The hotly anticipated Companies House 2025-2030 strategy has been unveiled.
Author Archive: Muhammad Zia
HMRC issues important tax warning to employers
HM Revenue and Customs (HMRC) has begun briefing businesses and recruiters on the importance of avoiding fraudulent payroll tax credit schemes that claim to help reduce employment taxes.
Selling a probate property: The tax and reporting responsibilities
Selling a home after someone has passed away can be challenging both emotionally and administratively.
Alongside the legal process of probate, executors must also navigate a series of tax obligations that affect how and when the estate can distribute assets.
As property values continue to rise, more estates are being drawn into the scope of Inheritance Tax (IHT) and the tax treatment of a probate property sale has become one of the most important considerations for families.
This quick guide explains the key financial and reporting duties involved so that executors understand their responsibilities and avoid unexpected HMRC issues during the sale.
Why probate matters for tax and property sales
Probate is the legal authority that allows an executor (or administrator if there is no Will) to manage a person’s estate. Until the Grant of Probate is issued, the property normally cannot be sold or transferred.
For tax purposes, the value of the property as at the date of death is essential. This figure helps determine whether the 40 per cent rate of IHT is due or not.
IHT will only typically be due if the value of a person’s entire estate exceeds the nil rate band and residence nil-rate band.
Combined these thresholds give an individual an effective tax-free allowance on £500,000, which increases to £1 million were one spouses allowance is passed to their partner after they die.
Executors must ensure that the valuation is accurate, as HMRC can challenge figures that appear too low.
If the property was co-owned, the position can differ depending on whether ownership was as joint tenants or tenants in common, which affects how the deceased’s share is taxed and passed on.
Inheritance Tax: What executors need to know
IHT is one of the biggest financial considerations when selling a probate property. As IHT thresholds remain frozen until 2030, more estates are now required to report and pay tax.
What you need to consider for IHT on probate property:
- IHT must normally be paid within six months of the date of death, even if the property has not yet been sold
- IHT on property can often be paid in instalments, although interest is charged by HMRC
- Once the sale completes, any outstanding IHT must be settled in full
- Executors must submit the correct IHT return, even if no tax is due
Because IHT deadlines continue even while probate is pending, some families choose to use short-term financing, such as a probate bridging loan, to avoid interest charges or cashflow difficulties. It is important to seek specialist advice before taking this step.
Capital Gains Tax: When it applies
If the property sells for more than the date-of-death value, the estate may make a capital gain.
Capital Gains Tax (CGT) may be payable by the estate, although executors benefit from a limited CGT allowance during the period of administration. Accurate valuations and sale records are vital for reporting gains correctly.
Estate tax returns and reporting responsibilities
Executors are responsible for ensuring the estate’s tax affairs are up to date. This may include:
- Completing IHT205 or IHT400 forms depending on the complexity of the estate
- Filing an estate tax return if the estate receives income or makes gains during administration
- Reporting and paying any CGT due on the property sale
- Ensuring IHT is fully paid before distributing funds
Mistakes or delays in reporting can lead to penalties from HMRC, so professional guidance is advisable.
Common challenges when selling a probate property
Selling a probate property involves more obligations than an ordinary sale. Executors must ensure they meet their duties to both the beneficiaries and HMRC, which can create pressure at an already difficult time.
Typical challenges include:
- Proving market value for IHT purposes
- Managing IHT payments before the property sale completes
- Meeting reporting deadlines while waiting for probate
- Balancing beneficiaries’ expectations with legal duties
- Ensuring the property is insured and secure during the administration period
Because executors must sell at market value, selling below that figure can lead to disputes or accusations of mismanagement.
How long does the process take?
Probate applications now take around 16 weeks or longer, even for straightforward estates.
Executors should apply as early as possible to avoid delaying the sale. While there is no fixed period for completing administration, executors are encouraged to distribute the estate within the executor’s year, provided all tax liabilities are settled.
Supporting you with the tax and legal process
Selling a probate property involves managing tax, legal paperwork and the expectations of beneficiaries at a highly sensitive time.
Once probate is granted, many buyers find these properties attractive because they are often chain free, but the journey to completion still requires experienced oversight.
We can guide you through every stage of the process, from the tax reporting requirements to the legal conveyancing.
Whether you need help with IHT, estate tax returns or managing the sale, our team is here to support you.
Client Spotlight: Age UK Blackburn with Darwen
For many years, we have had the privilege of supporting Age UK Blackburn with Darwen, a charity that has been a lifeline for older people in the community since 1976.
Their commitment to improving later life is clear in the breadth of services they provide and the positive impact they have across the region.
As a proud member of the Age England Association, the charity works alongside partners nationwide to ensure older people can enjoy independence, connection and a fulfilling later life. Their mission is rooted in dignity, wellbeing and community support, and we are proud to play a small part in helping that mission thrive.
Age UK Blackburn with Darwen delivers an impressive range of services designed to meet the diverse needs of older people in the area. These include:
- Advice and information, delivered both in the office and through outreach
- Healthy lifestyle sessions, from exercise to IT support
- A dedicated footcare service
- Day care provision
- Befriending and Phonelink services to support those at risk of isolation
The charity also runs a host of activities to keep people connected and active, including:
- Ten pin bowling
- Walking football, netball and tennis
- Regular walking groups
- Yoga
To continue offering these essential services, the charity relies on the generosity of individuals, businesses and local organisations.
Fundraising comes through donations, community events, their Darwen charity shop and local grants, which all play an important role in sustaining their work.
Here is what Age UK Blackburn with Darwen had to say: “It has been a pleasure to work with Nick, Alison and the team from Rotherham Taylor for several years. Their work is excellent and they happily answer all our questions. I would recommend them to any charity.”
We are proud to support such a dedicated organisation and celebrate the incredible work they do for older people across Blackburn and Darwen.
Making payments simpler with Stripe
For businesses looking for a fast and reliable way to take payments, Stripe continues to be one of the most versatile tools on the market, which is why it is our latest app of the month.
Whether you trade online, run a subscription service or manage invoices, Stripe offers a clean and seamless payment experience that benefits both you and your customers.
What makes Stripe stand out is how easily it integrates with popular accounting platforms like Xero.
This connection removes the need for manual data entry and gives you real time visibility over key financial information.
Every payment, refund and fee is automatically synced, meaning your books stay accurate with far less effort.
Why we rate Stripe
- Quick and secure card payments
- Automatic syncing with Xero for smoother bookkeeping
- Clear, simple reporting so you always know how the business is performing
- Easy reconciliation with invoices and bank statements
- Support for recurring payments and subscriptions
With Stripe and Xero working together, you can see income as it lands, monitor trends and make informed decisions without sorting through paperwork or spreadsheets.
It is a powerful combination for any business looking to save time, reduce errors and improve cashflow visibility.
If you would like help setting up Stripe or connecting it to your accounting software, our team is always happy to guide you through the process.
How to make sure your Christmas earnings are tax-compliant
As the festive season approaches, many talented makers are turning their creative skills into a little extra income.
The importance of effective accounting and bookkeeping procedures for SMEs
An essential element of running a small or medium-sized business is being able to confidently manage its finances by having effective accounting and bookkeeping processes in place.
The signs of digital wallet abuse you need to look out for
Digital wallet abuse is on the rise as criminal networks continue to exploit individuals and businesses for their own selfish gains.
In 2024, over 2.5 million cases of remote purchase fraud were recorded, so it is important that you can spot signs of digital wallet fraud and put measures in place to protect yourself, your business and your customers.
How do criminal networks exploit digital wallets?
Criminals will steal card details and add them to apps like Apple Pay and Google Pay without the cardholder’s knowledge.
From there, they can bypass the standard banking checks and complete purchases and cash-outs.
They will look to exploit the verification process that links a card to the digital wallet, as many banks and apps will ask for a One-Time Passcode (OTP). Their objective is to try and obtain that OTP.
They will use methods, such as phishing, malicious online adverts, social media content and social engineering, to manipulate unsuspecting victims into providing OTPs.
Once they have the information required, they will begin to take advantage of and use the funds and details they have gained illicitly.
What can be done to reduce the risk of digital wallet fraud?
One of the best approaches to reduce the risk of digital wallet fraud is not receiving an OTP via SMS.
Criminals see SMS as a golden opportunity to obtain the information they need through social engineering and SIM swapping.
However, if this option is removed, the risks of digital wallet abuse reduce drastically, with many banks reporting very few digital wallet cases.
If your business, firm or your clients are using SMS based OTPs, you should consider removing this to protect your data.
Other ways you can reduce the risk are to educate yourself and your clients on exactly what digital wallet abuse is.
Preparing for Plan 5: The newest student loan payment structure
Students who started their undergraduate and advanced learner loan courses on or after 1 August 2023 will fall into the new Plan 5 payment plan bracket.
From April 2026, students who fit in the Plan 5 criteria will begin repaying their student loan, which is why it’s important you understand the new plan and how it will work.
How will the new Plan 5 payment structure work?
The Plan 5 payment structure will have three specific thresholds and if an employee’s income matches those, they will be required to start paying off their student loan.
The thresholds for Plan 5 are £25,000 per annum, £2,083 per month and £480 a week. If any are met, loan payments will be automatically deducted from their pay.
Should your income fall below the thresholds in place, the Student Loans Company (SLC) will automatically stop taking payments.
Once they return to that threshold, the SLC will begin to take payments once again.
How will employees be charged?
Under Plan 5, there will be a nine per cent charge on their income, which is collected through their payroll or via Self Assessment, if they are classed as self-employed.
Should they receive a pay increase, for example, this will be reflected in the figure collected.
So, if they are in the Plan 5 bracket and earn £28,000 per annum, they can expect a deduction of £22 per month to be taken out to pay student loan costs.
If their pay were to increase to £31,000 per annum, the monthly deduction would increase to around £45 per month to reflect the salary increase.
How we can help
Whether you are an employee or an employer, you need to understand the new payment structure taking effect and our team is here to advise and help.
We can talk you through all the student loan categories, including Plan 5 and help you put measures in place to manage the changes coming into effect.
The UK’s residency rules explained – Six months on from the change
In April 2025, the UK’s ‘non-domicile regime’ was replaced with a new set of rules centred around an individual’s tax residency, taking in factors like an individual’s links to both the UK and other countries and trust structures they are connected to.
What was introduced?
A new four-year Foreign Income and Gains (FIG) regime has been introduced, which allows UK tax residents to be exempt from most forms of foreign income and gains from these taxes during their first four years as a UK tax resident.
The FIG regime is accessible for any individual provided they have been a non-UK tax resident for at least ten consecutive years before the first of the four-year regime kicks in.
If you do make a claim, the years you make a claim for will see you lose some tax allowances and the ability to deduct any foreign losses from taxable gains.
It’s important to note that the regime doesn’t automatically take effect, so you need to check before you apply.
You have the option to choose which of the four years to claim and all foreign income must be reported to HMRC, whether you claim the relief or not.
Have trust structures changed?
The changes announced also impact trust structures for non-UK residents, because the protected status on those trusts has been removed.
This means the scope for taxation has been increased significantly for the settlor.
While this is primarily a concern for non-UK resident trusts with living tax settlors in the UK, the extent of the exposure will be determined by several factors.
These factors include:
- The beneficial class of the trust
- The investment profile
- Whether the settlor is eligible to claim the four-year FIG regime.
Inheritance Tax (IHT) liabilities may also increase as a result.
For discretionary trusts, your residency status will determine whether IHT applies, although this will be unchanged if a settlor passes away before the rules came into effect on 6 April 2025.
If you have international connections and are unsure about the new regime, our team can help.
We can explain the new legislation and help you map out a plan to manage the changes.
Contact us if you need tax advice on the new residency rules.
