Must be done by the next Confirmation Statement date for the company you are connected to due after 19^th November 2025 if you are a director.

Must be done between the 1st and the 14th date of your birth month if you are a PSC but NOT a director.

This guide will tell you:

• The 3 ways you can identify yourself.
• The documents and information you will need for each of the 3 options
• A step-by-step guide to each of the 3 options
• What you need to do when you have been issued a personal code.

Option 1: Verify your ID with Companies House using GOV.UK mobile phone app (Free):

You will need:

GOV.UK One login account

Smartphone with GOV.UK Login app installed

ONE of the following photo ID:

• UK passport
• non-UK passport with a biometric chip
• UK photocard driving licence
• UK biometric residence permit (BRP)
• UK biometric residence card (also called a BRC)
• UK Frontier Worker permit (FWP)

Options 2: Verify your ID with Companies House by answering security questions (Free):

You will need:

GOV.UK One login account

ONE of the following photo ID:

• UK passport
• non-UK passport with a biometric chip
• UK photocard driving licence
• UK biometric residence permit (BRP)
• UK biometric residence card (also called a BRC)
• UK Frontier Worker permit (FWP)

OR

UK bank or building society account (you will need the details)

Questions are checked against Experian credit record and will be regarding, bank accounts, credit cards, mortgages.

Option 3: Verify your ID with Companies House by Post Office (£12.75 payable to the Post Office)

You will need:

GOV.UK One login account

ONE of the following photo ID:

• UK passport
• non-UK passport with a biometric chip
• UK photocard driving licence
• UK biometric residence permit (BRP)
• UK biometric residence card (also called a BRC)
• UK Frontier Worker permit (FWP)

Once you have decided on your chosen method of ID verification proceed as follows:

• UK One login.

If you don’t already have one, you will need to create a login for GOV.UK One Login:

If you aren’t sure whether you have one try and sign-in using the link below and if your email address doesn’t have an account, they will tell you.  If you already have an account go to step 2)

Tip: this is a personal email to you and isn’t related to your company.

Tip: If you have a Companies House account use the email address associated with that account.

Tip: you will be guided to set up additional log in security (2 factor authentication) during this process so pick to receive log in codes either by email or text, whichever is easier for you.

Follow this link to create a GOV.UK One Login

https://signin.account.gov.uk/sign-in-or-create

• Verify your ID with Companies house.

Get your ID ready and prepare:

You will need your login email address and password for GOV.UK One

You will need one of the following:

• UK passport
• non-UK passport with a biometric chip
• UK photocard driving licence
• UK biometric residence permit (BRP)
• UK biometric residence card (also called a BRC)
• UK Frontier Worker permit (FWP)

Then the following depending on which method you are going to verify with (your choice)

For GOV.UK app verification:

Smart phone with the GOV.UK login app installed (free to download for apple and android phones)

For security question verification:

You will need your ID to be a passport or UK driving licence.

These will be based on your financial data and recent history so make sure you know what, if any loans you have, when you applied for them, details of mortgage etc.

For Post Office verification:

You will need your ID to be a passport or UK driving licence.

Once you have assembled the required documents and information you are ready to verify your ID. 

Please read the notes below before clicking the link.

When you click the link at the end of these notes you will be asked to click “Verify” and you will be taken to your GOV.UK One to log in.

You will need to verify your address for Companies House and confirm your ID has not been verified.

You will then be guided to choose the method of verification by answering a series of questions:

It will ask what ID you have available and whether it is ready to use.

You will be asked if you have a smartphone:

If you answer YES, you will be guided to verify your ID using the GOV.UK app and your form of ID.

Once verified you will be issued with a personal code.

If you answer NO you will then be asked if you wish to verify your ID another way, and you should answer YES to that question.

You will then be asked how you would like to prove your ID:

If you wish to prove your ID using security questions then click to enter either your UK driving licence details or UK passport details.

Follow the instructions to enter either your driving licence details or your passport details and confirm your home address.

Companies House will get your information from Experian.  This can take a few seconds.

You will then be asked 3-5 security questions regarding your financial situation and history.

Once answered correctly you will be verified and will be issued with a personal code.

If you wish to prove your ID using the Post Office then click to Prove your identity another way.

Follow the instructions to choose “In person at a Post Office”.

You will be asked to enter the details of either your driving licence or passport.

You will be sent a verification letter by email, and this must be taken to the Post Office along with the original document you used for ID in the previous step.

The post office will verify your ID and inform Companies House.

Companies House will be in touch via email once your ID is verified and will issue you a Personal code.

Verify your ID with Companies House using the following link:

https://www.gov.uk/guidance/verify-your-identity-for-companies-house

IN ALL CASES, ONCE YOUR ID IS VERIFIED YOU WILL BE ISSUED WITH A PERSONAL CODE.  PLEASE SEND US THE CODE TO ENABLE US TO FILE ON YOUR BEHALF AND KEEP IT SAFE.

IF YOU HAVE TROUBLE VERIFYING YOUR ID.. YOU MAY MAKE AN APPOINTMENT TO DO IT AT OUR OFFICES WITH SOME ASSISTANCE…THERE WILL A CHARGE FOR THIS SERVICE of £75.00 plus VAT.

Building a resilient savings plan.

Irregular income, no employer sick pay and responsibility for your own tax bills make cash planning more important when you work for yourself. Yet many people have little to fall back on. The Financial Conduct Authority (FCA) reports that one in 10 UK adults has no cash savings, and a further 21% have less than £1,000 available for emergencies. In its 2024 Financial Lives survey, the FCA also found that 24% of adults (around 13.1 million people) had low financial resilience.

This guide sets out a practical framework for building, protecting and optimising a savings plan.

Set a clear cash reserve target

How much to hold

A common rule of thumb is three to six months of essential personal spending. For the self-employed, aim higher: six to 12 months is sensible, especially if your income is seasonal or you have dependants or fixed business overheads. Use two reserves.

• Personal emergency fund: Rent or mortgage, utilities, food, transport, childcare, debt repayments, insurance premiums.
• Business buffer: A separate pot to cover tax, national insurance (NI) and essential business costs (software, equipment leases, insurance, freelance support).

How to calculate it

1. List the essentials, both personal and business.
2. Work out the average irregular costs by looking back 12 to 18 months.
3. Do a stress test by modelling a lean quarter with 20-40% lower income and checking the reserve can absorb it.
4. Ring-fence the reserve in instant-access or notice accounts. Avoid mixing with day-to-day funds.

Where to keep it

• Easy-access cash for the first three months of needs.
• Notice accounts for the next three to nine months if you want a higher rate and can tolerate waiting, for example, 30-90 days, to withdraw.
• Premium Bonds can complement cash for near-instant access, though returns are not guaranteed. Hold core emergency cash in interest-bearing accounts first.

Price in your 2025/26 tax and NI from day one

Budgeting for tax stops savings from being raided. Transfer a fixed percentage of every invoice into a separate “tax pot” so the money is there when payments fall due.

Key income tax bands (England, Wales, Northern Ireland)

• Personal allowance: £12,570.
• Basic rate 20%: Income above the personal allowance up to £37,700 (so higher-rate threshold above £50,270).
• Higher rate 40%: £37,701 to £125,140.
• Additional rate 45%: Over £125,140.

The personal allowance tapers away by £1 for every £2 of income above £100,000 and is lost completely at £125,140. Thresholds remain frozen in 2025/26.

Why it matters: Frozen thresholds and wage growth have pushed more people into higher bands. HMRC expects more than 7m higher-rate taxpayers this year due to “fiscal drag”.

Self-employed national insurance (2025/26)

• Class 4 NI: 6% on profits between £12,570 and £50,270, then 2% above £50,270.
• Class 2 NI: Treated as paid for entitlement purposes if profits are at or above the small profits threshold (you do not pay it in cash).

Payments on account and deadlines

If your last self assessment bill was over £1,000 (and less than 80% of your tax was collected at source), HMRC usually requires payments on account.  Both the January and July payment are each 50% of the prior year self-assessment tax payable amount.

• 31 January: First payment on account for the current tax year, plus any balancing payment for the previous year.
• 31 July: Second payment on account.

Build these dates into your cashflow so your emergency fund is not used for taxes.

Interest and penalties

Late or under-payments attract interest and possible penalties. With more savers exceeding allowances, the Financial Times notes HMRC is writing to taxpayers about untaxed interest; if you think you owe tax, contact HMRC to avoid penalties and interest (reported at 8.5% in that coverage).

Make full use of your tax-free savings allowances

ISA allowances (2025/26)

• Overall ISA allowance: £20,000 across cash, stocks & shares, and innovative finance ISAs.
• Lifetime ISA (LISA): £4,000 annual limit within the £20,000 cap, with a 25% government bonus (conditions and withdrawal rules apply). HMRC confirms the £20,000 limit for 2025/26.

Using ISAs protects interest, dividends and gains from tax, which reduces admin and preserves your personal savings allowance for any cash held outside wrappers.

Personal savings allowance (PSA) and starting rate for savings

Outside ISAs

• PSA: £1,000 of savings interest tax-free for basic-rate taxpayers, £500 for higher-rate, £0 for additional-rate.
• Starting rate for savings: Up to £5,000 of interest at 0%, but only if your non-savings income is below £17,570 (2025/26). Every £1 of other income above the personal allowance reduces this band by £1.

Practical tip: If one partner has lower non-savings income, holding more of the family’s taxable cash in that person’s name can preserve the 0% starting rate and PSA. (Transfers must be genuine ownership changes.)

Dividends outside ISAs

• Dividend allowance: £500 for 2025/26. Above that, dividend tax rates apply according to your band.

Pensions: Long-term savings with tax relief

Pension contributions can play two roles for the self-employed: long-term investing and tax-efficient smoothing of your taxable income.

2025/26 pension limits and allowances

• Annual allowance is £60,000 (subject to tapering for very high incomes).
• The lifetime allowance is abolished. Instead, two lump-sum caps apply when taking benefits.
  • Lump sum allowance (LSA): £268,275.
  • Lump sum and death benefit allowance (LSDBA): £1,073,100.

Personal contributions normally receive tax relief at your marginal rate. For higher earners, a well-timed contribution can reduce exposure to the 40% band or help restore some personal allowance where income is just over £100,000.

Carry forward rules may let you use unused annual allowance from the previous three tax years if you had pension membership then. This can be valuable after a strong trading year.

Liquidity warning: Pensions are for the long term. Keep your emergency fund outside your pension so you can access cash when needed.

Protect your income against shocks

Self-employed people do not qualify for statutory sick pay (SSP). If illness or injury stops you working, there is no employer safety net. Government guidance confirms self-employed workers are not eligible for SSP.

Insurance options to consider

• Income-protection insurance can replace a portion of earnings if you cannot work due to illness or injury, after a chosen waiting period.
• Critical-illness cover pays a lump sum on diagnosis of specified conditions.
• Life insurance provides for dependents if you die.
• Business interruption/overheads cover can help with fixed costs.

These policies are not savings products, but they protect your savings plan by reducing the chance that you will need to drain your reserves during a long absence from work.

Parental leave and maternity allowance

Self-employed parents are not entitled to statutory maternity pay, but maternity allowance (up to £187.18), may be available for up to 39 weeks if eligibility criteria are met (including self-employment in at least 26 of the 66 weeks before the due date and minimum earnings). Paying or being treated as having paid Class 2 NI for at least 13 weeks can affect entitlement levels.

Build your plan: Step-by-step checklist

1. Open separate accounts: One for day-to-day spending, one “tax pot” and one “emergency fund”. Automate transfers on every client payment (for example, 25-35% into the tax pot depending on your band and NI, and a fixed amount into the emergency fund).
2. Target a reserve: Set a six to 12-month goal and break it into monthly milestones. Treat it like a bill.
3. Use wrappers: Fill the £20,000 ISA allowance if possible; prioritise cash ISA for emergency funds and stocks & shares ISA for long-term goals. Consider a LISA if you meet the age and property criteria.
4. Optimise taxable interest: Place any non-ISA cash where it fits PSA and the 0% starting rate, especially for the lower-income partner. Review after each tax-year change.
5. Plan pension contributions: Aim for regular monthly payments, with top-ups near year-end if profits are stronger than expected. Use carry forward where appropriate.
6. Review insurance: Price income protection and critical illness cover. Balance premiums with your reserve size and risk tolerance. Note that without SSP, you rely on savings, benefits subject to eligibility or insurance.
7. Prepare for payments on account: If relevant, add the 31 January and 31 July amounts to your cash forecast.
8. Track interest and dividends: With rates still elevated for many accounts, more people breach the PSA; keep records, and if you think you owe tax, contact HMRC to avoid penalties and interest.
9. Rebalance quarterly: Check progress, refill the emergency fund after any use and adjust transfers if income changes.
10. Document everything: Keep a simple spreadsheet or cashflow tool listing invoices, due dates, reserves, ISA and pension contributions, and tax forecasts.

Practical scenarios

A. Profits fluctuate throughout the year

Create a baseline monthly transfer to the tax pot and emergency fund from every payment received. In stronger months, add a top-up; in weaker months, keep the baseline. This smooths progress and avoids relying on a year-end lump sum.

B. Approaching higher-rate tax

If total income exceeds £50,270, consider:

• adding pension contributions to manage your band
• moving interest-bearing cash into ISAs, and
• checking whether your partner’s PSA and starting-rate band can be used more efficiently.

C. Earning near £100,000

Income between £100,000 and £125,140 effectively faces a 60% marginal rate due to the withdrawal of the personal allowance. Pension contributions can help reduce adjusted net income in this range. Media analysis indicates a rising number of people affected by this “tax trap”.

D. Saving for a first home or later life

A LISA can be attractive if you qualify (age limits apply), thanks to the 25% bonus on up to £4,000 a year, but withdrawals for non-qualifying reasons incur a charge. Keep emergency cash outside the LISA.

Choosing accounts and investment mix

Cash for short-term needs

For the emergency fund and tax pot, prioritise UK banks and building societies protected by the Financial Services Compensation Scheme (FSCS) up to the relevant limits. Look at:

• instant access for the first three months of needs
• notice accounts for the next tranche if the rate is meaningfully higher
• fixed-term accounts are only for surplus cash you won’t need during the term.

Investing for goals five years or longer

• Pensions and stocks & shares ISAs allow investment in diversified funds or portfolios.
• Volatility is normal in markets; match risk to your time horizon and capacity for loss.
• Keeping too much long-term cash may leave returns behind inflation after tax unless held in wrappers.

Tip: Review fees and platform charges annually; costs compound.

Managing risk without an employer safety net

Health and income shocks

Because you cannot claim SSP, think about:

• income protection with a waiting period that fits your emergency fund size (for example, 8-26 weeks)
• critical-illness cover as a bolt-on if you want a lump sum for treatment, adaptations or clearing debt
• emergency fund discipline – If you must use it, pause investing until you rebuild it.

Family changes

If you are planning a family, check maternity allowance eligibility early and how NI records affect it. Voluntary Class 2 NI may increase entitlement in some cases.

Staying compliant and reducing admin

• Keep accurate records of interest and dividends outside ISAs. With more people crossing PSA limits, HMRC is issuing letters based on bank data, though these don’t always match perfectly; get ahead of any underpayment.
• Reconcile quarterly and check that your transfers into the tax pot track your profit trend, not just revenue.
• Use calendar reminders for 31 January and 31 July, and for VAT and CIS if relevant.
• Check your NI record annually to confirm qualifying years for state pension and benefits.

Your action plan

1. Set targets: Decide your emergency fund size (months of spending) and the monthly contribution required.
2. Automate: Split every client receipt into spending, tax and savings pots.
3. Maximise wrappers: Fill ISAs first, then pensions as affordable, using carry forward if needed.
4. Optimise interest: Place non-ISA cash to use the PSA and starting-rate band where available.
5. Insure wisely: Review income protection and related cover to backstop the plan.
6. Budget for tax: Forecast your 31 January and 31 July payments and keep the pot topped up.
7. Review quarterly: Adjust contributions as profits change and refill the emergency fund after any withdrawals.
8. Ask early: If you receive an HMRC letter about savings interest or think you may owe tax, penalties, and interest can mount.

Final word

A resilient savings plan means you can take time off when you are ill, manage tax bills without stress and invest for the future on your terms. Start with the cash reserve, automate transfers, make the most of ISAs and pensions, and review quarterly. If your circumstances change – income rising into a new tax band, a new mortgage or family plans – update your plan to stay on track.

Self-employed? Talk to us to help build your financial security.

The financial incentives for going green.

Greener operations can help control costs and reduce risk. Many organisations are upgrading fleets, equipment and buildings to cut energy use and improve resilience. Official figures show UK greenhouse gas emissions fell by around 4% in 2024, reflecting ongoing shifts in how we power and heat our economy. For smaller firms, practical efficiency steps can trim energy bills by 18-25%, which strengthens cashflow and shortens the payback on upgrades.

This guide outlines the tax reliefs, grants and rules that apply in 2025/26. It focuses on how incentives can support investments such as electric vehicles and charging, on-site renewables, energy-saving plant and machinery, and qualifying research and development (R&D). You’ll find clear thresholds and dates so you can plan projects with confidence, plus links to official sources for verification.

Why this matters for your bottom line

• Tax reliefs and incentives now cover a wide range of plant, vehicles and property improvements. Used well, they can accelerate payback and improve cashflow. The annual investment allowance (AIA) is permanently set at £1m, covering most plant and machinery purchases, new or second-hand.
• Full expensing for companies gives a 100% first-year deduction on qualifying new main-rate plant and machinery, plus a 50% first-year allowance for special-rate assets. This regime has been made permanent. Cars are excluded.
• Targeted incentives support low-emission fleets, workplace charging, energy-saving installations in residential and charity buildings, and on-site renewables that may be exempt from business rates.

The sections below explain each area, what you can claim and where to find the rules.

Capital allowances and full expensing

Annual investment allowance (AIA)

• What it is: 100% deduction on qualifying plant and machinery up to £1m per business per accounting period. Applies to most assets except cars. Available to companies and unincorporated businesses.
• Use case: Lighting upgrades, compressors, computer numerical control (CNC) machines, racking, IT equipment, certain heat pumps in commercial premises (as plant) and so on.

Tip: If your spend will exceed £1m, combine AIA with full expensing (applies to companies only, and only for the purchase of new assets) or standard writing-down allowances.

Full expensing and first-year allowances

• Full expensing (companies only): 100% first-year deduction for new main-rate plant and machinery. 50% FYA for new special-rate assets (e.g. integral features). Permanent policy. Cars are excluded.
• Zero-emission cars and charge-points: The government extended the 100% first-year allowance (FYA) for zero-emission cars and electric vehicle (EV) charge-points for expenditure on or after 1 April 2025, now ending 31 March 2026 (corporation tax)/5 April 2026 (income tax). If you plan to buy an electric car or install charge-points, timing matters.

Structures and buildings allowance (SBA)

• Rate: Straight-line 3% per year over 33⅓ years on qualifying non-residential construction or renovation. Enhanced 10% rate applies in designated Investment Zone special tax sites while available.

Planning notes

• Second-hand assets qualify for AIA and writing-down allowances but not full expensing.
• At the time of writing, full expensing does not generally apply to assets for leasing (with limited exceptions). Check contract terms before committing.

Fleets, company cars and charging

Benefit in kind (BiK) for electric cars (2025/26)

• BiK rate is 3% for zero-emission cars in 2025/26, rising by 1 percentage point per year (announced policy) in later years.
• Low BiK keeps salary sacrifice EV schemes and company-car provision attractive relative to petrol/diesel.

Vehicle excise duty (VED) changes from 1 April 2025

• New EVs registered on or after 1 April 2025: £10 first-year rate, then standard rate £195 from year two.
• EVs registered 1 April 2017 to 31 March 2025: Standard rate £195.
• Expensive car supplement: EVs over £40,000 now pay a supplement each year for five years (amount set in VED tables). Check current VED schedules for your vehicle.

Advisory electricity rate (AER) for EV mileage claims

From 1 September 2025, HMRC split the AER into:

• 8p per mile for home charging
• 14p per mile for public charging.

Employers can pay more if you can show a higher cost per mile.

First-year allowances for EV assets

100% FYA for zero-emission cars and EV charge-points runs until 31 March 2026 (corporation tax)/5 April 2026 (income tax) for expenditure incurred on or after 1 April 2025. If you intend to buy new, this window may be valuable.

Grants for workplace charge-points

The Workplace Charging Scheme (WCS) covers up to 75% of costs, capped at £350 per socket, up to 40 sockets per applicant across all sites. Eligibility includes businesses, charities and public sector bodies.

Action list for fleets

1. Refresh your car policy and salary sacrifice brochures with 3% BiK for EVs in 2025/26.
2. Review the VED impact for new deliveries after 1 April 2025, including the expensive car supplement where relevant.
3. Update expense and payroll systems to apply the 8p/14p AER split from 1 September 2025.
4. If you plan to install charge-points, consider claiming WCS and align orders to secure the 100% FYA window that runs to spring 2026.

VAT reliefs for energy-saving installations (residential and charity buildings)

If you install certain energy-saving materials (ESMs) in residential properties or charitable buildings, the VAT rate is 0% until 31 March 2027. The scope includes solar panels, heat pumps, insulation and, from 2024, some groundworks for heat pumps and certain batteries/smart diverters. The rate then reverts to 5% under current law. This can support employee accommodation, landlord-owned housing or charity projects in your group. Check notice 708/6 for the full list and conditions.

Note: This relief does not generally apply to commercial premises; most businesses pay the standard 20% VAT on energy and on commercial energy-saving works (subject to specific reduced-rate rules for low usage and charities).

Business rates: Reliefs for green investment

• On-site renewables and storage: Eligible plant and machinery used in on-site renewable energy generation and storage (including rooftop solar, wind turbines, battery storage and storage used with EV charging) is exempt from business rates in England from April 2022 until 31 March 2035.
• Heat networks: 100% relief for eligible low-carbon heat networks with their own rates bill, available to 2035.
• Improvement relief (from 1 April 2024): Where qualifying improvements increase your rateable value, you can get 12 months of relief from the higher bill once works are complete (certificate required).

Practical point: Installing rooftop solar for self-consumption is a common use case for the exemption. Confirm design and metering with your surveyor so that the correct elements are treated as exempt plant.

Grants and schemes for buildings

• Boiler upgrade scheme (BUS): Provides upfront grants (administered by installers, maximum £7500) for heat pumps and eligible biomass boilers in homes and small/medium non-domestic buildings in England and Wales. If you own qualifying non-domestic properties (up to 45kWth per system), you may be eligible.
• Industrial Energy Transformation Fund (IETF): This closed in July 2025. The planned second Phase 3 competition window will not go ahead, and there is no successor fund currently. Factor this into project plans if you were banking on grant support.

R&D tax relief and Patent Box for low-carbon innovation

R&D: Merged scheme and ERIS (from periods beginning on/after 1 April 2024)

• The UK now operates a merged R&D expenditure credit scheme (RDEC-style) at a headline 20% credit rate. The credit is taxable as trading income.
• Enhanced R&D intensive support (ERIS): For loss-making SMEs with R&D intensity of 30% or more (reduced from 40%), an 86% additional deduction plus a 14.5% payable credit on surrendered losses is available. A one-year grace period can protect eligibility if you dip below 30% after qualifying.

Where this helps: Process optimisation, electrification, novel storage, low-carbon materials, control systems and software often contain qualifying R&D. Good record-keeping and technical narratives are vital under current HMRC scrutiny. For businesses with qualifying intellectual property (IP) and sustained innovation, consider Patent Box alongside R&D.

Patent Box

• The Patent Box applies a 10% effective corporation tax rate to profits attributable to qualifying patents and specific IP. This remains available and can materially reduce tax on commercialised clean-tech.

Plastic packaging tax (PPT)

• PPT applies to plastic packaging manufactured in or imported into the UK that contains less than 30% recycled plastic.
• The rate from 1 April 2025 is £223.69 per tonne (up from £217.85 in 2024/25). Review supply chains and specifications to manage exposure.

UK Emissions Trading Scheme (UK ETS) and energy-intensive users

• If your site falls under the UK ETS, keep track of annual cap changes and pricing. Technical guidance was updated in August 2025; the 2025 cap is published by external trackers at 86.7 MtCO₂e. Recent official analysis notes a UK carbon price around £50/tonne at the end of May 2025 (lower than the EU ETS at the time). Policy work on linking the UK and EU systems is ongoing.
• The government has also signalled measures to support energy-intensive industries through levy reductions and network charge discounts under wider industrial strategy workstreams. Keep an eye on sector guidance as eligibility and timing can change.

Common questions

Do leased assets qualify for full expensing?

Not generally. The regime is designed for companies buying new assets to use in their trade, not to lease out (with limited exceptions, such as background plant in buildings). If you’re unsure how your contract is structured, seek advice before ordering.

Can I claim both ERIS and the merged R&D credit on the same expenditure?

No. You can choose to claim under the merged scheme or, if eligible, ERIS on the same spend, but not both.

Are EVs still tax-efficient after VED changes?

For company cars, the low BiK remains a strong incentive even with VED applying from April 2025. For owned vehicles, budget for £10 in year one then £195 from year two and the expensive car supplement where the list price is over £40,000.

Can I get VAT relief on energy-saving works in my office or factory?

General commercial energy-saving works are standard-rated for VAT, but input VAT may be recoverable if they relate to taxable business activities. The 0% VAT relief applies to residential properties and charitable buildings for specified technologies to 31 March 2027.

Closing thoughts

Sustainability projects work best when the numbers stack up, and the incentives set out here can help pay for upgrades faster. These reliefs can improve cashflow, shorten payback periods and support long-term planning for fleets, buildings and processes. Because schemes and rates can change, check the latest guidance before placing orders or finalising contracts, mainly where deadlines or phased rates apply. Good records, clear scopes of work and the right contract structures will make claims smoother.

Talk to us about your sustainability goals. We are here to help and advise.

Manufacturing leads and services have stalled as budget pressures build. The UK economy grew marginally in August, as official figures showed a 0.1% rise after a revision, following a 0.1% fall in July.

Manufacturing provided the uplift, expanding by 0.7%, while the much larger services sector was flat.

Growth was 0.3% on a rolling three-month basis in August. The Office for National Statistics said services held steady, and the drag from production eased.

Ministers have prioritised growth ahead of November’s Budget, yet most economists expect only subdued momentum in the months ahead. Many analysts also think tax rises or spending cuts will be necessary to meet the Chancellor’s borrowing rules. Momentum remains fragile overall.

The Institute for Fiscal Studies estimates a £22 billion gap in the public finances. It says Rachel Reeves will almost certainly have to raise taxes to fill it. The Chancellor said that she is considering further measures on tax and spending to ensure the numbers add up.

Internationally, the IMF expects the UK to be the second-fastest-growing advanced economy this year. However, it also forecasts the UK will have the highest inflation in the G7 in both 2025 and 2026, driven by higher energy and utility costs.

The Treasury said the UK has recorded the fastest growth in the G7 since the start of the year, while acknowledging that many people still feel the economy is “stuck”. It said the Budget will focus on helping businesses grow, investing in infrastructure and cutting red tape to get Britain building.

Talk to us about your business.

HMRC’s online service to pay the High Income Child Benefit Charge (HICBC) through Pay As You Earn (PAYE) is now live.

HMRC’s online service to pay the High Income Child Benefit Charge (HICBC) through Pay As You Earn (PAYE) is now live. The service was announced at the Spring Statement 2025 and aims to reduce the need for some taxpayers to complete self assessment solely to settle the charge.

HICBC applies where the claimant or their partner has adjusted net income above the threshold. From the 2024/25 tax year, the threshold is £60,000, with child benefit fully withdrawn at £80,000. The clawback is 1% of the benefit for every £200 income over £60,000.

Previously, HICBC payers reported the charge via self assessment, with limited coding-out through PAYE for amounts under £2,000. Under the new approach, PAYE taxpayers who only file a return to pay HICBC can opt out of self assessment and pay via PAYE instead. To use the service, individuals must first de-register from self assessment; access should be available the following day.

HMRC plans to write to around 100,000 people who appear liable but are not in self assessment. In 2022/23, about 440,000 individuals were liable to HICBC. HMRC notes a risk of two HICBC amounts appearing in one year’s PAYE code where liabilities span 2024/25 and 2025/26, depending on timing.

Households can also opt out of receiving child benefit payments. Registration can still be beneficial, however, as it provides National Insurance credits for non-working parents and triggers a child’s NI number before age 16.

Talk to us about your claims.

HMRC has launched an online checker to help businesses judge whether their projects meet the definition of research and development for tax reliefs before they file a claim.

The tool aims to reduce errors, but it is not mandatory and does not guarantee acceptance.

It works like CEST for IR35: you answer a series of questions and receive a result indicating whether the project contains qualifying R&D. The process takes approximately 10 minutes.

The checker is aimed at first-time claimants and companies with limited experience. However, HMRC expects a ‘competent professional’ to supply or validate several answers. This means someone qualified or experienced in the relevant science or technology, usually involved in the project and aware of baseline knowledge at the start.

The questionnaire has three sections. Section one confirms the project details and whether you tried to solve a scientific or technological problem. Sections two and three require input from the competent professional. They test whether the work sought an advance in knowledge or capability, whether scientific or technological uncertainties existed, what was done to overcome them, and whether the work resolved the issue.

If any response shows the project is ineligible, the tool pauses and explains why. You can amend your answers and continue. At the end, you’ll see a statement that the project includes qualifying R&D or reasons it does not.

You can preview, save, and print the results. The tool does not assess costs or scheme choice, so check HMRC guidance on eligible expenditure separately.

Talk to us about tax reliefs.

Mid-market employers increasingly offer UK-based staff the option to work abroad for part of the year, provided tax and legal checks are in place.

“Workcations,” where employees choose to work remotely from another country for agreed-upon periods, are now firmly on the agenda.

According to a survey of business leaders, 77% of companies now have a formal international remote-working policy, up from 59% two years ago. That shift mirrors the normalisation of hybrid and remote working for office roles and a stronger focus on work-life balance as a retention driver.

Policies are not free-for-all. Nearly all organisations with a policy (99%) allow overseas working only with approval or within strict parameters, up seven points from 2023, when the figure was 92%. Typical guardrails include capped days, approved countries, pre-travel declarations, and clear tax guidance.

Compliance has moved up the priority list. Previously, workcations risked errors triggering local filings, penalties, or inadvertent permanent-establishment exposure. In 2025, the share of businesses reporting this as a high risk has fallen to 2%, suggesting greater investment in monitoring tools, payroll controls, cross-border advice, and employee training.

The direction is clear: employees want flexibility, and employers are responding. Businesses looking to refresh their approach should document parameters, map tax and social security triggers by country, and set approval workflows. Done well, workcations can support attraction and retention without inviting compliance headaches.

Talk to us about your business.

Filing your tax return with confidence

Self Assessment rarely sits at the top of anyone’s to-do list. Deadlines creep up, paperwork hides in inboxes and the rules change just enough to raise questions. This guide is here to make the job simpler. It sets out who needs to file, what to gather, how to complete the return and the steps to take to avoid penalties and interest.

You will find clear, practical checklists and straightforward explanations. We keep the focus on what you need to do, when you need to do it, and how to keep your bill accurate and on time. If anything in your situation has changed, such as new income, a property sale or pension contributions, this guide will help you work out what that means for your return and what to do next.

Who needs to file

You normally need to send a UK Self Assessment (SA) return if any of the following apply:

• you were self-employed or a partner in a partnership
• you received untaxed income, for example property income, significant savings interest, dividends above the allowance, foreign income or chargeable capital gains
• you, or your partner, received child benefit and either of you had adjusted net income over £60,000 in the year. The high-income child benefit charge (HICBC) applies on a taper and fully withdraws child benefit by £80,000.
  

PAYE-only high earners: For 2024/25 and later, HMRC has removed the income threshold that previously forced PAYE-only employees to file because of high income. If your affairs are simple and all income is taxed at source, you may not need to file, but other triggers (such as dividends, property income or gains) still apply. Always check HMRC’s tool if unsure.

What to gather before you start

Create a single folder (digital or paper) and collect the following:

• Employment: P60, P45 (if you left a job), P11D/P9D or employer statement of benefits.
• Self-employment: income and expense records, invoices, bank statements, mileage log and details of any capital items. From 2024/25, the cash basis is the default for unincorporated businesses unless you choose accruals.
• Property: rental statements, mortgage interest, repairs, agent fees and dates for any property purchases/sales.
• Savings and investments: bank and building society interest, dividend vouchers or statements.
• Capital gains: contract notes, costs, improvement records, pooling calculations and details for any 60-day UK property capital gains tax (CGT) reports already filed.
• Pensions: personal contributions (grossed-up amounts), annual statements and evidence of relief at source. Higher-rate or additional-rate relief needs to be claimed through SA.
• Charitable giving: Gift Aid totals — higher-rate or additional-rate relief is claimed on your SA return.
• Student loans: plan type and any postgraduate loan.
• Child benefit: amounts received, and each partner’s income where relevant to HICBC.
• Cryptoassets: dates, amounts, wallet/exchange records for disposals and income (staking/mining/airdrops). HMRC expects accurate reporting and is implementing new information reporting from 1 January 2026.

Keep paperwork for at least five years after the 31 January submission deadline for the relevant tax year.

Penalties, interest and how to avoid them

• Late filing: £100 fixed penalty; after three months, £10 per day up to £900; at six and 12 months, further penalties (5% or £300, whichever is higher).
• Late payment: penalties of 5% of tax unpaid at 30 days, six months and 12 months, plus interest.
• Current interest: HMRC’s late payment interest is 8.00% from 27 August 2025.

If you cannot pay in full, set up a Time to Pay plan online to limit penalties (interest still accrues).

Payments on account

Suppose you owe more than £1,000 and did not have 80% or more of your tax collected at source, i.e. collected through PAYE. In that case, HMRC will usually ask for two payments on account toward your next bill on 31 January and 31 July, each equal to half of last year’s tax (Class 4 NIC is included if applicable).

• You can claim to reduce payments on account if you reasonably expect lower income or higher reliefs. Use the online service or SA303. Be realistic — under-estimating causes interest and potential penalties.
• New filers often pay the full 2024/25 bill plus the first 2025/26 instalment by 31 January, which can feel like two bills at once. Plan for this early.

Current-year rates and allowances

These apply to decisions you make this year and to payments on account:

Income tax (England, Wales and Northern Ireland)

• Personal allowance: £12,570 (tapered by £1 for every £2 of income over £100,000, lost entirely at £125,140). Bands: 20% basic, 40% higher, 45% additional.
• Personal savings allowance: £1,000 (basic rate), £500 (higher rate), £0 (additional rate). The starting rate for savings remains a 0% £5,000 band where non-savings income is low enough (decreases as you exceed the personal allowance).
• Dividend allowance: £500. Dividend tax rates stay at 8.75%/33.75%/39.35% by band. Shelter dividends in ISAs where possible; the ISA annual limit remains £20,000 (Junior ISA £9,000).

Capital gains

• Annual exempt amount (individuals): £3,000.
• Rates (most assets): 18% (basic-rate band) and 24% (higher/additional).
• Residential property (not eligible for PRR): 18% / 24%.
  The rates changed part-way through 2024/25; for 2025/26 the above rates apply for the whole year.
  

Note on mid-year change (2024/25): gains realised on or after 30 October 2024 attracted the higher CGT rates introduced then. If you had disposals across that date, ensure your SA figures reflect the split correctly.

National Insurance (for context)

• Self Assessment calculates any Class 4 NIC due and will include it in your bill.
• For reference, HMRC confirms Class 2 is no longer payable by most self-employed people (you’re treated as having paid to protect your record if profits exceed the small profits threshold).

Allowances and reliefs people often miss

Trading and property allowances

You can use a £1,000 trading allowance and a separate £1,000 property allowance if your trading/property profits are less than this amount. You can’t use them and claim expenses on the same income — choose whichever gives the better result.

Rent-a-room scheme

If you rent a furnished room in your main home, the first £7,500 of gross receipts can be tax-free under the rent-a-room scheme (lower if you share the income). However, if using the scheme, you can’t also offset expenses.

Pension contributions

Relief at source gives 20% automatically; higher/additional-rate relief is claimed via SA or HMRC’s online service. Pension contributions can also reduce adjusted net income to help with HICBC or personal allowance taper.

Gift Aid

Gift Aid boosts donations by 25% for the charity. If you pay higher or additional-rate tax, claim the extra relief through SA. Ensure you’ve paid enough UK tax to cover the basic-rate uplift the charity claims.

Savings interest

Check whether your PSA or starting rate for savings (0% band) reduces or eliminates any tax on interest, especially if your earned income is below or near the personal allowance.

Self-employment: Expenses and records

Claim only allowable business costs. Typical categories include office costs, travel (excluding ordinary commuting), staff costs, stock, premises costs and financial charges. Keep receipts or reliable digital records.

If you use your own vehicle for business, you may claim approved mileage allowance payments instead of actual costs (cars/vans 45p per mile for the first 10,000 business miles in the year, then 25p; motorcycles 24p; bicycles 20p). Keep a mileage log.

From 2024/25, the cash basis is the default for unincorporated businesses unless you elect for accruals. Consider which method better reflects your business and allows the most suitable reliefs.

Property income: What to watch

• Finance costs on residential lets are restricted to a 20% tax credit, not a full deduction, but you can still deduct other allowable running costs and repairs.
• Keep deposit scheme and agent statements.
• Consider the property allowance (see above) for small amounts of income if it gives a better result than actual expenses.
  

Capital gains, including cryptoassets

For 2025/26, the annual exemption amount is £3,000. Report gains that exceed the exemption or where total proceeds exceed four times the exemption. If you sold crypto, shares or property, keep detailed records of dates, costs, fees and proceeds. HMRC has a dedicated cryptoassets guidance collection and will begin receiving third-party data under the Cryptoasset Reporting Framework from 1 January 2026.

Tip: If you sold assets in 2024/25, note the mid-year CGT rate change from 30 October 2024 for most assets. Check your return reflects the correct rates.

Child benefit and adjusted net income

If anyone in your household received child benefit and either partner had adjusted net income over £60,000 in the year, the HICBC applies on a taper until £80,000 when it fully withdraws the benefit. The charge is reported on SA. Pension contributions and Gift Aid can reduce adjusted net income.

Student loans and postgraduate loans

Your SA calculation will include repayments if applicable. Check you’ve selected the right plan and entered the amounts correctly to prevent under- or over-payment. Current thresholds for 2025/26 are published on gov.uk.

Making Tax Digital for income tax (MTD IT)

MTD IT is not yet mandatory for most individuals filing SA. Under the current timetable, from April 2026 it will apply to self-employed people and landlords with business/property income over £50,000. You will need to keep digital records and send quarterly updates.

Common pitfalls we see

• Missing interest and small dividends. Banks and platforms don’t always issue year-end summaries, download them. The PSA and £500 dividend allowance still require you to declare the income where a return is needed.
• Wrong student loan plan type. Double-check your plan to avoid incorrect deductions.
• Under-claiming pension or Gift Aid relief. Make sure you claim higher/additional-rate relief on contributions and Gift Aid.
• Payments on account surprises. New filers or those with rising income can be caught out in January. Review the figures and budget early; reduce them only when you have a sound basis.
• CGT rate split for 2024/25. If you sold assets around 30 October 2024, ensure you apply the correct rates now required.

Final thoughts

Filing early gives you time to check the numbers, claim reliefs correctly and plan for any payments on account. Use the checklist, keep your records in one place and review any items that often get missed, such as savings interest, small dividends, Gift Aid and pension top-ups. If you expect your income to fall, consider whether a payments-on-account reduction is sensible. If paying in full is difficult, look at Time to Pay before charges build up.

If you would like a review of your draft return, a second check on reliefs or help preparing and filing from start to finish, we can step in at any stage. Share what has changed for you this year and we will apply the rules in this guide to your situation so you can file with confidence.

Get in touch for help with your self assessment.

A Bank of England survey has shown that UK businesses cut jobs this summer at the fastest rate in four years, highlighting the strain of higher taxes on employers.

The monthly Decision Maker Panel survey of more than 2,000 chief financial officers found that employment fell by 0.5% in the three months to August, the steepest drop since 2021. Intentions for future hiring also weakened, with expectations for job growth slipping from 0.5% to just 0.2%.

Business leaders blamed the Government’s decision to raise employer national insurance contributions (NICs) by £25bn in April. Almost half of the respondents said the increase had forced them to cut staff numbers, while many others reported passing costs on through higher prices.

Two-thirds of firms said profit margins had been squeezed, 34% raised prices, and 20% said they paid lower wages than planned. Despite this, the Bank noted the impact was less severe than firms had feared before the NICs changes took effect.

Economists had warned the fall in employment could sway the Bank’s 18 September meeting. In the event, the MPC left the Bank Rate at 4% (a 7–2 vote, with two members favouring a 0.25 percentage point cut to 3.75%), in line with market expectations.

Chancellor Rachel Reeves, who has set 26 November for her second budget, has acknowledged that the economy is “not working well enough for working people”. The later budget date is expected to fuel speculation over further tax rises, but the Treasury says it will also be used to outline pro-growth reforms.

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Retail sales grew in August, helped by record warm weather and a Bank of England interest rate cut.

Retailers have, however, warned that speculation over potential tax rises could hit spending during the vital pre-Christmas trading season.

According to the latest British Retail Consortium (BRC) and KPMG survey, sales rose 3.1% yearly. Food and drink sales led the way, up 4.7%, although the BRC said price rises rather than higher volumes drove this. Inflation continued to push the cost of staples such as beef, chocolate and coffee.

Computing and gaming products also performed strongly, boosted by the back-to-school period. However, parents facing rising costs cut back on school uniforms and other essentials.

Non-food sales increased by 1.8%, the third monthly rise. Furniture sales grew for a second month, while household goods, DIY products and garden tools also improved. Demand was lifted further by the launch of new Samsung foldable phones and Google’s Pixel 10 in the late summer.

August followed growth of 2.5% in July, supported by warm weather and England’s Euros success, and 3.1% in June.

Despite the positive figures, shopper confidence fell for the third consecutive month, with many consumers expecting further food price rises and financial pressures. The BRC warned that businesses remain cautious about the “golden quarter”, the three months before Christmas that account for a significant share of annual revenues.

The Chancellor, Rachel Reeves, will deliver the budget on 26 November.

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