Proposed changes to Inheritance Tax (IHT) are causing alarm in the UK farming community. If introduced as expected from April 2026, new rules could see agricultural estates over £1 million subject to 20% IHT, even when the land or business is still being farmed by the next generation.

This potential shift in the tax regime has triggered protests and demonstrations across the UK countryside. Farming families are worried that, without the current reliefs in place, it will become much harder to pass on farms without either selling off land or taking on significant debt.

Under the current rules, Agricultural Property Relief (APR) and Business Property Relief (BPR) can reduce the taxable value of a farming estate by up to 100%. This allows family farms to be passed down with minimal or no IHT liability, provided certain conditions are met.

The proposed changes would likely involve the reduction or removal of these reliefs for some types of land or property, particularly where the farm includes diversified business activity, such as holiday lets or renewable energy generation. There is also speculation that unused land, or land leased out under long-term arrangements, may no longer qualify.

For farmers and rural business owners, the implications are significant:

• Land valuations are high, especially in the South and East of England. Even small farms can exceed £1 million in value, making them vulnerable to the new rules.
• Succession planning becomes harder. With a 20% tax charge on top of probate and legal costs, the younger generation may find it financially unviable to continue the family business.
• Borrowing to pay tax could increase pressure on margins, particularly in years with poor yields or falling commodity prices.

So, what can be done?

The key is to start planning early. Succession should be reviewed well before April 2026. This might include:

• Restructuring the ownership of the land or business
• Reviewing whether assets currently qualify for relief
• Transferring ownership gradually during lifetime
• Making use of trusts or lifetime gifting strategies where appropriate

Every farm is different, and tax planning in the agricultural sector requires a bespoke approach. The important thing is not to assume that the current rules will remain in place. The political and fiscal climate is shifting, and reliefs that have long been taken for granted may no longer apply.

If you are involved in farming, rural business, or own land used for agriculture, we strongly recommend a conversation about your current IHT position. Early advice can prevent future problems and help protect the legacy you plan to pass on.

The UK economy is showing signs of fatigue. Figures released at the end of June confirm that economic growth slowed to 0.7% in the first quarter of 2025. For small business owners, this is more than just a headline as it signals a shift in consumer behaviour, business confidence, and access to finance.

The Office for National Statistics (ONS) reports that household real incomes are falling. Disposable income is down by 1%, and personal saving rates are at their lowest since 2020. In plain terms, consumers have less money in their pockets. For businesses in retail, hospitality, or services, this may already be translating into weaker sales and a rise in price sensitivity.

At the same time, public borrowing is creeping up. Government figures show a rise in borrowing in the early months of the 2025-26 tax year, adding to fiscal pressure on the new government. With several welfare policy U-turns removing planned savings, the Chancellor faces a difficult Autumn Budget. Tax rises, cuts to investment allowances, or delays to business incentives are all possible outcomes.

The result is a more cautious economic mood. Many small business owners are already reporting tighter trading conditions and lengthening payment cycles. For those relying on external finance, the outlook is becoming more complex. Interest rates have remained relatively high, and lenders are applying stricter affordability tests – especially in sectors deemed higher risk.

What should business owners be doing now?

1. Revisit your cashflow forecasts – Account for lower revenue assumptions, changes in repayment terms, and higher finance costs. If possible, build in contingency funds for slower months.
2. Review your cost base  – Rising National Insurance contributions and minimum wage increases from April 2025 may already be having an impact. Consider whether savings can be made without affecting quality or customer service.
3. Prepare early for borrowing – If you are planning to seek finance or refinance existing lending, start the process sooner. Banks and alternative lenders will want to see up-to-date management accounts and evidence of strong financial control.
4. Talk to us – If you are concerned about profit margins, tax bills, or capital expenditure plans, now is the time to reassess. Small changes in tax planning or investment timing can make a difference.

Although growth is expected to return later in the year, the second half of 2025 is likely to be bumpy. In uncertain times, the businesses that perform best are usually those that plan ahead, communicate clearly, and keep a close eye on the numbers.

Registering for payroll is essential when hiring staff. From HMRC registration to legal compliance, getting payroll processes right ensures your team is paid correctly and your business avoids penalties.

When starting a business and hiring employees for the first time, one of the most important administrative steps is setting up a payroll scheme. This process ensures your employees are paid correctly and that your business complies with the necessary tax and employment laws.

The first step is to register as an employer with HMRC. You must register even if you are only employing yourself, for example you are the director of a limited company. This registration must be completed before your first payday. You need to register in most scenarios including for any employee earning at or over the minimum secondary threshold of £96 a week (2025-26 threshold).

Another important part of the payroll process is deciding whether you will run payroll yourself or use a payroll provider. If you manage it yourself, you must choose an approved HMRC-recognised payroll software to record employee details, calculate pay and deductions and report to HMRC.

Once registered, you’ll need to:

• Collect and maintain employee records.
• Report employee information to HMRC.
• Make accurate tax and National Insurance deductions.
• Submit reports to HMRC using Real Time Information (RTI) on or before each payday.
• Pay HMRC what you owe in tax and National Insurance.

You must also:

• Comply with National Minimum Wage laws.
• Check employees’ legal right to work in the UK.
• Set up a workplace pension scheme for eligible staff.

You will also need to complete annual payroll tasks. Setting up a payroll scheme can be complex, and we would of course be happy to help you choose the optimal set-up for your circumstances. We can also, if required, manage the payroll process for you.

Side income over £1,000 may mean filing a tax return. HMRC is urging part-time earners to check their tax position for 2024-25, especially if they earn from casual work, renting, or crypto.

If you are earning extra income it is important to be aware of the tax implications.

The good news is there are two £1,000 tax allowances available for small amounts of miscellaneous income. The first is for property income and the second is for trading income. If you have both types of income, you can claim £1,000 for each.

• Trading Allowance: If you make up to £1,000 from self-employment, casual services (like babysitting or gardening), or renting out personal equipment (such as power tools), this income is tax-free and doesn’t need to be declared.
• Property Allowance: If you earn £1,000 or less from property-related activities (like renting out a driveway), you don’t need to report it to HMRC or include it in your tax return.

These allowances cover all relevant income before expenses. If your income is under £1,000, it’s tax-free. If you earn more than £1,000, you can choose to either deduct the £1,000 allowance from your income or list your actual expenses when calculating your taxable profit.

However, if your part-time income exceeds £1,000 in a tax year, you may need to complete a self-assessment tax return. This includes gains or income received from cryptoassets. Keep in mind this only applies if you are actively trading or selling services. If you are just clearing out personal possessions by selling them, there is usually no need to worry about tax.

If you are required to submit a tax return for the 2024-25 tax year, then the deadline to submit a tax return online and pay any tax owed is 31 January 2026.

From 2025, Companies House is rolling out new identity verification requirements for directors, people with significant control (PSCs), and anyone forming or managing a UK company. These changes form part of the Economic Crime and Corporate Transparency Act and are designed to reduce fraud and increase confidence in UK companies.

If you are involved in running a business, you may soon need to prove your identity either directly through Companies House or via a registered agent such as your accountant. Without completing verification, you will not be allowed to register a company or take up a new role as a director or PSC.

These rules apply to:

• Company directors (existing and new)
• Individuals with significant control (usually shareholders with 25% or more of shares or voting rights)
• Company formation agents
• Anyone filing information at Companies House on behalf of a business

The new system is already partially in place. Since April 2025, authorised agents can verify identities on behalf of their clients, but from a future date still to be announced, Companies House will require all key company officers to comply before filings will be accepted.

For business owners, this means a few practical actions:

• Ensure all directors and PSCs have current and valid photo ID.
• Decide whether you want to complete ID checks directly or use an authorised agent.
• Check that your company’s records at Companies House are up to date.

We expect enforcement and deadlines to follow later in the year, so it is wise to prepare in advance. If you are uncertain how these changes affect you, or how best to carry out the verification, we are happy to help.

1 July 2025 – Due date for corporation tax due for the year ended 30 September 2024.

6 July 2025 – Complete and submit forms P11D return of benefits and expenses and P11D(b) return of Class 1A NICs.

19 July 2025 – Pay Class 1A NICs (by the 22 July 2025 if paid electronically).

19 July 2025 – PAYE and NIC deductions due for month ended 5 July 2025. (If you pay your tax electronically the due date is 22 July 2025).

19 July 2025 – Filing deadline for the CIS300 monthly return for the month ended 5 July 2025. 

19 July 2025 – CIS tax deducted for the month ended 5 July 2025 is payable by today.

1 August 2025 – Due date for corporation tax due for the year ended 31 October 2024.

19 August 2025 – PAYE and NIC deductions due for month ended 5 August 2025. (If you pay your tax electronically the due date is 22 August 2025)

19 August 2025 – Filing deadline for the CIS300 monthly return for the month ended 5 August 2025. 

19 August 2025 – CIS tax deducted for the month ended 5 August 2025 is payable by today.

For high net worth individuals (HNWIs), tax planning is not simply a compliance activity, it is a strategic tool to preserve and grow wealth. With rising scrutiny from HMRC, frozen allowances, and increasingly complex legislation, the value of well-structured planning has never been higher.

HNWIs typically have multiple sources of income: from employment, dividends, property, pensions, or overseas investments. This complexity brings opportunities, but also risk. Without active tax planning, much of that income can be lost to inefficient structuring or missed reliefs.

Using allowances such as the personal allowance, dividend allowance, and savings allowance is key. Where income exceeds £100,000, tapering of allowances becomes relevant. Income splitting between spouses and the use of family investment companies or trusts can help manage liabilities.

The capital gains tax (CGT) annual exemption is now only £3,000 (2025-26). Disposals must be timed carefully, with use of spousal exemptions or crystallising gains across tax years considered.

HNWIs are most exposed to inheritance tax (IHT), which charges 40% on estates above £325,000 (plus any residence nil-rate band). Making lifetime gifts, using trusts, and taking advantage of the exemption for gifts from surplus income can significantly reduce exposure.

Global families must manage UK tax residency and domicile status carefully. The remittance basis may apply to foreign income, but this often requires payment of the remittance basis charge. Changes to domicile treatment post-April 2025 make planning in this area even more important.

Pensions, ISAs, and offshore bonds can provide valuable tax sheltering. For HNWIs, using the annual and lifetime pension allowances efficiently, especially while they remain available, is a core planning task.

In summary, proactive tax planning is about more than saving money. It gives HNWIs confidence, control, and the ability to plan for the future. With HMRC increasing its focus on high earners, reviewing tax affairs annually is no longer optional, it makes good financial sense.

The government has announced the reinstatement of Winter Fuel Payments for pensioners in England and Wales for winter 2025-26, reversing the previous year’s cuts. Around nine million pensioners are expected to benefit from this decision, with payments of £200 per household or £300 for households where someone is aged 80 or over.

Eligibility will be based on age and income. Anyone who has reached State Pension age by the qualifying week of 15 to 21 September 2025 and earns £35,000 or less will receive the payment automatically. Pensioners with higher incomes will still receive the payment but may have it recovered through the PAYE or Self-Assessment systems. Alternatively, they can opt out of receiving the support altogether.

The move is part of a broader attempt to provide targeted help to those most in need while managing public finances responsibly. The scheme is expected to cost around £1.25 billion, but by introducing means-testing for higher earners, the government aims to save approximately £450 million compared to the previously universal scheme.

The decision follows public concern about last year’s removal of the payment, which had a significant impact on many lower-income pensioners. It has been welcomed by pensioners’ groups and campaigners who argued that older people should not be left without support during the winter months.

Full details of how to apply or opt out, along with confirmation of eligibility, will be published later in the summer, with funding arrangements to be finalised in the Autumn Budget.

HMRC missed out on £46.8bn in tax last year. Small businesses and Corporation Tax make up the biggest share of the shortfall.

The tax gap for the 2023-24 tax year has been published and is estimated to be 5.3% of total theoretical tax liabilities.

The tax gap is basically the difference between the amount of tax that should have been paid to HMRC and the amount of tax collected by the Exchequer. The gap includes tax that has been avoided in the UK’s black economy, by criminal activities, through tax avoidance and evasion. However, it also includes simple errors made by taxpayers in calculating the tax they owe as well as outstanding tax due from businesses that have become insolvent. 

In monetary terms, the tax gap is equivalent to lost tax of £46.8 billion. This means that HMRC collected £829.2 billion or 94.7% of all tax due.

The government has announced plans to raise a further £7.5 billion through its measures to close the tax gap.

Some of the key findings from this year’s calculations show:

• Small businesses represent the largest proportion of the tax gap (60%).
• Corporation Tax accounts for 40% of the total tax gap.
• Failure to take reasonable care (31%), error (15%) and evasion (14%) are among the main behavioural reasons for the overall tax gap.

As announced at Spending Review 2025, £1.7 billion will be provided to HMRC over four years to fund an additional 5,500 compliance and 2,400 debt management staff in order to try and ensure that more of the tax due is paid, to fund public services. 

Tensions in the Middle East have always carried global implications, but few pressure points are more critical than the Strait of Hormuz. This narrow passage off the coast of Iran is the transit route for around one-fifth of the world’s oil and a quarter of its liquefied natural gas (LNG). A closure, even temporary, would trigger a global economic ripple. For the UK, the consequences would be serious, with sharp effects on energy costs, inflation, and supply chains.

The likely impact on the UK economy

Although the UK does not buy a large share of oil or gas directly from the Gulf, global energy markets are extremely sensitive. A disruption in supply from the region would cause oil and gas prices to surge on international markets. That would feed through to UK fuel prices, electricity generation costs, and ultimately to the cost of goods and services.

Households would feel the pinch at the petrol pump and through higher heating bills. Businesses would face increased production and transport costs. Sectors such as food, manufacturing, and logistics, all of which rely on energy-intensive processes or imported inputs, could see margins squeezed or operations disrupted.

With inflation already proving stubborn, a sudden energy price shock could reverse recent progress and prompt the Bank of England to hold or even increase interest rates. That would add to borrowing costs, slow consumer spending, and potentially delay investment decisions by UK firms.

How UK businesses can respond now

While the exact course of events cannot be predicted, businesses can take practical steps now to reduce their exposure to external shocks like this one.

1. Review and diversify supply chains
   Look for alternatives to suppliers or routes that may be affected by increased shipping costs or delays. Building in more resilience can help ensure continuity.
2. Lock in energy contracts
   Businesses should explore fixed-price energy contracts or forward purchasing arrangements where possible. This can cap exposure to sudden cost spikes.
3. Build working capital reserves
   Improving cash flow and keeping a buffer in reserve will help businesses weather a temporary period of higher costs or slower trading.
4. Increase pricing flexibility
   Firms should assess where modest price rises might be accepted by customers if energy-related costs go up and have plans ready.
5. Monitor geopolitical and market signals
   Keeping informed of developments in the region and commodity markets allows for quicker reactions and better-informed decisions.

Conclusion

The UK may not be on the frontline of Middle Eastern tensions, but it is firmly within the economic blast radius of any disruption to global energy flows. With risks like a Strait of Hormuz closure hard to predict but potentially severe, sensible preparation is not alarmist, it is strategic. Businesses that plan ahead are more likely to stay resilient, competitive, and in control, whatever the headlines bring.