28th March 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

Spring Statement: How is your business affected?
The Chancellor of the Exchequer, Rachel Reeves, delivered her Spring Statement last week in which she outlined the government’s economic plans, including spending decisions, tax policies and efforts to boost growth while managing public finances.

What did the statement tell us about public finances and the economy?
The Statement came on the back of the latest forecasts prepared by the Office for Budget Responsibility (OBR). The forecasts showed a more challenging outlook than was the case last autumn. The OBR cited falls in business and consumer confidence, rising European energy costs, increased government borrowing costs and global uncertainties from issues such as the war in Ukraine and trade tariffs.

As a result, the OBR have downgraded their forecast of GDP growth to 1% for this year. Last autumn they predicted growth of 2%, so this is a significant adjustment in their expectations. However, their projections of growth in the next four years have been upgraded, suggesting that they see the long-term more positively.

The OBR have forecast inflation to average 3.2% this year, up from 2.6% in their previous estimate. They predict that inflation will fall to 2.1% in 2026 and 2% in 2027.

The forecasts also showed that without intervention, public finances would fall short of the targets set at the Autumn Budget.

What has the chancellor done about it?
Much has been made in recent weeks of the Chancellor’s self-imposed stability and investment rules, and whether she will be able to maintain them in the face of the afore-mentioned challenges.

However, the Spring Statement confirmed the Chancellor’s commitment to the rules.  Governments often use these fiscal rules to provide credibility to financial markets.

This decision meant there was pressure on the Chancellor to either raise taxes or reduce spending to cover the forecast shortfall.
In good news for businesses, the Chancellor made no direct increases to taxes. She confirmed her intention to have only one major fiscal event a year and so further tax changes will wait until the 2025 Autumn Budget.
 
Instead, the Statement outlines a number of plans to reduce public spending, including welfare reforms, and reduced day-to-day spending in government departments. In addition, it is clear the Chancellor has adopted a policy of growing the economy and is looking at ways to promote that, including by supporting increased homebuilding activity. Economic growth is aimed at ‘putting more money in people’s pockets’, but it also indirectly boosts the revenues the government receives.

The OBR have confirmed that the policies outlined in the Spring Statement largely restore the public finance targets set last Autumn.

Will there be any effects on my business from policies announced in the Statement?
Here’s some quick highlights of measures that may affect your business.

Making Tax Digital
The Spring Statement confirmed that Making Tax Digital for Income Tax (MTD for IT) will be further extended to bring in sole traders and property landlords with income of £20,000 or more.

Read our separate article on MTD for IT to see how and when your business might be affected.

Business rates reform
The government has been consulting on longer-term measures to support high street businesses. The Spring Statement confirmed that an interim report on the future of the business rates system will be published in the summer. Further policy detail will follow in the autumn.

Additional clarity on R&D reliefs
Due to the complexity of the rules around R&D reliefs, many companies do not know at the point of making an R&D investment whether the costs will qualify for R&D relief. This can lead to no claim being made, or a claim being made that doesn’t qualify.

HMRC already offer voluntary advance assurances to businesses to help them have more certainty about their claim. However, this service is not commonly used.

The government is consulting on widening the use of ‘advance clearances’ to try and make them more useful and reduce errors and fraud. One aspect being considered is whether to make assurances mandatory in certain areas – particularly those where HMRC feels the risk of an incorrect claim is high.

The consultation also considers whether there should be a minimum expenditure threshold before R&D relief can be claimed. In the past, a £25,000 threshold has been used.

Phoenixism to be tackled
‘Phoenixism’ is where company directors go insolvent to evade tax and write off debts owed to others, and then start a new business.

HMRC, Companies House and the Insolvency Service will be delivering a joint plan to better tackle those abusing the insolvency regime. This will include making more directors personally liable for the taxes of their company and increasing the number of enforcement sanctions.

One aspect that could affect newly formed companies is that HMRC may ask for an upfront payment of tax as security.

Final thought
Some may have hoped the Spring Statement would bring some relief from the Employers NI changes due to go into effect in April, however the Spring Statement mainly focused on government policies related to public, welfare and defence spending. Announcement of any further tax changes will now wait until the 2025 Autumn Budget.

If you are concerned about how any aspect of the Spring Statement may affect you, please get in touch with us. We would be happy to provide you with personalised advice.
 
Making Tax Digital for Income Tax regime extended to smaller businesses
The Spring Statement announced that Making Tax Digital for Income Tax (MTD for IT) regime will be further extended to smaller businesses.
Read on to see how and when your business might be affected.

What is MTD for IT?
Making Tax Digital for Income Tax (MTD for IT) is a government initiative that requires self-employed individuals and landlords with income over a certain limit to keep digital records and submit quarterly tax updates to HM Revenue and Customs (HMRC) using compatible software.

Who does MTD for IT apply to?
These rules are mandatory and come into effect from 6 April 2026 for sole traders and property landlords who generated trade and rental income of more than £50,000 in the 2024/25 tax year.

This income threshold will then drop so that sole traders and property landlords with income of more than £30,000 in the 2025/26 tax year will be brought into MTD for IT from 6 April 2027.

The Spring Statement has now confirmed that this threshold will be reduced further so that sole traders and property landlords with income over £20,000 in 2026/27 will have to comply with the rules from 6 April 2028.

MTD for IT will also affect how tax returns are submitted
It has also now been confirmed that if you are required to use MTD for IT, your end-of-year tax return must also be submitted using MTD-compatible software. It won’t be possible to use a free HMRC online service.

What can you do?
This may be a big adjustment in the way you keep your accounting records. Please feel free to get in touch if so. We would be happy to provide advice, recommendations and training, if needed, so that you can meet this new requirement with the minimum hassle and stress.
 
Could Embracing the Great Outdoors Add to Your Business Success?
With the Easter holidays fast approaching, children and their families in Cornwall are being encouraged to embrace the great outdoors through Wild Wellbeing workshops. Organised by Natural England in collaboration with the NHS Cornwall Mental Health Support Team, Cornwall Wildlife Trust, and the National Trust, these workshops are designed to promote mental wellbeing by fostering a deeper connection with nature.

This initiative aligns with growing research showing that time spent in nature can have profound effects on mental and physical health. But while these workshops are targeted at children and their families, the benefits of nature are just as relevant for business owners.

The Business Benefits of Being in Nature
Running a business can be stressful, with long hours, financial pressures, and the ever-present demands of managing employees and customers.

However, incorporating nature into your daily routine and business practices can have a transformative impact on your wellbeing and productivity. Here’s
how:

1. Boosts Mental Clarity and Creativity: There are studies that indicate that spending time in nature can help improve cognitive function and creativity. A walk in a green space could help clear your mind, allowing you to approach business challenges with fresh perspectives and innovative solutions. 
2. Reduces Stress and Enhances Wellbeing: Studies have also found that being in nature seems to help lower cortisol levels, the hormone associated with stress. Whether it’s a short break outside or a weekend retreat in the countryside, finding a way to give yourself regular exposure to green spaces could help you manage stress more effectively. 
3. Encourages Mindful Leadership: The NHS Five Ways to Wellbeing initiative—Connect, Take Notice, Be Active, Keep Learning, and Give—aligns well with principles of effective business leadership. Taking notice of your surroundings, practicing gratitude, and fostering meaningful connections with colleagues can lead to a more positive and productive work environment.

How Business Owners Can Incorporate Nature Into Their Routine
If you’re looking to integrate the benefits of nature into your business lifestyle, here are a few practical ideas:

• Outdoor Meetings: Instead of holding every meeting in a boardroom, take a walking meeting in a nearby park. Fresh air and movement can lead to more engaged discussions and creative problem-solving. 
• Workplace Green Spaces: If possible, create a green space within your office environment—whether it’s indoor plants, a small garden, or an outdoor seating area. 
• Encourage Outdoor Breaks: Encourage employees (and yourself) to step outside for breaks, even if it’s just for a few minutes to reset and recharge. 
• Team Retreats in Nature: Consider organising team-building activities in natural settings, such as hiking trips, wellness retreats, or conservation volunteering days. 
• Flexible Working for Outdoor Time: If you have the flexibility, schedule work-from-home days where you can work in a garden or take advantage of natural surroundings.

A Natural Path to Business Success
Embracing nature isn’t just about personal wellbeing—it’s also about fostering a positive and sustainable business culture. By making small but intentional changes, you can enhance your own productivity and create a healthier, happier workplace for your team.

So, as Cornwall’s children head outdoors to connect with nature in the holidays, why not take inspiration and explore how the natural world can support your business journey?
 
Lessons for Business Owners from Ant Middleton’s Director Ban
The recent disqualification of television personality Ant Middleton and his wife, Emilie Middleton, as company directors provides valuable lessons for business owners. Their company, Sway and Starting Limited, failed to pay over £1 million in taxes, despite receiving more than £4.5 million in income. The company eventually went into liquidation, with a significant overdrawn director’s loan account.

This case highlights key financial and legal responsibilities that business owners should keep in mind to avoid similar issues.
 
1. The Importance of Paying Taxes on Time
A key issue in this case was the failure to pay VAT and corporation tax, despite the company having sufficient income. It probably goes without saying that meeting tax obligations is an essential part of running a business, and as this case shows, failing to do so can lead to penalties and restrictions on future directorships.

Lesson: Ensure that tax liabilities are calculated correctly and paid on time. Working with a qualified accountant or tax advisor can help keep your business compliant.

2. Manage Director’s Loans Responsibly
The company’s financial difficulties were compounded by a substantial director’s loan account that added to the financial strain of the business.
Lesson: If you take money out of your business as a director’s loan, ensure that the amount does not put the business under financial strain and that it is properly recorded, repaid in a timely manner and is in line with legal and tax requirements.

3. Understanding Director Responsibilities
As directors, Ant and Emilie Middleton had a duty to ensure the company met its financial obligations. Their disqualification highlights the importance of understanding and fulfilling these responsibilities.

Lesson: Directors should be aware of their legal obligations and ensure they act in the best interest of the company. This isn’t something you have to tackle on your own. Professional advice and training from firms such as ours can help in navigating these duties effectively.

4. The Importance of Sound Financial Management
The company had strong revenue figures, but it appears that the finances were mismanaged. This can happen even unintentionally in a business where there’s a lack of information or discussion about the finances. Taking proactive steps to manage business finances effectively can help avoid difficulties in the future.

Lesson: As a director, you need to make sure that detailed financial records are kept. Regularly reviewing financial reports will help you to see how the business’ finances are doing and spend funds responsibly. Establishing strong financial controls so that you don’t overspend can support long-term success.

Final Thoughts
This situation serves as a reminder of the importance of financial responsibility and regulatory compliance in business. By maintaining good financial practices, meeting tax obligations, and understanding director responsibilities, business owners can help ensure the smooth running of their companies.

If you need any help with your responsibilities as a director, or would like assistance with a financial system that provides you with the information you need to better manage your business, please get in touch. We would be happy to help you!

See: https://www.gov.uk/government/news/television-personality-ant-middleton-banned-as-company-director-over-unpaid-taxes
 
£2 billion Grant Funding for 18,000 New Social and Affordable Homes
Construction sector businesses welcomed the announcement made by the Chancellor and Deputy Prime Minister that the government will be making a £2 billion investment for the building of 18,000 new social and affordable homes.

Sites available for development in Manchester and Liverpool may be the first to benefit from the funding, the majority of which will be spent in 2026/27. Projects being helped by the funding will need to have started by March 2027 and finish by June 2029.

The investment is an initial step ahead of more long-term investment that is currently being planned. The government has said they will set out the full funding for 2026/27 and beyond at the Spending Review later in the year.

See: https://www.gov.uk/government/news/2-billion-new-investment-to-support-biggest-boost-in-social-and-affordable-housebuilding-in-a-generation
 
£20 million Investment in Community Housing
The government has announced a £20 million package that will help community land trusts, housing cooperatives and other community groups to build over 2,500 new homes in the next 10 years.

Some advantages of community-led housing projects include having local people locate and design new homes that meet the specific needs of their local area. It is also possible for community groups to access land and be given planning permission in situations where speculative developments cannot.

The investment is aimed at helping achieve the government’s wider homebuilding plans and is being provided at a scale that has not been done before. The funding should help community groups more easily access the housebuilding capital they need for projects.

Community-led housing can deliver much-needed affordable housing in their area and is used more widely in other countries in Europe. It is thought that this could be an under-utilised source of building affordable homes for communities.

The £20 million will be invested in a social finance fund that will be run by Resonance Limited, a social finance company that has experience in supporting the delivery of community-led housing. They will use the investment to attract up to £30 million in match funding from the private sector, local authorities and combined mayoral authorities. It is expected that Resonance will begin making direct investments in schemes over the next few weeks.

Housing and Planning Minister, Matthew Pennycook said: “This investment will help community-based organisations overcome barriers to housing delivery and will support the growth of the community-led housing sector.”

See: https://www.gov.uk/government/news/government-paves-the-way-for-local-people-to-build-more-homes
 
UK Export Finance Hosts Event to Boost Women-Led Businesses in International Trade
Over 100 female entrepreneurs, banking representatives, and government officials gathered in Leeds last week for an event focused on breaking down financial barriers for women-led businesses.

Hosted by UK Export Finance (UKEF) and with speakers from Female Founder Finance and the Invest in Women Taskforce, the event celebrated the success of British businesswomen while exploring ways to increase access to finance and international trade opportunities. 

UKEF, the government’s export credit agency, provided over £570 million in financing for small businesses last year. However, it is estimated that the UK economy would grow by around a quarter of a trillion pounds if women received more investment opportunities. As a result, UKEF is aiming to increase support for women-led firms as part of its business plan. 

Gareth Thomas, Minister for Exports, emphasised the government's commitment to improving access to finance for female entrepreneurs, highlighting UKEF’s new partnership with Female Founder Finance. The collaboration aims to streamline financing referrals, reducing missed opportunities for women owners. 

Founder of Female Founder Finance, Roxanne Goodman, called the partnership a “game-changer” for women-led businesses, stressing that better access to trade finance will empower more female entrepreneurs to succeed on the global stage. 

The event follows the Chancellor’s endorsement of the Invest in Women Taskforce, part of a wider government initiative to drive economic growth by increasing investment in women-led businesses.

See: https://www.gov.uk/government/news/women-leaders-gather-in-leeds-to-help-unlock-sme-business-growth
 
Changes Coming to GB-NI B2B Parcel Movements in May
From 1 May 2025, all B2B (business to business) parcels travelling from Great Britain to Northern Ireland will need to have information submitted onto the Customs Declaration Service.

This is something your parcel carrier will typically handle; however, you will need to provide them with additional information so that they can do this. In some cases, you may also need to pay duty. If you are affected, we recommend you speak to your parcel carrier to find out how they will be handling this.

Eligible goods that move from a business in Great Britain to a business in Northern Ireland that are for sale to, or final use by, end consumers who are located in the UK will be covered by the UK Internal Market Scheme (UKIMS). This means that they will not need a full international customs declaration and will incur no duty.

This arrangement only applies to goods sent to businesses in Northern Ireland.

However, parcels sent to consumers (private individuals) from Great Britain to Northern Ireland can take advantage of alternative arrangements that mean there are no individual customs declarations, no duty and goods do not need to be presented to customs authorities.

Further guidance on the new arrangements can be found here.

21st March 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

Cutting wasteful spending: What your business can learn from the government’s crackdown
The government has just announced that thousands of government credit cards will be cancelled as part of a crackdown on wasteful spending. With spending on these cards reportedly increasing fourfold in the last four years, it’s a reminder that keeping an eye on expenses is crucial.

While your business is likely much more mindful of costs than a government department - where inefficiencies can go unchecked - this is still a great opportunity to review your own spending and see if there’s any waste you can cut out.

Are you spending more than you need to?
Even in a profit-driven business, unnecessary spending can creep in without you realising it. Some common areas where businesses overspend include:

• Subscription services: Are you paying for software or memberships you no longer use? It’s easy to forget about recurring costs that add up over time. 
• Travel and entertainment expenses: While meetings and networking are important, are you getting real value from every trip or client dinner? 
• Office supplies and equipment: Are you making the most of bulk discounts and supplier negotiations, or could you be getting a better deal? 
• Consultancy and external services: If you outsource work, are you regularly checking that it’s cost-effective, or could an in-house solution save you money?

Simple steps to reduce waste
If you want to tighten up your spending and make sure every pound is working for you, here are some practical steps to take:

1. Review your expenses: Take a look at your spending over the last year and identify anything that isn’t delivering real value. 
2. Set approval processes: Introduce spending limits and require approvals for larger expenses to keep things under control. 
3. Use expense tracking tools: Software can help you see where your money is going in real-time, making it easier to spot savings. 
4. Negotiate with suppliers: Regularly review your supplier contracts to make sure you’re getting the best price possible. 
5. Update employee expense policies: Make sure your team knows what’s acceptable to claim and encourage cost-conscious decisions. 
6. Compare with industry standards: Benchmark your spending against similar businesses to see where you might be overspending.

How we can help
We’re here to help you keep your finances in top shape. We can review your expenses, identify cost-saving opportunities, and help you to make any needed improvements to your financial controls.

If you’d like to make sure your business isn’t wasting money unnecessarily, get in touch with us today. Cutting out waste doesn’t just protect your bottom line – it also helps your business grow stronger in the long run!
 
No change to Bank of England base rate
The Bank of England held its regular meeting to discuss interest rates last Thursday.

They voted to hold interest rates at 4.5% as had been widely expected prior to the meeting.

The Bank targets an inflation rate of 2% and has already predicted that inflation will rise this year before dropping at the end of the year. However, inflation for the 12 months to January 2025 increased to 3.0% from 2.5% in December, a much higher and faster increase in inflation than had been expected.

The Bank have been taking a cautious approach to reducing the rate, and more cuts are expected during 2025. However, with the increases in the amount of national insurance paid by employers and national minimum wage rates taking effect in April, the Bank is having to tread a fine line between slowing price rises and risking damaging the economy by having rates too high.

Could online restaurant reviews be used by AI to detect illness outbreaks?
The UK Health Security Agency (UKHSA) is exploring Artificial Intelligence’s (AI) ability to help them detect and investigate foodborne illness outbreaks.

UKHSA experts have conducted a study where they have assessed different types of AI on their ability to analyse online restaurant reviews and pick out indications of foodborne gastrointestinal illnesses. They hope that one day this could be used to help them to detect and, where necessary, investigate.

How successful was the study?
There were a number of challenges identified in the study that limit the usefulness of the analysis. These would need to be addressed for this use of AI to become reliable and useful, and include:

• Difficulties accessing real-time data.
• Determining exactly which ingredient or factor has caused the illness.
• Differences in spelling and use of slang by users.
• People not correctly attributing the illness to which meal.

Unsurprisingly, Professor Steven Riley, Chief Data Officer at UKHSA said: “Further work is needed before we adopt these methods into our routine approach to tackling foodborne illness outbreaks.”
While this use of AI remains a work-in-progress, efforts to look at ways to use AI to innovate are becoming widespread and leave business owners wondering how AI could benefit their business.
See: https://www.gov.uk/government/news/ai-could-help-detect-and-investigate-foodborne-illness-outbreaks
 
A week left to submit 2024 packaging data
For affected businesses there is now just a week left to submit their 2024 packaging data under the new extended producer responsibility for packaging (pEPR) scheme.

Requirement to submit data and register
The new legislation came into force on 1^st January 2025 and requires data to be submitted by 1 April 2025. Large businesses are expected to submit their July-December 2024 data, whereas small businesses must submit their January-December 2024 data in one annual submission by that date.

All businesses, regardless of size, also need to register with their environmental regulator by 1 April 2025. The fee is set based on the details provided during the registration process.
Failing to register or submit the required data can result in enforcement action.
 
What is the purpose of pEPR?
The pEPR legislation is moving the costs of dealing with household packaging waste onto the businesses that produce the packaging.

Clearly the fees provide motivation to reduce unnecessary packaging, However, if your business is affected by the legislation, innovating your packaging may take some time to achieve.
If you need help with budgeting for the additional costs or assessing their financial impact, please get in touch and we would be happy to help you!

Where can I get more information?
Guidance on registering can be found here.

If you are not sure whether you need to report packaging data, government guidance on who is affected and what to do can be found here.
 
Identity verification coming to Companies House
As part of the changes being gradually introduced by the Economic Crime and Corporate Transparency Act (ECCT), identity verification is set to become a Companies House requirement.
This is one of a number of changes that the Act is making to better protect the data held at Companies House.

Who will be affected by identity verification?
Identity verification will ultimately become a compulsory part of incorporation and new appointments for new directors and persons with significant control (PSCs).
All existing directors and PSCs will also need to verify their identity as part of the annual confirmation statement filing, once Companies House make this mandatory. Anyone who files a document will also need to have their identity verified.

Mandatory identity verification is still being prepared for. However, individuals will be able to voluntarily verify their identity from 8 April 2025 using their GOV.UK One Login or via an Authorised Corporate Service Provider (ACSP).

Changes for third party corporate service providers
Last week also saw the introduction of a new service for third party corporate service providers, such as accountancy firms, to apply to register as an ACSP.
Ultimately, third party providers will have to register to be able to file information and confirm they’ve verified the identities of their clients.
 
ACSPs have to be:

• Based in the UK
• Register with Companies House
• Be registered with a UK supervisory body for anti-money laundering (AML) services
• Retain records of identity verification checks.

We are pleased to say that we have registered as an ACSP and will be able to continue helping you with any incorporation, identity verification and document filing. If you need any company secretarial support, please feel free to contact us at any time.

See: https://www.gov.uk/government/news/companies-house-launches-registration-of-authorised-corporate-service-providers
 
Are you ready for April 2025?
The new National Living Wage and National Minimum Wage rates will come into force from 1 April 2025.

There are also changes to the National Insurance employers pay that take effect from 6 April. For many businesses, the April payroll will represent a sizeable step up in labour costs.
As a reminder, here is a quick recap of the changes.

National Minimum Wage rates
The new minimum wage rates are as follows:

	Hourly Rate
National Living Wage (21 and over)	£12.21
18-20 Year Old Rate	£10.00
16-17 Year Old Rate	£7.55
Apprentice Rate	£7.55
Accommodation Offset	£10.66

 
Employers National Insurance changes
The percentage rate of Employers’ National Insurance (NI) that’s paid on an employee’s earnings increases to 15% (from 13.8%).

The threshold that an employee needs to be earning before any Employers’ NI is due drops to £5,000 a year. Previously this was £9,500.

If you use online payroll software, the new Employers’ NI rates should be automatically included. However, please check with your payroll software provider if you are not sure.

If you need any help using the new rates or calculating the amount of minimum wage that is due to a worker, please get in touch. We would be happy to help you!
 
The Growth Agenda: Small businesses putting forward ideas for growth
Goldman Sachs published their “The Growth Agenda” report last week. This is a report that puts forwards the ideas of small business owners that could help to boost the UK economy.

The report looks at issues around several areas that affect small businesses and include ideas that may help to drive growth. The main areas discussed in the report include:

• Access to finance
• Talent and the workforce
• Artificial intelligence
• Taxation & trading
• International markets
• Infrastructure
• Climate transition

For each area, the report includes a summary of the main challenges and then some key ideas that would help to mitigate some of the challenges.

The ideas have then been summarised into a 2-page ‘Key Calls to Action’ summary. These are split between quick wins (straightforward initiatives that could be introduced relatively easily), momentum builders (initiatives that will require time and investment), and fundamental changes (ambitious ideas and major transformations).

As examples of the ideas included, a suggestion is made to expand R&D credits to include AI implementation and training to incentivise AI implementation. A business rates reform is also proposed to protect sectors that are property-intensive.

Whether these policy ideas are likely to come to fruition remains to be seen. However, the government has confirmed that it will consult on establishing the Business Growth Service it announced in December. This is to be a one-stop shop that will provide government advice and support to small businesses and help with raising finance.

To review the report in full, see: https://www.goldmansachs.com/images/community-impact/10000-small-businesses/uk/news-and-programme-information/generation-growth-the-growth-agenda/Report.pdf
  
Poultry feed deal has been cleared by CMA
The Competition and Markets Authority (CMA) has announced that it has cleared Boporan’s proposed purchase of two feed mill sites. These are located at Burston and Radstock and currently owned by For Farmers.

The inquiry made by CMA had two phases. After the phase 1 investigation the CMA concluded that the purchase of the Radstock did not raise competition concerns and the sale of this mill has already completed.

However, concerns continued around the Burston mill and this was considered in the second phase of the inquiry.

The second phase found that despite the purchase reducing the capacity available to manufacture chicken feed for chicken suppliers in the area around the mill in East Anglia, suppliers will still have choice and the option to switch providers.

As a result, Kirstin Baker, chair of the independent inquiry group, said: “Having assessed the evidence and feedback to our interim report, which suggested that competition would not be harmed, we have given this acquisition clearance to proceed.”

See: https://www.gov.uk/government/news/cma-clears-poultry-feed-deal
 
Chancellor announces Fintech reforms to boost UK capital markets
Chancellor Rachel Reeves met with senior Fintech representatives at No. 11 Downing Street last week to discuss growth opportunities as well as new draft legislation aimed at streamlining financial regulations.

The proposed reforms focus on updating the Markets in Financial Instruments Directive (MiFID) rules inherited from the EU. These changes will empower the Financial Conduct Authority (FCA) to eliminate redundant regulations, creating a more business-friendly regulatory environment that supports economic growth.

This initiative, first announced in the Chancellor’s Mansion House speech last November, is a key step in the government’s broader plan to reform the UK’s wholesale financial markets and enhance the country’s global investment appeal.

Chancellor Reeves emphasised that these changes will make the UK’s financial rulebook more competitive, enabling firms to grow, invest, and contribute to economic expansion.

See: https://www.gov.uk/government/news/chancellor-and-fintech-bosses-to-slash-duplicative-and-burdensome-rules 

14th March 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

Higher tax threshold for side hustles: What could it mean for you?
Last week, the tax minister responsible for HM Revenue and Customs (HMRC), James Murray, delivered a speech marking the 20^th anniversary of HMRC. Previously, the UK’s tax authority was known as Inland Revenue.

During the speech he highlighted some simplifications that are planned. Of particular interest was the announcement of plans to increase the Income Tax
Self Assessment (ITSA) reporting threshold for gross income from £1,000 to £3,000.

Who would benefit from this change?
This threshold would apply to anyone with a self-employed trading income, however it can be particularly useful to those with a side hustle. A side hustle is an income-generating activity that is pursued alongside a full-time job or main source of income.

Some have a side hustle for trading clothes online, doing some dog-walking or gardening, or creating online content. Currently if income from these activities exceeds £1,000 then it is likely that a tax return needs to be completed and filed.

However, if the threshold is increased to £3,000 it is estimated that up to 300,000 people will no longer need to complete a tax return. This could be very welcome news for some, although it is important to remember that the £3,000 threshold relates to the requirement to submit a self assessment tax return – the £1,000 trading allowance will not change. Someone with a side hustle that generates £1,200 of income would need to report their trading income through a new online service and will pay tax on the £200 after the £1,000 trading allowance has been deducted.

When will this happen?
Unfortunately no definite date has been mentioned, only the promise that it will happen “within this parliament”. So, we may have a few years yet.

If you would like to know whether you need to complete a tax return for your self employed business or side hustle please get in touch. As tax experts we can help you minimise any tax you owe and would love to help you!

See: https://www.gov.uk/government/news/boost-for-side-hustlers-as-300000-people-to-be-taken-out-of-tax-returns-government-announces#full-publication-update-history
 
Five business failures and the lessons they teach
Success in business is never guaranteed, even for brands that dominate their industry for decades. A recent episode of the BBC Radio 4 show, Toast, explored five once-thriving companies: Little Chef, Vine, Mothercare, Green Shield Stamps and Safeway.

Each of these businesses were very successful for a period of time, but for one reason or another ultimately failed. Their downfall may have been caused by a number of contributing reasons including:

• Failing to adapt to market trends or changing customer priorities.
• Not innovating, which led to obsolescence.
• Innovating but failing to find a sustainable revenue model.
• Mismanagement.

Their stories offer valuable insights that can help you avoid their mistakes with your own business.

See: https://www.bbc.co.uk/programmes/articles/2qFwVDZhfKHs2Y1qhpF1ZCf/five-successful-businesses-that-eventually-failed
 
New legislation aims to drive building boom
The Planning and Infrastructure Bill was introduced to Parliament last week. The legislation is being heralded as bringing transformative reforms to the UK building sector that will boost homebuilding and remove obstacles to needed infrastructure.

Here is an outline of some of the measures introduced by the legislation.

Planning committees
A national scheme of delegation will specify which types of applications are to be determined by officers and which by planning committees. There will be limits on the size of planning committees and planning committee members will have mandatory training.
Councils will also be able to set their own planning fees.

Nature Restoration Fund
A Nature Restoration Fund will be established so that payments made into the fund allow building to proceed. Contributions will be pooled so that larger environmental interventions can be funded.

Compulsory purchase reform
The compulsory purchase process for buying land for public interest projects will be adjusted. The reforms will mean compensation paid to landowners is not excessive and the process by which ‘hope value’ is removed when it’s justified in the public interest will be sped up.

While these adjustments aim to speed up the development of public interest projects, landowners may not see these changes as an improvement.

Development Corporations
Development Corporations have been used in the past where the risk or scale of a development is too large for the private sector, for example in building post-war new towns.

The legislation will strengthen Development Corporations so that it will be easier for them to deliver large-scale developments, such as new towns that include affordable housing, GP surgeries, schools and public transport alongside new homes.

Strategic planning
Across England there will be a system of ‘strategic planning’ known as spatial development strategies. This will make it possible to consider needs across several local planning authorities and determine where the most sustainable building areas are, making sure that the requirements for development and infrastructure are joined up.

National Significant Infrastructure Projects (NSIP)
Consultation requirements for national projects like windfarms, railway lines or roads are to be streamlined under the new legislation. Infrastructure applications are assessed against national policies, so these policies will now be updated at least every five years.

The Highways Act and the Transport and Works Act are also to be updated so that bureaucracy on transport projects is reduced.
Challenges to government decisions on major infrastructure projects will also be limited. Meritless cases will have one rather than three attempts at legal challenge under the new legislation.

Clean energy
The legislation will help approved clean energy projects be prioritised for grid connections.

Bill discounts
The government are anticipating that around twice as much new transmission network infrastructure – overhead cables, pylons, substations etc – will need to be built by 2030 as was built in the past decade.

As an incentive to accept these changes, those living within 500m of new pylons will be given money off their electricity bills for 10 years.
Developers will also be given new guidance on providing benefits such as sports clubs, educational programmes or leisure facilities to communities that host transmission infrastructure.

Reaction
Unsurprisingly the legislation was greeted by positive comments from government and large homebuilder representatives. However, Brian Berry, Chief Executive of the Federation of Master Builders, chimed in with a comment for smaller builders.

He noted that only around 10% of new homes are being built by SMEs today, compared with 40% in the 1980s. He cited the planning system as the number one issue holding back the delivery of new homes, with availability and viability of land also contributing. He said: “Supporting small builders through the planning system and reducing unnecessary bureaucracy will be key to opening up small sites, and today’s announcement will be welcomed by many across the industry.”

Legislation takes time to clear parliamentary process, but we look forward to seeing a good effect from the reforms for our construction industry clients.
See: https://www.gov.uk/government/news/biggest-building-boom-in-a-generation-through-planning-reforms
 
Your voice could be your password
HM Revenue and Customs (HMRC) have plans to use a callers voice as their password in an effort to speed up phone calls.

In systems that are being used by banks, a customer’s voice recording is turned into encrypted biometric data, which is then used when they call to clear security checks. HMRC are planning to trial a system like this.

HMRC has come under heavy fire for the poor handling of its customer service phone lines. According to statistics, for January through November last year, the phone line went dead on almost 44,000 callers who had been waiting 70 minutes.

The Public Accounts Committee in their January report concluded that HMRC was deliberately running a poor phone service to try and get taxpayers to use online help instead. Last year, HMRC announced that they were closing their phone line altogether between April and September. However, they had to reverse that decision the next day after a backlash.

It seems that efforts are now being made to modernise the phone service and make it more efficient.

If you are having difficulty contacting HMRC or would like help in dealing with them, please call us and we would be happy to help you!

See: https://www.bbc.co.uk/news/articles/c07z5d0v79ko
 
Are you bamboozled by new technology? Bite-size guides could help
New technology continues to progress at a fast rate. It can be difficult to keep up or see the opportunities for your business.

Some new bite-sized introductions have been published by the Government Office for Science that may help.

The topics discussed include:

• Neurotechnology
• Metamaterials
• The future of computing
• Carbon management technologies
• Fusion energy
• Robotics
• Humanoids

The introductions briefly set out the latest evidence and some expert insight on recent developments in the technology. They also show some potential applications and opportunities for the technology.

Could one of these introductions spark the next idea for your business?

See: https://www.gov.uk/government/news/new-bite-sized-technology-guides-published
 
Safe working with screens: What employers need to know
The Health and Safety Executive are reminding employers about their responsibilities to protect workers from the health risks that come from working with display screen equipment (DSE), including PCs, laptops, tablets and smartphones.

The Health and Safety (Display Screen Equipment) Regulations apply to any worker that uses DSE on a daily basis for continuous periods of an hour or more.

For these workers, the Regulations mean that employers need to do a DSE workstation assessment and reduce risks such as by making sure breaks are taken.

The law applies not only to workers at a fixed workstation but also mobile workers, home workers and hot deskers. Home workers can be easily overlooked because you don’t regularly see their work environment.

As well as the assessments, employers are also required to provide eye tests if requested by the employee and to provide training and information.
HSE provides a guide on what employers need to do as well as a checklist of the things to consider when doing a workstation assessment.

See: https://www.hse.gov.uk/msd/dse/index.htm
 
New import bans following foot and mouth case
Following a confirmed case of foot and mouth disease at a cattle farm in Hungary’s north-west, new import bans have been announced.

The commercial import from Hungary and Slovakia of cattle, pigs, sheep, goats and other non-domestic ruminants and porcines such as deer and their untreated products, such as fresh meat and dairy, are now banned.

Since 8 March, travellers are also no longer able to bring meat, meat products, milk and dairy products, certain composite products and animal by products of pigs and ruminants, or hay or straw from Hungary or Slovakia.

This case follows an outbreak of foot and mouth disease in a water buffalo herd in Germany in January.

While foot and mouth disease does not carry any risk to humans or to food safety, it is highly contagious for cattle, sheep, pigs, and other cloven-hoofed animals. It can have severe economic effects on farmers both through losing productivity as well as access to foreign markets.

While no cases have been reported in the UK yet, the UK Chief Veterinary Officer has urged farmers to stay on the alert for any clinical signs in their livestock.

See: https://www.gov.uk/government/news/import-ban-of-cattle-pigs-sheep-and-deer-from-hungary-and-slovakia-to-protect-farmers-after-foot-and-mouth-case
 
Latest statistics from ACAS: Employers proactive about finding information
In their latest blog, ACAS (Advisory, Conciliation and Arbitration Service) revealed some insights from their latest helpline and early conciliation data.

Increased demand for services
They report that the demand for their services continues to trend up. Their helpline service handled around 158,500 calls in the final quarter of 2024, which is an increase of 11% on the previous quarter.

Web traffic has also increased significantly: up by nearly 20% on the previous year.

Employers proactively seeking information
They can see that employers and employees are being proactive about finding information when the law changes. There were 46,000 web sessions, a 180% increase, following the new duty on employers to prevent sexual harassment.

Main factors behind calls
The most common reasons for calls are discipline, dismissal and grievance. However, money matters seem to increasingly be a concern for employers and employees.

Analysis of work
According to ACAS, early conciliation cases have also increased in number, and there have now been consecutive increases in these for the last seven quarters. And legally complex cases are the largest proportion of their caseload since April 2023.

They report that so far the proportion of cases that do not progress to employment tribunal is remaining steady, which suggests that ACAS’s work is able to prevent two-thirds of cases from going further.

What does the future hold for employer-employee relations?
ACAS feel the future is “unpredictable”. The new Employment Rights Bill may affect both trade unions and workforces. The biggest causes of disputes lie around pay and money matters. This may increase in view of the increased National Insurance contributions due from April.

See: https://www.acas.org.uk/employers-and-employees-proactively-finding-answers-for-themselves
 
Funding announced for ‘exporting’ UK music acts
The Music Export Growth Scheme (MEGS) will be using their latest round of funding totalling £1.6 million to help support 58 UK artists to tour the world.

The funding will help small and medium sized music companies with their marketing and promotion campaigns for their artists touring abroad. The aim is to attract new fans, overseas touring opportunities and revenue.

MEGS has been operating since 2014 and has given out around £7.9 million in grants to support UK musical acts in touring abroad and finding an international audience. Some acts, such as Ezra Collective and Fat Dog have benefited from Brit Awards recognition.

The Creative Industries sector contributed almost £125 billion to the UK economy in 2023 and exporting UK music is seen by the government as an important way to continue growing the economy.

See: https://www.gov.uk/government/news/major-new-funding-for-music-acts-that-supercharged-careers-of-brit-award-winners
  
Red tape to be cut for payments systems
The government has announced plans to lay legislation that will end the Payment Systems Regulator (PSR).

The PSR currently looks after payment systems such as Faster Payments and Mastercard. However, its role will be consolidated into the Financial Conduct Authority.

Payment systems firms currently have to deal with three different regulators, which can make these systems unnecessarily complicated. Abolishing the PSR will simplify this.

Nothing is changing immediately. The PSR will continue to look after its work until Parliament has passed the necessary legislation.

See: https://www.gov.uk/government/news/regulator-axed-as-red-tape-is-slashed-to-boost-growth

7th March 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

Spring Statement news: Public spending cuts likely
News reported last week said that the Chancellor has put together draft plans for spending cuts to welfare and other government departments.
At the time of the 2024 Autumn Budget, the Office for Budget Responsibility (OBR) said that there was a £9.9 billion buffer available against the Chancellor’s own self-imposed borrowing rules.

However, the OBR’s spring forecast seems likely to show that this buffer has disappeared due to the events of the last few months, including trade tariffs, the war in Ukraine and higher inflation and borrowing costs.

It could be argued that an alternative strategy would be for the Chancellor to amend her borrowing rules. However, to do so would risk losing credibility with the financial markets and the Chancellor has described her rules as “non-negotiable.” So, it seems that spending cuts are now likely, mainly to welfare payments.

How could welfare cuts affect my business?
Such cuts are likely to have ripple effects on small businesses, impacting both their customers and employees. Here are some key ways that these cuts could affect your business:

1. Reduced consumer spending: If welfare payments are reduced, lower-income households will have less disposable income, leading to decreased sales for businesses that depend on everyday spending, such as shops, cafes, and tradespeople. It can also lead to less demand for non-essential goods and services, such as entertainment, beauty treatments, and leisure activities. 
2. Workforce challenges: Employees who may also rely on welfare support, such as Universal Credit top-ups or childcare subsidies, could be affected by cuts. This could lead to increased financial strain for them that leads to reduced productivity, higher stress levels, and even absenteeism. It may also mean difficulties in retaining staff if they seek higher wages elsewhere or struggle to afford travel and childcare costs. 
3. Higher pressure on business owners: Less support may be available for self-employed individuals who rely on welfare payments during periods of fluctuating income. There may also be increased pressure to raise wages for affected employees, potentially squeezing already tight margins.ocal economy knock-ons: Local economies shrink when people have less money to spend. For businesses that rely on strong community support, particularly in areas with high welfare dependency, this can present challenges.
5. Impact on Business-to-Business (B2B) services: If welfare cuts lead to a slowdown in consumer spending, other small businesses that provide services to local companies (such as marketing, IT, and consulting) could also suffer as their clients tighten budgets.

 
What can you do?
Some basic steps you could consider include:

• Diversifying your customer base to reduce reliance on low-income consumers.
• Explore alternative revenue streams, such as online sales or subscriptions.
• Support employees through flexible working arrangements or other benefits to help offset financial strain.

While government decisions on welfare are often made with national budgets in mind, businesses are often on the front line of these changes. While this can create uncertainty, with the right planning and business strategy, you can take proactive steps to protect and even strengthen your business during challenging times.

Staying ahead of economic shifts is key to long-term success. If you’d like expert guidance on how to navigate the impact of welfare spending cuts on your business, get in touch with us today. We’d be happy to help you!

See: https://www.bbc.co.uk/news/articles/c1lpjqg2mp5o
 
Plug-in van grant extended for another year
The Future of Roads Minister, Lillian Greenwood, has confirmed that the plug-in van grant will be extended for another year.

The plug-in grant means that businesses can obtain grants of up to £2,500 when buying an eligible small van up to 2.5 tonnes and up to £5,000 for an eligible larger van up to 4.25 tonnes.

The grant is made available through the dealer or manufacturer as a discount on the purchase price when the van is purchased. So, there is no need for each purchaser having to go through a grant application themselves.

The government is also removing the requirement for additional training that is currently required for zero emission vans but not petrol or diesel ones.
Zero emission vehicles also carry some attractive tax advantages. If you are looking at replacing vehicles and would like help to know what the end costs are for you, please get in touch. We would be happy to help you!

See: https://www.gov.uk/government/news/120-million-to-roll-out-more-electric-vans-taxis-and-motorbikes
 
Public Procurement Act to give more opportunities to small businesses
The Public Procurement Act 2023, originally set for implementation on 28 October 2024, has now officially come into force. This legislation introduces new rules designed to make it easier for smaller businesses to compete for and win public sector contracts.

Key changes under the Act
The Act establishes clear rules that all public bodies must follow when buying goods and services. One of the most significant updates is the introduction of a Central Digital Platform. This is now available and allows businesses to register their details and access all potential bidding opportunities in one place.

An end to late payments
A particularly welcome change is the introduction of a mandate of 30-day terms for all public sector contracts. This measure is expected to improve cash flow for smaller businesses, which often struggle with delayed payments.

Cabinet Office Minister Georgia Gould highlighted the benefits of the new legislation, stating that the new Procurement Act will “tear down barriers that stop small businesses from winning government work, giving them greater opportunity to access the £400 billion spent on public procurement every year.”

New powers to deal with poor suppliers
The Act also introduces new powers to investigate and take action against poorly performing suppliers or those that pose security risks to supply chains. The Procurement Review Unit (PRU) and National Security Unit for Procurement (NSUP) will oversee these investigations. Underperforming suppliers could face exclusion from future contracts or even debarment.
A boost for small businesses
Public sector spending is significant, and this legislation marks a significant step towards creating more opportunities for smaller businesses. By reducing bureaucratic hurdles, ensuring fairer payment terms, and increasing transparency, the Act provides SMEs with a greater chance to secure valuable government contracts.

For small business owners, now is the time to explore these new opportunities and take advantage of the changes aimed at levelling the playing field in public procurement.

See: https://www.gov.uk/government/news/new-public-procurement-rules-to-drive-growth-opportunities-for-small-businesses-and-exclude-suppliers-that-fail-to-deliver 
 
Boost for rural businesses: Government announces £38 million investment
The UK government has announced a major funding boost for rural areas, with up to £38 million allocated to support infrastructure, essential services, and business growth in the countryside. The aim is that the funding will help to create jobs and drive economic growth while improving quality of life for rural communities.

Rural England Prosperity Fund given £33 million
A significant portion of this investment, up to £33 million, will be directed to the Rural England Prosperity Fund (REPF). The fund’s goal is to strengthen the rural economy and is designed to improve local infrastructure and essential services while supporting rural businesses to expand and diversify.

What kind of projects will be funded?
Businesses and community organisations in rural areas will be able to apply for funding for projects that help stimulate economic growth and enhance local facilities. Some of the key initiatives that will be eligible for REPF funding include:

• Rural business hubs: Development of shared workspaces and networking spaces to support rural entrepreneurs and small businesses.
• Business diversification: Funding to help rural businesses create new products, facilities, or convert building to expand beyond traditional agriculture.
• Community greenspaces: Creation of community gardens and green spaces to improve wellbeing and local biodiversity.
• Visitor trails and footpaths: Investment in new footpaths and local trails to boost tourism and accessibility.
• Community hub improvements: Funding to upgrade kitchens in community spaces and enhance facilities used by volunteer organisations such as youth charities and carers’ groups.

Additional £5 million to support rural services
In addition to the REPF, a further £5 million has been allocated to support essential services. The key areas of investment this fund will make include:

• Rural community assets fund: Providing capital for the refurbishment and development of community-owned assets such as village halls and community centres.
• Affordable rural housing: Supporting Rural Housing Enablers to identify and bring forward sites for affordable housing.

What happens next?
Funding allocations for local authorities will be published soon. If you’re a business owner or community leader in a rural area, keep an eye on local authority announcements to see how you can benefit from this funding.

Need advice on how this might impact your business? Get in touch, and we’ll help you navigate the opportunities ahead!

See: https://www.gov.uk/government/news/government-funding-for-rural-communities-set-out
 
Farming reforms to boost profitability
The government has announced its plans for new policies that it expects will make farming more profitable.

The new policies include:

• Seasonal Worker visa route to be extended for another 5 years.
• New requirements for government catering contracts that aim for at least 50% of food supplied coming from British producers or those certified to higher environmental standards.
• Funding for technology investment.
• Protecting farmers in future trade deals.
• Setting up a new National Biosecurity Centre that will upgrade the Animal and Plant Health Agency animal health facility at Weybridge and help to improve resilience against animal disease.

Steve Reed, the Secretary of State for Environment, Food and Rural Affairs, said: “The underlying problem is that farmers do not make enough money for the hard work and commitment they put in.” He went on to say that his focus “is on ensuring farming becomes more profitable.”

The announcement is positive news for farmers, and we look forward to seeing whether this translates to an uplift in profitability for our farmers!

See: https://www.gov.uk/government/news/government-announces-raft-of-new-policies-and-major-investment-to-boost-profits-for-farmers
 
Health and Safety: Lessons from Tamworth Snowdome
A tragic incident at the Tamworth Snowdome has highlighted the critical need for businesses to properly assess and manage health and safety risks.

The incident
Twelve-year-old Louis Watkiss tragically lost his life during a tobogganing birthday party at the indoor skiing venue on 24 September 2021. While descending the main ski slope, his toboggan collided with a staff member conducting a slope walk. The impact caused the staff member to fall backward onto Louis, resulting in fatal head injuries.

Following an investigation by the Health and Safety Executive (HSE), Snowdome Limited was found to have failed in its duty to ensure customer safety and was fined £100,000 for breaching health and safety laws.

What went wrong?
The HSE investigation revealed significant failings in Snowdome Limited’s risk assessment procedures. Specifically, the company:

• Did not conduct a suitable and sufficient risk assessment for tobogganing activities. 
• Failed to consider all individuals present on the slope, including staff and customers. 
• Lacked a safe system of work to manage collision risks between toboggans and pedestrians. 
• Did not provide adequate information, instruction, training, or supervision to ensure safe operations.

These shortcomings meant that crucial safety measures were not in place, leading to a preventable tragedy.

Legal and regulatory responsibilities
Under Section 3(1) of the Health and Safety at Work etc. Act 1974, employers must take reasonable steps to protect not only their employees but also other individuals who may be affected by their operations. This applies across all industries, from construction sites to entertainment venues like indoor ski slopes.

Nathan Cook, Senior Enforcement Lawyer for HSE, emphasised: “Louis went to a friend’s birthday party at the Snowdome and should have returned home safely to his family after an enjoyable occasion. Tragically, due to the failings of Snowdome Limited, this did not happen.”

He added that the tragedy could have been avoided if the company had implemented adequate risk assessments and safety controls.

What businesses can learn
It is difficult to imagine what Louis’ family have gone through since the tragedy. No business would want to be in the position of Tamworth Snowdome and this case serves as a stark reminder that all businesses—regardless of industry—must take health and safety seriously.

To prevent similar incidents, businesses should:

1. Conduct comprehensive risk assessments: Identify hazards and implement measures to mitigate them. 
2. Establish clear safety procedures: Ensure employees and customers are aware of potential risks and how to avoid them. 
3. Provide adequate training and supervision: Employees should receive ongoing training to recognise and manage risks effectively. 
4. Regularly review safety policies: Work environments and operations change over time, making it essential to keep safety policies updated.

Final thoughts
The £100,000 fine imposed on Snowdome Limited serves as a reminder that failure to uphold safety standards can have devastating consequences. Beyond financial penalties, businesses risk irreparable harm to their reputation and, more importantly, endangering lives.

Businesses should take proactive steps to assess risks, implement safeguards, and foster a culture of safety in the workplace. Health and safety should never be an afterthought: it is a fundamental responsibility that protects lives.

See: https://press.hse.gov.uk/2025/02/26/skiing-company-fined-after-boy-was-killed-at-friends-birthday-party/
 
Guidance on maintaining secure networks
The National Cyber Security Centre have published new guidance for organisations on network security fundamentals. Using networks has become fundamental to many businesses, ensuring they continue to operate and stay secure.

The guidance splits into the following 8 sections:

1. Identifying your assets
2. Understanding the threat
3. Restricting access
4. Designing network architecture
5. Protecting data in transit
6. Securing network perimeters
7. Updating systems
8. Monitoring networks

The guidance provides an overview in each area as well as further reading that can help you ensure that your network is as secure as possible.
See: https://www.ncsc.gov.uk/guidance/network-security-fundamentals

28th February 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

MAKING TAX DIGITAL FOR INCOME TAX
With just over a year to go before Making Tax Digital for Income Tax (MTD for IT) is mandated, now is the time to consider whether your business will be required to comply with the new requirements from 6 April 2026.

If you are a sole trader or run an unincorporated property business, and your ‘qualifying income’ (generally turnover from a sole trade or property business) is £50,000 or more in the 2024/25 tax year, you will be mandated into MTD for IT from 6 April 2026. It’s too early to know your 2024/25 income until your accounts or tax return have been prepared for the tax year, but your 2023/24 self assessment tax return should give you an indication as to whether or not you’ll be mandated. If your qualifying income in 2023/24 was above or nearing £50,000, and you expect it to stay at around that level or increase for 2024/25, then there’s a good chance that you’ll be mandated.

HMRC are taking this approach. They have said that they’ll use 2023/24 returns (the deadline for which was 31 January 2025) to identify which taxpayers are likely to be mandated from 6 April 2026. They’ll be sending those taxpayers a letter in the coming months, advising them that they’re likely to be mandated and explaining why.

If you receive such a letter, or if you’d like to know more about preparing for MTD for IT, please let us know. MTD for IT will involve keeping your detailed accounting records in compatible software and sending quarterly digital reports to HMRC. This might be a big change for some, but it could actually benefit you. We can help you choose the most suitable software and implement the required processes in a way that adds value to your business.

TIMING OF DISPOSALS AND ELECTIONS FOR CAPITAL GAINS TAX
2024 saw an increase in the main rates of Capital Gains Tax (CGT) for disposals taking place on or after 30 October 2024 (now 18% and 24%). It was also announced that the rate of CGT on Business Asset Disposal Relief (BADR) gains would increase from 10% to 14% from 6 April 2025, with a further increase to 18% planned from 6 April 2026. The upcoming change means that getting the timing of BADR-qualifying disposals wrong could mean you paying more CGT.

As a general rule, the disposal date for CGT purposes, for unconditional contracts, is when the contract is entered into, rather than the time that it is completed. New rules prevent using unconditional contracts to secure the lower rates of CGT. There are also new rules that prevent using elections to lock in the lower rate of CGT when share exchanges or reorganisations take place. If you are planning to make a BADR-qualifying disposal, please speak to us so that we can help you avoid any pitfalls!

LOAN CHARGE REVIEW – HAVE YOUR SAY!
The loan charge was brought in to curtail the use of specific tax avoidance schemes that sought to avoid Income Tax and National Insurance by disguising remuneration as loans. There are complex and long-standing problems with HMRC’s policy and settlement concerning loan charge liabilities, with a considerable number of taxpayers experiencing undue hardship.
 
An independent review of the loan charge is taking place, which will focus on cases where tax liabilities have not been resolved. If you were affected and would like to submit evidence, please speak to us.

ARE YOU TRADING?
2024 was the first year for which digital platforms such as Amazon and eBay were required to send information about vendors to HMRC. The reporting requirements apply unless the vendor made fewer than 30 sales in a year and received less than €2,000 (approximately £1,700) for those sales.

The new rules merely strengthen HMRC’s data collection powers and do not create any new tax obligations for individuals. It does however mean that if an online trader has not been declaring their income, HMRC are more likely to find out about it!

There has been a lot of misinformation online and on social media surrounding the new rules, leading people to believe that they’ll have to pay tax on their sales from having a clear-out and selling their unwanted possessions! This isn’t necessarily the case. In a recent educational campaign, HMRC set out the circumstances in which tax would be due. They say, “Selling stuff for some extra money might just feel like a fun hobby you do on the side, but it could also count as something HMRC calls ‘trading’”. The definition of trading is complex, but generally it means that the activity is pursued with a view to making a profit. HMRC go on to say. “Just casually selling some unwanted personal belongings from time to time? It’s unlikely you’ll need to pay any tax on this.”

The campaign also addresses the £1,000 trading allowance.  If a person’s sales income from trading is £1,000 or less in a tax year, that trading income does not need to be declared; if sales from trading exceed £1,000, then that trade needs to be declared on a self assessment tax return.

ATED
Annual Tax on Enveloped Dwellings (ATED) is payable by ‘non-natural persons’, such as companies, that hold an interest in UK residential property valued at over £500,000. The ATED charge is based on the value of the property and applies unless an available relief is claimed.

One such available relief is for dwellings that are let to a third party on a commercial basis and are not, at any time, occupied, or available for occupation, by anyone connected with the owner. If this relief applies, it should be claimed in an ATED return.

ATED is payable for a chargeable period ending on 31 March each year. Returns must be filed within 30 days of the period commencing, so returns for the period 1 April 2025 to 31 March 2026 must be filed on or after 1 April 2025, and no later than 30 April 2025.

Over the coming months, HMRC will be sending ‘One-to-Many’ letters to companies that own one or more dwellings valued at over £500,000, declared no profits in their Corporation Tax returns between 2017 and 2020 and either filed no ATED returns or claimed the relief outlined above. The letter explains that as the company’s tax returns show that it did not make a taxable profit, it may not have been run on a commercial basis, with a view to a profit. In such cases, the ATED relief will not apply.

The letter asks companies to review their ATED position and respond within 40 days, either providing further information, making a disclosure or filing any outstanding returns. If HMRC do not receive a response within the set time, they may raise a discovery assessment and penalties may apply.

21st February 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

Should you be paying tax on your side hustle?
Conventional approaches to work and earning an income are changing and with the cost of living ever rising, many now use various ways to make some extra cash outside of their main job. If that’s true of you then you may wonder whether you need to pay tax on those earnings.

HM Revenue & Customs (HMRC) have launched a new campaign aimed at demystifying whether you need to tell them about your side hustle earnings so you can avoid any nasty surprises.

The guidance looks at five different types of hustle. Here we briefly review them and what you need to know.

1. I’m buying or making things to sell
If you sell things you make (including digital creative products), upcycle furniture to sell, or buy items to resell at a higher price, then HMRC would consider you to be trading.

2. I’ve got a side gig
Side gigs vary but might include providing car repairs, making deliveries, dog walking, gardening or tutoring.
Although this work may be done in your spare time, if it’s regular and carries on for a few months, HMRC would consider it to be trading.

3. I work for myself doing multiple jobs
If you’re earning a living from doing several different jobs then you could be trading and need to register as a sole trader.

4. I’m a content creator or influencer
What may have started as a hobby could have become an earner for you. For instance, if you get paid to do sponsored social posts for a brand, or you get ad income from your online videos or blog, then HMRC will consider you to be trading.

How much can you earn from trading before you need to tell HMRC?
If you earn £1,000 or less in a tax year then you won’t pay any tax on it. However, if you earn more than £1,000 you need to tell HMRC and may need to pay tax.

Note that this £1,000 limit is a single allowance that applies to your combined trading income. You don’t unfortunately get an allowance for each type of income.

Some may suggest that if you sell less than 30 items a year you do not need to pay tax, however this is incorrect. Online platforms have to share some information with HMRC if you sell more than 30 items in a year, but that doesn’t mean you necessarily need to pay tax. You may also be due to pay tax if you sell less than 30 items. The key question is whether you have earned more than £1,000.

However, if you casually sell some unwanted belongings from time to time, then it’s unlikely you will need to pay any tax on this.

There is one other type of side hustle income that you might need to tell HMRC about, but this has some different rules to consider.

5. I rent out my property
It could be that you run a holiday let, rent a spare room, or rent out a property through an app.

For renting out spare rooms, then that may be covered by the £7,500 rent a room scheme allowance.

If it’s a property that you don’t live in that you rent out, then you also have a property allowance of £1,000. If the income you receive is more than that then you may need to pay tax on it.

It’s worth noting that you can use the £1,000 trading allowance as well as the rent a room scheme and property allowance.

If you need help working out whether you need to pay tax on your side hustle, please give us a call. We would be happy to help you!

For more information on HMRC’s tax help for hustles, see: https://taxhelpforhustles.campaign.gov.uk
 
Extra flexibility for apprenticeships
The Department for Education have released details of additional flexibility coming to apprenticeships.

When adult learners over the age of 19 start their apprenticeship course, businesses will now be able to decide whether they need to complete a level 2 English and Maths qualification (equivalent to a GCSE) in order to pass the course.

The Department for Education stressed that apprentices will still be assessed on the core English and Maths skills that are relevant to the work they do.
However, they will be able to focus more on their paid work.

The minimum duration of an apprenticeship is also being reduced from the current 12 month minimum to 8 months. This change will come into effect from August 2025. However, the changes to English and Maths requirements have taken immediate effect.

It is estimated that these changes could lead to up to 10,000 more apprentices a year being able to complete their apprenticeship, as well as helping learners qualify more quickly in high-demand sectors such as healthcare, social care and construction.

See: https://www.gov.uk/government/news/10000-more-apprentices-as-government-slashes-red-tape-to-boost-growth
 
Reforms to homebuying coming
The government announced major plans last week to modernise the house buying and selling process. The reforms centre on digitalising and making property and identity data available electronically. This will allow mortgage companies and surveyors to have information within easy reach.

It is thought that these changes will help to avoid surprises being encountered late in the process, with the waste of time and money that goes with that.
In Norway, property transactions complete in around one month and the reforms take account of learning about how this has been achieved.

HM Land Registry (HMLR) is involved in the changes and the next step is a 12-week project to identify the design and implementation of agreed rules so that the data can be easily shared. HMLR will also be working with councils over coming months on how to open up more of their data and make it digital.

For estate agents and surveyors these reforms could make a big difference to the amount of time and money lost in sales falling through.

See: https://www.gov.uk/government/news/home-buying-and-selling-to-become-quicker-and-cheaper
 
AI: The good and the bad
Artificial intelligence (AI) continues to make headlines as businesses work out how to make effective use of it.

The government is continuing to push for growth in the AI industry. Last week, it opened bidding so that local authorities can submit proposals to become the next AI Growth Zone. It expects thousands of jobs to be created as a result and that it could rejuvenate local communities in various parts of the UK.

Last week saw the Artificial Intelligence Action Summit take place in Paris. Representatives from 80 countries that include world leaders, tech bosses and academics discussed the current progress of AI and future goals.

The emergence of DeepSeek, the Chinese AI service, has caused a lot of discussion in the AI world. Partly due to fears over security concern – Australia has banned it on government devices as a result. And partly because it appears to be have been developed on a much lower budget than has been the case with other AI services.

On the other hand, the BBC published a report on their own research saying that AI chatbots are unable to accurately summarise news. In their study of ChatGPT, Copilot, Gemini and Perplexity, they found that 51% of all AI answers to their questions about the news were deemed to have significant issues of some sort. 19% of AI answers that cited BBC content contained factual errors such as incorrect statements, numbers and dates.

The BBC also found that the chatbots “struggled to differentiate between opinion and fact, editorialised, and often failed to include essential context.” Their report raises concerns about whether an AI generated headline or news summary might lead to harm.

The international law firm, Hill Dickinson, has decided to reign in the use of AI by its staff and has blocked general access. It found that there has been a significant increase in AI usage by its staff and that much of the usage was not in line with its AI policy. Access is now dealt with under a request process.

Commenting on this, the Information Commissioner’s Office felt that there is a danger in firms outlawing the use of AI but staff continuing to use it under the radar.

As the use of AI continues, it seems likely that we will continue to see a mixture of stories as businesses across the world work out how to safely and effectively use AI.

In the meantime, it seems clear that AI tools should not be used on a ‘set and forget’ basis. Use of AI and the reasons for it given by staff need to be understood. And the output of AI needs to be challenged, such as by being carefully reviewed by someone who understands the subject under review.
 
Data protection fees to increase by 29.8%
Following a consultation in 2024, the fees payable by data controllers to the Information Commissioner’s Office (ICO) will be increased by 29.8%.
The new fees will be as follows: Tier 1 Current Fee £40, New Fee £52. Tier 2 Current Fee £60, New Fee £78. Tier 3 Current Fee £2,900, New Fee £3,763.

There is a £5 discount for direct debit payments and any organisations that are currently exempt from paying the fee will continue to be exempt.

See: https://www.gov.uk/government/consultations/data-protection-fee-regime-proposed-changes/outcome/data-protection-fee-regime-government-response
 
HMRC late payment interest rates to be cut
Following the reduction in the Bank of England base rate, HM Revenue & Customs (HMRC) have confirmed that their interest rates will be reduced accordingly.

Late payment interest will reduce to 7% from 7.25%. Repayment interest – paid on tax repayments – will be reduced to 3.5%.

The change will come into effect from:

• 17 February 2025 for quarterly instalment payments.
• 25 February 2025 for non-quarterly instalments payments.

See: https://www.gov.uk/government/news/hmrc-late-payment-interest-rates-to-be-revised-after-bank-of-england-lowers-base-rate--2
 
Crackdown on illegal working in the UK: Key highlights & takeaways
The UK government has intensified its crackdown on illegal working, with January 2025 seeing record enforcement activity. Home Secretary Yvette Cooper announced these efforts as the Border Security, Asylum, and Immigration Bill returned to Parliament last week.

Key highlights
Here are some key highlights of the recent activity:

• 828 premises were raided in January (+48% on the previous January), which led to a total of 609 arrests (+73%).  
• Visits show that restaurants, nail bars, and car washes are seen as high-risk sectors.  
• Since 5 July 2024, illegal working visits and arrests have increased by 38% compared with the previous year, with 1,090 civil penalty notices being issued by the Home Office in that time.

What are the takeaways for businesses?
Ensuring your employees have the legal right to work is more critical than ever. Employers can use the Home Office’s guidance on checking a job applicant’s right to work. A proactive approach to vetting staff can save significant headaches down the line.

Now is a good time to review your recruitment processes and make sure you are complying with immigration laws. It’s particularly important to be wary of informal hiring or failing to conduct due diligence, since it’s clear that the authorities are ramping up enforcement.

Ethical employment practices are not just a legal necessity but also a business advantage. Businesses that treat their workers fairly and operate within the law enhance their reputation and contribute to a fairer marketplace. In contrast, those who cut corners risk financial penalties and long-term reputational damage.

In view of the increased enforcement activity, being compliant with the immigration laws will help to protect your business and its reputation.

See: https://www.gov.uk/government/news/uk-wide-blitz-on-illegal-working-to-strengthen-border-security
 
Director fined for using unlicensed security operatives
The Security Industry Authority (SIA) has reported that a director for a Manchester-based security company has been fined for failing to comply with an investigation into the use of unlicensed security operatives.

The law requires security operatives working under contract to hold and display a valid SIA licence. Merseyside Police reported to the SIA that unlicensed security operatives had been used at a venue in Liverpool.

The SIA sent two requests for information before inviting the director to attend an interview under caution. The director failed to respond or attend and so the SIA initiated prosecution proceedings.

Manchester Magistrates Court sentenced the director and ordered them to pay a total of £3,540 in fines and costs.

See: https://www.gov.uk/government/news/security-boss-convicted-of-obstructing-regulators-investigation
 
Proposals on new energy saving requirements for landlords
The UK government is consulting on changes that will require private landlords in England and Wales to meet higher energy performance ratings by 2030.

Currently, 48% of all private rented homes have an Energy Performance Certificate (EPC) of C or above. However, under new plans the government is proposing that by 2030 all privately let properties will need to meet a minimum EPC C. Currently the minimum level required is EPC E.

The government estimates the average cost to landlords to comply with the proposals by 2030 would be between £6,100 and £6,800.

The consultation is looking for views from landlords and tenants on the proposals, including:

• Whether landlords should be required to meet a fabric standard through installing measures such as loft insulation, cavity wall insulation or double glazing, before moving onto other options including batteries, solar panels and smart meters.
• A maximum cap of £15,000 per property for landlords, with support schemes such as the Boiler Upgrade Scheme and Warm Homes: Local Grant.
• An affordability exemption that lowers the cost cap to £10,000.
• All landlords being required to meet the new standard by 2030 at the latest.

The consultation closes on 2 May 2025. If you are a landlord and wish to take part, the details can be found here.

In view of the potential costs involved, landlords will be following these proposals with interest.

See: https://www.gov.uk/government/news/warm-homes-and-cheaper-bills-as-government-accelerates-plan-for-change
 
4 new road schemes to be funded
Road schemes affecting Wiltshire, Leeds, Essex and Buckinghamshire were given approval last week following the grant of £90 million of government funding.

The improvement in infrastructure these schemes will bring is expected to help businesses be able to transfer goods more easily and generate growth in the economy.

The 4 schemes involve:

• A350 Chippenham Bypass in Wiltshire.
• A647 Dawsons Corner and Stanningley Bypass in Leeds.
• South East Aylesbury Link Road (SEALR) in Aylesbury, Buckinghamshire.
• A127/A130 Fairglen Interchange in Essex.

See: https://www.gov.uk/government/news/millions-to-see-faster-journeys-as-government-green-lights-90-million-for-4-essential-road-schemes-across-england