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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...

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...

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...

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...

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...

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...

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....

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?...

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...

Paying Corporation Tax? Always use the correct reference or risk delays and penalties. To pay Corporation Tax via online or telephone bank transfer, you can use either a UK or overseas bank account. UK Bank Accounts You can transfer funds using Faster Payments, CHAPS, or Bacs, either online or by calling your bank. Faster Payments usually reach HMRC on the same or next day (including weekends), CHAPS payments arrive the same working day if made within your bank’s cut-off time, and Bacs payments typically take up to 3 working days. Use the...