17th 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

Disincorporation: Does it Make Sense for You?
At one time, incorporating a business once profits reached a modest level was almost the default advice. Today, the conversation is more nuanced, and some existing company owners may even be asking themselves, “Do I still need a limited company?”

The question may be prompted by rising tax bills caused by reductions to the dividend allowance and increases in dividend tax rates. In some cases, it may now be more tax effective to trade as a sole trader rather than as a limited company. However, tax is only one part of the picture.

This article looks at some of the key factors involved in disincorporating a business that can help you decide whether this is something you need to look at.

Loss of limited liability
A limited company is a separate legal entity. While this does not eliminate all risks, it does provide a layer of protection between the business and your personal assets.

As a sole trader, that protection is not there. That means if something goes wrong, you could be personally exposed.

For some businesses, this risk is low and can be well insured against. For others, limited liability remains a compelling reason to stay incorporated even if there are few tax savings.

What happens to the company’s assets?
Because of the separate legal status that a company has, disincorporation involves assets moving from the company to the shareholders personally.

This is an issue when property or goodwill is being transferred. The transfer will normally be considered to take place at market value with corporation tax payable, even if no money has changed hands.

This is a key reason why disincorporation needs careful planning rather than a quick decision.
 
How about VAT?
Ordinarily, when a VAT-registered business sells an asset, the sale will be subject to VAT. In many cases, the transfer of a business from a company to an individual can qualify as a transfer of a going concern. If the conditions are met, then VAT is not chargeable.

Of course, meeting those conditions is vital to avoiding a problem and an expensive VAT bill.

How is the company closed?
Besides moving the trade out of the company, the company itself also needs to be closed down. In some cases, a members’ voluntary liquidation may be the best way to do this. This can be relatively costly and involves an insolvency practitioner.

However, for smaller companies, a voluntary strike-off can work. This is relatively cheap and straightforward.

The method of closing down the company also affects how reserves or retained profits that are distributed to the shareholders are taxed.

Ongoing tax position after disincorporation
As a sole trader or partner, profits are taxed as they arise. In other words, there is no ability to time when you extract income from the business, or to retain profits in the business at a lower tax rate while you are growing it.

Some find the cash flow effect of the tax payments difficult to manage because of the account system that applies to sole traders and partners.

Commercial and practical considerations
Tax aside, disincorporation can affect:

• Contracts that are in the company’s name.
• Banking arrangements and finance agreements.
• Professional registrations and insurance.
• How the business is perceived by customers and suppliers.

Is disincorporation a good idea for you?
As you can see, disincorporation is not just the reverse of incorporation. The tax system makes it easier to go into a company than to come back out.

If you are thinking about it, make sure to take the time to work through the numbers as well as the mechanics of the process.

If you are thinking about it and would like personalised advice on how disincorporation may or may not benefit you, please feel free to get in touch. We would be happy to work through the numbers and the mechanics of the process with you!
 
Are You Ready for E-Invoicing?
HM Revenue & Customs (HMRC) recently released a research paper on how small and medium-sized businesses (SMEs) view electronic invoicing, also called e-invoicing.

In the Autumn Budget 2025, plans were announced to make e-invoicing mandatory for VAT invoices from 2029. The research paper was designed to help deliver an e-invoicing policy that will suit the competitive needs of SME businesses.

An e-invoice is an invoice that is sent and received in a structured digital format and is suitable for automatic electronic processing. E-invoicing systems can integrate with accounting systems, which can make it easier to manage a business’s bookkeeping.

The government believes that e-invoicing will assist businesses in submitting more accurate tax returns.

The research indicates that 59% of businesses are familiar with what e-invoicing is. However, only 29% of businesses appear to be currently using e-invoicing, and only 10% of SMEs report both sending and receiving e-invoices.

The most common method used by SMEs both for sending and receiving invoices was reported to be PDF or email. Many businesses are also still using paper and physical mail for invoicing.

With a change to e-invoicing not becoming mandatory until 2029, there is still plenty of time to prepare. If you would like help exploring whether your accounting system can handle e-invoicing, please give us a call. We would be happy to help you!

See:  https://www.gov.uk/government/publications/electronic-invoicing-sme-usage-and-attitudes/electronic-invoicing-quantitative-research-into-small-and-medium-sized-enterprises-usage-and-attitudes
 
State Pension Amounts Increase… But So Does the State Pension Age
Last week marked a 4.8% rise in both the basic and new State Pensions. This could mean an additional £575 annually for many pensioners.

The Pension Credit has also increased by 4.8% and is worth an average of £4,300 a year.

The full rate of the new State Pension increases from £230.25 to £241.30 a week. The full basic State Pension increases from £176.45 to £184.90 a week.

The Standard Minimum Guarantee in Pension Credit is now £238.00 per week for a single pensioner, and £363.25 for a couple.

The increases, which are part of the government’s Triple Lock Guarantee, apply automatically. If you receive the State Pension, you should notice the increase in your next payment.

State Pension age starts rising to 67
The current State Pension age is 66 but beginning April 2026, it will start to rise.

The rise will happen gradually. First, those born between 6 April and 5 May 1960 will have to wait an extra month before they start to receive any State Pension. Those born between 6 May and 5 June 1960 will have to wait an extra two months.

By next April the State Pension age will have risen to 67.

The change aims to reflect longer life expectancy and may signal future pension age rises, with many now expecting to have to work into their 70s.

See: https://www.gov.uk/government/news/over-12-million-pensioners-to-receive-575-state-pension-boost
 
New Rules to Eliminate Costly Subscription Traps
New rules, which are expected to come into force from spring 2027, will make it easier for people to avoid costly subscription traps.

The rules will mean:

• Clear, simple information to be provided before any subscription is signed up for.
• Reminders before free or discounted trials end, or before annual (or longer) contracts automatically renew.
• Cancellations will be made straightforward, including online exits for online sign-ups.
• A new 14-day cooling-off period, after a free or discounted trial ends, or when an annual (or longer) contract renews.

The government has confirmed that initial cooling-off rights and refunds will be broadly consistent with existing Consumer Contract Regulations. This includes retaining a waiver for digital content.

For the cooling-off refund period for renewals, consumers will be able to receive a full or proportionate refund if they decide to cancel. Proportionate refunds will allow businesses to be compensated for the proportion of contract services or digital content that has been supplied.

Certain memberships of charitable, cultural and heritage organisations will be excluded from the new rules.

Businesses that receive revenue from subscriptions will want to keep an eye on these regulations as they develop over the next year.

See: https://www.gov.uk/government/news/consumers-to-save-around-400-million-every-year-from-government-crackdown-on-costly-subscription-traps
 
Farewell to the Valuation Office Agency
With effect from April 2026, the Valuation Office Agency (VOA) has been brought into HM Revenue & Customs (HMRC) as a cost-saving measure. The change means that the VOA has ceased to exist as an executive agency.

The Valuation Office will now be part of HMRC and will have responsibility for valuing business rates and council tax.

Businesses have been advised that the change will not affect the services the VOA previously delivered. The Valuation Office will still handle business rates valuation checks and challenges, council tax band challenges, and the work carried out by rent officers.

The Valuation Office customer helpline and online contact form are still available. You may notice that caseworker email addresses change to ‘@hmrc.gov.uk’.

See: https://www.gov.uk/government/news/valuation-office-joins-hm-revenue-and-customs
 
New Access to Sick Pay and Parental Leave for Workers in Great Britain
New provisions in the Employment Rights Act took effect from 6 April 2026. These include:

• Employees will now be entitled to receive Statutory Sick Pay from their first day of sickness absence, instead of waiting until the fourth day. 
• In addition, new fathers and partners have also gained the right to paternity leave from their first day in a new job, instead of needing to wait six months.
  
• Day one rights to unpaid parental leave have also begun. Previously, parents had to wait a year before qualifying. 
• Parents are also granted a new right to take Bereaved Partner’s Paternity Leave following the death of a child’s mother or primary adopter. 
• The launch of the Fair Work Agency, which combines three separate agencies to enforce employment rights more effectively and efficiently.

Employers will need to make sure that their sickness and employment policies are updated to reflect the new laws. Employers who operate in Great Britain as well as Northern Ireland will need to make sure their policies and payroll software correctly account for the employee’s location.

If you need any assistance with managing payroll under the new requirements, please let us know. We would be happy to help you.

See: https://www.gov.uk/government/news/millions-of-workers-get-new-access-to-sick-pay-and-parental-leave
 
Pioneering Employment Rights for Employees in Northern Ireland
New employment rights have been introduced in April 2026 that make Northern Ireland the first jurisdiction in the northern hemisphere to provide support for miscarriage and early pregnancy loss.

New entitlement
The new entitlement for miscarriage means that an employee in Northern Ireland who experiences a miscarriage, or anyone with a defined connection to a woman who has experienced a miscarriage, will qualify for Parental Bereavement Leave and Pay.

No medical evidence will be required to be entitled to the leave. The employee simply needs to submit a written self-declaration, including their name and the date the miscarriage occurred or was discovered to have occurred.

This means that Parental Bereavement Leave and Pay will now apply to parents who experience:

• The loss of a child under age 18, including stillbirth from 24 weeks of pregnancy.
• A miscarriage, whether due to spontaneous loss or a specified medical intervention.

Statutory Parental Bereavement Pay now a day one right
From April 2026, Statutory Parental Bereavement Pay will also become a day-one right. Previous service and minimum earnings requirements no longer apply.

Where entitlement was gained before 6 April 2026, then the previous rules apply. The miscarriage entitlement is not retrospective.

Who do the changes apply to?
The changes only apply to employees in Northern Ireland.

For employers who operate in and employ workers in both Northern Ireland and other areas of Great Britain, it will be important to ensure that the entitlements are correctly applied in payroll software and employment policies are correctly updated.

The Labour Relations Agency has published updated guidance as well as a webinar explaining the changes and dealing with frequently asked questions.

See: https://www.nibusinessinfo.co.uk/content/changes-parental-bereavement-leave-and-pay-april-2026 

10th 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

Should You Incorporate Your Business?
If you have been running a business for a while, maybe as a sole trader or in a partnership, you may have heard someone say, “You should incorporate”.
Sometimes that is well-meaning advice, but is it true that incorporation is the smart move for all business owners?

Let’s look at some of the factors you should consider if you are thinking about incorporating your business.

The tax angle
For some years, incorporation was seen as a straightforward tax win. Company profits are taxed at corporation tax rates, and if you took money out of the company using a mix of salary and dividends, that often worked out to a lower tax cost than paying income tax as a sole trader.

Today, heading into the 2026/27 tax year, the picture is more nuanced. Particularly where profits are all withdrawn from the business to cover living and other personal costs, incorporating may no longer lead to a tax advantage.

It is important to carefully review your personal situation and future goals to assess how incorporating would affect your tax bill.

Limited liability
Even when incorporating does not lead to a tax advantage, the limited liability that a company provides can still offer a strong reason for incorporating a business.

To explain, a limited company is a separate legal entity. That means that if things go wrong, your personal risk is generally limited to any money you’ve put into the company.

You may, however, find that after incorporating, some lenders require personal guarantees for leases, bank loans or supplier credit so they can reduce their own risk.

Even so, for many businesses, the company structure provides a sensible layer of protection.
 
How the business is perceived
Sometimes a company name and registration number can give your business a more ‘established’ appearance.

This might help when it comes to bidding for contracts, as some organisations will only contract with limited companies.

Admin work
A company comes with some additional responsibilities that translate to more paperwork.

Some enjoy the discipline needed to run a company, but others find it a nuisance or an unnecessary cost.

Paying yourself
As a sole trader, any money you earn is yours as soon as it arrives in your bank account.

Because a company is a separate legal entity, it means any money in the business belongs to the company and not you personally. That means you need to arrange to take money out of the company. For instance, you might take a:

• Salary, which involves having to run a payroll.
• Dividend, which requires some paperwork and can only be taken if the company has enough profits available.

This gives you some flexibility and may provide some tax advantages, but it also requires discipline. You cannot simply dip into the company bank account as if it were your own and you may face unexpected tax charges if you do.

Final thoughts
Incorporation can be a good tool for many businesses, but it is not necessarily the best choice for everyone. Weighing up the various factors involved will help you reach a decision that is right for you and your business.

If you would like tailored advice on whether incorporation would be a good fit for you, please give us a call. We would be happy to help you.
 
CMA Tackles Fake Reviews
The Competition and Markets Authority has launched investigations into five companies to tackle fake and misleading online reviews.

The investigations will examine how reviews are obtained, the way they are moderated and displayed and the star ratings that people rely on.
The Digital Markets, Competition and Consumers Act 2024 outlawed obtaining and posting fake reviews as well as the use of paid-for reviews that are not clearly marked as incentivised.

Hiding negative reviews and presenting an inaccurate picture through star ratings are also dealt with by the Act.

Reviews form a key part of many purchasing decisions, making this area of the law vital for maintaining confidence in the information that businesses make available.

The businesses under investigation are:

• Autotrader and Feefo - to look at whether 1-star reviews were not published and did not count towards star ratings.
• Dignity - to consider whether staff were asked to write positive reviews and so give an inaccurate picture of the experience of genuine customers.
• Just Eat - to review whether certain restaurant and grocers’ star ratings were inflated.
• Pasta Evangelists - to find out whether customers were offered discounts on future orders in exchange for leaving 5-star reviews, without disclosing this.

The CMA has said that the investigation does not mean they have already concluded whether the businesses have infringed consumer law.

Once an investigation is complete, and where the CMA finds an infringement of the law, they can require the business to change its practices and impose fines of up to 10% of global turnover.

For businesses that use online reviews, detailed guidance is available to help stay on the right side of the law.

What can you do to avoid being caught by fake reviews?
The CMA provides four Top Tips to help you spot some of the warning signs that may suggest a review is fake or misleading.

1. Read the reviews rather than just relying on the star rating. If a review sounds dubious, overly vague or even totally unrelated to the item being endorsed, that could indicate that the review is fake. 
2. Look out for reviews generated by AI. AI can make fake reviews sound fluent, polished and highly convincing. However, trust your instincts. If a review seems a bit too slick in the way it is written, then you may be best to look for more detail elsewhere. 
3. Don’t just look at the 5-star ratings. A three or 4-star review is less likely to be fake. Someone might have taken a star off for a minor gripe but still give you a good idea of the core service the business provides. 
4. Use multiple sites. This may help you to spot patterns and make sure you are seeing a consistent picture.

See: https://www.gov.uk/government/news/fake-and-misleading-reviews-5-businesses-under-cma-investigation

Support Confirmed for Mortgages
Following a meeting with the Chancellor of the Exchequer, the UK’s six largest lenders and building societies have committed to proactively contact 1.6 million customers whose fixed-rate mortgage deals end between now and the end of 2026.

They will set out options and explain how to access any bespoke support needed, well before there is any change to payments.

The conflict in Iran has led to increases in mortgage rates being offered by lenders. Many businesses and households already on fixed-rate deals will not be affected for now. However, those looking to take out new finance or renew deals will be concerned about these recent increases.

To help with this. the Mortgage Charter was also reaffirmed at the meeting. The Charter sets out the standards lenders will adopt when helping their customers. It provides the option for customers to:

• Book a new rate up to six months ahead.
• Switch to a new deal with their existing lender without a fresh affordability check.
• Move to interest-only payments for six months to get some temporary breathing space. Any discussions about support will not affect credit scores.

Currently, lenders report that lending continues to hold up well despite the recent changes and arrears remain low.

If the increase in rates is creating pressure for your business and you would like to consider the different financing options that might be available to you, please do get in touch. We would be happy to help you.

See: https://www.gov.uk/government/news/chancellor-gets-banks-to-step-up-mortgage-support-for-customers
 
Review of Approved Mileage Rates Promised
The government has confirmed that it will review its approved mileage rates before a future Budget.

Many businesses use HMRC’s approved mileage rates to reimburse directors and employees for the cost of using their own vehicle when travelling for business. The current rates have not changed since 2011, although motoring costs have increased significantly in that time.

There is no indication when a review will take effect, with the government’s statement simply specifying ‘a future Budget’.

In the meantime, to inform its work it appears that the government will meet with people struggling with increased costs.
 
As a reminder, the current mileage rates, which remain unchanged for now, are:

Type of vehicle: Cars and vans
First 10,000 business miles in the tax year: 45p
Each business mile over 10,000 in the tax year: 25p
 
Type of vehicle: Motor cycles
First 10,000 business miles in the tax year: 24p
Each business mile over 10,000 in the tax year: 24p
 
Type of vehicle: Bicycles
First 10,000 business miles in the tax year: 20p
Each business mile over 10,000 in the tax year: 20p
See: https://www.gov.uk/government/news/mileage-rates-review-to-support-working-people
 
Is Vibe Coding the Future?

The National Cyber Security Centre (NCSC) has published a blog post exploring the potential for ‘vibe coding’ replacing the Software-as-a-Service (SaaS) business model. While not suggesting that vibe coding is ready to take over now, they conclude that vibe coding is following a pattern similar to cloud adoption 20 years ago.

Here we review some of the ideas discussed.

What is vibe coding?
Vibe coding is a term used for writing computer code using Artificial Intelligence (AI), often without any human review.

Currently, vibe coding does not necessarily work well for someone who has little or no technical experience. While anyone can create code using AI, it’s often unreliable, hard to maintain or may have critical issues.

However, experienced developers who know how to code and review the work of others are finding that vibe coding can greatly increase their productivity.
While there are concerns about the quality and how to maintain the code, businesses are beginning to find that vibe coding can offer a viable alternative to expensive SaaS subscriptions.

How have we got to here?
In the past, running a software application in a business usually meant buying the software, installing and configuring it on computers and/or servers owned by the business and kept at the business’ premises. Applying an update to the software could take significant time and energy.
 
With the advent of cloud computing and SaaS, this process was simplified. The software remains on the servers of the software supplier, with the user accessing it online, usually through a web browser. This approach means that the supplier updates the software themselves, and each user is always able to access an up-to-date version.

Examples of SaaS used by many businesses include:

• Sage, Xero and QuickBooks for bookkeeping.
• Trello, Jira or Monday for project management.
• Google Docs for word processing.

While convenient, SaaS does come with some downsides. For instance, there is the security concern of data being held outside the business. Also, because SaaS is built to meet the requirements of many customers, it does not always address the specific needs within a business. In addition, the cost of software continues to increase, with suppliers moving desirable functionality into higher-priced tiers.

As a result, some businesses are finding that vibe coding enables them to self-build relatively inexpensive solutions that reduce their reliance on SaaS and the costs that go with it.

What may the future look like?
Vibe coding does not come without risks. Potentially, AI could be used to generate code that no human ever reviews. If so, what guarantees will there be about how secure the code is? How will the code be maintained?

These are questions that the IT profession will need to address before vibe coding will be accepted by a wider audience.

To be clear, the NCSC is not advocating for vibe coding and the risks currently involved in vibe coding are considerable. However, their article does indicate that we could be hearing a lot more about vibe coding in the coming years.

See: https://www.ncsc.gov.uk/blogs/vibe-check-ai-may-replace-saas-but-not-for-a-while
 
Mental Health: A Key Reason for Sickness Absence
A new YouGov survey commissioned by Acas shows that almost one in three employers are finding that stress, anxiety, depression or other mental health problems are a reason that staff give for sickness absence.

The top reason for sickness is minor illnesses, such as coughs, colds and the flu.

The Employment Rights Act 2025 brings new rules into effect from 6 April 2026 that will make workers eligible for statutory sick pay for their first day of illness rather than the fourth day. Workers also no longer need to earn more than a minimum amount to be eligible.

Acas have provided four suggestions that can help employers manage, and perhaps reduce, sickness absence.

• Provide training to managers on how to support employees through a period of illness.
• Offer flexible working that helps to promote a healthy work environment.
• Have processes in place to help resolve workplace issues that can spark sickness absences.
• Have accessible and clear illness and absence policies so that everyone knows what is expected should someone need time off work.

Acas has updated its guidance on sick pay in light of the new rules.

See: https://www.acas.org.uk/a-third-of-workplace-sickness-absence-is-due-to-stress-anxiety-depression-or-other-mental-health 

3rd 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!

Just a courtesy note that our office will be closed for the Easter weekend, closing at 5pm on Thursday 2nd April and reopening at 9am on Tuesday 7th April. 

I hope you have a great Easter. 

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

Government Responds to Late Payments Consultation
The government has published its response to the late payments consultation that ran from July to October last year.

It is estimated that late payments cost the UK economy £11 billion every year, and most businesses are familiar with the pain of dealing with late payments.

Here we summarise the changes that the government intends to legislate for to help address the problems created by late payments.

Powers for the Small Business Commissioner
The Small Business Commissioner will be given powers to:

• Investigate businesses suspected of poor payment practices or inaccurately reporting payment performance.
• Settle payment disputes outside of the court process.
• Fine businesses, including significant potential fines for large companies that persistently pay their suppliers late or fail to comply with late payment legislation.

Maximum payment terms and mandatory interest
Other than for strictly limited exemptions, maximum payment terms of 60 days will be imposed.

A requirement will be introduced that all commercial contracts will contain a right to statutory interest at 8% above the Bank of England base rate.

Disputing invoices deadline
A statutory time limit will be introduced for raising disputes and compensation required when deadlines are not met.

Scrutiny of payment practices
Boards or audit committees of any persistently late-paying large company will need to publish a commentary on why payment performance is poor and what actions are being taken to improve this.

Construction retention payments
The practice of deducting and withholding retention payments under construction contracts will be banned.

What happens next?
The government have said that they intend to legislate these changes as soon as Parliamentary time allows.
In the meantime, take a look at our accompanying article that gives you three practical tips that can make a real difference to reducing late payments.

See: https://www.gov.uk/government/news/time-to-pay-up-government-unveils-toughest-crackdown-on-late-payments-in-over-25-years
 
Three Practical Tips to Deal with Late Payments
If you run a small business, you will know that late payments can quickly turn from an irritation into a full-blown cash flow problem. The government’s response to the recent late payments suggests that there will soon be additional legislation to help deal with the problem.

In the meantime, here are three practical steps you can take that can make a real difference.

1. Make it easy and obvious for customers to pay
Late payments from customers are not necessarily deliberate. At times, they are caused by confusion or missing information.

A few small tweaks can cut down on a surprising number of overdue invoices. For example:

• Put your bank details on every invoice and make them large enough to spot at a glance.
• Add a clear “Payment due by [date]” line in the top section of the invoice.
• Offer more than one payment method if possible.
• Send the invoice on the same day the work is completed. When a job has gone well and the customer is pleased, payment may be more rapid.

2. Set expectations early and repeat them often
Embed payment terms into your communications with the customer throughout the work you are doing for them. For instance:

• Before you start work, confirm the price and payment terms in writing.
• Reconfirm those terms on the quote, on the invoice, and in the first reminder.

If you need deposits or staged payments, say so upfront. Many customers will take this well when it is framed as a normal part of your process. For example, you might say: “We take a 25% deposit to secure the work, with the balance due within 14 days of invoice.”
 
3. Be polite but firm when chasing, and follow a set routine
Chasing overdue invoices feels awkward, so it can be tempting to leave it in the hope that the customer will pay before you have to say anything. However, that can mean leaving it too long.

A routine takes the emotion out and keeps things consistent. For instance, you might try:

• Day 1 after the due date has passed - Send a friendly reminder to check that the invoice has not been missed.
• Day 7 - Be firmer, include the invoice again and ask for a specific payment date.
• Day 14 - Let the customer know that late payment interest may be charged under the Late Payment of Commercial Debts Act. You do not need to actually apply the interest unless it is appropriate.

Some customers will still be slow, whatever you do, but many will respond well when you keep things polite, clear and businesslike.

In conclusion
In practice, managing late payments is mostly about consistency and having a simple system that you stick to.

If you would like a hand setting up reminders in your accounting software or working out a set of payment terms that are fair and easy to communicate, please just let us know. We can look at what you are doing now, suggest a few practical adjustments and help you put something in place that’s straightforward for you and clear for your customers.
 
Extracting Dividends from Your Company Ahead of the April 2026 Tax Rise
If you are a shareholder, from 6 April 2026, the tax you pay on dividends is increasing, as follows:

• Basic rate moves from 8.75% to 10.75%
• Higher rate moves from 33.75% to 35.75%
• Additional rate remains at 39.35%

For shareholders of owner-managed companies, dividends are still one of the most tax-efficient ways to take money out of the company. But with these increases coming in, it will be worth taking a fresh look at your extraction strategy.

Using 2025/26 allowances and rates
There are a few days left before the 2025/26 tax year ends.

Where the timing of dividends can be controlled, it may be beneficial to accelerate the payment of dividends before 6 April 2026. Please contact us to find out whether this would work for you.

Salary v dividends in 2026/27
While there are several options for drawing profits from a company in a tax-efficient way, it often comes down to a combination of salary and dividends.

For many individuals, taking a small salary equal to the £12,570 personal allowance and then taking dividends as the balance of the income required, can be a good approach.

This will continue to apply in 2026/27, even though the tax on dividends will be higher. However, the additional tax involved may mean you need to increase the amount of your dividends to retain the same amount of income.

There are situations where taking a higher salary could be advisable, including where the employment allowance is available to offset any employer’s national insurance arising on salaries.

Please do contact us for personalised advice on how to maximise income from your company.
 
CMA Report to Bring New Obligations for Vet Practices
The Competition and Markets Authority (CMA) has concluded its investigation into the veterinary sector and set out its final reforms coming into force later in the year.

The legally binding measures aim to provide clearer information for pet owners but will mean increased regulation for veterinary businesses and practices.

Key changes
The final remedies and recommendations in the report include the following changes:

• Practices will need to publish a comprehensive price list for their standard services - including consultations, common procedures, diagnostics, written prescriptions and cremation options.
• Price and ownership information will be made available to pet owners through the Royal College of Veterinary Surgeons (RCVS) ‘Find a Vet’ service. RCVS will share this data with third-party comparison sites.
• Vet businesses will need to make it clear whether they are part of a group or an independent business. Common ownership will need to be displayed on signage, both at the business’s premises and online.
• Except for emergencies, practices will have to provide a written estimate in advance for any treatment that is expected to cost £500 or more (including aftercare costs). An itemised bill will also be required.
• Pet owners will need to be told that they can have a written prescription, which could save them money.
• Written prescription fees will be capped at £21 for the first medicine and £12.50 for any additional medicines.
• Practices will need written policies in place that ensure that vets are empowered to offer independent and impartial advice. This is to avoid the potential for being compromised by commercial pressure.
• Pet care plans will need to clearly set out the price of each component, the total cost and how any advertised savings are calculated.
• Clear, upfront prices will need to be provided for all cremation options, including any add-ons. A lower-cost option for a communal cremation will also need to be offered.
• Out-of-hours providers will be banned from imposing unreasonably long notice periods. This will make it easier for practices to end a contract if there’s a better service elsewhere.
• Practices will need to have a transparent, accessible in-house complaints process and engage in mediation where disputes cannot be resolved.

Reforms to regulations and legislation
The CMA has backed the government’s proposed reforms to the Veterinary Services Act, which will make veterinary businesses, and not just individuals, accountable to an independent regulator.

The RCVS will take a central role in monitoring compliance with its work funded by a levy on veterinary businesses. The levy will be charged based on the size of the business. The CMA estimates that the levy will be in the region of £150 to £250 per practice for the initial costs and £450 to £550 per practice on an annual basis for ongoing costs.

Next steps
The CMA now have until 23 September 2026 to put in place the legally binding Orders that will bring their remedies and recommendations into effect.

Depending on the measure, businesses will need to implement these in the following three to 12 months.

The CMA have confirmed that smaller veterinary businesses will be given an additional three months to implement many of the changes than larger businesses.

See: https://www.gov.uk/government/news/cma-concludes-market-investigation-with-major-reforms-to-veterinary-sector
 
Increased Opportunities in the Public Sector for Small Businesses
For the first time, government departments have set individual targets for how much they will spend with small and medium-sized businesses (SME). In total, the government plans to spend £7.4 billion a year with SMEs by 2028.

The targets are part of the government’s Plan for Small Business and aim to help businesses and the economy grow.

To hold government departments accountable, they will be required to publish yearly progress updates. Departments that fall behind will need to show how they will improve.

Small Business Minister Blair McDougall said: “These new targets will ensure thousands of smaller businesses have greater opportunity to win lucrative government contracts and grow their businesses.”

See: https://www.gov.uk/government/news/billions-to-go-directly-to-small-businesses-across-the-country-as-government-sets-new-targets-for-spending
 
Could Early Warning from NCSC Help Your Defences Against Cyber Threats?
The National Cyber Security Centre (NCSC) offer a free Early Warning service to all UK organisations.

Early Warning is a free NCSC service that can give you a head start on potential cyber threats that they are aware of. Cybersecurity researchers may uncover malicious activity on the internet or discover weaknesses in organisations’ security controls and release this in information feeds.

The NCSC uses trusted information feeds, including some that are not available elsewhere, for Early Warning.

Depending on the information you provide when registering, NCSC will send you tailored alerts via email.

According to the 2025 Cyber Breaches Survey, 43% of businesses reported a cybersecurity breach or attack in the last 12 months. Cyber threats continue to endanger businesses of all sizes, and the advance alert provided by NCSC’s Early Warning service can provide an additional layer of defence.

To find out more and register, see: https://www.ncsc.gov.uk/section/active-cyber-defence/early-warning