29th May 2026 – 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   Featured TaxStore® Hub: Funding Hub As part of the continued development of our TaxStore® platform, we are continuing to expand our Funding Hub (https://www.taxstore.com/funding-hub), which provides practical information, guides and resources covering business finance, funding options and growth opportunities. Whether you are starting a business, investing in equipment, looking to improve cashflow or exploring finance options to support future growth, the Funding Hub is designed to help you better understand the different funding solutions available. Featured Articles This Week A Complete Guide to Finding and Applying for Funding An overview of different business funding options, including practical guidance on researching funding opportunities, understanding the funding landscape and preparing successful applications. Read the article here: https://www.taxstore.com/funding-hub/a-complete-guide-to-finding-and-applying-for-funding How to Get a Start Up Loan for Your Business A practical guide explaining Start Up Loans, how they work, who may be eligible and how they can help fund a new business venture. Read the article here: https://www.taxstore.com/funding-hub/how-to-get-a-start-up-loan-for-your-business New funding articles and resources are added regularly, so please bookmark the Funding Hub and check back for the latest guides, funding information and business growth resources. You can explore the wider TaxStore® platform here: https://www.taxstore.com

Consultation launched on details for High Value Council Tax Surcharge The government has opened a consultation on the High Value Council Tax Surcharge (HVCTS) expected to come into force in England from 1 April 2028. HVCTS will apply to owners of residential properties in England worth £2 million or more and is payable in addition to the existing Council Tax. It is estimated that the charge will affect less than 1% of properties. The consultation outlines the proposed details of how HVCTS will work in practice, showing how properties will be identified, valued and placed in a band for the surcharge. Here we highlight some of the proposals. How will properties be valued? The Valuation Office will carry out a targeted valuation exercise to identify which properties will fall into the scope of HVCTS. Properties will be placed in one of four bands based on their value. To determine the value of a property and its band for HVCTS purposes, the Valuation Office will look at the sales prices of similar properties as well as other attributes. Revaluations will be carried out every five years, with the next valuation taking place in 2033. Properties built after April 2028 will be valued either on completion or from the day the property is occupied. In most cases, where a property has been significantly improved or changed, it will be revalued when disposed of or when the next general revaluation takes place, whichever is sooner. What type of properties will HVCTS apply to? HVCTS will apply to dwellings, defined as a self-contained unit of residential property used as living accommodation. It will include properties with a mixed-use where the residential element is distinct and self-contained will be included. Gardens, garages and private storage buildings that form part of the dwelling will be included.   Who will be liable for HVCTS? The legal owner of the property, rather than the occupier, will be liable for the surcharge. Where a property is jointly owned, the owners will be jointly and severally liable.  The beneficial owner of a property could be different to the legal owner. For instance, trustees may legally own a property until a minor, the beneficial owner, comes of age. In such situations, it is the legal owner who will be liable for the surcharge. The government has confirmed that trustees will be liable to pay the charge, even in bare trust arrangements. The government is proposing to charge HVCTS to the leaseholder, rather than the freeholder, if the lease they hold is defined as a long lease. This means that the lease was initially granted for more than 21 years, or the law treats it as such. Where the lease is not a long lease the surcharge will be assessed on the freeholder. Are there any exceptions? For eligible individuals, a deferral scheme will be available allowing HVCTS payments to be delayed until the property is disposed of. Proposals show that the deferral will be available to those with income and capital savings below thresholds used in the welfare system, and where the property is the main home of someone who is disabled or severely mentally impaired. Some property types will also be exempted or receive a discount. How will HVCTS be billed? The first HVCTS bills will be sent out in March 2028, and local authorities will collect the payment in the same way as Council Tax. The default will be to make 12 monthly payments, but it will be possible to request 10 payments. Will there be a premium charged to non-UK resident owners? As part of the consultation, the government is also collecting information to explore whether to charge an additional HVCTS premium to non-UK resident owners of homes that are liable for the tax. Is there a way to challenge or appeal HVCTS? Owners who believe that their property band is incorrect or that their property is not within the scope of HVCTS will be able to challenge and appeal the Valuation Office’s decision. The same is true if they receive a bill but do not believe they are the liable person or the bill has been calculated incorrectly. If unhappy with the outcome of the challenge, it will be possible to appeal to the Valuation Tribunal for England.   Consultation timeframe The consultation will run until 14 July 2026. For full details on the consultation and to respond, see the consultation webpage. HMRC introduces targeted advance assurance service for R&D claims Originally proposed in last autumn’s Budget, HM Revenue & Customs (HMRC) have introduced a targeted advance assurance service for Research and Development (R&D) tax relief claims. The service, which is a pilot, aims to provide businesses with clarity on complex or high-risk areas before they make a claim. HMRC are now offering two types of advance assurance for R&D claims. The new service will run alongside the existing full claim advance assurance service. Full claim advance assurance has not been popular and only applies to companies claiming R&D tax relief for the first time. However, targeted advance assurance is open to any eligible small or medium-sized enterprise (SME). The pilot for this service will run until May 2027 and will help HMRC to test demand and decide which parts of the service are most useful to businesses. Companies will now need to choose which advance assurance service they want to use. It is not possible to apply for both targeted and full claim advance assurance for the same period or project. Under targeted advance assurance, companies can seek assurance on: •    Whether a project meets the definition of R&D for tax purposes. •    Whether overseas expenditure qualifies for relief. •    Whether R&D relief can be claimed where work is contracted by one company to another. •    Whether the exemption from the PAYE and National Insurance contributions cap applies. Targeted advance assurance is, however, limited to providing assurance on a maximum of two areas of the R&D work or project for the same period. An application can only include one project and one area of R&D relief. For companies seeking assurance on a second project or area, a second application must be submitted. Requesting advance assurance is not the same as making a claim. A company will still need to make a claim in the usual way. If you think the targeted advance assurance could be useful to you, or you would like help on any aspect of your R&D tax relief claim, please do get in touch. We would be happy to help you! Pensions Commission highlights challenges in retirement saving The Pensions Commission has published an interim report showing that many people are not saving enough for retirement. The report estimates that 15 million people are under-saving for retirement and this could increase to 19 million if no action is taken. Findings in the report include: •    Around half of low and middle-earners are only saving at minimum Automatic Enrolment levels with little else to fall back on. •    45% of working-age adults are not saving into a pension at all. •    Statutory minimum contributions made by employers mainly benefit higher earners. •    Only one in 25 of wholly self-employed workers is saving for retirement. For younger self-employed people, it is even fewer. •    Based on current trends, around three in 10 private pension pots are accessed at the earliest opportunity, with half of all pots taken out in full. Nearly half of these are spent on things like a car, a holiday or renovations. The Pension Commission is looking at why tomorrow’s retirees risk being worse off than today’s and will make recommendations on how to reverse this. A final report will be published in early 2027. Baroness Jeannie Drake, Pensions Commissioner, said: “The recommendations we present in our final report will address the need to secure adequate income in later life and a pension system that is fit for decades to come.” If you would like help with your retirement savings plan, please feel free to get in touch anytime. We would be happy to help you! See: https://www.gov.uk/government/news/britain-is-undersaving-for-retirement-warns-pensions-commission Relief on fuel duty and hauliers get road tax holiday The government have announced some fuel duty and road tax changes designed to help with the increased costs caused by the Middle East conflict.  A 5p fuel duty cut has been in place since March 2022. The relief was due to end between September this year and March 2027. It has now been confirmed that the cut will be extended until the end of the year. Hauliers are being given a 12-month road tax holiday. The normal annual charge of £600 for a typical heavy lorry and £912 for the biggest vehicles will be reduced to £1 at the vehicle’s next road tax renewal. Fuel duty on red diesel will be cut by over a third until the end of the year. This will benefit farmers, rail freight and other red diesel users. See: https://www.gov.uk/government/news/chancellor-protects-drivers-and-businesses-from-rising-fuel-costs Consumer Credit Act to be overhauled for the digital age HM Treasury has announced reforms to the Consumer Credit Act (CCA) to make it suitable for the digital age. The CCA first came into force in 1974 and many of its provisions are now out of date with developments in recent years of technology and consumer behaviour. The reforms will include moving many of the CCA’s detailed, prescriptive requirements out of the law and into the Financial Conduct Authority’s (FCA) rulebook. This will make the rules easier to update as technology evolves. One expected benefit is that those taking out loans, credit cards and overdrafts should be given clearer information about the costs and key terms of their finance, leading to more informed decisions. The reforms will be part of the Financial Services and Markets Bill introduced in the King’s Speech on 13 May 2026. See: https://www.gov.uk/government/news/consumer-credit-act-reformed-to-protect-consumers-and-support-modern-finance Nationwide crackdown on dodgy high street shops A major police offensive was announced last week that will tackle dodgy shops linked to organised crime. Rogue high street businesses will face raids, closures and cash seizures. New police officers are being recruited across the country in an initiative that aims to build intelligence and have more dedicated officers tackling organised crime on the ground. Training will help operatives to identify suspicious businesses. The National Crime Agency estimates that some £12 billion of criminal cash is generated each year in the UK, with £1 billion laundered through high street businesses like mini-marts, barber shops, vape stores and sweet shops. Some businesses are also involved in selling fake goods, tax evasion, illegal working and illegal drug supply. Trading Standards is also set to receive an additional £6 million to bolster its response to sham businesses. A new High Street Organised Crime Unit involving government departments, policing partners and Trading Standards is being set up to help identify what else is needed. Business leaders have welcomed the initiative. Association of Convenience Stores Chief Executive Ed Woodall said: “Local shops tell us that rogue traders on high streets are causing massive damage to their businesses and the wider community, so we strongly welcome this government action to back responsible retailers and crack down on the organised crime gangs that are fuelling illicit trade.” See: https://www.gov.uk/government/news/new-high-street-unit-set-up-in-nationwide-blitz-on-dodgy-shops Independent review commissioned on face-to-face banking access An independent review will consider what needs to be done to protect access to face-to-face banking in the UK. The report’s findings will influence government policy and actions where banking access is at risk. Bank and building society closures continue to make news headlines and many businesses now choose to bank online. However, for businesses and consumers who rely on in-person banking services, the closures are creating some considerable headaches. The independent review will be headed up by Richard Lloyd, who has previously served as a Which? director and a board member of the Financial Conduct Authority. The review will gather evidence on the impact of branch closures, identify who is most affected and assess whether further action is needed to protect access. A report and recommendations are expected by October 2026. See: https://www.gov.uk/government/news/government-reviews-access-to-face-to-face-banking-services UK unemployment rises to 5% but inflation drops to 2.8% Official figures from the Office for National Statistics (ONS) show that the unemployment rate in the three months to March 2026 has risen to 5% from 4.9%.  Combined with a drop in the number of job openings and slowing wage growth, the figures paint an uncertain picture for the labour market in the coming months. Some analysts are suggesting that the figures are showing the effect of the Middle East war on the jobs market. The ONS also reported that inflation fell to 2.8% for the year to April. This compares to 3.3% in the year to March. The drop is largely attributed to lower gas and electricity bills. Analysts still expect inflation to increase over coming months due to the conflict. Some estimates suggest that inflation could reach 4% by the end of the year. Slowing wage growth and increasing unemployment usually create the expectation that the Bank of England will cut interest rates. However, with the jury still out on how the Middle East conflict will impact inflation this seems unlikely in the short term. The Bank of England will next meet to decide on interest rates on 18 June 2026. See: https://www.ons.gov.uk/

22nd May 2026 – Hillmans Weekly Update

22nd May 2026 – 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 bank holiday weekend. 

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

As part of the continued development of our TaxStore® platform, we are continuing to expand our new Side Hustles Hub (https://www.taxstore.com/side-hustles-hub), which includes guides, ideas and practical resources for individuals looking to start an additional income stream or business.

Whether you are looking to build a second income, start a small online business or explore new opportunities alongside employment, the hub is designed to provide practical guidance and ideas to help you get started.

Featured Articles This Week

Set Up a Print on Demand Business in the UK
A practical guide covering how print on demand businesses work, choosing products, setting up an online store and understanding some of the tax and business considerations involved.

Read the article here:
https://www.taxstore.com/side-hustles/set-up-print-on-demand-business-in-uk

How to Start a Dropshipping Business in the UK
An introduction to starting a dropshipping business, including choosing suppliers, setting up an ecommerce website and understanding the key considerations when running an online business.

Read the article here:
https://www.taxstore.com/side-hustles/how-to-start-dropshipping-business-in-uk

New side hustle articles and resources are added regularly, so please bookmark the Side Hustles Hub and check back for the latest guides and ideas.

You can explore the wider TaxStore® platform here:
https://www.taxstore.com

Credit control: The quiet discipline that keeps a business alive
Running a business in recent times has been a lesson in resilience. Costs continue to increase and customers are cautious. Cash is proving tight for many businesses and credit control is a core discipline for keeping a business afloat in such times.

When businesses get into financial trouble, it is often because they have run out of cash and not because they are unprofitable on paper. Credit control sits right at the centre of solving that problem.

When sales are made on credit, cash can often arrive weeks or even months later than expected. VAT, PAYE and suppliers, on the other hand, still need paying on time. A single large customer who pays 30 days late can be enough to put a major strain on a small business.

Effective credit control can help to turn sales into cash in a more predictable way. So, what is involved in credit control?

Agree payment terms and issue invoices promptly
Good credit control begins before the invoice is raised. Having clear payment terms that are agreed with the customer before work starts helps set expectations on both sides.

Try to avoid any delays in sending invoices out. For instance, if invoices are due when work reaches a certain stage, ensure that you are keeping track of the work done and send the invoice as soon as the trigger point is passed. The earlier you can send an invoice, the earlier you stand to receive payment.

Enforce your payment terms
Having agreed your payment terms, you then need to enforce them. If customers are routinely allowed to drift beyond your stated terms, you are telling them that your deadlines are flexible.

For instance, if you include a 14-day term on your invoice but only start chasing at 45 days, you may find that most customers do not pay until around the six-week mark. On the other hand, if you follow up politely the day after the 14 days have passed, the difference in cash flow can be dramatic.

It can feel awkward to chase payment, and you may be concerned it will damage your relationship with your customer. However, most well-run businesses expect to be chased if they miss a due date. Clear communication and timely reminders show that you run an organised business.

Keeping your tone consistent and professional helps normalise the process and makes it clear that payment is simply part of how you do business, not a personal criticism of the customer.

Spot problems early
Good credit control can help you spot problems early. When a reliable customer starts to delay payment, that’s usually because something has changed. Sometimes it is simply an administrative adjustment, but it can also be the first sign that they are experiencing some financial difficulty.

If you catch that early, you may have some options. For instance, you may be able to tighten credit terms, request payment upfront, or pause work before you are out of pocket.

You may be surprised at how helpful it can be to regularly review your aged-debtor report.

Make it a routine part of your business
On that subject, the most effective credit control systems are regular and documented. Make credit control a regular part of the week, rather than something only considered once non-payment has become a problem.

A weekly review of outstanding invoices and use of standard reminder emails takes the emotion out of things. Your accounting software may be able to automate some parts of the process for you.

Conclusion
Businesses that take credit control seriously are less likely to face sudden cash crises.

It is not about mistrusting customers, but rather helping ensure that the value you create for your customers is turned into cash in a timely and reliable way. Credit control can be the difference between growth and constant firefighting.

If you would like help reviewing your current credit control processes and understand what your debtor figures are telling you, or putting something more robust in place, please get in touch. We would be happy to help you!
 
What will happen to interest rates in 2026?
The ongoing Middle East conflict has raised concerns over its effect on UK inflation and interest rates in the coming months.

At its most recent meeting, the Monetary Policy Committee (MPC) voted to maintain the Bank of England interest rate at 3.75%. In its report accompanying the decision, the
Bank set out some potential scenarios for the coming months.

Here we review what could happen to interest rates in 2026.

How interest rates control inflation and dampen growth
The Bank is tasked with using interest rates to influence inflation, with the target of keeping inflation below 2%. Inflation was 3.3% in March. When inflation is above target, increasing interest rates encourages less spending, which reduces demand and helps to keep price rises in check.

Raising interest rates can dampen growth, though it may already be negatively impacted by the conflict. In other words, increasing interest rates can have a doubly dampening effect.

Earlier in 2026, inflation appeared to be on a downward trend but the conflict in the Middle East has affected oil supplies and prices in a way that makes increased inflation likely.

The Bank of England appears to have adopted a ‘wait and see for now’ policy, as they look to see the extent of the inflationary increases. It is likely to take a few more weeks for the effects of price changes to work their way through the system.

Potential scenarios ahead
The MPC’s report considers some potential scenarios and how the Bank may respond.

• Scenario A: Oil prices peak at $108 per barrel in 2026 before falling back to below $80 by early 2027. Gas prices similarly peak and fall back within a similar time frame. Secondary effects on inflation, where wages and prices of other items rise, are limited.    
• Scenario B: Prices peak in a similar time frame to Scenario A but take longer to fall back. This has a more prolonged, but modest, effect on inflation.  
• Scenario C: Energy prices rise sharply and stay high for a prolonged period. Inflation rises to over 6% by early 2027.

Scenario C is the most adverse scenario of the three and modelled reactions to this scenario suggest that multiple interest rate rises would be needed, perhaps reaching 5.25%, to bring inflation down more quickly.

The MPC note that the effect that this would have on growth, which is also forecast to have weakened, would need to be considered when deciding on actual rate rises.

Another possible alternative to these scenarios is that the situation in Iran resolves quickly, prices come back under control and there is no effect on interest rates.

The MPC’s report does not indicate which scenario is more likely, however, Andrew Bailey, the governor of the Bank of England, told the BBC that he considered scenario B to be the most likely.
 
Rates have still gone up
Although the Bank has not yet adjusted the official rate, interest rates on loans and fixed-rate mortgages have already increased in the weeks since the conflict started based on lenders’ expectations of what will happen in 2026.

This has already affected the housing market, with some buyers finding that their mortgage offer has collapsed or become unaffordable, and those renewing fixed-rate deals are finding that their options have suddenly become more expensive.

Clearly, there continues to be uncertainty about the scale and effect of the conflict on household and business finances. As ever, forecasting cash flows and planning for how changes in interest rates will affect your business’ finances remain important. If you need any help with this, please do get in touch. We would be happy to help you.

See: https://www.bankofengland.co.uk/monetary-policy-report/2026/april-2026
 
Fuel prices: Latest monitoring report from CMA
The Competition and Markets Authority (CMA) has published its monitoring report on fuel prices for April. They have found that the rapid increase in fuel prices since the Middle East conflict started has been driven by higher oil prices rather than profiteering by fuel retailers.

Analysis conducted by the CMA for the report shows that, in general, retailers’ fuel margins, the difference between the amount they sell for and the amount they pay, were broadly unchanged between February and March and are similar to margins throughout 2025. Average margins were 10.7 pence per litre for March and 10.3 pence per litre for February.

The CMA did note a minority of retailers had seen their fuel margin increased, and this will be the subject of further investigation for their May report.
There does, however, appear to have been a period of notably higher margins before the conflict started in December 2025 and January 2026. Average margins were 12.7 pence per litre for those months compared with 10.0 pence per litre in November 2025. The CMA is investigating the reasons for this.

Fuel margins are still higher than have historically been the case. It is thought that this is because of insufficient competition.
 
The CMA’s recently introduced Fuel Finder scheme may help to increase competition. The scheme makes it easier for drivers to shop around for the cheapest fuel, and could add pressure on retailers to bring prices and margins down.

The monitoring report indicates that shopping around could save drivers up to £9 per tank.

Sarah Cardell, Chief Executive at the CMA, commented that the lack of increase in retailer fuel margins shows that the CMA’s increased scrutiny is working. She said: “We will remain vigilant to ensure any fall in costs is passed on quickly to motorists.”

See: https://www.gov.uk/government/news/cma-publishes-latest-monitoring-report-on-road-fuel-market
 
Pub closures blamed on costs and disproportionate tax burden
The British Beer and Pub Association (BBPA) have reported that 161 pubs closed across the country in the first three months of 2026. It is estimated that this has led to the loss of 2,400 jobs. Scotland has been the most heavily affected, with 41 closures between January and March.

The BBPA have called for longer-term changes, including an overhaul of taxes affecting the hospitality industry.

Emma McClarkin, chief executive of the BBPA, said: “The scale of these closures is avoidable because pubs are doing a brisk trade, but their profits are wiped out by a disproportionate tax burden and tax costs. We want to work with government to establish a permanent long-term plan that will deliver permanently lower bills, a fairer system and ultimately protect this treasured sector.”

A 15% relief on business rates for pubs came into effect in April 2026 and will be followed by a two-year freeze. A government spokesman also noted extended opening hours for the World Cup and alcohol duty cuts on draught pints as part of the support that is currently being offered.

However, increased employment costs and shifting consumer habits continue to make trade challenging for many pub businesses.

If your business is under pressure by tax or other costs, getting early advice can make a big difference to your options. Please feel free to contact us; we would be happy to help you.

See: https://www.bbc.co.uk/news/articles/c9d355nw7jzo
 
Fined for failing to take out employers’ liability insurance
A visit from the Health and Safety Executive (HSE) resulted in a Cheshire-based scrap metal business being fined £1,000 plus costs of £2,000 for failing to have employers’ liability insurance in place.

Employers are legally required to insure against liability for injury or disease to their employees arising out of their employment. It is a compulsory insurance for businesses in Britain and Northern Ireland.

HSE principal inspector Emily Osborne said: “[Employers’ liability insurance] is not a trivial optional extra, it is a compulsory requirement that is designed solely to protect employees.”

A free guide is available from HSE that provides information about employers’ liability insurance in England, Scotland and Wales and who needs to have it. HSENI, the health and safety body for Northern Ireland, also have guidance available.

See: https://press.hse.gov.uk/2026/04/27/company-fined-for-not-having-compulsory-insurance-for-its-workers
 
Legal challenges to FCA car finance compensation scheme
The Financial Conduct Authority (FCA) has received legal challenges to its car finance compensation scheme.

The compensation scheme relates to finance taken out to buy a car, motorbike or van between 6 April 2007 and 1 November 2024. Many lenders of such finance did not provide important information about the agreements, and broke FCA rules. The FCA estimates that around 12.1 million agreements made during this time are eligible for compensation.

The scheme, which is due to start on 30 June 2026 for loans taken out from 1 April 2014, has received broad support and a commitment from most lenders to implement it.

However, the scheme has now received four legal challenges. One is from Consumer Voice, and the other three are from lenders: Volkswagen Financial Services, Mercedes-Benz Financial Services and Credit Agricole Auto Finance.

The FCA has said that it will defend the scheme robustly as lawful and the best way to resolve such a widespread, long-running and complex case.

In view of the fresh uncertainty these legal challenges create, the FCA has said that it is “engaging at pace with lenders and consumer groups” and will provide further advice shortly.

In the meantime, the FCA continues to advise consumers to complain directly to their lender. They remind complainants that this is free to do and does not require the services of a law firm or claims management company that will take a cut of any compensation.

See: https://www.fca.org.uk/news/statements/fca-statement-legal-challenges-motor-finance-scheme
 
Export to the EU: Low-value parcel rules change on 1 July
Starting 1 July 2026, a fixed customs duty of €3 will be applied to small parcels valued at less than €150 exported to the EU.

The rate will be applied to all goods exported to the EU by non-EU businesses that are registered in the EU’s Import One-Stop Shop (IOSS) for VAT purposes.

Whether the rate will also be applied to goods sold by traders that are not registered in the IOSS remains under review.

The new fixed customs duty is a temporary measure that will stay in place until a permanent solution to eliminate the customs duty relief threshold comes into force. At that time, all goods under €150 will have customs duty applied at the normal EU tariffs for individual products.

A so-called ‘handling fee’ is also under discussion by the EU Council, however, this is separate to these measures.

Government guidance is available on how to register for the VAT IOSS scheme to report and pay VAT due on imports of low-value goods to consumers in the EU, Northern Ireland, or both.

See: https://www.consilium.europa.eu/en/press/press-releases/2025/12/12/customs-council-agrees-to-levy-customs-duty-on-small-parcels-as-of-1-july-2026/

15th May 2026 – 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
 

Introducing More from TaxStore®
Following last week’s launch of the new Hillmans website and TaxStore®, we’ve been thrilled by the response so far and would like to thank everybody who has visited the new platform and shared feedback with us.

As part of the launch, we’ve introduced a growing range of digital resources, business guides and service hubs designed to make accounting, tax and business support easier to access both online and in-store.

Some of the new areas we’re continuing to develop include our:

Tax Hub
Practical tax guidance, updates and articles covering topics including Self Assessment, VAT, Making Tax Digital, limited companies and property tax.

Side Hustles Hub
Ideas, guides and resources for individuals looking to start a side hustle, earn additional income or explore new business opportunities.

Funding Hub
Information and resources covering business funding, finance options, startup support and growth opportunities for businesses.

Featured TaxStore® Article of the Week
Making Tax Digital for Income Tax Explained – What You Need to Do

This week’s featured article explains the upcoming Making Tax Digital (MTD) changes for Income Tax, including who may be affected, what records will need to be kept digitally and when the new rules are expected to apply.

Read the full article here:
https://www.taxstore.com/tax-hub/making-tax-digital-for-income-tax-explained

You can also watch our first TaxStore TV video:
Making Tax Digital Explained in 3 Minutes (UK 2026 Guide)
https://www.youtube.com/watch?v=EOitw2P210U

You can explore the wider TaxStore® platform and resources hub here:
https://www.taxstore.com

Four simple ways to improve business profit within 12 months
Most businesses don’t need big ideas or complicated plans to improve profit. In practice, profits will usually increase by tightening up a few everyday things and being more deliberate about how time and effort are applied.

Almost everything you can do to improve profit fits into one of four areas:

1. Get more customers.
2. Sell more to your existing customers.
3. Put prices up.
4. Reduce costs and waste.

Getting more customers
Some customers cost you more to serve than they give you. Avoiding these kinds of customers and finding more profitable ones can make a big contribution to your bottom line.

First, you may to analyse your customers to find out which ones make you money, and which don’t. Many businesses find that most of their profit comes from a small proportion of their customer base.

Once you know which customers are profitable, identify the characteristics they have in common. This will help you identify what your ideal customer looks like.
Then consider what you can do to attract more of those customers.

Selling more to existing customers
This is often the easiest and cheapest way to improve profit. You already have customers who trust you. Many of them would be happy to buy more if you provided the right opportunity.

Start by making a list of your top 20 customers and ask:

• What else do they buy elsewhere that we could provide?
• Do they already ask us for things we don’t supply yet?
• When did we last speak to them properly?

You could consider scheduling some time each quarter to email or call previous good customers. Let them know about a current offer or a seasonal service that may them.
 
Raising prices without losing good customers
Increasing your prices is another way to improve profitability, but it is often avoided due to the fear of upsetting customers.

Using your analysis of which customers don’t make you money, look especially at those where work seems to overrun or generate complaints or rework, or customers that feel stressful to deal with compared to what they earn for you.

Put the price up on this work so it becomes profitable for you. If the customer accepts the new price, then all well and good. If they decide to go elsewhere, the effect on your profit could be minimal. You will gain time to find a customer who will pay better.

Other things you could think about include:

• Don’t discount by default. If a discount is always expected, it’s not a discount; it’s your real price. If discounts are the norm in your type of business, then at least ensure that the discounted price is the price you need to get. If someone pays full price, that’s a bonus. 
• Charge for extras. Make sure that you price extras rather than absorbing them. Extras could include variations to the work agreed, urgent work and additional meetings.

Reducing costs and wasted effort
Cost savings don’t need to feel painful if they focus on waste rather than essentials.

A prime candidate for cost savings is unused or rarely used subscriptions. Check for software, apps, memberships and other tools that are no longer useful for your business and cancel them.

Review your suppliers and consider whether you could get a better deal by switching to someone else. Are you paying for a service level you don’t need? Have prices been creeping up and you’re no longer getting a good deal?

Final thoughts
Improving profit doesn’t require a new business model or a lot of complicated tools. Picking one of these main areas and concentrating on it for a time often yields good results.

With the uncertainty the economic climate presents, ensuring that you are maximising profitability will help to make your business more resilient and better able to weather any storms.

Why not talk to us about our 12-month profit improvement tool which is designed to get you thinking about how you can take advantage of future opportunities and improve your bottom line!
 
AI providing misleading advice on VAT return filing
Incorrect advice provided by Artificial Intelligence (AI) and other websites is contributing to a growing trend of late VAT return filing and payment.

HM Revenue and Customs (HMRC) are reminding VAT-registered businesses that there is no extension to the statutory due dates when they fall on weekends or bank holidays.

HMRC’s systems do allow for VAT returns to be submitted at weekends or on bank holidays. However, if a business cannot do that, then the return must be submitted by the last working day before the due date. HMRC will not accept weekends or bank holidays as a reason for filing a VAT return late.

It is similar to VAT return payments. When the due date falls on a weekend or bank holiday, payment must clear into HMRC’s bank account by the working day before the due date, unless a taxpayer’s bank allows faster payments on weekends and bank holidays.

Missing the due dates for submitting VAT returns and making payments can result in interest and penalties, so it is important to have a good reminder system to ensure the deadline is met.

If you need any help with filing your VAT returns or any other aspect of VAT advice, please do get in touch. We would be happy to help you!
 
Companies House reviewing company records retention period
Companies House are currently reviewing how long they hold the records of dissolved companies. Concerns have been raised about whether records should be held for longer than 20 years.

Currently, Companies House keeps company records for as long as a company is active. Once a company is dissolved, the records are kept for 20 years. At that point, selected records are transferred to the appropriate Public Records Office. Unselected records are destroyed.

While the review is ongoing, Companies House has paused any destruction and transfer of records.

If the review concludes that a change to the retention period is needed, a public consultation will be run to get views on any new proposals.

See: https://www.gov.uk/government/news/companies-house-is-reviewing-the-retention-period-for-dissolved-company-records
 
April was a record month for tax return filing
HM Revenue and Customs (HMRC) have reported that 298,905 people filed their Self Assessment tax return in the first week of the tax year, with a record total of 737,891 returns being filed during the month of April 2026.

HMRC are highlighting several benefits to filing early, including:

• Getting a refund sooner if you are due one. 
• Reducing stress by avoiding the pressure that comes from filing at the last minute. 
• There is no need to pay tax early but knowing how much you owe ahead of time helps with budgeting. 
• Any mistakes can be checked and corrected before the deadline. 
• A processed tax return can be used as proof of income for mortgage and loan applications or benefit claims.

More than 12 million tax returns are due to be filed by 31 January 2027, so there are still plenty of returns to be filed yet.

If you would like help in preparing and filing your 2025/26 tax return, please do get in touch. We would be happy to help you!

See: https://www.gov.uk/government/news/298905-self-assessment-filers-quick-off-the-mark
 
Businesses encouraged to sign up to Cyber Resilience Pledge
The government is encouraging businesses to boost their resilience and strengthen their cyber defences.

Developments in Artificial Intelligence (AI) are making it easier for cyber criminals to find vulnerabilities in IT systems and carry out attacks in ways that would not have been possible a year ago. Hostile cyber activity is growing more intense, frequent and sophisticated. Government figures suggest that 43% of UK businesses experienced a cyber breach or attack in the last year.

Cyber Security Minister Baroness Lloyd said that computer security is now fundamental to economic growth, job creation and the resilience of services that people rely on each day. She said, “As threats evolve, businesses of all sizes need to step up and take practical action now.”
 
Businesses are being encouraged to sign up to a Cyber Resilience Pledge. The Pledge will launch later in 2026 and sets out three actions for businesses to take.

1. Make cybersecurity a board-level responsibility.
2. Sign up for the free Early Warning Service run by the National Cyber Security Centre (NCSC).
3. Require all businesses in their supply chain to have Cyber Essentials certification.

Taking these actions will not guarantee protection from cyber attacks, but they can have a positive impact on a business’s resilience.

For more information about the Pledge, see: https://www.gov.uk/government/publications/cyber-resilience-pledge
 
Questions to ask when using AI to find IT vulnerabilities
The National Cyber Security Centre (NCSC) has published a new blog on questions to ask when using AI models to find vulnerabilities in your IT system.

Cyber criminals are increasing the use of Artificial Intelligence (AI) to enhance their ability to make cyber-attacks. However, AI can also be used by businesses to discover vulnerabilities in their own systems first and shore them up.

Before throwing caution to the wind though, the NCSC recommends considering some important questions. These are:

• What are you trying to achieve by using AI?
• Is using AI the best way to improve security?
• Do I have a process to manage any vulnerabilities that AI finds?
• How should I prioritise vulnerabilities?
• What are the risks when using AI to find vulnerabilities?
• What AI model should I use?
• Where should I start?
• What’s my long-term plan to deal with new AI models?
• Where do I need to invest in people?
• Do I know how everything we develop or use is patched?

To read the blog in full, see: https://www.ncsc.gov.uk/blogs/10-questions-ask-using-ai-models-find-vulnerabilities
 
Government commits to self-driving technology
The government has announced it has signed a new partnership with Wayve, a British company that is developing self-driving vehicle technologies.

The partnership will focus on shared research that will support the ongoing development and deployment of automated vehicles.

It is hoped that the partnership will act as a catalyst for new investment, skilled jobs and long-term growth across the UK car industry.

A Memorandum of Understanding sets out how the Department for Business and Trade and Wayve will collaborate on research helping to take self-driving vehicles from prototypes through to commercial reality.

See: https://www.gov.uk/government/news/government-and-wayve-sign-partnership-to-accelerate-britains-self-driving-future 

Hillmans has a new look, introducing TaxStore®

I’m pleased to let you know that we’ve recently updated our Hillmans.co.uk website as part of our brand refresh. Along with this new look, I’m excited to introduce TaxStore® at www.taxstore.com, our new online platform designed to sit alongside our existing Hillmans services. We’ve been using the same branding for over 10 years, so this update reflects how our services have developed and the more modern, flexible ways we can now work with our clients.

Over the coming weeks, you may also notice updates to our Hillmans branding across our emails, social media and office signage as part of this rollout. The idea behind TaxStore® As many of you know, before becoming a Chartered Accountant, I ran a village Post Office, a place where people could access a wide range of services in one convenient location. That same “one-stop shop” idea has always shaped Hillmans. As the tax system continues to move online, we’ve been thinking about how to bring that “one-stop shop” approach into a modern, digital environment to sit alongside Hillmans. That thinking led to TaxStore®, a central platform powered by the Hillmans team. What is TaxStore®? TaxStore® isn’t a replacement for Hillmans or the personal service we provide; it’s designed as a central place where you can manage your tax affairs, access services and work with us more flexibly, whether online, in person, or both. Through the platform, you will be able to:     •    Manage your services: View and purchase services through the portal     •    Approve returns quickly: Approve returns and submissions online in seconds     •    Stay connected: Message our team directly and book appointments online     •    Upload documents easily: Scan receipts and upload documents using your phone     •    Stay in control: See what’s filed, what’s due, and what needs action     •    Access client resources: Access a range of exclusive resources     •    Work flexibly: Log in online or on mobile, anytime TaxStore.com also provides access to a range of free resources and learning hubs, including our MTD Tax School, Funding Hub, Side Hustles Hub and Tax Hub. What this means for you Hillmans isn’t changing. You can continue working with us exactly as you do now, including face-to-face meetings and traditional communication. TaxStore® simply gives you additional options if you prefer to work more digitally. We understand some clients prefer digital tools, while others prefer a more traditional approach, and we will always support both. The rollout We’re initially launching the TaxStore® portal to help support clients with the new Making Tax Digital for Income Tax (MTD for IT) requirements. After this, we’ll be rolling it out across all our services and to our full client base over the next 12 months, and we’ll contact you directly when your account is ready, along with details on how to log in and use the platform. We’ll also be adding step-by-step guides and tutorials on TaxStore.com to help you get the most from the portal. In the meantime, you can explore our new TaxStore® platform here: https://www.taxstore.com Or visit our updated Hillmans website here: https://www.hillmans.co.uk We’ve also created a short FAQ page which explains how everything works, the benefits and what this means for you: https://www.hillmans.co.uk/frequently-asked-questions We look forward to sharing more over the coming months as we continue rolling TaxStore® out to clients and developing the platform further over time. As always, if you have any questions, please feel free to get in touch. Have a great weekend. Kind regards,   Steve   Steven Hillman BSc (Hons) FCA Chartered Accountant Tel: 01934 444100

1st May 2026 – 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

What Apple’s CEO Handover Tells Business Owners About Succession Planning
Apple announced last week that Tim Cook will step aside as chief executive on 1 September 2026, and hand the role to the current head of hardware engineering, John Ternus. Cook will remain closely involved as executive chairman.

If you are a business owner or founder, you likely think about who is going to take over your business when you decide to retire or withdraw from it. Apple described their leadership change as “a thoughtful, long-term succession planning process”.

What lessons can be gleaned from Apple’s approach?

Succession takes time, so start early
Most obviously, succession planning needs to start well before the founder or business owner decides they want to leave.

John Ternus has spent 25 years at Apple and has been involved in many of its product lines. He described Tim Cook as his mentor, suggesting that, at least in recent years, he has been steadily expanding his responsibilities and receiving incremental training and experience to make him ready for the role.

Succession then, is about building over time and not simply identifying a replacement at the last minute.

In practical terms, this means:

• Identifying potential successors well before they are needed.
• Rotating responsibilities so that they can build a breadth of experience.
• Testing their decision-making and building their confidence to take tough decisions when under pressure.
• Allowing room for failure while you are still around.

Even if the person you have identified never takes the top job, the process can still strengthen your business.

Internal successors can reduce risk
Apple’s decision to promote from within, means that its new CEO will have knowledge about the business that cannot be bought or quickly transferred to an external hire.

Hiring someone who does not know the business to take over can leave it exposed to risks. For instance, business strategy can be disrupted, there can be a loss of vital relationships, and the business can become unsettled while a new status quo becomes established.

Promoting an internal successor does not eliminate those risks, but it lessens the unknowns. Continuity in leadership can provide stability.

The outgoing leader still matters
Another notable feature of the change in Apple’s leadership is that Tim Cook is moving to an executive chairman role, rather than there being a clean break.

His continued involvement means his hard-won experience remains available to the business, but by defining a new role, he does not interfere with the authority of the new CEO.

For business owners, a common challenge is how to step back in the business without becoming a bottleneck. If this is poorly handled, it can lead to:

• Confused accountability amongst staff.
• Slow decision-making.
• A successor who feels undermined.

The lesson is not that owners must remain involved, but rather that if they do, their roles need to be clearly redefined.

Final thoughts
Apple’s CEO handover is not a template for every business, but it does provide some food for thought. Succession planning often works best when it is done gradually and deliberately.

If you would like personalised advice on succession planning, the tax issues that go along with it, or on other areas of making your business grow, please get in touch. We would be happy to help you!

See: https://www.apple.com/newsroom/2026/04/tim-cook-to-become-apple-executive-chairman-john-ternus-to-become-apple-ceo/
 
Unemployment rate drops in February
The latest figures from the Office for National Statistics (ONS) show that unemployment in the three months to February fell to 4.9%. It previously stood at 5.2%.

However, Liz McKeown, who is director of economic statistics at the ONS, said, “Alongside falling unemployment, the number of people not actively seeking work increased, with data suggesting fewer students seeking work alongside their studies.”

The inactivity rate, which accounts for the proportion of unemployed people not looking for work, increased to 21% from 20.7%.

If people are opting out of looking for a job altogether, that could suggest they are finding limited opportunities or that the roles available are of poor quality. Whether this is related to indications that Artificial Intelligence (AI) is reducing entry-level roles available, is not clear.

Whatever the case, it seems that the improvement in the unemployment rate may not quite be the good news it first appears to be.

See: https://www.bbc.co.uk/news/articles/cjd84pkkjgpo
 
Are You Prepared for Cyber Threats?
The National Cyber Security Centre (NCSC) has issued a call to action to business leaders to build resilience to severe cyber threats. The NCSC reports that their Annual Review 2025 shows a widening gap between the rising pace of cyber threats and the UK’s collective resilience.

While the call to action and accompanying guidance are aimed primarily at the leaders of large organisations, cyber threats continue to be a challenge faced by businesses of all sizes.

The NCSC advises that when a cyber incident happens, it is often too late to start working out what should be done and who will do it. Therefore, it can pay to get the business ready so that if a cyber-attack does happen, it is better able to continue operating through the disruption, as well as to recover as quickly as possible.

For example, you might consider questions like:

• If your website or computer network were taken out for a period, how would that affect your business?
• What adjustments do you need to make so your business can continue running?

The NCSC concludes that the organisations that fare best in severe cyber incidents are those that have put in place the steps needed to withstand and recover from disruption.

See: https://www.ncsc.gov.uk/blogs/preparing-for-severe-cyber-threat-why-leaders-must-act-now
 
Why Financially Successful Business Owners Can Still Feel Out of Control
Your business can be doing well financially but you can still feel uncertain about where your personal finances are heading.

For many business owners, wealth has built up gradually and unevenly. For instance, you might have various pensions opened for tax reasons, personal savings and investments built up from good trading years, and surplus cash held in the business “just in case”. You may also be counting on the future sale value of your business.

Income from a business can change year to year, as do tax rules. And decisions about personal finances are often dictated by what the business needs at that moment. These challenges can make it difficult to see the overall picture for you personally.

What practical steps can you take to make sure that your current arrangements will help you to meet your future plans?

Start by getting everything on one page
Would you find it hard to answer the question: “What do I have, and where is it held”?

If so, it would be worth pulling together a basic summary that covers:

• Pensions (including any old workplace schemes).
• Personal savings and investments.
• Surplus cash held in the business.
• Mortgages and other long-term borrowing.
• Estimates on the eventual value of the business.

There is no need to make it complicated. A simple list with current values and how much is being contributed each month is likely to be enough to provide perspective.

Be clear about what each pot of money is for
A common issue can be that money has accumulated without having a clear job to do.

For example, cash in the business might partly be a buffer for emergencies, partly earmarked for a future tax bill and partly just an amount left over from good trading years. Or, you might be treating your personal investments as “long-term”, without thinking about whether that means saving for retirement, university costs, or something else.

Giving each pot a purpose can make your decisions easier. Cash that you need within the next few years can often be treated differently from money that genuinely will not be touched for a decade or more. Without this distinction, it can be easy to be too cautious or too exposed without realising it.

Question long-held assumptions
As circumstances change, it is good to pause and ask whether your key financial decisions are still based on current reality, rather than on assumptions that were reasonable at the time but may now be out of date.
 
For instance:

• If you are relying on the business to fund retirement, periodically sense-check what that might look like. Rather than working on a best-case sale value, think about what happens if the timing or value is different from what you expect. Is further investment in the business going to give the right payback for you, or is there another option that would be better for you? 
• If you have been holding large cash balances in the business to cover uncertainties, ask what that cash is actually for now. Is it still needed for those uncertainties, or is it just sitting with inflation quietly eroding its value? 
• If you have pensions or investments set up many years ago, look at whether they still make sense. Perhaps they carry higher charges than another equivalent investment, or perhaps they no longer fit with how you now think about risk and timescales.

Concluding thoughts
Stepping back and getting a sense of the wider picture of your personal finances can help to make sure that they are working in the right way for you. From there, it becomes clearer where you might need to take action and where things can be left alone.

If you would like help in making sense of your personal finances, give us a call. We would be happy to help you.
 
Consultation on Process for Handling Flexible Working Requests
The government has opened a consultation on a new consultation process that employers will need to follow when handling flexible working requests.

The years since COVID have seen a big cultural shift in attitudes towards flexible working, including remote and hybrid working. While there are advantages for many employers and employees, there are some situations where flexible working may not be feasible. For instance, a bus driver cannot work from home to drive a bus.

The new Employment Rights Act is introducing changes that will make it more likely that flexible working requests will be accepted, but it will still be possible for employers to reject them.

Since April 2024, a requirement to consult with the employee about a flexible working request has been in place. However, the way this consultation happens is not specified. Therefore, the government is using powers within the Act to introduce a new consultation process that aims to standardise how employers reject a request.

The process is intended to encourage employers and employees to fully explore viable solutions that work for both and then try them out.

A new ‘reasonableness test’ will come into force in 2027 and means that employers must accept statutory flexible working requests that are reasonable and feasible. The government intends to provide statutory guidance to help employers understand what their obligations under the new reasonableness test will be.

The consultation seeks evidence from employers about how they currently handle flexible working requests. This information will then be used to shape the guidance and resources made available to employers and employees.

To read more and take part in the consultation, see: https://www.gov.uk/government/consultations/make-work-pay-improving-access-to-flexible-working
 
HSE Consultation on Workplace Incident Reporting
The Health and Safety Executive (HSE) has launched a consultation on workplace injury and illness reporting. Currently, such reporting is covered by The Reporting of Injuries, Diseases and Dangerous Occurrences Regulations 2013 (RIDDOR).

HSE are consulting on proposed updates to the regulations on how workplace incidents are reported to them.

HSE is consulting on legislative changes that will:

• Clarify definitions within RIDDOR where the existing terminology is unclear or ambiguous. 
• Revise the lists of dangerous occurrences and reportable occupational diseases. 
• Broaden who can formally diagnose a reportable occupational disease to certain registered health practitioners, and not just a doctor registered with and holding a licence to practise with the General Medical Council.

HSE is also seeking views on simplifying the online RIDDOR reporting form to improve its usability.

The consultation is open until 30 June 2026.

To read more about the proposals and respond, see: https://consultations.hse.gov.uk/hse/proposals-riddor-2013/
 
Shared Office Spaces Being Hit by Increased Business Rates
Recent changes to the way co-working spaces are assessed for business rates are causing considerable concern in the business community. Some estimate that the changes amount to a £600 million stealth tax raid.

Previously, shared workspaces have been assessed for business rates based on the individual units. This usually means that the rateable value is low enough to qualify for Small Business Rate Relief (SBRR).

However, because of a legal ruling, the VOA is now valuing shared workspaces as a single establishment. This pushes the rateable value too high for SBRR to apply.

The Federation of Small Businesses (FSB) estimates that nearly 4,000 shared offices could be impacted by the change. Some estimate that small businesses could be facing increased rental costs of £5,400 per year.

Shared offices are often a good first step for entrepreneurs looking to expand from a home setup and into commercial premises. However, many small business owners could now be returning to working from home.

See: https://www.telegraph.co.uk/gift/781ef8314d41c0f4 

Commercial Unit Available – Weston-super-Mare
One of our clients has asked us to share details of a commercial unit currently available to rent in Weston-super-Mare.

The unit comprises approximately 3,230 sq ft, including a newly built mezzanine level (c. 1,200 sq ft), two offices, kitchen area and toilet facilities. It has been recently renovated to a high standard and benefits from CCTV, alarm system, roller shutter access, and 9 parking spaces. The location is close to local amenities, just off Searle Crescent near Asda.

A new 5 or 10-year lease is available at £27,000 per annum (no VAT).

If this may be of interest to you or someone you know, please get in touch with us and we will be happy to make an introduction.

24th April 2026 – 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

Valuing Your Business: What Buyers Look for and What You Can Do About It
If you are thinking about selling your business, whether that is in six months or six years, one of the first questions you will probably ask yourself is “what’s it worth?”

While there are formulas designed to calculate the value of a business, in the end the answer to that question comes from a judgment call made by a prospective buyer who will be weighing up the risk and return of buying your business.

Many business owners focus on the headline profit figure. Of course, profit does matter, but it is only one part of the picture. Buyers focus on how sustainable those profits are, how dependent the business is on you personally, and how easy it will be for them to step in and run it.

Here we set out some of the main factors that typically affect the value of a business and some practical suggestions on steps you can take to improve your position before you go to market.

How profits are assessed
A common technique for valuing small and medium-sized businesses is based on a multiple of maintainable profits. In practice, this usually calls for adjustments to the operating profits of the business.

The keyword is “maintainable” profits.

If last year’s profit includes a one-off insurance payout or an unusually large contract that has since ended, a buyer will strip that out.

Equally, if you run the business via a limited company and pay yourself a low salary and take the rest as dividends, a common scenario for tax-effective pay, a buyer will factor in the cost of replacing you with a manager who is fully paid on the payroll.

The more normalised and repeatable your profits look, the more confidence a buyer will have that they can repeat the same results if they buy the business.

Quality and predictability of income
Two businesses with identical profit levels can be valued differently depending on the way the businesses generate revenue.
 
Buyers tend to prefer:

• Recurring income, such as subscriptions, service contracts, and repeat orders.
• A spread of customers rather than one or two large ones.
• Long-term contracts.

They are likely to worry about:

• Reliance on a single major customer.
• Work that must constantly be re-won.
• Handshake agreements rather than written contracts.

This means that a software business with annual licences that are renewed automatically will usually attract a higher multiple than a project-based agency earning the same amount of profit but from one-off jobs.

If a buyer fears that revenue could fall away six months after completing a deal, they will either lower the price or insist on an earn-out.

Reliance on the business owner
This can be one of the biggest killers of value.

If you are the main salesperson, the technical expert, the relationship manager and the final decision-maker, the business will be hard to sell. From a buyer’s perspective, they would not be buying a business; they would be buying you.

Questions that a buyer might ask could include:

• What happens if the owner leaves on day one after the sale?
• Are systems documented or are they all in the owner’s head?
• Can staff run the business without needing constant input from the owner?

Reducing your business’s dependence on you will increase the value of your business in the mind of a buyer.

Strength of the management team and staff
A capable second-tier of management is a major plus for a business. Even having a small leadership team can make a big difference.
Buyers are likely to look at:

• Staff turnover.
• Whether key employees are tied in with contracts.
• Whether knowledge is shared across the business or siloed in departments.

Should the business struggle if one key employee left, then this is going to make a buyer nervous.
 
Assets and balance sheet health
Some businesses have tangible assets and that adds some comfort to a buyer. For instance, these might include property, specialist equipment, vehicles or valuable stock.

Other businesses may be asset-light. This is fine, but working capital often then becomes more important.

A buyer may want to know:

• How much cash is needed to run the business.
• Whether debtors are slow to pay.
• Whether there are any hidden liabilities, for instance, with tax, warranties or leases.

A balance sheet that shows old customer debts, director loans that go back years or unexplained balances creates uncertainty, which reduces the value of your business in the mind of a buyer.

Legal and regulatory compliance
Buyers and their advisers are likely to want to scrutinise:

• Whether the business is compliant with filing accounts and tax returns.
• VAT and PAYE history.
• Employment contracts.
• Any licences or regulatory approvals.

Should non-compliance in areas be found, this will increase the perceived risk for the buyer and affect how much they are willing to pay.

Steps you can take to improve the value of your business
It is unlikely that you need to transform your business overnight. However, there are some practical steps that can be taken over time that consistently help.

1. Clean up the numbers. Make sure that your accounts are up-to-date, consistent and explainable. 
2. Reduce the business’s reliance on you. Consider how you can delegate decision-making. Document the processes in your business, even where they seem obvious to you. Introduce your customers or clients to other team members. 
3. Secure income where possible. Consider the ways that you could move customers onto contracts, retainers or subscription models. 
4. Diversify your customer base. If one of your customers accounts for more than 25-30% of turnover, look at how you could take on more customers before selling the business. 
5. Invest in systems. Customer Relationship Management (CRM) systems and job-tracking software, as well as written procedures, can help reduce risk for a buyer and make the handover smoother. 
6. Retain key staff. Make sure that you have the right employment contracts in place and consider what incentives might be needed to keep important people in place through a sale. 
7. Plan tax early. The structure of the sale (shares v assets) and your and a buyer’s personal circumstances can materially affect what you take home and what they have to pay. Considering this early can help you to make sure you know what your options are and how they might affect a potential sale.

 
Final thoughts
The best outcomes in selling a business tend to come where the owner has started to think like a buyer well in advance of the sale, even if they are not ready to sell yet.

If you would like a realistic view of how your business might be valued or want to identify the specific issues that might affect a future sale, please get in touch. We would be happy to help you in working towards a sale that will be profitable and help you achieve your goals.
 
Have You Received a Letter from HMRC About MTD?
With Making Tax Digital (MTD) for Income Tax coming into force from 6 April 2026, HM Revenue & Customs (HMRC) have been writing to taxpayers over recent weeks to tell them that they are being mandated into the regime.

MTD became mandatory from 6 April 2026 for sole traders and landlords with a total turnover exceeding £50,000 in the 2025/25 tax year, unless an exemption applies. It involves keeping digital records and submitting quarterly updates to HMRC.

Some taxpayers may have only received their ‘mandation’ letter a few days before the tax year started.

If you have received a letter, and that was the first you knew about MTD requirements affecting your business, there is no need to panic.

The first MTD filing deadline will not be until 7 August 2026. So, you have time to sign up, decide which software to use and then begin to keep your accounting records digitally. If your digital records are up-to-date for the three months starting in April 2026 by the time you need to file the update, then there will be no problem meeting the deadline.

HMRC will not charge you a penalty for not signing up by 6 April 2026, but the longer it is left, the more difficult the task of record-keeping becomes.
If you would like help with any aspect of MTD, from signing up to keeping digital records and submitting returns, please get in touch. We would be happy to help you!

See: https://www.litrg.org.uk/news/hmrcs-latest-letter-drop-about-making-tax-digital-lands-just-easter-start-date
 
CBAM Rules: What Importers Need to Know
The government has published further draft legislation on the UK’s Carbon Border Adjustment Mechanism (CBAM). This will have consequences for importers bringing certain carbon-intensive goods into the UK.

The latest draft rules cover calculating embodied emissions, which form part of how CBAM is computed, and the monitoring and verification of emissions data. The consultation runs until 21 May 2026.

Alongside the draft legislation, the government has also published a policy summary. This is a useful document for businesses to refer to for an overview of how CBAM is intended to operate.

CBAM is due to come into force on 1 January 2027.

The aim is to place a carbon price on specified goods imported into the UK from sectors that are at risk of “carbon leakage”. Carbon leakage is the concern that, as the UK tightens its environmental standards, emissions-heavy production simply moves overseas to countries with looser rules.

In effect, CBAM is designed to level the playing field between UK producers who face carbon costs and overseas producers who may not.

UK businesses that import aluminium, cement, fertilisers, hydrogen, iron and steel and downstream producers that use these goods in their supply chains are likely to be affected by the CBAM rules.

The primary legislation for CBAM is already in place, having been included in Finance Act 2026. The government is now producing secondary legislation that will deal with the practical and administrative details of how the tax works day to day.

The first part of this secondary legislation that deals with the administrative requirements, CBAM rate and carbon price relief, was consulted on during February and March 2027.

See: https://www.gov.uk/government/consultations/draft-regulations-carbon-border-adjustment-mechanism-cbam-emissions-and-verification
 
New “Right to Try” Legislation Removes a Key Barrier to Work for Disabled People
At the end of April 2026, new legislation will come into force designed to address the fear of losing benefits support if a new job does not work out.

For many disabled people and those with long-term health conditions, the risk of triggering a benefits reassessment can be enough to stop them from even trying employment or volunteering. This leaves people stranded on benefits, despite wanting to work.

New legislation aims to address this problem. From the end of April, starting work will no longer automatically trigger a benefits reassessment for people who receive:

• New-style Employment and Support Allowance.
• Personal Independence Payment.
• The health element of Universal Credit.

The new rules also guarantee that volunteering, which is often a first step back into work, will not trigger a benefits reassessment either.

If you are an employer, the rules may remove a barrier that has previously been filtering out suitable candidates before you have had a chance to meet them.

See: https://www.gov.uk/government/news/barriers-to-work-removed-for-disabled-benefit-claimants-as-landmark-legislation-introduced