HLAS

New government reforms will make it quicker and cheaper for small businesses to turn empty shops into cafes, bars and music venues, as part of a wider push to bring life back to high streets and support small business growth. Outdated planning and licensing rules will be overhauled under a new National Licensing Policy Framework, announced as part of the government’s upcoming Small Business Plan. The changes are designed to reduce red tape, cut costs, and speed up decisions for entrepreneurs looking to launch hospitality businesses in town centres. Key measures include: Making it easier to convert disused shops into [...]

The International Monetary Fund (IMF) Executive Board has concluded its 2025 Article IV Consultation assessing that the UK economy is recovering, with modest growth expected this year and stronger momentum building into 2026. But global uncertainty, cautious consumers, and inflation pressures could still slow things down. The IMF forecasts growth of 1.2% in 2025, rising to 1.4% in 2026. Business investment is picking up, and public spending from the last budget is helping support the recovery. Inflation still a concern - but expected to ease While inflation is expected to average 3.2% this year, the IMF estimates that it should [...]

Google is launching a new AI-powered search feature that could change how people find information online - and how they find your business. The update, known as "AI Mode," offers users a conversational-style summary instead of the familiar list of blue links. It will be optional for users, but this could mark a shift in the direction Google is heading. What’s changing? Standard Google searches return a list of links, with many businesses relying on these to bring in web traffic, enquiries or sales. But with AI Mode, the search results will include an AI-written response with fewer direct links [...]

When it comes to growing a business, many people focus on increasing sales. But sales alone don’t pay the bills - profit does. If you want your business to thrive, it’s important to look beyond the top line and focus on what’s actually left at the end of the day. Why profit matters more than sales High sales figures might look impressive, but if your costs are just as high (or higher), your business may be working hard for very little reward. Profit is the real measure of success - it’s what gives you the freedom to reinvest, grow, or [...]

HMRC have identified an issue affecting some Self Assessment taxpayers in relation to Class 2 National Insurance contributions (NICs) for 2024/25. Some self-employed taxpayers with profits above £12,570 have seen a Class 2 NICs charge of £358.80 added to their accounts when they shouldn’t have been. In some circumstances it will be less. HMRC say that they have taken action to correct the Class 2 NICs figure where the information they hold has allowed. If this applies to you, you will have received a message to let you know. HMRC will correct the records of other taxpayers after the issue has been resolved and [...]

On 21 July 2025, known as ‘Legislation Day’, HM Treasury published a collection of draft legislation and tax-related documents. The forthcoming legislation outlines several significant measures, grouped into the following categories: Closing the tax gap A number of proposals aim to combat tax avoidance. Among them is a new requirement for tax agents to formally register with HMRC in order to act on behalf of their clients. A major justification provided by HMRC for the rollout of Making Tax Digital (MTD) for Income Tax is the expectation that it will reduce taxpayer errors. Further details on MTD are discussed in [...]

On 21 July 2025, HMRC launched their Transformation Roadmap, which sets out ambitious plans for HMRC to become a digital-first organisation by 2030, with 90% of customer interactions taking place digitally. This compares to 76% as at today. HMRC will automate tax wherever possible and offer new digital self-serve options across a number of tax regimes. It is estimated that the plans will save HMRC £50 million a year, including by moving customer letters and reminders to a digital-first approach and reducing the reliance on paper correspondence by 2028/29. Paper post provision will remain for critical correspondence and for the digitally excluded. The [...]

HMRC are pushing ahead with the implementation of Making Tax Digital (MTD) for Income Tax, set to commence from 6 April 2026. Legislation Day saw the publication of draft MTD legislation, which makes the following recently-announced changes to the planned regime: More individuals will be exempt from MTD – Ministers of religion, Lloyds underwriters, recipients of Blind Persons’ Allowance and donors of Power of Attorney. Certain kinds of income will be outside the scope of the MTD rules, namely Qualifying Care Income (e.g. foster care income) and the UK earnings of non-resident entertainers and sportspeople who have no other sources [...]

As announced at Autumn Budget 2024, the government has published draft legislation to reform Agricultural Property Relief (APR) and Business Property Relief (BPR) from 6 April 2026 to make them “fairer and more sustainable” In addition to existing nil-rate bands and exemptions, APR and BPR will continue, but a cap will be introduced that will restrict the 100% relief to the first £1 million of combined agricultural and business property. The rate of relief will be 50% thereafter. Relief will also be reduced to 50% (with no £1m allowance) for quoted shares designated as “not listed” on the markets of [...]

New figures from the Federation of Small Businesses (FSB) show that for the first time in 15 years, more small businesses expect to shrink, close or sell up in the coming year than those planning to grow. It’s a significant shift - and one the FSB has called “a very dangerous situation” for the UK’s small business sector. This net-negative growth reading in the FSB’s Small Business Index underlines just how tough trading conditions remain for many firms, despite falling inflation. Among the issues that the FSB have identified that continue to put pressure on small businesses are: Late payments, [...]