Waiting to be paid but still having to hand over VAT? The VAT Cash Accounting Scheme potentially lets you pay VAT only when your customer pays you, helping to ease cash flow pressures for small and medium-sized businesses.

This approach can offer significant benefits if your business offers extended credit terms to customers or regularly deals with bad debts. Rather than having to find the money to pay VAT on sales you have not yet been paid for, the scheme allows businesses to align VAT payments with actual cash received. For many small and medium-sized businesses, this can offer real breathing space and reduce the strain on working capital.

However, the scheme may not be as useful in all cases. If you are typically paid immediately at the point when you make a sale or if your business often reclaims more VAT than it pays out the scheme may offer little or no advantage. The same applies to businesses that make continuous supplies of services, where the VAT treatment might not align neatly with cash receipts.

If the scheme is not proving worthwhile, businesses can leave the scheme at the end of a VAT accounting period and return to the standard method of VAT accounting. However, for the right businesses the VAT Cash Accounting Scheme can offer significant benefits.

To join the scheme, a business must have a VAT taxable turnover of £1.35 million or less in the next 12 months. Once in the scheme, a business can continue using it until their turnover exceeds £1.6 million.

If your income exceeds £60,000 and you or your partner receive Child Benefit, you can now choose to pay the High Income Child Benefit Charge through your PAYE code instead of filing a Self-Assessment return; a simpler way to stay compliant while keeping your Child Benefit claim active.

The High Income Child Benefit Charge (HICBC) is a charge that applies to parents whose income exceeds £60,000 in a tax year and whose family receive Child Benefit. The charge is calculated at a rate of 1% of the full Child Benefit amount for every £200 of income between £60,000 and £80,000. Once income exceeds £80,000, the charge equals the full amount of Child Benefit received effectively removing any financial gain from claiming it.

Taxpayers now have the option to report their Child Benefit payments and pay the HICBC directly through their PAYE tax code, rather than filing a Self-Assessment tax return. This change was announced in the Autumn Statement 2024 and has recently been made available to eligible taxpayers.

The tax charge can be collected through PAYE if:

• the individual is not required to file a self-assessment tax return for any other reason (for example, if they are self-employed), and
• the payment arrangement is made before 31 January following the end of the relevant tax year.

If these conditions are not met, the HICBC must be paid through self-assessment instead.

Taxpayers can choose whether to continue receiving Child Benefit and pay the charge or opt out of receiving it to avoid the charge altogether. It is usually beneficial to claim Child Benefit as doing so can safeguard certain benefits and ensure your child receives a National Insurance number at age 16.

Married couples and civil partners could save up to £252 a year by transferring part of one partner’s unused personal allowance to the other, but you may need to cancel the claim if your income or relationship status changes.

The Marriage Allowance applies to married couples and civil partners where one partner does not pay tax or does not pay tax above the basic rate threshold for Income Tax (i.e., one partner must earn less than the £12,570 personal allowance for 2025-26).

The allowance allows the lower-earning partner to transfer up to £1,260 of their unused personal tax-free allowance to their spouse or civil partner. The transfer can only be made if the recipient (the higher-earning partner) is taxed at the basic 20% rate, which typically means they have an income between £12,571 and £50,270. For those living in Scotland, this would usually apply to an income between £12,571 and £43,662.

By using the allowance, the lower-earning partner can transfer up to £1,260 of their unused personal allowance, which could result in an annual tax saving of up to £252 for the recipient (20% of £1,260).

However, it is important to be aware you must cancel the Marriage Allowance if your circumstances change and any of the following apply:

• your relationship ends – because you have divorced, ended (‘dissolved’) your civil partnership or legally separated;
• your income changes and you are no longer eligible; or
• you no longer want to claim.

When a couple is separating or undergoing divorce proceedings, tax issues are often not the first thing on their minds. However, alongside the emotional challenges, it is important to understand the tax implications of divorce can have a significant impact.

Changes to the Capital Gains Tax (CGT) rules for divorcing couples took effect on 6 April 2023. These changes extended the period during which spouses and civil partners can make transfers between each other without triggering CGT. The no gain/no loss rule now lasts up to three years after they stop living together. Additionally, if the couple has a formal divorce agreement, there is no time limit for these transfers. Before this change, the no gain/no loss treatment only applied to disposals in the tax year of the separation.

There are also specific rules for people who continue to have a financial interest in their former family home after separating. These rules allow them to claim private residence relief (PRR) when the home is eventually sold, provided certain conditions are met.

During divorce proceedings, it is crucial to reach a fair financial agreement, if possible, as this can help avoid further legal complications. If an agreement cannot be reached, the court may step in to issue a "financial order." Both parties and their advisers should also carefully consider the future of the family home, any family businesses, and the potential Inheritance Tax consequences of the separation or divorce.

Certain buildings, land, works of art, and other objects of national significance may be exempt from Inheritance Tax and Capital Gains Tax (CGT) when they are transferred to a new owner. This exemption applies under a special tax relief for national heritage assets that are either gifted or bequeathed.

To qualify for this relief, the asset must meet at least one of the following criteria:

• Buildings, estates or parklands of outstanding historical or architectural interest
• Land of outstanding natural beauty and spectacular views
• Land of outstanding scientific interest including special areas for the conservation of wildlife, plants and trees
• Objects with national scientific, historic or artistic interest, either in their own right or due to a connection with historical buildings

Upon transfer of ownership, the new owner is required to enter into a formal agreement, known as ‘the undertakings. This agreement ensures that the asset will be cared for, made available for public viewing, and retained in the UK. Failure to meet these conditions, or selling the asset, results in the revocation of the tax exemption under the Conditional Exemption Tax Incentive scheme. As a consequence, the asset would then be subject to tax in accordance with the standard rules.

HMRC is guided by the government’s heritage advisory agencies in deciding which assets qualify for exemption.

HMRC has issued a press release urging 18-23 year olds who have yet to claim their Child Trust Fund (CTF) cash to do so as soon as possible. According to HMRC, over 758,000 young adults in this age group have unclaimed funds, with the average savings pot estimated to be around £2,240.

Anyone who turned 18 on or after 1 September 2020 could have unclaimed money in a dormant CTF. Parents of children aged 18-23 should also check if their children have claimed the funds to which they are entitled.

Children born between 1 September 2002 and 2 January 2011 were eligible for a CTF account, with the government contributing an initial deposit, typically at least £250. These accounts were set up as long-term savings for newly born children.

HMRC’s Second Permanent Secretary and Deputy Chief Executive, said:

‘If you’re between 18 and 23, you could be sat on a savings payout and not even realise it. Just search ‘find my Child Trust Fund’ on GOV.UK to find your savings account today.’

More than 563,000 young people went online to find their CTF in the 12 months to August 2025. September 2024 was the busiest month when over 71,000 searches were submitted.

Approximately 6.3 million Child Trust Fund (CTF) accounts were created during the scheme's operation. If a parent or guardian was unable to open an account for their child, HMRC stepped in and set up a savings account on the child’s behalf.

1 November 2025 – Due date for Corporation Tax due for the year ended 31 January 2025.

19 November 2025 – PAYE and NIC deductions due for month ended 5 November 2024. (If you pay your tax electronically the due date is 22 November 2025.)

19 November 2025 – Filing deadline for the CIS300 monthly return for the month ended 5 November 2025. 

19 November 2025 – CIS tax deducted for the month ended 5 November 2025 is payable by today.

1 December 2025 – Due date for Corporation Tax payable for the year ended 28 February 2025.

19 December 2025 – PAYE and NIC deductions due for month ended 5 December 2025. (If you pay your tax electronically the due date is 22 December 2025).

19 December 2025 – Filing deadline for the CIS300 monthly return for the month ended 5 December 2025. 

19 December 2025 – CIS tax deducted for the month ended 5 December 2025 is payable by today.

30 December 2025 – Deadline for filing 2024-25 self-assessment tax returns online to include a claim for under payments to be collected via tax code in 2026-27.

Recently, a clear legal precedent confirmed that the nature of an individual's work is determined by the reality of the actual employment relationship rather than by arbitrary titles. Mr. Gooch worked for the British Free Range Egg Producers Association (BFREPA) from 1 November 2011 until 26 April 2024, initially as a Policy Director on a "contracted services basis" for 2.5 days per week. The organisation, originally an unincorporated association, subsequently became an incorporated company in 2023 (BFREPA Ltd.), although the nature of its work was unaltered.

As Mr. Gooch's role evolved, so his compensation increased and, by 2016, he had effectively been promoted to Chief Executive of Services. Throughout his 12.5 years of engagement, he consistently submitted monthly invoices and was paid a retainer due to his self-employed status, without formally establishing a limited company. In February 2023, BFREPA's leadership expressed concern that their arrangement with Mr. Gooch looked remarkably similar to an employment relationship rather than a self-employed contract, even suggesting that the HMRC would likely classify him as an employee.

As a consequence, in March 2023, BFREPA gave him 12 months' notice of termination, and he continued working until April 2024, at which point his email access was disabled, and he received a letter confirming that his contract would not be renewed. Mr. Gooch duly lodged claims against both defendants for unfair dismissal, unauthorised deductions from wages, unpaid holiday, wrongful dismissal for failure to pay statutory notice, and breach of contract relating to pension auto-enrolment. 

The Tribunal ruled that the claimant was a de facto employee, working under a contract of employment as defined by Section 230(1) of the Employment Rights Act 1996, Section 2 of the Working Time Regulations 1998, and Section 88(2) of the Pensions Act 2008. The Tribunal further concluded that personal service was a core requirement of the contract, one which contained no general substitution clause, and that the extent of the control was consistent with an employer-employee relationship for a senior employee alongside other strong indicators of a permanent employment relationship. The contracts also contained restrictive clauses that limited his ability to work for other companies in the same sector, a feature more commonly found in employment contracts than in contracts for service. 

This ruling provides a clear and detailed example of how a tribunal will look beyond the contractual terms to assess whether a person is an employee or a self-employed contractor. Employers cannot rely on a "contract for services" or a person's self-employed status to avoid the legal obligations of an employer. Instead, tribunals will scrutinise key factors such as the mutuality of the obligations, the degree of control, and the extent of integration in the business. Employers who treat long-term contractors like employees—providing them with a fixed monthly retainer, dictating their hours, and effectively integrating them into the business—risk having them reclassified as employees, and HR departments should ensure that contracts reflect the true nature of the relationship to avoid repercussions. 

Many business owners make decisions based on instinct, but intuition alone can be unreliable. Having timely, accurate management information replaces guesswork with insight and leads to stronger profitability.

Management information differs from year-end accounts because it focuses on what is happening now and what is likely to happen next. A short monthly report showing key performance indicators can reveal issues before they become serious. Typical measures include gross profit margin, average debtor days, overhead ratios and cash flow trends.

Modern accounting software provides real-time figures that allow you to spot changes early. For instance, if sales remain steady but margins start to fall, it may signal higher costs or increased discounting. Acting quickly can prevent these trends from eroding profits.

Regular review meetings, even if only quarterly, make these reports more valuable. Discussing results with us can identify opportunities to improve efficiency, adjust pricing, or strengthen cash flow. Small improvements made consistently can produce meaningful gains over time.

Good management information does not need to be complicated. What matters is clarity and regular review. Once you have the right information in place, decision-making becomes easier, more confident and more profitable.

Well-structured information is one of the best tools for improving business performance and we can help you make full use of it.

Every business faces unexpected challenges. Rising costs, supply delays, late payments and sudden changes in demand can all place pressure on cash flow. The businesses that cope best are usually those that have taken time to build financial resilience.

Resilience is not simply about holding large sums of cash. It is about planning ahead and understanding the numbers that drive the business. A simple but effective starting point is to maintain a rolling 12-month cash flow forecast. Updating this regularly helps you see when pressure points are likely to occur, so that action can be taken early rather than reacting when funds run short.

Another sound step is to build a small reserve fund. Setting aside a proportion of profits each month can create a buffer that covers at least three months of fixed costs. This can make all the difference when faced with a delayed payment or an unexpected expense.

Relationships matter too. Clear communication with suppliers and customers helps avoid surprises. If customers pay late, early contact and clear terms often improve recovery rates.

We also recommend using sensitivity analysis to test “what if” scenarios — for example, what if energy costs rise by 10% or a key customer pays two months late? Discussing these possibilities can highlight practical ways to strengthen your position.

A resilient business is one that can manage uncertainty with confidence and seize opportunities when others are forced to hold back.

Many people rely on state benefits, but it is not always obvious which payments are taxable and which are tax-free.

HMRC’s guidance outlines the following list of the most common state benefits on which Income Tax is payable, subject to the usual limits:

• Bereavement Allowance (previously Widow’s Pension)
• Carer’s Allowance or (in Scotland only) Carer Support Payment
• Contribution-Based Employment and Support Allowance (ESA)
• Incapacity Benefit (from the 29th week you receive it)
• Jobseeker’s Allowance (JSA)
• Pensions Paid by the Industrial Death Benefit Scheme
• The State Pension
• Widowed Parent’s Allowance

The most common state benefits that are not subject to Income Tax include:

• Attendance Allowance
• Bereavement Support Payment
• Child Benefit (income-based – use the Child Benefit tax calculator to see if you’ll have to pay tax)
• Disability Living Allowance (DLA)
• Free TV Licence for Over-75s
• Guardian’s Allowance
• Housing Benefit
• Income Support – though you may have to pay tax on Income Support if you’re involved in a strike
• Income-Related Employment and Support Allowance (ESA)
• Industrial Injuries Benefit
• Lump-Sum Bereavement Payments
• Maternity Allowance
• Pension Credit
• Personal Independence Payment (PIP)
• Severe Disablement Allowance
• Universal Credit
• War Widow’s Pension
• Winter Fuel Payments and Christmas Bonus

Your State Pension forecast shows how much you could receive, when you can claim it, and how to boost it by filling National Insurance gaps.

The Check Your State Pension forecast service provides a way to understand your State Pension entitlement. This is a joint service organised by HMRC and the Department for Work and Pensions (DWP) and is available to most individuals under State Pension age.

The forecast allows users to see:

• The amount of State Pension they could receive.
• The age at which they can start receiving it.
• Options for increasing their State Pension, such as by paying voluntary National Insurance contributions to cover any gaps.

The service also helps identify any shortfalls in National Insurance Contributions (NICs), enabling users to take action now to enhance future pension benefits.

To access the service, go to www.gov.uk/check-state-pension and sign in securely using your Government Gateway credentials. If you don’t have an account, you can easily create one. You may need to verify your identity using a photo ID, such as a passport or driving licence.

For added convenience, you can also check your pension forecast via the HMRC app, providing secure access on the go.

If you are already receiving or have deferred your State Pension, you’ll need to reach out to The Pension Service (UK) or the International Pension Centre (abroad). Regularly checking your State Pension status is important to help maximise your entitlement and to help assess any additional savings or pensions you may need for a comfortable retirement.