HMRC has urged taxpayers to be alert to scams as the self-assessment season picks up. Over the past year, nearly 145,000 scam attempts were reported, a 16.7% increase compared to the previous year.

Fraudsters often pose as HMRC, using fake tax refund offers or demanding unpaid tax to steal personal and financial details.

Alarmingly, around half of all reports involved fraudulent rebate claims. HMRC has stressed that it never contacts taxpayers via text, email, or phone to offer refunds or demand payments. It will also never leave threatening voicemails about legal action or arrest.

HMRC says tax refunds can only be claimed securely through an official online account or the free HMRC app. Suspicious messages or unexpected contacts should be ignored – do not reply, share information, download attachments, or click on links, as these can lead to data theft or malware attacks.

HMRC’s advice to report scams:

• Forward suspicious emails to phishing@hmrc.gov.uk
• Report fraudulent calls via the HMRC website on gov.uk
• Forward scam texts to 60599

Earlier this year, the Government launched the ‘Stop! Think Fraud’ campaign, which was supported by organisations in law enforcement, tech, banking, and telecoms.

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Licensed gambling operators could face a new levy from April 2025, calculated as a percentage of their Gross Gambling Yield (GGY).

Rates will range from 0.1% to 1.1%, varying by sector, operating costs, and harm caused. Operators earning under £500,000 in gross profits will be exempt, though this threshold may be reviewed by 2030.

The Government aims to raise £90-£100 million annually, with 50% allocated to NHS gambling treatment services, 30% towards harm prevention, and 20% for research led by the Gambling Commission and the UK Research and Innovation (UKRI).

Stake limits for online slots will also change, capped at £5 for over 25-year-olds and £2 for those aged 18-24.

The levy proposal received mixed feedback during the consultation process, which involved 68 respondents, including operators like William Hill, NHS bodies, councils, charities, and lottery organisations. Only 35% agreed with using GGY as the basis for the levy, while 50% opposed it. Concerns were also raised about exempting smaller operators, with fears of loopholes and unfairness in distribution.

Currently, contributions to gambling addiction research are unequal, with some companies paying as little as £1 annually. The proposed levy seeks to address this imbalance and ensure sustainable funding. If approved, the Gambling Commission will enforce the levy starting 6 April 2025.

Gambling Minister, Baroness Twycross, said: “Gambling harm can ruin people’s finances, relationships, and ultimately lives. We are absolutely committed to implementing strengthened measures for those at risk, as well as providing effective support for those affected”

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Two years after ChatGPT sparked a surge in artificial intelligence development, the Government has launched GOV.UK Chat, an experimental chatbot designed to deliver personalised, quick answers using information from relevant GOV.UK pages.

Unlike HMRC’s tax manuals, this tool focuses on reducing bureaucracy and assisting small businesses in more efficiently navigating Government resources.

Powered by OpenAI’s GPT-4o technology, the chatbot is part of a four-week trial involving up to 15,000 users. According to the Department for Science, Innovation and Technology (DSIT), the goal is to slash citizens’ time searching for guidance. The trial builds on a more minor January test where 70% of users found the chatbot’s responses helpful, and nearly 65% were satisfied with the experience.

If successful, GOV.UK Chat could eventually roll out across the Government’s sprawling 700,000-page website, which currently serves over 11 million weekly users.

To access the chatbot, users must register on the GOV.UK Chat landing page by entering an email address and answering a few questions about their purpose for using it. Once registered, the chatbot is accessible on 30 key pages, such as “Set up a business,” via a link or a button in the top-right corner.

The chatbot mimics HMRC’s web chat interface but highlights the absence of human involvement. While still in its early stages, GOV.UK Chat represents a step forward in leveraging AI to simplify access to Government information for businesses and citizens alike.

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HMRC has extended the processing time for agent services account (ASA) and VAT agent reference number applications to 40 working days – eight weeks – up from the previous 28 days.

This change applies from the date HMRC receives an application.

Applications for an ASA must be submitted in writing, as no online application process is available. Agents must have an existing HMRC online services account and at least one authorised client for self assessment, corporation tax, PAYE, or VAT to create an account.

An ASA is required for agents to access essential online tax services. These include Making Tax Digital for VAT and Income Tax Self Assessment, the online tax registration service, the Income Record Viewer, capital gains tax on UK property, the trust registration service, and taxes like plastic packaging tax, multinational top-up tax (MTT), and domestic top-up tax (DTT).

The increased processing time highlights the need for HMRC to invest in modernising its digital services. An improved digital infrastructure could streamline applications and provide accountants with better tools to manage clients’ tax affairs.

For now, agents should account for the longer approval timeline when planning client services, particularly for new engagements requiring immediate online tax capabilities.

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Saving for retirement can feel daunting for many self-employed people. Without the workplace schemes that salaried workers often rely on, self-employed individuals must take proactive steps to secure their financial futures. But with the right guidance, pensions can become a valuable tool for your retirement planning.

We’ll walk you through why pensions are vital, your pension options as a self-employed person and some practical ways to maximise your retirement savings.

Why pensions matter for the self-employed

When you’re self-employed, financial planning often revolves around the immediate needs of your business. However, looking after your future is just as important, and a pension offers a tax-efficient way to save. Research from the Department for Work and Pensions shows that only 16% of self-employed workers contribute to a pension, compared to 78% of employees. Since state pensions alone may not cover all living costs in retirement, having a personal pension plan can help secure your long-term financial stability.

Investing in a pension also comes with attractive tax benefits. As a self-employed individual, you’re entitled to tax relief on contributions, meaning a portion of what you invest is effectively returned to you by the government. For basic-rate taxpayers, this is 20%, while higher-rate taxpayers can claim up to 40% and additional-rate payers, 45%.

Your pension options as a self-employed person

Without a workplace scheme in place, you have several pension options. Let’s break down the most common choices available for self-employed workers.

Personal pensions

A personal pension is a private plan set up by an individual with a pension provider, such as a bank, insurer or investment firm. You decide the contribution level and control how your money is invested. Personal pensions invest your contributions in stocks, bonds or other assets, aiming for long-term growth. You’ll receive tax relief on contributions and any investment growth, which can provide a strong foundation for retirement savings.

Self-invested personal pensions (SIPPs)

A SIPP functions similarly to a personal pension but offers greater investment flexibility. You can invest in various assets, from stocks and shares to commercial property and even specific types of precious metals. SIPPs can be ideal if you have investment experience and want greater control over your portfolio.

The drawback of a SIPP is that it requires more time and knowledge to manage. Fees can also be higher than standard personal pensions, so you’ll need to balance the benefits of control against the costs and complexities involved.

Stakeholder pensions

Stakeholder pensions are designed to be accessible and straightforward. They have low minimum contributions, capped charges and offer the flexibility to stop and start contributions without penalties. They’re generally a good option if you’re looking for a simple, affordable way to save without managing investments actively. However, the range of investments may be more limited than in a SIPP or personal pension.

How much should you contribute?

When it comes to pension contributions, there’s no one-size-fits-all answer. Financial planners typically recommend saving at least 12-15% of your annual income for retirement. This may sound high, but remember that every little bit helps. Even small, regular contributions can grow significantly over time due to compounding.

For instance, according to Aviva’s Pension Calculator, a 30-year-old self-employed individual who contributes £200 per month could have a pension pot of approximately £130,000 by age 68, assuming moderate investment growth. Increase that to £300 a month and the pot could rise to around £195,000. These figures underline the importance of starting early, even if your contributions are modest.

Benefits of starting a pension early

The earlier you start contributing to a pension, the more you stand to benefit from compound interest. When your investments generate returns, those returns are reinvested, creating an exponential growth effect over time. Small contributions in your 20s and 30s can add to a sizeable pension pot by retirement.

On the other hand, starting later in life doesn’t mean it’s too late; it just requires a more focused approach. You may need to contribute more or choose investments with higher growth potential. However, building a meaningful retirement fund is still possible, and you’ll still receive valuable tax relief on your contributions.

Tax relief: a boost for your savings

Tax relief can significantly enhance the value of your pension contributions. For every £80 you put into your pension, the government adds an extra £20 in basic-rate tax relief. You can claim an additional £20 through your self-assessment tax return if you’re a higher-rate taxpayer and £25 if you’re an additional-rate taxpayer. This means that £100 in your pension pot costs only £60 of your post-tax income if you’re in the 40% tax band.

Tax relief effectively boosts your contributions and accelerates the growth of your pension savings, making it one of the most advantageous features of contributing into a pension scheme. This tax advantage can be a crucial factor in reaching retirement goals for self-employed individuals without the benefit of employer contributions.

Balancing pension contributions with business needs

Balancing long-term pension savings with immediate business expenses can be challenging when you’re self-employed. It may be tempting to pause or reduce contributions during lean periods, especially if cashflow is tight. However, it’s often better to keep contributing a smaller amount than to stop altogether.

z Remember that any modest contribution keeps your pension pot growing and ensures you’re still benefiting from tax relief.

Maximising pension growth through investments

While your contributions are the foundation of your pension, investment performance plays a major role in determining your final retirement pot. With self-employed pensions, you are typically free to choose your investment approach, ranging from cautious to adventurous.

For example:

• conservative investors might prefer a portfolio with a higher proportion of bonds offering stable returns but limited growth potential
• balanced investors might allocate equally between stocks and bonds, offering moderate growth with reduced risk
• growth-orientated investors may invest mainly in equities, which have the potential for higher returns but come with increased risk.

Most pension providers offer pre-built investment portfolios tailored to different risk profiles, which can help simplify the investment decision process. Remember, your risk tolerance may evolve over time, and adjusting your investments to match your age and retirement goals is a sensible approach.

A common strategy is to invest in riskier assets, such as equities, earlier in your career to maximise growth potential, then gradually shift towards safer investments, like bonds, as you approach retirement to protect the value of your pension pot.

Planning for retirement withdrawals

When you reach 55, you can access your pension savings, with up to 25% available tax free. You can take this as a lump sum, stagger it through drawdowns or leave your money invested for further growth. It’s worth thinking carefully about how you’ll structure your withdrawals to ensure your savings last throughout retirement.

With life expectancy rising, retirement can now stretch 20 years or more. Many self-employed retirees opt for a phased approach, gradually withdrawing funds to supplement their income while keeping some investments in place. Planning your withdrawals thoughtfully can provide financial security without depleting your pension pot too quickly.

Taking advantage of new pension rules and allowances

Pension rules and tax allowances can change, and it’s important to stay informed so you’re making the most of available opportunities. The annual allowance for pension contributions is currently set at £60,000, but any unused allowance from the previous three years can be carried forward. This “carry forward” rule can be especially helpful for self-employed individuals with variable incomes.

In addition, the lifetime allowance, which previously limited the amount you could save tax free, was abolished as of 6 April 2024. This change allows more flexibility to build your pension pot without concerns about tax penalties.

Is a pension right for everyone?

While pensions are highly beneficial for many, they may not be the only option. Some self-employed people prefer to invest in property, ISAs or their businesses as part of their retirement strategy. Each option has pros and cons, and it’s wise to consider all avenues when planning your retirement.

It’s worth seeking professional advice to ensure you make the best choice for your circumstances. With tax advantages, flexible contribution options and various investment choices, pensions remain among the most effective ways to secure your financial future. They offer reliable long-term growth and can complement other retirement savings efforts.

Ready to take the next step?

Taking control of your retirement planning is empowering, and a pension offers a structured way to build a secure future. Start by researching different pension providers, comparing fees and assessing investment options that align with your risk tolerance and goals.

If you’d like more personalised advice, we’re here to help. We specialise in guiding self-employed professionals through retirement planning, from selecting the right pension type to managing contributions and maximising tax relief.

Reach out to us for a consultation to discuss how we can support your journey towards financial independence in retirement.

HMRC has confirmed that double-cab pickups will be taxed as cars from April 2025, following the latest Budget announcement.

This change, outlined in the Budget Red Book, reverses earlier decisions that caused uncertainty over the taxation of these vehicles.

Previously, HMRC had briefly classified double-cab pickups as cars in early 2024, only to revert to van status a week later. The reclassification now stems from the 2020 Court of Appeal case, Payne & Ors (Coca-Cola) vs R & C Commrs, which questioned the tax treatment of vehicles with a payload of one tonne or more.

Under the new rules, double-cab pickups will be treated as cars for corporation tax from 1 April 2025 and for income tax from 6 April 2025. The change will affect capital allowances, benefits in kind and certain business deductions. However, transitional arrangements will allow employers who purchase, lease or order these vehicles before the cut-off date to continue benefiting from the previous tax treatment until 2029.

HMRC has indicated that this ruling is aimed at ensuring consistency in tax treatment across similar vehicles.

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Monetary Policy Committee (MPC) reduces rates amid signs of easing inflation. This cut follows a previous hold, with theMPC voting to decrease rates from 5% to 4.75%.

The Bank of England (BoE) has reduced interest rates to 4.75%, marking the lowest level since June 2023. One MPC member preferred to maintain the rate at 5%.

The decision comes as inflation fell to 1.7% in September, slipping below the BoE’s target of 2% for the first time in over three years. However, inflation is forecast to increase to approximately 2.5% by the year’s end, with expected changes in energy prices impacting annual figures.

The MPC’s decision reflects a continued decline in inflationary pressures, particularly as global shocks have subsided, though domestic pressures remain. According to the committee, the reduction aligns with the need to balance these risks while supporting economic resilience.

The BoE said: “The best contribution the bank can make to support economic growth and people’s prosperity is to make sure we have low and stable inflation.

If inflation remains close to the target, we expect to reduce interest rates further. But there is a risk that inflation could be higher than expected. Despite overall inflation being at target, prices of some services are still rising too quickly. We need to be careful not to cut rates too much or too quickly, so that inflation remains low and stable for years to come.”

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Smart budgeting strategies for lasting success.

Budgeting is the backbone of any business, large or small, providing a roadmap for managing resources, anticipating challenges and setting realistic goals. For small and medium-sized enterprises (SMEs) especially, a robust budget can mean the difference between thriving and simply getting by. In a tough economic climate, effective budgeting has never been more essential for keeping operations smooth and achieving growth.

Let’s look at how to build a business budget that supports your financial health, plans for contingencies and prepares you for the future.

1. Start with clear financial goals

Establishing clear financial goals is fundamental to creating a business budget. Without them, it’s challenging to measure success or make informed decisions. For many businesses, goals include maintaining profitability, managing cashflow and planning for expansion. When setting goals, keep them specific, measurable and relevant to your business needs. For example, a goal might be to increase revenue by 15% over the next 12 months or to reduce overhead costs by 10% without impacting quality.

Make a note of any upcoming changes you expect, such as hiring, new equipment purchases or entering new markets. These milestones should be accounted for in your budget to avoid unforeseen financial strain.

2. Understand your fixed and variable costs

A solid budget begins with a breakdown of your costs, which fall into two main categories: fixed and variable. Fixed costs, such as rent, salaries and insurance, remain constant each month, while variable costs, like raw materials or utilities, can fluctuate.

Assessing your fixed costs is typically straightforward, as these expenses are often well documented. However, variable costs require closer attention, especially in industries with seasonal changes or reliance on fluctuating materials.

A retail business, for example, may experience higher inventory costs ahead of the Christmas season, while a hospitality business may have higher costs in the summer. Planning for these variations helps prevent cashflow issues and ensures you can cover expenses during high-demand periods.

3. Build a cashflow forecast

Cashflow forecasts are essential for tracking your incoming and outgoing cash to ensure you always have funds available to meet your obligations. It’s worth noting that poor cashflow management is one of the primary reasons UK SMEs struggle financially. According to the Federation of Small Businesses (FSB), over 60% of UK SMEs experience cashflow issues at some point, often due to late payments or unexpected expenses.

To create an effective cashflow forecast:

1. estimate your expected cash inflows, such as sales revenue, for each month
2. project your cash outflows, including costs like salaries, rent, utilities and debt payments
3. deduct outflows from inflows to determine your monthly cash position.

This forecast can also highlight potential shortfalls, allowing you to plan for financing if needed or find ways to increase cash inflows.

4. Use budgeting tools and software

Manual budgeting is time-consuming and prone to errors. Thankfully, there are numerous accounting software options available that automate budgeting, track expenses and generate reports to give you real-time insight into your financial position.

Popular choices include Xero, QuickBooks and Sage, each offering different levels of complexity and integration with other business tools. Many of these tools provide dashboard views of financial data, helping you monitor key metrics like cashflow and profitability at a glance. It’s worth taking advantage of free trials to find the best fit for your business.

For more advanced budgeting needs, there are specialised applications like Syft, Fathom, and Futrli that integrate seamlessly with the above tools, offering deeper insights and more sophisticated financial planning capabilities.

5. Set up an emergency fund

Even the best-laid plans can go awry. Unexpected expenses, such as equipment breakdowns, delayed payments from clients or sudden shifts in the market, can quickly strain your cash reserves. Having an emergency fund as part of your budget can mitigate these risks. Aim to set aside three to six months’ worth of essential expenses in a separate account that’s accessible but not easily withdrawn. This cushion provides peace of mind and can prevent the need for costly short-term financing options.

According to a report by Aldermore Bank, UK SMEs that had an emergency fund in 2023 were able to continue operations smoothly despite unexpected expenses, showing just how vital these funds can be.

6. Regularly review and adjust your budget

A budget is a dynamic tool that should evolve with your business. Set a regular schedule — whether monthly or quarterly — to review your budget against actual figures. Compare your projected revenue and expenses with the actuals to identify any discrepancies.

This process allows you to spot trends, such as consistently high operational costs, and make adjustments as needed. If your revenue falls short of expectations, consider how to boost sales or trim costs. Conversely, if you’re consistently under budget, this may signal a chance to invest in growth areas or build your reserves further.

7. Don’t overlook taxes and regulatory changes

Over the last few years, several adjustments in allowances and reliefs may impact your business, so make sure your budget reflects these updates. In particular, the increase in corporation tax from 19% to a variable rate of up to 25% for profits over £250,000 could affect businesses with higher profits. For smaller businesses, the annual investment allowance of £1m allows you to offset investments in equipment and infrastructure against taxable profits, making it a valuable tool for budgeting.

Additionally, remember to account for PAYE, national insurance contributions (NICs), VAT and other business taxes that can impact your monthly cashflow. Speaking with an accountant or tax adviser is often worthwhile to ensure you’re making the most of available allowances and reliefs.

8. Prioritise profitability over growth

While growth is often a top priority, sustainable profitability is more important for long-term stability. Many businesses, particularly in the early stages, focus on rapid expansion, which can strain resources and lead to overspending. A balanced budget that emphasises profitability helps ensure your business remains financially stable while setting the foundation for future growth.

To prioritise profitability, focus on optimising your pricing strategy, managing operational efficiencies and reducing waste. Regularly review your profit margins, as even small improvements can have a significant impact on your overall financial health.

9. Prepare for seasonality and market fluctuations

In industries where demand is seasonal, building a budget that accounts for these fluctuations is essential. For example, a retailer may experience higher sales during the holiday season but a decline in January and February. Planning for these cycles helps ensure you have enough cash on hand during slower periods.

Consider building a separate budget line for each season or planning period, factoring in both expected revenue and costs. This allows you to adjust your spending based on actual performance rather than expecting the same revenue and costs each month. For businesses in volatile markets, conservative budgeting and building flexibility into spending plans can provide a buffer against sudden changes.

10. Use key performance indicators (KPIs) to measure success

Setting up KPIs for your budget can provide valuable insights into how well your financial plan supports business objectives. Typical KPIs might include gross profit margin, net profit margin and operating expenses as a percentage of revenue. Other useful metrics include debt-to-equity ratio, which measures financial leverage, and days sales outstanding (DSO), which shows how quickly you’re collecting payments.

Tracking KPIs over time helps identify trends and potential issues, allowing you to make proactive adjustments to your budget and operations. Tools integrated with your accounting software can help track these metrics in real time, ensuring you have up-to-date data to make informed decisions.

11. Seek professional advice

Lastly, budgeting can be complex, and it’s easy to overlook important details, especially with regulatory changes. Seeking advice from an accountant or financial adviser can ensure your budget is accurate, compliant and aligned with your goals. An adviser can also help you interpret financial data and recommend strategies for maximising profitability.

Many UK accounting firms offer tailored services for SMEs, so if you’re unsure where to start, finding an adviser who understands your industry can be a great step. This can free up your time to focus on your business while ensuring your finances are on solid ground.

The power of a well-planned budget

Creating an effective budget isn’t a one-off task; it’s a continuous process that requires planning, tracking and adjusting as your business grows. By setting clear goals, managing cashflow and using budgeting tools, you can create a budget that supports your business’s financial health and growth. Budgeting can also help you stay agile in the face of changes and market fluctuations.

In the end, a well-thought-out budget helps ensure your resources are used effectively, providing a solid foundation for stability and growth. With the right approach and regular attention, budgeting can transform from a task into a strategic tool that supports every aspect of your business.

Take control of your business finances with smart budgeting strategies that ensure stability and growth. Contact us to start planning for success today.

The Education Secretary, Bridget Phillipson, has announced an increase in tuition fees from £9,250 to £9,535 per year starting in September 2025.

This is the first fee increase in eight years, with further plans aiming to exceed £10,000 by the 2029/30 academic year. Phillipson outlined the rise as part of a strategy to support universities’ financial stability and deliver “better value for money” for students and taxpayers.

The announcement was controversial, as details were leaked before being presented to Parliament, prompting Speaker Lindsay Hoyle to demand an inquiry into the source of the leak. Hoyle criticised the leak, calling for transparency and urging Phillipson to update the House on the investigation.

Phillipson expressed “deep regret” over the leak, adding that the decision reflects Labour’s commitment to “breaking down barriers to opportunity” through a sustainable higher-education system.

Keir Starmer had promised to abolish tuition fees in 2020 when running for leader of the Labour Party — a pledge later abandoned, leaving many students feeling disillusioned.

Maintenance loans will also rise by 3.1%, increasing support for lower-income students. Additionally, fees for classroom-based access courses will be reduced to £5,760, supporting alternative pathways to higher education.

The increase, while controversial, means tuition fees remain lower in real terms than they were eight years ago, especially given rising inflation and the growing costs of delivering higher education.

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The WorkWell programme aims to support health through work.

On 6 November 2024, the Secretaries of Work and Pensions, Liz Kendall, and Health, Wes Streeting, visited North Central London’s WorkWell programme. They highlighted the importance of good health in fostering a productive workforce.

The WorkWell initiative, part of the government’s broader “Get Britain Working” strategy, seeks to reduce long-term sickness absences by providing targeted support, such as physiotherapy and counselling, to keep people in work.

The WorkWell programme, launched with £64m of funding, is projected to assist 56,000 people across 15 pilot sites by 2026. In North Central London, the service has received 60 referrals. It offers assistance for workplace health challenges and helps unemployed individuals with CV and interview advice. It aims to support 3,000 participants locally over the next 18 months.

With nearly 2.8 million people unable to work due to long-term health issues, Kendall stated: “Good work is good for health and good for our economy too. Our WorkWell programme provides practical help and support to employers and employees, because we know a healthy nation and a healthy economy are two sides of the same coin.”

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