Early HMRC information shows UK payrolled employment fell by 109,000 (-0.4%) in May 2025, the sharpest monthly decline for four years. The drop pushed the unemployment rate up to 4.6%, its highest level since April 2021.

Economists have highlighted the 1.2 percentage point rise in employer National Insurance – from 13.8% to 15% on 6 April – as a key factor. But arguably just as significant is the drop in the threshold at which employer National Insurance kicks in, from £758 a month to £500, widening the impact for many businesses. Hospitality shed 5.6% of roles, IT and telecoms 3.4%, and retail 2.4%, contributing to an overall 0.9% fall in employment.

London recorded the steepest regional contraction, with payroll numbers down 2.3%, while the Scottish Borders and parts of East Anglia also suffered marked losses. Vacancies slipped by 63,000 to 736,000, yet shortages persist in accountancy, construction and health, keeping competition for skilled staff intense.

Average regular pay grew 5.2% in the three months to April, only marginally slower than March’s 5.5%, leaving the Bank of England alert to wage-pressure risks as it considers further interest rate cuts later this year.

The Office for National Statistics cautioned that the payroll figures remain provisional and could be substantially revised when additional real-time submissions arrive next month.

Kate Nicholls, chief executive of UKHospitality, said: “Losing more than 100,000 jobs across the economy in a month goes far beyond the worst-case scenario predicted by the government’s own fiscal watchdog, major banks and countless business groups.”

Daniel Herring, head of economic and fiscal policy at the Centre for Policy Studies, added: “The provisional employment data confirms our concerns about Labour’s job tax. When you make it 11% more expensive to hire minimum-wage workers, businesses simply stop hiring.”

Talk to us about your staffing issues.

UK sickness absence edged closer to pre-pandemic norms last year, according to new Office for National Statistics (ONS) figures.

Workers took an average of 4.4 days off for sickness or injury in 2024, amounting to 148.9m lost working days, or 2% of all possible days. That is 0.2% lower than 2023 but still above the 1.9% recorded in 2019, adding the equivalent of 9.9m extra lost days.

Absence remained highest in the public sector at 2.9%, although this has fallen from 3.6% in 2022. Private-sector absence stood at 1.8%. Senior management and professional services, including accountancy firms, recorded even lower rates of 1.8% and 1.3% respectively.

Minor ailments, such as colds, continued to dominate reasons for absence (30%), followed by musculoskeletal issues (15.5%) and mental-health conditions (9.8%). The ONS notes that statutory sick-pay (SSP) rules partly explain the public-private gap: many private-sector staff are unpaid for the first three days away. The forthcoming Employment Rights Bill will make SSP payable from day one, potentially increasing costs for smaller employers.

Regionally, sickness absence was highest in the South West (2.4%) and lowest in London and the East (both 1.5%), patterns linked to younger, more highly skilled workforces.

James Cockett, senior labour market economist at the Chartered Institute of Personnel and Development, said: “Many frontline roles in the public sector – particularly in healthcare, education, social care and policing – not only increase exposure to illness but are often physically and emotionally demanding, leading to greater rates of stress-related ill health and absence. There’s also growing demand on our public services and limited resources, which is leading to an increase in the number of people who feel they’re consistently working under excessive pressure.”

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Chancellor Rachel Reeves has reversed last year’s decision to restrict winter fuel payments, confirming that pensioners in England and Wales with taxable incomes of £35,000 or less will again receive the benefit from this autumn.

Pensioners aged 67-79 will be paid £200, while over-80s will receive £300. Scotland and Northern Ireland run separate schemes.

The Treasury estimates the change will put about £1.25bn into pensioners’ pockets, after recovering around £450m by clawing back payments from wealthier recipients. Payments will be issued automatically by the Department for Work and Pensions and, where income exceeds the £35,000 threshold, HMRC will recover the full amount via PAYE or self assessment, mirroring the high-income child benefit charge. No registration is required, though an opt-out will be offered later this year.

The move brings nine million households back into scope after only 1.5m qualified last winter when eligibility was tied to pension credit. Tax specialists welcome the broader support but warn that the new means test could add administrative complexity and fresh inequities between single- and dual-income households.

Reeves said: “Targeting winter fuel payments was a tough decision, but the right decision because of the inheritance we had been left by the previous government. It is also right that we continue to means test this payment so that it is targeted and fair, rather than restoring eligibility to everyone, including the wealthiest.”

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Making the most of eco-friendly tax breaks.

The policy push for a net-zero economy is now hard-wired into the UK tax system, with many businesses investing in lower-carbon equipment, property upgrades and greener vehicles. The tax system offers a range of permanent and time-limited reliefs that can cut the headline cost of those projects by up to 25%. We have summarised the main opportunities below, together with the deadlines and practical steps we recommend you take during the rest of the 2025/26 tax year.

The financial case for sustainable investment

• UK businesses active in the low-carbon and renewable energy economy generated £69.4bn of turnover and supported 272,400 full-time jobs in 2022 (according to the Office for National Statistics).
• Environmental taxes raised £52.5bn in 2023, three-quarters of which fell on energy use. This accounted for 5.5% of total tax revenue.
• Battery-electric car registrations in May 2025 rose 25.8% year on year and took a 21.8% share of all new cars sold (Society of Motor Manufacturers and Traders data, 5 June 2025).

These figures show that green investment is no longer niche. It is mainstream economic activity that attracts both customer demand and significant tax support.

Capital allowances you can claim this year

Full expensing – permanent 100% relief

Companies subject to corporation tax can deduct the full cost of qualifying plant and machinery purchased in 2025/26 against taxable profits. The deduction is worth 25p for every £1 spent at the main 25% corporation tax rate or 19% for companies paying at the small profits rate. Cars are excluded, but production equipment, electric vans, solar panels and heat-pump systems installed at commercial premises qualify.

What to do now

• Keep supplier quotations that prove the environmental specification (for example, “MCS-certified heat pump”).
• Review project budgets before you place orders so you can confirm which items are eligible.

Annual investment allowance (AIA) – £1m for all businesses

Unincorporated businesses, and companies that have used up their full-expensing capacity, can claim 100% relief under the AIA. We will normally use the AIA for integral features (lift shafts, lighting, wiring) that would otherwise go into the 6% special-rate pool.

Zero-emission vehicles and charging infrastructure

The Chancellor has extended the 100% first-year allowance for new zero-emission cars, vans and workplace charge-points to expenditure incurred up to 31 March 2026 for companies (5 April 2026 for other businesses).

Benefit-in-kind (BiK) position

• Zero-emission company cars are taxed at 3% of list price in 2025/26.
• The rate then rises by one percentage point a year, reaching 7% in 2028/29, still far below the 37% rate that applies to high-emission models.

Salary-sacrifice EV schemes remain a cost-effective staff benefit. If you operate or intend to launch one, tell us as soon as you have indicative orders so we can model the employer’s Class 1A national insurance saving and any cashflow implications.

Reliefs linked to property and land

Land remediation relief

Companies that clean up contaminated or long-term derelict land may deduct 150% of qualifying costs or exchange a loss for a cash credit worth 16% of the spend. Typical qualifying work includes removing asbestos, treating Japanese knotweed and demolishing unsafe structures. The claimant must not have caused the contamination.

Structures and buildings allowance (SBA)

The SBA offers a 3% straight-line deduction for new non-residential buildings and major renovations. You’ll still qualify if your project includes low-carbon features such as green roofs or high-performance insulation – making it easier to build sustainably without losing relief.

Freeports and investment zones

If your site sits within a designated “special tax site”, you can claim:

• 100% first-year allowance for plant and machinery used primarily in the zone
• 10% SBA for new commercial buildings
• Stamp Duty Land Tax relief on qualifying property purchases
• Business rates relief (available in many zones for up to five years)

All reliefs apply to qualifying expenditure incurred up to 30 September 2026. Please contact us well before contracts are signed so we can confirm boundary maps and the tests that the asset must meet during its first five years of use.

R&D tax relief – merged scheme now live

Since 1 April 2024, the small and medium-sized enterprise (SME) and research and development expenditure credit (RDEC) regimes have been replaced by a single credit equal to 20% of qualifying research and development (R&D) spend. After corporation tax, the net benefit is 15% for companies paying the main rate, and 16.2% for those on the small profits rate. A higher rate still applies where at least 30% of total costs are R&D (“R&D-intensive” relief).

Green innovation often qualifies: recyclable packaging, low-carbon cement, advanced energy-monitoring software or waste-heat recovery systems are just a few examples we have seen this year. Keep a short monthly log of project aims, technical uncertainties and staff time; it cuts down claim preparation time at year-end and provides the evidence HMRC requests in compliance checks.

Cutting running costs with climate change levy reliefs

Businesses that sign a climate change agreement can cut the climate change levy by 92% on electricity and 89% on gas throughout 2025/26. Manufacturing trade bodies handle much of the paperwork, so set up a short call with us if you are a heavy energy user and have not yet assessed the saving.

Coming change – Spring Statement 2025 confirmed that electricity used to produce green hydrogen will be exempt from the levy once the Finance Bill 2025/26 passes. If you are planning on-site electrolysis, we will help you model the expected discount once the draft legislation is published.

VAT savings on energy-saving materials

Installations of solar panels, heat pumps, insulation and other energy-saving materials in domestic or qualifying charitable buildings attract a zero rate of VAT until 31 March 2027. This applies throughout Great Britain and, from 1 May 2023, also to Northern Ireland under the Windsor Framework. If you own residential or charitable property through the business or personally, check quotations to ensure the zero rate has been applied before signing.

Grants and other support worth noting

Below are the main grant schemes our clients are drawing on this year. Each scheme opens and closes funding “windows”, so let us know early if you plan to apply.

• Industrial energy transformation fund (phase 3) – capital grants covering 30% to 70% of energy-efficiency or fuel-switching projects that cost at least £100,000.
• Boiler upgrade scheme – £7,500 off the upfront cost of air-source or ground-source heat pumps in small commercial or domestic properties. Now extended to 2028.
• Local net-zero accelerator programmes – region-specific grants and match funding for electric-vehicle infrastructure, retrofit projects and training. Local enterprise partnerships publish calls several times a year.

Where a grant meets part of the cost, the capital allowances claim must be reduced by the funded amount. We will adjust the figures automatically when we prepare your corporation tax or income tax computation.

Year-end planning actions for 2025/26

• June to July 2025 – finalise orders for zero-emission cars, vans and workplace charge-points; delivery lead times are stretching and the 100% first-year allowance ends on 31 March/5 April 2026.
• August 2025 – start collating 2024/25 R&D project records. We will draft claim packs early to avoid the surge in HMRC inquiries we have seen close to filing deadlines.
• Autumn 2025 – map planned construction and equipment purchases against freeport or investment-zone boundaries. Moving a project a short distance can unlock the 100% plant allowance and 10% SBA.
• January 2026 – ask us to run a pre-year-end profit forecast if your company is near the £50,000 or £250,000 profit thresholds. Pulling forward or deferring spend by a few weeks can shift the tax rate from 26.5% to 25% or 19%.

Record-keeping and compliance checklist

1. Maintain a detailed fixed-asset register with a simple code (“FE”, “AIA”, “SBA”, etc) showing which allowance you have claimed for each item.
2. Store invoices and specifications that confirm energy ratings or zero-emission status; photos of serial plates and EPC certificates are acceptable digital evidence.
3. Tie grant agreements to spend – HMRC will ask whether any third party funded part of the project.
4. Minute board decisions that refer to environmental impact; this demonstrates commercial motivation as well as tax planning.
5. Monitor asset location – removing plant from a freeport site within five years can trigger a clawback.

Next steps

Tax reliefs for sustainable investment are generous but deadline-driven. If you are considering capital expenditure, fleet renewal or green R&D during 2025/26, please contact your accountant as early as possible to:

• confirm which allowances apply and model the cashflow benefit
• check interaction with grants, freeport rules and corporation tax thresholds
• draft any advance assurance or CCA paperwork
• ensure the claim is processed smoothly in your next tax return.

The sooner we discuss your plans, the more options we can keep open. We look forward to helping you make the most of the available incentives while supporting the wider transition to a low-carbon economy.

Giving your children a head start in life.

Many parents and carers want to give children a solid financial base, yet feel unsure where to begin. The UK tax system offers several wrappers and allowances designed for minors, each with different rules on access, tax treatment and contribution levels.

Saving for a child is not just about handing over a lump sum at 18. It can reduce student debt, fund a first driving lesson, provide a house-deposit boost or even kick-start a pension. Starting early means more time for interest, dividends and tax relief to compound and for annual allowances – such as the Junior ISA limit – to be used before they fall away at each 5 April.

This guide explains the main wrappers and figures that apply in 2025/26, shows how different goals match different accounts, and outlines the ways our firm can lighten the administrative load. We hope it gives you a clear starting point. If a particular option catches your eye, please get in touch and we will set the wheels in motion.

Why early saving matters

• 18-year-olds who receive even a modest lump sum are less likely to rely on expensive borrowing for university or early working life.
• HMRC data shows that 1.25m Junior ISA (JISA) subscriptions were made in 2022/23 and uptake continues to rise.
• With consumer price inflation at 3.5% in April 2025, many children will need larger deposits for rent or property by the time they reach adulthood.

Saving early makes full use of allowances that reset each 5 April and allows compound growth to work for many years.

Junior ISAs – the primary tax-free wrapper

What we do for you

• We will check that total subscriptions across all JISAs stay within the £9,000 limit.
• We’ll point you towards cash JISA providers currently paying around 4% AER variable (rates correct June 2025) or low-cost stocks & shares platforms if you are comfortable with investment risk.
• From April 2024 the restriction on subscribing to multiple adult ISAs of the same type was removed – but this does not apply to Junior ISAs. Children are still limited to one cash JISA and one stocks & shares JISA per tax year, subject to the overall £9,000 limit.

Child Trust Funds – review or transfer

Children born between 1 September 2002 and 2 January 2011 may still hold a Child Trust Fund (CTF). However, they cannot hold both a CTF and a Junior ISA at the same time. If you wish to switch to a Junior ISA, the CTF must be transferred first – but this doesn’t use up the £9,000 JISA subscription limit, meaning you can add fresh funds after the transfer.

HMRC estimates that over 670,000 young adults have not yet claimed mature CTFs, with an average value of about £2,000.

How we can help

1. Trace forgotten accounts – we can guide you through HMRC’s online tracing tool.
2. Compare fees and returns – many legacy CTFs carry higher charges than modern JISAs.
3. Transfer where sensible – a CTF can move into a JISA without using the receiving JISA’s £9,000 limit, allowing up to £18,000 of new tax-free funding in the same year (transfer first, then add fresh money).

Children’s savings accounts – simple, flexible, taxable

A standard children’s savings account at a bank or building society pays interest outside the ISA system.

• Personal allowance: £12,570 – applies to children as well as adults.
• Starting-rate band for savings: Up to £5,000 of interest can still be tax free if the child has little or no other income.
• Parental settlement rule: If a parent provides the capital and total annual interest for that child exceeds £100, the entire interest is taxed as the parent’s income. Gifts from grandparents or other relatives are not caught.

With easy-access children’s savings rates of roughly 4-5% AER, you reach the £100 threshold at balances of £2,000-£2,500. If you plan to save more than that, a JISA or Premium Bonds usually suits better.

Premium Bonds – prize-based saving

Premium Bonds suit families that have already filled the £9,000 JISA allowance but still wish to put aside money tax free. Returns are not guaranteed, yet the chance of a prize appeals to many children and parents alike.

Junior SIPPs – retirement saving from birth

The government adds basic-rate tax relief even though the child has no earnings, so £2,880 paid in becomes £3,600 straightaway. The very long lock-in means a junior pension should sit alongside, not instead of, vehicles that support university costs or a first home. It is common practice for grandparents with surplus income to use junior SIPPs to pass on wealth without starting the seven-year inheritance tax clock, provided contributions come from normal income and leave the donor’s lifestyle unchanged.

2025/26 allowances at a glance

Tax points to watch

1. £100 parental interest rule – monitor non-ISA accounts each January when banks issue annual statements.
2. Frozen personal allowance – the allowance stays at £12,570 until 2028, so higher interest rates may push children with large balances into tax sooner than expected.
3. Student finance – large sums held in a child’s name count towards assessed income for maintenance loans in England.
4. Investment risk – stocks & shares JISAs and junior SIPPs can fall in value. The Financial Services Compensation Scheme covers up to £85,000 per firm.
   Universal credit interactions – savings in a child’s name usually do not affect parents’ entitlement, but income generated can. If this applies to you, let us know and we will arrange specialist advice.

Six practical steps to take now

1. Check what already exists: Does your child have a JISA or a CTF? We can confirm this for you.
2. Clarify the goal: Short-term spending at 18, a first-home deposit or retirement savings will lead to different choices.
3. Use allowances in order: JISA, Premium Bonds, children’s savings account, then junior pension.
4. Set up regular payments: Most providers accept £25 a month; direct debits remove hassle.
5. Review yearly: At the start of each tax year we will remind you to check interest rates and fund performance.
6. Include the child: Show them statements and explain how interest works to build financial awareness early.

How we help you

• Compliance – we track contributions and alert you if you approach annual limits.
• Provider selection – we keep a current list of competitive cash JISA rates and low-cost investment platforms.
• Paperwork – we handle transfer forms if you move a CTF to a JISA or switch providers.
• Inheritance-tax planning – we record gifts and advise on using the £3,000 annual exemption and normal-expenditure rules.
• Tax returns – if non-ISA interest pushes you over your personal-savings allowance, we include it in your self assessment return.
• Updates – when HM Treasury announces changes we summarise what they mean for your family and suggest timely actions.

Next steps

Putting money aside for children may feel like one more task on an already long parental to-do list, yet it is one of the few actions that can deliver three wins at once: a financial head start for the child, efficient use of annual tax allowances and peace of mind for the wider family. By acting now you capture the 2025/26 limits in full and give each pound more time to grow before the child needs it.

Our team is here to make the process straightforward. We will recommend suitable providers, complete the forms, record gifts for inheritance tax purposes and remind you when reviews are due. Whether you prefer the certainty of a cash JISA, the excitement of Premium Bonds or the long-term boost of a junior pension, we can fit the choice to your goals and budget.

If you would like to explore any of the ideas in this guide, please get in touch. A short conversation today could mean a much stronger financial footing for your child tomorrow.

The Organisation for Economic Co-operation and Development (OECD) expects UK economic growth to be slower than previously forecast. The Paris-based body has revised its UK growth forecast for 2025 from 1.4% to 1.3% and cut its 2026 estimate from 1.2% to just 1%.

The downgrade follows a broader fall in global growth expectations, primarily driven by trade tensions triggered by the US’s renewed use of import tariffs. The OECD said that higher-than-expected inflation and tight public finances have also weighed on the UK’s outlook.

Although the UK economy grew by 0.7% in the first quarter of 2025, the OECD noted a sharp loss of momentum. Business confidence is fading, retail sales have been volatile and consumer sentiment has declined since mid-2024.

Almost all OECD member countries received downgraded forecasts. Global growth is now projected at a modest 2.9% in 2025 and 2026, compared to March’s estimates of 3.1% and 3% respectively. The US, Mexico and Canada will likely be hardest hit by tariff-related uncertainty.

The UK Chancellor, Rachel Reeves, faces added pressure ahead of her upcoming spending review. With tax revenues constrained by a stagnant economy and rising health, pensions and defence costs, there’s little budget headroom.

The OECD advised the UK to prioritise capital investment by limiting day-to-day spending. However, it warned that even small economic shocks could derail existing fiscal plans and prompt further cuts.

Chat to us about your spending.

Strategies for risk management.

Diversification spreads risk across different assets, markets and tax wrappers. It helps private investors smooth returns instead of relying on a single share, fund or property. The principle is simple: assets rarely move in perfect sync, so setbacks in one area may be offset by steadier performance elsewhere. A balanced portfolio is therefore less exposed to shocks and better placed to meet long-term goals such as retirement income, school fees or a future house purchase.

UK households already hold significant investable wealth, yet much of it sits in a narrow range of assets. HMRC reports that adult ISA pots were worth £725.9bn at the end of 2022/23 – almost three-fifths in stocks and shares accounts. The Office for National Statistics finds that median household wealth outside pensions stands at £181,700, while at the same time, the Office for Budget Responsibility expects real household disposable income to grow by only about 0.5% a year between 2025/26 and 2029/30. Against that backdrop, disciplined diversification, guided by clear risk limits and tax-efficient structures, can add real value.

Start with a written risk profile

Before you choose assets, agree on an evidence-based view of risk tolerance and capacity for loss. First, estimate the time horizon for each objective – five years for a home deposit, 20 years for retirement and so on. Next, map likely cashflow needs, separating essential spending from discretionary outgoings. Third, gauge how much short-term volatility the client can accept without abandoning the plan. Finally, run stress tests that model, say, a 20% equity market fall or a two-percentage-point jump in yields. Capturing these factors in writing creates an anchor for portfolio design and for future reviews.

Asset-class building blocks

A diversified allocation normally combines five components. Cash deposits provide day-to-day liquidity and a buffer for emergencies. Investment-grade bonds – UK gilt funds and sterling corporate issues – dampen equity swings and deliver income. Listed equities, both domestic and overseas, drive long-term growth through reinvested dividends and earnings expansion.

Property exposure, via real-estate investment trusts (REITs) or a directly owned rental, adds a different return stream linked to rents. Finally, alternatives such as infrastructure funds, commodities or market-neutral strategies contribute risk dispersion because they react differently to macro shocks. The exact weight of each building block flows from the risk profile and time horizon above.

Put tax wrappers first

Even a sound asset mix can leak value if it sits in the wrong wrapper, so we encourage clients to deploy allowances early in the tax year. The 2025/26 ISA subscription limit remains £20,000. All income and gains inside an ISA escape income tax and capital gains tax (CGT). The dividend allowance has shrunk to £500, so equity funds that generate material distributions belong inside an ISA or pension. Capital gains tax’s annual exempt amount is now £3,000; anything above that triggers tax at 18% or 24% depending on the investor’s income tax band. Choosing the right wrapper is therefore as important as picking the right asset.

Keep pensions at the core

The abolition of the lifetime allowance in 2024 simplified pension planning. For 2025/26 the key figures are as follows:

• Annual allowance: £60,000, subject to tapering for adjusted income above £260,000.
• Money purchase annual allowance (MPAA): £10,000 once flexible benefits have been accessed.
• New lump-sum limits: Lump sum allowance of £268,275 and lump sum and death benefit allowance of £1,073,100 remain in place.

For many higher-rate taxpayers, a pension remains the most efficient home for global equity and diversified bond funds. Regular contributions, employer matching and carry-forward of unused allowance can restore balance if market movements skew the overall mix.

Diversify by geography and sector

Concentration risk is not limited to asset class. UK-listed shares account for less than 4% of the MSCI All Country World Index (ACWI), yet many investors still hold a home-biased portfolio. You can mitigate that bias by blending global developed-market trackers covering North America, Europe and Japan with a measured slice of emerging-market equities.

Sector exposure also matters: healthcare, technology and infrastructure each carry distinct demand and regulatory drivers. By spreading holdings across regions, sectors and currencies, we lower the portfolio’s sensitivity to domestic inflation, policy or political changes.

Build in defensive holdings

Defensive assets help contain drawdowns when growth assets fall. Gilts often rise during risk-off episodes, though rising yields can dent prices in the short term. Short-duration bond funds limit interest-rate risk. Some clients allocate a small slice – typically no more than 5% – to gold-backed exchange-traded commodities because the metal’s long record of low correlation with equities adds ballast. Targeted absolute-return strategies that aim for steady positive returns can also serve as shock absorbers, provided the cost structure is transparent. The exact defensive allocation again links back to the written risk profile.

Rebalance with discipline

Market movements push allocations off target over time. We encourage at least an annual rebalance, or an interim trade if any asset drifts more than five percentage points away from its strategic weight. That discipline restores the intended risk level, trims winners after strong runs and directs new cash to under-represented areas after a fall. Most modern platforms let you automate the process, which removes emotion from timing decisions and improves long-run consistency.

Track allowances and threshold freezes

Tax thresholds are frozen again in 2025/26, keeping the personal allowance at £12,570 and basic-rate band at £37,700. As earnings creep up, investors may slip into higher tax bands, making wrapper strategies even more valuable. Meanwhile, the Office for Budget Responsibility projects real household disposable income to grow only 0.5% a year on average over the next five years. Low real-income growth increases reliance on investment returns, underscoring the case for careful risk management.

Key annual tasks include the following:

• Personal allowances: Track income shifts and adjust pension or salary-sacrifice levels.
• ISA funding: Maximise before 5 April.
• Pension contributions: Use carry-forward where affordable.
• Dividend and savings allowances: Migrate taxable assets into wrappers where practical.

Avoid common pitfalls

Over-concentration is one of the most frequent issues, for example, when a legacy single-stock holding dominates the equity sleeve or a buy-to-let property dominates total wealth. Options include seeking gradual sales within the CGT allowance, using “bed and ISA” transfers, and – where appropriate – taking out insurance to reduce the liquidity risk tied to property.

Another trap is abandoning bonds because yields look unattractive – that step often leaves the investor with unwanted volatility just when liquidity matters most. Inadequate rebalancing is another danger: without a systematic rule, investors are prone to chase last year’s winners and miss recovery rallies. Documented policy plus automated platform tools solve this problem quickly.

How we work with you

As accountants, we have deep insight into our clients’ income streams, cashflow patterns and tax position. We complement that insight with regulated investment advice, portfolio construction and ongoing monitoring. Working together, we provide the following:

1. Data sharing: Secure exchange of tax returns and pension statements ensures up-to-date figures.
2. Joint planning meetings: Align the investment mandate with tax strategy and life goals.
3. Quarterly reporting: Plain-language updates on performance, asset allocation and forthcoming allowance deadlines.
4. Year-end checklist: Confirm ISA and pension funding, crystallise CGT losses if needed and document rebalancing trades.

Keeping your goals in focus

Diversification works because it brings together assets that respond differently to economic events, interest-rate moves and policy changes. By spreading exposure across shares, bonds, property and selected alternatives, investors reduce the chance that one setback wipes out years of progress.

The mechanics may feel straightforward, yet the real benefit comes from the discipline that surrounds them. A written risk profile keeps goals, time horizon and capacity for loss in clear view. Regular rebalancing restores the intended shape of the portfolio, while ongoing tax checks make sure wrappers and allowances do as much of the heavy lifting as possible.

The coming tax years are set against a backdrop of frozen thresholds and shrinking allowances. Without careful planning, more income and gains will fall into higher bands and erode real returns. A pension, with its generous upfront relief and freedom from CGT, remains the most effective shelter for long-term holdings. ISAs follow close behind for shorter-term objectives and for investors who have already reached the annual pension limit. Beyond those wrappers, thoughtful use of the annual CGT exemption and dividend allowance can still trim the liability on taxable accounts.

Moving forward

Diversification is not a one-off event; it is a continuing cycle of review, measurement and adjustment. Market prices move daily, but the investor’s goals change more slowly. We bridge that gap by monitoring allocations against the agreed risk range and by making incremental trades rather than wholesale shifts. That steadiness reduces emotional decision-making and helps clients stay invested through market noise.

Your accountant sits at the centre of your financial picture, turning raw numbers into clear actions. Because they see your cashflow, business income and reliefs in real time, they can flag spare allowances, shape pension contributions and schedule ISA funding before deadlines bite. Regular conversations also let them harvest CGT losses, monitor dividend limits and adjust salary-sacrifice arrangements. With that proactive oversight, tax savings fall naturally into place and your long-term goals stay on course.

In short, a diversified portfolio, backed by clear documentation and regular maintenance, stands the best chance of preserving and growing purchasing power over the long term. It turns market uncertainty from a threat into an opportunity, enabling clients to pursue their financial goals with greater confidence and clarity.

For a deeper discussion of a specific investment case, please contact us.

Practical steps to grow your business through exports.

Exports already account for around 30% of UK gross domestic product (GDP), and the government wants that share to rise further by helping more small firms sell overseas. In the 2024 Autumn Statement, ministers renewed the goal of lifting UK exports to £1 trillion a year by 2030. Although the headline target often makes the news, the real shift will come from the thousands of owner-managed businesses that decide to quote for an order in Dublin, Dubai, or Denver for the first time.

That decision can feel bold, yet it is rarely speculative. The latest Business Insights survey from the Office for National Statistics shows that 22% of UK firms with 10 or more staff shipped goods, services or both abroad in the 12 months to April 2025. The same dataset suggests that a further 9% expect to start exporting within the next year. Cheap cloud software, predictable customs processes and direct-to-consumer platforms mean that geography limits fewer firms than before.

Of course, every extra customer, currency and border adds work. Directors must prove product compliance, hold export evidence for VAT, and protect cashflow against longer settlement periods. That is where your accountant comes in, offering clear, specific guidance that reflects current tax rules and funding schemes.

This guide focuses on three practical questions. Is the business ready? What are the tax and compliance rules for 2025/26? Which public or private programmes can reduce the upfront costs?

Why exporting still matters for SMEs

A larger export base lifts national output and improves productivity, and the opportunity is tangible even for smaller firms.

• Market potential: Exports give a micro business access to customers whose combined spending power far exceeds that of the UK alone.
• Scale benefits: Higher volumes can lower unit costs and justify investment in automation or product development.
• Resilience: Revenue from more than one region can offset domestic slowdowns or sector-specific downturns.

The appetite is growing. Momentum is visible in the trade data too. The value of UK goods exports rose by £1.8bn (6.3%) in January 2025 compared with December 2024.

Assessing readiness – finance and operations

Before a firm starts quoting to overseas buyers, encourage directors to work through the points below.

• Turnover stability: Has the business produced at least two years of steady income and profit?
• Free cashflow: Can it fund longer payment cycles and higher inventory without short-term borrowing spikes?
• Management capacity: Does the team have time to deal with customs queries, language differences and extra paperwork?
• Intellectual property: Are trademarks or patents protected in the target market?
• Supply-chain resilience: Can key inputs be sourced from more than one supplier or location?
• Product compliance: Do existing certifications meet local safety or labelling rules?
• Customer-service planning: Is after-sales support, including returns, feasible at a distance?

As accountants, we help clients quantify each item. A quick-ratio test and rolling 12-month cashflow forecast often reveal whether the business can shoulder the extra working capital.

Tax and compliance framework 2025/26

Trading overseas brings added tax considerations, even for experienced domestic businesses.

Corporation tax

The small profits rate remains at 19% for profits up to £50,000, while the main rate of 25% applies to profits above £250,000. Marginal relief is available for profits that fall between these thresholds.

For clients with group structures, it’s worth modelling how overseas activity might affect overall profit allocation – particularly if they’re planning to open a foreign branch.

Value added tax (VAT)

• The UK VAT registration threshold remains £90,000 of taxable turnover for 2025/26.
• Exports of goods are usually zero-rated, but the seller must hold evidence of dispatch within three months.
• Digital services supplied to EU consumers fall under the non-Union one-stop shop (OSS) scheme, which simplifies registration in multiple member states.

Customs and duties

Agree on the correct incoterms (international commercial terms) at the quotation stage so everyone knows who books the transport, who pays duty and at what point the risk passes. Show the terms on the commercial invoice alongside the eight-digit commodity code, customs value, and net and gross weight. Submit your export declaration through the Customs Declaration Service (CDS) and give the haulier the movement reference number before collection.

For consignments entering the EU, the UK-EU Trade and Cooperation Agreement can remove tariffs if the goods meet the rules of origin. Keep supplier declarations or a self-declaration on the invoice confirming UK origin and store the paperwork for at least four years, as customs officers may ask for proof long after the shipment clears. If the product falls outside the agreement – for instance, because it contains a high proportion of non-UK inputs – build the duty rate into your landed-cost calculation so you quote a realistic price.

Import VAT is usually payable by the buyer at the border, but you can simplify their cashflow by offering Delivered Duty Paid (DDP). In that case, you act as importer of record, recover the VAT through a local registration, and charge it back to the customer in sterling. Whatever model you choose, keep your evidence bundle – commercial invoice, packing list, transport documentation, origin statements, and any preference certificates – complete and well-indexed so future audits run smoothly.

Employment taxes

Posting staff abroad may trigger tax residence in the host country. Short-term business visitors can stay on UK payroll, but firms must apply for a short-term business visitor reporting agreement with HMRC.

Currency and cashflow management

A single delayed payment in a different currency can destabilise a small business. We recommend the following actions.

• Multi-currency accounts: Reduce transfer fees and allow receipts to be held until rates improve.
• Forward contracts: Lock in an exchange rate on the day the sale is agreed.
• Natural hedging: Match currency of revenue and costs where possible.
• Structured payment terms: Ask for a deposit on order, stage payments on shipment or use letters of credit.
• Export credit insurance: Protect against customer default in higher-risk markets.

We can build exchange-rate scenarios into your cashflow forecast so you can see the worst-case draw on working capital.

Market selection and risk evaluation

Choosing the first overseas market is often harder than shipping itself. Base the shortlist on measurable evidence.

• Begin by sizing the opportunity, focusing on sector demand rather than headline GDP.
• Check regulatory fit, confirming product standards, labelling rules and any licensing.
• Consider whether a UK free-trade agreement removes tariffs or quotas.
• Compare logistics cost and reliability – freight rates, sailing schedules, flight frequency and local warehousing.
• Look at payment culture by reviewing average settlement periods and the ease of enforcing contracts.
• Gauge political and economic stability through the Department for Business and Trade’s risk scores.

After ranking the options, advise the business to pilot one market at a time so it can refine price, marketing and distribution without heavy upfront costs.

Support programmes and finance

Several schemes reduce the upfront cost of exporting.

• UK Export Finance (UKEF) general export facility: Guarantees up to 80% of a working-capital loan from a high-street bank.
• UKEF export insurance policy: Covers up to 95% of the value of an export contract if the buyer defaults.
• DBT Export Support Service: Free advice on logistics, tax and market entry.
• Internationalisation Fund (England): Match-funds up to £9,000 of market research or trade-show expenditure.
• Growth Guarantee Scheme: 70% government guarantee on loans up to £2m, extended to March 2026.

Applications move faster when your accountant supplies historic accounts, management information and cashflow projections that align with the export plan.

Practical first steps

1. Define export goals: Set a revenue or unit target that is achievable within 12 months.
2. Choose a pilot market: Base the choice on data rather than anecdote.
3. Price the product: Include landed cost, margin and buffer for exchange-rate swings.
4. Register and comply: Obtain an economic operators registration and identification (EORI) number and confirm any local VAT obligations.
5. Arrange logistics: Pick incoterms, agree lead times with a freight forwarder and book insurance.
6. Protect cashflow: Secure a letter of credit, export insurance or deposit before production starts.
7. Monitor performance: Review profit per market each month and refine the plan.

Putting it into practice

Exporting remains one of the fastest ways for a small UK business to grow turnover, sharpen its product and diversify risk. It is also more structured, and therefore more manageable, than many owners first assume. The rulebook is clear, the support programmes are well funded and reputable logistics partners handle the mechanics of shipping every day.

What matters most is preparation. Reliable cashflow forecasts show whether the firm can carry longer payment terms. A documented VAT process avoids penalties and keeps input-tax recovery smooth. Early dialogue with UKEF or a relationship bank can secure a working-capital guarantee before production ramps up. When these foundations are in place, directors can focus on sales and service rather than firefighting finance issues.

Accountants sit at the centre of that preparation. We translate tax law into practical checklists, sense-check currency scenarios and package the numbers that lenders want to see. By doing so, we help businesses move from interest in exporting to sustainable overseas revenue. Use this guide as a living reference. Update the figures each spring, share the action points at board meetings and remind owners that data-led planning will always beat guesswork.

Talk to us about preparing your business for overseas sales.

The Bank of England has cut interest rates by 0.25% to 4.25%, aiming to support the UK economy as uncertainty rises. It marks the fourth reduction since August 2024.

The Monetary Policy Committee (MPC) warned that economic growth will likely remain subdued, predicting a further 0.3% slowdown over the next three years. Two members called for a larger 0.5-point cut in a split decision, while two voted to keep rates at 4.5%.

Growth is expected to stall through the rest of 2025, with concerns including the impact of US trade policy and ongoing uncertainty over the UK’s future economic direction. The Bank announcement came shortly before the UK government confirmed a new trade deal with the US, which eases tariffs on cars, steel and aluminium. However, the Bank’s forecasts do not yet reflect the terms of that deal.

Inflation driven by higher council tax and utility bills will peak at 3.5% in the third quarter. Despite a slightly lower forecast, inflation is not expected to return to the 2% target until spring 2027.

The Bank also flagged the potential impact of the Chancellor’s recent £25bn rise in employer national insurance, warning it could affect jobs, wages and prices.

The Trades Union Congress urged faster rate cuts to ease pressure on households and support business investment. Prolonged price rises have weakened consumer confidence, which remains fragile, and further economic recovery looks limited.

Talk to us about this change.

Unemployment has risen to 4.5%, the highest level since summer 2021. The figure covers the first quarter of 2025 and marks a 0.2 percentage point increase from the previous quarter.

The rise in joblessness is based on data from the Office for National Statistics’ (ONS) Labour Force Survey, which has faced heavy criticism due to declining response rates. However, the ONS said recent updates show “clear improvement” in data quality.

Alongside the higher unemployment rate, job vacancies have also dropped. There were 761,000 vacancies in the three months to April, down 5.3% on the previous quarter and 131,000 fewer than a year earlier. The construction industry saw the most significant fall in openings.

Regular pay growth slowed slightly to 5.6% in the three months to March, compared with 5.9%. While still high by historical standards, the slower growth may reassure the Bank of England’s monetary policy committee, which reduced interest rates to 4.25% last week.

The number of payroll employees also dipped by 47,000 between February and March. The overall employment rate was steady at 75%, while economic inactivity increased to 21.4%, still above pre-pandemic levels.

The Bank of England is watching closely as firms adapt to a £25bn rise in employer national insurance contributions and a 6.7% increase in the national living wage. Meanwhile, the ONS is undergoing an independent review into the reliability of its data.

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