HMRC has launched a new digital service that allows millions of UK workers to take more control over their tax affairs. The tool, available through the Personal Tax Account and HMRC app, is designed for individuals who pay tax through PAYE. It lets users view and update their income details, allowances, reliefs, and job-related expenses directly, without needing to call or write to HMRC.

This is part of a wider move to modernise how tax is managed in the UK. HMRC’s aim is to make 90 percent of all interactions digital by the end of the decade. The new PAYE service is one of over 50 digital projects in HMRC’s ongoing transformation programme, which includes the use of artificial intelligence, automation, and more intuitive online tools.

One of the most noticeable changes will be a significant reduction in paper post. HMRC expects to save around £50 million a year by cutting back on letters, reminders, and forms sent by mail. That money will be reinvested into improving digital services, though anyone who is digitally excluded will still be able to access information and support in more traditional ways.

In addition, HMRC is deploying new AI technology to support customer service staff and reduce the need for repeat calls. This includes digital assistants that help users find answers online and tools to ensure tax guidance is always up to date. In compliance and enforcement, AI is being used to detect suspicious claims and prevent fraud.

The changes will also make it easier for workers to report mistakes, pay any outstanding tax, or amend their tax code. For parents affected by the High Income Child Benefit Charge, the process of managing their tax position will become simpler too.

The government has allocated over £1.7 billion to support this shift to digital, which includes hiring thousands of new staff to back up the systems and provide support to users.

HMRC’s direction of travel is clear: reduce paper, increase efficiency, and give taxpayers the tools to manage their affairs quickly and accurately. For PAYE workers, this means fewer surprises, faster responses, and greater visibility into how their tax is calculated. It is worth checking your Personal Tax Account to explore what is already available.

Draft legislation for the Finance Bill 2025-26 confirms a major shake-up to Inheritance Tax (IHT), affecting estates that include business assets, agricultural land, and pension funds. The proposed changes, announced on 21 July, aim to tighten reliefs and bring more value into the scope of IHT. The impact could be significant for business owners, farmers, and anyone planning to pass on unused pension savings.

Cap on business and agricultural relief

From 6 April 2026, the amount of business or agricultural property that qualifies for 100% IHT relief will be capped at £1 million per individual. Anything above that limit will only receive 50% relief. Previously, there was no financial cap provided the assets qualified under the relief rules.

This new cap will apply across both Business Property Relief (BPR) and Agricultural Property Relief (APR), including assets placed into trust. If multiple trusts are involved, the £1 million limit will be shared between them in date order.

For many family businesses and farms, this may mean a higher IHT bill on death or on certain lifetime transfers. The government has confirmed that a ten-year instalment payment option will still be available to help manage large tax liabilities on qualifying property.

Pension pots to become liable for IHT

A further change is due to take effect from 6 April 2027, bringing most unused pension funds into the IHT net. At present, many pensions fall outside of IHT rules, but from this date, personal representatives will be required to report and pay IHT on the value of pension savings.

While death-in-service benefits will remain exempt, other pensions may now face combined tax charges where IHT and income tax both apply. Some estimates suggest that the overall tax burden could be as high as 67% in certain cases.

Transitional rules and planning considerations

Gifts made after 30 October 2024 could also be caught under the new rules if the donor dies within seven years. This transitional provision may affect individuals who have been actively planning to pass on business or agricultural property in their lifetime.

Planning ahead

These changes highlight the importance of regular estate planning. Business owners, farmers and those with pension wealth should now review their plans. Early action may help to protect family wealth and reduce tax exposure under the new regime. Professional advice is strongly recommended.

On 15 July, the Chancellor, Rachel Reeves, unveiled a set of changes to the UK’s financial system. These reforms are designed to encourage investment, make it easier to buy a home, improve pension outcomes, and remove unnecessary red tape. While much of the detail will unfold in the coming months, the changes already announced could affect the way individuals borrow, save, and plan for the future.

Here are some of the key points explained in plain English, along with why they may matter to you.

Mortgages may become more accessible

One of the most eye-catching changes is a push to make mortgage lending more flexible. Some major lenders will now be allowed to offer larger loans, based on a higher multiple of your income. For example, someone on £30,000 a year might now be able to borrow more than before, making it easier to get on the housing ladder.

The income thresholds for special mortgage schemes are also being reduced, which could open up new opportunities for first-time buyers and those with modest earnings.

If you are thinking about buying your first home or moving to a larger property, this may be the right time to review your options with a mortgage adviser. With interest rates still relatively high, it is important to ensure that repayments remain affordable, even if you can borrow more.

A push to encourage long-term investing

The government wants to encourage people to put more of their savings into investments, rather than leaving everything in cash accounts. To support this, banks and building societies will be inviting savers to consider whether a stocks and shares ISA might be a better fit for their long-term goals.

If you are someone with money sitting in a cash ISA or savings account, now might be a good time to review whether it is earning a decent return. Over time, even small amounts invested sensibly in the stock market can grow much more than cash held at low interest rates.

You do not need to be an expert or take big risks. But talking to a financial adviser or reviewing your savings strategy with your accountant can help you make informed decisions.

Pensions under review

Another significant part of the reforms is the launch of a new review into pensions. This will look at whether people are saving enough, whether workplace pensions are working as they should, and how the system could be improved.

Although no immediate changes have been made, there could be shifts in the rules around auto-enrolment, pension contributions, or retirement ages in the near future. For the self-employed, this review may lead to new pension options being made available.

It is a sensible time to check in on your pension arrangements. Are you saving regularly? Do you know what your pension might be worth at retirement? Could you afford to contribute a little more each month?

Making finance simpler and more effective

The Chancellor also announced plans to cut back on complicated financial regulations. The idea is to free up banks to lend more, help businesses raise money more easily, and allow the financial sector to operate more efficiently.

While this may sound distant from everyday life, it could improve access to funding for small business owners, open up new investment options, or help keep the UK competitive in global finance.

What should you do now?

You do not need to act on everything immediately. But it is a good time to reflect on your own financial plans:

• If you are planning to buy a home, check if you may now qualify for a larger or more affordable mortgage.
• If you are saving in cash, consider whether part of that could be invested for better long-term returns.
• Review your pension contributions, especially if you have not looked at them in a while.
• Ask questions. Your accountant or financial adviser can explain how these changes might apply to your situation.

The new government has made it clear that change is coming. By staying informed and reviewing your plans now, you can make sure those changes work in your favour.

Inboxes can quickly become overwhelming. Whether you receive ten or a hundred emails a day, it does not take much for things to spiral out of control. Before you know it, your inbox is full of unread messages, missed deadlines, and stress-inducing clutter. The good news is that managing your inbox does not have to take over your life. With a few small habits, you can regain control and keep it that way.

Check your inbox at set times

One of the easiest traps to fall into is checking your emails constantly throughout the day. It breaks your focus and creates unnecessary anxiety. Instead, try checking your inbox at set times. For example, once mid-morning, once after lunch, and once before you finish for the day. You do not need to respond to every message immediately, and most things can wait an hour or two. This approach helps reduce distractions and allows you to tackle emails in batches, rather than one by one as they arrive.

Use folders or labels

If your inbox is your to-do list, it is worth making it work for you. Most email platforms allow you to create folders, apply labels, or use categories. You might have folders for ‘To respond’, ‘Waiting on a reply’, ‘Filed for reference’, or ‘Completed’. When emails come in, file them into these groups rather than letting them pile up in your main inbox. It helps clear visual clutter and ensures that nothing important is lost in the noise.

Unsubscribe and declutter regularly

Over time, you might find yourself signed up to all sorts of newsletters, alerts, or automated emails. While some of these may be useful, many are not. If you find yourself deleting a particular newsletter every time it arrives, consider unsubscribing. A good clear-out of old subscriptions can dramatically reduce the volume of incoming mail and help you focus on what matters.

Turn off unnecessary notifications

Most smartphones and email apps send a pop-up or sound every time a message lands. These alerts create pressure to deal with things straight away, even when it is not necessary. Turning off notifications, or only leaving them on for key contacts, can help you stay in control. It allows you to choose when to check your inbox, rather than letting the inbox dictate your schedule.

Make it a habit to ‘inbox zero’ weekly

Inbox zero does not mean your inbox must be empty every minute of the day. But setting aside time once a week to tidy up, archive completed conversations, delete what is no longer needed, and deal with anything outstanding can keep things from becoming unmanageable. Some people like to do this on a Friday afternoon so they can start the new week with a clean slate.

Final thought

Your inbox is not in charge – you are. With a few small changes to how and when you engage with it, you can take back control, reduce stress, and free up more time for the things that really matter.

With inflation cooling, interest rates nearing their peak, and a new government in place, the UK economy is showing signs of cautious recovery. However, not all sectors are moving in the same direction. Some industries are bouncing back strongly, while others continue to lag. Here is a snapshot of the three best-performing and three worst-performing sectors so far this year.

Top three performing sectors

Private services – especially consumer-facing

The private services sector has delivered the strongest performance, with notable gains in hospitality, leisure, and consumer-focused activities. This part of the economy has benefited from improving confidence and a pick-up in discretionary spending. Services output has grown at its fastest pace in nearly a year, suggesting that consumers, though still price-conscious, are returning to restaurants, entertainment, and travel in larger numbers.

House-building

While the wider construction sector remains mixed, residential development has seen a modest recovery. Activity in house-building improved for the first time in over six months, supported by slightly lower materials costs and a build-up of demand from earlier in the year. This growth is still fragile, but it reflects cautious optimism among developers responding to stabilising interest rates and stronger mortgage approvals.

Financial, legal, and technology services

Professional services continue to be a bright spot, helped by steady export demand and strong global positioning. Financial and legal firms remain central to the UK’s services-driven economy, and the technology sector continues to expand its share of GDP. The UK’s position as a hub for fintech, consulting, and digital services remains secure, supporting steady job growth and investment in these areas.

Bottom three performing sectors

Commercial construction

In contrast to the improvement in house-building, commercial construction is stuck in reverse. Activity has declined sharply, with businesses scaling back investment in office, retail, and large-scale commercial projects. Developers remain wary of long-term occupancy trends and face higher borrowing costs. As a result, fewer commercial projects are breaking ground, and future pipelines look lean.

Manufacturing

The UK manufacturing sector continues to struggle with low output, weak demand, and elevated input costs. Although some sub-sectors, such as food processing, remain resilient, others, including automotive and textiles, are experiencing sharp contractions. Global supply chain issues and subdued export orders have dampened confidence, and the sector has yet to regain the momentum it had pre-2020.

Hiring and employment services

While not a traditional sector in itself, employment and recruitment activity gives a strong signal of economic health. Unfortunately, hiring confidence is down significantly, with many employers delaying recruitment. This is partly due to concerns over demand, and partly linked to rising employment costs, such as the increased rate of employer National Insurance contributions. As a result, recruitment agencies and HR services are facing declining revenues and job openings are down across many industries.

Conclusion

The UK economy remains a mixed bag. Private and professional services are driving forward, helped by improved consumer activity and export performance. However, manufacturing and commercial property are still facing headwinds, and the slowdown in hiring suggests that employers are not yet convinced the recovery is sustainable.

Policymakers will be watching closely. Continued weakness in construction and manufacturing could weigh on overall growth, even as parts of the economy start to accelerate again. The question now is whether confidence spreads, or whether the divide between sectors continues to widen.

With the public finances showing structural cracks, thanks to an estimated £20 billion to £30 billion hole in next year’s budget, Chancellor Rachel Reeves is facing an unenviable challenge. The Office for Budget Responsibility has flagged rising debt, pension obligations, and hefty costs associated with the climate transition as daunting risks to Britain’s fiscal health. Markets are nervous, gilt yields are creeping up, and voters are bracing for some unwelcome news.

And what is the quick fix? Tax rises. With Labour pledging not to raise headline rates of income tax, VAT, or National Insurance on working families, the palette remains muted, but a few remaining options could still sting.

Stealth tax via fiscal drag

Freezing income tax and National Insurance thresholds in real terms is a favourite trick. Each year, pay rises push more people into higher bands. Extending the freeze beyond 2028 could raise £9 billion to £10 billion annually by 2029 to 2030. But pensioners on modest incomes may also be hit. Freezing the personal allowance means many could unexpectedly cross the £12,570 threshold, triggering a stealth income tax rise.

Pension and ISA reforms

The Chancellor might revive plans to cap the tax-free lump sum or reduce tax reliefs for higher earners. That could plug a gap of up to £15 billion a year. There may also be changes to ISA limits, a shift in how capital gains are taxed, or the introduction of a flat 30% pension relief model. None of these changes is likely to be popular, particularly among older voters.

Wealth taxes, levies and property tweaks

Pressure is growing from within Labour to increase taxes on the wealthy. Some have floated a wealth tax on assets over £6 million or £7 million, potentially generating £10 billion or more each year. While Reeves has described such measures as bold, that boldness might clash with fiscal rules and the need to reassure the markets.

There is also talk of adjusting council tax bands to better reflect property values or introducing a health or defence levy. Freezing the inheritance tax threshold, possibly with tighter reliefs on business or agricultural property, could also return to the agenda.

Business contributions

Although Labour’s manifesto ruled out raising corporation tax, there may still be scope to increase employer National Insurance contributions or apply targeted levies on banks and insurers. These moves raise revenue without directly affecting household take-home pay, but they still have broader economic consequences.

Why it matters-and the tension ahead

All of these potential measures rest on a knife edge between political risk and economic necessity. Each tax change could affect Labour’s public support, business confidence, or voter trust. The Office for Budget Responsibility has highlighted the limited fiscal headroom available, and investors are likely to expect at least £10 billion in new measures to maintain confidence.

Is your child starting school this September? Tax-Free Childcare could save you up to £2,000 a year. Check your eligibility now and start planning ahead.

Working families whose children are starting school for the first time September 2025 could save up to £2,000 a year per child on their childcare bills, thanks to the government’s Tax-Free Childcare (TFC) scheme.

Designed to ease the financial burden of childcare, the TFC scheme offers eligible working families valuable support through a wide network of registered childcare providers. This includes childminders, breakfast and after-school clubs, and approved UK play schemes. Families can also build up their TFC account throughout the year, allowing them to save for higher childcare costs during school holidays.

The scheme is available for children up to the age of 11, with eligibility ending on 1 September following the child’s 11th birthday. For children with certain disabilities, the scheme extends eligibility until 1 September after their 16th birthday.

Under the TFC scheme, for every £8 a parent contributes, the government adds £2, effectively topping up childcare savings by 25%. This support is capped at a maximum of £10,000 in contributions per child each year, meaning parents could receive up to £2,000 annually per child, or £4,000 for children with disabilities.

TFC is open to a wide range of working families, including the self-employed and those earning the National Minimum or Living Wage. Parents on paid sick leave, maternity, paternity, or adoption leave (both paid and unpaid) are also eligible. To qualify, each parent must work at least 16 hours per week and meet minimum income thresholds. However, households where either parent earns more than £100,000 a year, or those receiving Universal Credit or employer-provided childcare vouchers, are not eligible for the scheme.

Commenting on the scheme, HMRC’s Director General for Customer Services said:

“Starting school can be an expensive time – there’s a lot to buy and organise. Now that you know where your child will be going to school, it’s a good time to start planning your childcare arrangements. Tax-Free Childcare can help make those costs more manageable. Sign up today on GOV.UK and start saving.”

With school starting in just a few months, now is the perfect time for parents to check their eligibility and take advantage of the savings available through the scheme.

Proposed changes to Inheritance Tax (IHT) are causing alarm in the UK farming community. If introduced as expected from April 2026, new rules could see agricultural estates over £1 million subject to 20% IHT, even when the land or business is still being farmed by the next generation.

This potential shift in the tax regime has triggered protests and demonstrations across the UK countryside. Farming families are worried that, without the current reliefs in place, it will become much harder to pass on farms without either selling off land or taking on significant debt.

Under the current rules, Agricultural Property Relief (APR) and Business Property Relief (BPR) can reduce the taxable value of a farming estate by up to 100%. This allows family farms to be passed down with minimal or no IHT liability, provided certain conditions are met.

The proposed changes would likely involve the reduction or removal of these reliefs for some types of land or property, particularly where the farm includes diversified business activity, such as holiday lets or renewable energy generation. There is also speculation that unused land, or land leased out under long-term arrangements, may no longer qualify.

For farmers and rural business owners, the implications are significant:

• Land valuations are high, especially in the South and East of England. Even small farms can exceed £1 million in value, making them vulnerable to the new rules.
• Succession planning becomes harder. With a 20% tax charge on top of probate and legal costs, the younger generation may find it financially unviable to continue the family business.
• Borrowing to pay tax could increase pressure on margins, particularly in years with poor yields or falling commodity prices.

So, what can be done?

The key is to start planning early. Succession should be reviewed well before April 2026. This might include:

• Restructuring the ownership of the land or business
• Reviewing whether assets currently qualify for relief
• Transferring ownership gradually during lifetime
• Making use of trusts or lifetime gifting strategies where appropriate

Every farm is different, and tax planning in the agricultural sector requires a bespoke approach. The important thing is not to assume that the current rules will remain in place. The political and fiscal climate is shifting, and reliefs that have long been taken for granted may no longer apply.

If you are involved in farming, rural business, or own land used for agriculture, we strongly recommend a conversation about your current IHT position. Early advice can prevent future problems and help protect the legacy you plan to pass on.

The UK economy is showing signs of fatigue. Figures released at the end of June confirm that economic growth slowed to 0.7% in the first quarter of 2025. For small business owners, this is more than just a headline as it signals a shift in consumer behaviour, business confidence, and access to finance.

The Office for National Statistics (ONS) reports that household real incomes are falling. Disposable income is down by 1%, and personal saving rates are at their lowest since 2020. In plain terms, consumers have less money in their pockets. For businesses in retail, hospitality, or services, this may already be translating into weaker sales and a rise in price sensitivity.

At the same time, public borrowing is creeping up. Government figures show a rise in borrowing in the early months of the 2025-26 tax year, adding to fiscal pressure on the new government. With several welfare policy U-turns removing planned savings, the Chancellor faces a difficult Autumn Budget. Tax rises, cuts to investment allowances, or delays to business incentives are all possible outcomes.

The result is a more cautious economic mood. Many small business owners are already reporting tighter trading conditions and lengthening payment cycles. For those relying on external finance, the outlook is becoming more complex. Interest rates have remained relatively high, and lenders are applying stricter affordability tests – especially in sectors deemed higher risk.

What should business owners be doing now?

1. Revisit your cashflow forecasts – Account for lower revenue assumptions, changes in repayment terms, and higher finance costs. If possible, build in contingency funds for slower months.
2. Review your cost base  – Rising National Insurance contributions and minimum wage increases from April 2025 may already be having an impact. Consider whether savings can be made without affecting quality or customer service.
3. Prepare early for borrowing – If you are planning to seek finance or refinance existing lending, start the process sooner. Banks and alternative lenders will want to see up-to-date management accounts and evidence of strong financial control.
4. Talk to us – If you are concerned about profit margins, tax bills, or capital expenditure plans, now is the time to reassess. Small changes in tax planning or investment timing can make a difference.

Although growth is expected to return later in the year, the second half of 2025 is likely to be bumpy. In uncertain times, the businesses that perform best are usually those that plan ahead, communicate clearly, and keep a close eye on the numbers.

From 2025, Companies House is rolling out new identity verification requirements for directors, people with significant control (PSCs), and anyone forming or managing a UK company. These changes form part of the Economic Crime and Corporate Transparency Act and are designed to reduce fraud and increase confidence in UK companies.

If you are involved in running a business, you may soon need to prove your identity either directly through Companies House or via a registered agent such as your accountant. Without completing verification, you will not be allowed to register a company or take up a new role as a director or PSC.

These rules apply to:

• Company directors (existing and new)
• Individuals with significant control (usually shareholders with 25% or more of shares or voting rights)
• Company formation agents
• Anyone filing information at Companies House on behalf of a business

The new system is already partially in place. Since April 2025, authorised agents can verify identities on behalf of their clients, but from a future date still to be announced, Companies House will require all key company officers to comply before filings will be accepted.

For business owners, this means a few practical actions:

• Ensure all directors and PSCs have current and valid photo ID.
• Decide whether you want to complete ID checks directly or use an authorised agent.
• Check that your company’s records at Companies House are up to date.

We expect enforcement and deadlines to follow later in the year, so it is wise to prepare in advance. If you are uncertain how these changes affect you, or how best to carry out the verification, we are happy to help.