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The VAT treatment of car leasing is an important consideration for businesses that incurs VAT on these costs. In general, leasing companies are able to recover the VAT incurred on the purchase of cars, provided the vehicles are leased out at a commercial rate. For businesses leasing a car, however, the position is more restrictive. Where a business leases a 'qualifying car' for business use, only 50% of the VAT on the lease payments is typically recoverable. This restriction reflects an assumed element of private use, even if the car is mainly...

If you have not yet checked whether you need to use Making Tax Digital (MTD) for Income Tax, now is the time to urgently see if you are affected. The Income Tax reporting requirements for some self-employed individuals and landlords will change significantly from 6 April 2026. MTD for Income Tax changes the traditional annual self-assessment process to a new digital record-keeping and quarterly updates process submitted through recognised software.From April 2026, those with qualifying income over £50,000 will be required to maintain digital...

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 figures remain the same for the upcoming 2026-27 tax year.The allowance allows the lower-earning partner to transfer up to £1,260 of their unused personal allowance to their spouse or civil partner. This transfer is only permitted if the recipient is taxed at no more than the...

Rolling over capital gains can be an effective way for business owners to defer Capital Gains Tax (CGT) when selling or disposing of certain business assets. This is done using Business Asset Rollover Relief which allows taxpayers to postpone the tax on gains if all or part of the proceeds are reinvested in new business assets. Essentially, the gain on the old asset is “rolled over” into the cost of the new asset, with any CGT liability deferred until the new asset is eventually sold.If only a portion of the sale proceeds is used to purchase...

The 7-year gift rule is still an available option for those making lifetime gifts, offering a way to potentially reduce Inheritance Tax (IHT) liability. Most gifts made during a person’s lifetime are not immediately subject to tax. These transfers, known as 'potentially exempt transfers' (PETs), become fully exempt if the donor survives for more than seven years after making the gift.If the donor dies within three years of the gift, the transfer is treated for IHT purposes as if it were made on death. A tapered relief applies if death occurs...

When a new employee joins your payroll, it is the employer’s responsibility to ensure they are aware of their rights and that the correct tax is deducted from their salary. This responsibility also applies when employing young people in your business.You can employ young people from the age of 13, but special rules govern how long they can work and the types of work they can perform. Once someone turns 18, they are classed as an adult worker, and different employment rules then apply. Young workers and apprentices also have different National...

Tensions in the Middle East have increased concerns about potential disruption to global oil supplies. Even where physical shortages do not arise, uncertainty can still push up fuel prices and increase operating costs for UK businesses. Planning ahead can help reduce exposure to rising costs and protect margins. Simple changes can reduce fuel consumption without affecting productivity. Reviewing delivery routes, combining journeys and using remote meetings where appropriate can reduce mileage. Businesses operating fleets may benefit from...

Cash flow remains one of the most significant challenges facing small businesses in the UK. Even profitable businesses can encounter difficulties if income is received later than expected or costs increase unexpectedly. The timing of cash movements is often more critical than overall profitability, particularly where businesses operate with limited financial reserves. A common issue arises where customers take longer to pay invoices. Extended payment terms can place pressure on working capital, especially where businesses must continue to meet...

A Companies House blunder has raised concerns after a flaw in the WebFiling service briefly exposed sensitive company data. The issue, identified on 13 March 2026, meant that a logged-in user could potentially access and amend limited details of another company by carrying out a specific sequence of actions. Companies House has stated that this system vulnerability was not available to the general public. Only users with authorised access codes who were already logged into the system could have exploited it. Nevertheless, the nature of the...

If you are concerned by the continuing pressures on your take-home pay and need some certainty on your Income Tax liability, the HMRC calculator available at https://www.gov.uk/estimate-income-tax can be helpful. Alternatively, if you believe you may have overpaid tax, reviewing your position could help you claim a refund. The 'Estimate your Income Tax' service allows employees to calculate how much Income Tax and National Insurance they are likely to pay for the current tax year (6 April 2025 to 5 April 2026). It is particularly useful for...