Recent media coverage has publicised the possibility of a new tax on people who leave the UK, calling it an “exit tax”.

This type of regime already exists in several countries, including France, Spain, Canada and Australia, and is now being discussed as a possible option for the UK Government to raise revenue.

What is an exit tax?

An exit tax in the UK would impose a levy, likely 20 per cent, on gains accumulated while a person was a UK tax resident.

Unlike Capital Gains Tax (CGT), which applies to assets when you sell them, a regime like this could mean assets, such as shares and property, could be treated as though they had been sold at the point a person leaves the UK.

Tax would then be calculated on the increase in value to date.

What is the current tax situation when you leave the UK?

Currently, individuals who leave the UK can typically dispose of assets after departure without incurring UK CGT, as long as they remain abroad for a minimum of five years.

However, a move towards a more immediate exit tax could have a consequential impact on those considering a change in residence, potentially restricting international mobility.

How could an exit tax affect you?

Business owners would need to take extra care because shareholdings in trading companies, growth shares and other long-term investments may carry unrealised gains.

An unexpected tax charge at the point of departure could prove challenging, particularly where assets are difficult to sell, as the individual may not have the cash available to settle the bill at that time.

What should you do now?

At this point in time, there is no certainty as to whether an exit tax will even be introduced or what it might entail, making it difficult to effectively plan.

However, the ongoing discussions serve as a reminder that decisions around residence, investment timing and business succession should be made carefully, with future implications in mind.

Professional advice can help ensure that long-term plans remain in tandem with your goals. Get in touch today to discuss your tax liabilities.

Small businesses have been given a reprieve, after Companies House confirmed that its plans to require the filing of profit and loss accounts from April 2027 are on hold.

A new update to official guidance confirms that the change will not go ahead on that date, with the reforms currently under review.

Companies House has said businesses will receive at least 21 months’ notice before any new implementation date is introduced.

Reforms under the Economic Crime and Corporate Transparency Act (ECCTA) 2023

The proposal had formed part of wider reforms under the ECCTA 2023, aimed at improving corporate transparency.

Under the original plans, micro entities would have been required to file both a balance sheet and a profit and loss account.

Meanwhile, small companies would have needed to submit a balance sheet, profit and loss account, directors’ report and, where relevant, an auditor’s report.

However, concerns were raised about whether the move struck the right balance between tackling economic crime and placing additional burdens on smaller businesses.

There was also a notable fear that it would make sensitive financial data public that could risk the competitive viability of smaller businesses.

As a result, the timeline has been paused by Companies House while the reforms are reconsidered.

Only a temporary reprieve for small business owners

For many small business owners, this will be welcome news, but it is only a temporary reprieve.

It is important not to see this as the end of the story. The reforms have only been delayed and not scrapped entirely.

A revised timetable could still bring profit and loss accounts into the public filing framework in the future.

Next steps for small businesses

Businesses should continue to keep their financial records in good order and maintain strong internal reporting processes.

Greater transparency remains a clear direction of travel for Companies House and HMRC, even if the pace of change has slowed for now.

We will continue to monitor developments closely and keep you updated as soon as further details are confirmed.

In the meantime, if you require any assistance with your Companies House responsibilities, please get in touch.

As the deadline for Self Assessment passes, new data from HMRC shows that taxpayers paid a staggering £325 million in fines and interest last year after failing to meet the 31 January deadline.

Recent analysis of HMRC’s publicly available statistics found that around 600,000 individuals were hit with penalties for filing or paying late, which serves as a clear warning to those who still have returns or payments outstanding.

Fines for late tax returns and payments

HMRC’s systems automatically issue a £100 penalty for missing the filing deadline, even if no tax is owed, with further fines issued if payment or filing of a tax return isn’t completed within certain time frames.

Fines for late filing are as follows:

Fines for late payments are as follows:

HMRC estimates that £8.7 billion of Self Assessment tax went unpaid in the 2023/24 cycle. This represents 12.5 per cent of the £69.6 billion it expected to collect for the year.

Across all taxes, around £44 billion is now overdue, with the vast majority already in line for formal debt collection.

Be prepared for Self Assessment

For many taxpayers, the real issue is a lack of preparation rather than an unwillingness to pay.

Underestimating a tax bill, poor record keeping or leaving everything until the last minute can lead to panic and costly mistakes.

Once penalties and interest start to accumulate, the situation can quickly spiral out of control.

Setting aside funds throughout the year and seeking advice well before the deadline can make a significant difference.

If you are unsure about your Self Assessment obligations or are worried about an existing liability, speak to us as soon as you can.

Companies House fees have increased from 1 February 2026, affecting both the cost of incorporation of new limited companies and many ongoing reporting requirements.

Many of the fees have increased substantially and it is important that you factor in these additional fees.

For example, the fee for incorporating a limited company is increasing as follows:

Similar increases are being made to the cost of the confirmation statement as follows:

The full list of fee increases can be found here.

Why are the fees changing?

Companies House has said that the increases are used to cover the cost of incorporating companies and support the publishing “of company information worth billions to the UK economy”.

It also confirmed that the additional funding would be used to support its enhanced powers under the Economic Crime and Corporate Transparency Act (ECCTA) 2023.

These allow Companies House to query and remove false and misleading information from its registers.

If you have any additional queries about the increase in Companies House fees, please get in touch.

The Autumn Budget 2025 has brought more changes to business rates and many businesses and property owners could be at risk of higher bills.

Businesses must know if they are affected and seek the right support so they can prepare for any unexpected pressure on their cash flow.

Is the business rates multiplier being reduced?

The Government confirmed that the annual business rates multiplier in England will decrease by between 11.7 per cent and 13.5 per cent.

While this may appear to be good news, most businesses are unlikely to see meaningful savings. Rising rateable values, along with new supplements, mean that many occupiers will be paying more.

The reforms will also introduce a temporary 1p increase in the multiplier in 2026/27 for properties that do not qualify for transitional relief.

What are the changes to Retail, Hospitality and Leisure (RHL) relief?

Retail, Hospitality and Leisure (RHL) relief will reduce again from April 2026.

Properties with a rateable value of up to £51,000 will receive around 20 per cent relief, while those between £51,000 and £500,000 will receive 10 per cent relief.

This follows on from a significant reduction from 75 per cent to 40 per cent in 2025/26.

While this may reduce the burden on larger occupiers who previously funded the relief, smaller businesses may feel the impact through tighter margins.

What does this mean for property owners?

Larger commercial properties with a rateable value above £500,000 will be faced with a super supplement, currently set at around 5.8 per cent.

There will be some protection as the transitional relief annual cap is increasing to 30 per cent.

However, the new Rating List being published late means businesses have limited time to budget.

What are the new cuts to pubs and music venues?

Following backlash from the 2025 Budget, the Government has announced that pubs and live music venues will now get a 15 per cent cut to the new business rate bills from April 2026.

This cut will be frozen for two years and a review will also be conducted on the method used to value them for business rates.

How can we help you prepare?

Businesses should be reviewing their projected rateable values and factoring business rates into their cash flow forecasts.

You must know if you are eligible for reliefs and transitional support and seek advice if you are unsure about how the business rates will affect you.

We can help support your budgeting plans so you can make informed decisions come April 2026.

For further guidance or advice, contact our team today.

From April 2026, the Employment Rights Act will come into effect, bringing reforms to Statutory Sick Pay (SSP) that will affect every employer.

It will change how SSP is calculated and create new responsibilities for employers.

What are the changes to SSP?

One of the biggest changes is the removal of the three waiting days within current legislation. SSP will instead become payable from the first day of sickness, rather than from day four.

This means employers will need to pay SSP for short absences that may have previously gone unpaid.

The Lower Earnings Limit (LEL) will also be abolished and part-time, low-paid and casual workers will now qualify for SSP.

How SSP is calculated will also change and the payment rate will be the lower of:

• 80 per cent of Average Weekly Earnings (AWE)
• The standard SSP flat rate, which is rising to £123.25 per week

SSP will still be based on average weekly earnings, usually calculated over the eight weeks before the sickness absence.

If your employee is already receiving SSP before 6 April 2026, transitional protections will apply.

This protection lasts for the remainder of their 28-week entitlement, provided they do not return to work or end their contract beforehand.

How should employers prepare for SSP changes?

These changes will bring additional responsibilities to your payroll teams and you must start planning now.

This includes:

• Reviewing sickness absence policies to reflect day-one SSP
• Updating contracts and handbooks on waiting days or earning thresholds
• Checking payroll systems can handle percentage-based SSP calculations
• Budgeting and forecasting costs, as more employees will qualify for SSP
• Communicating clearly with employees so new obligations are met

How can we support you?

Our payroll specialists can help you model the financial changes to SSP and make sure your systems and calculations are compliant.

We can also review your policies and help reduce the risk of costly payroll errors.

For further guidance or advice on the SSP changes, contact our team today.

From April 2027, all UK employers will be required to payroll Benefits in Kind (BiKs) rather than reporting them through the traditional P11D process.

While this may feel a long way off, businesses should start preparing now so that their payroll remains compliant and employee benefits are taxed accordingly.

What changes will BiKs bring?

Payrolling BiKs means that taxable non-cash benefits, such as company cars and private medical insurance, will now be processed through payroll in real time rather than calculated and submitted annually.

These changes will reduce year-end admin for employers and provide a clear, up-to-date view of which employees are receiving which benefits.

What employers need to know

The move towards real-time reporting will affect how businesses offer staff benefits, particularly those with complex packages or with many employees receiving taxable benefits.

The main considerations include:

• Technology readiness – Payroll systems must process benefits alongside salaries accurately
• Data integration – HR and payroll teams must work together seamlessly
• Employee communication – Staff must be informed about the payroll changes and their impact
• Compliance – Incorrect calculations can create risks that are harder to correct in real time

How can employers prepare?

Employers must use the next year to assess which benefits are reported via P11D and whether their payroll system can handle real-time reporting.

Clear communication with your payroll providers can help confirm that you are ready to support payrolling BiKs and understand what additional data or system changes are required.

To reduce the risk of errors, employers may look to invest in technology and training to ensure staff who are responsible for payroll and benefits fully understand their roles and can process them accurately each month.

How to stay compliant with BiK?

Preparing for payrolling BiKs is crucial and salary sacrifice arrangements and consistent monthly calculations must be considered to avoid underpayment of tax.

With the right financial advice, you can streamline processes and ensure your payroll and benefit strategies remain compliant and efficient.

For help reviewing your payroll system and identifying potential risks for BiKs, contact our team today.

Recent research from the Chartered Institute of Credit Management (CICM) has revealed that 82 per cent of SMEs have faced cash flow difficulties.

For many small businesses, periods of high activity can be followed by quieter months that place pressure on finances.

While a business may look profitable on paper, poor cash flow management can quickly cause problems that could even lead to insolvency.

Why are SMEs continuing to struggle?

Cash flow determines whether your business can pay suppliers, meet payroll, cover tax liabilities and face unexpected costs.

When cash flow is healthy, businesses have the flexibility to invest and take advantage of new opportunities to grow.

However, when it is under strain, business owners may rely on short-term borrowing or delay payments, which can be a difficult cycle to break.

Late payments are one of the biggest culprits for SMEs struggling and it can just take one or two delayed invoices to stretch cash reserves.

Growing businesses can feel this even more as expansion usually means hiring staff or buying equipment long before income catches up.

How to prepare your cash flow?

Preparation is essential to avoiding a cash flow crisis. Invoices should be issued promptly, clear payment terms should be set and a consistent debt collection process should be put in place.

Many businesses can benefit from accounting software that automates invoices and reminders, while offering alternate payment methods can make it easier for customers to pay on time.

Regular cash flow forecasting can help you spot any potential shortfalls and budget spending for the quieter months.

Reviewing costs and cutting non-essential expenses during slower periods can also ease pressure on cash reserves.

If you are really struggling, external finance such as invoice finance or an overdraft facility can help bridge short-term gaps, especially when customers have long payment terms.

Prepare your finances now

Cash flow is one of the toughest parts of running a business, but early financial advice can help you set up more resilient systems and make informed decisions.

Our expert team can help strengthen your cash flow and build a cash flow reserve for when your business faces unexpected expenses or downturn.

For expert advice on keeping your cash flow healthy, contact our team today.