Category Archives: Latest News

Failure to prevent fraud – Are you at risk of this new offence and how can better accounting and audits help?

As the Government continues to put preventative fraud measures in place, it is essential that companies and Limited Liability Partnerships (LLPs) understand any changes that impact them.

In September, a new regulation was introduced as part of the Economic Crime and Corporate Transparency Act 2023 that puts pressure on large companies to proactively ensure their fraud procedures are up to standard.

What was introduced?

The new failure to prevent fraud corporate offence will see companies and LLPs classed as committing fraud if any person associated with the company, such as an employee, agent, subsidiary or contractor, becomes involved in fraudulent activity that benefits the company.

The introduction of the law also covers what is deemed fraudulent behaviour, including:

  • Fraud by false representation
  • Fraud by failing to disclose information
  • Abuse of position
  • False or inaccurate accounting
  • Fake trading and cheating public revenue
  • Participating in any form of fraud

These offences carry major fines, as the amount handed to companies is unlimited and, while companies may not be found guilty of the primary offence, the reputational damage can be significant.

What can companies do to manage any fraud concerns?

The best approach to managing any fraud challenges is to ensure your accounting and auditing processes are robust enough to spot any concerns and give you the ability to address them.

Organising your accounts allows you to understand your financial position and check all incoming revenue and outgoing expenditure.

It also allows you to spot any suspicious activity and immediately investigate to find out the source of the problem.

Regularly conducting financial audits, like organising your accounts, gives you the ability to build a better picture of your company’s finances.

Auditing allows you to spot signs of fraud and improve your internal controls. Both accounting and auditing help you meet your compliance obligations.

Having effective procedures helps you manage fraud challenges confidently and protect your business.

For support ensuring your accounts and auditing prevent fraud, contact us today.

Pensions and tax: Ongoing reform and its impact on tax-efficient saving

The Autumn Budget confirmed that pensions and tax-efficient saving are entering a period of sustained and important change.

Reforms to salary sacrifice, ISAs and the growing focus on unspent pensions all make it harder to build and pass on wealth tax efficiently.

For savers, business owners and higher earners, the changes that are being introduced over the next few years need to be understood and planned for.

Salary sacrifice under pressure

From April 2029, both employer and employee National Insurance contributions will be charged on pension payments made via salary sacrifice above £2,000 a year.

Contributions up to that level stay as they are, but anything above it will be treated like normal pay for NIC purposes.

Salary sacrifice has long been a mainstay of tax-efficient saving, helping individuals reduce Income Tax and NICs, while boosting pension pots and, in return, allowing employers to cut their own NIC bill.

The new cap will particularly affect higher earners and those in generous salary sacrifice schemes. It may push employers to rethink how they structure their reward strategy.

ISA reform

Although not immediately obvious, the reforms to ISAs are also likely to affect tax-efficient retirement planning.

From April 2027, the annual ISA cash allowance falls to £12,000, although the overall ISA limit of £20,000 remains.

To use the full allowance, up to £8,000 will need to go into stocks and shares ISAs.

This nudges savers towards investment risk and increases the relative importance of pensions as a long-term savings vehicle, especially alongside tighter rules on salary sacrifice.

Unspent pensions and Inheritance Tax

Pensions are increasingly used for intergenerational wealth planning because, in many cases, they sit outside the estate for Inheritance Tax (IHT) purposes.

The freeze on IHT thresholds to 2031 will pull more families into the IHT net.

Whilst pensions were once seen as an effective method of protecting long term wealth, the decision in the 2024 Autumn Budget to include unspent pensions from 2027 means that careful consideration is needed when building up a larger pension pot.

This change, along with this extended IHT band freeze, is likely to bring in many more estates in the years to come.

Planning your next steps

Taken together, these moves reduce reliance on traditional tax shelters and make smart planning more important than ever. Now is a good time to review:

  • How much you contribute to pensions
  • Your estate planning and use of pensions in succession
  • Any employer schemes or remuneration structures you rely on

If you would like to review your tax position in light of these changes to retirement planning, speak with our tax team today.

Working capital loans: A sign of the times or a useful support mechanism?

A recent report by Purbeck revealed that more than a third of SME loans agreed in October supported day-to-day cash flow – the highest level since early 2025.

The latest Barclays index shows that more than half of SMEs have paused spending due to weakened confidence.

Insolvency is also on the rise, with more than 2,000 companies entering liquidation in October 2025.

All of these figures illustrate the pressure created by rising costs and continued uncertainty.

The focus for business owners has now seemingly shifted from growth to keeping operations steady.

Growing loan values

Average SME borrowing has reached levels far above last year. Data from Q3 shows an increase of more than 40 per cent, with typical loans approaching £300,000.

Young firms have taken even larger steps, with average loans rising more than 60 per cent.

Purbeck also reported increased reliance on personal guarantee backed loans, leaving owners with higher personal exposure at a time when confidence is fragile.

The benefit of working capital loans

Working capital loans provide the funds firms need when they face late payments or seasonal dips.

These loans help companies cover wages, suppliers and routine overheads without disrupting daily operations.

Short-term borrowing works best when it supports clear, planned decisions rather than when it tries to fix urgent issues.

Anyone considering working capital loans can benefit from professional guidance before proceeding.

A sign of the times and a useful mechanism

Current demand reflects the pressure facing UK SMEs.

Working capital loans have become part of everyday business life for many firms and, when used sensibly, they can create room to plan for the future.

Speak to us before taking on new borrowing to be sure it fits your wider financial strategy.

Personal Tax freeze – The impact of fiscal drag

The Chancellor, Rachel Reeves, has confirmed her plans to extend the Income Tax threshold freeze.

The original end date of 2028 has now moved to the 2030/31 tax year forcing many into higher tax bands as wages rise.

What are the current thresholds?

As it stands, the Income Tax rates are as follows:

  • Up to £12,570 = 0 per cent
  • £12,571 to £50,270 = 20 per cent
  • £50,271 to £125,140 = 40 per cent
  • Over £125,140 = 45 per cent

For those with income above £100,000, the personal allowance reduces by £1 for every £2 of income above that level.

By the time income reaches £125,140, the personal allowance is no longer applicable.

What does freezing Income Tax do?

Until 2021, thresholds rose each year roughly in line with inflation, which helped prevent tax bills rising with inflation as incomes increase.

However, the combination of this threshold freeze and rising National Minimum Wage (NMW) and National Living Wage (NLW) means that some taxpayers will find themselves dragged into tax for the first time and others into higher tax brackets.

Over time, take-home pay may grow slowly even if gross pay rises.

Who is affected the most by the Income Tax freeze?

Those earning moderate salaries and getting regular pay rises feel it first.

People on minimum wage or part-time hours who previously paid no tax may begin to pay Income Tax.

Higher earners face quicker erosion of their tax-free allowance and larger portions of their income taxed under higher bands.

Inheritance Tax (IHT) freeze extended

The IHT nil-rate band has also been frozen at £325,000 until 2031, along with the £175,000 residence nil-rate band – a year longer than anticipated.

As property values continue to increase year by year in many UK regions, more estates are likely to be liable for IHT as a result.

What should you do now?

A review of pension contributions can help limit Income Tax exposure. Estate plans should also be revisited to reflect rising asset values and longer-term IHT risk.

Speak to us today to review your personal tax position.

How to prepare for the Autumn Budget’s changes to APR and BPR

Last year’s Autumn Budget hit business owners hard with the announcements of changes to Agricultural Property Relief (APR) and Business Property Relief (BPR).

The new Inheritance Tax (IHT) rules, set to take effect from April 2026, could create substantial tax liabilities, especially where assets are handed down through generations.

Farmers, business owners and AIM investors are amongst those most affected by these upcoming changes and assessing your estate planning has never been more important.

With further changes to these reliefs announced in the Chancellor’s latest speech, now is the time to prepare.

What changes has the Autumn Budget brought for APR and BPR?

During her speech, the Chancellor confirmed that any unused £1 million allowance for the 100 per cent rate of APR and BPR will be transferable between spouses and civil partners, even if the first death was before 6 April 2026.

This is set to match the relief the transferable IHT nil-rate band offers and eases concerns for families who feared losing part of their relief entitlements.

However, the reforms also mean that any value above the £1 million threshold will still only receive 50 per cent relief.

This will create a 20 per cent IHT charge where the combined thresholds – nil-rate band, residence nil-rate band and APR/BPR – are exceeded. For a couple, this means that they have an effective threshold of up to £3 million.

For some people, this brings a significant change to their estate as business and agricultural assets were commonly held under the assumption they would pass tax-free upon death.

How may these changes affect you?

Many individuals now have limited time to review their Wills or consider whether lifetime gifting might be appropriate to distribute the estate in advance of their passing.

The lack of additional measures means that anyone relying on the traditional approach of passing assets upon death may be at risk of unexpected tax liabilities.

Families dealing with incapacity or outdated Wills may have challenges updating their affairs in time before April 2026.

To protect your family wealth, it is important to seek professional help when assessing how the new APR and BPR limits will affect you.

Our specialist team can advise you on your estate planning options and assess further business assets and partnerships.

Do you want to know if the new APR and BPR changes affect your estate? Speak to our team today.

Will your festive spirits be dampened by tax liabilities? How trivial benefits impact your business

The festive season is rapidly approaching and it is natural to want to treat your employees.

Unfortunately, even small gifts can have implications for your tax and National Insurance Contributions (NICs), so you should understand the implications of any kind gestures.

We are no Scrooge as we want to help you understand how to spread festive cheer while staying tax-efficient.

What are trivial benefits in kind?

Trivial benefits are small, non-cash gifts or perks given to employees.

In order for benefits to qualify as trivial, they must meet the specific requirements from HMRC.

The gift must:

  • Cost £50 or less
  • Not be cash or a cash equivalent (like gift cards exchangeable for cash)
  • Not be a reward for work or performance
  • Not be part of an employee’s contractual benefits
  • Not replace salary or bonuses

The most common examples of trivial benefits include seasonal gifts like a hamper or wine but can also include flowers or theatre tickets.

Directors can also receive trivial benefits, but these cannot have a combined worth of more than £300 per tax year.

What are the tax liabilities of trivial gifting?

Trivial benefits tend to be extremely tax-efficient as, if they meet the HMRC requirements, they are completely exempt from tax and NICs.

There is currently no need to report qualifying gifts to HMRC and they do not need to be listed on your P11D form.

It is important to declare any gift that does not fall within the criteria, as this will need to be recorded in the same way as other benefits and you will need to pay any tax or NICs owed.

If you are paying tax on employee benefits through your payroll, filing P11D forms is not required.

However, you will still need to submit a P11D(b) to pay any Class 1A NICs due.

You should track your trivial benefits to ensure that they meet the criteria and you remain compliant.

We can help you manage your obligations so your festive cheer does not turn sour.

To incorporate tax-efficient gifting into your business strategy, please get in touch with our team.

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.

For tailored advice on selling a probate property or navigating estate tax obligations, speak to our experienced team today.

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.

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.

Get in touch with our team if you are concerned about the risk of fraud to your business, including digital wallet abuse.