25th April 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 weekend Easter.

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

MTD for Income Tax: Less Than a Year to Go
If you're a sole trader or landlord with annual income over £50,000, a major change is coming your way. From 6 April 2026, you may be required to keep digital business records and submit quarterly updates to HM Revenue and Customs (HMRC) under Making Tax Digital (MTD) for Income Tax.

This is one of the biggest shifts in Self Assessment since it was introduced, and while there are potential benefits, it will also mean significant changes in how you manage your accounts.

What’s Changing?
Under MTD for Income Tax, affected individuals must:

• Keep digital records using MTD-compatible software. 
• Submit quarterly updates of income and expenses to HMRC. 
• File an end-of-year digital tax return (replacing the annual Self Assessment tax return).

The qualifying income threshold refers to total income from self-employment and property (before any expenses or allowances are deducted).

MTD aims to move the tax system towards more frequent, digital reporting. While some businesses may find it helps with financial organisation and reduces errors, it also means a shift away from the once-a-year tax return process that many are familiar with.

The Pros and Cons
You may find some potential benefits from the new system, such as:

• More up-to-date information about your tax position. 
• Possible time savings at year-end if records are kept properly throughout the year. 
• Reduced risk of errors in tax reporting. 

However, there are going to be some potential challenges too:

• Additional administrative burden, with four quarterly update submissions plus an end-of-year tax return. 
• Requirement to purchase or subscribe to compatible accounting software, if you don’t do so already. 
• A learning curve for those less familiar with digital bookkeeping.

For many sole traders and landlords, the biggest adjustment will be the need for regular digital record-keeping rather than dealing with tax in one go at the end of the year.

What Happens Next?
MTD is gradually being introduced so that it will eventually be a requirement for any self-employed individual or landlord with qualifying income over £20,000.

• From April 2026, self-employed businesses and landlords with qualifying income over £50,000 will need to comply with the new MTD requirements. 
• From April 2027, the threshold falls to £30,000. 
• From April 2028, it drops again to £20,000.

HMRC is currently encouraging businesses to join a testing programme, which allows participants to familiarise themselves with the new system before it becomes mandatory.

During testing, there will be no penalties for late quarterly updates, making it a safer time to learn the process.

How We Can Support You
Whether you want help choosing software, setting up your digital records, or simply understanding what’s changing, we're here to guide you through the transition. Every business will be different - some may need only minor tweaks to their processes, while others may face a bigger adjustment.

If you’d like to discuss how MTD will affect you, or how best to prepare, please get in touch.

Cyber Governance: Why Boards Need to Take the Lead
For most businesses today, digital technology is fundamental to operations. With that comes the growing reality that cyber security is no longer just an IT issue - it’s a business owner and board-level responsibility.

Managing cyber risks effectively is now as essential as managing financial, legal, or operational risks. Increasingly complex supply chains and evolving threats make strong cyber governance critical not just for resilience, but for business continuity and sustainable growth.

To provide support in this area, the National Cyber Security Centre (NCSC), working alongside the Department for Science, Innovation and Technology (DSIT) and industry experts, has developed a set of resources.

While these resources have not been specifically designed for smaller businesses, the practical insights contained in the guidance can be useful to businesses of all sizes.
The resources are split as follows:

• Cyber Governance Code of Practice – sets out the most critical governance actions that directors need to take ownership of. 
• Cyber Governance Training – confirms why and how board members take those actions. 
• Cyber Security Toolkit for Boards – underpins the above two, providing in-depth support.

These tools are designed to be practical, with input from organisations like NEDonBoard to ensure relevance for board members.

While many businesses will already have some cyber security measures in place, these resources aim to help boards review whether governance structures are sufficiently robust - and, if necessary, strengthen them.

Good cyber governance is not just about compliance; it can also improve resilience of your business, protect your reputation, and put you in a better position for growth in a digital economy.

To review the guidance, see: https://www.ncsc.gov.uk/cyber-governance-for-boards/overview
 
How Rejection Can Fuel Business Success
Nobody enjoys rejection. Whether it’s a declined loan application, a missed contract, or an investor turning you down, rejection can sting - especially when you’ve poured your energy and passion into your business.

But rejection, uncomfortable as it is, can often be a powerful catalyst for success. In fact, many successful entrepreneurs credit their biggest breakthroughs to the lessons they learned when things didn’t go to plan.

Here’s why rejection could be one of the most valuable experiences for your business journey.

1. Rejection Encourages Reflection
When we experience rejection, it forces us to step back and reassess. Was my sales pitch as strong as it could have been? Is the business plan really robust? Are we speaking to the right audience?

This kind of honest reflection can uncover weaknesses we might otherwise have missed - and allow us to strengthen our business models, sharpen our strategies, and approach the next opportunity better prepared.

2. It Builds Resilience
Running a business inevitably involves setbacks. Those who succeed long-term aren't the ones who avoid failure altogether - they’re the ones who get back up after a knock.
Each rejection you survive strengthens your resilience. It builds the kind of persistence and adaptability that’s essential for navigating the inevitable ups and downs of business life.

3. Rejection Can Point You Towards Better Opportunities
Sometimes a ‘no’ clears the way for a much better ‘yes.’ A declined funding offer might push you to seek out a partner who’s a better fit. A lost customer could free up time to focus on higher-value work.

While it’s natural to feel disappointed initially, rejection can actually redirect your efforts toward opportunities that are more aligned with your goals, values, and long-term success.

4. It Teaches You How to Handle Criticism
Rejection often comes with feedback - not always well-delivered, but valuable nonetheless. Learning to separate personal feelings from constructive criticism is a vital skill for any business owner.

If you can view feedback objectively, you can use it to make real improvements. Over time, you'll build not only a stronger business but also stronger relationships with clients, investors, and collaborators.

5. Every Successful Entrepreneur Has Faced Rejection
It’s easy to look at successful businesses and assume they had a smooth journey - but behind almost every success story is a long list of rejections.

• J.K. Rowling faced multiple rejections before Harry Potter was published. 
• James Dyson built more than 5,000 prototypes before perfecting his vacuum cleaner. 
• Airbnb was rejected by investors several times before becoming a global brand.

Persistence in the face of rejection isn’t a sign of foolishness; it’s often a necessary part of the process.
 
Final Thoughts
Rejection is painful, but it’s also a sign that you’re pushing boundaries, taking risks, and putting yourself out there - all of which are essential for business growth.

If you can use each setback as a learning opportunity rather than a stopping point, rejection can become one of the most powerful tools in your entrepreneurial toolkit.

If you'd like to chat about how to build financial resilience into your business planning - or simply want some guidance for navigating the ups and downs of business life - we're always here to help.

Why Business Owners Must Stay Involved: Lessons from Elon Musk’s Recent Shift
Recent news about Elon Musk offers a timely reminder for business owners about the risks of losing focus on their core operations. After Tesla reported a sharp drop in profits and sales at the start of this year, Musk announced he would "significantly" reduce his involvement in his US government role with the Department for Government Efficiency (DOGE), refocusing more of his time on Tesla.

We are not here to discuss the politics of Musk’s government involvement, but the situation highlights a critical lesson: business owners need to stay actively engaged in their businesses, particularly during challenging periods.

When owners become too distracted by external commitments, even capable managers may struggle to maintain the same vision, energy, and strategic oversight that a founder or key leader brings. It can lead to slower decision-making, misaligned priorities, and missed opportunities - all of which can erode performance over time.
That’s not to say leaders must micromanage. Effective delegation is essential for growth. However, delegation requires structure, including: 

• Setting clear expectations and goals. 
• Regularly reviewing key metrics and financials. 
• Staying close to strategic decisions, while trusting managers with day-to-day execution. 
• Maintaining visibility with customers, investors, and employees.

Delegation without accountability can quickly become abdication - and the business can drift off course before the owner realises.

Musk’s pivot back to Tesla underscores how important it is for business leaders to balance external ventures carefully, especially when core performance starts to slip. Active leadership remains one of the greatest competitive advantages any business can have.

See: https://www.bbc.co.uk/news/articles/cy0x50yr46lo

What the Latest IMF Forecast Means for Business Owners
The International Monetary Fund (IMF) has predicted that the Bank of England could cut interest rates three more times this year, despite the UK facing higher-than-expected inflation.
Inflation in the UK is now forecast to be 3.1% for 2025 - the highest among advanced economies - largely driven by higher utility and energy bills. However, the IMF believes this spike will be temporary, paving the way for further rate reductions. It expects inflation to fall back to 2.2% by 2026, close to the Bank of England’s long-term target.
For business owners, potential rate cuts offer both opportunities and challenges:

• Lower borrowing costs could make it cheaper to invest, expand, or manage cash flow. 
• Persistently high costs - especially energy and utilities - could still squeeze margins in the short term. 
• Global uncertainty, including US tariffs, could affect supply chains, trade opportunities, and demand, depending on your sector.

The IMF also downgraded its growth forecast for the UK economy in 2025 from 1.6% to 1.1%, reflecting the impact of global trade tensions, particularly from new US tariffs.

While this is a slowdown, it still places the UK ahead of France, Italy, and Germany.

The message for businesses is clear: while interest rate cuts could support borrowing and investment, ongoing cost pressures and global instability mean careful financial management and resilience planning remain essential.

See: https://www.bbc.co.uk/news/articles/cy9vy7yq849o
 
AI Adoption on the Rise Among Small Businesses: A Boost for Productivity
According to new research, small and local businesses across the UK are increasingly embracing artificial intelligence (AI) tools to improve efficiency and streamline everyday operations.

A study led by Professor Ross Brown of the University of St Andrews Business School found that SMEs using AI tools could achieve productivity gains of between 27% and 133%. Based on interviews with nearly 10,000 businesses conducted by the Department for Business and Trade, the findings suggest AI could play a significant role in helping small and medium sized businesses make productivity gains.

Professor Brown explained, “AI potentially offers SMEs short cuts that provide quick productivity wins, like planning staff rotas or reducing food waste in a small restaurant.

These solutions are inexpensive and relatively easy to implement.”

Faire, a wholesale marketplace used by independent retailers, has also conducted its own research that highlights the growing appeal of AI. It found that 83% of 300 surveyed small businesses reported using AI tools, with more than a third doing so daily.

Examples of its use include using AI to help with marketing tasks, such as writing product descriptions and blog posts.

However, many also remain cautious in what they use AI for. For instance, over-relying on the technology for core business decisions.

While some business owners remain cautious, there’s no doubt that AI is proving to be valuable for managing many time-consuming tasks. For small businesses, AI could become an increasingly important tool in the growth of their business.

See: https://bmmagazine.co.uk/in-business/small-businesses-embrace-ai-for-quick-productivity-wins-study-finds/

18th April 2025 – Hillmans Weekly Update

18th April 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 Easter.

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

UK Inflation Falls to 2.6% – But What’s Next for Your Business?
In a small bit of good news, March’s inflation figures have been released showing a drop to 2.6% from 2.8% in February. The main reason? Lower petrol prices, which has offered some relief for households and businesses alike.

However, April has brought fresh challenges. Wage costs and energy prices have already increased, and that’s expected to feed into higher costs in the coming months. The Bank of England’s last forecast showed that they expect inflation to rise again - potentially reaching 3.7% - and to stay above its 2% target until the end of 2027.

The next big date for your diary is 8 May 2025, when the Bank of England will announce whether interest rates are going up, down, or staying put. What does all of this mean for your business planning?

What to watch as a business owner
Even though inflation dipped in March, the picture ahead is more uncertain. Here are a few ways to stay on the front foot:

1. Rising costs could squeeze margins
Now could be a good time to:

• Look into fixed-rate energy deals if they are available.
• Consider if there are any ways that you could be more energy efficient.
• Speak with suppliers or landlords about cost-sharing opportunities.

2. Customers may be price-sensitive
If your costs are rising, many of your customers will be feeling the squeeze too. A smart pricing strategy will help you stay competitive without undercutting your margins:

• Consider tiered pricing or flexible packages. 
• Emphasise the value of your products or services rather than just the price.
• Keep communication open with your customer base so you understand their needs. This will help you to know how to respond. 

3. Interest rates remain a key factor
While there was an expectation that interest rates would see more cuts during 2025, this is now uncertain. Therefore, you should continue to monitor your borrowing costs, and factor potential interest rate changes into any investment decisions you are planning.

4. Staffing and wages
With living costs staying high, staff who did not receive the increase for minimum wage workers may begin looking for pay rises. If you're not in a position to match inflation, consider other ways you can support and keep your staff. For instance, you may be able to:

• Offer flexible hours or hybrid working options.
• Provide training or upskilling opportunities. 
• Show appreciation through small perks or recognition. 

Stay agile, stay informed
While the dip in March inflation is welcome, it’s not a signal that everything’s cooling down. With inflation likely to rise again, it's wise to build flexibility into your business plans.

Keep an eye on the Bank of England’s interest rate decision on 8 May. It could offer more clues about where the economy - and your costs - are headed next.

If you'd like tailored advice for your business or help adapting your plans, just shout. We’re here to help however we can.

Over 1,000 Company Directors Banned
The Insolvency Service has published its latest enforcement outcomes report for 2024-25, and it carries an important message for business owners. More than 1,000 company directors were disqualified over the year, with the majority of cases linked to abuse of Covid support loans.

Of the 1,036 directors banned, 736 were disqualified for misusing Bounce Back Loans. The average length of a ban was eight years. The report also showed that there have been 131 bankruptcy restriction orders.

Misuse of the Bounceback Loan scheme - such as inflating turnover to claim more money, or using funds for non-business purposes - has been a key focus of enforcement efforts.

Other reasons for disqualification included failing to maintain adequate accounting records, not paying tax or VAT owed to HMRC, and acting as a director while already banned.

When a director is disqualified, they are legally prohibited from managing, forming, or promoting any UK company, or any overseas company with links to the UK. This can last anywhere up to 15 years. Breaking a disqualification order can result in a fine or even a prison sentence.

Are there any take-home lessons?
For business owners, this report is a timely reminder of the responsibilities that come with being a director. Ensuring proper record-keeping, staying on top of taxes, and using financial support appropriately are not just good business practices - they’re legal obligations.

If you’re unsure about any aspect of your duties as a director, it’s always worth seeking advice early. A proactive approach can help avoid problems down the line and protect both your business and your reputation.

To view the Insolvency Service’s outcome report, see: https://www.gov.uk/government/publications/insolvency-service-enforcement-outcomes-management-information
 
Cuts to import tariffs
Amidst all the news about increased tariffs in the US, the UK government has announced a cut to zero in import tariffs on a range of 89 foreign products.
Plywood and plastics, as well as pasta, fruit juices, coconut oil, pine nuts, agave syrup and plant bulbs are all included. Construction, food and hospitality, and garden-related businesses could all benefit from reduced costs as a result.

The changes relate to goods where the UK Global Tariff applies, i.e. where the goods entering the UK don’t qualify for preferential treatment under, for example, a free trade agreement. The government anticipates that businesses will save at least £17 million because of these cuts.

The suspension to the import tariffs on these products will last until July 2027.

See: https://www.gov.uk/government/news/government-cuts-price-of-everyday-items-and-summer-essentials
 
£45 Million Tech Boost Aims to Help Farmers Increase Profits and Productivity
Farmers across the UK could soon benefit from a major new investment in agricultural technology, with the government announcing £45.6 million in funding to support innovations that boost food production, improve profitability, and protect the natural environment.

Announced on 14 April, the funding will support a wide range of technologies. These include fruit-picking robots, livestock health monitoring systems, and irrigation systems that maximise water use. The goal is to move these solutions from research labs to real farms, making them accessible and practical for everyday farming operations.
 
Support at every stage of development
The funding is spread across three special funds and will help at different stages of innovation, from early research to on-farm trials.

The first opportunity is the new Accelerating Development of Practices and Technologies (ADOPT) competition, opening on 28 April. This programme will commit up to £20.6 million in 2025-26 to help farmers test new technologies on their own farms. It's aimed at bridging the gap between new ideas and real-world applications.

To support farmers through the process, the ADOPT Support Hub will provide guidance and a £2,500 support grant to help with applications and trial setup.

Two more competitions open in May
From 5 May, two further funding rounds will launch under the Farming Innovation Programme (FIP).

The first will provide £12.5 million for collaborative research into reducing emissions from farms, supporting sustainability and climate resilience. The second also offers £12.5 million and will fund research into precision-bred crops to improve yields, reduce the need for chemical inputs, and strengthen resistance to disease. This builds on the opportunities created by the Genetic Technology (Precision Breeding) Act 2023.

What this means for farmers
These funding opportunities could help farms of all sizes adopt technology that improves efficiency, reduces emissions, or opens up new income streams.

The ADOPT Support Hub can be found here.
 
Delay to Consultation on the Tax Treatment of Predevelopment Costs
At Autumn Budget 2024, we were promised a consultation on the tax treatment of predevelopment costs. However, following the Court of Appeal’s decision on a recent case, the government is postponing publication of the consultation while it considers the implications of the decision.

The case, which is known as Orsted West of Duddon Sands (UK) Ltd and others v HMRC [2025] EWCA Civ 279, marked a victory for taxpayers and provides clarity on how capital allowances are treated on pre-construction development costs.

Capital allowances are a form of tax relief that businesses can claim when they pay out on capital expenditures. This particular case arose because of a capital allowances claim for expenditure on pre-construction development work in the years before the resulting buildings became operational. H M Revenue & Customs (HMRC) contended that this expenditure did not fit within the legal definition of what can qualify as a capital allowance and so denied the claim.

The Court of Appeal, however ruled that HMRC’s view was too narrow and upheld the taxpayer’s claim. The Court developed a ‘three-limb’ test for whether expenditure can qualify, as follows:

1. The taxpayer can demonstrate that the expenditure informed the design or installation of the asset in question.
2. The asset in question was actually acquired or constructed.
3. The expenditure wasn’t because of the particular circumstances of the taxpayer. This would, for instance, rule out financing costs.

The decision meant that costs for environmental impact assessments, geophysical and geotechnical studies and other design and installation work could qualify for capital allowances.

Is this the end of matters?
Possibly not. HMRC may appeal the case to the Supreme Court. However, the government has committed to looking at how to provide greater clarity on what qualifies for different capital allowances and simplifying the law and tax treatment of predevelopment costs.

Therefore, once the government has digested the results of the decision, they may move to adjust the legislation rather than continue to pursue the matter through the courts.

If you need any advice on how the appeal decision may affect predevelopment expenditure you have made or are planning to make, please get in touch. We would be happy to help you!

See: https://www.gov.uk/government/news/tax-treatment-of-predevelopment-costs-update-on-consultation

Do You Employ Workers in the Gig Economy?
If so, there are now new legal requirements to carry out checks confirming that anyone working in their name is eligible to work in the UK. Previously, these requirements did not apply to ‘gig economy’ and zero-hour workers.

The gig economy refers to short-term, flexible or freelance jobs where workers are paid per “gig” or task, rather than receiving a regular salary or long-term employment contract. These arrangements are often popular in the construction, food delivery, beauty salon and courier service sectors.

Businesses hiring workers in the gig economy will need to ensure they have systems in place to check the status of workers they hire. Failing to comply could result in fines of up to £60,000 per worker, business closures, director disqualifications and potential prison sentences of up to 5 years.

See: https://www.gov.uk/government/news/crackdown-on-illegal-working-and-rogue-employers-in-gig-economy
 
Personal Meat Import Ban Now Extended to Cover All EU Countries
As concern over foot and mouth disease (FMD) cases in Europe continues to grow, travellers are now banned from bringing cattle, sheep, goat and pig meat as well as dairy products from EU countries into Great Britain for personal use.

The ban includes sandwiches, cheese, cured meats, raw meats and milk whether packed or packaged or bought at duty free.
The new restrictions extend those already in place for personal imports from Germany, Hungary, Slovakia and Austria because of outbreaks in those countries.

While FMD does not pose a risk to humans, the effect on animals and the agricultural sector can be significant.

The government as confirmed that there are currently no cases of FMD in the UK, however the UK Chief Veterinary Officer is urging livestock keepers to remain vigilant.

See: https://www.gov.uk/government/news/government-extends-ban-on-personal-meat-imports-to-protect-farmers-from-foot-and-mouth

11th April 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

US Tariff Increases: 7 Concerns and What You Can Do About Them
The US tariff saga continues to rumble on, and global markets have been tumbling. Retaliations - repeated in some cases - between certain countries and the US give more force to a growing global trade dispute.

Even though the UK’s main rate is a relatively low 10% (25% on British cars) - and you might not trade with the US at all - there is growing concern about what this means for global supply chains, pricing and business confidence.

What could this all mean for your business? Read on as we look at 7 areas of concern and what you can do to protect your business.

1. Confidence is Falling – And That Could Hit Your Sales
Financial markets have dropped and business confidence has taken a knock. When uncertainty rises, both consumers and businesses tend to hold off on spending – especially on goods and services they see as non-essential.

Even if you don’t sell internationally, your customers might pull back. That could mean fewer orders, delayed projects, or reduced repeat business – especially if your product or service is considered a “nice-to-have.”

What you can do:

• Focus on customer retention. You could consider offering flexible options, smaller packages or promotions that keep work flowing. Staying visible and keeping communication open are also key.
• Think creatively about how you present the value of your business to customers, so that they see your products or services as something they can’t do without, even in lean times.
• Review your sales mix: do you rely heavily on one or two customers or sectors that might be vulnerable?

Tip: Review your last 6 months sales. Are there any signs of slowing down? If so, look at how to build a simple cash buffer now or explore ways to even out income.

2. Costs May Rise
Tariffs add costs all along the supply chain. Even if you buy from UK suppliers, they may be importing parts, packaging or materials that are now more expensive.

Your costs could rise quietly. Even if the increases are small, they can add up over time and erode your margins.

What you can do:

• Look at setting up a cost tracker for the things you buy and monitor it on a monthly basis. Just a spreadsheet can do the job – if you need help we can help you to set this up.
• Then, review your profit margins and consider whether you need to adjust your own pricing.

Tip: If you haven’t done a cost review in the last six months, now’s the time. We can help you to compare supplier prices or look at your gross margin trends.

3. Understand How Your Customers Are Being Affected
Even if you are not directly affected, your customers might be. You might begin to notice changes in order sizes, slower repeat business, or requests for longer payment terms. However, without understanding why this is happening, it’s hard to respond effectively.

What you can do:

• Talk to your top clients. Ask them how their business is doing, what challenges they’re facing and whether they’re seeing cost increases or changes in demand.
• You can then use that insight to anticipate trends, adjust what you are offering to customers or support them more proactively.

Tip: Consider doing a quick check-in with your top 5-10 customers this month – a short email or phone call can uncover valuable information and strengthen the relationship at the same time.

4. You May Need to Rethink Supplier Relationships
Your suppliers may be facing pressure from tariffs, transport delays or their own cost increases. So, you may see price hikes, but also product shortages or slower delivery times as your suppliers struggle to maintain reliability.

What you can do:

• Check your top 3-5 suppliers. Where do they source from? Is that likely to create an issue for them and you?
• You could also build a back-up plan in case one supplier becomes unavailable or unaffordable.

Tip: Don’t wait for a crisis. Reach out to your key suppliers now and ask if they expect any disruption or price changes in the next 3-6 months.

5. You Might Be Affected by What Happens to Other Countries
The US has sharply increased tariffs on China and other major economies and some are retaliating. While changes to US tariffs don’t directly impact on the UK’s own trade relationships with other countries, the potential upshot is that global supply chains could be redrawn.

That may mean some new opportunities for UK businesses, but it could also mean that products become harder or more expensive to get.

What you can do:

• Firstly, look at your stock and equipment. Are there any items you’d struggle to replace quickly?
• If you’re planning to invest in equipment, could there be any value in doing it now before prices rise further?

Tip: If you import or rely on imported goods – even indirectly – it may be worth speaking to your supplier about forward ordering or locking in current prices.

6. The UK May Respond Too – Which Could Shift Things Again
The UK government is currently consulting on whether to introduce retaliatory tariffs, with the consultation not due to end until 1 May 2025. It is under pressure to act and if it does, that could shift the landscape again, which could affect prices, sourcing options and trade relationships.

This could mean more changes to the cost or availability of goods, particularly if you rely on imports. But it could also create new opportunities – especially if UK-made goods become more competitive or if others pull out of markets you could move into.

What you can do:

• Be cautious about entering long-term supplier contracts if there’s a risk of tariff-related changes in the coming months.
• Look out for new local suppliers who may become more competitive if tariffs rise.
• Explore whether any competitors are stepping back from markets or products you could step into.
• If you manufacture or source items in the UK, consider whether the changing conditions could allow you to promote “locally made” or tariff-free products more effectively.

Tip: Uncertainty often leads to hesitation. If you’re able to act quickly, you might spot growth opportunities others miss. Stay informed and curious.

7. Stay Focused on What You Can Control
There’s a lot of noise and uncertainty and with so much change happening globally, it’s easy to feel like your business is at the mercy of outside forces. While you can’t control tariff decisions or market reactions, you can stay proactive in how you respond.

Businesses that stay alert and adaptable tend to handle economic shocks better and will often come out stronger on the other side.

What you can do:

• Review your cashflow and key costs regularly. Even a simple monthly check-in can help you spot trends early.
• Keep communication open with customers and suppliers so you’re not surprised by any changes.
• Take time to assess where your business is most exposed, whether that’s in pricing, sourcing of materials or services, or customer demand.

Tip: Uncertainty is a good time to revisit the basics – know what you spend, what you earn, and how long you could keep going if things got tight. Even simple tracking can give you clarity and confidence.

Final word
While the tariffs may feel far away, their effects could come closer to home quickly. So, it’s an important time to pay attention to what is happening and any early indications that your business could be affected. We are here to help you stay ahead of the curve and make informed decisions.

Do you need help spotting the risks (or opportunities) for your business? Get in touch and let’s talk it through.
 
New Companies House ID Checks: What They Mean for You
From 8 April 2025, Companies House has launched a new identity verification system as part of changes under the Economic Crime and Corporate Transparency Act 2023.

If you’re a director, person with significant control (PSC), or someone who files on behalf of a company, this applies to you.

What’s Changing
Everyone involved in setting up or running a UK company will soon need to verify their identity, either:

• Through their GOV.UK One Login, or 
• Via a registered Authorised Corporate Service Provider (ACSP) - like us.

ACSPs have been able to register since 18 March 2025 with individuals being able to start verifying their identity via GOV.UK from 8 April 2025.

While verification is currently voluntary, it will become a legal requirement later in the year, likely autumn 2025. For existing companies, it will be built into the confirmation statement process.

How We Can Help
As your accountant and an approved ACSP, we can handle the identity verification for you. That means:

• No need to manage GOV.UK logins or extra admin. 
• We’ll complete the checks and ensure they’re properly recorded. 
• You’ll be compliant ahead of the deadline.

This is especially useful if your company has multiple directors or PSCs.

If we already look after your company filings, we’ll be building ID checks into our work over the next few months.

If you currently look after your own company filings and would like help, please get in touch. We would be happy to help you!

See: https://www.gov.uk/government/news/companies-house-starts-to-verify-identities
 
Stress Awareness Month: Tackle Workplace Stress
During April, the Health and Safety Executive’s (HSE) Working Minds campaign is inviting employers to follow five simple steps that can help to prevent and reduce workplace stress.

The Working Minds campaign involves 5 Rs:

• Reach out and have conversations.
• Recognised the signs and causes of stress.
• Respond to any risks you have identified.
• Reflect on actions you’ve agreed and taken.
• Make it Routine.

Employers are being encouraged to focus on one R for each week of the month.

The Working Minds campaign is designed to help employers meet their legal duty to prevent work related stress and support good mental health in the workplace. It includes a range of tools that includes free online learning, Talking Toolkits, risk assessment templates and examples.

See: https://press.hse.gov.uk/2025/04/02/april-is-stress-awareness-month-tackle-stress-in-the-workplace-with-five-steps-in-five-weeks-2
 
New neonatal care law now in force
The Neonatal Care (Leave and Pay) Act 2023 came into force on 6 April 2025. This law provides a new leave and pay entitlement for parents with a baby in neonatal care.

Depending on how long their baby is in neonatal care, parents will now have the right to have up to 12 weeks leave and pay. This right is in addition to other time off and pay.

Who is the leave and pay available to?
The time off is available to the birth parent, father or partner, spouse, civil partner or adoptive parent.

When can the leave be taken?
A parent with a baby up to 28 days old that is admitted to neonatal care is eligible for up to 12 weeks leave. The leave must be taken within 68 weeks of the baby’s birth.

How do parents need to inform their employer?
Parents can self-declare and should contact their workplace HR representative to go through the specifics of their personal situation.

Acas has provided some helpful guidance on the new law, which can be found here.

Dan Ellis, Acas Interim Chief Executive, said: “Becoming new parents can be an incredibly stressful time, especially if their baby requires care in hospital for a while. Any employee that requires time off to help care for their child in these circumstances should be treated with compassion and understanding. Our advice provides employers and managers with guidance on how they can support staff members who need to take neonatal care leave.”

See: https://www.acas.org.uk/acas-publishes-new-guidance-on-neonatal-care-leave
 
Why Seeking Help When Your Business Faces Insolvency is the Right Move
Running a business comes with financial risks, and sometimes, companies struggle to stay afloat. While facing insolvency is undoubtedly stressful, seeking professional help early can prevent serious legal consequences.

A recent case involving a Cheshire builder highlights the risks of mishandling insolvency and why business owners should act responsibly when financial difficulties arise.

A Cautionary Tale: Builder Faces Sentence for Misconduct
Gary Roberts, a builder from Cheshire, was recently sentenced to six months in prison, suspended for two years, after fraudulent behaviour while his company, GR Developments 1 Ltd, was in financial trouble.

In 2021, he took £17,000 from a customer for home improvements, knowing his company was insolvent, and failed to complete the work. He also paid himself over £11,000 from company funds at a time when the business was entering liquidation.

His actions left the homeowner out of pocket and living in a home with its back exposed to the elements. He has been banned from serving as a company director for 10 years and has been ordered to pay more than £10,000 in compensation to his victim.

The Insolvency Service emphasised the seriousness of his misconduct, noting that businesses have a duty to act responsibly even when facing financial difficulties.

Why Seeking Help is Crucial
While seeking help may seem embarrassing, it can bring benefits that may even include saving the business from going under. Here are some key benefits.

1. Avoid Legal Consequences – Directors who continue trading or remove assets when they know a company is insolvent risk severe penalties, including disqualification, fines, and even imprisonment.
   
2. Protect Your Reputation – Mishandling insolvency can cause lasting damage to your professional reputation, making it difficult to secure future business opportunities or financial support. 
3. Maximise Financial Options – Consulting insolvency professionals early can help explore options like restructuring, administration, or voluntary liquidation, potentially saving the business or reducing losses. 
4. Minimise Losses for Creditors and Customers – Acting responsibly ensures that customers, suppliers, and creditors are treated fairly, reducing financial harm to others. 
5. Ensure Compliance with the Law – Insolvency laws exist to protect businesses and the wider economy. Seeking expert advice ensures you follow the correct legal processes and avoid doing something, even unintentionally, that creates problems for you later.

Conclusion
Facing insolvency is challenging, but acting responsibly can protect you, your business, and your stakeholders. The case of Gary Roberts serves as a reminder that failing to handle insolvency properly can lead to severe consequences.

If you are concerned that your business may be in financial trouble, don’t wait - give us a call for a confidential, no blame discussion that will help you to navigate the situation legally and ethically.

See: https://www.gov.uk/government/news/cheshire-builder-sentenced-after-taking-payments-from-customer-for-work-he-did-not-complete

Post Office Moving to Full Franchising
The Post Office has announced plans to transfer its last 108 company-run branches to franchise partners, completing its move to a fully franchised network.

The change, due by autumn (subject to government funding), affects around 1,000 staff, who will be offered roles with new owners or voluntary redundancy.
Post Office chairman Nigel Railton has said that the 108 branches will stay in place or relocate nearby.

New franchisees may include Tesco, Ryman, and independent sub-postmasters, which may bring Post Office counters into new retail settings.

Concerns and Reactions
The Communication Workers Union (CWU) has criticised the plan as ‘privatisation by the back door’ and called for government intervention. They argue that franchising has already led to a decline in service levels in some areas.

What’s Next
The Post Office says franchising will help save £40m and improve postmaster pay by up to 10%, while still meeting its commitment to maintain at least 11,500 branches across the UK. Local consultation on branch changes is expected in the coming weeks.

Tip for business owners: If your business relies on nearby Post Office services, keep an eye out for local updates and consider alternative access points or digital solutions if service levels change.

See: https://www.bbc.co.uk/news/articles/cd02nr0y0rjo
 
Could the Home Building Fund Help You?
Homes England has a Home Building Fund available to help housebuilders based in England that are struggling to access finance from traditional lenders.
Whether the homes are destined for sale or rent, the Fund can provide loans that are tailored to your business’ circumstances and can be used to pay for development costs.

In order to qualify for help, you need to:

• Be a UK-registered corporate entity or limited liability partnership.
• Be planning to build 5 or more homes on a site in England.
• Have outline planning permission in place on land that you have a controlling interest in.

To learn more about the Fund, see: https://www.gov.uk/guidance/levelling-up-home-building-fund-development-finance 

4th April 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

UK Government requests views to shape response to US tariffs
The UK Government is currently considering its response to the ‘reciprocal tariffs’ announced by the US President Donald Trump on 2 April.

Under the plans, a range of products exported from the UK to the USA would be subject to 10% tariffs. This is in addition to a 25% global tariff on cars, steel and aluminium imported into the USA. On Thursday last week, Business and Trade Secretary Jonathan Reynolds told Parliament that the UK is disappointed with the US tariffs and will continue constructive discussions with the US on a wider deal.

UK companies are being invited to give their views on what any future UK response should look like by providing feedback to questions asking them the average value of their US imports, the impact of any possible UK tariffs and how they would adjust to them.

The Government has also published an indicative list of the goods imported from the US that may be considered in a future UK response. The list does not include products in the wider public interest issues, such as medical supplies and military equipment.

The Business and Trade Secretary said “Our cool-headed, pragmatic approach means that talks with the US will continue to reflect our mandate to deliver economic stability, as we press the case for a trading relationship that supports businesses on both sides of the Atlantic, and reflects our Plan for Change and the best interests of the UK public.”

Ministers will continue to meet a broad range of businesses in the coming days to provide support and set out the Government’s priority of defending the interests of UK industry. 

The four-week Request for Input will be open until Thursday 1 May and can be viewed here: https://www.gov.uk/government/publications/request-for-input-on-potential-uk-measures-in-response-to-us-tariffs
 
Leadership Lessons for Growing Your Business
Growing a small business is exciting, but it comes with challenges—especially when it comes to keeping your team aligned and maintaining your company’s culture.

The Institute of Chartered Accountants in England and Wales (ICAEW) recently published an insight article on Five Leadership Lessons for a Growth Mindset.

The article features advice from Rachel Nutt, a senior partner at MHA, on some of the leadership lessons she has learned from the growth that has taken place in her own business.

While MHA is now a £200m business, the key lessons discussed are useful to businesses of all sizes. Here are some key lessons for business owners looking to scale without losing what makes their business special. 

Live Your Business Values
Many businesses define their core values, but as they grow, those values can get lost. New hires bring different experiences, and over time, people may start working in ways that don’t quite match your original vision.

To keep the business on track, you need to ensure that values are more than just words - they should guide decision-making at every level. 

For example, if a high-performing employee is good at bringing in sales but doesn’t collaborate well with the team, it’s important to address that. Focusing only on financial success can weaken company culture. Instead, you should look to reward employees who not only achieve results but also contribute positively to the work environment. 

Make Big Goals Feel Achievable
Having ambitious targets is important, but if they feel too far out of reach, they can discourage rather than motivate. Breaking big goals into smaller, clear steps makes it easier for your employees to see progress and stay engaged. 

For example, rather than announcing a long-term revenue target that seems unrealistic, you could highlight past successes and show how each milestone brings the business closer to the larger goal. This approach helps employees stay motivated and invested in the growth of the business. 

Create a Culture Where Mistakes Are Learning Opportunities
Fear of failure can hold a business back. When employees are afraid to take risks, innovation slows down. When leaders in the business acknowledge their own mistakes and treat failures as learning experiences this sets the tone for a more adaptable and resilient business. 

Encouraging employees to take calculated risks—and supporting them even when things don’t go as planned—helps build a culture of problem-solving and creativity. When employees feel safe to try new things, your business is more likely to develop innovative solutions and stay competitive. 

Recognise When It’s Time to Let Go
Not everyone will be the right fit for a growing business. Some employees will thrive with change, while others may struggle. It’s important to recognise when someone is no longer aligned with the direction of your business. 

Difficult conversations about performance and expectations are necessary to maintain a strong team. While it’s never easy to part ways with an employee, keeping someone in a role that no longer suits them can create long-term problems for both the individual and your business. If you can make these decisions with fairness and clarity it will help ensure that your teams remain strong and focused. 

Lead with Authenticity
Successful leaders don’t try to fit into a mould—they bring their own strengths and personalities into their leadership style. Employees respond best to leaders who are genuine, approachable, and clear about their vision. 

Rather than focusing on what a leader “should” look like, you should embrace your own approach and encourage a workplace culture that values individuality. A diverse and inclusive leadership style can strengthen a business by bringing different perspectives and ideas into decision-making. 

Final Thoughts
As your business grows, maintaining a strong culture and clear leadership approach becomes even more important. By reinforcing company values, setting realistic goals, creating a supportive environment for learning, making tough but necessary staffing decisions, and leading with authenticity, you can navigate growth successfully while keeping your team engaged and motivated.

As experienced business advisers we have helped many of our clients successfully grow their business. Why not ask us for our “57 Ways to Grow Your Business” guide designed to help you maintain profitability and strengthen your position in the market.

See: https://www.icaew.com/insights/viewpoints-on-the-news/2025/mar-2025/five-leadership-lessons-for-a-growth-mindset
 
Workplace Communication: Survey Reveals Employee Frustrations 
A new survey by workplace expert Acas has revealed that nearly a third (31%) of employees dislike using video calls at work, with other communication methods also causing frustration among workers. 

The survey asked employees which methods of workplace communication they found most irritating. The results showed: 

• 31% of employees dislike video calls. 
• 25% find messaging apps such as Teams and Zoom irritating.
• 21% dislike phone calls. 
• 11% even find face-to-face conversations frustrating. 

While most employees are comfortable with various communication methods, these findings highlight that preferences vary significantly in the workplace. 

Finding the Right Balance 
Acas Interim Chief Executive Dan Ellis commented on the findings: 

“The way we communicate at work can impact us all. Our survey reveals that most employees are fine with different types of communication, but it is clear that for some people a particular method is better. 

"We know good communication is really important to business success. The key for bosses is talking to staff to find out what works for them as well as the business, and finding solutions that encourage people to talk to each other most effectively.” 

The Importance of Communication Flexibility 
The survey results suggest that you should be mindful of how communication methods in your business’ workplace affect productivity and employee satisfaction. Relying too heavily on one form of communication, particularly video calls or instant messaging, could lead to frustration among your staff. 

You can take proactive steps to ensure workplace communication remains effective by: 

• Offering a mix of communication options to suit different preferences.
  
• Encouraging teams to agree on preferred methods for different types of discussions. 
• Being mindful of “video call fatigue” and not overusing virtual meetings. 
• Ensuring that communication remains clear, concise, and purposeful. 

By taking these considerations into account, you can create a more efficient and comfortable working environment that supports employee engagement and productivity. 

See: https://www.acas.org.uk/video-calls-most-irritating-form-of-workplace-communication
 
Child Benefit Increases from 7 April: What Employers Need to Know
From 7 April 2025, families receiving Child Benefit will see an increase in their payments. HM Revenue and Customs (HMRC) has announced that the weekly rate will rise to £26.05 for the eldest or only child and £17.25 for each additional child. This means an annual payment of £1,354.60 for the first child and £897 for each subsequent child. These payments, usually made every four weeks, are automatically into claimants’ bank accounts.

One way parents can manage their Child Benefit is via the HMRC app, which allows them to make and adjust claims and update their details.

What This Means for Employers
While Child Benefit is a personal entitlement for families, there are several ways this update can be relevant to businesses and employers:

• Supporting Employees’ Financial Wellbeing: This increase in Child Benefit can provide a small but valuable financial boost to employees with children. Encouraging staff to check their eligibility and claim what they are entitled to can help reduce financial stress and improve overall wellbeing. 
• Payroll Considerations and High-Income Employees: Employees earning between £60,000 and £80,000 may be subject to the High Income Child Benefit Charge (HICBC). From summer 2025, affected employees will be able to opt to have this charge deducted via their PAYE tax code, reducing the need to file a Self Assessment tax return. Employers may need to provide guidance on this option and ensure payroll systems are updated if and when new tax codes are received from HMRC. 
• Maternity and Parental Leave Advice: Employees taking maternity or parental leave should be reminded to claim Child Benefit as soon as possible after their child’s birth. Claims can only be backdated up to three months, so prompt action is crucial. 
• National Insurance Credits Awareness: Claiming Child Benefit also provides National Insurance (NI) credits, which contribute to an individual’s State Pension entitlement. Employees who choose to opt out of receiving payments (to avoid HICBC) should still make a claim to secure these NI credits.

Key Actions for Employers

• Inform staff about the Child Benefit increase and encourage eligible employees to claim. 
• Educate high-income employees about the upcoming PAYE tax code option for HICBC. 
• Ensure payroll teams are aware of the changes, particularly around HICBC deductions. 
• Remind new parents of the importance of claiming Child Benefit promptly to secure payments and NI credits.

By keeping employees informed about these changes, businesses can contribute to their financial wellbeing and support parents in managing their family finances.

If you or your employees would like any further information or help, please feel free to contact us. We would be happy to help!

See: https://www.gov.uk/government/news/child-benefit-boost-for-millions-of-families
 
Car Manufacturers Fined £77 Million for Illegal Collusion
The Competition and Markets Authority (CMA) has fined 10 car manufacturers and two trade bodies a total of £77.7 million after uncovering illegal agreements that distorted competition in the UK market.

The investigation revealed two major breaches of competition law: restricting advertising claims about vehicle recyclability and colluding on the cost of recycling end-of-life vehicles (ELVs).

Here are some key findings from the investigation

1. Restricting Sustainability Advertising
Car manufacturers are legally required to provide information about the recyclability of their vehicles. However, the CMA found that:

• Manufacturers agreed not to advertise if their vehicles exceeded the minimum recyclability requirement of 85%, even when the actual percentage was higher. 
• With the exception of Renault, they also agreed not to disclose the percentage of recycled material used in vehicle production. 
• The agreement, active between May 2002 and September 2017, was documented in the ‘ELV Charta’ - sometimes referred to as a “gentleman’s agreement” – and had the intention of avoiding a competitive race among manufacturers in relation to recyclability advertising.

This prevented consumers from making fully informed choices about a vehicle’s sustainability and may have discouraged innovation in eco-friendly technologies.

2. Buyers’ Cartel on Recycling Costs
Vehicle manufacturers are required to provide a free recycling service for customers’ old or written-off cars. This service is often outsourced to third parties. However, the CMA found that:

• Eight manufacturers - BMW, Ford, Mercedes-Benz, Peugeot Citroen, Renault, Toyota, Vauxhall, and Volkswagen - agreed not to pay companies for ELV recycling services. 
• Additional companies and trade bodies, including Nissan, Mitsubishi, Jaguar Land Rover, ACEA (European Automobile Manufacturers’ Association), and SMMT (Society of Motor Manufacturers & Traders), later joined the agreement. 
• The agreement, which lasted from April 2004 to May 2018, prevented recycling service providers from negotiating fair pricing.

This anti-competitive practice discouraged investment in greener recycling solutions and potentially increased costs for recycling firms.

Consequences and Fines
All involved companies, except Mercedes-Benz, which received immunity for reporting the cartel, have agreed to settle and pay fines.

Some companies, including Stellantis (Peugeot Citroen, Vauxhall, and Opel), Mitsubishi, and SMMT, cooperated with the CMA early and received reductions in their fines under the leniency policy.

The largest fines include:

• Ford: £18.5 million
• Volkswagen: £14.8 million
• BMW: £11.1 million
• Nissan & Renault: £9.98 million (shared fine, plus an additional £2.8 million for Nissan)

The fines must be paid by 2 June 2025.
See: https://www.gov.uk/government/news/car-industry-settles-competition-law-case
 
Supporting Pub Tenants: New Minimum Standards for Short Agreements
Pub companies often use a tenancy at will or short agreement to allow a tenant to begin running a pub while a longer-term agreement is negotiated. This can be a valuable opportunity for both parties to assess the business relationship and can serve as a stepping stone for new operators entering the trade.

However, for this arrangement to be successful, it is essential that the operator gets off to the right start. To support tenants on short agreements, pub companies regulated under the Pubs Code have collaborated with the Pubs Code Adjudicator (PCA) to establish a consistent set of minimum standards.

These standards aim to provide clarity and fairness to tenants while ensuring best practices are upheld by pub companies.
 
Key Considerations for Tenants on Short Agreements
Most rights under the Pubs Code do not apply to tenants on short agreements. However, tenants entering into such an agreement are entitled to certain protections, including:

• Rights to certain information from their pub company. 
• Advice recommending that they complete pubs entry training, unless they already have relevant business experience. 
• A clear understanding that investing personal funds into the pub is not advisable, as these agreements can be terminated at short notice.

A short agreement under the Pubs Code is defined as a tied agreement (where the tenant is required to buy products from the pub company) that entitles the tenant to occupy the pub for less than 12 months.

Why These Standards Matter
Fiona Dickie, the Pubs Code Adjudicator, emphasised the importance of fairness for tenants on short agreements, stating: "Everyone wants tied tenants to do well, and getting off to a strong start is essential. Those on tenancies at will and other short agreements are entitled to be treated fairly. It is particularly important that they should be advised not to invest their own money in the pub when on agreements which can be terminated at short notice. I’m pleased that the regulated pub companies have agreed to a consistent set of minimum standards to reflect their business practices over and above what the Pubs Code requires them to do. This should help tied tenants to understand what they can expect from their relationship with them."

The newly established minimum standards provide greater transparency and fairness for tenants entering into short agreements. By clearly outlining expectations and reinforcing best practices, these measures help to create a more supportive environment for pub tenants and strengthen their business prospects.

Where to Find More Information
The full Short Agreements - Minimum Standards (March 2025) document is available on the GOV.UK website. Tenants considering a short agreement are encouraged to review these standards to better understand their rights and responsibilities in their business relationship with pub companies.

By implementing these standards, the industry takes an important step toward fostering fairness, sustainability, and long-term success for tenants in the pub sector.
See: https://www.gov.uk/government/news/pub-owning-businesses-agree-minimum-standards-for-tenants-on-short-agreements
 
UK Further Tightens Import Restrictions Amid Foot and Mouth Disease Concerns 
The UK government has further strengthened measures to prevent the spread of foot and mouth disease (FMD) following another confirmed case in Hungary, near the Austrian border. 

As a precaution, the UK has suspended the commercial import of cattle, pigs, sheep, goats, wild ruminants, and their untreated products - including fresh meat and dairy - from Austria. This extends existing restrictions already placed on imports from Slovakia, Hungary, and Germany. 

Travellers are also now banned from bringing meat, dairy, and animal by-products from Austria into Great Britain, in line with restrictions previously imposed on Germany, Hungary, and Slovakia. 

UK Chief Veterinary Officer Christine Middlemiss urged livestock keepers to remain vigilant, stressing the importance of scrupulous biosecurity and immediate reporting of any suspected cases. Farming Minister Daniel Zeichner confirmed that further restrictions would be introduced if necessary. 

Although FMD poses no risk to human health, it is a highly contagious disease affecting cloven-hoofed animals, with severe economic consequences. Livestock keepers are advised to monitor for clinical signs, such as sores, blisters, lameness, and fever. 

See: https://www.gov.uk/government/news/import-ban-of-cattle-pigs-sheep-and-deer-from-austria-to-protect-farmers
 
Workplace rules on separating recycling and waste now in force
New rules on how recycling and waste should be sorted in workplaces came into force in England on 31 March 2025.

The rules are designed to simplify recycling procedures while reducing the amount of waste sent to landfill or for incineration.

Under the new rules, workplaces with 10 or more employees need to arrange for collection of:

• Dry recyclable materials – this would include plastic, metal, glass, paper and card.
• Food waste.
• Residual (non-recyclable) waste.

Depending on their waste collector, workplaces may need to separate paper and card from other dry recyclable materials.

The Environment Agency is the regulator for the new Simpler Recycling rules. They have confirmed their commitment to supporting businesses, both waste producers and collectors in applying the rules.

Further recycling changes will come into force for businesses and households over the next couple of years as the Simpler Recycling rules take effect.
See: https://www.gov.uk/government/news/new-rules-simplifying-recycling-for-workplaces-in-england-come-into-force
 

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.