its launch in 2017, the Lifetime ISA has helped thousands of young people get onto the property ladder, but the scheme has not been without flaws. She said it is unsurprising that a new model is being considered as a replacement. According to Vahey, paying bonuses upfront means they must be clawed back if the funds are not used for their intended purpose, which has contributed to frequent issues with withdrawal penalties. Moving the subsidy to the point of purchase would make the system simpler to administer.   However, financial experts have also raised concerns about how transfers from existing Lifetime ISAs will be handled under the new scheme. Industry commentators warn that a policy focused solely on home-buying support could reduce options for those who have been using the Lifetime ISA as a long-term retirement savings vehicle. For self-employed individuals or those without access to workplace pensions, the ability to continue saving in existing Lifetime ISAs provides some continuity, but it does not fully address the broader need for long-term retirement savings solutions. Read more... Rate of small employer relief for statutory payments to increase   HMRC has confirmed that from 6 April 2026, the compensation rate under the Small Employers’ Relief (SER) scheme for certain statutory payments will be increased.   This change means that employers who qualify for SER will be able to reclaim a higher percentage of costs from HMRC after paying statutory benefits to employees, helping to ease financial pressure on businesses. The compensation rate will rise by one percentage point, reaching 9%.   Eligible statutory payments that can be reclaimed include:   ● Statutory Maternity Pay ● Statutory Paternity Pay ● Statutory Adoption Pay ● Shared Parental Pay ● Parental Bereavement Pay ● Neonatal Care Pay   Currently, UK employers can generally reclaim 92% of the statutory payments they make to employees.   Under the Small Employers’ Relief rules, businesses that paid less than £45,000 in Class 1 National Insurance in the previous tax year may qualify to:   ● Reclaim 100% of statutory payments made; and ● Receive an additional compensation amount.   This additional compensation will increase from the current 8.5% to 9% for the 2026–27 tax year. In addition to the increase in the SER compensation rate, several important employment-related changes will take effect in April 2026:   ● The National Minimum Wage will rise by up to 7%, depending on the worker’s age; ● New “Day One Rights” for employees will be introduced, including: ○ Statutory sick pay rights ○ Parental leave rights ○ Protection against unfair dismissal ○ Safeguards relating to zero-hours contracts   These changes will come into force under the Employment Rights Act 2025 and will affect businesses of all sizes across the UK.   Businesses are advised to review whether they qualify for Small Employers’ Relief and assess the impact of the new rules on payroll and tax planning. Seeking advice from a professional tax adviser can help ensure compliance and optimise cost management. Read more... Why TB Accountants? Professional Assurance : Our team includes ACA members and ACCA-certified professionals, delivering services to the highest industry standards. Responsive Service : We respond to your inquiries within 24 hours, ensuring efficient communication across time zones. Multilingual Support : Services available in English, Mandarin, Cantonese, Japanese, French, German, Spanish, Italian, Turkish, and more. Trusted by Clients Worldwide : Consistently praised by global clients for proactive, professional, and reliable accounting and tax support. For individuals and businesses looking for UK taxation services, use our contact form  to get in touch for more information. Get in touch with us at info@tbagroup.uk  or for a free one-to-one consultation.  This article is intended as general guidance only, and does not replace any legal or professional advice.  For enquiries, please contact  TBA Group  via  email  or  WhatsApp .

In the UK, many people hold a stable full-time job as an employee while using their spare time to develop a side hustle.  For example, they might work a normal day job and tutor in the evenings, run an e-commerce shop online at weekends, or even provide professional consulting services during their free time.  The question then arises:  Can an individual be both an employed member of staff and a self-employed person?  And if so, will there be conflicts regarding tax returns, National Insurance, and pension contributions? You can be both an employee and self-employed From a legal and tax perspective, there are no regulations prohibiting you from being both an employee and a sole trader.  HMRC does not concern itself with how many jobs you have.  Rather, they are concerned with whether all income is truthfully declared and taxed. Therefore, if you have a formal job and are considering becoming self-employed, the real areas to pay attention to are the method of tax reporting, the types of tax and National Insurance to be paid, and whether your employment contract allows for additional work. Check your employment contract before starting a side hustle Although HMRC will not stop you from running a side business, your employer may not be entirely supportive.  Many employment contracts contain clauses regarding 'outside work', which may require individuals to obtain written permission before engaging in a side hustle, restrict employees from engaging in activities that compete with the employer’s business, or prohibit any behaviour that might damage the employer’s reputation.  If you are unsure whether your side hustle is permitted, the safest approach is to consult your HR department or line manager before starting. Additionally, UK working time regulations usually stipulate that an employee’s average working hours must not exceed 48 hours per week (usually averaged over 17 weeks), unless they have voluntarily signed an opt-out agreement.  However, this limit applies only to working hours under an employment relationship and does not include self-employed activities. This means the time an individual spends running a side hustle falls outside these regulatory limits. Declaring side hustle income Once you have determined that you can proceed with a side hustle, whether you need to register with HMRC and file taxes mainly depends on the income level of the side business. If your total gross income within a tax year does not exceed £1,000, you can usually use the 'trading allowance'. In this case, you generally do not need to register for Self Assessment. However, once the total income exceeds the £1,000 threshold, you must register for Self Assessment and declare your self-employment income each tax year. After registration is complete, your main job will not be affected. Your employer will still deduct income tax and National Insurance through the PAYE system. Your personal self-employment income, however, will be combined with your salary income when you complete your tax return each year. Particular attention must be paid to registration and payment deadlines. You need to complete registration by 5 October following the end of the tax year in which you started generating self-employment income.  For example, if you start receiving self-employment income in June 2025, you must complete registration by 5 October 2026 and pay the relevant tax by 31 January 2027. If you miss these dates, HMRC may issue a penalty.  How tax and National Insurance apply Although salary income and self-employment income are ultimately combined for calculation, their taxation methods differ—full-time salary income is processed automatically through the PAYE system, with tax and National Insurance deducted directly when you are paid. Income you earn as a sole trader, however, must be declared separately and is taxed separately. After the tax year ends, HMRC will combine your two types of income to recalculate the income tax and National Insurance due for the whole year. If additional tax or National Insurance needs to be paid, this will be reflected during the Self Assessment calculation. It is worth noting that sole traders may also need to pay Class 4 NICs.  This is an additional cost on top of the National Insurance already paid as an employee, usually calculated as a percentage of profits. Many people starting a side hustle mistakenly believe that 'since I already pay National Insurance at work, I don’t need to pay it for my side hustle', but this is not the case. Watch out for changes to your tax code Many people find that the first change after starting a side hustle is an adjustment to the tax code on their payslip. After completing a Self Assessment registration for self-employment, HMRC sometimes adjusts the PAYE tax code to collect a portion of the estimated tax due from your salary in advance. This method can sometimes help spread the tax burden, but it is not always accurate. in some cases, you may overpay tax through your salary and have to claim a refund later; alternatively, you may underpay and have to make a lump-sum payment when filing your tax return. In such situations, common tax codes include: BR tax code: All income is taxed at the basic rate. K tax code: Used to recover tax owed from other income sources. Regardless of how your tax code changes, it is recommended that you regularly check whether your tax code matches your actual income situation. If in doubt, you should contact HMRC promptly. Impact on pensions and benefits As an employee, workplace pension schemes usually operate as normal, with both your employer and yourself continuing to contribute via PAYE as per regulations.  At the same time, individuals can make additional pension contributions using self-employment income. Relevant contributions to your chosen workplace and personal pensions can enjoy tax relief within the annual allowance. Regarding benefits, the situation is somewhat more complex. Sick pay, paid annual leave, and statutory maternity pay apply only to employment income. If an individual cannot continue running their side hustle due to illness or taking a break, there is no automatic safety net. Furthermore, sole traders can usually apply for Maternity Allowance (MA), but cannot receive Statutory Maternity Pay (SMP). Therefore, some people choose to purchase income protection insurance to mitigate risks. Some advice from TB Accountants  It is entirely feasible to run a self-employed side hustle while working a job, provided you truly understand the rules, comply with your employment contract, truthfully declare all income, and plan your overall tax affairs in advance.  Only on a compliant foundation can a side hustle become a robust channel for increased income rather than a future risk. It is particularly important to note that whether it is for income-based student loan repayments or the High Income Child Benefit Charge, HMRC calculates these based on total income, not just salary income.  Even if you are already making repayments through the PAYE system, you may still owe an additional amount due to self-employment profits after filing your tax return. This also means that as long as there is side hustle income, it must be incorporated into your overall financial and tax planning, rather than looking at salary levels on the surface alone. 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 has recently sent official letters to more than 200,000 taxpayers, warning them that they will soon be affected by a major tax reform – Making Tax Digital for Income Tax (MTD).  As the implementation date approaches, sole traders and landlords with annual gross income exceeding £50,000 will be mandatorily brought into the MTD regime from 2026. According to HMRC’s timetable, MTD will officially come into force on 6 April 2026.  With the policy now entering its countdown phase, affected taxpayers should begin preparing as early as possible to avoid unnecessary penalties arising from late or incorrect submissions. Mandatory inclusion where gross income exceeds the threshold At present, Making Tax Digital mainly applies to VAT.  However, the full digitalisation of Income Tax reporting will be phased in from 6 April 2026, primarily targeting sole traders and landlords. Unless an exemption applies, sole traders and landlords must use Making Tax Digital for Income Tax if they meet all of the following conditions: Registered for Self Assessment Have income from self-employment and/or property letting Have qualifying income* exceeding the MTD threshold * Qualifying income refers to the total annual gross income in a tax year from self-employment and/or property letting, before the deduction of any expenses or taxes. The following types of income are not included as qualifying income: Employment income (PAYE) Partnership income Dividend income, including dividends from your own company In addition, regardless of whether you live in the UK, if you earn rental income from UK property and are registered for Self Assessment, you fall within the mandatory scope.  As a result, non-UK resident landlords will also be affected by the new MTD rules. Making Tax Digital thresholds will reduce year by year From April 2026, individuals with annual income from self-employment and/or property exceeding £50,000 will be required to use Making Tax Digital for Income Tax. It is estimated that around 780,000 people will fall within this scope. Furthermore, the mandatory MTD threshold will be reduced progressively to cover more individuals: From 6 April 2027, landlords and self-employed individuals with annual income over £30,000 must register for MTD; From 6 April 2028, landlords and self-employed individuals with annual income over £20,000 must also register for MTD. In other words, within the next three years, the vast majority of landlords and self-employed individuals will inevitably be brought into the MTD system. From once a year to four times a year The introduction of Making Tax Digital represents a significant change to the timing of Income Tax reporting from the 2025–26 tax year onwards.  From 6 April 2026, eligible taxpayers will be required to submit quarterly updates to HMRC on a standardised schedule, rather than filing only one annual return. You may be wondering:  Does moving from one submission a year to four make tax reporting more burdensome?  Will my tax burden increase significantly? In fact, the core aim of MTD is to spread tax administration throughout the year, replacing the previous high-pressure January Self Assessment deadline, thereby improving efficiency and reducing the risk of errors.  In response to concerns about increased complexity, HMRC has emphasised that MTD does not require taxpayers to submit additional tax returns. Under the new model, taxpayers will indeed submit quarterly updates, but these are not full tax returns. Instead, they consist of brief summaries of income and expenses automatically generated by compliant software. This can be viewed as an ongoing digital bookkeeping process involving communicating data to HMRC four times a year, rather than submitting everything in one go in January. If errors are identified during the reporting process, taxpayers can correct them in the next quarterly update, without waiting for the annual return or submitting additional documents, improving both flexibility and accuracy. Making Tax Digital for businesses — VAT As HMRC will automatically enrol all newly VAT-registered businesses into Making Tax Digital for VAT, unless they are exempt or have applied for exemption, there is no need to register separately. Businesses simply need to use compatible software to keep VAT records and submit VAT returns. How to register for MTD for Income Tax Before starting the registration process, please ensure you have the following information ready: A Government Gateway ID (if you do not have one, it can be created during registration) Your National Insurance number Business details (such as business name and start date). Landlords must also provide evidence of rental income (for example, rent statements) The name of the MTD-compatible software you are using or plan to use (such as QuickBooks, Xero or FreeAgent) Taxpayers must use HMRC-recognised software to automatically record transactions, categorise income and expenses, submit quarterly updates and final declarations, and provide tax forecasts and reminders.  Common software options include Xero, QuickBooks, FreeAgent, Sage and 123 Sheets. Once the steps have been completed, HMRC will notify you by email or text within five to seven days to confirm whether registration has been successful. If you are unfamiliar with digital systems or have multiple sources of income, you may also appoint an accountant or tax advisor to register on your behalf. The view from TB Accountants  With only a few months remaining before Making Tax Digital for Income Tax comes into effect, now is the right time to start preparing.  Whether you fall within the MTD scope depends on gross income, not net profit. Even if you also have employment or investment income, you may still be required to use MTD if your self-employment or property income exceeds the threshold. The taxation system is undergoing a structural transformation. The earlier you adapt, the smoother the transition will be. 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 introduces GOV.UK One Login for new customers From 9 February 2026, new customers registering for digital services with HM Revenue and Customs (HMRC) can log in using GOV.UK One Login, without needing to create a traditional 10–12 digit Government Gateway ID. Under this streamlined process, users only need an email address and password to access HMRC services.   GOV.UK One Login is the UK government’s planned unified online login system, which will eventually cover all government digital services. Users only need to register once to use the same login for managing taxes, applying for passports, registering to vote, and more. By verifying their identity once, users can reuse their login across different government services, saving time when interacting with the government online.   HMRC stated that the rollout of the new system will be gradual and closely monitored. Customers who already have a Government Gateway account do not need to switch immediately; they can continue using their existing account and will be notified when it is time to move to GOV.UK One Login. If a user already has a GOV.UK One Login for other government services (such as managing their state pension or Companies House services), they will still need to use their Government Gateway account to access HMRC for now.   With the addition of HMRC’s tax services, more than 200 government services will now be accessible via GOV.UK One Login. Anyone needing extra assistance with GOV.UK One Login can contact the Government Digital Service for support. Read more... Some London boroughs have tax revenues exceeding those of larger cities combined   HMRC Data Shows UK Income Tax Highly Concentrated in London and the Southeast The latest data from HM Revenue & Customs (HMRC) shows that total UK income tax revenue reached £240.7 billion in the 2022/23 fiscal year, but the distribution of this revenue is highly uneven across regions. London and the Southeast of England continue to be the core contributors to the UK’s public finances, with some London boroughs paying more income tax than several major cities combined.   According to the data, Wandsworth in London paid £4.26 billion in income tax in 2022/23, surpassing the combined total of £4.23 billion from Leeds and Birmingham. At the same time, Hackney in London contributed £1.54 billion, exceeding the £1.35 billion paid by Glasgow, Scotland’s second-largest city.   Overall, London and the Southeast accounted for 45% of total UK income tax revenue in 2022/23, with London alone contributing 26.5%.   The report also highlights that the 20 UK regions with the highest per capita income tax contributions are all located in London or the Southeast. This is not only due to the high concentration of high-income earners in these areas, but also reflects recent tax policies such as frozen tax thresholds and the so-called “fiscal drag” effect—whereby rising incomes push more taxpayers into higher tax bands over time, increasing revenue.   Analysts note that London and the Southeast have a high proportion of taxpayers subject to the top 45% income tax rate, which has long contributed to the region’s outsized tax revenue. In April 2023, the threshold for the 45% additional rate was lowered from £150,000 to £125,140, further increasing the tax burden on high earners in these regions.   Moreover, since April 2021, the UK’s personal allowance and higher-rate threshold have been frozen. As incomes rise, more taxpayers are pushed into higher tax bands, creating the “fiscal drag” effect and further boosting revenue.   Looking at long-term trends, over the ten-year period from April 2016, London’s income tax revenue rose from £35.3 billion to £63.8 billion, an increase of 80.7%, compared with 48.4% in the rest of the UK.   Analysts involved in the report emphasize that freezing allowances and lowering the additional rate threshold have significantly increased London’s contribution to UK tax revenue over the past decade, exceeding an 80% rise. They also warn that the UK’s heavy reliance on London and the Southeast for tax revenue could pose long-term challenges to the competitiveness of the tax system. Persistently high tax burdens may encourage some high-income earners to relocate overseas or reduce their economic activity. Read more... Amazon pays £1bn to UK taxman   US tech giant Amazon recently reported that its revenue in the UK reached £29 billion in 2024, with a total tax payment of £1 billion, representing a 7% increase compared with the previous year. Amazon emphasized that its total “taxes borne and collected” amounted to £5.8 billion, up from £4.3 billion in 2023, a year-on-year increase of 34%. This total includes employment taxes, business rates, value-added tax (VAT), plastic packaging tax, stamp duty land tax, and corporation tax.   Amazon stated that it is one of the “top ten taxpayers in the UK.” In 2024, the company paid £500 million in employer taxes in the UK, mainly employer National Insurance contributions (NICs), and £175 million in business rates. Amazon noted that the rise in business rates is partly due to the expansion of its physical store presence.   Globally, Amazon now employs more than 1.5 million people, including 75,000 in the UK. These roles span software development, product management, and engineering, as well as positions in fulfillment centers, sortation centers, and delivery stations.   Amazon also announced plans to invest £40 billion in the UK between 2025 and 2027, aiming to create thousands of permanent jobs, including over 2,000 positions outside London and the Southeast.   In 2024, Amazon’s capital investment in advanced robotics technology reached £1.6 billion. This investment includes building four new fulfillment centers and new delivery stations nationwide, as well as upgrading and expanding its existing network of more than 100 operational facilities. 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 .

A new First Year Allowance policy in the UK officially came into effect on 1 January 2026—offering a permanent 40% First Year Allowance (FYA) on qualifying plant and machinery for UK companies. This policy marks another significant step by the UK in improving the business and investment environment. The Treasury stated that this measure aims to encourage businesses to undertake capital investment, providing significant upfront tax relief for both incorporated and unincorporated businesses, thereby supporting business growth and economic development. Key details of the new policy for UK Companies According to the new regulations, the main details of the First Year Allowance (FYA) include: 40% First Year Allowance: businesses can claim a 40% First Year Allowance on qualifying main rate plant and machinery Applicable to leased assets: assets purchased for leasing purposes are also eligible for this relief Coverage for unincorporated businesses: unincorporated businesses, which were previously unable to benefit from full expensing, are now included in the scope Long-term stability: this allowance is a permanent policy, providing long-term certainty for business investment planning This new First Year Allowance policy builds upon the existing capital allowance system, giving the UK a distinct corporate advantage amongst OECD nations and further strengthening domestic investment incentives.  Full expensing still applies The new allowance policy complements the existing full expensing system. Full expensing allows companies to claim a 100% capital investment deduction in the year they purchase qualifying plant and machinery (such as warehouses or production equipment), meaning the entire cost is deducted from taxable profits. For incorporated businesses, this system remains applicable: for every £1 invested, up to 25p in tax can be saved, corresponding to the current corporation tax rate. Practical impact on businesses This change is particularly relevant for businesses investing in equipment, infrastructure, logistics, manufacturing, and other capital-intensive operations. Chancellor Reeves pointed out that encouraging business investment is key to driving economic growth and enhancing market confidence.  Upon the launch of these new tax incentives, policy commitments were reiterated, including: Maintaining the corporation tax cap at 25% for the remainder of this parliament (the lowest in the G7) Maintaining a stable and competitive corporation tax environment Supporting fast-growing businesses and long-term capital investment As part of fiscal balancing, the UK government proposed in the 2025 Budget that, from April 2026, the Writing Down Allowance (WDA) for main rate assets will be reduced from 18% to 14%. The view from TB Accountants  With the 40% First Year Allowance (FYA) policy having officially come into effect on 1 January 2026, businesses can now enjoy significant upfront tax relief on capital investments such as plant and machinery.  This policy complements the existing full expensing system, not only reducing the initial tax burden for companies but also providing long-term, stable investment incentives for unincorporated businesses and leased assets. For enterprises planning to expand into overseas markets and establish a presence in the UK, this period is undoubtedly the best time to enter. 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 .

10-year permanent residency plan criticised as ‘unfair’, triggering sharp divisions within the Labour Party The closely watched and controversial public consultation on the UK’s proposal to extend the route to permanent residency for work visa holders to 10 years is set to close on 12 February. The consultation seeks views on transitional arrangements for people already on the path to permanent settlement. Under the plan, the minimum qualifying period for skilled worker visa holders to apply for permanent residency would be extended from the current five years to 10 years.   According to UK media reports, the proposal has triggered strong discontent within the Labour Party. Around 40 Labour MPs have voiced opposition to changes to the permanent residency rules, arguing that the policy would have retrospective effect and is “unfair” to lawful migrants already living in the UK—likening it to “constantly changing the rules after the game has started”.   Permanent residency—also known as Indefinite Leave to Remain (ILR)—allows individuals to live, work and study in the UK on a long-term basis, and to access public benefits if they meet the relevant conditions.   Under the reform proposals, the standard qualifying period for permanent residency would be extended to 10 years, though this could be shortened or lengthened depending on individual circumstances. For example, high earners, those entering under the Global Talent visa, or taxpayers paying higher rates of tax could see the qualifying period reduced from 10 years to as little as three years.   For those entering the UK on post-Brexit health and social care visas, the waiting period to apply for permanent residency would be extended to 15 years. In addition, if an applicant has relied on welfare benefits or other forms of public assistance while in the UK, the qualifying period for settlement could be extended further.   However, individuals who have already been granted permanent residency would not be affected by the new rules.   Labour MPs opposing the proposal have warned that the reform could worsen skills shortages in the UK, particularly in the care sector. They point out that many care workers are low-paid but essential to society, and that extending the waiting time for permanent residency could undermine the UK’s ability to attract such workers.   In response to internal criticism, Home Secretary Yvette Cooper has firmly defended the policy. She said the UK has experienced migration on an “unprecedented scale” in recent years, and that “such large numbers of people arriving in unusual ways” require a government response.   Home Office data show that between 2021 and 2024, the UK’s net migration (the difference between arrivals and departures) increased by a total of 2.6 million. Projections suggest that around 1.6 million people could be granted permanent residency between 2026 and 2030.   The retrospective nature of the policy is at the heart of the widespread anxiety and controversy surrounding it. Some MPs have asked whether people who are already eligible to apply for permanent residency, but have not yet done so for financial reasons, would be affected once the new system comes into force. In response, the Home Secretary said that settlement applications are “always assessed under the rules in force at the time the application is submitted”, and that this approach does not represent a new change.   Critics have also argued that the Home Office has been ineffective in tackling illegal migration, while imposing stricter requirements on lawful migrants—an approach they say is “inconsistent with Britain’s tradition of fairness”. Earlier, the Home Office acknowledged that it could not guarantee a reduction in the number of people crossing the English Channel in small boats over the next 12 months.   Official figures show that in 2025, a total of 41,472 migrants arrived in the UK by small boats, an increase of nearly 5,000 compared with the previous year. Read more... From water to council tax, household bills are going up in April 2026   The UK’s new tax year will begin on 1 April 2026, bringing a fresh round of changes to household bills. While not all costs have yet been confirmed, some price rises have already been announced, and others follow established annual patterns—meaning many households are likely to see higher bills.   Water bills – rises confirmed   In England and Wales, water companies have confirmed an average increase of around 5.4%, meaning a typical household will pay about £30–£35 more per year. The exact increase will vary depending on the provider. In Scotland, water charges are collected alongside council tax, with early estimates pointing to rises of around 8%–9%. Northern Ireland does not levy separate domestic water charges.   Council tax – increases expected   Council tax is set by local authorities. Most English councils are expected to raise council tax again in April, with increases often close to the maximum level allowed without a local referendum (5%). For households living in a Band D property, this could mean paying an additional £80–£120 per year, depending on location.   Energy bills – yet to be confirmed   The energy price cap, which limits what suppliers can charge households on standard variable tariffs, is reviewed every three months. The next cap, covering April to June 2026, has not yet been announced and is expected to be confirmed on 26 February. Current forecasts suggest the cap could fall slightly due to lower wholesale energy prices and changes in policy costs. However, energy markets remain highly volatile, and projections could change quickly.   Mortgages – dependent on interest rates   Mortgage costs are not directly tied to the tax year. Future mortgage repayments will depend on interest rate decisions made by the Bank of England throughout the year. While rates are widely expected to ease gradually, borrowers coming off older low-rate deals may still face higher repayments than before.   Other costs that often change in April   A number of other household expenses are also commonly adjusted at the start of the tax year, including:   Vehicle Excise Duty (VED) Public transport fares Certain insurance premiums, such as car and home insurance   Not all of these changes have been confirmed for April 2026, but many typically rise broadly in line with inflation. Read more... Bank of England keeps interest rates at 3.75%, unemployment to Rise Again   The Bank of England’s Monetary Policy Committee (MPC) voted to keep the benchmark interest rate unchanged at 3.75%, but signalled that conditions for rate cuts could emerge in the coming months as cost-of-living relief measures in Chancellor Rachel Reeves’s budget help push inflation lower. Since mid-2024, the Bank of England has cut interest rates six times in total. Governor Andrew Bailey voted in favour of holding rates steady, saying: “We currently judge that inflation will fall back to around 2% this spring. To ensure that inflation can remain sustainably at that level, we decided to keep the rate at 3.75%. If progress continues as expected, there remains scope for further rate cuts later this year.” In its latest Monetary Policy Report, released alongside the rate decision, the Bank downgraded its forecast for UK economic growth in 2025 to 0.9%, down from 1.2% projected three months earlier. The report also highlighted that measures announced by Chancellor Reeves to reduce energy costs and freeze rail fares, due to take effect in April, are expected to drive inflation down “by significantly more than previously anticipated”. Inflation is now forecast to fall to 2.1% by the second quarter of 2026—slightly above the government’s 2% target, but well below the 3.4% recorded in December last year. Following the announcement, financial markets priced in around a 50% chance of a rate cut at the Bank’s next policy meeting on 19 March. However, the Bank also warned that while inflation is easing, the labour market may weaken more than previously expected. It now forecasts the UK unemployment rate to rise to 5.3% in 2026, compared with an earlier estimate of 5%. The report noted that the Labour government’s increase in employer National Insurance contributions (NICs), alongside rises in the minimum wage, has weighed on employment growth over the past 12 months. Policymakers said these factors are also helping to curb rapid wage growth, which had previously been seen as a potential driver of higher inflation. Read more... Why TB Accountants? Professional Assurance : Our team includes ACA members and ACCA-certified professionals, delivering services to the highest industry standards. Responsive Service : We respond to your inquiries within 24 hours, ensuring efficient communication across time zones. Multilingual Support : Services available in English, Mandarin, Cantonese, Japanese, French, German, Spanish, Italian, Turkish, and more. Trusted by Clients Worldwide : Consistently praised by global clients for proactive, professional, and reliable accounting and tax support. For individuals and businesses looking for UK taxation services, use our contact form  to get in touch for more information. Get in touch with us at info@tbagroup.uk  or for a free one-to-one consultation.  This article is intended as general guidance only, and does not replace any legal or professional advice.  For enquiries, please contact  TBA Group  via  email  or  WhatsApp .

In the latest Autumn Budget, a £2,000 annual cap was set on the National Insurance (NI) exemption for pension contributions made via salary sacrifice.  On the surface, this appears to be a fix targeting high earners.   However, upon closer inspection, those truly affected are the middle-income groups who are diligently planning for their retirement. This change is quietly altering the pension strategies of millions of British workers. Millions choose salary sacrifice for pension contributions Salary sacrifice is a voluntary agreement between an employee and their employer, where a portion of nominal salary is converted into a benefit paid directly by the employer—the most common form being pension contributions. Since the 'sacrificed' portion of the salary is transferred into the pension account before it is paid out, employees do not need to pay income tax or National Insurance on it, and employers can also save on their corresponding National Insurance contributions.  This mechanism not only improves the efficiency of pension savings but has also served as an effective means for middle-to-high earners to optimise their tax burden for a long time. According to Treasury data, approximately 7.7 million people currently contribute to pensions through salary sacrifice, representing about one-fifth of the UK workforce. NI exemption cap to be implemented from April 2029 From April 2029, only the first £2,000 of pension contributions made via salary sacrifice each year will be exempt from National Insurance.  This means that any portion exceeding £2,000 will be treated by the tax system as a standard employee pension contribution. Consequently, both employees and employers will need to pay National Insurance on this excess, resulting in higher individual tax bills and increased labour costs for employers. The current National Insurance thresholds are as follows: 8% on annual earnings below £50,270 and 2% on earnings above that amount, with the employer contribution rate set at 15%.  Middle earners become the primary victims The Treasury claims that the majority of people will be unaffected.  Statistically, this is correct – roughly 74% of basic-rate taxpayers will not reach the £2,000 cap. However, the problem is that the people who will be hit are often those most actively saving for their pension. For example, an employee earning £40,000 a year who contributes the common minimum of 5% to their pension would hit the £2,000 exemption cap exactly, incurring no extra tax. But as soon as the contribution rate is increased, even from 5% to 6%, the excess portion will begin to incur National Insurance costs. This leads to a counter-intuitive conclusion: those who feel the 'most pain' from the National Insurance increase are actually those whose income sits right at the £50,270 threshold. If an individual earns £50,270 per year (the upper limit for the basic rate) and continues to save only the minimum 5% into their pension, the amount paid via salary sacrifice would exceed the £2,000 cap by £513.50. As a result, they would have to pay an additional £41.08 in National Insurance. Interestingly, if their income were just £1 higher, officially entering the higher-rate tax bracket, the situation would look 'better'. Because the National Insurance rate for higher-rate taxpayers drops to 2%, the same excess portion would only increase their tax bill by £10.27. If an individual earns £105,000 and contributes £10,000 to their pension via salary sacrifice, under the new rules, only the first £2,000 is exempt from National Insurance. The remaining £8,000 would be subject to NI. However, because they are a higher-rate taxpayer, the NI rate is only 2%, meaning the extra National Insurance paid for the year would be just £160. Therefore, for high earners, this is an increase in cost, but not a devastating blow.  Following this analysis, one might ask – is this truly a crackdown on the wealthy?  Perhaps not. Proportionally, high earners face smaller marginal losses due to the lower NI rate (2%), whereas middle earners who want to save more for retirement but still fall within the 8% NI bracket are most likely to be caught in the middle. For those with annual incomes approaching the £50,270 basic-rate threshold, the new National Insurance deductions are more noticeable in percentage terms. Once income crosses this threshold and the NI rate drops from 8% to 2%, the additional burden actually decreases. This 'threshold effect' means some upper-middle-income earners may face higher relative pressure under the new policy than those with even higher incomes. The real signal from this policy is that the government is no longer encouraging the optimisation of tax bills through salary sacrifice, but rather wants pensions to return to their essence as long-term savings.  However, while the rules may have changed, individual retirement pressures have not. Maximising funds under the new regulations In the face of this change, the consensus among several UK financial experts is that, if personal finances allow, individuals should make the most of salary sacrifice to increase pension contributions before the policy officially takes effect. This does not mean blindly increasing the salary sacrifice ratio, but rather rationally assessing cash flow, living costs, and long-term goals to optimise pension savings within an affordable range. Of course, not everyone is in a position to increase their stakes in advance.  Under the pressure of high inflation and the cost of living, many families are more concerned with immediate cash flow stability. For these people, maintaining a sustainable contribution level and regularly reviewing pension arrangements remains the most realistic and important strategy. One should also be wary that salary sacrifice reduces nominal salary levels, which may affect mortgage applications, eligibility for social benefits, and other financial aspects.  Furthermore, it must not bring earnings below the statutory minimum wage. All these factors require careful consideration before making a decision. The view from TB Accountants In the long run, the new cap does not mean the end of pension planning, but rather a change in approach.  Even without using salary sacrifice, individuals can still obtain income tax relief through standard pension contributions; it simply requires more administrative effort when filing tax returns or adjusting net income calculations. Overall, the introduction of the £2,000 salary sacrifice cap marks a shift in UK pension tax incentives to targeted support.  For individuals, the key is not whether to continue contributing to a pension, but how to plan more cleverly under the new rules. The earlier you understand the changes and begin to adjust, the more prepared you will be when facing tax and retirement issues in the future. 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 households urged to consider 25% pay cuts ahead of HMRC punishment As the issue of high tax burdens imposed by HMRC continues to spark controversy in the UK, a growing number of high-income earners are considering voluntarily cutting their salaries to avoid what they describe as “punitive taxation.” One British pilot has publicly revealed that he chose to take a 25% pay cut in order to avoid facing sharply higher taxes once his income crossed a key threshold.   The 41-year-old pilot, Brown, said that after his annual salary exceeded £100,000, he discovered that more than half of his income was going toward taxes. Under the current tax system, income above £100,000 up to £125,140 is subject to an effective marginal tax rate of 60 pence for every additional £1 earned, resulting in a marginal tax rate as high as 60%.   Speaking in an interview, Brown said: “In my view, anything above a 50% tax rate is a tipping point. You’re giving more than you’re getting back — it feels like being punched in the face.” To avoid this “high-tax trap,” he decided to work only three weeks a month, reducing both his workload and income by 25%, and using the extra time to help his partner, Danisa, run her business.   He was blunt in his criticism, saying the tax policy actually undermines motivation to work. “I’m deliberately limiting my earning potential, paying less tax, and becoming less productive. In the end, everyone loses — individuals, society, and consumers,” he said, calling the policy “fundamentally flawed.”   Brown added that such tax policies actively discourage work. He noted that most people earning close to or around £100,000 do not have the flexibility his job allows. “They either cut back on working hours, curb their career ambitions, or funnel all their income into pensions. Ultimately, the economy loses both their output and the potential growth in tax revenues.”   In the same report, another taxpayer expressed strong dissatisfaction: “If you do an extra £1,000 worth of work and only take home £380, the return is just too low. In that situation, I’d rather work only three or four days a week.” He added sarcastically, “I’ll put my feet up and take the dog for a walk in the woods.”   Analysts say this phenomenon highlights the potential negative impact of the UK’s high-income tax system on work incentives and economic vitality, and has once again reignited widespread debate over tax reform. Read more... HMRC cracks down on “speculative” stamp duty refund claims, recovering an average of £66,000 per case   As HMRC intensifies its crackdown on “speculative” tax refund claims, both the number of investigations and the amount of tax recovered have risen sharply. Notably, the number of homebuyers investigated for underpaying stamp duty doubled last year.   In the 2024/25 tax year, more than 3,000 taxpayers were investigated for allegedly avoiding or underpaying stamp duty. HMRC recovered an average of approximately £66,000 per case, bringing the total amount recovered to around £201 million. By comparison, in the 2023/24 tax year, only 1,617 homebuyers were investigated, with £85.4 million recovered. HMRC said the sharp increase was largely driven by its targeted scrutiny of stamp duty refund claims. In October 2025, the tax authority publicly warned homebuyers not to trust so-called “no win, no fee” stamp duty refund services promoted by rogue agents on social media.   According to HMRC, in many cases these agents incorrectly tell buyers that properties requiring renovation qualify for lower stamp duty rates. HMRC stressed that such claims are often inaccurate and speculative, and may not only be rejected but also result in higher back taxes and penalties.   HMRC further clarified that even properties requiring substantial renovation may still be classified as residential property and therefore do not qualify for reduced stamp duty rates. A 2024 ruling by the UK Court of Appeal made it clear that unless a property has serious structural safety issues, it should still be regarded as residential—even if it requires a new kitchen or extensive rewiring.   The tightening of stamp duty enforcement has also been linked to a high-profile political case involving former Deputy Prime Minister Angela Rayner. Last year, a media investigation revealed that Rayner had underpaid stamp duty by tens of thousands of pounds when purchasing a flat in Hove, forcing her to resign from her post. Rayner said she had mistakenly believed she qualified for an exemption from the higher stamp duty rate applied to second homes.   Industry experts note that the public attention surrounding Rayner’s case may have prompted HMRC to step up enforcement further, particularly in transactions involving second homes. They expect HMRC to intensify scrutiny of multiple-property purchases going forward. Read more... Every pub in London to get 15% off business rates bill as £300m support package unveiled   Last week, UK Chancellor Rachel Reeves announced that every pub in England will receive a 15% reduction in its business rates bill, with bills effectively frozen at that level for the next two years. Under the £300 million support package for pubs and music venues, pubs are expected to receive around £100 million in additional financial support each year through to 2029.   The relief measures come in response to a business rates increase announced in last year’s Budget. Previously, pubs and music venues were facing sharply higher bills due to a significant rise in rateable values—based on estimated annual market rents—and the removal of a 40% sector-specific relief. Industry groups warned that by 2028, average bills for many pubs could rise by as much as 76%, potentially triggering widespread closures and job losses.   Earlier, amid dissatisfaction with the Autumn Budget, dozens of Labour MPs—including the Chancellor herself—had reportedly been refused entry by pub owners in protest.   However, other parts of the hospitality sector, including restaurants, hotels, and cafés, are not covered by the new relief. These businesses are expected to see their business rates bills rise by an average of 115% over the next three years, reaching approximately £111,300.   Speaking in the House of Commons, Treasury Minister Tomlinson said: “Pubs are the backbone of many communities and play a vital role in our social and cultural life. Given the unique and long-standing challenges faced by the pub sector, we will provide targeted support over the next three years.” He added that the government would further review valuation methods across hotels, retail, and the wider hospitality sector to ensure they more accurately reflect market conditions.   In recent months, several major restaurant groups, including TGI Fridays UK and Leon, have announced insolvency proceedings. 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 .

Running a successful business is no small feat.  Beyond daily operations, it requires forward planning, an accurate grasp of policy changes, and the timely fulfilment of various statutory obligations. To help business owners plan more effectively for 2026, we have compiled the 2026 UK Corporate Compliance Calendar which includes a list of key dates for the year. This covers tax filings, payment deadlines, employer obligations, and important policy trends to ensure your business remains organised and compliant throughout the year. 2026 UK Corporate Compliance Calendar January: Tax filing and payment deadlines For those registered for Self Assessment, such as the self-employed, sole traders, and landlords, 31 January is one of the most important tax milestones of the year. You must complete your online tax return and pay all tax due by midnight on this date. For 31 January 2026, this includes: Submitting your online Self Assessment tax return for the 2024/25 tax year. Failure to submit on time results in an automatic £100 penalty, which increases the longer the delay Paying the tax due for the 2024/25 tax year. This includes income tax, National Insurance contributions (NICs), capital gains tax, and other relevant charges Making the first 'payment on account' for the 2025/26 tax year. This is an advance payment towards your next tax bill, usually calculated based on your previous year’s liability. February: Companies House fee adjustments From 1 February 2026, Companies House will implement adjustments to its filing fees as follows: Online company incorporation fee: increasing from £50 to £100 Annual filing fee: increasing from £34 to £50 for online submissions, and from £62 to £110 for postal submissions Confirmation statement: online submission fees will rise from £34 to £50, while postal submissions will increase from £71 to £124 Voluntary strike-off: the fee for online applications will decrease to £13, and postal applications will decrease to £18 March: Spring Statement The Spring Statement is expected to be delivered on 3 March 2026.  At this time, the Chancellor will provide an update on the economic situation and public finances, and announce measures that may affect businesses. Business owners should pay close attention to these updates. April: Start of the new tax year and employer-related changes April is one of the months with the highest concentration of policy changes in the UK, including the transition of the tax year: 5 April 2026 marks the end of the 2025/26 tax year. For businesses that report via Self Assessment or align their accounting year with the tax year, this is the final day of their accounting period 6 April 2026 marks the start of the 2026/27 tax year. Businesses must update employee payroll and salary records. By 19 April, the final Full Payment Submission (FPS) and Employer Payment Summary (EPS) up to 5 April must be submitted, and annual tax and National Insurance contributions must be settled According to the 2025 Autumn Budget, from 1 April 2026, the UK national minimum wage will increase as follows: Employees aged 21 and over: increasing to £12.71 per hour (from £12.21) Employees aged 18 to 20: increasing to £10.85 per hour (from £10.00) Employees under 18 and apprentices: increasing to £8.00 per hour (from £7.55) Additionally, from April 2026, the Employment Rights Bill is expected to introduce new employee protection measures.  For employers, this means a simultaneous increase in compliance costs and management requirements, including: Rights to paternity leave and unpaid parental leave from day one of employment Expanded statutory sick pay protections Establishment of a new independent Fair Work Agency Strengthened whistleblower protection mechanisms May: Local elections and P60 deadline UK local elections are expected to take place in May 2026.  Changes in local leadership can sometimes affect funding allocations, planning policies, or regional business priorities. Furthermore, employers must issue P60 forms for the 2025/26 tax year to all eligible employees by 31 May 2026.  Directors of limited companies who receive a salary must also issue a P60 for themselves. June: Update to Advisory Fuel Rates From 1 June 2026, new Advisory Fuel Rates (AFR) will come into effect. Businesses should update their mileage reimbursement and expense policies accordingly. July: Tax payments 31 July 2026 is the deadline for the second payment on account. The second instalment for the 2025/26 tax year must be paid by this date. August and September: Bank holidays and business activities The British Business Bank typically hosts Business Finance Week in September, featuring free online and offline events to help businesses understand the financing options available to them. October: HMRC deadlines and the Autumn Budget 5 October each year is the deadline to register for Self Assessment for the previous tax year.  If you started a business during the 2025/26 tax year but have not yet registered, you must notify HMRC by this date. Additionally, new partnerships formed or new partners added during the 2025/26 tax year must also complete their notifications to HMRC by this date. Typically, the Autumn Budget is announced in late October (the specific date for 2026 is yet to be confirmed). Relevant adjustments may affect taxation, immigration visas, or employer costs. November and December: Retail peak season and year-end preparation As the year draws to a close, Black Friday, Cyber Monday, and the Christmas holidays bring the busiest online shopping season of the year to the UK.  For e-commerce businesses, this is the best period for a marketing sprint, whilst many businesses use this time to organise records, review their financial situation, and prepare documents required for the January Self Assessment. The view from TB Accountants 2026 remains a year of challenges and new opportunities for UK businesses.  Mastering key tax milestones in advance and planning cash flow rationally can effectively avoid the risk of penalties and lay a solid foundation for the long-term steady development of your enterprise. Prepare accounts and documents as early as possible – do not wait until January of the following year to organise your data. Completing preliminary calculations before the end of the year helps reduce errors and alleviate filing pressure. Focus on cash flow and payment on account arrangements – payments on account are not an additional tax burden, but they significantly impact cash flow. Consider planning funds in stages to maintain operational flexibility. Evaluate employment and salary structures – in light of the minimum wage increase and related employment policy changes, re-examine your staffing and cost structures. Seek a professional accountant for tax filings – if you have doubts about tax filing processes, form completion, or key deadlines, it is advisable to appoint a professional accountant early to handle your accounts and filings, allowing you to focus on your business growth with peace of mind. 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 .

More than 5.6 million people overpaid tax in the 2023/24 financial year According to the latest data from the UK tax authority HMRC, in the 2023/24 tax year, more than 5.6 million people paid more personal income tax than they should have, with total overpaid tax reaching as high as £3.5 billion. Experts point out that the main reasons behind this issue are incorrect Tax Codes being issued and overly complex tax rules.   Tax Codes are issued by HMRC to help employers or pension providers calculate how much income tax should be deducted from wages or pensions. However, HMRC may make mistakes when issuing Tax Codes, which can result in taxpayers paying too much or too little tax.   Generally, Tax Code errors occur in the following situations:   The tax authority wrongly assumes an employee is still receiving company benefits such as a company car, private medical insurance, or a gym membership, when in fact these benefits are no longer provided; Inaccurate assumptions are made about additional income, such as rental income, dividends, or self-employed income that has already stopped; Confusion arises over the number of jobs a person has (for example, one full-time job plus several part-time jobs); The payslip information provided by the employer is outdated or delayed.   Please note that HMRC rarely corrects such errors automatically, so taxpayers need to check for themselves whether their Tax Code is correct. For many people, this issue may go unnoticed for a long time.   We recommend that taxpayers regularly review their Tax Code and annual PAYE tax summary—especially if you are working part-time, have non-PAYE income, or receive company benefits—in order to avoid overpaying tax due to incorrect information. Read more... Over £95,000 stolen from bank’s customers by ‘side hustle’ scammers last autumn   As this week’s Self Assessment deadline approaches, millions of self-employed individuals, landlords, and people with side jobs must complete their tax returns and pay any tax due on time and in compliance with the rules. At the same time, Santander UK has recently issued a warning, urging people who work part-time or have side hustles to stay highly alert to scam traps.   Santander UK said that, based on the bank’s data, between October and December 2025, criminals used the lure of “getting paid for completing tasks” to scam bank customers out of more than £95,000.   According to Santander UK, these scams usually attract victims with promises of “easy money,” such as claiming people can earn rewards simply by liking or sharing social media influencer videos. Scammers often pay small amounts at the beginning to create the illusion that “you really can make money,” gradually building the victim’s trust.   Victims may then be asked to: pay an upfront fee in order to continue taking part in tasks; download other messaging apps to contact a so-called “receptionist,” “mentor,” or other “members”; open an account on a cryptocurrency platform and move funds according to instructions.   Scammers will persuade victims to use their own money to “prepay for tasks,” promising higher returns and requiring them to transfer funds into accounts controlled by the scammers. When victims try to withdraw their money, they are often blocked. Scammers commonly claim the victim has a “low credit score” or has “not met the withdrawal threshold,” and then demand more money to “unlock” the withdrawal.   Research shows that people aged 20 to 55 are most frequently targeted in these cases. Criminals often impersonate staff from legitimate companies, using fake identities and carefully scripted language to appear more convincing.   Dr Rasha Kassem, a senior academic and head of the Fraud Research Group (FRG) at Aston University, pointed out that genuine part-time work or side hustles normally come with clear pay, formal terms and conditions, and do not require any upfront payments. Fake side hustles, however, imitate legitimate work processes to make the scam look “harmless and trustworthy.” Even if you genuinely earn a few pounds at the start, the moment you are told you must pay first in order to continue, it should be treated as a clear sign of fraud. Read more... Economy records 0.3% growth in November   Official data from the Office for National Statistics (ONS) shows that the UK economy grew by 0.3% in November this year, outperforming market expectations. Against the backdrop of earlier speculation around the Budget, which was widely seen as having dented market confidence, this figure provides the Chancellor with some breathing room.   Industrial production rebounded compared with the previous month, largely due to the gradual recovery of manufacturing activity at Jaguar Land Rover after a cyberattack in August. On a rolling three-month basis, the UK economy grew by 0.1% in the three months to November, an improvement on the revised “zero growth” recorded between August and October.   Markets had previously expected the Autumn Budget to signal further fiscal tightening, including potential increases in income tax, prompting businesses and consumers to act more cautiously. However, as these tightening signals faded, consumer spending picked up. Between September and November, the services sector—the backbone of the UK economy—was the only major industry to record growth, with particularly strong performance in November.   Meanwhile, the construction sector contracted again, posting its steepest three-month decline in nearly three years and continuing to face severe challenges for more than a year. Housebuilding has been hit hardest. Weak business confidence and higher-than-expected borrowing costs have raised concerns that the government’s target of building 1.5 million new homes in England by the end of the current parliamentary term may fall well short. 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 .

Walking through Brighton’s North Laine, the colourful shopfronts displaying handmade jewellery, the aroma of freshly baked goods drifting from corner cafés, and the distinctive character of vintage clothing shops were once the most compelling symbols of what was known as ‘the UK’s favourite independent shopping destination for Generation Z’.  These independent shops not only underpin the city’s international reputation, but also support 140,000 local jobs, accounting for one third of total employment. Today, however, shopkeepers’ sighs are becoming more frequent. The worry that ‘in ten years’ time, only large chain stores will be left’ is increasingly casting a shadow over the city.  Independent shops as Brighton’s spiritual core Brighton’s uniqueness lies in its ‘never ordinary’ independent DNA.  In The Lanes, North Laine and along the seafront, chain stores are few and far between. Instead, you will find beauty boutiques offering bespoke perfumes, galleries showcasing niche designers, and homeware shops preserving traditional craftsmanship. These businesses helped Brighton earn its title as ‘the UK’s best city for start-ups’ and are a major draw for visitors — after all, few people want to browse identical high streets in every city. The data underlines their value. Brighton’s central Business Improvement District has a vacancy rate of just 4%, far below the national average, while independent retail contributes a significant share of the local economy.  More importantly, 29% of UK consumers say that a greater presence of independent shops would encourage them to visit the high street more often, and 72% call on the government to increase support for small businesses. In Brighton, independent shops have never been just places to trade; they are the glue of the community, carriers of culture, and experiences found ‘only in Brighton’. Four major burdens crushing independent shops Behind the vibrant façade, Brighton’s independent traders are facing an unprecedented survival crisis: 1. Rising costs as a ‘fatal burden’:  Brexit has added customs charges and delays to imports, while post-pandemic increases in utilities and labour costs continue to bite. Business rates adjustments have compounded the pressure — some cafés have seen annual bills jump from £1,200 to £12,000. Even with relief schemes, rising National Insurance contributions and minimum wage increases create ongoing strain. 2. Out-of-control security as a ‘daily shock’:  Shop theft in Brighton stands at 193% of the national average, rising a further 16% over the past year, with 12,700 incidents recorded annually. Smashed windows and stolen goods have become routine. With limited police response, traders rely on WhatsApp groups to warn one another and protect themselves collectively. 3. Spatial squeeze as a ‘fight for survival’:  Private landlords and agents often favour chain retailers able to pay higher rents, leaving small independents struggling to secure suitable premises, let alone expand. At the same time, online shopping and new chain arrivals further dilute already fragile footfall. 4. A break in succession as a ‘future risk’:  High costs and low returns deter the next generation of entrepreneurs. Existing owners are ageing, yet successors are hard to find, placing years of accumulated expertise at risk of being lost. Some advice from TB Accountants Although tax policies for small and medium-sized enterprises are not designed specifically for businesses on the brink of insolvency, they can however reduce tax liabilities during trading and therefore lower accumulated tax debts, indirectly easing pressure at the point of failure.  Relevant measures include: 1. Corporation tax tiered rates: From 1 April 2023, SMEs with annual profits of £50,000 or less - a category covering most independent shops - benefit from a reduced rate of 19%. Profits between £50,000 and £250,000 are subject to a marginal rate between 19% and 25%, significantly below the standard 25% rate for large companies, directly reducing tax costs during operations. 2. R&D tax relief: If an independent shop has undertaken trade-related Research and Development (R&D) activities, such as innovative merchandising techniques or supply chain optimisation, and meets the SME criteria (fewer than 500 employees and turnover below €100 million or a balance sheet total below €86 million), it may be eligible to claim R&D tax relief. Large companies may also qualify. 3. Business rates relief: Properties with a rateable value below £12,000 may qualify for full exemption from business rates, while those between £12,001 and £15,000 benefit from tapered relief. Temporary relief may also be available where premises are vacant, partially occupied, under refurbishment, or affected by serious local disruption such as flooding or construction works. Every choice shapes the city The fate of independent shops has never been solely a matter for traders. Every consumer visit, every policy decision, and every act of community support influences the future of the city. As shown by the transformation of Dewsbury Arcade, when communities take ownership of historic premises and introduce independent traders through structured governance, declining areas can be revived. For individuals, supporting independent shops need not be a grand gesture.  Visit the artisan bakery at the weekend; choose a local designer’s work when buying gifts; share your experience online after a purchase. These small actions can combine into a powerful force that helps independents endure. After all, when a city loses its independent shops, it loses not just a unique shopping experience, but an irreplaceable urban soul. Brighton’s independent shops are still struggling, but they are also holding their ground. Their story mirrors that of high streets across the country. To a large extent, protecting independent shops means protecting the diversity and vitality of our cities. 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 .

Government drops plans for mandatory digital ID to work in UK According to the BBC, the UK Labour government has abandoned plans to make a digital identity scheme mandatory. The proposal had included a requirement for individuals to register for a Digital ID system to prove they were legally entitled to work in the UK.   Under the latest arrangements, by 2029 the UK’s “Right to Work checks” will be fully digitised — for example, verification could be completed using biometric passports — but participation in a new digital identity scheme will no longer be compulsory.   This change marks a clear shift in the government’s position. When the policy was first announced last year, Prime Minister Keir Starmer stated unequivocally: “If you don’t have a digital ID, you won’t be able to work in Britain. It’s as simple as that.”   This is the latest in a series of “U-turns” by the Labour government since taking office. Previously, it has already retreated on issues including welfare reform, cuts to winter fuel payments, and farm inheritance tax.   When the policy was originally announced, the mandatory digital ID for workers was intended to help combat illegal working by undocumented migrants. However, it is understood that the revised plan will no longer focus solely on immigration, instead placing greater emphasis on the convenience digital IDs could offer the public in accessing government services.   Since the policy was unveiled last September, it has faced sustained criticism. A parliamentary petition opposing the introduction of digital IDs has attracted nearly three million signatures, and some Labour MPs have also voiced opposition to the compulsory elements of the original proposal.   Under current rules, employers must check whether job applicants have the legal right to work in the UK. Since 2022, employers have been able to carry out online checks for holders of UK or Irish passports using government-approved digital verification services. The Home Office also operates an online system to verify the electronic immigration status of some non-UK and non-Irish nationals.   Details of how the digital ID will operate have not yet been published, but it is expected to be based on two government systems: Gov.uk One Login and Gov.uk Wallet. The ID would include information such as a person’s name, date of birth, nationality, residency status and photograph.   More than 12 million people have already registered for One Login, which can be used to apply for a veterans’ card, report a lost passport, or manage a lasting power of attorney. Gov.uk Wallet has not yet officially launched, but is expected to allow users to store a digital ID on their smartphones.   This represents the latest in a series of U-turns by the Labour government since coming to power, and the 13th major policy reversal in the past 18 months. Earlier reversals included changes to welfare reform, reductions in winter fuel payments, and farmers’ inheritance tax. The Liberal Democrats said the policy was “doomed from the start” and called for the “billions of pounds originally earmarked for a mandatory digital ID scheme” to be redirected to the NHS and frontline policing. Their Cabinet Office spokesperson mocked the situation, saying: “Downing Street will probably need to buy motion sickness tablets in bulk to cope with all these sudden policy U-turns.” Read more... China announces record $1tn trade surplus despite Trump tariffs   Despite US President Donald Trump’s tariff policies continuing to weigh on the global economy in 2025, data released last week showed that China’s full-year trade surplus reached US$1.19 trillion in 2025, the highest level ever recorded globally. This also marked the first time China’s annual trade surplus exceeded US$1 trillion, surpassing the previous record of US$993 billion set in 2024.   The data show that in seven months of 2025, China’s monthly trade surplus exceeded US$100 billion, indicating that the tariff measures launched by Trump did not have a material impact on China’s overall external trade. While China–US trade weakened somewhat, this effect was offset by rising exports to other regions, particularly Southeast Asia, Africa and Latin America, where exports increased significantly.   Analysts believe that China’s massive trade surplus mainly reflects strong overseas demand for Chinese goods and relatively weak domestic demand. Affected by the property crisis and rising debt levels, Chinese companies have become more cautious about investment, while consumer spending has remained subdued, leading to weaker import demand. Official data show that China’s imports grew by only 0.5% in 2025.   In addition, a weaker renminbi, ample supply of goods, and persistently high inflation in Western countries have enhanced the price competitiveness of Chinese exports. Exports from China’s high-end manufacturing sectors — including green technologies, artificial intelligence-related products and robotics — recorded notable growth.   As Chinese goods and services become further embedded in global supply chains, China’s trade performance in 2026 is likely to remain strong. However, even as overseas sales support job creation and economic growth at home, Chinese products may face “stricter scrutiny” in foreign markets, including measures such as the United States and the European Union announcing the removal of duty-free exemptions for low-value parcels. Read more... Almost 340,000 Self Assessment filers have already paid their tax bill using the HMRC app   HM Revenue & Customs (HMRC) has said that since 6 April 2025, nearly 340,000 taxpayers have paid their Self Assessment tax bills using the official HMRC app, representing an increase of almost 65% year on year in the number of people using the app to pay their tax. Under the rules, taxpayers must submit their tax return and pay any tax due by 31 January. Taxpayers who are unable to pay their bill in full and owe less than £30,000 may, if eligible, apply for a Time to Pay instalment arrangement.   In addition to using the HMRC app, taxpayers can also pay by bank transfer, Direct Debit, or online via the GOV.UK website.   With the deadline now just two weeks away, taxpayers who fail to submit their return by 31 January will face penalties, including:   An initial fixed penalty of £100, even if no tax is owed or the tax has already been paid; After three months, a daily penalty of £10, up to a maximum of £900; After six months, an additional penalty of 5% of the tax due or £300, whichever is higher; After twelve months, a further penalty of 5% of the tax due or £300, whichever is higher.   In addition, if the tax itself is not paid on time, late payment penalties of 5% will be charged at 30 days, six months and twelve months, and interest will accrue on any unpaid tax.   HMRC also reminded taxpayers that for those who sold shares or other assets after 30 October 2024, changes to Capital Gains Tax rates must be taken into account when completing their Self Assessment return. The system may not automatically calculate the correct amount of tax, and taxpayers may need to adjust their liability themselves using the calculation tool provided on GOV.UK . 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 .