If you are buying a property that needs work, HMRC has just issued a major heads up, following a recent Court of Appeal ruling in the Mudan & Anor case against HMRC. Basically, even if a home is in bits, as long as it is still fundamentally a dwelling, maybe it needs a new boiler, rewiring or damp proofing, it still attracts the standard residential Stamp Duty Land Tax (SDLT).

Here is where it gets tricky, and unfortunately, risky for buyers.

Some unregulated tax agents are approaching homebuyers, promising SDLT refunds by claiming the property is non-residential because it is uninhabitable, often on a no win, no fee basis. But if HMRC later decides the claim is bogus, you are the one left footing the bill for the full SDLT, plus penalties and interest.

HMRC is taking these claims seriously and is using both civil and criminal powers to crack down on those trying to game the system. Anthony Burke, HMRC’s Deputy Director of Compliance Assets, has been clear, if someone else files a dodgy claim on your behalf, you could end up owing more than you initially paid.

Let us break it down with a sample scenario.

Imagine you buy a property for £1.1 million, and your solicitor submits the SDLT return on the correct residential basis, meaning you pay £53,750. The property needs serious work, but it is still a home. An agent offers to get you a refund by claiming it is non-residential. They manage to secure £9,250, but after their 30 per cent fee, you only receive £6,475. HMRC investigates and rejects the claim, leaving you responsible for repaying the £9,250, plus penalties and interest, while the agent has already taken their cut and disappeared.

What can you do instead?

• Be cautious of refund offers that seem too good to be true.
• If in doubt, check official SDLT guidance or speak to a qualified, regulated adviser, because if the claim is made in your name, the responsibility is yours too.
• And if you genuinely are due a refund for a valid reason, you can claim it yourself without paying anyone a fee.

The message is simple, do not be lured into bogus refund schemes. Play it safe and stick to trusted advice when it comes to Stamp Duty.

The UK government has just announced a pragmatic pause on its planned extra border checks for live animal imports from the EU, as well as certain animal and plant goods arriving from Ireland, while negotiations continue on a full Sanitary and Phytosanitary (SPS) agreement with the EU.

This move is all about easing trade friction. Once the SPS deal is in place, routine border checks on animal and plant products between the UK and EU are set to vanish, making supply chains more streamlined and far less paperwork heavy, all while keeping biosecurity front and centre.

So, here’s what is happening right now:

• No new checks, for now. The UK has suspended plans to roll out extra checks, for live animals from the EU and certain goods from Ireland, pending finalisation of the SPS agreement.
• Existing controls still apply. Traders must still follow the current Border Target Operating Model (BTOM), which includes documentary and risk-based checks. No blanket physical checks yet, but rules remain in force.
• Rolling review. Defra is keeping the suspension under regular review, working with the Animal and Plant Health Agency, Border Control Post operators and Port Health Authorities to ensure biosecurity is not compromised while trade fluidity improves.
• It is part of a bigger reset. Earlier in June, checks on medium-risk EU fruit and vegetables were shelved too, another sign the UK is gradually dialling down post-Brexit red tape.

Why this matters

If you are in the realms of farming or food trade, this is welcome relief. Live animals and perishable goods are expensive to move, and delays can quickly erode margins or spoil produce. Making the process easier, without sacrificing safety, is a win for businesses and shoppers alike.

Biosecurity is not being thrown out with bureaucracy either. The government emphasises that they are maintaining security through targeted inspections rather than universal checks, which can be more efficient and less disruptive.

What’s next?

Negotiations for the full SPS agreement are ongoing, but as of now, there is no implementation timeline. Meanwhile, ports and operators built infrastructure in expectation, some of which might not be used if fewer checks are needed. That is sparking conversations about what happens to costly, now idle facilities.

There you have it, red tape easing, trade relief starting, biosecurity still in focus. All eyes are on when the final SPS deal lands, and what that will mean in practice.

Many business owners keep problems to themselves. You may not want to cause concern, appear as if you have lost control, or damage confidence. Yet, the longer an issue remains unspoken, the more likely it is to grow into something more difficult and costly to resolve.

When owners share challenges early, the speed and quality of the solution improves. This is not about talking for the sake of it, but about giving your advisers the information they need to act before the problem escalates.

Problems rarely fix themselves

In business, most problems grow if left unchecked. A late-paying customer can turn into a major bad debt, or a dip in sales can lead to cash flow shortages. By the time the issue becomes urgent, options may be limited and expensive. Sharing the situation early allows for a proactive rather than reactive response.

Your accountant can only help with what they know

Accountants do more than prepare accounts and file tax returns. We can analyse your figures, benchmark performance, and tap into networks that may provide solutions you have not considered. If we are unaware of the problem, we may continue to advise based on incomplete information, which risks missed opportunities.

Confidentiality and trust

Admitting a problem will not make you look weak. Accountants work under strict professional standards, and everything you share is confidential. What may seem overwhelming to you might be a familiar situation to us, with clear solutions available.

Early conversations mean better choices

Telling your accountant about a slipping profit margin today means you can work together to address it quickly. Waiting until year-end could mean the bank is worried and urgent borrowing is the only option. Early sharing opens the door to more, and better, choices.

A fresh perspective

You will always see your business from the inside. Your accountant can offer an external, financially informed viewpoint. A cash flow gap, for example, may be solved by negotiating supplier terms or restructuring debt, rather than simply cutting costs.

Common issues worth sharing early

• Cash flow pressures – avoid missed payments and penalties.
• Falling sales or profits – identify causes quickly to prevent decline.
• Tax payment worries – arrange time-to-pay plans before penalties escalate.
• Staffing concerns – assess costs and obligations before decisions are made.
• Growth plans – review funding and risk before committing resources.

Make sharing part of the routine

You do not need a perfect report before raising an issue. Start with what you know and let your accountant fill in the details. Regular check-in meetings make sharing problems a normal part of business life, not a stressful exception.

Turning challenges into opportunities

Some problems trigger positive changes – a sales drop might lead to a better product mix, or cash flow issues might result in improved credit control. The earlier you speak up, the more likely a problem becomes an opportunity.

Final thought

The fastest route to solving a problem is to share it with someone who can help. If you have a business issue that is keeping you awake at night, call now. The sooner we know, the sooner we can work together to fix it.

Late payments are one of the most persistent problems facing small businesses in the UK. They damage cash flow, disrupt planning, and in some cases, force otherwise viable companies to close their doors. The government has now announced what it describes as the toughest crackdown on late payments in a generation, with new rules and enforcement powers designed to protect small firms and give them the confidence to grow.

Why late payments matter

According to government figures, poor payment practices cost the UK economy around £11 billion each year. For many small businesses, waiting weeks or even months to be paid by larger customers can create a serious cash flow crisis. On average, 38 UK businesses are forced to close every day because they cannot manage the impact of late or slow payments.

Key changes in the new plan

The new measures aim to ensure that businesses get paid promptly and fairly. They include:

• Stronger enforcement powers for the Small Business Commissioner, including the ability to issue fines.
• Mandatory maximum payment terms initially set at 60 days, reducing to 45 days over time.
• Invoice verification periods limited to a maximum of 30 days, stopping companies from dragging out the approval process.
• Audit committee oversight of payment practices at board level for larger companies, increasing accountability.
• A £4 billion finance boost for small businesses, including 69,000 Start-Up Loans to support growth and stability.

What this means for small businesses

These reforms are designed to tackle the culture of late payments head-on, giving small businesses more certainty over when they will be paid and improving their ability to plan ahead. Having predictable cash flow makes it easier to invest in staff, stock, and equipment without the constant fear of payment delays undermining operations.

Stronger enforcement also means that larger businesses will have to take payment obligations seriously, or risk reputational and financial consequences. The introduction of maximum payment terms and stricter invoice verification timelines should help ensure that suppliers are not kept waiting unnecessarily.

Taking action now

While these changes will offer significant protection, small business owners can still take steps to improve their own credit control and invoicing processes. Clear payment terms, prompt invoicing, and proactive follow-up can all help reduce payment delays.

With the government’s plan aiming to shift payment culture across the UK, small businesses should see a real difference in the months ahead. If you have concerns about how late payments are affecting your business, now is the time to review your credit control processes and take advantage of any new protections available.

Companies House has confirmed a major change that affects every UK company director and person with significant control (PSC). From 18 November 2025, it will be a legal requirement to verify your identity before you can file your company’s confirmation statement.

This is part of wider reforms under the Economic Crime and Corporate Transparency Act 2023, aimed at reducing fraud and misuse of the UK company register. While the new rules will apply to directors and PSCs from November, identity verification for limited partnerships, corporate directors, and officers of corporate PSCs will follow at a later date.

What directors need to do

If you are a company director, you will need to verify your identity before your next confirmation statement is due. You must provide your personal code and a verification statement with that filing. This process needs to be completed for each company you are a director of, although your personal code remains the same.

Failure to comply means your company will not be able to submit its confirmation statement, potentially leading to compliance issues.

What PSCs need to do

People with significant control (PSCs) must also verify their identity and provide their personal code. If you have already verified your identity as a director, you do not need to do it again. However, you still need to link your verified identity to each company role you hold.

Each PSC will have a 14-day window to complete the verification, with timing depending on when you were registered and whether you are also a director.

How to verify

There are two main ways to verify your identity:

1. Use GOV.UK One Login, which guides you through the process online
2. Ask an authorised corporate service provider, such as your accountant or solicitor, to verify on your behalf

Verification is a two-step process: first, you prove your identity and receive a personal code; second, from 18 November onwards, you link that code to your company roles.

Do not delay

Companies House recommends starting the process early, especially if you are based overseas or act for more than one company. If your company cannot file its confirmation statement due to missing identity verification, it risks falling out of good standing.

You can check your confirmation statement due date and start the verification process via the Companies House website.

A new analysis from the National Institute of Economic and Social Research (NIESR) has put fresh pressure on Chancellor Rachel Reeves ahead of the upcoming autumn Budget. NIESR is one of the UK’s oldest and most respected independent economic think tanks, established in 1938. Known for its impartial and evidence-based work, it frequently advises government departments, central banks, and businesses on fiscal and economic matters.

In its latest findings, NIESR warns that Reeves is facing a £41.2 billion shortfall in day-to-day government finances, with an additional £9.9 billion required to restore fiscal buffers. That puts the total gap at over £51 billion-a serious fiscal challenge with no easy solution.

Economists at the institute describe this as an “impossible trilemma”. Reeves must either raise taxes, cut public spending, or relax the strict fiscal rules Labour has pledged to uphold. Each path carries significant political and economic risks.

What NIESR Recommends

NIESR is calling for moderate but sustained tax rises to avoid fiscal instability. A suggested 5p increase in income tax across all bands could plug a large part of the gap, but the think tank notes this would be politically difficult. Other options might include freezing thresholds, adjusting VAT or National Insurance, or introducing new levies.

The key warning from NIESR is to avoid piecemeal tax changes, which create uncertainty without solving the underlying problem. Instead, they advocate for coherent, long-term tax planning to rebuild fiscal resilience and public confidence.

Criticisms and Political Fallout

Retailers, represented by the British Retail Consortium, have voiced concern that further tax rises would push up prices, worsening inflation. With food inflation predicted to reach 6%, businesses argue that higher taxes would squeeze consumers and threaten jobs.

Inside the Labour Party, debate continues. Some want Reeves to consider wealth taxes-on luxury assets, pensions, or investment income-but she has publicly ruled these out. Her preference is to rely on previously announced measures, including the abolition of non-dom status and an increase in capital gains tax.

Even so, speculation persists that smaller, carefully worded changes-such as freezing thresholds or introducing specific levies-might be used to raise revenue while keeping to the letter of Labour’s manifesto pledges.

What Lies Ahead in the Autumn Budget

As the Budget draws near, Reeves must decide how to address the gap. NIESR’s position is clear: credible, proactive measures are needed. Relying on optimistic economic growth projections alone is unlikely to satisfy markets or voters.

Caught between fiscal credibility, political commitments, and economic pressures, Reeves faces a tough test of leadership. Whether through tax, spending cuts, or rethinking her fiscal rules, the decisions made this autumn will shape the government’s reputation for years to come.

If your Self-Assessment required payments on account, the second instalment fell due on 31 July 2025. If it was not paid, HMRC charges late payment interest from 1 August until the amount is cleared. A late payment penalty can also arise if the tax remains unpaid 30 days after the deadline, with further penalties at six and twelve months. Interest runs daily, so every part payment helps to reduce the running cost.

Pay now, or as much as you can

The simplest way to limit charges is to pay the outstanding amount as soon as possible. Bank transfer and debit card are quickest. If you cannot clear the full balance, making a part payment will reduce the daily interest. Keep a record of payment references and screenshots in case you need to evidence the date funds left your account.

Reduce the payment on account if your income fell

If your profits or untaxed income for 2024-25 will be lower than the previous year, you can ask HMRC to reduce your payments on account. This is normally done through your online account or by filing form SA303. Be realistic with your estimate. If you reduce too far, HMRC will charge interest on the shortfall from the original due date and may consider penalties if the claim was not made on a reasonable basis.

Set up Time to Pay if cash is tight

Where affordability is the issue, contact HMRC to arrange a Time to Pay plan. Agreeing terms upfront usually stops late payment penalties from escalating, although interest will continue to accrue until the balance is cleared. Propose a sensible monthly figure, be ready with basic financial information, and keep to the plan once agreed. If circumstances change, speak to HMRC before you miss an instalment.

File the return early to remove uncertainty

Submitting your 2024-25 return early will confirm the actual liability. That may lead to a refund if payments on account were too high, or it will crystallise the balancing payment due by 31 January 2026 so you can plan. Early filing also allows you to set accurate payments on account for 2025-26.

Key actions

• Log in to your HMRC online account to confirm what is outstanding.
  • Pay the amount due immediately or pay what you can to cut daily interest.
  • If your income is genuinely lower, submit a claim to reduce the payment on account.
  • If you cannot pay in full, agree a Time to Pay arrangement with HMRC.
  • File your 2024 to 2025 return as soon as practical to fix the final numbers and avoid surprises.
  • Set up a Budget Payment Plan for the year ahead to smooth cash flow.

It was confirmed with the publication of the draft Finance Bill 2025-26 that measures first announced in the Autumn Budget 2024 to bring most unused pension funds and death benefits into the scope of Inheritance Tax (IHT) will start from 6 April 2027. This will significantly extend the IHT net, capturing pensions that were previously excluded. Individuals with sizeable pensions will need to consider these changes with some care, and review their estate planning accordingly.

This measure will affect individuals inheriting estates within the scope of IHT, including beneficiaries of any unused pension funds or death benefits included in those estates. Personal representatives will be liable for reporting and paying any IHT due on unused pension funds and death benefits.

Death-in-service benefits payable from a registered pension scheme and dependants’ scheme pensions from a defined benefit arrangement, or from a collective money purchase arrangement are excluded from these changes and will not be within the scope of IHT.

There were some changes to the original proposals following a technical consultation that closed in January 2025. As a result, personal representatives, rather than pension scheme administrators, will now be primarily liable for reporting and paying IHT on any unused pension funds and death benefits.

This means that pension scheme administrators and personal representatives will need to work together in administering IHT on pensions. There are concerns that this process could lead to multiple issues, including payment delays, greater complexity and GDPR privacy matters.

Despite intense lobbying by the farming community, the proposed reduction in IHT Business and Agricultural Property reliefs are included in the draft Finance Bill 2025-26.

On 21 July 2025, the government published draft legislation for Finance Bill 2025-26. The consultation period for the draft legislation is open until 15 September 2025. This comes at a time when the government has seen borrowing in June surge to the second highest level on record and placing further pressure on public finances and increasing the urgency for tax reforms.

The legislation includes confirmation of a significant overhaul of Inheritance Tax (IHT) reliefs that were first announced in the Autumn Budget 2024. These measures faced criticism over their potential impact on small farms and rural communities. However, with the publication of the Finance Bill, these measures now look set to come into effect from 6 April 2026.

The changes will see the introduction of a new £1 million allowance that will apply to the combined value of property in an estate qualifying for 100% business property relief or 100% agricultural property relief. This means that the existing 100% rate of IHT relief will only apply to the combined value of property in an estate qualifying for 100% business property relief or 100% agricultural property relief. The rate of IHT relief will be reduced to 50% for the value of any qualifying assets over £1 million. This means that any assets receiving 50% relief will be effectively taxed at 20% IHT (the full rate being 40%).

This change applies per individual, meaning married couples could potentially pass on up to £3 million tax-free between them (when combined with nil-rate bands).

The government has also confirmed they will reduce the rate of business property relief available from 100% to 50% in all circumstances for shares designated as “not listed” on the markets of recognised stock exchanges, such as AIM. The existing rate of relief will continue at 50% where it is currently this rate and will also not be affected by the new allowance.

It was also announced that the option to pay IHT by equal annual instalments over 10 years interest-free will be extended to all qualifying property which is eligible for agricultural property relief or business property relief.

Making Tax Digital for Income Tax will become mandatory in phases from April 2026. If you are self-employed or a landlord earning over £50,000 you need to start preparing to submit quarterly updates, keeping digital records and a new penalty system will apply.

Initially, MTD for IT will apply to businesses, self-employed individuals, and landlords with an annual income exceeding £50,000. From 6 April 2027, the rules will extend to those with an income between £30,000 and £50,000. A new system of penalties for late filing and late payment of tax will also be introduced.

From April 2028, sole traders and landlords with income over £20,000 will need to follow MTD rules. The government is also exploring ways to bring those earning under £20,000 within the MTD framework at a future date.

To help ensure taxpayers pay on time, HMRC increased the late payment penalties with effect from 1 April 2025. This applies to VAT-registered businesses as well as early adopters of Making Tax Digital for Income Tax.

The updated penalty rates are as follows:

• 15 days late: increased from 2% to 3%
• 30 days late: increased from 2% to 3%
• From day 31 onwards: a 10% annual penalty now applies, up from 4%, with daily interest added from this point

Taxpayers that remain with self-assessment face a separate set of penalty rules.