31st January 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

Chancellor’s speech: An update on economic growth measures
The Chancellor of the Exchequer, Rachel Reeves, delivered a speech last week that served as an update on the government’s plans for delivering economic growth.

The plan largely focused on developments proposed around Oxford and Cambridge as well as a third runway at Heathrow. Here are some of the highlights from the speech.

Oxford and Cambridge Growth Corridor
The Chancellor highlighted the potential growth available in the area between Oxford and Cambridge and feels this could become Europe’s answer to Silicon Valley. Currently, slow transport links and a lack of affordable housing have been identified as holding this potential back.

Improvements to rail transport links with East-West Rail and making Tempsford a mainline station were announced. There are also plans to upgrade roads between Milton Keynes and Cambridge to improve travel times.

A new Cambridge Cancer Research Hospital is being prioritised, and there are plans for a new Fens Reservoir to serve Cambridge and South East Strategic Reservoir near Oxford.

The Chancellor also announced that the Environment Agency have removed their objections to a new development in Cambridge that will provide 4,500 new homes together with schools and business premises.

A new AI Growth Zone in Culham is intended to speed up planning approvals for rapid build-out of data centres. And Cambridge University are planning a new flagship innovation hub in the centre of Cambridge, partly to attract investment and partly to help with building an innovation-focused community.

Third runway at Heathrow
While a third runway has already been previously approved, plans are stepping up to bring this to reality. The government is inviting proposals to be brought forward by the summer and will then take forward a full assessment through the Airport National Policy Statement.

The Chancellor reported that a third runway could increase GDP by 0.43% and create 100,000 jobs.

Other highlights
The Chancellor mentioned other developments as follows:

• Approach to trade: The government will continue to work on building economic relationships with the United States, the EU, and faster-growing economies around the world – China and India were mentioned. 
• Employment system reforms: The Secretary of State for Work and Pensions will be setting out reforms to the welfare system before the Spring Statement. And an Immigration White Paper will bring forward proposals to bring overall levels of net migration down, while the government also looks at visa routes for very highly skilled people. 
• Pensions system reforms: A final post-consultations report on the creation of larger consolidated funds will be published in the spring. 
• Regulatory system: Following discussions with Heads of the largest regulators, an action plan on how they can be more agile and responsive to businesses will be published in March. 
• Planning reforms: The Planning and Infrastructure Bill, to be introduced this Spring, will reduce environmental requirements placed on developers when they pay into the nature restoration fund. Measures will also make it easier to develop new infrastructure like nuclear power stations, trainlines and windfarms. 
• Investment: Further investments by the National Wealth Fund in Connected Kerb and Cornish Metals were announced. A refreshed Carbon Budget Delivery Plan is planned for publication later this year as Net Zero is seen as an industrial opportunity. 
• Infrastructure: Offshore windfarms in areas like East Anglia and Yorkshire could become a reality, and the government plans to work with the private sector to deliver a Lower Thames Crossing that will improve connectivity. Developments to Old Trafford, South Yorkshire Airport and East Midlands Airport were also discussed. The government is also moving forwards with the Wrexham and Flintshire Investment Zone, and the potential of unlocking land around stations is seen as a good way to improve infrastructure in Manchester and Leeds.

To read the Chancellor’s speech in full, see: https://www.gov.uk/government/speeches/chancellor-vows-to-go-further-and-faster-to-kickstart-economic-growth 
 
Rising above the storms: Finding strength in recovery
Severe weather can be an enormous challenge for businesses, and we have seen plenty of it recently. Power outages, property damage, and forced downtime are not just disruptions—they can feel like setbacks that threaten months or years of hard work. If your business has been affected by recent storms, you are not alone, and it’s important to remember that resilience is built in moments like these. 

While you may already be taking steps to recover and regroup, this article is here to offer encouragement, practical ideas, and a reminder of your strength as you navigate this difficult time. 

1. Acknowledge what you’ve accomplished so far
The immediate aftermath of severe weather is often chaotic, but just reaching this point - whether that means safely evacuating your team, assessing damages, or reopening your doors - deserves recognition. It’s easy to focus on what’s left to do but take a moment to appreciate the progress you’ve already made. 

2. Lean on your community 
This is the time to reach out. Whether it’s fellow business owners in your area, local organisations, or your loyal customers, communities often come together after storms to support one another. 

Consider sharing your story - be it on social media, with local news outlets, or directly with your customers. People value transparency and are often willing to help, whether that’s through donations, purchases, or simply spreading the word about your situation. You might be surprised by the generosity and encouragement you receive when you allow others to step in and help. 

3. Focus on small wins 
When faced with a long recovery process, it can be daunting to think about everything that needs to be done. Instead, break it down into small, manageable steps. 

• Got the power back on? Celebrate that!
• Restored internet or phone lines? Another win!
• Completed an insurance claim or arranged for repairs? That’s progress. 

Each small step forward is a reminder that you are moving closer to full recovery. Recognising these wins can help sustain your motivation during challenging times. 

4. Prioritise what matters most 
When everything feels urgent, it’s helpful to pause and prioritise. What will have the most immediate impact on your business and your peace of mind? 

For some, it might mean getting back in touch with clients to reassure them. For others, it could be addressing critical repairs or setting up temporary solutions to resume operations. There’s no “right” way to recover—just the way that makes sense for you, your team, and your customers. 

5. Remember your strength 
Storms test us, but they also reveal our strength and adaptability. Think back to other challenges your business has faced. Each time, you found a way through, and this time will be no different. 

It’s okay to feel frustrated or exhausted, but don’t let those feelings define your story. Every day you continue to take action is a testament to your resilience. 

6. Look ahead with hope 
While the present may feel overwhelming, there is a future beyond this storm. Use this moment to think about how your business can grow even stronger in the years to come. Whether it’s improving emergency preparedness, forging new relationships in your community, or finding innovative ways to adapt, there could well be opportunity in rebuilding. 

A final word of encouragement 
If you’re reading this and feeling overwhelmed, know that it’s okay to take a breath. Getting your business back on track may be more of a marathon than a sprint. However, the work you’re doing now is laying the foundation for better days ahead.

The storm may have disrupted your plans, but it hasn’t changed your ability to move forward. Keep going - you’re doing incredible work, even if it doesn’t always feel that way. Your resilience is inspiring, and your business will weather the storms!
 
Lack of competition in the UK cloud services market
A recent investigation by the Competition and Markets Authority’s (CMA) independent inquiry group has revealed that competition in the UK cloud services market is not functioning as effectively as it could.

Cloud services form the backbone of modern business operations, supporting industries ranging from financial services and retail to digital start-ups and public services. In 2023, UK businesses and organisations spent £9 billion on cloud services, with this figure growing over 30% annually. However, the inquiry group identified several concerns:

• Limited provider options: The market is dominated by two providers: Amazon Web Services (AWS) and Microsoft. These together account for up to 80% of UK cloud spending. Google, which is the third largest provider, has a much smaller share, while other providers struggle to meet the diverse needs of businesses. 
• Barriers to switching providers: There are technical and commercial challenges that make it difficult for businesses to switch cloud providers or to use multiple providers. This often locks businesses into their initial choices, which may not remain suitable as their needs evolve. 
• High barriers to entry: The substantial capital investment required to enter the market restricts competition, making it challenging for new providers to compete or grow. 
• Anti-competitive practices: The inquiry group concluded that Microsoft leverages its dominant position in software to create disadvantages for competitors like AWS and Google. For example, its licensing policies make it harder for businesses using Microsoft software to choose alternative cloud providers.

What is the potential impact on UK businesses?
These findings indicate that limited competition may lead to higher costs, reduced innovation, and lower service quality for businesses. When cloud providers face insufficient pressure from competitors, businesses miss out on better deals and cutting-edge solutions that drive productivity and growth.

Proposed remedies and recommendations
The CMA inquiry group has proposed several measures to address these issues:

• Strategic Market Status (SMS): AWS and Microsoft could be designated with SMS under the Digital Markets, Competition and Consumers Act (DMCCA) 2024. This designation would allow the CMA to impose legally binding requirements to address anti-competitive practices. 
• Potential interventions: Measures could include ensuring fair software licensing, reducing costs for switching or using multiple providers, and encouraging technical standardisation.

What this means for your business
As a business owner, the outcomes of this investigation could help to reduce the costs you pay for cloud services you use, improve the quality and range of cloud services available, and make it easier to change providers when your business needs this.

The CMA will consult on its provisional findings and recommendations, with a final decision expected by the statutory deadline of 4 August 2025.

If you would like to participate in the consultation, or for more details, see the CMA’s cloud services market investigation case page.

See: https://www.gov.uk/government/news/cma-independent-inquiry-group-publishes-provisional-findings-in-cloud-services-market-investigation
 
Is cash still king?
The new economic secretary to the Treasury, Emma Reynolds, has said that there are no plans to regulate businesses, whether big or small, to compel them to accept cash.

Concern has been raised about various shops and service firms not accepting cash and therefore excluding those who rely on cash to pay for things. While some countries appear to be planning to put rules in place that require essential services to accept cash, the UK does not seem as though it will be following suit.

Cards have been used for many years in the UK, with mobile payments by smartphone now becoming increasingly popular. 72% of 16-24 year olds now regularly use mobile payment services. This increase is reflected across all age groups, with 27% of those aged 45-54 now also regularly using this method.

However, cash still remains a popular choice for making payments. Cash was used in a fifth of shop transactions last year. After decades where use of cash has been shrinking, this is the second year in a row where cash use in shops has increased. It seems that many find that using cash helps them to budget better.

Should you accept cash?
The answer to this question really depends on who your customers are. If your customers are largely older or more value conscious, then it seems that these types of customers are more likely to rely on paying with cash. If you don’t accept cash, you may risk losing sales.

On the other hand, if you mainly sell to younger, more digital savvy customers, not accepting cash may have little effect on sales. This may help you save the costs and security issues involved in handling cash.

See:  https://www.bbc.co.uk/news/articles/c20gevkx8gyo
 
Data Protection Day at the ICO: Focus on AI
28 January 2025 was Data Protection Day and the Information Commissioner's Office (ICO) used it to highlight the opportunities and challenges related to AI and data protection.

AI adoption is integral to the government's growth plans, however the ICO are keen to make sure that the opportunities AI brings are taken up in a way that keeps people safe.

The ICO have highlighted some misconceptions about AI, and this contains some good pointers for businesses and organisations considering using AI.

Control over personal data
There is no change to the rights that people have over their personal data. Each person has the right to object to their own personal data being used for AI purposes. The ICO are also stepping in on this issue - as they did recently with LinkedIn and Meta - when they observe incorrect approaches by organisations.

Be transparent
The ICO emphasised that being open and honest with people isn’t optional or an afterthought. Businesses that want to use people’s data to train AI models need to be transparent about what they are doing. The ICO recently consulted on this and found a lack of transparency across the industry, but feel this matter is central to firms building trust in their AI models.

Intention is irrelevant
While an organisation may not mean to process people’s data, intention is irrelevant. It is what happens to the data that matters. This means businesses must be careful about the data they use to train AI models.

AI models have data protection risks
Some have argued that AI models don’t store personal data and so data protection doesn’t apply. However, some AI models can contain the personal data they have been trained on in a form that allows for people to be identified. The ICO have said they are continuing to improve their understanding of this area.

Data protection and AI go hand in hand
Again, some have argued that data protection law should be lighter touch when it comes to developing AI. However, the ICO are clear that businesses must first consider how they will make sure people’s rights and freedoms are protected before using AI in their products and services.

Considering the overall message from the ICO, it seems clear that businesses involved in training AI models or using AI in their products and services need to be careful that they are complying with data protection laws.

See: https://ico.org.uk/about-the-ico/media-centre/news-and-blogs/2025/01/debunking-data-protection-myths-about-ai/
 
Global growth team appointed
As part of the government’s efforts to drive economic growth, the Trade Secretary has appointed a new ‘global growth team’ of UK Trade Envoys with the goal of driving UK exports and investment.

32 MPs have been assigned target markets across the globe and have been tasked with identifying trade and investment opportunities for businesses as well as championing the UK as the place to invest for investors in those markets.

The markets chosen are all considered to have significant potential for growing UK trade.

Jonathan Reynolds, the Business and Trade Secretary, said the new Trade Envoys “will use their experience, expertise and knowledge to unlock new markets around the world for British businesses, drumming up investment into the UK and ultimately driving economic growth.”

See: https://www.gov.uk/government/news/new-global-growth-team-appointed-by-trade-secretary
 
Reforms to pensions proposed in order to drive growth
The Prime Minister and Chancellor met with business leaders last week and unveiled proposals to give occupational defined pension schemes more flexibility.

Restrictions will be lifted on how well-funded, occupational defined benefit pension funds that are performing well will be able to invest their surplus funds. It is hoped that this will pave the way for future growth across the economy.

Currently, around 75% of such pension schemes are in surplus amounting to £160 billion. However, restrictions have meant that businesses have found it difficult to invest these funds, even when both trustees and sponsors want to do so.

The proposals will allow trustees, if they agree, to share a portion of the scheme surplus with a sponsoring employer. The employer can then choose to invest the funds in its core business and/or provide additional benefits to members of the pension scheme.

Jonathan Lipkin, Director of Policy, Strategy & Innovation at the Investment Association said: “With the right guardrails in place, the government’s proposals could help channel more funding into the economy, by enabling schemes to invest more widely and take on greater risk, while allowing for members to receive an uplift to pension benefits.”

See: https://www.gov.uk/government/news/pension-reforms-to-go-further-to-unlock-billions-to-drive-growth-and-boost-working-peoples-pension-pots
 
Deposit return scheme to launch in October 2027
New legislation for England and Northern Ireland has come into force that will allow for a deposit return scheme for drinks containers in England and Northern Ireland. Scotland is also progressing similar regulations.

A deposit return scheme, which more than 50 countries worldwide are now using, gives people a financial incentive for returning empty bottles and cans to a collection point, such as at a supermarket. According to government supplied statistics, the average return rate in Europe is 90% with Germany leading the way at 98%.

The legislation will allow for the appointment of the Deposit Management Organisation, the scheme administrator, in April 2025. The deposit return scheme will then launch in October 2027.

It is estimated that 30 billion single-use drinks containers are bought each year in England, Scotland and Northern Ireland. The deposit return scheme could provide significant help in ensuring more of these materials are recycled rather than being put to waste.

Businesses will no doubt have opportunity to demonstrate their commitment to the environment as these regulations take effect.

See: https://www.gov.uk/government/news/government-to-clean-up-communities-with-deposit-return-scheme-for-plastic-bottles-and-cans

24th January 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

Inflation falls to 2.5%: What this means for your business 
The latest figures reveal that UK inflation fell slightly in December, down to 2.5% from 2.6% in November.

While the drop is marginal, however it has sparked discussion in the press as to whether this easing of inflation might prompt the Bank of England to consider cutting interest rates when it meets next month. However, there is also talk of many businesses raising prices over coming months due to payroll cost increases set for April.

Here, we explore some of the key issues you should be aware of.

Potential interest rate cuts: A relief for borrowers?
The fall in inflation raises hopes that further interest rate cuts may be on the horizon. If you already have a loan or are considering borrowing for expansion, a potential reduction in interest rates could lower financing costs and improve cash flow.

An interest rate cut does not necessarily have to have materialised before lenders reduce their rates. Confidence in the financial markets over future interest rate movements can work in your favour.

However, it’s important to remain cautious - any rate cuts are speculative at this stage and dependent on further economic data. The Bank of England have already demonstrated a cautious approach to reducing rates, and the inflation rate is still above their target of 2%.

You should prepare for multiple scenarios, and it may be an idea to seek advice so that you can best manage your business’ debt strategically.

Upcoming cost pressures in April 
While lower inflation is welcome news, costs will still be rising in 2025. Payroll will particularly be affected. 

The National Living Wage and National Minimum Wage are set to rise in April, which will directly impact payroll costs, particularly if your business is in the hospitality, retail, and care sectors

In addition, as an employer, the increased Employer National Insurance Contributions rate and reduced threshold will add to your overall cost burden and further squeeze your profit margins.

If you are already grappling with thin margins, these increases could put a severe strain on your business. Now is the time to reassess your cost structures, consider your pricing strategy, improve efficiency, and explore ways to remain competitive.

What should business owners be thinking about? 

1. Cash flow management: When costs are changing, understanding your cash flow is critical. Accurate forecasting will help ensure your business can meet its obligations while investing for the future.  
2. Pricing strategy: Raising prices is one way to deal with increased costs. Passing costs on to customers is always a delicate balance, but strategic planning can minimise problems. 
3. Efficiency improvements: Investing in technology or streamlining processes can help offset rising costs. For example, automation tools could reduce administrative expenses and improve productivity. 
4. Workforce planning: You should plan for the financial impact of wage increases by knowing how much extra you are likely to pay. Reviewing your staffing levels may also identify areas where you could save money.

The fall in inflation is a positive development, but businesses cannot afford to become complacent. With wage increases and higher employer contributions on the horizon, planning and preparation are key.

If you need help with financial planning and cash flow forecasting, cost management and efficiency reviews, wage planning or tax and national insurance advice, please get in touch. By working with us, you’ll gain the insights and strategies needed to navigate these changes confidently and position your business for long-term success.

Self Assessment tax return and payment of tax bill due by 31 January 2025
The deadline for filing Self Assessment tax returns and paying tax bills for the 2023/24 tax year is Friday 31 January 2025 at 11:59pm.

HM Revenue and Customs is encouraging taxpayers to get their tax return filed as early as possible so that they can know how much tax they owe and be ready to make the payment by 31 January.

Support is available for taxpayers that are unable to pay in full. However, failing to file and pay tax by the deadline will result in penalties and interest.

If you need any help with filing your Self Assessment tax return, please call us and we will be happy to help!
 
Government pushes AI adoption as part of growth strategy
The government launched an AI opportunities action plan last Monday that aims to ramp up AI adoption across the UK.

The Secretary of State for Science, Innovation and Technology, Peter Kyle, believes that the plan shows how the application of AI can be shaped within a modern social market economy.

The plan details how the government intends to lay the foundations that will further enable AI by:

1. Building sufficient, secure and sustainable AI infrastructure: AI requires a large amount of computational power that comes from large and complex computers in data centres. 
2. Unlocking data assets in the public and private sectors: AI learns from data, so unlocked data sets, including scientific data sets, that contain data that isn’t currently used in training AI models could be important. 
3. Training, attracting and retaining the next generation of AI scientists and founders: To meet anticipated future demand, tens of thousands of additional AI professionals could be needed.

It seems that the plan’s publication has gone down well with business and investors. Within 48 hours of publication, it was reported that more than £14 billion worth of investment into the UK and thousands of jobs had been confirmed.

Does AI have a significant part to play in our future and the growth of the UK economy? Time will tell but there certainly seems to be a will to find out.
To review the plan in full, see: https://www.gov.uk/government/publications/ai-opportunities-action-plan/ai-opportunities-action-plan#lay-the-foundations
 
Import ban on cattle, pigs and sheep from Germany
Following confirmation of a case of Foot and Mouth Disease (FMD) in Germany, a ban has been put on the import of cattle, pigs and sheep from there. It is hoped that this action will help to protect UK farmers and their livelihood.

While FMD poses no risk to human or food safety, it is highly contagious to cattle, sheep, pigs and other cloven-hoofed animals.

An FMD outbreak can be very bad news both for the animals and economically, so livestock keepers are being encouraged to be vigilant to symptoms and rigorous about their biosecurity.

Clinical signs vary depending on the animals involved. Key symptoms for cattle are sores and blisters on the feet, mouth and tongue. They may have fever, lameness or a reluctance to feed. Pigs and sheep may show lameness with potential for blistering. There is further guidance on the signs to look for here.
Since FMD is a legally notifiable disease, it must be reported if found.

See: https://www.gov.uk/government/news/government-introduces-import-ban-of-cattle-pigs-and-sheep-from-germany-to-protect-farmers-after-foot-and-mouth-case
 
Renters’ Rights Bill continues to progress
The Renters’ Rights Bill returned to Parliament for debate last week and included some new changes.

Cap on advance rent payments
A new rule is proposed that will cap advance rent payments at one month’s rent. Currently, there is no limit on the upfront rent a landlord can ask for. This is being used to exploit potential tenants in some places and particularly disadvantages renters on lower incomes.
Landlords will still be able to take a security deposit of up to 5 or 6 weeks rent alongside a one month’s rent in advance.

Safeguards for bereavement
Another proposed change will mean that bereaved guarantors will no longer be forced to pay rent for the rest of the tenancy where a loved one has died. This will make it easier to end a tenancy agreement in unforeseen and tragic circumstances.

Reducing early commitments
Currently students can feel pressured to sign a lease many months in advance. Therefore, it is being proposed that students cannot be locked into an agreement more than six months in advance of moving in.

Further changes proposed include closing potential loopholes in rent repayment order and using fees paid by landlords to directly fund the creation and work of a private rented sector Ombudsman.

See: https://www.gov.uk/government/news/new-law-to-protect-renters-one-step-closer-to-becoming-a-reality
 
CMA launches first investigation under new powers
The new digital markets competition regime came into force on 1 January 2025 and the Competition and Markets Authority (CMA) has now launched its first investigation on Google under its new powers.

Under the new digital markets competition regime, the CMA can designate certain businesses as having strategic market status (SMS) in relation to a particular digital activity. The designation means the CMA can then impose conduct requirements or propose pro-competition interventions that benefit UK consumers and businesses.

The designation can only take place after an investigation, and the CMA has announced that its first SMS designation investigation will be to assess Google’s position in search and search advertising services.

According to statistics provided by the CMA, Google accounts for more than 90% of all general search queries in the UK, and more than 200,000 UK advertisers use Google’s search advertising.

Search is a key digital service, with many businesses reliant on being found by potential customers in internet searches. The CMA estimates that effective competition in this area could reduce the costs of search advertising.

The investigation will involve assessing how competition is currently working and whether Google is using its position to prevent others being able to innovate. It will also look at whether Google is using its market position to self-preference its own services, as well as whether there is any potentially exploitative conduct in its use of consumer data and use of publisher content.

Once the investigation is completed, which must be within 9 months, the CMA will announce its findings and any potential conduct requirements.
See: https://www.gov.uk/cma-cases/sms-investigation-into-googles-general-search-and-search-advertising-services
 
Government funding for AI Projects to boost small business productivity
The UK Government has announced a £7 million funding initiative aimed at helping small businesses enhance their productivity and efficiency through artificial intelligence (AI).

This funding, distributed across 120 projects, is part of the Innovate UK BridgeAI programme under the UK Research and Innovation (UKRI) Technology Missions Fund. The initiative seeks to harness AI technology to address real-world challenges and support economic growth in sectors such as agriculture, transport, construction, and more.

Key highlights from the announcement
AI projects across various sectors are being backed. These include:

• Agriculture: AI models that may help farmers optimise yields, such as increasing dairy production from cows or protecting strawberry crops. 
• Roads: How an AI tool could predict potholes before they form, reducing road repair costs and preventing vehicle damage. 
• Bakery: How AI could be used to predict sales and forecast how much of each product needs to be made each day to cut food waste and protect profit margins. 
• Building maintenance: Trialling an AI model that can anticipate mould growth in properties, so they can be handled to avoid health and safety concerns.

The funding builds on the government’s recently published AI Opportunities Action Plan, which outlines a roadmap for widespread AI adoption across the economy.

Considerations for small businesses
While the funding and expertise offered by initiatives like BridgeAI are substantial, as these various applications come to market, small businesses will need to consider the costs of integrating AI into their operations.

These may include purchasing hardware, training staff, and ensuring that your data infrastructure is robust enough to support AI technologies. As with any new technology it will be important to analyse the cost-benefits.

While AI is clearly seen as a major player in future economic growth, businesses will need to navigate issues related to data security, ethical use, and transparency. Ensuring compliance with regulations and building customer trust will be essential, particularly for those who handle sensitive customer or operational data.

Conclusion
The UK Government’s AI funding initiative represents a significant opportunity for small businesses to adopt cutting-edge technologies and enhance their competitiveness. While there is potential for improved efficiency, cost savings, and growth, businesses will still need to carefully assess the costs of implementation and address ethical considerations.

See: https://www.gov.uk/government/news/government-puts-ai-to-work-for-bakers-road-workers-and-more
 
Showcasing export excellence: Enter the Made in the UK, Sold to the World Awards 
Small businesses across the UK are invited to enter the Department for Business and Trade’s (DBT) Made in the UK, Sold to the World Awards, which celebrate exceptional achievements in international trade.

The awards are open for entries until 9 March and provide a platform for SMEs to showcase their success in exporting British goods and services across the globe. 

Why enter the awards? 
In short, winning or being highly commended in one of the award categories can offer opportunities to expand your business’ reach and elevate your brand.

Previous winners Intralink, who won in the Consultancy & Professional Services category, say they achieved a 10% revenue increase and expanded into Finland, Norway, China, and South Korea. Simventure, who won in the Education & EdTech category, experienced 30% year-on-year growth and entered markets in the Middle East. 

What’s new for 2025?
This year’s awards feature two new categories: Digital & Technology and Export Services. Other categories include:

• Advanced Manufacturing & Construction 
• Agriculture, Food & Drink 
• Consultancy & Professional Services 
• Creative Industries 
• Education & EdTech 
• Financial Services & FinTech 
• Healthcare 
• Infrastructure and Engineering 
• Low Carbon Energy 
• Retail and Consumer Goods

Entries close on March 9^th and information on how to enter can be found here.

Could exporting matter to your business?
Whether you currently export or not, exporting offers growth potential that domestic markets alone cannot match. 

If you are looking for expert guidance on exporting and navigating international markets, get in touch with us. Our team is here to help you achieve your global ambitions.

See: https://www.gov.uk/government/news/uk-smes-called-to-apply-for-major-government-export-awards

17th January 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

Navigating pricing strategies amid rising wage costs: Insights from Next
Tax measures taking effect in April mean that businesses are facing rising wage costs in 2025. As a result, many businesses are looking at whether price increases could help them manage the financial impact without losing customers.

High Street retailer Next recently announced a price increase of 1% on some clothing items to help offset an anticipated £73 million rise in staff wages and taxes. Their strategy and decisions provide some useful lessons.

Why wages costs will increase
Wages are increasing due to changes announced in the 2024 Autumn Budget, that start in April 2025, including:

• An increase in employers’ National Insurance contributions from 13.8% to 15%.
• A rise in the National Living Wage from £11.44 to £12.21 per hour.

Next’s 1% price increase, despite being below the rate of inflation, reflects a broader trend among businesses. The British Chambers of Commerce business group recently said that over half of companies plan to raise prices in the coming months to cope with higher costs.

A pricing strategy based on a shift in behaviour
For businesses like Next, keeping the price increase modest allows them to avoid alienating their price-sensitive customers. Their decision to target specific product lines – rather than implementing a blanket rise – may help to retain customer loyalty while addressing the immediate financial strain.

Next acknowledged that the price increase is “unwelcome”, however they feel their analysis supports their strategy. They have observed a trend in shoppers choosing mid to higher priced items instead of buying cheaper items. They are not necessarily spending more overall but are buying fewer, slightly more expensive items. This is a trend Next expects to continue in the short term.

This shift in behaviour has influenced Next’s decision on pricing strategy. By targeting price increases on product lines where customers may be less sensitive to paying more, they can maintain value for their customers while managing their margins.

Lessons for businesses
Next’s approach offers valuable lessons for businesses developing pricing strategies in response to rising wage costs.

1. Incremental adjustments: Small, targeted price increases can help mitigate your cost pressures without overwhelming customers.
   
2. Focus on value perception: Shopper trends suggest that emphasising mid-to-higher priced items could help maintain your profitability. 
3. Monitor your customer’s behaviour: Next have undertaken a strategy based on what they’ve observed in their customer’s behaviour. Likewise, if you can understand any shifts in the spending patterns of your customers, this may help you to see where price increases are less likely to alienate them.

There is no doubt that rising wages costs will present challenges to businesses over the coming months. However, if Next have got their sums right, they are expecting to be able to increase their profits by 3.6%. This demonstrates that a carefully planned pricing strategy may also help you to adapt to the rising costs while maintaining competitiveness in these challenging times.

If you need help with an analysis of how changing your pricing strategy could help your business, why not give us a call? We would be happy to help you!
See: https://www.bbc.co.uk/news/articles/cgkxlnlne0po
 
Tax return filing deadline looms
With the 31 January Self-Assessment tax return filing deadline fast approaching, HM Revenue and Customs issued a press release last week noting that 5.4 million taxpayers are yet to complete their return.

Apparently more than 24,800 people filed their return on New Year’s Day, while a further 38,000 had filed theirs on 31 December. 310 filed their returns between 11pm and midnight.

Missing the 31 January deadline can lead to an initial late filing penalty of £100.

If you need help with your tax return or are not sure whether you need to complete one, please give us a call and we will be happy to help you.

See: https://www.gov.uk/government/news/54-million-yet-to-file-their-tax-return
 
New digital markets competition regime now in force
Last week, the Competition and Markets Authority (CMA) set out its initial plans for the new digital markets competition regime. The regime is designed to support the UK’s tech sector and has its legal footing in the Digital Markets, Competition and Consumers Act. The Act received royal assent in May 2024 but came into force on 1 January 2025.

The regime is intended to prevent very large, generally global, tech firms using unfair advantages to shut out smaller businesses. Following an investigation, which can take up to a maximum 9 months, the CMA has the power to designate a business as having “Strategic Market Status” (SMS) in relation to a particular digital activity.

Once a business has been designated in this way, the CMA can impose certain conduct requirements on the business, or it can introduce pro-competition interventions for the benefit of UK consumers and businesses.

The CMA have said that they expect to launch investigations in relation to 2 areas of digital activity in January. The next investigation into a third area is likely to begin towards the end of June.

It has not yet been revealed which areas of digital activity are going to be investigated. The CMA have said more detailed announcements on this will be released later in January.

As it launches its investigations, the CMA also plan to provide more detail on how a particular designation is likely to help affected businesses and consumers.
It’s early days for seeing what practical benefits the regime will bring, however it could provide UK tech businesses with opportunities to innovate and grow in a fairer business environment.

To review the CMA’s guide on how the UK’s digital markets competition regime works, see: https://www.gov.uk/guidance/how-the-uks-digital-markets-competition-regime-works
 
Balancing AI's promise and pitfalls
Artificial intelligence (AI) continues to bring benefits across many industries, including healthcare diagnostics and consumer technology. However, as its applications expand, so do concerns about its accuracy and potential for misuse. Two recent examples—the use of AI in detecting ovarian cancer and its controversial implementation in summarising news—illustrate both the transformative potential and the risks of AI.

AI in early cancer detection 
Ovarian cancer is notoriously difficult to detect in its early stages. Early intervention is critical for improving survival rates. However, current methods rarely identify the disease before it spreads. 

A breakthrough by Dr Daniel Heller and his team at Memorial Sloan Kettering Cancer Center offers hope. They have developed an AI-powered blood test that uses nanotube technology—tiny tubes of carbon that react to molecules in the blood. These nanotubes emit fluorescent light based on what binds to them, creating a molecular "fingerprint." 

The challenge lies in interpreting this data. While the molecular patterns are too subtle for humans to discern, machine-learning algorithms excel at recognizing such complexities. By training AI systems with blood samples from patients with and without ovarian cancer, the team can identify the disease far earlier than conventional methods. 

This innovation could revolutionise diagnostics, not just for ovarian cancer but for other diseases, including infections like pneumonia. However, as with any AI system, its effectiveness depends on the quality of the data and algorithms used, which brings us to a story that highlights the risks involved with AI. 

The risks of misapplied AI 
Apple’s AI-driven news summarising feature on its latest iPhones has drawn criticism for generating inaccurate headlines. This feature is designed to help reduce the number of notifications smartphone users receive, however the BBC said that “these AI summarisations by Apple do not reflect – and in some cases completely contradict – the original BBC content.” 

The BBC, as well as the journalism body Reporters Without Borders, have called for Apple to withdraw the feature, citing the dangers of misinformation.

Apple has now announced that a software update in the coming weeks will make it clearer that the summary has been AI-generated, but critics argue this is insufficient. They argue that the responsibility to verify accuracy will remain with users, which complicates their being able to get accurate information and lessens trust in the news.

Lessons for businesses 
These two contrasting examples of AI in use offer some valuable lessons to businesses that are looking to integrate AI.

Firstly, ensuring accuracy is paramount. This is especially clear in a high stake healthcare application where a false positive or negative in diagnostics can have life-altering consequences. However, in any application the use of AI needs to be subject to robust testing and validation checks.

There is a need to communicate clearly about your use of AI as miscommunication about AI’s role and limitations can damage trust. Apple’s failure to initially acknowledge the AI-generated nature of its summaries contributed to public confusion and backlash. 

AI systems have the potential to disseminate false information. Therefore, they need to be designed with safeguards and checks to prevent this from happening.

Balancing promise with caution 
AI has the potential to bring many benefits, however, as the above two examples illustrate, this technology is not without risks.

In the rush to innovate, the lesson is clear. AI is best approached with caution, ensuring its use is rigorously tested and clearly communicated so you can fully harness its benefits without any downsides.

See: https://www.bbc.co.uk/news/articles/cq8v1ww51vno; https://www.bbc.co.uk/news/articles/cge93de21n0o
 
New Steel Council launched to rebuild the UK’s steel industry
Business Secretary Jonathan Reynolds co-chaired the first meeting of a new Steel Council last week. The Steel Council’s purpose is to help secure the long-term future of steelmaking in the UK.

The new Council will feature regular meetings with trade union leaders, industry experts, devolved government representatives, trade associations and steel sector leaders such as CEOs from Tata Steel and British Steel.

The government plans to launch their Steel Strategy in the Spring and the Council will help with this both before the launch and afterwards.
Gareth Stace, Director-General of UK Steel said: “This [steel] strategy is a once-in-a-generation opportunity to foster a competitive business environment that encourages long-term investment and ensures steelmaking remains at the heart of the UK economy.”

See: https://www.gov.uk/government/news/government-sets-out-plan-to-secure-the-long-term-future-of-steelmaking-and-safeguard-steel-communities
 
Two business rates agents suspended by VOA
The Valuation Office Agency (VOA) have announced the suspension of two business rates agents. These are Rateable Value Experts and Re-Rates UK. The VOA have not specified the exact reasons for the suspension and have simply said that they are investigating a potentially serious breach of their agent standards.

While the suspension is in force, the VOA won’t work with or accept any information from the two agents. This is likely to cause difficulties for any customers that they are representing, and so the VOA have written to customers that are affected.

As part of the announcement, the VOA have reminded businesses of the need to be cautious of agents who:

• try to pressure you to make a decision or sign a contract.
• say they are acting on behalf of the VOA or forward emails to you that they claim are from the VOA.
• demand large sums of money up front.
• make claims about ‘unclaimed credits’ or similar.

It is worth noting that there is no need to use an agent to handle your business rates related matters. The VOA provides a free online service where you can challenge your rateable value for yourself.

The VOA also provides a checklist of agents that you can use to select an agent. They point out that using this is safer than allowing an agent to select you.
See: https://www.gov.uk/government/news/temporary-suspension-of-business-rates-agents
 
Government announces £289 million investment to deliver faster broadband to remote areas
The UK government has announced contracts worth over £289 million to provide gigabit-capable broadband to 131,000 homes and businesses in some of the country’s most remote locations. The initiative is part of the government’s Project Gigabit program, which aims to modernise broadband infrastructure across the country.

The contracts will focus on regions such as the Dee Valley, Isle of Anglesey, and Shropshire Hills, as well as parts of North and Southwest Wales, Herefordshire, Devon, Somerset, Essex, North East England, and Worcestershire.

Project Gigabit: An overview
Project Gigabit seeks to bring high-speed internet to hard-to-reach areas, where commercial providers have traditionally found it challenging to operate.
As of now, over 85% of the UK can access gigabit-capable connections, and more than 1 million premises in rural and remote areas already have access to upgrades. The ultimate goal is full gigabit coverage across the UK by 2030.

Benefits for rural areas
There are many advantages to faster broadband, including improved access to remote healthcare services, online education, and remote working opportunities. High-speed connections can also benefit businesses by enhancing their ability to operate and serve customers online.

Openreach CEO Clive Selley noted that the expansion of full-fibre broadband could boost UK productivity by £73 billion and bring significant social benefits.

See: https://www.gov.uk/government/news/hundreds-of-thousands-of-brits-in-rural-villages-and-towns-to-benefit-from-uk-government-broadband-boost
 
HSE turns 50
The Health and Safety Executive (HSE) is celebrating its 50th anniversary this month. The HSE was created by the Health and Safety at Work etc Act 1974 and officially launched on 1 January 1975.

In 1974, 651 employees were killed at work. HSE’s statistics for 2023/24 show 138 employees were killed at work and indicates the work that has been done to reduce workplace death and injury in England, Scotland and Wales over the last 50 years.

Marking the occasion, Sarah Albon, chief executive of HSE, said: “Over the past half century, the Health and Safety Executive has led the way in establishing Great Britain as a safe place to work. As we look ahead to the next 50 years, we recognise there is still much for HSE to take on.”

See:  https://press.hse.gov.uk/2025/01/01/hse-story-50/

10th January 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

Get Britain Working White Paper
Reforms to employment support announced
The government has unveiled some significant reforms to employment support, underpinned by a £240 million investment. The measures aim to address deep-rooted issues of unemployment, economic inactivity, and barriers to work, as detailed in the recently published Get Britain Working White Paper. 

Figures quoted in the government’s announcement made for sobering reading. 1.5 million are unemployed, 9 million are economically inactive, and a record 2.8 million are out of work due to long-term illness. Young people, in particular, are disproportionately affected, with one in eight not in education, employment, or training.

The UK is apparently the only major economy that has seen its employment rate fall over the last five years. The government has attributed the reason for the decline to an increase in long-term ill health, as well as an employment support system that is outdated.

Therefore, the White Paper is highlighting the need for a fundamentally different approach to employment, health, and skills support to revitalise Britain’s workforce.

What are the key reforms being proposed? 

1. Revamping jobcentres: These will be transformed into a new “national jobs and careers service”. This overhaul will focus on developing people’s skills and careers rather than simply monitoring benefits. 
2. Tackling economic inactivity from ill health: Health-related issues will be addressed through employing extra NHS staff in 20 areas that have high inactivity so as to cut waiting list times. Mental health support will also be expanded. 
3. A new “Youth Guarantee”: Every 18-to-21-year-old will have access to an apprenticeship, quality training and education opportunities. The current Apprenticeship Levy will be replaced by a more flexible Growth and Skills Levy. Eight youth “trailblazer” areas are to be set up, including in Liverpool, Tees Valley and the East Midlands to help young people in those areas find education, training or work. 
4. Supporting people with disabilities and health conditions: An independent review will be launched into the role of UK employers in promoting health and inclusive workplaces. It will look at what more can be done to enable employers to increase the recruitment and retention of disabled people and those with a health condition. It will also explore early intervention for sickness absence and what may help increase returns to work. 
5. Empowering local communities: Local leaders, including mayors and councils, in areas of England that are not getting a trailblazer will receive up to £15 million to develop their own plans. 

How will the reforms affect you?
Based on the changes being proposed, we may begin to see new measures introduced into employer’s obligations towards long-term sickness.

Over the longer term, if these initiatives result in more younger people receiving more training, then this may increase the number of skilled people available for hire.
This could alleviate the difficulty some businesses are finding in locating suitably qualified staff.

To review the White Paper, see here.
 
Be wary of Self Assessment scams
Scam attempts on the increase
HM Revenue and Customs (HMRC) have issued a reminder to be careful about scam attempts that target people filing Self Assessment tax returns. In the last year, nearly 150,000 scam attempts were referred to HMRC, a 16.7% increase on last year. With the 31 January 2025 filing deadline approaching, fraudsters are likely to step up their activities.

HMRC reports that around half of all scam reports in the last year were fake tax rebate claims. Fraudsters are usually aiming to get hold of personal information and banking details.

If you receive an email, text or phone call from someone claiming to be from HMRC that asks you for personal information or offers you a tax rebate, there is a useful checklist here that can help you identify a scam.

It is helpful to know that HMRC will never leave voicemails threatening legal action or arrest. Neither will they ask for personal or financial information over text message.

HMRC also will not contact you by email, text, or phone to announce a refund or ask you to request one.

If you have been contacted by someone claiming to be from HMRC and feel unsure whether it is a scam, or you would like to check whether you are due a tax refund, call us at any time and we would be happy to help you.
 
New Fair Payments Code launched
Will it help you get paid quicker?
The government’s promised new Fair Payments Code was launched last month to try and tackle late payment problems that can be particularly harmful to small businesses.

How will the Fair Payment Code help?
The code introduces a gold, silver, and bronze system that smaller firms can use to identify business partners who have made themselves accountable to pay fairly and within certain time limits.

The three award tiers have the following requirements:

• Gold award: for businesses paying at least 95% of all invoices within 30 days. 
• Silver award: for businesses paying at least 95% of all invoices within 60 days, including at least 95% of invoices to small businesses within 30 days. 
• Bronze award: for businesses paying at least 95% of invoices within 60 days.

Businesses that are granted an award also agree to abide by the principles in the Code of being “Clear, Fair and Collaborative” with their suppliers.

The awards, once granted, last for two years and then must be reapplied for at the conclusion of that time. There will be a “robust” complaint system so that businesses who don’t meet the requirements of their award or otherwise comply with the principles in the Code can be reported.

Dealing with late payments can be a challenge to deal with. While the new Fair Payments Code may help, there are a variety of methods you can use to help reduce the effect of late payments. If you need practical help in how to improve how quickly your business is paid, please get in touch and we would be happy to help you.
 
Coffee bean prices at record high
Will our morning caffeine fix cost more?
Those of us that rely on a coffee-fix to get the day started may see this get more expensive. Coffee prices on international commodity markets soared to their highest level on record in December.

The price for Arabica beans, the most used beans in global production, increased to $3.44 a pound, increasing by more than 80% this year. Robusta beans similarly reached a fresh high in September.

Coffee traders are expecting crops to shrink due to bad weather in Brazil and Vietnam, two of the world’s largest producers. Brazil experienced its worst drought in 70 years during August and September and this was followed by heavy rains in October. Vietnam, where Robusta beans are grown, has also experienced drought and heavy rainfall during 2025.

Meanwhile, the popularity of coffee continues to grow. For example, in China, which is not traditionally a coffee drinking nation, coffee consumption has doubled in the last decade.

In recent years, major coffee roasters have been absorbing price increases to keep customers happy and maintain their market share, however some experts believe this could soon change and consumers will see price increases as a result.
 
New reporting requirements for online platforms
HMRC confirm there is no change to tax rules
New changes come into effect from January 2025 where online platforms, such as eBay and Airbnb, will start sharing some user sales and personal data with HM Revenue and Customs (HMRC).

Although these reporting requirements have caused concern, HMRC have confirmed that there are no changes to the tax rules for someone selling unwanted possessions online.

Angie MacDonald, who is HMRC’s Second Permanent Secretary and Deputy Chief Executive Officer, said: “We cannot be clearer – if you are not trading and just occasionally sell unwanted items online – there is no tax due.”

HMRC have advised that anyone who sold at least 30 items or earned roughly £1,700, or provided a paid-for service, on a website or app in 2024 will be contacted by the digital platform they used in January to say their sales data and some personal information will be sent to HMRC due to new legal obligations.

This does not mean that an individual automatically needs to complete a tax return. However, if the following applies then you would likely need to register for Self Assessment (if you are not already registered) and pay tax.

• Buying goods for resale or making goods with the intention of selling them at a profit. 
• Offering a service through a digital platform – such as delivery driving or letting out a holiday home. 
• And you generate a total income before deducting expenses of more than £1,000.

If you are concerned about whether you are likely to need to register for self assessment or pay tax, give us a call and we will be happy to help you.
 
Scottish Budget announcement
Highlights for businesses from the Budget
The Cabinet Secretary for Finance & Local Government, Shona Robinson delivered the 2024/25 Scottish Budget on 4 December.

This Budget was centred on the following priorities to:

• eradicate child poverty;
• grow the economy;
• tackle the climate emergency; and
• ensure high quality and sustainable public services.

The following measures will be of particular interest to Scotland’s business community:

• Scottish rates of income tax will not be increased and no new bands will be introduced for the remainder of this parliament. From April 2025, the Basic and Intermediate rate thresholds will increase by 3.5%. The Higher, Advanced and Top rate thresholds will be frozen at their current levels. 
• Business Rates: The Basic Property Rate will be frozen at 49.8p and a 40% relief will be introduced for hospitality premises liable for the Basic Property Rate, capped at £110,000 per business. 
• Rates and bands of residential and non-residential Land & Buildings Transaction Tax (LBTT) will remain at their current levels, although the Additional Dwelling Supplement (ADS) increases from 6% to 8% from 5 December 2024. The increase will not apply to transactions for which legal missives have been signed on or before 4 December. 
• Landfill Tax rates will increase from 1 April 2025, in line with those for the rest of the UK.

To review the Scottish Budget in full, see here.

If you would like any help in understanding how the Scottish Budget will affect your business or personal situation, please give us a call at any time and we will be pleased to help you!
 
Welsh Budget announcement
Highlights for businesses from the Budget
The Welsh budget was announced on 10 December. The key decisions for Welsh businesses and individuals were as follows:

Welsh Rates of Income Tax
The Welsh rates of income tax for 2025/26 will remain at 10p for the three income tax rates (Basic, higher and additional). This means that Welsh taxpayers will pay the same income tax as those in England and Northern Ireland.

Land transaction tax
In disappointing news for purchasers, the higher residential rates of Land Transaction Tax (LTT) are being increased by one percentage point across all bands. This change was made almost immediately, coming into force on 11 December.

Purchasers who have already exchanged contracts prior to this date will pay the former rates provided they comply with transitional rules.

The result of this change is that the higher residential rates of LTT are now five percentage points above the main residential rates.

The current starting threshold for the main residential rates of LTT remains at £225,000. The government estimates that around 60% of residential transactions are below the threshold for paying LTT.

The Budget also includes the intention to limit multiple dwellings relief (MDR) available on purchasing two or more dwellings in Wales. The changes will mean that taxpayers subject to the subsidiary dwelling exemption (SDE) will pay the main residential rates on the total consideration, without the benefit of MDR. It appears that this will not be the only change to MDR, as the relief will be further considered over the next year.

It was also announced that the new LTT special tax sites relief that currently applies to the Celtic Freeport will also be extended to the Ynys Môn Freeport. Senedd approval will be sought on these in January so that the relief is in place when the UK government’s designation regulations come into force.

Landfill Disposals Tax
The standard rate of Landfill Disposals Tax (LDT) will be increased to £126.15 per tonne from 1 April 2025. This matches the increase made to the UK government’s equivalent Landfill Tax.

The lower rate of LDT will be increased to £6.30 per tonne. This means that the lower rate will be 5% of the standard rate, just under double the existing rate.

The new approach to lower rate setting, as well as the substantial increase for next year, is designed to increase the incentive to reduce landfill waste disposals. The intention is to raise the rate further if the volumes of lower-rated waste disposals by way of landfill do not reduce in line with Welsh government objectives. The goal is to become a zero-waste nation by 2050.

The unauthorised rate remains at 150% of the standard rate, and so increases to £189.25 per tonne.

If you would like any help in understanding how the Welsh Budget will affect your business or personal situation, please give us a call at any time and we will be pleased to help you!

3rd January 2025 – Hillmans Weekly Update

Happy New Year, and 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

A fresh start: Reviewing your business goals for the New Year
The start of January marks a time of new beginnings, and for business owners, it’s the perfect opportunity to pause, reflect, and plan ahead. After the whirlwind of the festive season, January offers a quieter moment to consider where your business is headed, how it’s performing, and whether you’re still on track to meet your goals.

Why review your goals now?
Setting goals is one thing – keeping track of them is another. Running a business is often about managing the immediate – urgent emails, pressing deadlines, and day-to-day challenges. Without a clear plan, though, it can be easy to drift away from your bigger goals. This is why it’s so important to intentionally carve out time at the start of the year.

Why not ask yourself:

• Are you meeting your financial targets?
• Have your priorities changed since you first set your goals?
• Are there new opportunities or challenges you need to plan for?

This kind of review isn’t about dwelling on what’s gone wrong; it’s about making sure you’re steering your business in the direction you want to go.

For instance, it can help you clarify what you want to achieve this year. Is it more growth, more stability, or more innovation? It can also help you focus on the areas that truly drive results as well as allow you to prepare for potential problems and have strategies ready to address them.

A word on the role of a budget
Finances often need to be aligned to help you reach your goals. A budget can be an invaluable tool in helping with that.

Even if you’ve never drawn one up before, it’s not as daunting as it might sound. There’s no need to make it complicated. A simple budget can help you understand where your money is going, plan for upcoming expenses, and avoid surprises. Start by reviewing last year’s financial performance and based on that set some realistic income and expenditure targets for the months ahead.

Steps to get started
Here’s how to make the most of this reflective period.

1. Review your goals: What were your key objectives last year? Did you meet them? If not, why? Use these insights to refine your goals for the coming year.
2. Set SMART objectives: Make sure your goals are Specific, Measurable, Achievable, Relevant, and Time-bound. For instance, instead of “I want to grow my business,” aim for something like “Increase revenue by 15% by the end of September.” 
3. Plan for action: Break down your goals into actionable steps. What resources do you need? Who will be responsible? Setting milestones along the way can help you track progress. 
4. Monitor and adapt: Remember, a plan is only as good as its execution. Regularly review your progress and be willing to adapt it as new challenges and opportunities present themselves.

A resolution worth keeping
January is more than just a fresh start; it’s a chance to be intentional about where your business is headed. Taking the time out for a review of your goals will help to make sure that your efforts are aligned with your ambitions.

Make this the year you take control of your business’s future. With clear goals, a solif plan, and the discipline to follow through, 2025 could be your best year yet.
 
Christmas tax filing: Getting ahead of the deadline 
HM Revenue and Customs (HMRC) have revealed that 4,409 people chose Christmas Day to file their tax returns, ensuring their 2023-2024 tax affairs were in order well before the 31 January deadline. 

In total, 40,072 taxpayers submitted their returns over the Christmas break, proving that even amidst the festive cheer, there’s always time for a little financial housekeeping. 

Festive filing highlights 
The holiday filing statistics offer a glimpse into the habits of those who opted to tackle their tax obligations during the break: 

• Christmas Eve: This was the busiest day, with 23,731 returns filed, as some chose to avoid the chaos of last-minute shopping. The most popular filing hour was 11:00 to 11:59, when 3,458 taxpayers submitted their returns. 
• Christmas Day: 368 people filed their returns during the most popular hour of 15:00 to 15:59.  
• Boxing Day: 11,932 customers prioritised tax returns over leftover turkey sandwiches, with the busiest hour being 16:00 to 16:59, when 1,108 submissions were made. 

Why file early? 
Filing early can bring peace of mind knowing that the job is done for another year. However, it can also allow more time for planning how to pay any tax that will be due on January 31^st.

If you could do with help filing your tax return or are not sure whether you need to fill one in, give us a call at anytime and we would be happy to help you!

See: https://www.gov.uk/government/news/its-a-self-assessment-wrap-for-40000-festive-filers
 
Greener flights in 2025
Flights leaving the UK will now be greener due to the Sustainable Aviation Fuel (SAF) Mandate coming into force on January 1^st.

For all jet fuel used in flights taking off from the UK in 2025, 2% must be SAF. This percentage will increase by 2 percentage points each year so that it is 10% by 2030 and then 22% by 2040.

SAF is fuel that is sourced sustainably and includes household waste and used cooking oil. According to government provided statistics, fuel sourced from such materials produces an average of 70% less carbon emissions than traditional fossil-based aviation fuel.
Mike Kane, Minister for Aviation, said: “From this moment on, aviation will be a greener, more sustainable form of travel and today marks a significant milestone for the UK SAF industry.”

To read more about the Mandate, see: https://www.gov.uk/government/collections/sustainable-aviation-fuel-saf-mandate
 
New year resolution: A fitter workforce?
The benefits of exercise on our physical and mental health are well known. The healthier and fitter we are the better we work on our business. A healthier, fitter workforce are also much more likely to be productive and happier. Yet, many of us struggle to find the time or energy to do enough exercise.

The Department of Health and Social Care and the NHS revealed that 8.7 million NHS Couch to 5K runs were completed in 2024, with a total of 790,000 people downloading the NHS fitness app.

The app is designed to help beginners gradually build up to running 5 kilometres. Andrew Gwynne, Public Health Minister, said: “The NHS Couch to 5k app is a great way to get fitter and build sustainable running habits.”

Regular running is a proven way to reduce the risk of long-term illnesses, such as heart disease, type 2 diabetes and stroke. It also helps in maintaining a healthier weight and improving your mood.

Users of the app get a guided commentary from a celebrity coach that they can choose and can track their progress by doing 3 runs a week. Users also receive celebration videos and progress summaries as they complete each running challenge. There is also guidance and support for those who have setbacks.

The app also now features ‘graduation’ content to help motivate people to make running a habit.

Of course, running is not the only form of exercise. Some may prefer cycling, swimming, walking, going to the gym, swimming, or playing sports.

However, regardless of the type of exercise, being able to exercise with someone else or making a commitment to someone else provides extra motivation to persist with an exercise habit. The workplace can be a good source of ‘buddies’ to give that motivation.

In view of the benefits available, could promoting the NHS Couch to 5K app or an exercise club not only help improve your and your staff’s health and well being but also benefit your business?

See: https://www.gov.uk/government/news/record-numbers-complete-nhs-couch-to-5k-app
 
ICO highlights data privacy to new startups
January can often be the time of year when entrepreneurs start to make plans for a new business. The Information Commissioner’s Office (ICO) has published some guidance to help entrepreneurs think about data protection when setting up their business, so they get it right from the start.

The ICO has an e-learning site that provides videos and advice for small organisations. This can be found here and is well worth a look.

The ICO also provides a couple of helpful online tools that can take a lot of the guesswork out of what you need to do.

Privacy notice
The ICO highlights that every organisation that holds people’s information needs to explain why it holds it and what it does with it. This is usually provided through a privacy notice, which can be placed on the business’ website or included in other communications.

Helpfully, the ICO have a privacy notice generator that can help you create bespoke privacy notices for your organisation. It takes 10 to 15 minutes and can help you create privacy notices for your customer and supplier information and for your staff/volunteers.

Direct marketing advice generator
If you advertise or communicate marketing messages to particular people or organisations, you are involved in direct marketing. If so, you will need to comply with the Privacy and Electronic Communication Regulations (PECR) and the UK GDPR.

The ICO’s direct marketing advice generator can provide you with reliable compliance advice that is tailored to your direct marketing activities. This makes it easier to know what you need to do to stay compliant with the law and stick to contacting people who are happy to hear from you.

The idea of tackling data protection can seem overwhelming when starting a new business. However, these new tools can be very helpful in reducing this stress.

See: https://ico.org.uk/about-the-ico/media-centre/news-and-blogs/2025/01/new-year-new-start-ups-get-data-privacy-right-from-the-start/
 
The importance of right to work checks continues to be emphasised
Recent immigration enforcement activity has highlighted the need for employers to ensure their workers have the right to work in the UK. With thousands of enforcement visits, arrests, and hefty fines being issued, businesses that neglect their responsibilities risk serious consequences.

Crackdown on illegal working
Immigration Enforcement teams have been targeting sectors prone to illegal employments, such as car washes, nail bars, supermarkets, and constructions sites.

Between July and November last year, enforcement teams conducted thousands of visits across the UK. These led to 770 arrests in London alone, with nearly 1,000 premises inspected.

Employers found guilty of hiring workers without the right to work face fines of up to £60,000 per worker, along with reputational damage and potential criminal charges.

How to stay compliant
Employers are required to carry out right to work checks before employing someone.

You need to:

• Request sight of original documents: Review the worker’s passport, visa, or other approved documents that prove their right to work in the UK. 
• Verify authenticity: Confirm that the documents are genuine, belong to the individual, and haven’t expired. 
• Keep records: Retain copies of the documents, including the date you verified them, for at least two years after employment ends. 
• Use the Home Office’s online service: The Home Office offers an online right to work checking service for non-UK nationals. This can provide you with confirmation of a worker’s status.

For further guidance on conducting right to work checks, see: https://www.gov.uk/government/publications/right-to-work-checks-employers-guide/employers-guide-to-right-to-work-checks-23-september-2024-accessible-version
 
Additional financial support for Bradford’s cultural year
The government has announced that it will provide an additional £5 million of support to Bradford, which is the 2025 UK City of Culture.

The funds, which bring total support provided to £15 million, will be used to help in delivering a programme of events and support a legacy of cultural regeneration. It is expected that 6,500 jobs will be created in the area as a result of Bradford being UK City of Culture.

Around 1,000 events are being organised for 2025. These are expected to attract an additional 3.3 million visitors to the area, and it is anticipated that this will bring around £140 million into the local economy as a result.

It is also hoped that the increased exposure will bring about additional growth for the Bradford area.

To see more information about the programme, see: https://bradford2025.co.uk/