Author: financial

The government has announced a package of measures intended to protect motorists and businesses from the recent rise in fuel costs, following growing concern over the impact higher oil prices may have on inflation, household finances and business operating costs.

The measures include an extension of the existing 5 pence per litre fuel duty reduction, which had previously been due to end later this year. The government has also confirmed additional support aimed at the transport and logistics sector, including temporary vehicle tax relief for some haulage businesses.

Fuel costs remain one of the most significant operating expenses for many businesses, particularly those involved in transport, delivery services, construction, engineering, agriculture and mobile service industries. Even relatively small increases in fuel prices can quickly affect profitability, especially where businesses operate vehicle fleets or rely heavily on road transport.

Recent geopolitical tensions and higher global oil prices have added further uncertainty to business planning during 2026. In response, the government has stated that it wants to reduce the immediate financial pressure on both consumers and businesses while helping to limit wider inflationary effects across the economy.

While the extension of the fuel duty reduction may provide some short term relief, many businesses may still need to review their wider cost structures and cash flow arrangements carefully over the coming months.

Businesses affected by rising transport and fuel costs may wish to consider:

• Reviewing pricing structures and margins
• Monitoring vehicle and fuel efficiency
• Reviewing business mileage and logistics arrangements
• Improving cash flow forecasting
• Assessing the tax efficiency of company vehicle arrangements
• Reviewing the potential use of electric or hybrid vehicles

For some businesses, fuel costs can gradually erode profitability if not monitored carefully. Regular management information and forward planning may help identify issues earlier and support better decision making.

If rising operating costs are affecting your business, please contact us to discuss how we may be able to help you review profitability, improve cash flow planning and assess tax efficient options for your business operations.

Many taxpayers continue to leave their Self-Assessment tax return until the final weeks before the 31 January filing deadline. Unfortunately, delaying preparation often increases stress levels, creates unnecessary pressure and reduces the opportunity to plan effectively.

Preparing your tax return earlier in the tax year can provide a number of practical and financial advantages.

Know your tax position sooner

One of the main benefits of preparing your Self-Assessment tax return early is that you gain a clearer understanding of your tax position well in advance of the payment deadline.

This allows more time to budget for any tax liabilities and helps avoid the shock of discovering a large balancing payment shortly before 31 January. Early preparation can be particularly valuable for self-employed individuals, landlords, company directors and taxpayers with multiple income sources.

Knowing your tax liability earlier may also help with wider financial planning decisions, including pension contributions, capital expenditure, savings arrangements or future tax planning opportunities.

Reduce the risk of missing information

Leaving tax returns until the final weeks often increases the risk of overlooking important information or struggling to locate documents at short notice.

Preparing returns earlier gives taxpayers more time to identify missing records, obtain replacement statements and resolve queries before the filing deadline approaches.

This may be especially important where income has been received from investments, property, overseas sources or digital platforms.

Avoid the January rush

January is traditionally the busiest period of the year for accountants and tax advisers. By providing information earlier, clients can often benefit from a more measured review process and greater opportunity to discuss tax planning points or areas of concern.

Early preparation may also reduce the risk of filing delays caused by unexpected technical issues, missing records or HMRC processing problems.

Identify planning opportunities earlier

Preparing your return well before the deadline may help identify opportunities to improve tax efficiency for the current or future tax years.

In some cases, early discussions may highlight opportunities relating to pension planning, capital allowances, profit extraction, loss relief claims or business structure reviews.

Please send your information early

We would encourage all clients to begin gathering their tax return information as soon as possible and to forward records to us sooner rather than later.

Early submission helps us prepare returns in a more efficient and timely manner and gives you more opportunity to understand your tax position and plan ahead with confidence.

If you would like assistance preparing your Self-Assessment tax return, please contact us and send your records to us at your earliest convenience.

Cyber-crime is no longer a problem that affects only large corporations or international organisations. Increasingly, smaller businesses are being targeted because criminals often assume that security systems, staff training and internal controls may be weaker.

For many businesses, the financial and operational consequences of a successful cyber-attack can be severe.

A cyber incident can lead to loss of customer data, disruption to operations, theft of funds, reputational damage and significant recovery costs, and in some cases, businesses can be locked out of their own systems for days or weeks while attempting to restore files or recover data.

One of the most common threats remains phishing attacks. These are fraudulent emails or messages designed to trick employees into revealing passwords, making payments or downloading malicious software. AI assisted cyber criminals have become increasingly sophisticated, and many fraudulent emails now closely resemble genuine communications from suppliers, banks or customers.

Ransomware attacks are another growing concern. In these cases, criminals gain access to business systems and encrypt files, demanding payment in return for restoring access. Even where businesses pay the ransom, there is no guarantee that systems or data will be fully recovered.

Smaller businesses are often particularly vulnerable because they may lack dedicated IT support or formal cyber security procedures. However, relatively straightforward measures can significantly reduce risk.

Businesses should consider reviewing:

� password security procedures

� staff awareness training

� data backup arrangements

� anti-virus and firewall protection

� remote working security

� supplier payment verification procedures

� access controls for sensitive information

Regular software updates and multi-factor authentication can also help reduce exposure to attacks.

Importantly, cyber security is no longer simply an IT issue. It has become a broader business risk that can affect cash flow, customer confidence and operational continuity. Businesses that prepare properly are usually far better placed to minimise disruption if an incident occurs.

Directors and business owners may also wish to consider whether appropriate cyber insurance cover is in place and whether existing policies adequately reflect the current level of risk.

As businesses become increasingly dependent on digital systems, taking cyber security seriously is becoming an essential part of protecting long-term business stability.

If you would like assistance reviewing business risks, internal controls or financial resilience planning, please contact us.

For many businesses, trading conditions remain difficult despite signs that inflationary pressures may be easing in some parts of the economy. A growing number of business owners are discovering that although sales may appear stable, cash reserves are steadily coming under pressure as operating costs continue to rise across multiple areas of the business.

This issue is affecting businesses of all sizes, particularly smaller and medium-sized companies that rely heavily on maintaining steady cash flow in order to meet day-to-day commitments.

Higher employment costs remain one of the biggest concerns. Wage increases, pension contributions, National Insurance costs and the ongoing challenge of retaining experienced staff are placing additional pressure on monthly overheads. At the same time, many businesses continue to face increased supplier costs, rising insurance premiums, higher borrowing costs and more cautious customer spending patterns.

Late payment problems have also become more common. Even profitable businesses can encounter serious difficulties if customers delay settlement of invoices, particularly where businesses have limited cash reserves or significant monthly commitments.

In some sectors, businesses are additionally finding that profit margins have narrowed because price increases introduced over the past two years have failed to keep pace with rising costs. As a result, turnover may appear healthy while actual cash generation weakens.

Now may be an appropriate time for business owners to review their overall cash position carefully and consider whether sufficient reserves exist to cope with:

� slower customer payments

� seasonal downturns

� unexpected tax liabilities

� equipment replacement costs

� increased financing costs

� economic uncertainty

Simple steps can often improve cash flow significantly. These may include reviewing pricing structures, tightening credit control procedures, reducing unnecessary expenditure, improving stock management or introducing staged invoicing arrangements for larger projects.

Regular management reporting can also help identify pressure points before they become serious problems. Businesses that monitor cash flow forecasts, profit margins and debtor levels on a regular basis are usually better placed to react quickly when trading conditions change.

Periods of economic uncertainty often reward businesses that remain financially disciplined and proactive and therefore maintaining strong cash reserves can provide flexibility, reduce stress and place businesses in a stronger position to take advantage of opportunities when competitors may be struggling.

If you would like assistance reviewing your business cash flow, profitability or financial resilience, please contact us.

There has been considerable discussion over the past year regarding proposed changes to Companies House filing requirements, in particular the suggestion that small companies would be required to file a profit and loss account on the public record.

Recent updates published on the GOV.UK website have now clarified the position. The proposed requirement has not been introduced and will not take effect in the immediate future. Instead, the government has confirmed that the changes have been postponed and are currently under review.

Background to the proposed changes
The original proposals formed part of wider reforms introduced through the Economic Crime and Corporate Transparency Act 2023. One of the key aims of these reforms is to improve corporate transparency and the quality of information available at Companies House.

As part of this, it had been suggested that small and micro entities would no longer be able to file reduced or filleted accounts. Instead, companies would have been required to submit a full set of accounts, including a profit and loss account, for public inspection.

This raised concerns for many business owners, particularly around the commercial sensitivity of profit figures and the potential for competitors to access this information.

Current position
The latest GOV.UK announcement confirms that these changes will not be implemented as originally planned. The proposed start date has been withdrawn, and the government has indicated that the policy is being reconsidered.

Importantly, it has also been confirmed that companies will be given a minimum notice period before any new requirements are introduced. This means that even if the reforms are brought back in some form, there will be sufficient time to prepare.

For the time being, the existing rules remain unchanged. Small companies can continue to file reduced accounts at Companies House, without including a profit and loss account on the public record.

What this means for your business
In practical terms, there is no immediate action required. Businesses should continue to prepare full accounts for tax and internal purposes, but there is no change to what needs to be filed publicly.

However, it would be unwise to assume that the proposals have been permanently dropped. The direction of travel remains towards greater transparency, and some form of enhanced disclosure requirement is still likely in the future.

Planning ahead
Although the changes have been delayed, it may be sensible to review your accounting systems and processes to ensure that you can produce complete and accurate financial information if required.

It is also worth considering how greater transparency might affect your business, particularly in terms of pricing, margins and competitor awareness.

If you would like to discuss how these potential changes could affect your business or ensure that your systems are ready for future developments, please get in touch.

The ongoing conflict in Iran and the wider Middle East is beginning to have economic consequences that are likely to be felt by UK businesses over the coming months. While the situation remains uncertain, press commentary and early government signals provide a useful indication of how the impact may unfold and how policymakers may respond.

Energy costs are expected to be the most immediate pressure point. Disruption to oil and gas supplies has already led to rising prices, and this feeds directly into business costs, particularly for transport, manufacturing and energy intensive sectors. The government has already taken initial steps to secure fuel supplies, and further measures such as fuel duty freezes or targeted support for certain industries may follow if prices continue to rise.

For households, the knock on effect is likely to be higher living costs. Rising fuel and energy prices typically feed into food and retail prices, increasing inflationary pressure. In response, there is growing expectation that the government may reintroduce targeted cost of living support, particularly for lower income households. While this may help sustain consumer demand to some extent, it is unlikely to fully offset the impact of higher prices.

Businesses themselves may also see more direct support. If cost pressures intensify, there could be measures such as tax deferrals, extended payment arrangements, or targeted grants for the most affected sectors. However, unlike the pandemic period, any support is likely to be more limited and focused, reflecting pressure on public finances.

A key challenge for policymakers is balancing support with fiscal discipline. Rising borrowing costs and slower economic growth mean that there is less room for large scale intervention. As a result, any government response is likely to be selective rather than broad based.

Supply chain disruption is another area to watch. Increased shipping costs and delays may affect the availability and pricing of goods, particularly those sourced from or routed through the region. In response, there is likely to be a greater focus on supply chain resilience, including alternative sourcing and stock management.

From a business perspective, the practical implications are clear. Many businesses are likely to face increased input costs, which may need to be passed on through pricing. Cash flow management will become increasingly important, particularly where costs rise ahead of revenues. At the same time, maintaining flexibility and reviewing supplier arrangements may help to mitigate disruption.

While it is too early to predict the full economic impact, the direction of travel is becoming clearer. Rising costs, tighter margins and ongoing uncertainty are likely to define the near term environment.

If you would like to discuss how these developments may affect your business, or explore practical steps to manage the impact, please get in touch, and if you feel this alert could help a business colleague or family member, please feel free to share it with them.

Pensioners are being urged to stay vigilant for any Winter Fuel Payment scams. HMRC is starting to recover Winter Fuel Payments issued for winter 2025 from those earning over £35,000 a year. While the process will affect nearly two million people, most will see the repayment handled automatically through adjustments to their PAYE tax code from April 2026, meaning there is no need to contact HMRC directly.

However, the scale of the recovery operation has created an opportunity for scammers. Over the past year, HMRC recorded more than 25,000 scam reports linked to Winter Fuel Payments. Officials are warning that fraudsters may now exploit confusion around the repayment process. Fake texts, emails, and phone calls are expected to increase, often impersonating HMRC and individuals may feel pressured to hand over personal or financial details.

For those submitting self-assessment tax returns online, the payment should appear automatically in their 2025-2026 return which is due to be submitted by the 31 January 2027. Taxpayers are also advised to check carefully and add the payment manually if they are liable. Paper filers will need to include it themselves.

HMRC stresses that it will never request repayment or bank details via text or email. As HMRC’s Chief Customer Officer, said: 

‘Criminals are great pretenders and often use fake letters, emails, calls and texts to impersonate HMRC and trick people into giving them money.

I’d encourage anyone who’s unsure to use our online tool at GOV.UK to check whether and how their payment will be recovered – there’s no need to call us.’

The recent announcement from Rachel Reeves highlights a clear shift in the government’s economic approach, placing retail banks at the centre of efforts to stimulate growth and support households and businesses.

In a meeting held on 22 April 2026, senior leaders from major UK banks, including Barclays, Lloyds, Santander, NatWest, Nationwide and HSBC, were brought together to align their activities with the government’s wider economic plan. The message was straightforward. Retail banks are expected to play a more active role in supporting lending, investment and financial resilience across the economy.

The focus of the discussions appears to be twofold. Firstly, ensuring that credit continues to flow to individuals and businesses, particularly in a period where economic uncertainty remains a concern. Secondly, encouraging banks to support long term growth by helping customers invest, whether through savings products, mortgages or business finance. This reflects a broader policy direction that sees private sector investment as a key driver of economic recovery and stability.

From a practical perspective, this development signals that banks may increasingly be encouraged, or expected, to adopt a more proactive stance in their customer relationships. This could include offering more tailored financial products, improving access to borrowing for viable businesses, and supporting households in managing financial pressures such as rising costs or interest rates.

For business owners, this creates both opportunity and responsibility. Greater engagement from banks could improve access to funding for expansion, working capital or investment in productivity. However, it is also likely that lending decisions will remain closely tied to financial performance and risk management. Businesses will still need to present strong financial information, credible forecasts and clear evidence of repayment capacity.

For individual clients, the emphasis on savings and investment may lead to a renewed focus on personal financial planning. Banks may promote savings vehicles or investment options more actively, particularly as part of the government’s wider ambition to increase participation in financial markets and improve long term financial security.

There is also a wider point to consider. The government’s approach underlines the importance of collaboration between the public and private sectors in driving economic outcomes. While policy can set direction, delivery often depends on how effectively financial institutions respond.

In summary, the Chancellor’s engagement with retail banks reflects a coordinated attempt to support economic growth through increased lending, improved financial access and stronger customer engagement. For accountants and their clients, it reinforces the importance of maintaining robust financial foundations and being ready to take advantage of opportunities as they arise.

1 May 2026 – Due date for corporation tax due for the year ended 30 July 2025.

 

19 May 2026 – PAYE and NIC deductions due for month ended 5 May 2026. (If you pay your tax electronically the due date is 22 May 2026).

 

19 May 2026 – Filing deadline for the CIS300 monthly return for the month ended 5 May 2026.

 

19 May 2026 – CIS tax deducted for the month ended 5 May 2026 is payable by today.

 

31 May 2026 – Ensure all employees have been given their P60s for the 2025/26 tax year.

 

1 June 2026 – Due date for corporation tax due for the year ended 31 August 2025.

 

19 June 2026 – PAYE and NIC deductions due for month ended 5 June 2026. (If you pay your tax electronically the due date is 22 June 2026).

 

19 June 2026 – Filing deadline for the CIS300 monthly return for the month ended 5 June 2024.

 

19 June 2026 – CIS tax deducted for the month ended 5 June 2026 is payable by today.

Your Personal Tax Account (PTA) is an easy and secure way to manage your tax online. You can use it to check your tax code, claim a refund and update your details, all in one place, without needing to contact HMRC by phone or post.

Every UK taxpayer has a PTA, but you will need to register through the Government Gateway or GOV.UK One Login to start using it. You may also be asked to confirm your identity during the setup process. This is to keep your details safe and normally involves using photo ID such as a passport or driving licence.

Currently, the following services are accessible through your PTA:

• check your Income Tax estimate and tax code
• fill in, send and view a personal tax return
• claim a tax refund
• check your Child Benefit
• check your income from work in the previous 5 years
• check how much Income Tax you paid in the previous 5 years
• check your State Pension
• check if you will benefit from paying voluntary National Insurance contributions and if you can pay online
• track tax forms that you’ve submitted online
• check or update your Marriage Allowance
• tell HMRC about a change of name or address
• check or update benefits you get from work, for example company car details and medical insurance
• find your National Insurance number
• find your Unique Taxpayer Reference (UTR) number
• check your Simple Assessment tax bill.