Energy bills, staffing, borrowing costs, taxes and supplier expenses are just a few of the reasons behind the added financial pressure business owners are currently facing.

As we get closer to the new tax year, it is the ideal time to review your business plans and check that your pricing strategy remains fit for purpose.

Why you should review your pricing strategy now

Reviewing pricing regularly is a key part of maintaining a viable and sustainable business.

Many businesses set prices once and only revisit them when they encounter challenges.

If you leave your prices unchanged for too long, especially amid current economic pressures, you are likely to see your profit margins shrink.

A more regular review can help avoid this.

How to review your pricing strategy

Before making any changes to your pricing strategy, ask yourself:

• Have your business costs increased in the 2025/26 tax year?
• Have you added any new services or products, or upgraded older ones?
• Are your prices in line with what your competitors charge?
• Are your current prices still yielding a sustainable profit?
• Have your customers’ needs, budgets or buying behaviour changed recently?

These are just a few of the questions we ask our clients to think about.

Pricing decisions should reflect both the value you deliver and the cost of running your business.

If your prices are not covering your overheads or generating sustainable profits, it may be time to increase them.

We understand that this can feel uncomfortable for some business owners who worry that raising prices will push customers away.

However, most clients are far more focused on the quality, reliability and expertise they receive from the service or product than on small price changes.

As long as increases are fair and correlate to the value you deliver, clients often accept the added costs without issue.

Review your prices now to make smarter decisions for your business’s future.

Get in touch if you would like help reviewing your pricing strategy.

Recent media coverage has publicised the possibility of a new tax on people who leave the UK, calling it an “exit tax”.

This type of regime already exists in several countries, including France, Spain, Canada and Australia, and is now being discussed as a possible option for the UK Government to raise revenue.

What is an exit tax?

An exit tax in the UK would impose a levy, likely 20 per cent, on gains accumulated while a person was a UK tax resident.

Unlike Capital Gains Tax (CGT), which applies to assets when you sell them, a regime like this could mean assets, such as shares and property, could be treated as though they had been sold at the point a person leaves the UK.

Tax would then be calculated on the increase in value to date.

What is the current tax situation when you leave the UK?

Currently, individuals who leave the UK can typically dispose of assets after departure without incurring UK CGT, as long as they remain abroad for a minimum of five years.

However, a move towards a more immediate exit tax could have a consequential impact on those considering a change in residence, potentially restricting international mobility.

How could an exit tax affect you?

Business owners would need to take extra care because shareholdings in trading companies, growth shares and other long-term investments may carry unrealised gains.

An unexpected tax charge at the point of departure could prove challenging, particularly where assets are difficult to sell, as the individual may not have the cash available to settle the bill at that time.

What should you do now?

At this point in time, there is no certainty as to whether an exit tax will even be introduced or what it might entail, making it difficult to effectively plan.

However, the ongoing discussions serve as a reminder that decisions around residence, investment timing and business succession should be made carefully, with future implications in mind.

Professional advice can help ensure that long-term plans remain in tandem with your goals. Get in touch today to discuss your tax liabilities.

Small businesses have been given a reprieve, after Companies House confirmed that its plans to require the filing of profit and loss accounts from April 2027 are on hold.

A new update to official guidance confirms that the change will not go ahead on that date, with the reforms currently under review.

Companies House has said businesses will receive at least 21 months’ notice before any new implementation date is introduced.

Reforms under the Economic Crime and Corporate Transparency Act (ECCTA) 2023

The proposal had formed part of wider reforms under the ECCTA 2023, aimed at improving corporate transparency.

Under the original plans, micro entities would have been required to file both a balance sheet and a profit and loss account.

Meanwhile, small companies would have needed to submit a balance sheet, profit and loss account, directors’ report and, where relevant, an auditor’s report.

However, concerns were raised about whether the move struck the right balance between tackling economic crime and placing additional burdens on smaller businesses.

There was also a notable fear that it would make sensitive financial data public that could risk the competitive viability of smaller businesses.

As a result, the timeline has been paused by Companies House while the reforms are reconsidered.

Only a temporary reprieve for small business owners

For many small business owners, this will be welcome news, but it is only a temporary reprieve.

It is important not to see this as the end of the story. The reforms have only been delayed and not scrapped entirely.

A revised timetable could still bring profit and loss accounts into the public filing framework in the future.

Next steps for small businesses

Businesses should continue to keep their financial records in good order and maintain strong internal reporting processes.

Greater transparency remains a clear direction of travel for Companies House and HMRC, even if the pace of change has slowed for now.

We will continue to monitor developments closely and keep you updated as soon as further details are confirmed.

In the meantime, if you require any assistance with your Companies House responsibilities, please get in touch.

As the deadline for Self Assessment passes, new data from HMRC shows that taxpayers paid a staggering £325 million in fines and interest last year after failing to meet the 31 January deadline.

Recent analysis of HMRC’s publicly available statistics found that around 600,000 individuals were hit with penalties for filing or paying late, which serves as a clear warning to those who still have returns or payments outstanding.

Fines for late tax returns and payments

HMRC’s systems automatically issue a £100 penalty for missing the filing deadline, even if no tax is owed, with further fines issued if payment or filing of a tax return isn’t completed within certain time frames.

Fines for late filing are as follows:

Fines for late payments are as follows:

HMRC estimates that £8.7 billion of Self Assessment tax went unpaid in the 2023/24 cycle. This represents 12.5 per cent of the £69.6 billion it expected to collect for the year.

Across all taxes, around £44 billion is now overdue, with the vast majority already in line for formal debt collection.

Be prepared for Self Assessment

For many taxpayers, the real issue is a lack of preparation rather than an unwillingness to pay.

Underestimating a tax bill, poor record keeping or leaving everything until the last minute can lead to panic and costly mistakes.

Once penalties and interest start to accumulate, the situation can quickly spiral out of control.

Setting aside funds throughout the year and seeking advice well before the deadline can make a significant difference.

If you are unsure about your Self Assessment obligations or are worried about an existing liability, speak to us as soon as you can.

The Autumn Budget 2025 has brought more changes to business rates and many businesses and property owners could be at risk of higher bills.

Businesses must know if they are affected and seek the right support so they can prepare for any unexpected pressure on their cash flow.

Is the business rates multiplier being reduced?

The Government confirmed that the annual business rates multiplier in England will decrease by between 11.7 per cent and 13.5 per cent.

While this may appear to be good news, most businesses are unlikely to see meaningful savings. Rising rateable values, along with new supplements, mean that many occupiers will be paying more.

The reforms will also introduce a temporary 1p increase in the multiplier in 2026/27 for properties that do not qualify for transitional relief.

What are the changes to Retail, Hospitality and Leisure (RHL) relief?

Retail, Hospitality and Leisure (RHL) relief will reduce again from April 2026.

Properties with a rateable value of up to £51,000 will receive around 20 per cent relief, while those between £51,000 and £500,000 will receive 10 per cent relief.

This follows on from a significant reduction from 75 per cent to 40 per cent in 2025/26.

While this may reduce the burden on larger occupiers who previously funded the relief, smaller businesses may feel the impact through tighter margins.

What does this mean for property owners?

Larger commercial properties with a rateable value above £500,000 will be faced with a super supplement, currently set at around 5.8 per cent.

There will be some protection as the transitional relief annual cap is increasing to 30 per cent.

However, the new Rating List being published late means businesses have limited time to budget.

What are the new cuts to pubs and music venues?

Following backlash from the 2025 Budget, the Government has announced that pubs and live music venues will now get a 15 per cent cut to the new business rate bills from April 2026.

This cut will be frozen for two years and a review will also be conducted on the method used to value them for business rates.

How can we help you prepare?

Businesses should be reviewing their projected rateable values and factoring business rates into their cash flow forecasts.

You must know if you are eligible for reliefs and transitional support and seek advice if you are unsure about how the business rates will affect you.

We can help support your budgeting plans so you can make informed decisions come April 2026.

For further guidance or advice, contact our team today.

From April 2026, the Employment Rights Act will come into effect, bringing reforms to Statutory Sick Pay (SSP) that will affect every employer.

It will change how SSP is calculated and create new responsibilities for employers.

What are the changes to SSP?

One of the biggest changes is the removal of the three waiting days within current legislation. SSP will instead become payable from the first day of sickness, rather than from day four.

This means employers will need to pay SSP for short absences that may have previously gone unpaid.

The Lower Earnings Limit (LEL) will also be abolished and part-time, low-paid and casual workers will now qualify for SSP.

How SSP is calculated will also change and the payment rate will be the lower of:

• 80 per cent of Average Weekly Earnings (AWE)
• The standard SSP flat rate, which is rising to £123.25 per week

SSP will still be based on average weekly earnings, usually calculated over the eight weeks before the sickness absence.

If your employee is already receiving SSP before 6 April 2026, transitional protections will apply.

This protection lasts for the remainder of their 28-week entitlement, provided they do not return to work or end their contract beforehand.

How should employers prepare for SSP changes?

These changes will bring additional responsibilities to your payroll teams and you must start planning now.

This includes:

• Reviewing sickness absence policies to reflect day-one SSP
• Updating contracts and handbooks on waiting days or earning thresholds
• Checking payroll systems can handle percentage-based SSP calculations
• Budgeting and forecasting costs, as more employees will qualify for SSP
• Communicating clearly with employees so new obligations are met

How can we support you?

Our payroll specialists can help you model the financial changes to SSP and make sure your systems and calculations are compliant.

We can also review your policies and help reduce the risk of costly payroll errors.

For further guidance or advice on the SSP changes, contact our team today.

From April 2027, all UK employers will be required to payroll Benefits in Kind (BiKs) rather than reporting them through the traditional P11D process.

While this may feel a long way off, businesses should start preparing now so that their payroll remains compliant and employee benefits are taxed accordingly.

What changes will BiKs bring?

Payrolling BiKs means that taxable non-cash benefits, such as company cars and private medical insurance, will now be processed through payroll in real time rather than calculated and submitted annually.

These changes will reduce year-end admin for employers and provide a clear, up-to-date view of which employees are receiving which benefits.

What employers need to know

The move towards real-time reporting will affect how businesses offer staff benefits, particularly those with complex packages or with many employees receiving taxable benefits.

The main considerations include:

• Technology readiness – Payroll systems must process benefits alongside salaries accurately
• Data integration – HR and payroll teams must work together seamlessly
• Employee communication – Staff must be informed about the payroll changes and their impact
• Compliance – Incorrect calculations can create risks that are harder to correct in real time

How can employers prepare?

Employers must use the next year to assess which benefits are reported via P11D and whether their payroll system can handle real-time reporting.

Clear communication with your payroll providers can help confirm that you are ready to support payrolling BiKs and understand what additional data or system changes are required.

To reduce the risk of errors, employers may look to invest in technology and training to ensure staff who are responsible for payroll and benefits fully understand their roles and can process them accurately each month.

How to stay compliant with BiK?

Preparing for payrolling BiKs is crucial and salary sacrifice arrangements and consistent monthly calculations must be considered to avoid underpayment of tax.

With the right financial advice, you can streamline processes and ensure your payroll and benefit strategies remain compliant and efficient.

For help reviewing your payroll system and identifying potential risks for BiKs, contact our team today.

Recent research from the Chartered Institute of Credit Management (CICM) has revealed that 82 per cent of SMEs have faced cash flow difficulties.

For many small businesses, periods of high activity can be followed by quieter months that place pressure on finances.

While a business may look profitable on paper, poor cash flow management can quickly cause problems that could even lead to insolvency.

Why are SMEs continuing to struggle?

Cash flow determines whether your business can pay suppliers, meet payroll, cover tax liabilities and face unexpected costs.

When cash flow is healthy, businesses have the flexibility to invest and take advantage of new opportunities to grow.

However, when it is under strain, business owners may rely on short-term borrowing or delay payments, which can be a difficult cycle to break.

Late payments are one of the biggest culprits for SMEs struggling and it can just take one or two delayed invoices to stretch cash reserves.

Growing businesses can feel this even more as expansion usually means hiring staff or buying equipment long before income catches up.

How to prepare your cash flow?

Preparation is essential to avoiding a cash flow crisis. Invoices should be issued promptly, clear payment terms should be set and a consistent debt collection process should be put in place.

Many businesses can benefit from accounting software that automates invoices and reminders, while offering alternate payment methods can make it easier for customers to pay on time.

Regular cash flow forecasting can help you spot any potential shortfalls and budget spending for the quieter months.

Reviewing costs and cutting non-essential expenses during slower periods can also ease pressure on cash reserves.

If you are really struggling, external finance such as invoice finance or an overdraft facility can help bridge short-term gaps, especially when customers have long payment terms.

Prepare your finances now

Cash flow is one of the toughest parts of running a business, but early financial advice can help you set up more resilient systems and make informed decisions.

Our expert team can help strengthen your cash flow and build a cash flow reserve for when your business faces unexpected expenses or downturn.

For expert advice on keeping your cash flow healthy, contact our team today.

The Employment Rights Act 2025 has reached the end of its parliamentary debate and is set to bring significant changes to UK Employment Law.

Employers are now faced with a limited window to prepare their payroll systems and processes for the upcoming reforms.

What reforms will the Employment Rights Act 2025 bring?

The Employment Rights Act’s regulations will mainly come into effect on the common commencement dates of 6 April or 1 October.

From April 2026, Statutory Sick Pay (SSP) will become more accessible as the Lower Earnings Limit (LEL) and waiting period will be removed.

Paternity leave and unpaid parental leave will become day-one rights, requiring payroll and leave-tracking systems to apply statutory entitlements from the start of employment.

A new Fair Work Agency (FWA) will be established, alongside a simplified trade union recognition process, shorter employment tribunal time limits and stronger whistle-blowing and sexual harassment protections.

From October 2026, changes to tipping laws will require fair distribution of tips through payroll in sectors such as hospitality.

These reforms will have a knock-on effect on your payroll system and careful planning is required to stay compliant.

How can you prepare your payroll?

Close coordination between payroll and HR teams is essential, as payroll teams will need to change their policies to ensure accurate pay outcomes.

Employers should start by reviewing employment contracts and payroll policies so that they comply with the new reforms.

Manager training on performance management and record keeping during probation will be critical to reduce potential litigation risks.

Clear communication with employees can allow them to understand the changes to pay, benefits and statutory entitlements and reduce the risk of potential disputes.

Why do your payroll policies and systems need to change?

These reforms will bring additional payroll and compliance implications.

Our team can offer financial and payroll advice to help your business update systems and implement changes efficiently for when the various elements of the Act come into effect.

For expert payroll advice and support, contact our team today.

The Making Tax Digital (MTD) for Income Tax countdown is on and landlords and sole traders who are not prepared may face costly repercussions.

From 6 April 2026, sole traders, landlords and self-employed individuals with a qualifying income over £50,000 will be required to comply with MTD.

In the following year, the qualifying income threshold drops to £30,000, followed in April 2028 with a qualifying income threshold of £20,000.

With the first phase fast approaching, landlords and sole traders must act now and update their systems to stay compliant.

How will MTD affect sole traders and landlords?

Under MTD, the traditional annual Self-Assessment tax return will be replaced with a new system of digital record-keeping, four quarterly submissions during the tax year and a final digital declaration after the year-end.

For sole traders, MTD is a move away from paper records and spreadsheets towards fully digital accounting, so income and expenses will need to be submitted quarterly to HMRC.

Landlords will face similar changes and those with UK or overseas rental income will also need to submit quarterly updates for property income.

Landlords with multiple properties may find that their financial obligations are increasing, so preparing HMRC-compliant recording and reporting systems is crucial.

How to prepare for MTD?

Preparation for MTD starts with assessing your qualifying income.

Reviewing your most recent tax return can help determine your financial position and this should be done immediately.

The next step is moving to MTD-compliant software, as submissions must be made digitally.

Many accounting platforms are designed to simplify record-keeping and quarterly reporting, making it easier to stay compliant.

Sole traders and landlords must start the transition and move away from paper records and basic spreadsheets to keep digital records before it becomes mandatory.

Why early preparation matters

MTD is a move towards real-time financial management and waiting for the first phase to be implemented could leave you facing an unexpected penalty.

Our professional team can take some of the administrative burden off you and prepare and submit quarterly updates on your behalf.

MTD is bringing significant reform to tax filing and staying informed can give you a better understanding of your requirements, reducing the risk of any last-minute errors.

To get ready for MTD for Income Tax, speak to our team today.