3rd October 2025 – Hillmans Weekly Update

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

Have a great weekend.

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

BUDGET 2025 DATE - 26 NOVEMBER

The Chancellor will deliver Autumn Budget 2025 on 26 November 2025. The content of the Autumn Budget is anticipated to address significant fiscal challenges, including potential tax rises to address the public finance deficit.
 
Before turning to Autumn Budget 2025, we must note that some of the ramifications of Autumn Budget 2024 are still to come. These include: 

• Capital Gains Tax (CGT) - in addition to the tax hikes that have already taken effect on 30 October 2024 and 6 April 2025, the rate of CGT where Business Asset Disposal Relief (BADR) applies is set to further increase from 14% to 18% from 6 April 2026.
• Inheritance Tax (IHT) - as initially announced in the last budget, IHT increases are already on the cards due to:
  • Restrictions on 100% relief for business and agricultural property from 6 April 2026.
  • The inclusion of unused pension funds and death benefits in IHT estates from 6 April 2027.

Now let’s consider some of the potential announcements in Autumn Budget 2025.
 
What’s unlikely to change?
 
Labour’s 2024 manifesto pledged that there would be no increases to National Insurance, the basic, higher or additional rates of Income Tax, or VAT. 
 
The Corporate Tax Roadmap of October 2024 also included commitments not to increase the 25% main rate of Corporation Tax and to retain the small profits rate and marginal relief. The £1 million annual investment allowance for plant and machinery capital allowances is also due to be preserved, as is the system of permanent full expensing.
 
Despite the government saying that extending frozen Income Tax thresholds any longer would hurt working people, it now seems inevitable that the thresholds will remain at their current levels until 5 April 2030, mirroring the time period for which IHT thresholds are frozen.
 
What could change? 

• The scope of National Insurance Contributions (NICs) could be widened to include landlords, levelling the playing field with those running their own trading business.
• Pension savings are currently afforded tax relief at the saver's marginal Income Tax rate (20%, 40% or 45%). The rate could be capped at, say, 30%.
• Salary sacrifice for additional employer pension contributions is currently exempt from the Benefit In Kind rules. Removing the exemption would make the contributions subject to NICs and Income Tax.
• The rates of CGT (currently 18% for basic rate taxpayers and 24% for higher/additional rate taxpayers) could be aligned with those for Income Tax, making the rate as high as 45%.
• There may be further restrictions to available IHT reliefs, possibly by introducing limits on exempt lifetime gifting.
• The VAT registration threshold, currently £90,000, may be lowered or abolished.
• The rate of VAT on domestic fuel is currently 5%. There are rumours that, in order to help with the cost of living crisis, such supplies will become zero-rated.

It isn’t possible to predict what the Chancellor will announce on 26 November, but it’s worth considering what may happen so you can be prepared. If you wish to discuss any of these issues in more detail, please get in touch – we’d be happy to help!
 
SPOTLIGHT ON UMBRELLA COMPANIES

While there is no legal definition, ‘Umbrella Companies’ is a term used to describe Employment Intermediaries that employ temporary workers who go on to work for different agencies and/or end clients (ultimate recipient of the services). Umbrella companies will often contract with recruitment agencies, who then source the work opportunities.
 
'Employment intermediaries' rules apply to staff and employment agencies:

• Agency workers are generally subject to PAYE and NICs on their earnings.
• The rules for determining employment status changed in 2014: workers who are supplied through an agency and are subject to (or to a right of) supervision, direction or control by any person will automatically be treated as employees.
• Special reporting instructions for employment intermediaries (agencies) who supply self-employed workers apply from April 2015. These make it difficult for agencies and other employment intermediaries to pay workers gross i.e. treating workers as being self-employed in their own right. Returns are to be completed from 6 April 2015 for each quarter ending 6 July, 6 October, 6 January and 6 April and late filing penalties apply.

In June 2025, HMRC released Spotlight 71: 'Warning for agency workers and contractors who are moved between umbrella companies'. This Spotlight highlights signs that agency workers and contractors should be aware of and that may indicate that the umbrella company they are engaged with is operating a tax avoidance scheme. 
 
HMRC highlight the areas where taxpayers should be extra vigilant if they are engaged with an umbrella company. Spotlight 71 can be viewed here.
 
VAT ERROR CORRECTION
 
Form VAT652 (Error Correction) was withdrawn on 8 September 2025. The form was used to notify HMRC of VAT return errors that could not be corrected on the next VAT return. The procedure for correcting VAT return errors is now as follows:
 
If you have discovered an error in a VAT return, the first step is to check whether the error can be amended in the VAT return for the period in which the error was discovered. Errors can be amended in the next VAT return if:
 

• The net errors, i.e. output VAT less input VAT errors, are less than £10,000; or
• The net errors are between £10,000 and £50,000 and less than 1% of the Box 6 figure for the VAT return in which the correction is being made.

HMRC have published a new service that allows taxpayers to check whether they need to notify HMRC of any errors on the VAT return – see here.
 
If the errors cannot be amended on the VAT return, they must be disclosed using HMRC’s online error correction service – the service can be accessed using the above link and it requires signing in using a Government Gateway user ID and password.
 
Those who cannot use the online service should notify the error to HMRC's Error Correction Team by post (BT VAT, HMRC, BX9 1WR) or by email (inbox.btcnevaterrorcorrection@hmrc.gov.uk).
 
If the error was a result of careless behaviour, HMRC is still entitled to charge penalties in the event that they discover it at a later date, even if it has already been adjusted on the VAT return. HMRC advise that including the adjustment on the return does not constitute a disclosure. This means that without also notifying HMRC using the online error correction service, unprompted penalties could still be charged. 
 
SIDEWAYS LOSS RELIEF DISALLOWED
 
In a recent First Tier Tribunal case, Charlotte MacDonald v HMRC, a taxpayer was denied sideways loss relief for losses that she had incurred when organising an annual 'woodland shoot' on an estate because the activities were not carried on with a view to the realisation of profits.
 
A taxpayer can offset trading losses against their general income in the year of the loss, the previous year, or both. In order to do this, the loss must have arisen from a trade that was carried on:

• on a commercial basis, and
• with a view to the realisation of profits of the trade.

HMRC argued that the shoot was not commercial in nature and that there had been no view to a realisation of profits.
The First Tier Tribunal found that the shoot was carried on on a commercial basis, in that it was not merely a hobby for the taxpayer. However, since the shoot had started, it had made a loss in every year except one. Barely any profit had been made in 15 years, and there was no reasonable expectation that a profit would be made. 
On this basis, the conditions for claiming sideways loss relief were not met and the appeal was dismissed.
 
ADVISORY FUEL RATES FOR COMPANY CARS
 
The table below sets out the HMRC advisory fuel rates from 1 September 2025. These are the suggested reimbursement rates for employees' private mileage using their company car.
 
Where the employer does not pay for any fuel for the company car, these are the amounts that can be reimbursed in respect of business journeys without the amount being taxable on the employee.
 
Advisory Fuel Rates

• Petrol
  • 1400cc or less: 12p (12p)
  • 1401cc to 2000cc: 14p (14p)
  • Over 2000cc: 22p (22p)
• Diesel
  • 1600cc or less: 12p (11p)
  • 1601cc to 2000cc: 13p (13p)
  • Over 2000cc: 18p (17p)
• LPG
  • 1400cc or less: 11p (11p)
  • 1401cc to 2000cc: 13p (13p)
  • Over 2000cc: 21p (21p)

Previous rates are shown in brackets.
 
You can also continue to use the previous rates for up to 1 month from the date the new rates apply.
 
Note that for hybrid cars, you must use the petrol or diesel rate.
 
For fully electric vehicles the rate is 8p (7p) per mile where the vehicle is charged at home. The rate applicable to vehicles charged using public facilities is 14p per mile. This is the first time there is a separate rate depending on where the car is charged.
 
Employees using their own cars
For employees using their own cars for business purposes, the Advisory Mileage Allowance Payment (AMAP) tax-free reimbursement rate continues to be 45p per mile (plus 5p per passenger) for the first 10,000 business miles, reducing to 25p per mile thereafter. Note that for NIC purposes the employer can continue to reimburse at the 45p rate as the 10,000 mile threshold does not apply.
 
Input VAT
Within the 45p/25p AMAP payments, the amounts in the above table represent the fuel element. The employer is able to reclaim 20/120 of the fuel amount as input VAT provided the claim is supported by a VAT invoice from the filling station. For a 1300cc petrol-engine car, 2 pence per mile can be reclaimed as input VAT (12p x 1/6).

26th September 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

Amazon to close UK grocery stores as focus shifts to online delivery
Amazon is set to close all 19 of its UK Amazon Fresh grocery stores less than five years after launching the till-free sites in London. Five of the stores may be converted into Whole Foods outlets, another grocery brand owned by Amazon.

The closures will affect around 250 staff, and the company has started a consultation process regarding its plans. Amazon has said it will be aiming to redeploy as many staff as possible.

Amazon opened its first UK grocery store in Ealing Broadway in March 2021. Shoppers at Amazon Fresh used a “walk in, pick up, and walk out” model, with purchases billed automatically to their Amazon accounts using in-store cameras and other technology.

Why Amazon is making the change
Amazon said the decision followed a “thorough evaluation” of its operations and the growth potential of online grocery delivery. The company plans to focus on its delivery services, working with partners including Morrisons, Co-op, Iceland, and Gopuff.

Industry analysts suggest the physical stores struggled to offer a differentiated experience. Sucharita Kodali of Forrester commented that Amazon Fresh may not have been set up for success, with issues including store locations and an unproven model in a highly competitive grocery market.

Danni Hewson at AJ Bell noted that the till-less technology “always felt a little awkward,” and feels that Amazon’s strength lies in delivery convenience rather than in-store shopping.

What lessons are there to take?
Amazon’s decision highlights several practical points that can be helpful to businesses of all sizes.

• Test new ideas, but don’t get too attached - trying new approaches is good, but be ready to change or stop them if they aren’t working. Amazon’s rapid pivot shows that even huge companies adjust quickly when their experiments don’t deliver.
  
• Play to your strengths - focus on what your business does best. Amazon is closing stores to concentrate on online delivery, an area where it already has a clear advantage. Think about where your own strengths lie and build on them. 
• Innovations need to have a practical benefit - technology alone isn’t enough. While till-less stores demonstrated how technology can work, they didn’t really solve anything customers needed. Any new system or process should be simple, useful, and solve a real problem for your customers. 
• Be flexible and ready to adapt - markets change quickly. Watch customer behaviour and your competition and be prepared to tweak your approach rather than sticking rigidly to a plan that isn’t working.

Amazon’s decision to close its physical stores highlights an important lesson for all businesses: success often comes from focusing on your strengths, staying agile and responding quickly to changes in the market. While not every experiment will work, each one provides valuable insight that can help you refine your strategy and grow.

For business owners, the key takeaway is to keep evaluating what’s working, identify opportunities to innovate, and make sure your operations are aligned with where you can truly add value. If you want support in assessing your business strategy, planning for growth, or navigating change effectively, give us a call. We would be happy to help you!

See: https://www.bbc.co.uk/news/articles/cx2xnkkn9ywo
 
YouTube Creators Add £2.2bn to UK Economy
A new impact report by Oxford Economics has revealed that YouTube content creators contributed £2.2 billion to the UK economy in 2024 and supported around 45,000 jobs.

The figures highlight how digital content creation has grown into a serious business sector, with creators turning their platforms into careers and even launching companies of their own. For example, Lilly Sabri, who creates fitness videos, has built a community of over six million followers on YouTube, using the platform as a springboard to launch two businesses and create jobs.

A growing marketplace
These numbers are worth noting. The creator economy represents a growing marketplace and offers opportunities for partnering with creators to increase your brand exposure. It can also be worth learning from the way creators build loyal communities online.
 
Opportunities for growth
The “creator economy” indicates that people now want more than just adverts - they want stories, interaction and authenticity. Are there ways that you could lean into that, even in small ways, to find new growth?

For instance, could experimenting with short-form video (TikTok, Instagram Reels, YouTube Shorts), podcasts and email newsletters help you reach customers in spaces where they’re already spending time?

Running behind-the-scenes content, live Q&As, customer spotlights, or collaborating with local influencers who fit with your business can also be beneficial.

These days, it’s about building trust and a sense of community around what you do, not just pushing products.

This development shows that the creator economy isn’t just about social media personalities. It’s part of a wider shift in how value is being created - and for businesses willing to adapt and engage, it could open opportunities.

See: https://www.bbc.co.uk/news/articles/c0knpm6v36go
 
Businessman banned from acting as director after breaching bankruptcy rules
A businessman has been banned from being a company director for eight years after being found to have acted as a director between July 2013 and July 2015 despite being bankrupt since 2005.

In addition to this disqualification, he was sentenced to 22 months in prison in October 2024 for contempt of court in an unrelated case involving company transfers made in breach of a freezing order.

The Insolvency Service’s view
The Insolvency Service made clear that bankruptcy automatically prevents someone from being a company director. They say the ban is there to protect creditors and the public, and that investigations into misconduct will be pursued thoroughly.

What this means for business owners
This case highlights the importance of understanding the restrictions on who can act as a company director.

It is also worth noting that even if paperwork at Companies House suggests a directorship has ended, what matters in practice is whether someone is still involved in running the business.

Therefore, if you are considering bringing someone on as a director in your company or to run the business, it is important to check their status first.

If you are facing bankruptcy yourself, it is best to seek advice early so that you can avoid potential complications.

If you need help with company secretarial or insolvency services, please give us a call. We would be happy to help you!

See: https://www.gov.uk/government/news/former-manchester-businessman-banned-after-ignoring-bankruptcy-restrictions-to-act-as-company-director-for-two-years
 
Building cyber resilience: Preparing for Recovery as Well As Defence
Cyber incidents continue to feature in the news headlines, with airports now joining large UK retailers and manufacturers in experiencing serious disruption to supply chains and services.

While small businesses are unlikely to grab the same headlines, the risks are just as real. For many, a serious cyber-attack could stop their business from trading altogether. That is why it is important not only to think about preventing attacks, but also how your business would recover if the worst happened.

Start with the basics
The National Cyber Security Centre (NCSC) encourages all businesses to adopt the Cyber Essentials programme. This focuses on five straightforward measures that block the majority of common attacks. They cover areas such as keeping software up to date, controlling access to your systems, and protecting your internet connection with firewalls.

These are practical steps that any small business can put in place without needing a large IT team. Some insurers and customers also now look out for Cyber Essentials certification as a reassurance that you take cyber security seriously.

Know what matters most
If your business were hit by an attack, what would you need to keep running at all costs? For some, it might be your customer database. For others, it could be your booking system, your payment processing, or even email.

By thinking this through in advance, you can:

• Identify your most important systems and data
• Decide how you would keep the business going if they were unavailable
• Put in place simple backup and recovery processes so you are not left starting from scratch. 

Plan and practice
NCSC advise that the businesses that recover best from disruption are those that have rehearsed their response. This doesn’t need to be complicated. It could mean, for instance:

• Making sure you know who to call - is it your IT support provider, your bank, or the police’s cyber-crime unit?
• Keeping offline copies of important contact details and documents
• Agreeing who in the business will speak to customers or suppliers if systems are down
• Running through “what if” scenarios with your team so everyone knows their role

Leadership matters
Cyber risk is often left to whoever looks after the IT. However, a cyber-attack poses a risk to the whole business. Just as you would take a threat to your cash flow or business operations seriously, cyber risk needs to be considered in the same way. This includes staying informed about and interested in the steps you’re taking as a business to minimise problems.

Next steps
If you want to build the resilience of your business, consider:

• Reviewing NCSC’s advice for sole traders and small organisations to respond to cyber attacks
• Working towards Cyber Essentials certification
• Making a simple recovery plan covering your critical systems and contacts.

No business can guarantee it won’t be targeted, but by preparing now, you can reduce the damage, recover faster, and keep your customers’ trust.
See: https://www.ncsc.gov.uk/cyberessentials/overview
 
ICO Reminds Businesses to Strengthen Cyber Security
The increasing prevalence of cyber-attacks has also led the Information Commissioner’s Office (ICO) to remind businesses to review their security measures and protect any personal information they hold.

According to government figures, UK businesses experienced an estimated 7.7 million cyber-crimes over the past year. Most small businesses store personal information and rely on digital systems.

Ian Hulme, Executive Director for Regulatory Supervision at the ICO, said: “When people share their personal information with your company, they need to feel confident you’ll do as much as possible to keep that information secure. While cyber-attacks can be very sophisticated, we find that many organisations are still neglecting the very foundations of cyber security.”

Practical steps for businesses
The ICO recommends a number of straightforward actions to strengthen data security:

• Back up data regularly, test the backups and ensure the backup is kept separate from your live data source. 
• Use strong passwords (three random words is a good approach) and enable multi-factor authentication where possible. 
• Be careful about what you say and what documents you have on your screen that others could see, particularly if you work in a public place. 
• Be alert to phishing emails, especially those demanding urgent action or payment. 
• Install and update anti-virus protection on all devices, including those used at home or remotely. 
• Secure your devices by locking screens when unattended and keeping equipment out of sight. 
• Avoid public Wi-Fi or use a secure VPN when working away from the office. 
• Limit access to data so that staff only see what they need for their role. 
• Take care when sharing information, whether via email or by screen-sharing in meetings. 
• Only keep data as long as necessary, and ensure old IT equipment is securely wiped before disposal.

Reporting breaches
If a business suffers a data breach as a result of a cyber-attack, it must be reported to the ICO within 72 hours of becoming aware of it.
Further guidance is available on the ICO’s website.

See: https://ico.org.uk/about-the-ico/media-centre/news-and-blogs/2025/09/information-commissioner-s-office-shares-cyber-security-tips-for-small-businesses/
 
UK and US launch joint task force on the future of financial markets
The Chancellor of the Exchequer, Rachel Reeves, hosted US Treasury Secretary Scott Bessent at Downing Street recently for a joint industry roundtable. The meeting reaffirmed the close ties between London and New York as leading global financial centres and announced the creation of a new Transatlantic Taskforce for Markets of the Future.

Purpose of the task force
The task force will provide recommendations to both governments on how the UK and US can work more closely together in areas such as:

• Digital assets - exploring both short-term opportunities while regulation is still developing and long-term possibilities for innovation in wholesale digital markets.
• Capital markets - identifying ways to make it easier for UK and US firms to raise funds across borders, reducing unnecessary burdens and strengthening competitiveness.

The task force will feed its recommendations through the existing UK-US Financial Regulatory Working Group and report within 180 days.

See: https://www.gov.uk/government/news/boosting-collaboration-between-uk-and-us-financial-systems-to-drive-innovation-and-growth-in-global-markets
 
Preparing For the New One IPO Patents Service
The Intellectual Property Office (IPO) is preparing to launch its new One IPO patents service in early 2026. The system will replace several existing services and change how businesses apply for and manage patents.

The IPO will confirm the launch date 6-8 weeks in advance. Updates will be shared on GOV.UK and via IPO social media channels.

The new service will require an IPO account. Larger patent holders are being contacted directly to help with setup. Smaller patent holders will be able to create an account via the IPO website when the service goes live.

To find out more, check out the IPO’s recent article: Five things patents customers must do for the new One IPO service.

19th September 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

ADJUSTMENTS FOR PRIVATE USE
HMRC will be running a digital campaign aimed at encouraging accurate private use adjustments of business expenses that are reported via Self Assessment returns. 
 
To be allowable for tax, expenses must be 'wholly and exclusively' incurred for the purposes of the business, with any appropriate adjustments being made for private use. Expense claims should therefore be restricted to those that relate to business use only, with partial claims for mixed private and business expenditure being apportioned based on the circumstances of the particular tax year.
 
Following a trial in 2024 involving 600,000 self-assessed individuals who were encouraged to make accurate private use adjustments, HMRC reported widespread inaccurate reporting of disallowable private use. HMRC now intend to open more enquiries into private use adjustments for business expense claims.
 
STATUTORY SICK PAY – CHANGES FOR EMPLOYERS FROM APRIL 2026
The Department for Business and Trade (DBT) has announced that major reforms to Statutory Sick Pay (SSP) will take effect from April 2026. The reforms will enhance employee rights but potentially raise costs for employers. The key changes are:
 

• SSP will be payable from the first day of sickness absence (currently SSP is payable after the third day).
• Employees will no longer be required to meet the £125 per week earnings threshold to qualify for SSP.
• For those earning less than £125 per week, their SSP entitlement will be the lower of:
  • 80% of their normal weekly earnings; and
  • The set rate of SSP (currently £118.75 per week).

The SSP reforms will present an additional cost to many employers already dealing with the recent increases to National Minimum Wage and Employers’ National Insurance.
 
It should be remembered that, unlike statutory maternity and paternity pay, SSP cannot be recovered from HMRC. Forecasting for potential increases in payroll costs will be essential, particularly for businesses that experience high levels of staff absence.
 
Employers are responsible for ensuring employees are paid the right amount of SSP at the right time. It is important to ensure payroll systems are updated in time for April 2026.
 
DILAPIDATED PROPERTY: WHEN CAN SDLT BE RECLAIMED? 
HMRC have issued a warning to taxpayers to be vigilant of tax agents offering to secure Stamp Duty Land Tax (SDLT) repayments on certain property purchases.
 
The warning reminds property buyers to be aware of tax agents claiming that, for a fee, SDLT can be reclaimed on residential property purchases when they are in need of repair. Such properties in need of repair when purchased are generally chargeable to the residential rates of  SDLT, regardless of their condition.
 
HMRC say that claims of this kind often leave the homeowner liable for the full amount of SDLT plus penalties and interest. They are taking action on spurious SDLT repayment claims and will use civil powers to deal with the minority who undermine the tax system.
 
The warning follows the recent Court of Appeal (CoA) decision in Amarjeet and Tajinder Mudan v HMRC. The case found that a property that was dilapidated and vandalised when it was purchased still constituted residential property, meaning higher residential rates of SDLT were payable on the purchase.
 
The couple who bought the property believed that it was not suitable for use as a residence at the point of purchase and, having paid SDLT at the residential rates, subsequently tried to reclaim 'overpaid' SDLT on the on the basis that the property was not fit for human habitation and was non-residential, so the non-residential rates should have applied.
 
The CoA found that property used as a dwelling is residential for SDLT purposes regardless of how dilapidated or unmodernised it is.
 
WINTER FUEL PAYMENT CLAWBACK 
Individuals born before 22 September 1959 and living in England, Wales or Northern Ireland are likely to be entitled to a Winter Fuel Payment (WFP) of between £100 and £300 for this upcoming winter (2025-26). Payments will be made in November or December 2025. However, HMRC will claw back (or “recover”) the WFP if the individual’s income exceeds £35,000 in the year to 5 April 2026.
 
In most cases, the recovery of the 2025-26 WFP will be made automatically via PAYE in the 2026-27 tax year, with HMRC adjusting the recipient's tax code to collect around £17 per month between April 2026 and March 2027 (based on a typical WFP of £200).
 
However, for individuals in self-assessment, recovery of the WFP will instead take place as part of the tax return. For 2025-26 tax returns, HMRC will automatically include the 2025-26 WFP, and the WFP recovery will be collected as part of the balancing payment on 31 January 2027. 
 
Individuals can check whether, and how, HMRC will recover their WFP using a new online tool. 
 
For more on the WFP, its recovery, and opting out, please see https://www.gov.uk/winter-fuel-payment.
 
VAT – RETAILERS AND THIRD-PARTY CONTRACTORS 
We are aware that HMRC is challenging retailers that supply flooring, kitchens, and bathrooms where the retailer refers the customer to third party contractors for fitting services. Typically, HMRC will argue that a single supply of goods and fitting services is being made by the retailer. In many cases, the third-party fitters are not registered for VAT, meaning HMRC can increase the VAT due if the fitting were deemed to be a supply made by the VAT-registered retailer.
 
In a recent First Tier Tribunal case, United Carpets (Franchisor) Limited v HMRC, the Tribunal found that the retailer concerned did not supply fitting services. This was because in-store signage explicitly stated that the store did not provide fitting services. The retailer’s only role in the fitting of the flooring was ‘introductory’ in that it merely put a customer in contact with a fitter. The contracts to fit the flooring were between the customer and the fitter, and the obligation to pay the fitter was with the customer.

To minimise the risk of a challenge from HMRC, both the contractual position as well as the commercial and economic reality of the arrangements need to demonstrate that the supply of goods, and the fitting services, are two distinct and separate supplies made by two different suppliers.
 
ARTIFICIAL INTELLIGENCE – FRIEND OR FOE?
 In a recent Upper Tribunal case (HMRC v Marc Gunnarsson), a taxpayer did not have any professional representation and used Artificial Intelligence (AI) software to draft his skeleton argument in the run-up to the hearing.
 
The Upper Tribunal found that Self-Employment Income Support Scheme (SEISS) claims made by the taxpayer - a director of a limited company - were incorrect and he was required to repay the amounts received.
 
His skeleton argument referred to three First Tier Tribunal decisions to support his case, but those cases did not exist – they had been ‘hallucinated’ by generative AI.
 
The use of AI is increasing, and it is important to verify that the information generated is accurate before relying on it. There is a real danger that inaccurate or fictitious information may be used as evidence in legal proceedings.
 
Whilst AI obviously has advantages in today’s world, when it comes to tax, it’s very important to verify tax advice with a Charterted Accountant.

12th September 2025 – Hillmans Weekly Update

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

Have a great weekend.

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

How Employers Can Improve Gender Equality at Work
The government has recently published new guidance on how businesses can improve gender equality in the workplace. The advice is intended to be practical and based on evidence of what really works, rather than theory.

The guide contains details of effective actions, where there is strong evidence that the action is effective, and promising actions, where evidence is promising but limited.

You can use this resource to develop action plans in your own business that help to create a more inclusive work environment. Here’s a brief review of what is contained in the guidance.

Start with the data
The guide recommends that you first take a data-driven approach. It provides some questions that can help you identify where gender imbalance might be occurring.

For instance, you could ask:

• Are women more likely to be recruited into lower-paid roles compared to men?
• Do starting salaries or bonuses differ by gender?
• Do people get “stuck” at certain levels in your business?
• Do you support part-time employees to progress?

Answering questions like these can help you better focus your efforts.

The guidance continues by breaking actions down across four stages of the employee lifecycle.

1. Hiring and selection
Using standardised hiring and selection processes is recommended as an effective way to minimise the risk of bias and select the right person for the job.

One of the clearest findings is that flexibility matters. Job adverts that openly state flexible working options attract many more applicants, and more women apply for senior roles when flexibility is built in.

Employers are also encouraged to make interviews structured and transparent, with all candidates asked the same questions and scored in the same way.

Pay and promotion policies should be clear, too. Clearly stating the salary range and whether the salary is negotiable is recommended.

2. Talent management, learning and development
Equality is not just about recruitment. Retaining and supporting staff is equally important.

A key recommendation in this area is to increase transparency in your promotion, pay and reward processes. Employees should be clear on what is involved in getting a pay increase or how promotions are decided.

Increasing accountability assists with doing this. For instance, managers in the business should understand that the decisions they make on pay and promotions need to be objective and evidence-based, and their decisions can be reviewed by others.

3. Inclusion and retention
Flexible working arrangements and generous parental leave policies are key to retaining staff, helping them balance their home and work responsibilities.
Advertising and offering all jobs as having flexible working options is recommended. However, employers also need to ‘walk the talk’. For instance, senior people in the business should be encouraged to ‘role model’ for working flexibly and champion flexible working.

The guidance also identifies the need to challenge the gender stereotype that it is a woman’s role to take on caring responsibilities. Improving workplace flexibility for everyone can help both women and men combine work with family and other parts of their lives. Therefore, you could:

• Openly encourage and enable men to work flexibly too. This avoids flexible working being seen as only a benefit for women.
• Avoid a ‘one size fits all’ approach, such as specifying the number of days employees can work from home, as this may create a gender gap.
• Talk to fathers, not just mothers, about changing working patterns when they have children.

4. Leadership and accountability
Change is most effective when it is led from the top. The guidance suggests that business leaders set specific, clear and time-bound goals that are challenging but realistic. Progress towards these goals should be tracked and reviewed regularly.

Some employers appoint a senior diversity lead or create a task force and empower them to keep things on track, and this has been linked to better outcomes for women at work.
 
In conclusion
The guidance contains information about many other actions in these four areas that may be effective for your business.

Creating an inclusive culture in your business is a key way to improve fairness, widen your talent pool, and benefit from a more motivated and diverse workforce. The guidance is well worth your time to read it in full. It can be found here:

https://www.gov.uk/government/publications/how-to-improve-gender-equality-in-the-workplace-actions-for-employers/how-to-improve-gender-equality-in-the-workplace-actions-for-employers
 
How Should You Respond to Cyber Attacks?
Cyber-attacks are on the increase, and smaller businesses are by no means immune. Have you been the victim of an online scam or cyber-attack? Or worried that something like that may happen?

If so, a collection of resources on the National Cyber Security Centre (NCSC) could be helpful to you. The guidance is broken down across six topics and provides practical advice on what to do. Here’s a summary.

Phishing
Phishing involves receiving a suspicious message that usually includes a link to collect information from you.

NCSC advise that it’s important not to click on links in such a message or enter any information. However, if you have already done this, there are still important actions you can take to protect yourself, including:

• Contacting your bank if you have shared banking details.
• Using antivirus software.
• Changing passwords.
• Reporting it.

Business payment fraud
Criminals send emails that appear to be tailored to your business that are designed to trick you into believing you are dealing with a legitimate contact. They might send an invoice that looks real but contains a virus or change the bank account details you normally pay into.

If you have been caught out, NCSC encourage you not to panic and contact your bank directly, making sure to use their official website or phone number.

Hacked accounts
NCSC provide a useful checklist of actions you can take if you can’t access one of your online accounts, or have noticed some unusual activity on an account.

Ransomware attack
In a ransomware attack, an attacker may encrypt your electronic device or the data stored on it and demand payment in exchange for decrypting the device or data.

There are recommended actions you can take in these circumstances, and NCSC also provide their view on paying the ransom and the dangers you face if you decide to pay.

Infected devices
If you have a device that is behaving strangely, this may be because of malware.

The guidance explains what you need to do confirm whether your device is infected, and what you can do to try and fix it. NCSC highlight that you are likely to lose any data that wasn’t backed up in your ‘last known’ good backup; however, trying to rescue data while your device is still infected runs the risk of carrying the problem through even after your device has been wiped and reinstalled.

Denial of Service (DoS) attack
A DoS attack will make your website or network unreliable or unresponsive, which could be critical to your business.

NCSC provides guidance on what to do and how to defend your business from this threat.

To review the resources in full, see: https://www.ncsc.gov.uk/section/respond-recover/sole-small
 
Extended Producer Responsibility (pEPR): First Invoices Due October 2025
From October 2025, businesses that fall under the UK’s Extended Producer Responsibility for packaging (pEPR) scheme will receive their first invoices, covering the period from 1 April 2025 to 31 March 2026.

These invoices, called Notices of Liability, will be based on the packaging data you submitted for 2024.

What to expect
Invoices will be issued through the Report Packaging Data (RPD) system, which only registered users can access. PackUK will notify Primary Contacts and Approved Users of the invoice and how to access it.

However, if your finance team will need access, it would be worth making sure they are set up on the system before October.

If you have not logged into the RPD system recently, then PackUK has recommended that you log in again before October to check your details. This will minimise delays to accessing your account when you need to in October.

The size of your liability will depend on your submitted data and the overall figures from all producers. In some cases, fees may be recalculated later in the year if there are material changes.

Payment and deadlines
You will need to either pay in full within 50 days or sign up to a four-instalment plan.

It’s important to note that these invoices are classed as statutory debts, so late payment penalties apply and PackUK will not issue purchase orders or VAT numbers.

Being late in paying could be expensive. You may be liable to a variable monetary penalty of (whichever is greater):

• 20% of the unpaid fees; or
• 5% of your UK turnover (2% of UK group turnover if registered as a group).

Preparing now
To be ready for October:

• Check your RPD login details and contact information.
• Ensure your finance team have access if they need it.
• Review your submitted 2024 packaging data and calculate what the fee is likely to be based on published material rates.
• Prepare any necessary internal processes to ensure the invoice is paid in good time.

Further details
Further guidance and contact information if you need support can be found here: https://www.gov.uk/government/news/preparing-for-pepr-year-1-invoicing-key-information-for-liable-producers
 
Contactless Payments: Could the £100 Limit Soon Disappear?
The Financial Conduct Authority (FCA) has launched proposals that could see the £100 limit on contactless card payments raised - or even removed altogether. If agreed, shoppers may soon be able to pay for larger supermarket trips or restaurant bills with just a tap, without needing to enter a PIN.

Why now?
When contactless payments were introduced in 2007, the limit was only £10. It has been raised gradually over time, most recently to £100 in October 2021.

The FCA says this latest proposal reflects both rising prices and the way technology is changing how people pay. Digital wallets on smartphones already allow unlimited contactless payments because of the added security from face ID or fingerprint checks. As a result, many are now using their smartphone to pay rather than using a card.

How it would work
Under the new plans, banks and card providers - not the FCA - would decide whether to raise limits. Some may even let customers set their own cap, or keep the limit lower if they prefer. Payment terminals would also need reprogramming to accept higher-value card transactions.

Although many consumers remain cautious - 78% of those who responded to an FCA consultation wanted the £100 limit to stay - providers argue that fewer interruptions at the till would mean faster payments and less “friction” for both businesses and customers.

Concerns about fraud
Each increase in the limit has raised questions about security. The FCA has put forward this most recent proposal despite consumers and industry respondents already saying they preferred the current rules.

The FCA admits in its own analysis that higher limits would likely increase losses from fraud, but it says detection systems are improving. It also stresses that consumers remain protected: they would be refunded if their card was used fraudulently.

At present, safeguards already require a PIN if a series of contactless payments exceeds £300 or if more than five transactions are made in a row. Many banks also allow customers to lower their own contactless limit or switch it off entirely.

Next steps
The FCA’s consultation runs until 15 October, and changes could be introduced early next year. If adopted, the four-digit PIN could become an increasingly rare part of everyday shopping.

For now, the £100 limit remains in place, but businesses may want to prepare for a shift in how customers choose to pay.
See: https://www.bbc.co.uk/news/articles/czjv7jy2r9vo
 
Celebrating 10 Years of HSE’s Risk-Reduction Through Design Awards
This year is the 10th anniversary of the Health and Safety Executive’s (HSE) ‘Risk-reduction through design’ awards, which recognise UK employers who have taken practical steps to reduce musculoskeletal disorder (MSD) risks in the workplace.

Jointly sponsored by the Chartered Institute of Ergonomics and Human Factors (CIEHF), the awards celebrate large and small businesses that have introduced design changes to reduce the strain of lifting, pushing, pulling, awkward postures or other manual handling activities. Past winners have ranged from food production to construction, all united by a focus on healthier, safer workplaces.
 
Why enter?
By submitting a nomination, employers can:

• Gain national recognition for innovation and commitment to worker wellbeing.
• Share their success to inspire others

There are two award categories: Best overall MSD risk reduction through design, and a dedicated SME award recognising the vital role smaller businesses play.

How to apply
Nominations are open now to UK employers and will close on 31 January 2026.

An independent judging panel will select the winners, who will be announced at the CIEHF awards event in April 2026.

For full details and to submit a nomination, visit the HSE website.

5th September 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

Six Lessons for Businesses from Royal Mail’s Return to Profit
After three years of losses, it’s been reported that Royal Mail has returned to profit under its new owner, Czech billionaire Daniel Kretinsky.

While the £12m profit (excluding redundancy costs) is modest compared to the £336m loss the year before, it marks an important shift for a company that has faced falling demand, rising costs, and hits to its reputation.

Royal Mail’s story provides food for thought on what it takes to adapt and grow your business in tough market conditions. Here are five lessons.

1. Shift Focus to Growth Areas
Royal Mail recognised that letter volumes are in long-term decline (down 4% in the latest year), but parcel volumes are rising (up 6%). By pivoting investment and strategy towards parcels - where customer demand and profitability lie - the business is working to realign itself with market reality.

The lesson? Analyse your income streams to see if there are any areas where customer demand is increasing. Then focus more resources in that area, even if it means letting go of parts of the business that once seemed core.

2. Streamline Operations
Royal Mail has already stopped second-class letter deliveries on Saturdays to save costs. The Universal Service Obligation (USO) requires Royal Mail to deliver letters six days per week, Monday to Saturday, and parcels Monday to Friday.

However, the USO is currently being reviewed and Royal Mail has argued that reducing second-class deliveries to every other weekday would save up to £300 million a year. It feels this would give it a “fighting chance.”

The lesson? Regularly review the way your business operates to see if you’re doing work that drains resources but adds little value. Small changes in the way you do things could unlock big savings.

3. Innovate for Customer Needs
Royal Mail plans to install 3,500 solar-powered parcel post boxes across the UK. Solar panels on the top of the post boxes will power a digitally-activated drawer allowing for the posting of items as large as a shoebox.

Customers will be able to use the Royal Mail app to use the service and can request proof of posting and tracking of their parcel, making it a more convenient way for customers to send small parcels.

The lesson: Innovation not only can improve your reputation as a sustainable business but also help you better meet the needs of your customers. Innovation doesn’t have to be high-tech or complicated. Ask: ‘What small changes would make my customers’ lives easier?’

4. Invest in Brand and Trust
Despite foreign ownership, Royal Mail kept its name, UK headquarters, and tax residency for at least five years. This was an agreed condition when Royal Mail was bought out, and the government has kept a so-called “golden share” that allows it veto rights on certain changes. However, this requirement has helped to maintain continuity and trust with customers.

The lesson? In times of change, you can reassure your customers by keeping the things they rely on most consistent – whether that’s your level of service, how you communicate with them, or the quality of your products. Familiarity helps build trust and loyalty.

5. Be Willing to Make Tough Calls
Royal Mail has shed staff, absorbed strikes and endured reputational knocks. Yet leadership has made difficult and sometimes unpopular choices to put the company back on a sustainable path.

The lesson? Growth often requires tough decisions, whether on staffing, pricing, or cutting loss-making activities. Avoiding them only delays how long it can take to put the business back on a positive footing.

6. Adapt Business Models to Long-Term Trends
The shift from letters to parcels reflects a deeper societal trend - digital communication replacing paper. Royal Mail’s survival depends on embracing this shift rather than resisting it.

The lesson? Take time to examine what the long-term trends in your industry are. Are you positioned to thrive in five or ten years’ time, or might you be clinging to models that show signs of being in decline?

What’s the key takeaway from all this?
Royal Mail’s modest profit shows that even a 500-year-old organisation can adapt when forced to. Focusing on growth areas, cutting what no longer works, innovating around your customers’ needs, investing in trust, making tough calls and staying in touch with long-term trends can help your business continue to grow and thrive.

If you’d like to talk through how these kinds of lessons could apply to your own business – whether that’s managing costs, adapting services, or keeping customers onside – we’d be happy to help!

See: https://www.bbc.co.uk/news/articles/cger3w129l0o
 
Rising Borrowing Costs Put Pressure on the Chancellor
The UK government is facing a fresh financial squeeze after long-term borrowing costs climbed to their highest level in a generation. The yield on 30-year government bonds (known as gilts) has reached 5.72% – the highest since 1998.

For the government, this means it is now significantly more expensive to borrow money, adding pressure on Chancellor Rachel Reeves to increase taxes ahead of the Budget later this year.

For businesses, tighter government finances could shape tax and spending decisions over the coming months.

Why borrowing costs matter
Governments raise money by selling bonds to investors, promising to repay them in future with interest. The yield on those bonds – effectively the interest rate – has been rising for months. Higher yields mean the government must spend more just to service its debt, reducing the funds it has available for day-to-day spending or investment.

Rachel Reeves has set herself two “non-negotiable” fiscal rules:

• By 2029–30, all day-to-day government spending must be funded through tax income rather than borrowing.
• Government debt must be falling as a share of national income by the same year.

The challenge is that her buffer – the margin of safety built into her plans – is slim at around £10bn.

Why are costs going up?
The UK is not alone. Yields have been climbing in Germany, France, the Netherlands and the US. Several factors appear to be driving the change.

The World Trade Organisation has said the world is currently “experiencing the largest disruption to global trade rules” in 80 years, with the impacts from the US tariffs perhaps not likely to be fully felt until next year.

It also appears that investors may be selling off UK government debt due to concerns over the government’s financial plans, and this increases the rates that need to be offered to attract investors.

What this means for the Autumn Budget
One economist has estimated that Reeves may need to find between £18bn and £28bn in extra revenue at the Budget to avoid breaking her own fiscal rules. That raises the likelihood of tax rises.

The government has so far stuck to its manifesto pledge not to raise income tax, VAT, or national insurance for “working people”. Assuming this continues, that limits the options available for raising taxes, but several possibilities are being speculated on. These include:

• Extending the freeze on income tax thresholds – this so-called “stealth tax” drags more people into higher tax bands as wages rise.
  
• Reforming property taxes and stamp duty. 
• The introduction of National Insurance for landlords.

At this stage, these remain as speculation but they indicate that the Autumn Budget could be a challenging one. For the Chancellor, the challenge is not only meeting her fiscal rules but doing so in a way that maintains confidence in the UK economy.

What this could mean for your business
For business owners, the headlines about bond yields and borrowing costs might seem distant, but the consequences could well be felt over the coming weeks:

• Potential tax changes – measures could be introduced to raise revenue.
  
• Economic headwinds – higher borrowing costs for the government may translate into higher financing costs across the economy, including for businesses seeking loans or investment. 
• Policy uncertainty – until the Budget is delivered, businesses may find it harder to plan for tax and cost pressures.

Looking ahead
For businesses, the best approach for the next few months may be to plan cautiously. For instance, it would be worth stress-testing your business finances to see how they would cope with possible tax rises or higher borrowing costs.

The Budget later this year will set the direction for government finances and, by extension, the business environment. Rising borrowing costs have narrowed the Chancellor’s options, meaning that decisions in the autumn could well have direct consequences for businesses across the UK.

We will continue to keep you posted on the Budget news, but in the meantime, if you would like any help looking at how your business finances may be affected, please give us a call. We would be happy to help you!

See: https://www.bbc.co.uk/news/articles/cy989njnq2wo
  
ICO Launches Consultations on New Data Protection Rules
The Information Commissioner’s Office (ICO) has begun consultations on two important changes coming into force under the new Data (Use and Access) Act 2025 (DUAA).

The consultations focus on:

• Recognised legitimate interest – a brand new lawful basis for handling personal information.
• Data protection complaints – new requirements for all organisations to have a process in place for handling complaints.

Recognised legitimate interest
This new lawful basis is separate from the existing “legitimate interests” ground and allows organisations to use personal information more confidently for certain pre-approved situations. These include:

• Crime prevention and public security.
• Safeguarding and emergencies.
• Sharing information to help another organisation carry out its public tasks.

The ICO will be providing detailed guidance and examples to help organisations apply this new lawful basis correctly. Public authorities, however, are expected to continue using the existing “public task” lawful basis.

The consultation on this area closes on 30 October 2025.

Data protection complaints
By June 2026, every organisation must have a process in place for handling data protection complaints. Complaints could come from anyone unhappy with how their personal information has been used.

The new Act requires organisations to:

• Give people a way of making data protection complaints to them.
• Acknowledge they have received a complaint within 30 days of receipt.
• Take appropriate steps to respond to a complaint, including making appropriate enquiries and keeping people informed, without undue delay.
• Telling people the outcome of their complaints, also without undue delay.

The ICO’s draft guidance explains the new requirements and what organisations must, should and could do to comply. Helpful tips and practical advice are included.

The consultation on this guidance is open until 19 October 2025.
 
What next?
Deputy Commissioner Emily Keaney emphasised the importance of these consultations: “These consultations provide us with a real opportunity to listen, learn and lead with clarity and we encourage all interested parties to engage with our consultations and help shape our final guidance to ensure it is robust and fit for purpose.”

Whether you plan to respond or not, reviewing the draft guidance could help you plan ahead for the June 2026 deadline as you assess whether you already have a clear process for handling complaints and, if not, what changes are needed.

See: https://ico.org.uk/about-the-ico/media-centre/news-and-blogs/2025/08/ico-launches-consultations-for-data-use-and-access-act-2025-amendments/
 
Aldi Leads the Way on Pay: Is High Pay a Good Approach?
Aldi introduced a pay boost last week for its store assistants that will see their pay rise to at least £13.02 per hour nationwide, making it the first UK supermarket to pass the £13 mark. Within the M25, rates will start at £14.35, rising to £14.66 with length of service. All staff, regardless of age, will receive the same minimum rate – well above the new National Living Wage of £12.21.

This move follows Aldi’s policy of paid breaks, worth around £1,425 per year to the average store colleague, further strengthening its reputation as a leader on pay and conditions.

What are the benefits of Aldi’s approach? Are there downsides?

The benefits of Aldi’s approach
Higher pay can certainly deliver some clear business advantages. These include:

• Attracting and keeping staff – competitive pay helps reduce staff turnover, which saves on recruitment and training costs. 
• Boosting productivity – well-rewarded employees are more motivated, which can translate into better customer service and improved store performance. 
• Positive brand image – standing out as an employer that values its workforce helps Aldi with recruitment, customer loyalty, and wider reputation. 
• Consistency for staff – paying the same rate regardless of age supports fairness and can create a stronger workplace culture.

The potential downsides
However, not every business can match Aldi’s scale and financial muscle. Many businesses do not have sufficient buying power or margins to be able to absorb increased pay rates.

As large employers raise pay, staff in smaller businesses may expect similar increases, putting those businesses under pressure to follow suit and increase wages.

What can you do?
Aldi’s move shows how pay can be used strategically, not just as a cost but as an investment in people and performance.

For smaller businesses, the lesson may be less about matching Aldi pound-for-pound and more about finding sustainable ways to reward staff – whether through competitive pay, fair contracts, or other benefits that support recruitment and retention.

See: https://www.gov.uk/government/news/supermarket-staff-receive-industry-leading-pay-rise-as-minister-celebrates-businesses-going-above-and-beyond-to-support-their-workers
 
Business Finance Week Coming This Autumn
From 30 September to 9 October, the British Business Bank will host Business Finance Week – a nationwide programme of free events designed to help smaller businesses get to grips with their funding options.

The programme includes in-person events across the UK as well as online webinars, making it accessible whether you prefer to attend locally or join from your desk.

For many small and growing businesses, finance can be one of the toughest areas to navigate. With so many options available – from loans and grants to equity and alternative finance – it’s not always easy to know which is the right fit. Business Finance Week aims to cut through the complexity.

For a full list of upcoming events, see: https://www.british-business-bank.co.uk/news-and-events/events/business-finance-week
 
Government Brings in Productivity Expert to Drive Growth
The government has announced that Professor John Van Reenen, a leading economist from the London School of Economics, will be advising the Chancellor directly on how to improve the UK’s productivity.

His appointment is part of the government’s Plan for Change, aimed at boosting economic growth and raising living standards across the country.

Professor Van Reenen is an academic who has focused on productivity, innovation, and how businesses perform. He previously served as Chair of the Chancellor’s Council of Economic Advisers. In this new role, he will spend one day a week without pay for 12 months working with the Treasury, starting in September.

What this could mean for businesses
Productivity – how much value is created for the time and resources put in – is still a concern for the government. Low productivity growth can be a drag on wages and business competitiveness.

Rachel Reeves, the Chancellor of the Exchequer, said: “We still have work to do to build an economy that works for working people.” She believes that Professor Van Reenan’s appointment will help to bring that about.

For businesses, the appointment may indicate what future policies may appear over the coming year, such as:

• Supporting investment in new technology and processes.
• Encouraging training and skills development.
• Making it easier to scale and grow operations.
• Creating a more stable environment for long-term planning.

This appointment on its own won’t transform the economy, but it highlights that productivity is on the agenda for the next year.

See: https://www.gov.uk/government/news/chancellor-appoints-growth-adviser
 
Business Property Revaluations – Be Ready for 2026
The Valuation Office Agency (VOA) is encouraging businesses to sign up for a business rates valuation account so they can find out their new commercial property valuation.

Every three years the VOA updates the rateable values of all business properties in England and Wales. The next revaluation will take effect on 1 April 2026, based on open-market rental values as at 1 April 2024.

Business rates are calculated from your property’s rateable value. This is not the same as your final bill, but it is the starting point. Local councils apply a multiplier and any relevant reliefs to arrive at what you actually pay.

The new valuations will be published a few months before next April. Signing up for a business rates valuation account will give you access to your property’s details and allow you to find out what your future rateable value will be as early as possible.
 
Your account will also allow you to:

• Check that the VOA has the right details for your property.
• Let the VOA know if something’s wrong.
• Understand how your property’s valuation was worked out.
• Tell the VOA if you believe your current property valuation is incorrect.

Having information as early as possible will give you extra time to plan for any changes to your business rates bill rather than having to react when it arrives.

See: https://www.gov.uk/government/news/stay-informed-about-your-business-rates

29th August 2025 – Hillmans Weekly Update

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

Have a great weekend.

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

Why Systemising Your Business Could Be the Key to More Freedom
Many business owners we work with feel caught up in the day-to-day drudge. They’re handling customer queries, fixing problems, chasing invoices - and wondering how they’ll ever find the time to step back and think about where the business is heading.

The truth is, if your business relies heavily on you, it can feel impossible to take time out to work on strategy, growth plans, or even a long-term exit. That’s where systemising your business comes in.

What Do We Mean by “Systemising”?
Systemising simply means creating repeatable processes that don’t rely on your constant oversight. It’s about making sure the “how” of your business is written down, consistent, and easy for others to follow.

The benefits?

• More time for you – fewer fires to fight each day. 
• Better customer experience – clients get the same high standards every time. 
• A more valuable business – buyers pay more for a company that runs smoothly without the owner.

Here are a few areas where systemising can make a big difference:

• Onboarding new staff: Instead of spending hours explaining the same things, create a checklist or training video library. It saves time and ensures consistency.
  
• Sales process: Document the steps from first enquiry through to closing a sale. This helps staff handle leads in a consistent, professional way. 
• Customer service: Use standard responses for common queries and a simple escalation process for problems. This reduces mistakes and keeps clients happy. 
• Finance: Automate invoice reminders and set up clear procedures for credit control, so cash flow doesn’t depend on your memory. 
• Marketing: Have a content calendar or email template bank so your marketing doesn’t stop when you’re busy.

Linking Systems to Your Exit Plan
If you’re thinking about selling your business in the next three to five years, systemisation is even more important. A potential buyer will ask: “Does this business depend on the owner?”, “Can it run without them?” or “Are there written processes that staff can follow?”

The more “yes” answers you can provide, the more attractive your business becomes. A buyer isn’t just buying your products or customer list - they’re buying a machine that runs smoothly without you.

First Steps to Get Started
Of course, to systemise your entire business all in one go would likely be overwhelming. So, why not pick just one repetitive task you’re always involved in and write down the process?

Other ideas you could think about include:

• Asking your team where the “bottlenecks” are - often they already know which areas could run more smoothly and could help you put together a system to overcome the problem. 
• Consider using simple tools (e.g. Trello, Asana, or even shared spreadsheets) to keep processes clear and visible. 
• Try to block out some time in your diary each month to work on the business, not just in it.

In short, systemising your business isn’t about bureaucracy - it’s about buying yourself time, reducing stress, and building a business that’s worth more when you eventually step away.

If you would like personalised advice on areas in your business that would benefit from systemising, or you are looking to maximise the value of your business, please feel free to get in touch. We would be happy to help you!
 
Companies House WebFiling to Switch to GOV.UK One Login
From 13 October 2025, Companies House will require all businesses to use GOV.UK One Login to access WebFiling. This change is part of a wider government move to introduce a single, more secure login system across all online services.
 
What’s Changing?
From 13 October 2025, you’ll need to connect your WebFiling account to GOV.UK One Login before you can continue filing.

If you share your WebFiling account with others, only one person will be able to connect each WebFiling account to their GOV.UK Login. Anyone who shares access will need to create their own GOV.UK One Login, using a different email address.

This is part of a wider move as the government intends for GOV.UK One Login to be increasingly used for accessing online services.

What You Can Do to Get Ready
To avoid last-minute issues, here are a few simple steps to take before October 2025:

• Check your email addresses – make sure the email you use for WebFiling is current and accessible. If you also use “Find and update company information,” use the same email address for both. 
• If you don’t already have one, you could set up a GOV.UK One Login in advance, using the same email as your Companies House accounts. This will make connecting smoother.
  
• Check that you have the authentication code handy for each company you file for. You may need to enter it when you connect your WebFiling account to GOV.UK One Login. 
• Review who has access – if your team shares a WebFiling login, each person will need their own account going forward. Start planning how to manage this. 
• Think about identity verification – while not compulsory until November 2025, directors and People with Significant Control (PSCs) can verify their identity early using GOV.UK One Login.

If you try to sign into WebFiling after 13 October 2025, you’ll be redirected to connect your account with GOV.UK One Login.
See: https://www.gov.uk/government/news/access-to-companies-house-webfiling-accounts-to-move-to-govuk-one-login
 
Additional Support for Government Schemes to Help Young People into Work and Training
The Government has announced an extra £45 million to expand support for young people who are not currently in education, employment or training (known as NEETs).

This extends the Youth Guarantee trailblazer scheme for another year and is part of working towards rolling out a national Youth Guarantee that will help all 18–21-year-olds have the chance to “earn or learn”.

The Challenge
Recent figures from the Office for National Statistics show 948,000 young people across the UK are NEET.
Reasons for the worsening problem in recent years are thought to include:

• Pandemic disruption to learning.
• Limited access to mental health support.
• A lack of jobs and skills support.

Young people who are NEET often face additional challenges such as health conditions, a lack of qualifications, or being from disadvantaged backgrounds. The long-term impact can include lower pay, higher unemployment, and poorer mental health.

The Trailblazer Schemes
To tackle this, eight local “trailblazer” projects launched in Spring 2024. They’re trialling new ways of identifying young people most at risk of becoming NEET and matching them to local training, apprenticeships or job opportunities.

What is learned from these local schemes will shape the full Youth Guarantee roll-out across the country.

Why It Matters for Businesses
While these schemes are aimed at supporting young people, they could also represent an opportunity for employers:

• The schemes may help employers connect with motivated young people looking for a start. 
• Apprenticeships may be reformed in a way that makes them more accessible and useful for businesses. 
• Employers who engage with trailblazer programmes may receive support with recruitment, training, and ongoing mentoring.

If your business could benefit from young, enthusiastic recruits, it would be worth keeping an eye on local schemes. You might also want to look at any entry-level roles you have. Could an apprenticeship or training placement be a good fit?

For small and medium-sized businesses, this may create new opportunities to recruit and train young people while receiving government support.

See: https://www.gov.uk/government/news/thousands-more-young-people-to-get-training-and-work-support-as-government-extends-45m-scheme

How to Spot Phishing Attempts Before It’s Too Late
HM Revenue and Customs have reported that 170,000 scam referrals were made to them in the year to July 2025. Encouragingly, this is a 12% reduction on the previous year, however HMRC are warning taxpayers to take care.

Whether it’s emails pretending to be from HMRC, your bank or someone else, phishing scams are becoming harder to spot. They’re no longer just poorly worded emails full of spelling mistakes. Many now look professional, use company logos, and even include QR codes to try to trick you into clicking links or handing over details.

For small business owners, falling for a phishing attempt can mean more than inconvenience - it could lead to stolen funds, lost data, or serious reputational damage. The good news is that the National Cyber Security Centre (NCSC) provides some clear guidance on the signs to look out for.

The Common Red Flags
Scam messages (whether email, text or phone call) usually try to make you act quickly without thinking. Watch out for these tell-tale tactics:

• Authority: The message pretends to come from someone official (bank, HMRC, solicitor, or even your IT provider). Criminals pretend to be authority figures to pressure you into doing what they want. 
• Urgency: “Act now or your account will be closed!” If you’re told to respond immediately or are threatened with fines or other negative consequences, it’s often a scam. 
• Emotion: Fear (“you owe money”), excitement (“you’ve won a prize”), or curiosity (“see your confidential report”). Emotional triggers make you click without pausing. 
• Scarcity: Offers of something “in short supply” - cheap tickets, limited-time tax refunds, or medical “cures”. 
• Current events: Criminals exploit tax season, major sporting events, or big news stories to make scams look more believable.

How to Check If a Message Is Genuine
If something about a message doesn’t feel right to you, stop and don’t click any links or open attachments.

Check the contact details in the message against the organisation’s official website (not the ones given in the suspicious message).

It’s also good to remember that your bank or HMRC will never ask you to confirm account details or passwords over email or text.

If it’s a phone call purporting to be from your bank, simply hang up and use the official number from your bank statement or credit card.

Make Yourself a Hard Target
With a few simple steps you can significantly reduce your risk and make it more difficult for scammers. You can:

• Think about what personal information is posted about you online, as criminals may use this to make their messages seem more convincing. Check your privacy settings within your social media accounts so that you’re not sharing information more widely than you intended. 
• Train your staff on how to recognise scam messages. 
• Use multi-factor authentication (e.g. login codes sent to your phone) for all your online accounts. 
• Keep devices updated with the latest security patches.

Final Thought
Phishing scams rely on speed and pressure. If you stop, take a breath, and double-check, you greatly reduce the chance of falling victim. Building awareness across your business can save you a lot of time, stress and money in the long run.

See: https://www.ncsc.gov.uk/collection/phishing-scams/spot-scams
 
Hospitality Sector Faces Heavy Job Losses as Costs Bite
The UK’s hospitality industry - covering restaurants, pubs, bars and hotels - has seen the sharpest rise in job losses since last autumn, according to new analysis.
Industry body UKHospitality says that around 89,000 jobs have been lost since October 2024. They have said that hospitality has accounted for more than half of all job losses in the UK. The group warns that the total could reach 100,000 by the next Budget.

Why Is Hospitality Being Hit So Hard?
Reports suggest that a mix of rising costs and slowing demand is squeezing businesses from both sides:

• Higher wage costs: April’s increase in the National Minimum Wage has raised payroll costs, particularly in a sector where part-time and flexible jobs are common. 
• National Insurance: Employers are now paying higher NI contributions. 
• Other overheads: Energy bills, food and drink prices and rent have all increased. 
• Weaker demand: With the cost of living still high, many households are eating out less often to save money.

Kate Nicholls, Chair of UKHospitality, described the job loss figures as “staggering,” and said that they are seeing a third of businesses cutting their opening hours, one in eight saying they are closing sites and 60% saying they are cutting staff numbers.

Some operators, like Manchester bar owner Mark Wrigley, have even stopped paying themselves to keep their businesses afloat.

Wider Job Market Trends
The Office for National Statistics (ONS) notes that overall job vacancies are down, with employers across industries being more cautious about recruiting or replacing staff. The number of employees on payroll has fallen in 10 of the last 12 months, with hospitality and retail taking the biggest hits.

What Can Business Owners Do?
If you’re in hospitality or another consumer-facing sector, here are some practical steps to consider:

• Make sure you’re accessing any tax reliefs you’re eligible for – for instance, are you receiving the business rates relief you’re entitled to? 
• Manage your cash flow closely – prepare good forecasts that allow you to see what your payroll, energy and supplier costs are likely to be over the coming months. That will allow you to make early decisions if pressures start to mount. 
• Diversify your revenue – offering takeaway, delivery, events, or private hire could help offset dips in walk-in trade. 
• Keep communication open with any lenders and landlords – early discussions may help ease short-term pressures.

While the headlines are challenging, there are opportunities too. Finding creative ways to adapt can make it possible not only to weather the storm but to come out stronger.

If you’d like to explore strategies to protect your profitability, get in touch. We’re here to help you.

See: https://www.bbc.co.uk/news/articles/c05ey2ypp92o