President Trump’s tariff proposals are creating uncertainty in global markets.

While the UK has not been directly targeted yet, British businesses could still feel the impact of U.S. trade policies.

Trump’s latest proposal to impose reciprocal tariffs on countries with value-added tax (VAT) systems, including the UK, could result in a 20 per cent tax on British exports to the U.S., primarily affecting industries like automotive, pharmaceuticals, and food and drink.

If you export goods to the U.S., it is time to review your relationships with your U.S. partners.

Consider renegotiating contracts or terms and assess how tariffs might impact pricing and demand for your products.

The UK’s strong ties with the EU mean that tariffs on European goods could also indirectly raise raw material and component costs for British businesses.

As supply chains become more unpredictable, UK companies may face inflationary pressures and operational challenges.

To mitigate these risks, consider sourcing materials from UK manufacturers or regions less likely to be affected by Trump’s tariffs.

This can reduce your reliance on European and U.S. suppliers, where disruptions and cost increases are anticipated.

Uncertainty around Trump’s trade policies has already led some businesses to delay investments and rethink their global business strategies.

Given that many details about potential tariffs remain unclear, staying updated on U.S. trade policies and adjusting your strategy to minimise the impact is crucial.

It is recommended that you develop contingency plans to protect your business in case tariffs are levied in future.

Contact us if you are concerned about how global trade disruptions could impact your business.

If you have had career breaks, worked abroad, or earned below the National Insurance (NI) threshold, you could have gaps in your State Pension.

HM Revenue & Customs (HMRC) extended the deadline for voluntary NI contributions (NIC) to 5 April 2025, giving individuals an opportunity to fill gaps dating back to 2006.

After this date, any gaps between April 2006 and April 2019 will become permanent, potentially reducing your State Pension entitlement.

Here is what you need to know about qualifying periods for your State Pension:

• 35+ years of NICs = Full State Pension
• 10 to 35 years = You will receive a proportionate amount based on your contributions.
• Less than 10 years = Ineligible for any State Pension.

Each additional year of contributions could increase your pension by £328.64 annually, based on 2024-2025 rates, which could significantly improve your financial stability during retirement.

For non-working parents, there may be additional support available.

If you have taken time off work to care for children, you might qualify for Pension Credit or receive National Insurance credits through Child Benefit claims.

These credits can help protect your entitlement to the State Pension, so it is important to check whether you are receiving all the benefits you are entitled to.

From 6 April 2025, you will have only six years from the end of each tax year to fill any gaps in your National Insurance records.

For example, if you want to make contributions for the 2023/24 tax year, the deadline will be 5 April 2030.

What you should do next

Men born after 5 April 1951 and women born after 5 April 1953 should check their records immediately, as you may be eligible for the new State Pension.

You should not leave your retirement income to chance, and we advise you discuss future planning with your accountant at the earliest opportunity.

Check your NI record today via the Government’s online portal or contact our expert team for tailored advice on securing your financial future or boosting your State Pension before the 5 April 2025 deadline.

For help with your retirement planning or guidance on your State Pension, please contact our team.

Upcoming changes to Inheritance Tax (IHT) will be phased in over the next two years.

With property values rising and the IHT nil-rate thresholds remaining frozen until 2030, more estates will face unexpected tax bills if they fail to plan accordingly.

While two years may seem like plenty of time to prepare, effective estate planning requires careful consideration and proactive action sooner rather than later.

• From April 2025 – A new residence-based system will replace the existing domicile regime. This change means that individuals who have lived in the UK for at least 10 of the last 20 years will be liable for IHT on their worldwide assets. Non-UK residents may still face IHT liabilities for up to 10 years after leaving the country.
• From April 2026 – Agricultural and Business Property Relief (APR and BPR) will be capped. From this date, 100 per cent relief will only apply to the first £1 million of eligible assets in an individual’s estate. Anything above this threshold will incur an IHT charge of 20 per cent. This change will have significant implications for family-run businesses and farming families.
• From April 2027 – Unspent pension funds, previously exempt from IHT, will become taxable. Inherited pension pots will be included in estate calculations, potentially pushing more families over the threshold, particularly as they remain frozen.

If you are unsure whether these changes will impact your estate planning, seek professional advice to help mitigate potential IHT liabilities and ensure your family assets remain protected.

Our experienced team can help you review your assets and pension arrangements, explore practical gifting options, and consider trust structures that suit your family’s needs.

Contact our team today for assistance minimising your IHT liabilities.

As the end of the tax year approaches, it is a good time to review your personal tax position and ensure you are making the most of available allowances.

Unlike company tax planning, which can take place throughout the year, personal tax is closely tied to the tax year-end on 5 April.

This makes early planning essential to avoid missed opportunities or unexpected tax liabilities.

Meeting with your accountant before key deadlines allows you to review your financial position and act on advice where needed.

The discussion will typically cover:

• Tax planning – Reviewing ways to manage your tax liabilities efficiently.
• Spending and saving plans – Ensuring your personal spending and use of assets align with your financial goals.
• Opportunities and risks – Identifying areas that may need attention before the tax year-end.

Having these conversations now will give you confidence and peace of mind that your tax affairs are in order before 5 April.

Key benefits of meeting your accountant before year-end

A pre-year-end meeting allows you to take a proactive approach rather than reacting to financial issues after they arise.

By reviewing your tax position, allowances, and financial commitments in advance, you can make changes that may not be possible once deadlines have passed.

Small adjustments ahead of key dates – whether for tax efficiency or future planning – can put you in a stronger financial position.

Exploring your tax relief options ahead of year-end

Meeting with your accountant ahead of deadlines gives you the chance to discuss tax-saving opportunities, including:

• Maximising personal allowances – Ensuring you make full use of your Income Tax personal allowance, savings allowance, and dividend allowance.
• Making pension contributions – Reviewing whether additional pension contributions before 5 April could reduce your tax bill.
• Using capital gains tax allowances – If you are planning to dispose of assets, considering timing to make the most of annual exemptions.
• Gift planning – Taking advantage of Inheritance Tax exemptions by making tax-efficient gifts.
• Planning for dividend and investment income – Ensuring your investments are structured in a tax-efficient way before the tax year-end.

By reviewing these tax relief options now, you can take advantage of available allowances and ensure you are in the best possible position for the new tax year.

From 6 April 2025, changes to employer National Insurance Contributions (NICs) will take effect, increasing payroll costs for many businesses.

If you employ staff, it is advisable to prepare now for how these changes will impact you financially.

Here are the key numbers to keep in mind:

• Lower NICs threshold – Employers will start paying NICs at £5,000, down from £9,100.
• Higher NICs rate – The secondary Class 1 NICs rate will rise from 13.8 per cent to 15 per cent, increasing employer costs.
• Larger Employment Allowance – For eligible businesses, this will increase from £5,000 to £10,500, more than doubling the relief on their NICs liabilities.
• No more £100,000 cap – More businesses will now be able to claim the Employment Allowance, as the cap is being removed.

With these changes approaching, you should assess your payroll costs and plan to manage the financial impact on your business.

How will this affect your business?

Despite the Employment Allowance increase and the removal of the £100,000 cap, many businesses will feel the pinch in April. The changes are set to cause:

• Increased employment costs – The combination of a lower threshold and higher NICs rate means many employers will pay more.
• Greater strain on cash flow – Higher NICs liabilities may require businesses to adjust payroll budgets to manage rising costs.
• Limited relief for some businesses – While the increased Employment Allowance will help, it may not fully offset the additional NICs for employers with larger payrolls.

Understanding these impacts now can help you adjust your financial planning and ensure your business is prepared for the changes ahead.

Do not let these changes catch you off-guard. Contact us today for advice on financial forecasting, payroll planning, and exploring tax efficiencies.

If you are thinking about selling your business, timing could be everything.

Business Asset Disposal Relief (BADR), formerly known as Entrepreneurs’ Relief, helps business owners reduce their Capital Gains Tax (CGT) liability when selling qualifying assets.

However, with adjustments to BADR coming in April 2025, it is important to make plans for an exit strategy sooner rather than later.

Current BADR rules and the upcoming change

BADR currently allows eligible sellers to pay a reduced CGT rate of 10 per cent on gains up to £1 million over their lifetime.

This is a substantial saving compared to the standard CGT rate of up to 24 per cent.

However, from April 2025, this preferential rate rises to 14 per cent, and from April 2026, it increases again to 18 per cent.

So, if you are a business owners considering a sale, should you bring forward your plans to lock in the lower tax rate?

Consider your options before a rushed sale

While selling before the rate rise may seem like a straightforward decision, there are other factors to consider:

• Is the market favourable?
• Is your business in the best possible position to attract buyers?
• Does the timing coincide with your personal financial goals?

Anti-forestalling rules also mean that certain transactions, such as share reorganisations, loan notes or sales to connected parties, could be caught under the new rates.

If you have structured a sale or disposal in recent years, you may need to review your position to avoid unexpected tax liabilities.

With the deadline fast approaching, you should act immediately.

Speak with our experts today for exit strategies and advice on the reliefs available to you.

From 1 April 2025, the National Minimum Wage will rise to £12.21 per hour (an increase of 6.7 per cent), meaning rising employment costs for businesses.

For graduates, higher earnings can trigger student loan repayments, a factor you should consider when managing your payroll.

Graduates start repaying their student loans when their income exceeds specific thresholds, depending on the loan type.

The repayment rate is nine per cent on any income above these thresholds:

• Plan 1 – £24,990 per year
• Plan 2 – £27,295 per year
• Plan 4 – £31,395 per year
• Plan 5 – £25,000 per year
• Postgraduate Loans – £21,000 per year (six per cent repayment rate)

Although the responsibility for repaying loans lies with employees, you have an obligation as the employer to accurately calculate the loan repayments.

Combined with Income Tax and National Insurance contributions, those who earn above the threshold can face an effective tax rate of up to 37 per cent.

Many graduates may not realise this, and overtime could trigger loan deductions and increase the amount of tax paid.

As such, you must be prepared to answer any questions that arise from your employees on this topic.

What employers can do to support employees

You can play a proactive role in reducing confusion and ensuring your payroll processes handle these changes effectively.

• Educate your workforce – Help employees understand how overtime impacts their earnings and may trigger student loan repayments.
• Provide reassurance – Clearly explain to employees how and why deductions were made, preventing any confusion or negative reactions.
• Review overtime policies – Assess how extra hours affect payroll and employee earnings.

If you are looking for advice on payroll management, tax planning, or handling student loan repayments, our team is here to help.

Contact us today to ensure your business stays ahead of these changes.

HM Revenue & Customs (HMRC) has recently issued One to Many (OTM) letters to private equity businesses and estate agents.

These letters can be sent to any business and usually highlight HMRC’s focus on compliance, urging you to review your practices.

What are One to Many letters?

OTM letters are not threatening and do not target one specific business.

They are sent to multiple businesses simultaneously regarding a specific topic, urging recipients to review their compliance and act where necessary.

These letters typically outline what HMRC expects, the steps to rectify potential issues, and the consequences of non-compliance.

While OTM letters are not formal investigations, they should not be ignored.

They are an opportunity for you to identify and address potential compliance issues before HMRC takes further action.

Failing to respond adequately could lead to penalties, inquiries, or, in serious cases, criminal investigations.

How should you respond to an HMRC One to Many letter?

If you receive one of these letters, here are some key steps to follow:

• Remain calm – The letter often serves as a precautionary prompt for action
• Read carefully and understand the content of the letter
• Review your business’s records and procedures

If the letter highlights a potential issue, act promptly to correct it.

This may involve updating your procedures, registering for relevant schemes, or making a voluntary disclosure to HMRC.

Ignoring an OTM letter can lead to investigations, penalties, or legal action.

Even if you have not received an OTM letter, it is a good idea to regularly review your compliance with tax and regulatory obligations.

Need support with HMRC correspondence?

If you have received an OTM letter or need help reviewing your compliance, our team of experts is here to assist.

Received a OTM letter? Speak with us today for advice on how to deal with it.

In January, the Government unveiled its Artificial Intelligence (AI) Opportunities Plan, outlining how the UK hopes to shape the AI trajectory by driving economic growth, enhancing public services, and creating new job opportunities while ensuring AI benefits society.

While there is still a lot we do not know about the full capabilities of AI, we do know how revolutionary it has been in handling everyday business tasks through automation.

Using AI to streamline your business operations

We have seen small businesses leveraging AI to help with the following:

• Identifying and addressing inefficiencies – Analyse where slowdowns or challenges occur in your operations. Whether it is delayed approval processes, repetitive administrative tasks, or inventory management that consumes too much time, AI can streamline these areas to improve efficiency.
• Improving customer engagement – Use AI-driven tools to personalise customer experiences, from targeted marketing to AI chatbots that respond immediately to routine customer queries. This can improve satisfaction and free up your team for more complex issues.
• Resource allocation and cost reduction – Are your resources being underutilised or overburdened? AI can suggest optimal staffing levels and help you make more informed budgeting decisions. It can also identify areas where costs can be reduced without compromising quality.

As you can see, there are countless opportunities to capitalise on AI to streamline your everyday operations and ensure your employees can focus their efforts where they will have a greater impact.

Why you should still be cautious in AI implementation

Despite AI offering many benefits, public perception in the UK remains mixed.

Over a third of the population fears AI’s impact on society and the job market, with many associating it with robots taking over human jobs and creating widespread unemployment.

As the UK continues pushing AI integration, it is important to remember that the technology is still largely unregulated.

You should avoid inputting sensitive information, such as customer details or financial records, into AI tools unless you know how your data will be stored and used.

Always check the tool’s privacy policy to ensure it complies with data protection regulations – you do not want to breach data protection laws inadvertently.

AI is a powerful assistant but not a replacement for human judgement.

Always review AI-generated content and outputs to ensure quality, accuracy, and appropriateness, as this is not guaranteed due to the lack of regulation to hold it accountable for misinformation.

Speak to our team about potential tax reliefs, allowances and funding opportunities to help you invest in AI safely and effectively.

No matter how well-prepared you may think you are, things will not always go to plan.

It could be a sudden shift in the market, supply chain disruptions, unexpected repairs to your office or equipment, or even a personal emergency.

That is why having a budget that accounts for the unknown is essential.

How to budget effectively

Here are some of the strategies to help you build a budget that is proactive:

• Build a contingency fund – Set aside some of your income for those unplanned moments. The amount you save will depend on your business’s expenses and profits. If you are unsure how much to put aside, speak to an accountant.
• Review your budget regularly – Make it a habit to periodically review your income, expenses, and savings goals to ensure you are on track. This allows you to adjust for any changes without derailing your entire plan.
• Categorise your costs – Sort your costs into categories like operational expenses, marketing, payroll, and overheads. This will help you quickly spot areas where you may be overspending or where savings could be redirected into more critical areas.
• Avoid unnecessary spending – It can be tempting to buy new gadgets or upgrades but do not let these purchases compromise your financial security.

While you cannot always predict what lies ahead, that does not mean that you cannot prepare for it.

By budgeting effectively, you can ensure your business remains resilient in the face of uncertainty and proceeds to grow with confidence.

Contact our expert accountants now to secure a budget that prepares you for anything.