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If your business has transitional profits from basis period reform, spreading over five years may reduce the cash flow impact, but it is important to understand the deadlines. The self-employed basis period reform has changed the way trading income is allocated to tax years. Under these reforms, the basis of assessment moved from a current year basis to a tax year basis. As a result, all sole traders and partnership businesses are now required to report their profits on a tax year basis. This change fully came into effect from the...

With the balancing payment and first payment on account both due on 31 January 2026, it is worth checking your options early if funds are tight. The final balancing payment for the 2024-25 tax year is due by 31 January 2026, which is also the deadline for filing your self-assessment tax return. This payment will settle any remaining tax owed for the year after taking account of payments on account already made. In addition to the balancing payment, many self-assessment taxpayers will also have a first payment on account for the 2025-26 tax...

CGT on certain UK residential property sales often has a strict 60-day reporting and payment deadline, so early planning can avoid penalties. If you are selling a second property, such as a buy-to-let or a former home that is no longer your main residence, CGT will usually apply. This is different from selling your main home, which is often covered by Principal Private Residence (PPR) relief and therefore exempt from CGT. The annual exempt amount applicable to Capital Gains Tax (CGT) is currently £3,000. CGT is normally charged at a simple...

If one partner earns under £12,570, you could transfer part of their unused personal allowance and cut your tax bill by up to £252 a year. The Marriage Allowance applies to married couples and civil partners where one partner does not pay Income Tax, usually because their income is below the personal allowance. For the 2025-26 tax year, this means the lower-earning partner must earn less than £12,570. The allowance means the lower-earning partner can transfer up to £1,260 of their unused personal allowance to their spouse or civil partner....

There are a number of annual payroll reporting issues that employers are required to complete. With the tax year ending on 5 April 2026, this means there are several key payroll reporting chores that will need to be considered over the coming months. One of the main requirements is submitting a final PAYE return for the tax year. The final Full Payment Submission (FPS) must be sent to HMRC on or before employees’ final payday in the 2025-26 tax year to ensure payroll records are correctly closed for the year. Employers must also remember to...

If your company profits sit between £50,000 and £250,000, marginal relief can soften the jump from 19% to 25% Corporation Tax. The Corporation Tax main rate applies to companies with taxable profits above £250,000 and is currently set at 25%. Companies with profits of up to £50,000 are subject to the Small Profits Rate, which remains at 19%. For companies with profits falling between £50,000 and £250,000, marginal relief applies. This creates a gradual increase in the effective rate of Corporation Tax between the small profits and main rates,...

The Chancellor, Rachel Reeves has confirmed that she will deliver the Spring Statement to the House of Commons on Tuesday, 3 March 2026. The Spring Statement is used to give an update on the state of the economy and will respond to the economic and fiscal forecast published by the Office for Budget Responsibility (OBR). The Spring Statement also presents an opportunity for the government to publish consultations, including initiating early-stage calls for evidence and consultations on long-term tax policy issues. The OBR has executive...

The High Court recently ruled on the interpretation and enforceability of "discretionary" bonus provisions in employment contracts. Mr. Gagliardi brought a breach of employment contract claim against a former hedge fund which had contracted him as a senior portfolio manager. The contract in question included a salary, a sign-on payment, a new-issue bonus, and a discretionary bonus based on profitable revenues. Mr. Gagliardi was specifically recruited by the CEO to expand into the US market owing to his expertise in block trading and his...

When a small business applies for a bank loan, the bank is mainly trying to answer one question, “How likely is it that we will be repaid, on time and in full?” To reach that decision, they will review a mix of financial evidence, trading performance and the overall risk profile of the business. A key factor is affordability. Banks will look at recent accounts, tax returns (where relevant) and up to date management figures to see whether profits and cash flow can comfortably cover the proposed repayments. They will often request...

A person’s credit rating (often referred to as a credit score) is a measure used by lenders to assess how reliably someone manages borrowing and financial commitments. It can affect whether credit is offered at all, the interest rate charged and even the size of deposit required for certain products. Although each lender uses its own scoring system, most look at similar underlying factors. One of the biggest influences is payment history. Missing payments on credit cards, loans, overdrafts, mobile phone contracts or buy now pay later...