During the State Visit by President Trump, the UK secured a record-breaking £150 billion of inward investment from US firms. The package is intended to boost jobs, support growth, and advance the UK’s key industrial sectors, especially life sciences, advanced manufacturing, clean energy, biotech, AI and other future-facing industries under the UK’s Modern Industrial Strategy.

Key components of the deal

Here are some of the flagship commitments:

• Blackstone pledged around £100 billion over the next decade into the UK.
• Prologis will invest £3.9 billion, including use in the Cambridge Biomedical Campus and upgrading Daventry Rail Freight Terminal.
• Palantir agreed to invest up to £1.5 billion to help make the UK a defence innovation leader and create up to 350 jobs.
• Amentum will invest £150 million, creating over 3,000 jobs across areas like Glasgow, the Midlands and Warrington.
• Boeing committed to converting two 737 aircraft in Birmingham for the USAF, bringing about 150 high-skilled jobs.
• STAX, a US engineering firm, will commit around £37 million to expand UK operations, especially in emissions-reducing technology at ports.

Where the jobs and benefits are headed

The investment is forecast to create more than 7,600 high-quality jobs throughout the UK, covering not just London and the South East, but also Belfast, Glasgow, the Midlands and the North East. It includes major commitments in research and development and support for start-ups, particularly in biotech, AI and clean energy sectors.

Why it matters

This is the biggest commercial investment package ever secured during a UK state visit. It signals confidence from US firms in the UK’s economic strategy and global competitiveness. For business, tax, infrastructure, jobs, and innovation policy, it gives strong backing to the government’s plans.

For many business owners, a vehicle is an essential tool. Whether it is for visiting clients, delivering goods, or simply keeping things moving, choosing how to finance a vehicle can have a big impact on cash flow and tax planning. There are several routes to consider, each with its own advantages.

Buying outright

The simplest option is to purchase the vehicle in full. This means your business owns it from day one. Buying outright avoids ongoing finance costs, but it does tie up capital. The tax advantage is that you may be able to claim capital allowances on the cost, reducing taxable profits. Cars with low CO₂ emissions attract more generous allowances, while commercial vehicles such as vans can often qualify for the full Annual Investment Allowance.

Hire purchase

Hire purchase spreads the cost of the vehicle over a fixed term. You make monthly instalments and become the legal owner once the final payment is made. Interest will be payable, but this option gives certainty over repayments and allows you to claim capital allowances on the vehicle as if you had bought it outright.

Finance lease

With a finance lease, your business pays to use the vehicle but never actually owns it. Instead, you may be able to extend the lease at a reduced cost or sell the vehicle on behalf of the finance company and keep part of the sale proceeds. The rentals are tax deductible, which helps to reduce taxable profits.

Contract hire

Contract hire is often called leasing. You agree to use the vehicle for a set period and mileage, paying fixed monthly rentals. At the end of the agreement, the vehicle is returned. This option keeps vehicles off your balance sheet and helps with budgeting, as servicing and maintenance can be included. The rentals are usually deductible for Corporation Tax, but restrictions apply if the car has high emissions.

Personal contract purchase (PCP)

Some directors use PCP agreements through the company. These combine monthly payments with the option to buy the vehicle at the end for a lump sum. The tax treatment is similar to hire purchase if the business owns the agreement, but careful thought is needed if it is held personally.

Final thought

There is no one best option. The right choice depends on cash flow, tax position, and how long you intend to keep the vehicle. Speaking with your accountant before committing can ensure the vehicle is financed in the most efficient way for your business.

Issuing a VAT invoice without registration or authorisation can lead to HMRC penalties, even if it is done by mistake.

A penalty may be charged by HMRC when an individual or business issues an unauthorised VAT invoice showing or including VAT without being allowed to do so. The invoice does not need to be a formal VAT invoice; it only needs to show an amount that is shown as VAT or includes an amount attributable to VAT.

An unauthorised person is anyone who is not registered for VAT, not part of a VAT group, or not otherwise authorised to act on behalf of a taxable person, such as an insolvency practitioner or an auctioneer selling goods to recover a debt. Common examples include businesses operating below the VAT registration threshold, individuals who issue VAT invoices after deregistration or businesses who begin charging VAT before being VAT registered. Farmers who are not certified to use the VAT agricultural flat rate scheme, but issue flat rate invoices may also face penalties.

A penalty may be avoided if the person has a reasonable excuse for the error. However, unauthorised issuing of VAT-related invoices is treated seriously and may result in financial penalties.

Fraudsters are continuing to target taxpayers with scam emails as the deadline for submission of self-assessment returns for the 2024-25 tax year gets ever closer. In the 12 months to 31 July 2025, HMRC received more than 170,000 reports of suspicious contact from the public, of which more than 45,000 related to fake tax refund claims.

A number of these scams purport to tell taxpayers they are due a rebate / refund of tax from HMRC and ask for bank or credit card details in order to send the fake tax refund. The fraudsters use various means to try and scam people including making contact by phone calls, texts or emails. In fact, fraudsters have been known to threaten victims with arrest or imprisonment if a bogus tax bill is not paid immediately.

HMRC’s Chief Security Officer, said:

‘Scammers target individuals when they know Self Assessment customers will be preparing to file their tax returns. We’re urging everyone to stay alert to scam emails and texts offering fake tax refunds.

Taking a moment to pause and check can make all the difference. Report any suspicious activity to us before the fraudsters do any more harm. Search ‘HMRC scams advice’ and refer to the scams guidance on GOV.UK to stay informed and protect yourself.’

If you think you have received a suspicious email claiming to be from HMRC you are asked to forward the details to phishing@hmrc.gov.uk, suspicious texts to 60599 and suspicious calls can be reported on GOV.UK. If you have suffered an actual financial loss you should contact Action Fraud on 0300 123 2040 or use their online fraud reporting tool (or Police Scotland via 101).

Bereaved spouses who lost service pensions before 2015 have until 15 October 2025 to claim a one-off £87,500 recognition payment.

This scheme was launched in October 2023 to help war widows and widowers who lost their service-attributable pensions due to remarriage or entering new relationships before 2015. Since the scheme was launched, over £21 million has been paid out to more than 240 eligible individuals who had previously received no financial recognition for their sacrifice.

The scheme provides a one-off, tax-free payment of £87,500 to those who forfeited their service-attributable pensions prior to 2015 due to remarriage or cohabitation under the old pension rules and were in receipt of no other payments to recognise the loss of their partner.

The scheme applies to widow(er)s, including civil partners and unmarried cohabiting partners, of regular and reservist members of the Army, Navy or Royal Air Force.

The Minister for Veterans said,

‘The War Widows Recognition Payment Scheme has provided vital redress to those who have sacrificed so much for our country. With the scheme closing on 15 October, I urge anyone who believes they may be eligible to apply.’

Applications have slowed recently, but the Ministry of Defence believes there may still be eligible individuals who have not yet applied, and no extensions are planned.

Full details, eligibility criteria, and application forms are available at War Widow(er)s Recognition Payment – GOV.UK

Speculation is growing that rates or allowances applied to dividend income may change in the next Budget.

The current tax rates for dividends received (in excess of the £500 dividend tax allowance) are as follows:

• 8.75% for basic rate taxpayers will pay tax on dividends
• 33.75% for higher rate taxpayers will pay tax on dividends
• 39.35% for additional rate taxpayers will pay tax on dividends

Dividends that fall within your Personal Allowance do not count towards your dividend allowance and you may pay tax at more than one rate.

If you receive up to £10,000 in dividends you can ask HMRC to change your tax code and the tax due will be taken from your wages or pension or you can enter the dividends on your self-assessment tax return, if you already fill one in. You do not need to notify HMRC if the dividends you receive are within your dividend allowance for the tax year.

If you have received over £10,000 in dividends, you will need to complete a self-assessment tax return. If you do not usually send a tax return, you need to register by 5 October following the tax year in which you had the relevant dividend income.

There has been growing speculation ahead of the upcoming Budget that the government could make further changes to the taxation of dividends. With the government under pressure to raise revenue there is the possibility that the rates of dividend taxes could be increased. The current £500 tax‑free dividend allowance could also be abolished altogether, after having been significantly reduced over the last number of years.

Employers can generally claim tax relief on contributions made to a registered pension scheme by deducting those payments as an expense when calculating their business profits. This reduces the amount of taxable profit and therefore lowers the overall tax bill.

For businesses involved in a trade or profession, employer pension contributions can usually be claimed as a business expense on the proviso that the payments are incurred wholly and exclusively for the purpose of running the business.

If the employer is a company with investment business, the employer contributions should be deductible as an expense of management.

When claiming tax relief on employer pension contributions, there are a few important rules to keep in mind. Importantly, only contributions that have actually been paid qualify for relief. Other amounts recorded as liabilities that have not yet been paid are not eligible for relief until they are paid. This means employers can only claim relief in the accounting period during which the payment is actually made.

The pension tax legislation amends the normal rules regarding what is an allowable deduction and the timing of a deduction.

International employers contributing to a UK-registered pension scheme benefit from the same rules. In addition, the same basis of relief is also given to employer contributions that are referred to as relevant migrant member contributions.

If your business operates in a sector covered by the Money Laundering Regulations, you must be monitored by a supervisory authority to ensure compliance. This article outlines who needs to register with HMRC for anti-money laundering (AML) supervision.

Your business must be registered with a supervisory authority if it operates in a sector covered by the Money Laundering Regulations. Some businesses are already supervised through authorisation by bodies like the Financial Conduct Authority (FCA) or professional associations such as the Law Society.

If your business is not already supervised and falls under one of the regulated sectors, you must register with HMRC.

Business Sectors Supervised by HMRC

HMRC is responsible for supervising businesses in the following sectors (where not already regulated by the FCA or a professional body):

• Money Service Businesses not regulated by the FCA
• High Value Dealers handling cash payments of €10,000 or more (in a single transaction or linked transactions)
• Trust or Company Service Providers not supervised by the FCA or a professional body
• Accountancy Service Providers not supervised by a professional body
• Estate Agency Businesses
• Bill Payment Service Providers not regulated by the FCA
• Telecommunications, digital, and IT payment service providers not regulated by the FCA
• Art Market Participants involved in buying or selling works of art valued at €10,000 or more (including linked transactions)
• Letting Agency Businesses managing property or land with a monthly rental value equivalent to €10,000 or more

If your business conducts these activities by way of business and is not already supervised, you must register with HMRC.

Money Service Businesses and Trust or Company Service Providers are not allowed to trade until their AML registration with HMRC is confirmed. Other businesses may continue operating while their registration is being processed.

Trading while not registered is a criminal offence and may result in a penalty or prosecution.

Mr. Aslam, a former Metroline employee, applied to another bus company on 13 April 2019, disclosing that he suffered from partial hearing loss, depression, anxiety, insomnia and stress, and was interviewed on 14 May 2019. He disclosed that he had been dismissed by his former employer on the grounds of capability and was actively pursuing a tribunal claim.

He was conditionally offered a role and attended induction, although the offer was subsequently withdrawn, and no reference had been obtained from Metroline despite numerous requests. Moreover, he was not allowed to work shifts before he attended induction, while two other candidates were permitted to do so. During the induction process, the claimant emailed the respondent to enquire whether he was being treated differently from the other candidates for the job because of his race. This, coupled with the tribunal claim, had led to a withdrawal of the offer on 20 June 2019. 

The claimant claimed direct race discrimination and victimisation after he had informed the respondent about a tribunal claim against Metroline. The Employment Tribunal found that the job offer had been withdrawn because the respondent believed the claimant was likely to be protected under the Equality Act 2010, Section 27(1)(b) and upheld the claimant’s victimisation claim, although it subsequently reversed its judgement and dismissed the claim. The claimant appealed and the original judgement was reinstated. 

The judgement serves as a clear warning to employers, as withdrawing a job offer or taking other detrimental action based on a person's history of bringing claims, or a perceived likelihood that they may bring one in the future, can itself constitute an act of victimisation under the Equality Act. Employers should tread carefully before weighing pending tribunal cases in their decisions to make or withdraw formal offers of employment.

Every business has a duty to pay tax, whether that is Corporation Tax, VAT, PAYE, or personal tax liabilities for the owners. While these payments are predictable, many businesses still find themselves short of cash when the due dates arrive. One way to reduce this risk is to create a cash deposit reserve specifically set aside to cover past and current tax liabilities.

The idea is simple. Each time profits are made, or taxable income is earned, a proportion of cash is transferred into a separate bank account. This money is not touched for day-to-day trading but held back until HMRC requires payment. By treating tax as an ongoing expense rather than an occasional shock, businesses can avoid last-minute scrambles to find funds.

There are several benefits. First, a reserve provides peace of mind. Business owners know that when the tax bill lands, the money is ready and waiting. This reduces stress and allows management to focus on running and growing the business.

Second, a tax reserve supports cash flow planning. By separating tax money from working capital, it becomes clearer how much is genuinely available for wages, suppliers, or investment. Mixing tax liabilities with general funds often leads to overspending and unnecessary borrowing.

Third, building up a reserve shows financial discipline. It reassures banks, investors, and other stakeholders that the business takes its responsibilities seriously and manages risk sensibly.

Even small, regular transfers can make a big difference. By keeping tax reserves in a deposit account, businesses may also earn some interest before payments fall due.

In short, creating a tax reserve is a practical and prudent step. It reduces surprises, improves cash flow visibility and ensures that tax obligations are met without disrupting business operations.

Working capital is a simple but powerful measure of a business’s financial health. It is the difference between current assets and current liabilities. In other words, it shows what is left when a business’s short-term debts are taken away from its short-term resources such as cash, stock and money owed by customers.

If the result is positive, the business has money available to cover day-to-day operations. If it is negative, the business may struggle to meet upcoming bills or need to rely on borrowing.

Why is working capital so important? First, it gives a clear picture of liquidity. A profitable business can still fail if it runs out of cash to pay suppliers, wages, or rent. By keeping a close eye on working capital, owners can see whether they have enough resources to keep the business running smoothly.

Second, working capital affects flexibility. A business with strong working capital can take opportunities such as bulk-buying stock at a discount or investing in new projects. A business with weak working capital may be forced to delay decisions or turn down growth opportunities because it cannot afford the risk.

Third, lenders and investors often look at working capital when deciding whether to support a business. A healthy balance suggests stability and good management, while a weak position may raise concerns.

Improving working capital does not always mean cutting costs. It can involve speeding up customer payments, negotiating longer terms with suppliers, or keeping a closer watch on stock levels. Even small changes can make a big difference to cash flow.

In short, working capital is about making sure a business can meet today’s needs while staying ready for tomorrow’s opportunities.

The Chancellor of the Exchequer, Rachel Reeves confirmed, in a video message, that the next UK Budget will take place on Wednesday, 26 November 2025.

Details of all the Budget announcements will be made on a special section of the GOV.UK website which will be updated following completion of the Chancellor’s speech in November.

HM Treasury is inviting written representations for the Autumn Budget 2025 from individuals, interested groups, MPs and organisations. Submissions should propose evidence-based policy ideas or comment on existing policies, with clear rationale, costs, benefits, and deliverability. The deadline for submissions is 23:59 on Wednesday, 15 October 2025.

The Budget will be published alongside the latest forecasts from the Office for Budget Responsibility (OBR). This forecast will be in addition to that published for the Spring Statement and fulfil the obligation for the OBR to produce at least two forecasts in a financial year, as is required by legislation.

The OBR has executive responsibility for producing the official UK economic and fiscal forecasts, evaluating the government’s performance against its fiscal targets, assessing the sustainability of and risks to the public finances and scrutinising government tax and welfare spending.