15th May 2026 – Hillmans Weekly Update

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

Have a great weekend. 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Other things you could think about include:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

HMRC are highlighting several benefits to filing early, including:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Hillmans has a new look, introducing TaxStore®

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

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

1st May 2026 – Hillmans Weekly Update

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

Have a great weekend. 

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

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

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

What lessons can be gleaned from Apple’s approach?

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

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

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

In practical terms, this means:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

For example, you might consider questions like:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

HSE is consulting on legislative changes that will:

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

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

The consultation is open until 30 June 2026.

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

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

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

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

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

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

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

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

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

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