21st November 2025 – Hillmans Weekly Update

Welcome to our latest round-up of the latest business and tax news for our clients. Please contact us if you want to talk about how these updates affect you. We are here to support you!

Have a great weekend.

Kind regards,
 
Steve
 
Steven Hillman BSc (Hons) FCA
Chartered Accountant
Tel: 01934 444100
https://www.hillmans.co.uk

FSCS Deposit Protection Limit to Rise to £120,000 from December
The Prudential Regulation Authority (PRA) has confirmed that the Financial Services Compensation Scheme (FSCS) deposit protection limit will increase from £85,000 to £120,000 from the start of December.

The new threshold applies per depositor, per PRA-authorised bank, building society or credit union. The PRA have confirmed that HM Treasury has approved the change.

This is the first change to the limit since 2017 and follows a consultation earlier in the year. The PRA had initially proposed that the limit should rise to £110,000, but feedback provided in the consultation and the latest inflation data prompted a higher final figure.

Temporary High Balances Limit Also Rising
Alongside the core protection limit, the cap for Temporary High Balances (THBs) will increase from £1 million to £1.4 million on 1 December.

THB protection applies to qualifying life events that can temporarily increase a customer’s account balance, such as buying or selling a house or insurance claim payouts.

Implications for Your Business
The increase in limit will be good news if you hold cash reserves in your business to cover working capital, payroll and other running costs.

It is worth noting that the limit continues to be applied ‘per depositor, per PRA-authorised institution’. This means that if you are eligible and hold cash reserves that exceed the deposit protection limit, you could gain further protection by spreading your funds across different authorised institutions.

It is worth checking whether a banking group is operating multiple brands under a single licence. This means you would only receive a single protection limit for the total amounts held across those brands.

Taking a Wider Look at Cash
For many owner-managed businesses, cash reserves naturally rise and fall throughout the year. If you find that your balances regularly build up beyond what the business needs for day-to-day operations, the increase in the FSCS limit could be a useful prompt to review how much cash the business actually needs to hold.

Spreading funds between different banks can increase the level of protection available, but it can also be sensible to take a step back and consider whether those reserves are serving a useful purpose in the business. A simple cash flow review can help identify the amount needed for routine expenses, tax payments and any planned spending over the coming months.

Where cash consistently exceeds this level, you may want to consider:

• Are there investment opportunities for the business that would fit with your business growth plans?
• Would withdrawing funds, such as by dividends, better help you achieve your personal goals?

The right choice for you will depend on your personal and business circumstances, tax considerations and your plans for the business.

If you would like tailored advice or simply assistance in clarifying what level of reserves your business needs, please get in touch. We would be happy to help you!

See: https://www.bankofengland.co.uk/news/2025/november/pra-confirms-fscs-deposit-limit-to-be-increased-to-120000-from-1-december
 
UK Inflation Slows to 3.6% as Energy and Hotel Costs Ease
UK inflation eased to 3.6% in the year to October, down from 3.8% in September, according to the latest figures from the Office for National Statistics (ONS).

Although still above the Bank of England’s 2% target, this is the slowest pace of price rises for four months and comes just before the Chancellor delivers the Autumn Budget.

What is Driving the Latest Change?
The ONS highlighted smaller increases in household energy bills as a key reason for the slowdown. Ofgem raised the energy price cap in October, but the 2% rise was far lower than the 9.6% increase applied this time last year. Hotel prices, which often fall between summer and winter, also dipped more sharply than they did last year.

However, not all categories moved in the right direction. Food inflation rose to 4.9%, from 4.5% in September. Prices increased for items such as bread, meat, fish, vegetables, chocolate and confectionery, although fruit prices fell slightly.

The Food and Drink Federation said the pressures were linked to ingredient and energy costs as well as regulatory requirements, such as packaging taxes and rising National Insurance.

Position Ahead of the Budget
Chancellor Rachel Reeves responded to the figures by saying that one of the main goals of the Budget is to ease cost-of-living pressures. What this will mean in terms of concrete measures we must wait to see.

Prospects for Interest Rates
Although inflation remains above target, the latest figures strengthen expectations of a cut to the Bank of England base rate. Some economists believe this could happen at the next meeting of the Monetary Policy Committee on 18 December 2025.

What This Means for Your Business
Reducing inflation is good news for the economy and increases confidence. You may find your customers becoming more willing to commit to spending again.

If you have clients who have paused projects, re-engaging with them could encourage them to restart work.

At the same time, cost pressures have not disappeared. The ONS reported that the annual cost of raw materials for businesses has continued to increase.

So, keeping an eye on your costs and ways that you can control or reduce them is still key to remaining profitable.

If you would like to discuss how the latest inflation figures or the Autumn Budget may affect your business, please get in touch. We are here to help!
 
Choosing the Right Accounting System for Your Business
For many sole traders and small business owners, reviewing their accounting system only happens when something forces the issue. For instance, many sole traders are currently looking at whether their accounting system meets the requirements for Making Tax Digital for Income Tax.

However, even without a regulatory change, reviewing your accounting systems can yield benefits. The right system can save you time, reduce errors and give you better insight into your business’s finances.

Here are some practical points to consider.

1. Identify Your Needs
Think about what you or your team handle most often. Is it invoicing, logging expenses, monitoring cash flow, or perhaps tracking stock or projects.
You might only need some basic income and expense recording. On the other hand, features like invoice reminders, payment links in invoices, or job costing could be useful to you.

It’s often easier to start by listing your everyday tasks before you look at what software can do.

2. Consider Cost, but Think in Terms of Value
The cheapest option is not always the most effective if it slows you down. A slightly higher monthly fee could be worth it if it saves you work and time.
Ease of use can add a lot of value, too. Simple screens, clear menus and good support can all make day-to-day bookkeeping much less of a chore.

3. Automation and Integrations
Modern software can take care of many repetitive tasks. For instance, importing bank transactions, sending reminders, capturing invoice and receipt details can all be done by software.

If you use e-commerce platforms, job management tools or card payment services, software that can connect to them can save you time by eliminating the need to enter information twice.

4. Planning for Growth
If you expect your business to grow, consider whether the system can grow with you. Some entry-level tools are perfect for start-ups but become limiting once staff, stock or more complex invoicing are involved.

5. Plan for the Switch
Changing accounting systems can be disruptive; however, many platforms offer setup wizards, data import tools and clear guidance that can make the transition easier than you might expect. Choosing to switch at the start of a new financial year can make the process a lot smoother, too.

Choosing the right accounting system is not just about compliance or day-to-day record keeping - it’s an opportunity to make your business run more smoothly and give yourself clearer insight into its financial health.

If you would like help reviewing your current accounting system or recommending options that would suit your business, please feel free to contact us at any time. We would be happy to help you!
 
CMA Launches Major Consumer Protection Drive on Online Pricing
The Competition and Markets Authority (CMA) has announced a number of actions it is taking to improve price transparency and tackle misleading online sales practices. This is the first major use of its new powers under the Digital Markets, Competition and Consumers Act 2024 (DMCCA), which came into force earlier this year.

The CMA has conducted a cross-economy review of more than 400 businesses in 19 sectors. The review highlighted concerns in 14 sectors, particularly around drip pricing and the use of misleading countdown timers.

Focus on online pricing practices
The CMA has opened investigations into eight named businesses due to concerns about a lack of transparency over additional fees, the use of misleading time-limited offers and automatically opting customers into optional charges.

The businesses under investigation are StubHub, viagogo, AA Driving School, BSM Driving School, Gold’s Gym, Wayfair, Appliances Direct and Marks Electrical. At this stage, the CMA has not reached any conclusions as to whether consumer law has been breached.

These investigations are the first to use the CMA’s strengthened consumer enforcement powers. These new powers allow the CMA to determine breaches itself rather than going through the courts. Where appropriate, the CMA can impose fines of up to 10% of global turnover and order compensation be paid to affected consumers.

Wider compliance concerns across the economy
Based on their compliance review, the CMA is also sending advisory letters to 100 businesses across a wide range of consumer-facing industries, including travel, transport, homeware, fitness, event tickets, delivery services, fashion and online voucher providers.

These letters put the recipient businesses on notice to review their pricing and sales practices and bring them into line with the law and the CMA’s guidance.

The CMA has said it will continue to engage with these businesses and may take further enforcement action if problems persist.

New guidance on price transparency
Alongside this enforcement activity, the CMA has published finalised guidance to help businesses understand and comply with the rules on price transparency.

While the DMCCA introduces new obligations, many forms of drip pricing have been prohibited for years under earlier consumer protection legislation.

These include failing to include compulsory charges in the headline price or introducing unavoidable fees only at checkout.

The new guidance aims to clarify expectations around transparent pricing, the presentation of fees, the use of sales claims and other online selling practices.

Next steps
There is no fixed legal deadline for the CMA to conclude its investigations. Cases may lead to formal findings of unlawful conduct, remedies or, in some instances, closure without further action.

Given the scale of the review and the strength of the CMA’s new powers, further enforcement activity seems likely.

If you sell to customers online, it may be worth treating this as an opportune time to review your pricing information to ensure it complies with the new guidance.

To review the price transparency guidance, see: https://www.gov.uk/government/publications/price-transparency-cma209
 
HMRC Reminds Seasonal Sellers to Check Tax Obligations
As the festive season approaches, HM Revenue & Customs (HMRC) is urging anyone who earns money from Christmas crafts, seasonal market stalls, or selling festive items to check whether they need to report their earnings for last year.

HMRC’s “Help for Hustles” campaign highlights the importance of understanding when extra income becomes taxable.

While selling personal belongings from a clear-out generally does not need to be reported, making or selling items for profit - such as handmade decorations, upcycled furniture or running a seasonal market stall - may be subject to tax.

What You Need to Know
Anyone who earned more than £1,000 from side hustles in the 2024-2025 tax year will need to:

• Register for Self Assessment as a sole trader.
• File a tax return.
• Pay any tax due by 31 January 2026.

The £1,000 threshold applies to all trading income combined. For example, someone earning £600 from craft sales and £500 from content creation would need to register, as their total income exceeds the threshold.

If you would like personalised advice on whether you need to file a tax return, please give us a call. We would be happy to help you!
 
Stop! Think Fraud Campaign Launched
The National Cyber Security Centre (NCSC) has launched a campaign to help individuals and small businesses stay secure online.

With the festive season approaching, including the Black Friday sales, the potential for scams increases. For instance, scammers may claim that an offer is only available for a limited time or that products are scarce in order to manipulate people into acting quickly without thinking. Delivery scams are also popular.

Data from the City of London Police suggests that around £11.8 million was lost last year, between 1 November 2024 and 31 January 2025, to online shopping fraud.

How Can You and Your Staff Stay Safe?
The campaign encourages you to take the following four precautions:

1. Check that the shop is legitimate. 
2. Secure your important online accounts, using two-step verification where possible. 
3. Check out and pay securely. 
4. Beware of delivery scams. Check a request is genuine by contacting the organisation directly.

To review the campaign advice in full, see: https://www.ncsc.gov.uk/news/stay-alert-to-holiday-shopping-cyber-scams
 
Renters’ Rights Act: Three-stage implementation plan announced
The government has confirmed how the new Renters’ Rights Act will be phased in, setting out a three-phase approach that runs from May 2026 through to the end of the decade.

Phase 1: Initial reforms from 1 May 2026
The first and most immediate changes will take effect on 1 May 2026. These include the end of Section 21 “no-fault” evictions, meaning landlords will no longer be able to evict tenants without giving a valid reason.

At the same time, if landlords need to get their property back, they will have stronger, legally valid reasons to do so. These include moving in, selling the property, dealing with serious rent arrears or tackling anti-social behaviour.

Tenants will gain other new protections, including the ability to challenge above-market rent increases intended to encourage them to leave. Landlords will also no longer be able to unreasonably refuse requests for pets.

From 1 May 2026, it will become illegal to:

• Increase rent more than once a year.
• Request more than one month’s rent in advance.
• Run rental bidding wars between prospective tenants.
• Discriminate against tenants because they receive benefits or have children.

Councils will be overseeing these new rights. Fines can reach up to £7,000 for breaches, increasing up to £40,000 for repeat or serious offences. Tenants and local authorities will also be able to seek rent repayment orders.

Guidance for landlords and letting agents will be published ahead of these changes, with councils receiving additional funding to help them prepare.

Phase 2: Ombudsman and database
The second phase, beginning in late 2026, focuses on improving oversight and resolving disputes in the private rented sector.

A new Private Landlord Ombudsman will be introduced, offering tenants a free, independent service to help them resolve complaints that have not been addressed by their landlord. This is intended to reduce the need for court action and deliver faster outcomes.

A Private Rented Sector Database will also be launched, requiring all landlords to register themselves and their rented properties. The database will be rolled out in stages across England.

Phase 3: Further quality and safety standards to follow
The final phase will introduce measures aimed at ensuring safe conditions in private rented homes, including the introduction of a Decent Homes Standard.

The government also plans to consult on extending Awaab’s Law to private renting.

The government has already consulted on plans to require that all domestic privately rented properties in England and Wales meet an EPC rating of C or equivalent by 2030, unless an exemption applies. Further details on this will be set out when the government responds to the consultation.

See: https://www.gov.uk/government/news/no-fault-evictions-to-end-by-may-next-year
 
Will Your Business Qualify for the New RHL Multipliers?
Legislation has been passed by Parliament that defines which properties are eligible for the new Retail, Hospitality and Leisure (RHL) business rates multipliers which come into force on 1 April 2026. HM Treasury has also provided guidance to local authorities on how to apply these regulations.

Earlier in the year, the Non-Domestic Rating (Multipliers and Private Schools) Act 2025 laid the legal basis for introducing higher multipliers for the properties of large businesses and lower multipliers for RHL properties. The intention is to help high street RHL businesses that sell to in-person customers.

From April 2026, two lower business rates multipliers for RHL properties will be introduced for rateable values below £500,000.

• A small business RHL multiplier will apply where the rateable value is below £51,000.
• A standard RHL multiplier will apply where the rateable value is between £51,000 and £499,999.

The rates for these multipliers will be confirmed during Budget 2025, which is being held on 26 November 2025.

In a change from the RHL business rates relief that is currently in place, it is intended that there will be no cash cap. This means the RHL multipliers will apply to any property that meets the statutory definition of a RHL property contained in the new regulations.

Broadly speaking, the new definitions will mean that most properties receiving the 40% RHL relief in 2025-26 will qualify for the proposed lower multipliers.

However, local authorities have had discretion in how they have awarded the 40% RHL relief, whereas the new RHL multipliers will only apply where the legal definition is met. This may mean that some properties currently receiving relief could fall outside the new relief measures.

To see whether your RHL business property will qualify for the new RHL multipliers, it is worth reviewing HM Treasury’s guidance.

14th November 2025 – Hillmans Weekly Update

Welcome to our latest round-up of the latest business and tax news for our clients. Please contact us if you want to talk about how these updates affect you. We are here to support you!

Have a great weekend.

Kind regards,
 
Steve
 
Steven Hillman BSc (Hons) FCA
Chartered Accountant
Tel: 01934 444100
https://www.hillmans.co.uk

Reminder: Companies House Identity Verification Becomes Mandatory from 18 November 2025

From 18 November 2025, identity verification with Companies House will begin to be required for all company directors and People with Significant Control (PSCs). This is part of a phased rollout introduced to improve the reliability of information on the UK company register and reduce the risk of economic crime.

When You Need to Verify Your Identity

It’s important to note that 18 November 2025 is not a deadline. It is the start of the requirement. You must complete identity verification before your next relevant filing after that date.

The exact date each person must verify will vary, and Companies House will contact companies directly. Broadly, the requirements are as follows:

Directors
    •    Existing directors must verify their identity as part of their company’s next confirmation statement that falls on or after 18 November 2025.
    •    If you are a director of more than one company, you must verify for each role.
    •    New directors must verify their identity as part of the company incorporation or appointment process.

PSCs (Persons of Significant Control)
    •    If you are both a PSC and a director, you must verify separately for each role.
    •    PSC verification must be completed within 14 days of the confirmation statement date.
    •    If you are a PSC but not a director, you must verify within the first 14 days of your birth month.
    •    For example: if your date of birth is 20 December, your verification window begins on 1 December.
    •    If you become a PSC after 18 November 2025, you must verify within 14 days of being added to the Companies House register.

Future Phases

Companies House has confirmed that identity verification will expand later to include:
    •    Limited partnership roles
    •    Corporate directors
    •    And potentially all individuals involved in filing on behalf of companies

How to Verify Your Identity

There are two ways to verify:

1. Directly with Companies House

Using:
    •    A GOV.UK One Login account
    •    A Companies House account
    •    And a valid form of ID (passport or driving licence)

Once verified, you will receive an 11-character Companies House personal code.
This code is personal to you, not to your company, and can be used across all companies where you hold a role. You will need this code to enable agents (such as accountants, solicitors, and formation agents) to file on your behalf.

2. Through an Authorised Corporate Service Provider (ACSP)

Our firm, Hillmans, is registered as an ACSP and can complete the verification process for you.

This can be useful if:
    •    You prefer us to handle the entire process
    •    You struggle with online verification
    •    You have multiple roles across different companies

A fee applies for this service. If we carry out the verification, your personal code will be sent securely to the email address you choose.

Step‑By‑Step Guidance Available

We’ve prepared a simple walkthrough with screenshots covering:

    •    Creating your Companies House account
    •    Setting up your GOV.UK One Login
    •    Completing identity verification
    •    Retrieving your personal code

You can find the guide here on our website:
🔗 https://hillmans.co.uk/how-to-get-your-companies-house-personal-code

We’re Here to Help

If you need any help verifying your identity or you would like us to carry out the process for you as an ACSP, please get in touch. We’re happy to guide you through every step.

See also:
https://www.gov.uk/government/news/one-million-people-verify-identity-early-ahead-of-companies-house-changes

Budget Speculation: Are Tax Rises Looming?
The Chancellor, Rachel Reeves, gave a surprise ‘pre-Budget’ speech last week that appeared to pave the way for tax rises in the Budget on 26 November 2025.

What did she say?
The Chancellor’s scene setting speech outlined her priorities to cut NHS waiting lists, reduce the national debt, and improve the cost of living.

Quoting world challenges such as the continuing threat of tariffs, persistent inflation, the increasing cost of government borrowing, and pressures on public finances, the Chancellor acknowledged that productivity in the economy is weaker than previously thought.

This all means increasing pressure on revenue for the government.

The Chancellor indicated that her Budget would support businesses in creating jobs, innovating and protecting families from high inflation and interest rates. She further said: “If we are to build the future of Britain together, we will all have to contribute to that effort. Each of us must do our bit …”

This is the clearest indication yet that tax rises are coming for everyone. So, what could this mean for you in the Budget? Let’s explore some of the possibilities.

Changes already due to take effect in 2026 and 2027
There are still some measures announced in Autumn Budget 2024 that have not taken effect yet. These are:

• Capital Gains Tax (CGT): The rate of CGT where Business Asset Disposal Relief (BADR) applies will increase from 14% to 18% from 6 April 2026. 
• Inheritance Tax (IHT): Restrictions on 100% relief for business and agricultural property will take effect from 6 April 2026. Unused pension funds and death benefits will be brought into IHT estates from 6 April 2027.

In addition, the new Making Tax Digital for Income Tax (MTD for IT) becomes mandatory for self-employed individuals and landlords with turnover over £50,000 from 6 April 2026. While not a tax increase, there is an increase in compliance costs to those affected.
 
Predictions for Autumn Budget 2025
Manifesto promises included not increasing National Insurance, income tax or VAT rates. The October 2024 Corporate Tax Roadmap commits to keeping the small profits rate and marginal relief and not increasing the 25% main rate of corporation tax. Enhanced research and development tax reliefs and the £1 million annual investment allowance for plant and machinery capital allowances are also to be kept.

However, the Chancellor’s speech now casts a doubt on these commitments. Here are a few of the possibilities we could see.

• Freeze on income tax thresholds extended: Income tax thresholds and the tax-free allowance are currently frozen until 6 April 2028. This could now be extended to 5 April 2030, bringing more people into tax. 
• Increase to income tax rates: A one or two percentage point increase could be made to income tax rates. To generate sufficient tax revenues, it seems likely that the basic rate of income tax would need to be increased, not just higher rates. 
• National Insurance and partnerships: A current hot topic is the suggestion that the government sees partnerships as receiving a tax break because partnership profits are distributed without having to pay 15% employers’ NI. This might result in the introduction of an additional partnership NI contribution for partners. Current speculation suggests this might be limited to LLPs rather than all types of partnership. 
• Flat rate relief for pension contributions: Pension savings are currently given tax relief based on the saver’s marginal income tax rate. This could be changed so that all savers receive the same flat rate of income tax relief. This would collect more tax from higher earners. 
• Reduce pension income tax-free lump sum: Individuals can often take a tax-free lump sum from their pension when they reach retirement age. Reducing the amount that can be taken tax-free could be one of the options being considered by the Chancellor. 
• Cut Cash ISA saving limits: It was reported earlier in the year that the Chancellor was interested in restricting the amount that can be saved into a cash ISA. Nothing has happened on this so far, however, this could form part of the Budget announcement. 
• Increase the BADR rate further: The CGT Business Asset Disposal Rate is already due to increase to 18% from 6 April 2026. This could be increased further. Another CGT possibility is that the CGT rates could be aligned with income tax rates. This might mean the current 18% rate being increased to 20% and the current 24% rate being increased to as much as 40% or 45%. 
• Cap Principal Residence Relief (PRR): When an individual sells their home they pay no tax, no matter how much they receive, as PRR is unlimited. However, another possible measure could see PRR being capped. 
• Further restrictions to IHT reliefs: Possible measures could include changes to the Potentially Exempt Transfer (PET) regime, reducing or removing taper relief on gifts given three to seven years before the donor’s death, and introducing annual or lifetime limits on exempt giving. 
• VAT: There could be a mixture of good and bad news for VAT. One possibility could be a cut to the 5% VAT rate on household energy. However, privately funded healthcare might perhaps be subject to 20% VAT, like private education.

What should you take away?
Of course, predictions and possibilities of what might happen are speculative. However, the Chancellor’s determination to stick to her fiscal rules that keep the financial markets happy, coupled with the need to generate additional revenue, strongly suggest that there will be some wide-ranging changes in the Budget.

We will keep you updated on the Budget and any changes it brings. If you would like to discuss your personal situation and whether there are any actions you could take before the Budget, please get in touch. We would be happy to help you!

See: https://www.gov.uk/government/speeches/chancellors-scene-setter-speech-ahead-of-budget-2025
 
Free Recruitment Support Available to UK Businesses Through Jobcentre Plus
The Department for Work and Pensions (DWP) has launched a national campaign to offer UK businesses access to no-fee specialist recruitment support through Jobcentre Plus. The service is available to all businesses, regardless of size or sector.

Over the last year, only one in five businesses has used Jobcentre Plus services for support. This may be indicative of a lack of confidence in the service being able to locate suitable candidates.

At the same time, over half of employers in a recent DWP Employer Survey reported difficulties in finding suitable candidates. With the average cost of filling a vacancy estimated by CIPD at £6,125, it could be worth considering trying out the service.
 
Who Can Benefit?
The campaign is particularly focused on sectors with high vacancy rates, including:

• Manufacturing 
• Logistics 
• Retail 
• Hospitality 
• Health and social care 
• Construction 

However, the service is open to all employers, whether they’re recruiting for one role or many.
To find out more and access support, visit the Business.gov.uk website.
 
Skills England launches tools to help businesses upskill for the AI era
A new report from Skills England has indicated that many employers are struggling to keep pace with AI-related changes. Their ‘AI skills for the UK workforce’ report introduces three new tools that could help businesses build confidence and capability in using AI responsibly.

Sector-specific challenges
The report identifies sectors that face particular challenges. For instance:

• In Construction, opportunities such as drone surveying and augmented-reality training are emerging, but low digital literacy remains a barrier. 
• Within the Creative Industries, freelancers and small firms are adopting AI tools for content creation but often without formal training, raising concerns about quality and originality. 
• Advanced Manufacturing is already seeing benefits from automation and predictive maintenance but faces a growing skills gap as its workforce ages.

A consistent theme across all business sectors seems to be uncertainty over what is meant by “AI skills” and what staff need to learn.
 
Three new tools for employers
The three new tools are as follows:

• The AI Skills Framework - identifies the technical, responsible and non-technical skills needed across different job roles and levels. 
• The AI Skills Adoption Pathway Model - shows how businesses typically progress from early awareness to strategic adoption of AI. 
• The Employer AI Adoption Checklist - a practical tool to help businesses assess their AI skills readiness, identify workforce gaps and plan training.

These tools are designed to make AI more accessible to employers, particularly smaller businesses that often lack the dedicated HR or training teams of larger organisations.

Dr Ameen said, “AI is reshaping the world of work across sectors, but without the right skills, too many people and businesses risk being left behind.”

To find out more, the full AI Skills for the UK Workforce report and supporting tools are available through Skills England.

7th November 2025 – Hillmans Weekly Update

Welcome to our latest round-up of the latest business and tax news for our clients. Please contact us if you want to talk about how these updates affect you. We are here to support you!

Have a great weekend.

Kind regards,
 
Steve
 
Steven Hillman BSc (Hons) FCA
Chartered Accountant
Tel: 01934 444100
https://www.hillmans.co.uk

Is It Time to Prepare Your Self-Assessment Tax Return?
HM Revenue and Customs (HMRC) has been reminding taxpayers that there are now fewer than 100 days left to file their tax return and pay any tax due for the 2024-25 tax year.

The online filing deadline applicable to the majority of taxpayers is 31 January 2026.

According to HMRC figures, over 3.5 million people have already filed their return, but with more than 11.5 million people submitting a return last year many are yet to file. HMRC is encouraging an early start to avoid the last-minute rush.

Why file early?
Filing early gives you a clearer picture of how much tax you owe and helps you budget for the payment due by 31 January. If you’re due a refund, you’ll receive it sooner.

Things to be aware of for this year’s return

• Capital Gains Tax (CGT): The CGT rates changed partway through the tax year. This is not automatically calculated on the Self-Assessment tax return. If you sold assets such as shares after 30 October 2024, the change in rate will need to be factored in. 
• High-Income Child Benefit Charge (HICBC): A new digital PAYE service means that if you only complete a tax return to pay this charge, you may no longer need to. Eligible claimants can opt to have the charge collected through their tax code instead. HMRC can de-register you from Self-Assessment if you qualify – either for this tax year or the next, depending on whether you have already submitted your return.
• Winter fuel and heating payments: You do not need to include your Autumn 2025 Winter Fuel Payment (or Pension Age Winter Heating Payment in Scotland) on your 2024-25 return. These payments will be accounted for in your 2025-26 tax return, not due until 31 January 2027. 

Making Tax Digital
Looking ahead, sole traders and landlords with a turnover above £50,000 will need to use MTD for Income Tax from 6 April 2026. This will require quarterly submissions of income and expenses through compatible software.

If you are affected by this change, we recommend making early preparations so that you are ready in good time.

Watch out for scams
As ever, HMRC is warning taxpayers to stay alert to scams, particularly around this time of year. Your HMRC login details should never be shared with anyone. HMRC guidance on spotting and reporting scams can be found on their website.

Getting started
With less than 100 days to go, it’s a good time to make a start. Completing your return early gives peace of mind, allows time to resolve any queries, and helps you plan for your tax payment well before the deadline.

If you would like help with preparing and filing your tax return or with how to use MTD for Income Tax, please get in touch and we would be happy to help you!

See: https://www.gov.uk/government/news/the-countdown-begins-self-assessment-deadline-is-100-days-away
 
Stress Awareness Week: Five Tips on Managing Stress
The International Stress Management Association (ISMAUK), a registered charity, is highlighting International Stress Awareness Week set to take place from 3 to 7 November 2025, with Stress Awareness Day on Wednesday 5 November.

While good stress management applies to all organisations, it can be particularly relevant for small business owners and company directors, who often face the twin pressures of running a business and supporting their teams.

Stress management is vital for your health and your business
Running a business can be rewarding, but it’s also demanding. When stress isn’t effectively managed, it can have detrimental effects on concentration, decision-making and health, for you and your staff, and can impact the success of your business.

Employers also have a legal duty to protect staff from work-related stress. The Health and Safety Executive’s Working Minds campaign provides information and tools that can be helpful for employers in fulfilling this duty.
 
Recognising the signs
The NHS says that stress can cause many different symptoms, affecting how you feel physically, mentally and also how you behave.
For instance, stomach problems, difficulty concentrating, struggling to make decisions and being irritable and snappy can all be symptoms of too much stress. Spotting these indicators early makes it easier to take practical action.

Taking a strategic approach
What are some actions you can take to help with stress? Here are five tips.

1. Talk
The old adage that a problem shared is a problem halved still holds true. A good support network is vital, and taking time for activities and relaxation with family and friends can provide great opportunities to destress and help you see things in a different way.

Providing opportunities for staff to talk in the workplace is also important; however, cultural norms may make directly discussing “stress” or “mental health” difficult to do.

So, you might choose to focus on workload, energy levels or what makes the job easier or harder. For instance, asking someone “How’s your week going?” or “Is there anything getting in the way of your work?” can open a conversation without using language that puts people off.

2. Have some “me time”
Try to set aside regular times each week for time away from work that allows you to do something you enjoy.

Setting goals and challenges - such as a new sport or learning a new skill or language - can give you a chance to switch your attention away from work and refresh your thinking.

3. Time management techniques
Some simple, low-effort time management techniques can help when you’re juggling several priorities.

For instance, some spend the last 10 minutes of each workday writing down what needs to be done the next day. This can help draw a line under the day, allowing you to switch off in the evening and start the next day in a more focused way.

Others might use the “big three” rule. Each morning, they identify the three most important tasks that will help the business move forward. Do these before doing anything else if possible, and fit smaller or routine tasks around them.

The key is to find a few methods that fit naturally into your working style and apply them consistently. Over time, small improvements in how you organise your day can make a noticeable difference to stress levels.

4. Plan ahead
Some sources of stress are unavoidable. There are times when you know that a day or event is going to be stressful. If so, mapping out what’s likely to happen - perhaps a simple checklist or timeline - can increase your sense of control.

You could also plan lighter tasks before or after something you know is going to be stressful. Avoiding back-to-back high-pressure activities where possible and building small recovery periods into the day can all help you to stay composed.

5. Don’t try to change what you cannot change
Focusing on what you can control, rather than what you can’t, can help change how your mind and body respond to pressure.

For instance, when we worry about something that can’t be influenced - a client’s reaction, an unexpected policy change or the weather - our minds keep running, but we achieve nothing.

Focusing only on what’s within your influence encourages you to think practically. When you feel stress building up you might try writing a list of what’s in your control and what’s not. Then work out what you can do about the things that are within your control.

In conclusion
Stress Awareness Week is a timely reminder that managing stress should be an ongoing part of good business practice. Why not pick one thing you could do this week that will help to lower your stress levels?

See: https://isma.org.uk / https://www.nhs.uk/mental-health/feelings-symptoms-behaviours/feelings-and-symptoms/stress/
 
Directors’ Report Requirement to Be Removed
As part of its move to reduce ‘red tape’ and aid business growth, the government has announced plans to remove the requirement for companies to include a directors’ report as part of their annual accounts.

Micro-entities are already exempted from the requirement to include a directors’ report in their accounts; however, it is intended that the requirement will be removed for all companies. It is estimated that this will affect approximately 440,000 companies.

Medium-sized private companies will also be exempted from the requirement to prepare a strategic report as part of their annual report and accounts.

Wholly-owned subsidiaries will also be exempted from preparing a strategic report, provided their disclosures are included in the UK parent company’s annual report and accounts.

Estimates suggest that these changes could save UK businesses in the region of £230 million each year, and legislation to bring about these changes will be introduced as soon as possible.

See: https://www.icaew.com/insights/viewpoints-on-the-news/2025/oct-2025/directors-reports-to-be-scrapped-and-more-companies-exempt-from-strategic-reports
 
ICO Consultation Opens on New Email and Text Marketing Rules for Charities
The Information Commissioner’s Office (ICO) has launched a consultation on how charities can make use of new rules that will allow greater use of electronic marketing in contacting their supporters.

From January 2026, the Data (Use and Access) Act will introduce a new ‘charitable purpose soft opt-in’. This will allow charities to send marketing emails and texts to people who have expressed interest in or offered to support a charity - even if they haven’t specifically ticked a consent box - provided certain conditions are met.

How the new rule will work
The change is intended to make it easier for charities to stay in touch with potential supporters and raise funds, while still protecting individuals’ data rights.
The charitable purpose soft opt-in will not apply to contacts already held in existing databases. Charities must always provide a clear opportunity to opt out - both when contact details are first collected and in every communication sent.

ICO’s consultation
The ICO’s consultation runs until 27 November and invites feedback from charities and others working in the third sector.
Emily Keaney, the ICO’s Deputy Commissioner for Regulatory Policy, said the soft opt-in is intended “to help charities stay connected with the people who want to support them, while still making sure everyone has control over how their data is used.”

Steps charities can take now
Although the new rule won’t apply until 2026, the ICO has provided some tips on what charities can do to prepare.

1. Update your privacy notice - make sure it clearly explains how your charity will use their personal information. 
2. Plan your communications - decide how you will explain the soft opt-in when collecting new contact details, and how you’ll make it clear why someone is receiving marketing messages. 
3. Keep separate contact lists - since you cannot send electronic mail marketing to people whose contact details were collected before the soft opt-in commences, you’ll need to keep separate lists of those who have given their consent and those who will be contacted under the soft opt-in. 
4. Train your team - ensure staff know how to handle queries or complaints about marketing messages.

 
Next steps
Charities interested in shaping how the new rules are applied can respond to the ICO’s consultation.

See: https://ico.org.uk/about-the-ico/media-centre/news-and-blogs/2025/10/consultation-on-new-charitable-purpose-soft-opt-in-rules-to-support-fundraising/
 
Renters’ Rights Act Becomes Law in England
The government’s Renters’ Rights Bill has now become law, following Royal Assent last week. The new Act introduces a wide range of changes for private landlords in England.

The details on how and when these new rules will take effect are still to come, but here is a review of some of the key measures that will be introduced.

End of Section 21 evictions
The most notable change is the abolition of Section 21 ‘no fault’ evictions.

This doesn’t mean that landlords cannot evict tenants, but they will only be able to do so in certain circumstances.

Tenancy structure
The Act will replace most existing tenancy types with a single system of periodic (rolling) tenancies.

This means that if you use fixed 12 or 24-month contracts, they will no longer be possible. Tenants will be able to give two months’ notice at any time, rather than being tied in for a year or longer.

New ombudsman and registration requirements
A Private Rented Sector Ombudsman will be set up to handle complaints from tenants. Membership will be mandatory for landlords, and the ombudsman’s decisions will be binding.

A new Private Rented Sector Database will also be created. This is to help landlords understand their legal obligations and demonstrate compliance. Tenants will be able to use this when deciding to enter a tenancy agreement. Registration on the database may be necessary before being able to use certain grounds for repossession.

Other measures
Further reforms include:

• A ban on rental bidding. Landlords will be required to advertise a fixed rent and cannot accept offers above this. 
• Landlords will not be able to refuse tenants because they have children or receive benefits. 
• Tenants will have strengthened rights to request a pet in the property, which the landlord will have to consider and cannot unreasonably refuse. 
• Application of the Decent Homes Standard and Awaab’s Law to the private sector, which will impact what is expected with the condition of properties and timescales for repairs. 
• Local authority enforcement will be strengthened with the expansion of civil penalties, introducing investigatory powers and requiring local authorities to report on their enforcement activity.

Details on how and when the law will be implemented can be expected over the coming weeks.

See: https://www.gov.uk/government/news/historic-renters-rights-act-becomes-law

31st October 2025 – Hillmans Weekly Update

Welcome to our latest round-up of the latest business and tax news for our clients. Please contact us if you want to talk about how these updates affect you. We are here to support you!

Happy Halloween! 🎃 Have a great weekend.

Kind regards,
 
Steve
 
Steven Hillman BSc (Hons) FCA
Chartered Accountant
Tel: 01934 444100
https://www.hillmans.co.uk

Government borrowing rises in September - what it could mean for businesses ahead of the Budget
Official figures show that UK government borrowing reached £20.2 billion in September - the highest for the month in five years. The figures, released by the Office for National Statistics (ONS), underline the financial pressures facing the Chancellor as preparations continue for next month’s Budget.

Borrowing, which measures the gap between government spending and income from taxes, was £1.6 billion higher than in September last year. The ONS said that although the government raised more through taxes and National Insurance, this was outweighed by higher spending, particularly on debt interest and inflation-linked costs.

Implications for the upcoming Budget
Higher borrowing means there is less room to manoeuvre in November’s budget. The rise in debt interest costs - nearly £10 billion in September alone - reduces the funds available for tax cuts or new spending commitments.

These figures are likely to make the Chancellor’s job more difficult when setting out her Budget plans. The Office for Budget Responsibility will update its forecasts alongside the Budget, setting out how much “headroom” the Chancellor has under her own fiscal rules. Many expect that the chancellor will need to raise taxes to meet those rules.

Analysts at Capital Economics estimate that around £27 billion may need to be raised, with households expected to carry much of that burden.

What might be in the Budget
Chancellor Rachel Reeves has been keen to emphasise that the government remains committed to manifesto promises not to raise the rates on income tax, VAT or National Insurance.

She has also made promises on taking “targeted action to deal with cost of living challenges” in the Budget. One idea suggests that the current 5% rate of VAT charged on energy could be reduced.

This suggests that any tax rises will at least be framed in such a way as to avoid the impression that people are receiving less in their pay packets.
 
Speculation around where tax rises could come from includes:

• Freezing tax thresholds. This is a stealthy way of bringing more people into higher rates of tax and increasing tax yield without being immediately felt by most. 
• Cutting the employee rate of National Insurance, while adding the same amount to income tax. This would have a limited effect on those who are employed, but increase tax collected from pensioners, landlords and the self-employed. 
• Reforming property taxes, such as replacing stamp duty with a property tax, making landlords pay more and removing principal private residence relief. 
• Reducing the tax relief available on ISA and pension saving and the size of the tax-free lump sum that can be withdrawn.

Keep calm and carry on
Of course, the uncertainty that precedes a Budget leads to all kinds of speculation. We will only know what measures will definitely be used when the Budget announcement takes place.

We will keep you updated following Budget day on the measures likely to affect you. If you would like personalised advice on your tax situation, please call us at any time. We would be happy to help you!

See: https://www.bbc.co.uk/news/articles/c8035130918o
 
Bridging Generational Gaps: How to Build a Better Workplace for Everyone
Conversations about Generation Z (those born roughly after 1996) and the workplace tend to generate headlines - perhaps even blaming younger workers for disrupting the traditional norms of office culture.

Generational differences are nothing new, but if differences lead to conflict this can be detrimental both to staff and your business. When differences are managed well, though, they can bring out the strengths of every generation - creating a more innovative, resilient and productive workplace.

What’s happening
Many employers are noticing a shift in attitudes. Younger workers tend to value flexibility, mental health, and meaningful work, while many older workers were shaped by more traditional ideas about presence, hierarchy and progression.

Older workers may view the younger generation as lacking “grit” or commitment, while younger employees might see their more experienced colleagues as resistant to change or too wedded to traditional ways of working.

Many Gen Z entrepreneurs are also bringing fresh values into the way they run their own businesses - building businesses that are tech-savvy, purpose-driven, and often more informal.

What can you do?
In the main, it’s about practical management and good communication. Here are a few ideas:

• Review how you measure contribution. If your business still prioritises time in the office or visibility over measurable output, you may find tension between generations. Shifting the focus to outcomes helps value both experience and fresh ideas. To do that successfully, it’s important to recognise that productivity can look different across roles and stages of career. 
• Balance flexibility with consistency. Expectations around work-life balance and flexibility vary widely. Having a clear policy that sets boundaries while allowing reasonable autonomy will help both those seeking balance and those who value routine and predictability. 
• Create an environment that supports learning. While workers starting on their career are generally looking for progression and purpose, those with more experience benefit from opportunities to refresh their skills, share knowledge and adapt to new technologies. We’re not necessarily talking about training courses. De-emphasising hierarchy in the workplace and finding ways for younger and older workers to team up on projects can provide learning opportunities for everyone. 
• Encourage open, respectful communication. Different generations often prefer different communication styles. Agreeing on how and when to communicate - whether by message, call or face-to-face - helps avoid confusion and keeps everyone connected. 
• Value different work styles and motivations. Some people thrive on rapid change, others on stability. Help staff understand each other’s preferred way of working so that workloads and responsibilities play to everyone’s skills.

The takeaway
Generational differences aren’t a threat - they’re a resource. For your business, blending the energy and digital fluency of younger staff with the experience and resilience of older workers can be a real competitive advantage.
The most effective goal isn’t to preserve a single way of working but to create one that works for your business. That starts with communication, trust, and a willingness to keep learning from each other.
 
Government strengthens regulators’ duty to support business growth
The government has announced a major shake-up in how UK regulators operate, aiming to make them more accountable and more focused on supporting business growth.

Beginning last week, regulators have a stronger growth duty, meaning they’ll be expected to balance their oversight role with helping businesses invest, innovate and expand. The change is designed to ensure regulation remains proportionate and doesn’t hold back economic activity.

A new public dashboard of regulator performance will also be launched. The new GOV.UK site, which will be updated quarterly, will bring together performance data into one place and allow for direct feedback to the government.

Business and Trade Secretary Peter Kyle explained that the aim is to strip back unnecessary rules and pointless paperwork while keeping essential protections in place. He described the stronger growth duty and new transparency measures as part of the government’s wider “Plan for Change” to boost investment and job creation.

For business owners, will these changes mean a more responsive and balanced regulatory environment that’s clearer about helping your business grow? Let’s see.

See: https://www.gov.uk/government/news/growth-placed-at-the-heart-of-regulators-remit-alongside-new-measures-to-boost-scrutiny-and-transparency
 
Nearly 500 employers fined over £10 million for minimum wage breaches
Almost 500 UK employers have been fined a total of £10.2 million after failing to pay the National Minimum Wage correctly, according to the latest government list. Following investigations by HMRC, around 42,000 workers have now received back pay totalling £6 million.

The list of employers includes businesses of all sizes and across a wide range of sectors - from retail and hospitality to childcare and manufacturing. Many are well-known household names, showing that even established employers can get caught out by the rules.

The importance of getting it right
Employers found to be underpaying staff not only have to make good the shortfall but also face financial penalties of up to 200% of the arrears (capped at £20,000 per worker), as well as being publicly named. Employers who deliberately fail to pay the minimum wage may face a potentially unlimited fine.

Niall Mackenzie, Chief Executive of Acas, said that failing to pay the correct minimum wage “can result in grievances and potentially legal action, including costly employment tribunals, as well as being named and shamed.”
 
Common causes of underpayment
Failing to pay the minimum wage correctly isn’t necessarily intentional. For instance, a business can get caught out by making deductions or charges (such as for uniforms or office accommodation) that take pay below the legal minimum, or not accounting for unpaid time spent working, such as while training.

A breach can also occur if an employer fails to update pay rates when they change each April. The current rates that have applied since April 2025 are:

• National Living Wage (21 and over): £12.21.
• Ages 18-20: £10.00.
• Under 18 and apprentices: £7.55.

Getting minimum wage payments right not only avoids penalties but also supports staff morale, retention and reputation - all key to running a successful business.

If you need any help with your payroll and minimum wage payments, please get in touch. We would be happy to help you!

See: https://www.gov.uk/government/news/6-million-repaid-to-workers-as-government-cracks-down-on-employers-underpaying-their-staff
 
£56 million boost for devolved fishing industries aims to strengthen coastal economies
Fishing businesses and coastal communities across the UK are set to benefit from a major new funding package aimed at supporting growth, sustainability and local jobs.

The government has announced a new Fishing and Coastal Growth Fund, which includes £56 million earmarked for Scotland, Wales and Northern Ireland. The funding will be delivered by the devolved governments, allowing investment to be tailored to local priorities and the specific needs of fishing communities.

The Scottish Government will receive £28 million, the Welsh Government £18 million, and the Northern Ireland Executive £10 million - allocations based on the Barnett Formula.

The money will go towards modernising the fishing fleet with new technology and equipment, training the next generation of fishers, and investing in coastal infrastructure to support trade and tourism. The aim is to create a more secure, sustainable and economically successful fishing and aquaculture sector, helping coastal towns and villages to thrive.

The UK government has also said it will work closely with the devolved administrations to ensure the funding supports both local needs and the shared goal of a thriving, sustainable industry.

Alongside the new fund, the government expects to begin talks with the EU this autumn on a new Sanitary and Phytosanitary (SPS) Agreement, which would reduce export barriers for UK seafood businesses and simplify trade with the EU.

For businesses in the fishing and seafood supply chain, this could mean greater investment, more opportunities to upskill staff, and a more competitive export environment - all positive signs for the sector’s long-term growth.

See: https://www.gov.uk/government/news/fishing-and-coastal-growth-fund-will-boost-regional-economies
 
Addressing workplace conflict: insights from a recent Acas roundtable
The Advisory, Conciliation and Arbitration Service (Acas) recently hosted a roundtable with partners in Wales to explore the causes of workplace conflict and how organisations can respond more effectively. Several recurring themes emerged from the discussions.

Participants highlighted generational divides in attitudes towards work, rights and identity, and stressed the importance of strong people management skills for managers.

There was also a recognition that formal procedures often become the default approach, with managers feeling hesitant to handle issues informally.
Economic pressures and their effect on pay negotiations were also noted as a common trigger for conflict.

Supporting managers to manage conflict
The discussions made it clear that managers and leaders need both training and practical experience to handle conflict constructively. Training alone isn’t enough - managers also need time to practise the skills they have learned, especially when it comes to having productive conversations and negotiating effectively.

Key points highlighted during the roundtable included:

• Give managers time to learn and practise. Expecting instant expertise after training is unrealistic. They need opportunities to gain experience and then have the time to reflect on them and become more skilled. 
• Empower managers. A strong, supportive relationship with HR helps managers feel confident to act appropriately and decisively. 
• Lead by example. Senior leaders should be role models of the behaviours they expect from others. 
• Address conflict early. Not all situations can be resolved informally, but recognising early warning signs and taking timely action can prevent escalation. 
• Take a collaborative approach to resolving conflicts. 

Tackle conflict early
Acas report that the earlier they get involved in resolving conflicts, the better.

While recognising that not all workplace conflict can be resolved at an early stage, Joanna Nunn, Interim Chief Conciliator at Acas said, “There are real long-term gains to be made shifting the mindset from adversarial positions and instead refocusing on dialogue and the possibility of positive outcomes for both parties. But this can only take place before positions become entrenched.”

Providing managers with clear guidance and training on handling conflict can help to resolve issues quickly, keeping teams focused and happy while reducing disruption.

See: https://www.acas.org.uk/building-partnerships-to-improve-workplace-relations 

24th October 2025 – Hillmans Weekly Update

Welcome to our latest round-up of the latest business and tax news for our clients. Please contact us if you want to talk about how these updates affect you. We are here to support you!

Have a great weekend.

Kind regards,
 
Steve
 
Steven Hillman BSc (Hons) FCA
Chartered Accountant
Tel: 01934 444100
https://www.hillmans.co.uk

How to Save on Childcare Costs with the Tax-Free Childcare Scheme
Running your own business often means juggling a lot - and for many, that includes childcare. With autumn school breaks rapidly approaching, HMRC is reminding working families that the Tax-Free Childcare scheme can be a good way to make some savings.

What’s on offer
Through the scheme, you can get up to £2,000 a year toward childcare costs for each child up to the age of 11, or up to £4,000 (up to the age of 16) if your child is disabled. The government adds £2 for every £8 you pay into your childcare account - and you can use that money to pay for approved childcare, such as nurseries, wraparound childcare, after-school clubs, or holiday clubs.

Your childcare provider needs to be signed up to the scheme before you can pay them, so you do need to check with them to see that they’re signed up.
It’s completely flexible: you can pay in whenever you like, use it straight away, or leave it in the account until needed. If your plans change, any unused money can be withdrawn.

Who can use it
You don’t need to be on a payroll to qualify - self-employed parents can use the scheme too. Your family may be eligible if:

• Your child is 11 or under (or 16 if they have a disability).
• You and your partner (if you have one) earn, or expect to earn, at least the National Minimum Wage or Living Wage for 16 hours a week on average.
• You each earn less than £100,000 per year.
• You’re not claiming Universal Credit or childcare vouchers. 

How to get started
You can apply online by visiting the Tax-Free Childcare section of GOV.UK. Each child needs their own account, and the government top-up is added to each one separately.

Once your account is open, you’ll need to reconfirm your details every three months to keep the top-up payments coming.

With school holidays around the corner, now’s a good time to check if you’re eligible and set up your account - especially if you’re self-employed or running a small business and need reliable childcare to keep work flowing smoothly.

See: https://www.gov.uk/government/news/570000-families-avoid-the-halloween-chills-by-using-tax-free-childcare

Minister urges businesses to take cyber security seriously
The Security Minister, Dan Jarvis, has urged business leaders to act now to strengthen their cyber resilience, warning that cybercrime is one of the biggest threats facing the UK economy.

Speaking at the launch of the National Cyber Security Centre’s (NCSC) 2025 Annual Review, he reminded businesses that cyber security is no longer just a technical issue - it’s a board-level one.

A growing threat
The numbers tell the story. The NCSC handled more than 200 serious cyber incidents in the past year - more than double the previous year. These are the types of incidents that can disrupt essential services, cause financial damage, or even threaten national security.

Big names like Marks & Spencer, The Co-op and Jaguar Land Rover have all faced attacks this year. But Jarvis was clear that businesses of all sizes can be affected by cyber-attacks.

Tools to help businesses
The good news is that practical help is available. NCSC is expanding its support for businesses of all sizes.

• Cyber Action Toolkit: Designed to help sole traders and small firms take their first steps in protecting their systems and data. 
• Cyber Essentials certification: A recognised badge showing that a business is protected against common threats. For small organisations (under £20m turnover), full certification also includes automatic cyber liability insurance. 
• Early Warning service: Over 13,000 organisations now receive alerts about potential cyber-attacks, giving them valuable time to act. 
• Takedown Service: Has removed over 1.2 million phishing campaigns, with half taken down within an hour. 

Why this matters for business owners
For many businesses, cybersecurity is often treated as a low-priority issue until something goes wrong. Jarvis encouraged that this approach change. He said, “It’s not a case of if you will be the victim of a cyber-attack, it’s about being prepared for when it does happen.”

Beyond any immediate financial cost, reputational damage can last far longer. Customers, suppliers and investors increasingly want to know that the businesses they work with are taking security seriously.

It’s not just an IT issue
Jarvis’s speech revealed that government ministers and security chiefs have written a letter to the CEOs of all companies in the FTSE 100 and FTSE 250, as well as a number of other leading UK firms.

The letter requests that these businesses make cyber risk a Board-level priority and sign up to NCSC’s Early Warning service.

Interestingly, the letter also requests that these companies require Cyber Essentials in their supply chain. This is because supply chain cyber-attacks are increasing, but it appears that only 14% of UK businesses assess the cyber risks posed by their immediate suppliers.

What to do next
If your business hasn’t reviewed its cyber protections recently, now’s the time.

1. Start with the basics: Visit the NCSC website and make use of the Cyber Action Toolkit. 
2. Consider Cyber Essentials certification: In view of the direction being encouraged, you may find that your customers start to expect that you hold this certification. You could also consider whether requiring it of your suppliers would benefit you.

The message for business owners from the Minister’s speech is simple: act now, not later. Cyber security isn’t just an IT issue - it’s part of protecting your livelihood, your team and your reputation.

See: https://www.gov.uk/government/speeches/minister-calls-on-business-leaders-to-act-now-against-cyber-risks
 
New Cyber Toolkit Helps Small Businesses Strengthen Their Defences
Small businesses across the UK are being urged to take simple, practical steps to protect themselves from growing online threats - and a new free toolkit from the National Cyber Security Centre (NCSC) aims to make that much easier.

The Cyber Action Toolkit, launched this week at the NCSC’s Annual Review, offers tailored guidance to help sole traders, micro businesses and small organisations strengthen their cyber security.

NCSC’s latest annual review warns that every organisation with digital assets is a potential target for criminal cyber attackers. NCSC’s CEO, Dr Richard Horne, urged all businesses to ‘act now.’

A growing problem
Recent figures show that 42% of small businesses reported a cyber breach in 2024, while more than a third of micro businesses faced phishing attempts.

Many small firms admit they simply don’t know where to start - often because cyber protection feels complicated or time-consuming.

The NCSC’s new toolkit aims to help with that. It breaks cybersecurity down into simple, achievable steps for businesses, with straightforward actions tailored to their size and needs.

What the new toolkit offers
The Cyber Action Toolkit is free to use and provides:

• Personalised cyber security guidance.
• Step-by-step actions tailored to business size.
• Progress tracking and rewards to recognise each improvement you make.

It’s structured around three levels - Foundation, Improver and Enhanced - so businesses can progress through the levels at their own pace and build their resilience gradually.

As you put in place the basic measures recommended by the toolkit, this can be a good starting point in later working towards Cyber Essentials certification.

Taking the first step
For busy business owners, cybersecurity can easily fall down the to-do list. But the reality is that small steps now can save a lot of time and stress later, and the Toolkit seems to be a useful tool in helping with that.

You can access the Cyber Action Toolkit free through the NCSC website.

See: https://cybertoolkit.service.ncsc.gov.uk
 
Why getting minimum wage calculations right matters more than ever
Matthew Taylor CBE, author of the influential Taylor Review of Modern Working Practices, has been appointed as the first Chair of the new Fair Work Agency – a body that’s set to change how the UK enforces employment rights.

The Agency, which launches in April 2026, will become a single point of contact for workers and employers.

Government figures suggest that 900,000 UK workers have holiday pay withheld each year and nearly 20% of minimum wage workers are underpaid.

The Fair Work Agency will be given stronger powers to investigate and tackle employers. These include workplace inspections, civil penalties for underpayments, and the ability to bring proceedings against an employer on behalf of a worker.

At the same time the Agency is being tasked with providing support to businesses on following employment laws so that employers who want to do the right thing aren’t being undercut by those who don’t.

With the Agency not being launched until next April, now is the time to review how your business calculates pay.

If you’re unsure whether your pay systems are up to date or need help understanding how upcoming changes in employment law might affect your payroll, we would be happy to help you! A quick review now could save a costly investigation later.

See: https://www.gov.uk/government/news/new-agency-chair-appointed-to-crack-down-on-minimum-wage-underpayment-and-worker-exploitation
 
What the CMA’s new powers over Google mean for UK businesses
The Competition and Markets Authority (CMA) has confirmed that Google has been designated with strategic market status (SMS) for its general search and search advertising services - marking a major moment in how the UK regulates big tech.

This follows a detailed investigation and consultation that confirmed that Google has substantial and entrenched market power in general search and search advertising. It appears that more than 90% of searches in the UK take place on Google’s platform.

The new designation doesn’t accuse Google of any wrongdoing, nor does it introduce immediate changes. But it gives the CMA the power to step in with targeted, proportionate interventions to ensure that general search services are open to effective competition. It also means they can make sure that businesses that rely on Google can be confident they are being treated fairly.

The move is part of the UK’s new digital markets competition regime, which came into force at the start of 2025.

For small and medium-sized businesses, the potential benefits are significant. Over time, we may see fairer advertising pricing, more transparency in how search results and ad placements are managed, and fewer barriers for newer platforms and services trying to compete.

Nothing changes immediately, but consultations on possible interventions are expected later this year. It’s a space worth watching - especially for businesses that depend heavily on Google Ads or organic search visibility.

See: https://www.gov.uk/government/news/cma-confirms-google-has-strategic-market-status-in-search-services
 
New funding announced to help UK communities showcase local traditions
A new £1 million “Best of British” fund has been launched by Airbnb, supported by VisitBritain, to help communities and small tourism businesses turn local customs and traditions into memorable visitor experiences.

The fund, which will offer grants of up to £100,000, aims to help local businesses develop experiences that celebrate Britain’s culture, heritage and creativity - from centuries-old customs like maypole dancing and cheese rolling, to regional food, music and arts events.

The initiative follows research showing that, while many holidaymakers are keen to find authentic local experiences, half of UK adults have never taken part in a traditional British event. There’s also a clear appetite for change - 61% of people said they would be more likely to book a UK break “off the beaten track” if these traditions were better promoted.

VisitBritain’s Chief Executive, Patricia Yates, said, “We encourage all eligible tourism businesses and organisations to apply to the fund.

The scheme will award funding in four categories: Nature & Outdoors, Food & Dining, Music & Arts, and Culture & Heritage. Applications are open until 23 November 2025, with funding to be distributed next year.

For small tourism operators, community groups or heritage sites, this could be an opportunity to secure investment, attract more visitors, and strengthen local identity - all while contributing to the growth of sustainable, experience-led tourism across the UK.

For details and to apply, see: https://www.airbnb.co.uk/e/bestofbritishfund
 
CMA Publishes Review and Proposals for the Vet Industry
The Competition and Markets Authority (CMA) has published proposals to overhaul how the veterinary market works. While this review focuses on vet businesses, its findings provide some useful insights for businesses of all types - particularly around transparency, communication, and customer confidence.

What’s happening
The CMA’s investigation found that many pet owners struggle to understand what they’re paying for when they visit the vet. Prices are often unclear, comparisons are difficult, and complaints can be hard to make when things go wrong.

The market has also changed dramatically in recent years. Independent practices have been bought by larger corporate groups, and yet many clients don’t realise who actually owns their local surgery. Between 2016 and 2023, average vet prices rose by more than 60% - well above inflation - and in some cases, prices increased faster after businesses were taken over by bigger groups.

The CMA concluded that the current regulatory system doesn’t keep up with how the sector now operates. It regulates individual professionals, but not the businesses behind them.

The proposed changes
To address these issues, the CMA has suggested a wide-ranging package of 21 measures. The proposals include:

• Requiring vet businesses to make ownership clearer and to be more open about their services and fees. A price cap of £16 on prescriptions is also proposed. 
• Requiring vets to explain where clients might find cheaper medicines and to provide prescriptions automatically, with a cap on what practices can charge for issuing them. 
• Providing clear price information when pet owners are choosing a treatment, putting estimates of prices for treatments over £500 in writing and providing itemised bills. 
• Making it easier for customers to compare local options through an improved “Find a Vet” website that will include price information. 
• Modernising the regulatory framework to cover veterinary businesses, not just individual vets, to ensure proper standards and fair handling of complaints.

The CMA’s consultation runs until 12 November 2025, with their final decision expected by March 2026. They are encouraging vet businesses to carry on and make changes that would benefit their customers in the meantime.
 
What it means for other business owners
Even if you’re not in the pet care world, there are some good lessons here.

The CMA’s proposals underline how crucial transparency and clear communication have become in building client trust.

Customers increasingly expect to understand how a service is structured, who owns the business, and what they can expect to pay.

The CMA’s final decision is due in early 2026, but the message for business owners is already clear: transparency builds trust, and trust sustains long-term client relationships.

See: https://www.gov.uk/government/news/major-reforms-would-require-vet-businesses-to-make-fundamental-changes-to-the-way-they-support-pet-owners 

17th October 2025 – Hillmans Weekly Update

Welcome to our latest round-up of the latest business and tax news for our clients. Please contact us if you want to talk about how these updates affect you. We are here to support you!

Have a great weekend.

Kind regards,
 
Steve
 
Steven Hillman BSc (Hons) FCA
Chartered Accountant
Tel: 01934 444100
https://www.hillmans.co.uk

Why Thinking Like a CFO Can Help You Shape Your Business
For many small and medium-sized business owners, bookkeeping, payroll and VAT returns are seen as a necessary part of their routine. These tasks are essential, but in terms of shaping your business, they can only tell you what has already happened.

It can give you a real advantage if you also spend some time thinking like a strategic Chief Financial Officer (CFO). That means using your financial data to plan and forecast so that you make smarter decisions for your business.

Bookkeepers record history, CFO thinking shapes the future
A bookkeeper’s job is to make sure that the numbers are complete and accurate, but a CFO - or a business owner thinking like one - takes those numbers and asks questions like:

• Which customers or products generate the most profit?
• How much cash do we really need in the next six months?
• Where should we invest resources for maximum impact?

Adopting this kind of mindset can transform how you run your business. The good news is that it’s not that difficult to develop some core skills that will help you to do this.

Core skills every business owner can learn

• Financial Literacy: Understand P&Ls, balance sheets and cash flows. These aren’t just for accountants; they can be your roadmap for understanding the financial performance of your business.
• Forecasting and Budgeting: Forecast what your business income is likely to be, plan for expenses and prepare for seasonal variations. 
• Key Metrics: Track metrics that matter to your business - cash flow, margins, costs to acquire customers - so that you can make decisions based on data, not just gut feel. 
• Risk Awareness: Identify risks to your finances early on, whether it’s a slow-paying customer or an investment that’s costing too much.

Just picking one of these areas and making a small improvement can pay dividends.

Start small, think big
You don’t need fancy software or a finance degree. You could begin with:

• Weekly checks on your cash flow.
• Reviewing profit margins per product or service.
• Setting simple financial goals for the quarter.

Gradually, these habits build the foundation of strategic financial thinking allowing you run your business more confidently and proactively.

The bottom line
Treating finance as a back-office chore keeps you in the dark. Thinking like a CFO - tracking the right numbers, asking the right questions, and planning ahead – can give you control, clarity, and confidence.

Bringing a CFO’s mindset into your business doesn’t mean you need to do it all alone. Sometimes an outside perspective can make the numbers clearer and the decisions easier. That’s where we can help. If you’d like a sounding board to help you step back, see the bigger picture, and plan with confidence, we would be happy to help you!
 
Weekly Cash Flow Checks: Stay Ahead of Surprises
Cash flow is the lifeblood of any business. Without it, even profitable businesses can run into trouble. Yet many business owners, and even some finance teams, treat cash flow as a monthly or quarterly review item. That’s a mistake.

A weekly cash flow check is a simple, powerful habit that keeps you informed, proactive and in control. It’s a simple routine that will help you to keep your business financially healthy, spot opportunities early, and gain confidence in every decision.

What can weekly checks do for you?
Weekly cash flow checks can help you to:

• Avoid surprises. When you review your cash inflows and outflows weekly, you’ll spot timing gaps, slow-paying clients, or unexpected expenses before they become urgent. 
• Plan smarter. Being able to see what’s happening to cash will help you make better decisions and avoid problems. For instance, should you delay a payment, push harder on collections, or hold back on spending? 
• Spot opportunities early: Regularly reviewing cash flow can reveal trends and openings you might otherwise miss, such as funds that are available to grow the business or potential savings on expenses.

 
What are the core steps for a weekly check on cash flow?
Hopefully, you’re convinced of the benefits, but how do you do it? Here are five steps to a weekly check on cash flow.

STEP 1: Update Cash Position
Start by reviewing your bank balances and reconciling them with any outstanding invoices and bills.

You’ll need to make sure your accounting data is accurate and up-to-date, but this should help you know exactly how much cash is available.

STEP 2: Project the Next 2-4 Weeks
List out everything you expect to receive and everything you expect to pay out over the next 2-4 weeks.

This will help you to see where potential shortfalls could come, or where you might have an opportunity.

STEP 3: Compare Forecast to Reality
Look back at last week’s projections and notice how they differed from what happened in reality. Make sure you know the reason “why” behind differences. Was it a late payment? Were there unexpected expenses? Or did a sale you were expecting not come off?

As you do this, you’ll get better at estimating what’s likely to happen in future. For instance, you might tend to be too optimistic about when customers will pay you.

STEP 4: Identify Action Items
Based on what you’ve learned, you should be able to list out some actions that can be taken over the coming week.

Don’t necessarily try and list everything possible. You only have a week before the next review. Make sure that you flag the most critical issues so that you can make a meaningful adjustment.

You might decide to set a program of calls to customers to chase collections, defer non-critical expenses, or adjust staffing plans.

STEP 5: Document and Track Trends
Keep a simple log of your weekly checks. Over time, patterns can emerge that will help you in your budgeting, forecasting and decision making.
Tips

• A simple spreadsheet with columns for inflows, outflows, net cash and comments can be a good start and make it easier to collect and record the information you need. 
• Many banking apps can be set to automatically notify you if balances drop below a preset threshold. 
• Consistency is key, so you’ll want to schedule a fixed day each week for this review. Mark it in your calendar and make it non-negotiable.

Bottom line
Weekly cash flow checks can transform your financial management from reactive to proactive. It can mean peace of mind and smarter decisions, and give you an insight into your business that goes way beyond what day-to-day bookkeeping allows.

If you would like assistance in making a cash flow check part of your weekly routine, please get in touch. We would be happy to help you!
 
Striking Off vs Winding Up: What’s the Difference for Your Company?
The Insolvency Service has reported on an investigation it made into a company that was serving as a front to enable unlicensed insolvency activities previously carried out by another firm.

The investigation resulted in the Insolvency Service winding up the company in the public interest. The case serves as a reminder that only properly licensed insolvency practitioners can act as a liquidator or administrator for a company.

However, if you’ve reached the point where your company has run its course and you want to close it down, does that mean your only option is to formally wind it up using a licensed insolvency practitioner?

No. Another option open to many companies is to have the company ‘struck off.’

Let’s explore the differences between striking off a company and winding it up, and in what circumstances you might choose one over the other.

What is striking off?
Striking off, often known as ‘dissolution,’ is the simpler and usually cheaper way to close a company. Basically, you apply to Companies House (using form DS01) to have the company removed from the register. Once that happens, the company no longer legally exists.

It’s typically used when the business is no longer trading, there are no debts outstanding, and all assets (like cash in the bank or equipment) have been distributed to shareholders.

What is winding up?
Winding up (or “liquidation”) is a more formal process. A licensed insolvency practitioner is appointed to sell off the company’s assets, settle debts, and distribute anything left over to shareholders. Once everything is complete, the company is struck off the register.

It’s typically used when:

• The company cannot pay its debts (insolvent liquidation). 
• The directors or shareholders want a formal, orderly closure, even if the company is solvent (members’ voluntary liquidation). 
• There are complex affairs that need professional handling.

Key differences at a glance

• Cost: Striking off is inexpensive (a small Companies House fee), while winding up involves professional fees for the liquidator. 
• Debts: Striking off is only an option if debts are cleared. If creditors are owed money, they can object and force the company into liquidation instead.
  
• Control: Striking off is handled directly by directors, whereas winding up requires external oversight. 
• Risk: If directors strike off a company without properly settling debts or assets, creditors can restore the company to the register and pursue them. Winding up offers more protection.

Why choose one over the other?
If your business is small, debt-free, and you just want to wrap things up simply, striking off is often a good option. It’s also common for dormant companies or businesses that never really got off the ground.

On the other hand, if your company is insolvent, if you want legal certainty that everything has been settled properly, or if you’re dealing with significant assets or liabilities, then the formal winding up process is better.

Final thought
Both routes end with the company being removed from the register, but the right choice depends on your company’s financial position and how much formality is needed.

To get personalised advice on the right option for your company, please give us a call. We would be happy to help you!

See: https://www.gov.uk/government/news/manchester-company-used-as-front-for-unlicensed-insolvency-activities-is-shut-down
 
Why “Staff Welfare” Should Feature in Your Incident Response Plan
Cyber incidents, data breaches and operational disruptions don’t just affect systems - they affect people.

The National Cyber Security Centre (NCSC) has published guidance called “Putting staff welfare at the heart of incident response” to help organisations consider the impact of a cyber incident on the people involved. While the guidance has been available for some time, the increasing prevalence of cyberattacks continues to make it timely.

When things go wrong - whether it’s a cyberattack, system failure or security breach - employees may feel stress, uncertainty, fatigue, guilt, or anxiety. The NCSC’s view is that if welfare is overlooked, it actually undermines the resilience of the whole response effort. A team that’s burnt out or demoralised is less able to think clearly, act decisively, or recover well.

What the NCSC recommends
The guidance lays out five core recommendations for making sure that staff welfare is considered:

• Include all staff in the incident response plan: When planning how you will respond to an incident, identify the staff that will be affected by it. Consider what the potential stresses might be. For instance, what if key staff are absent? Can you call on staff to handle incidents outside normal working hours? Planning can reduce unnecessary stress if an incident happens. 
• Build a culture where staff feel safe to speak up: In a stressful incident, people cope with it differently. The guidance encourages a positive, secure culture where staff will feel able to speak up if they are feeling overwhelmed, burnt out, or need help, or if they spot worrying signs in their colleagues. This will help you to handle a problem before it becomes too serious. 
• Plan your internal communications: During a live incident, people want clarity. Keep everyone – including staff that are not directly involved – informed about what’s happening. 
• Be conscious of staff concerns: Staff are likely to worry about how the incident will impact their own livelihoods, whether because their personal information has been stolen or they will lose their job. Clearly communicating how the business plans to get through the incident can help people focus on what they need to do rather than worrying. 
• Practise your response: Practice can help your staff feel better prepared. NCSC offers a free Exercise in a Box that can be used for this purpose.

If you have an incident response plan (or are planning to build one), it’s worth reviewing it through a welfare lens by using NCSC’s guidance.

To review the guidance, see: https://www.ncsc.gov.uk/guidance/putting-staff-welfare-at-the-heart-of-incident-response
 
Charity Commission Warns on Key Risks for Charities
A new “Charity Sector Risk Assessment” recently published by the Charity Commission identifies some of the serious risks charities in England and Wales are facing.

The report draws on data from annual returns, serious incident reports and casework. It notes several pressures that are making it harder for many charities.

What the risk assessment found
Some of the headline issues include:

• Rising operating deficits: In the 2023 Annual Return, 22.5% of charities reported a deficit (i.e. spending more than they bring in), up from 20% in 2022. 
• Increasing demands vs costs: Many charities are seeing more demand for their services, while costs are rising and inflation is eating away at the value of their funding. 
• Use of reserves: Having a deficit doesn’t mean a charity is insolvent. However, many charities are relying on their reserves to cover the gap between income and expenditure. Overuse of reserves can quickly leave little safety net. 
• Risks to public trust: Though relatively rare, misuse of charity property, unauthorised payments, false claims for Gift Aid, or setting up charities for private benefit were flagged as significant because of the damaging effect even isolated incidents can have on public trust. 
• Other concerns: Governance, safeguarding, fraud, cyber threats, and external pressures such as geopolitical instability are also in the mix.

What should trustees do?
The Charity Commission have included some guidance for trustees in the report. The importance of careful forecasting and planning, and being able to respond quickly to any early warning signs, is emphasised.

The Charity Commission has a range of guidance to help trustees fulfil their responsibilities around financial stewardship, and it is planned to promote these further in a new awareness campaign this autumn.

If you would like personalised assistance with your charity, please get in touch. We would be happy to help you!

The full report can be read here: https://www.gov.uk/government/publications/charity-sector-risk-assessment-2025/charity-sector-risk-assessment-2025