HLAS

The Organisation for Economic Co-operation and Development (OECD) has scaled back its outlook for UK economic growth in 2025, cutting its forecast from 1.4% to 1.3%. The revision reflects concerns over rising government debt interest payments and increased trade barriers—particularly with the United States. In its assessment, the OECD highlighted that the UK’s public finances allow little room for unexpected challenges. The organisation recommended that Chancellor Rachel Reeves consider a combination of targeted spending reductions and strategic tax reforms to help stabilise the economy. Although early 2025 growth figures have outperformed expectations, the OECD noted a decline in business confidence [...]

The government has announced the launch of a new initiative aimed at cutting emissions across the UK hospitality sector. The Zero Carbon Services Hospitality Trial is scheduled to run from May 2025 to March 2026, with £350,000 in funding allocated to support the scheme. The initiative will connect hospitality businesses—such as pubs, cafés, restaurants, and hotels—with experienced energy and sustainability advisers. Is It Worth Exploring? With estimates suggesting that the average pub loses £2,000 each year due to energy inefficiencies, improving energy use could bring significant savings. Enhancing energy performance may lead not only to reduced emissions but also to [...]

In a recent enforcement initiative, HM Revenue and Customs (HMRC) has identified 518 employers who failed to correctly pay their staff the National Minimum or National Living Wage. These employers are now required to repay a combined total of £7.4 million to nearly 60,000 affected workers. In addition to repaying underpaid wages, they also face financial penalties of up to 200% of the shortfall. While HMRC acknowledges that not all breaches are deliberate, the department has made it clear that non-compliance—whether intentional or not—will result in action being taken. To support workers, the government has made tools available for individuals [...]

The table below sets out the HMRC advisory fuel rates from 1 June 2025. These are the suggested reimbursement rates for employees' private mileage using their company car. Where the employer does not pay for any fuel for the company car these are the amounts that can be reimbursed in respect of business journeys without the amount being taxable on the employee. The previous rate is shown in brackets. You can continue to use the previous rates for up to 1 month from the date the new rates apply. Note that for hybrid cars you must use the petrol or [...]

HMRC have published Tax Avoidance Spotlight 70 ‘VAT grouping structure arrangements used by care providers’, highlighting tax avoidance arrangements used by state-regulated care providers to reclaim VAT. The VAT legislation exempts supplies of welfare services where they are made by either a charity or a state-regulated care provider. The impact for the charity or state-regulated care provider is that they are unable to recover any VAT which relates to these supplies. The arrangement identified in Spotlight 70 is intended to work as follows: An unregulated entity forms a VAT group with the state-regulated care provider, or charity. Existing contracts for welfare services between [...]

The deadline for reporting shares and securities and share options issued to employees for 2024/25 is 6 July 2025. This is the same as the deadline for reporting expenses and benefits provided to employees on form P11D for 2024/25. Employers must submit their employment-related securities annual returns online and attach the appropriate spreadsheet template if they have something to report. HMRC provide templates on their website that may be downloaded in order that the information may be entered and uploaded. Note that there are different templates for each of the four tax-advantaged employee share schemes – Company Share Option Plan [...]

P11D forms for reporting expenses and benefits in kind provided to employees and directors in 2024/25 need to be submitted by 6 July 2025. Note that paper forms are no longer acceptable; the return must be made online using PAYE Online for employers or commercial software. Remember that reimbursed expenses no longer need to be reported where they are incurred wholly, exclusively and necessarily in the performance of the employee's duties. Dispensations from reporting are no longer required, although HMRC would expect internal controls to be in place to ensure that the expenses qualify. Note also that trivial benefits provided [...]

On 28 April 2025, the Government made several tax policy announcements, launched consultations and confirmed previously announced developments. Key points included: Mandatory payrolling of benefits in kind (BIKs) will be delayed until 6 April 2027. This is to give more time for software providers, employers and tax agents to prepare for the change.  The mandate was previously intended to take effect from 6 April 2026. From 6 April 2027, mandatory payrolling will apply to most BIKs, except for employment-related loans and accommodation benefits. These may be payrolled voluntarily from April 2027. HMRC revised its Check Employment Status for Tax (CEST) digital tool [...]

If you're considering starting a business, there’s a lot to think about - especially when it comes to finances, tax and compliance. From choosing the right structure (sole trader, partnership or limited company) to registering with HM Revenue and Customs (HMRC), keeping proper records and understanding your tax responsibilities, it’s important to get things right from the start. You may want to consider: When and how to register for VAT Setting up payroll if you’ll be taking on staff Planning for Corporation Tax or Self Assessment Claiming allowable expenses Understanding what support and reliefs are available for new businesses To [...]

UK inflation rose to 3.5% in April, according to official figures, up from 2.6% in March and higher than many economists had expected. This is the highest annual rate in more than a year and comes at a time when both households and businesses are facing a mix of rising costs. The increase was largely driven by higher water, gas and electricity bills, many of which rose on 1 April. Water and sewerage prices alone increased by over 26%, the sharpest rise in nearly four decades. Airfare and holiday prices also jumped compared to last year, though that rise is [...]