For many businesses, broadband has gradually become as important as electricity. Cloud accounting, video meetings, online backups, customer management systems and increasingly artificial intelligence applications all depend on reliable connectivity.

The Government’s latest Project Gigabit progress report, published on 22 September, says gigabit-capable broadband is now available to more than 88% of UK homes and businesses. Around four million premises remain without coverage, while the Government has a target of reaching 99% by 2032.

For businesses, however, the question is not simply whether faster broadband is available. It is whether better connectivity could allow the business to work differently.

A business that has tolerated a slow connection for several years may have adapted its working practices around that limitation without realising it. Large files may be stored locally, backups carried out overnight and staff discouraged from working remotely. Video meetings may be unreliable and cloud-based applications frustratingly slow.

If substantially faster broadband is now available, some of those assumptions may be worth reconsidering.

Start by looking at what your business actually needs rather than simply buying the fastest package available. How many people use the connection simultaneously? Which systems depend upon it? How disruptive would an outage be? Do you need a backup connection?

There may also be opportunities to reduce other costs. Improved connectivity could make cloud-based software more practical, support flexible working or reduce dependence on locally maintained servers and other equipment.

The latest Government figures also mean businesses previously unable to obtain a satisfactory connection should periodically check availability. Infrastructure is continuing to expand, so an answer received a year or two ago may no longer apply.

Broadband is easily treated as another monthly overhead. Increasingly, however, it is part of the infrastructure on which the whole business depends.

It may therefore deserve the same periodic review as insurance, banking, software and other essential business services.

Recent employment figures suggest that the number of people on UK payrolls is continuing to fall.

That does not necessarily mean your business should reduce its workforce. However, it does provide a useful reminder to look at one of the largest costs faced by many businesses.

The important question is not whether other employers are recruiting or reducing staff. It is whether your current workforce is right for your business.

Look beyond the monthly payroll

Start by considering what has happened to employment costs over the past couple of years.

Pay rises are only part of the picture. Employer’s National Insurance, pension contributions, benefits, training and other employment costs all contribute to the real cost of employing someone.

Compare this with what is happening to turnover, gross profit and productivity.

For example, if staffing costs have increased by 10%, but turnover has increased by only 3%, it is worth investigating why.

There may be a perfectly reasonable explanation, particularly if you have recruited ahead of anticipated growth. But it is better to understand the figures than simply allow costs to increase unnoticed.

Should every vacancy be replaced?

When someone leaves, there can be an automatic assumption that a replacement is needed.

Before recruiting, consider whether the job still needs to exist in exactly the same form.

Could responsibilities be reorganised? Could repetitive administrative work be automated? Has technology changed the amount or type of work required?

Conversely, be careful about delaying recruitment purely to save money. Existing employees working excessive hours can lead to falling productivity, poor customer service and eventually the loss of good staff.

Model the cost before deciding

Recruitment decisions should form part of your financial planning.

If you are considering employing an additional person, calculate the full annual cost and estimate the additional sales, capacity or efficiency that the appointment needs to generate.

The same principle applies if you are considering reducing staffing levels. A reduction in payroll costs may look attractive, but not if it prevents the business from delivering work or growing sales.

Use your figures to make the decision

Your accounting records contain much of the information needed to undertake this review.

Comparing staffing costs with turnover and gross profit over time can reveal trends that are difficult to spot when looking only at the bank balance or monthly payroll.

If your staffing requirements are changing, talk to us before making significant decisions. We can help you examine the numbers, model alternative scenarios and understand the financial implications before you commit.

Many successful small businesses have one person at their centre.

The owner knows the customers, agrees prices, deals with suppliers, manages the bank account, supervises employees and makes most of the important decisions. Often, this is one of the reasons the business has succeeded.

But it can also become a weakness.

If too much depends on one person, the business may struggle to grow and could face serious problems if the owner is unexpectedly unavailable.

Look at what depends on you

A useful exercise is to imagine that you could not work for the next four weeks.

What would happen?

Could someone else prepare quotations, authorise payments, deal with important customers or make purchasing decisions? Would employees know what needed to be done without continually contacting you?

The answers can identify areas where the business is particularly dependent on you.

This does not mean handing over control. It means creating a business that can function without requiring your involvement in every decision.

Introduce systems gradually

Start with activities that happen regularly.

Documenting important procedures, allocating responsibilities and giving employees appropriate authority can gradually reduce dependency on the owner.

Technology can also help. Good accounting, customer management and workflow systems make information available to other people rather than leaving it in the owner’s head.

The objective should be to make the business easier to manage rather than introduce unnecessary bureaucracy.

Measure what is happening

One reason owners are reluctant to delegate is the fear of losing control.

Good management information can help.

Regular information about sales, margins, cash flow, costs and other key performance indicators allows you to see what is happening without personally supervising every activity.

This can become increasingly important as a business grows.

Think about the eventual value of the business

Owner dependency can also affect what happens when you eventually want to sell.

A purchaser may be reluctant to pay a substantial price for a business if important customer relationships, knowledge and decision-making disappear when the owner leaves.

Reducing owner dependency is therefore not simply about making life easier today. It can help create a stronger and potentially more valuable business for the future.

If your business depends heavily on you, consider discussing the issue with us. The financial information we already prepare may help identify where greater delegation, better systems and improved management information could make a difference.

Running a limited company brings with it a considerable amount of administration. The government is now considering whether some of the UK’s corporate reporting requirements can be simplified.

A consultation launched in September 2026 looks at modernising corporate reporting, reducing duplication and making reporting requirements more proportionate.

For smaller businesses in particular, the proposals could eventually be significant.

Reducing the burden on growing businesses

One issue being considered is whether the current reporting framework creates unnecessary barriers as businesses grow.

Companies can face additional accounting, reporting and audit requirements as they pass particular size thresholds. Although these requirements may be appropriate for larger organisations, the government is considering whether the system could be made simpler and more proportionate.

Among the possibilities under consideration are changes affecting the reporting requirements of small and medium-sized companies and the circumstances in which companies require an audit.

Moving further towards digital reporting

The consultation also considers greater use of digital reporting and communications.

Most businesses already maintain at least some of their accounting records electronically, while communication with shareholders, customers and advisers is increasingly digital.

The government is considering whether company reporting requirements should better reflect the way modern businesses actually operate, including greater use of electronic communications.

Wider changes are being considered

The review extends beyond the preparation and filing of annual accounts.

The consultation considers financial and non-financial reporting, corporate governance and remuneration reporting.

Potentially more fundamental changes are also being examined, including whether the existing rules surrounding distributable profits and capital maintenance remain appropriate.

Changes in these areas could eventually affect decisions made by directors about dividends and the financial position of their companies.

Nothing has changed yet

Importantly, these are proposals rather than new rules.

The consultation is open until 30 November 2026. Businesses therefore do not need to change their accounting or company reporting procedures at this stage.

Nevertheless, the consultation provides a useful indication of the government’s direction of travel. The objective is to make corporate reporting simpler, more digital and more proportionate while retaining appropriate safeguards for shareholders, creditors and others relying on company information.

We will monitor the proposals and keep clients informed of changes that could affect their businesses.

In the meantime, directors should continue to comply with the existing accounting, filing and audit requirements applying to their companies.

Landlords in England need to be aware of updated Right to Rent guidance taking effect from 1 October 2026.

The Right to Rent scheme requires landlords and letting agents to check that prospective adult tenants have the legal right to occupy privately rented residential property in England. Getting the procedure right is important because landlords can face penalties where accommodation is let to someone who does not have a Right to Rent.

Digital checks are increasingly important

The updated Home Office guidance reflects the continuing move towards digital evidence of immigration status.

Depending upon the prospective tenant’s circumstances, a Right to Rent check may involve the Home Office online service, an eVisa, an approved identity service provider or, in some circumstances, checking acceptable original documents.

Landlords should not assume that the same method will be appropriate for every prospective tenant.

Avoiding discrimination

The updated guidance also emphasises that landlords and letting agents must conduct Right to Rent checks fairly.

A prospective tenant should not be treated less favourably because of the way in which they are able to demonstrate their Right to Rent. Similarly, someone with a time-limited immigration status should not automatically be regarded less favourably simply because a further check may eventually be necessary.

This is important when establishing procedures for selecting tenants. Right to Rent checks should form part of a consistent process applied to all prospective adult occupiers.

Keep evidence of the checks

Correctly undertaking the prescribed checks can provide a landlord with a statutory excuse against a civil penalty if it subsequently emerges that a tenant did not have the necessary Right to Rent.

Landlords should therefore retain the required evidence of checks and make a note of any date on which a follow-up check will be required.

Where a letting agent carries out checks, landlords should make sure there is a clear written agreement establishing responsibility for compliance.

Review procedures before 1 October

Landlords managing their own properties should review their tenant onboarding procedures before the new guidance takes effect.

Those using letting agents may also want to confirm that their agent is ready for the changes and understands who is responsible for carrying out and recording the checks.

The Right to Rent scheme applies to residential property in England. Different arrangements apply elsewhere in the UK.

Landlords already face a growing range of tax and regulatory responsibilities. If you are uncertain about your property business’s tax, accounting or record-keeping obligations, please speak to us.

The new Chancellor of the Exchequer, John Healey has confirmed, in a video message, that the next UK Budget will take place on Wednesday, 28 October 2026. Details of all the Budget announcements will be made on a special section of the GOV.UK website which will be updated following completion of the Chancellor’s first Budget speech in October.

HM Treasury is inviting written representations for the Autumn Budget 2025 from individuals, interest groups, MPs and organisations. Submissions should propose evidence-based policy ideas or comment on existing policies, with clear rationale, costs, benefits and deliverability. The deadline for submissions is 23:59 on Wednesday, 9 September 2026.

The Budget will be published alongside the latest forecasts from the Office for Budget Responsibility (OBR). This forecast will be in addition to that published for the Spring Statement and fulfil the obligation for the OBR to produce at least two forecasts in a financial year, as is required by legislation.

The OBR has executive responsibility for producing the official UK economic and fiscal forecasts, evaluating the government’s performance against its fiscal targets, assessing the sustainability of and risks to the public finances and scrutinising government tax and welfare spending.

Making Tax Digital for Income Tax became compulsory for the first group of sole traders and landlords from 6 April 2026.

HMRC is now taking the next step.

From September 2026, HMRC is starting to sign up people who it believes should already be using Making Tax Digital, but who have not registered themselves.

If you receive a notification from HMRC telling you that you have been signed up, it is important not to ignore it.

Who is affected?

For 2026/27, Making Tax Digital for Income Tax generally applies to sole traders and landlords whose qualifying income was more than £50,000 in 2024/25.

Qualifying income broadly means gross income from self-employment and property before deducting expenses. Other income, such as employment income, pensions and dividends, is not included when deciding whether the £50,000 threshold has been exceeded.

HMRC is using information it already holds to identify people who should be within the system.

That creates an important point. HMRC’s information may not reflect changes that have occurred since the relevant tax return was submitted.

If HMRC signs you up and you believe you should not be within Making Tax Digital, the position should therefore be checked rather than simply assuming HMRC must be correct.

Being signed up is only the beginning

Automatic registration does not remove the practical work involved in Making Tax Digital.

Those within the system need compatible software and must create and maintain digital records of their self-employment or property income and expenses.

They must also use compatible software to send quarterly updates to HMRC.

More than 436,000 sole traders and landlords had successfully submitted their first quarterly update by 12 August 2026, according to HMRC.

If you should have submitted an update but have not yet done so, action should be taken. HMRC has confirmed that late quarterly updates will not attract late-submission penalties during 2026/27, although the outstanding updates still need to be submitted.

More people join next April

Even if Making Tax Digital does not apply to you this year, it may do so shortly.

From 6 April 2027, the qualifying income threshold falls to £30,000. Whether you need to join will therefore depend on your qualifying self-employment and property income for 2025/26.

This means some sole traders and landlords who are outside MTD at present have only a few months to prepare.

Waiting until next April before thinking about accounting software, digital record keeping and quarterly reporting could make the transition unnecessarily difficult.

If you have received an MTD communication from HMRC, or think you could be brought within the rules from April 2027, speak to us. We can check when the rules apply to you and help you prepare for the change.

Businesses that register for VAT may be able to reclaim VAT paid on certain goods and services purchased before VAT registration. 

There are specific time limits for claiming pre-registration VAT. VAT on goods can generally be reclaimed where the goods are still held by the business or have been used to produce other goods that are still held by the business. The claim must relate to goods purchased within 4 years before the date of registration.

VAT on services can usually be reclaimed where the services were purchased within 6 months before registration. In both cases, the costs must relate to the business that is now registered for VAT and be attributable to its taxable activities.

Pre-registration VAT should be included on the business’s first VAT return. Businesses should ensure they hold valid VAT invoices and records to support the claim, including details of how any business and private use has been calculated.

There are special rules for certain situations, including partially exempt businesses, businesses with non-business income and significant capital assets covered by the Capital Goods Scheme. These rules can affect the amount of VAT that can be recovered.

It is therefore important for businesses to check the pre-registration rules carefully to ensure that all eligible VAT is identified and claimed correctly. 

When a sole trader or the partners in a partnership transfer a business to a limited company, Capital Gains Tax (CGT) may arise. This is because business assets are normally treated as being transferred at their market value, which may be considerably more than their original cost.

However, Incorporation Relief can allow some or all of the resulting gain to be deferred.

Broadly, the relief may be available where a business is transferred to a company as a going concern, together with all its assets, other than cash if desired, and the consideration received is wholly or partly in shares in the company.

Where the conditions are met, the gain eligible for relief is deducted from the CGT base cost of the shares received. This means that CGT is generally postponed until the shares are eventually sold or otherwise disposed of. If cash or other consideration is received alongside shares, the relief is normally restricted to the proportion of the transfer represented by shares. Part of the gain may therefore become immediately chargeable to CGT.

Incorporation Relief must now be claimed

An important change applies to businesses transferred to companies on or after 6 April 2026. Previously, Incorporation Relief applied automatically where the necessary conditions were satisfied. For transfers from 6 April 2026, the relief must instead be claimed. The claim will normally be made through the Self-Assessment tax return for the tax year in which the transfer takes place.

The claim must be made on or before the first anniversary of 31 January following the tax year in which the business transfer took place. For example, for a transfer during the 2026/27 tax year, the claim deadline will normally be 31 January 2029.

Failing to make a valid claim could therefore result in CGT becoming payable on gains arising when the business is transferred to the company.

Incorporation Relief is not necessarily the best option in every case. Before incorporating a business, it is worth considering the immediate CGT consequences, whether other reliefs may be available and the potential tax position when the company shares are eventually sold.

Professional advice should therefore be obtained before completing a business incorporation, particularly where the business has significant goodwill, property or other assets that have increased substantially in value.

Stamp Duty Land Tax (SDLT) is a tax that may apply when you buy land or property in England or Northern Ireland. It is important to check whether SDLT applies before completing a purchase, as the tax can represent a significant additional cost.

SDLT can apply when you buy a freehold property, a new or existing leasehold property, a property through a shared ownership scheme, or when land or property is transferred in exchange for payment. The amount of SDLT due depends on factors including the type of property, the purchase price and whether any reliefs or exemptions apply.

For residential property purchases in England and Northern Ireland, SDLT is charged on a banded basis, meaning different portions of the purchase price are taxed at different rates. The current rates for a standard residential property purchase are:

• 0% on the first £125,000
• 2% on the portion from £125,001 to £250,000
• 5% on the portion from £250,001 to £925,000
• 10% on the portion from £925,001 to £1.5 million
• 12% on the portion above £1.5 million

Different rules apply for certain buyers. First-time buyers may qualify for relief, while those purchasing an additional residential property will usually pay an additional 5% on top of the standard rates. Non-UK residents may also be subject to different rates.

SDLT only applies to property and land transactions in England and Northern Ireland. Scotland has a separate tax called Land and Buildings Transaction Tax (LBTT), while Wales has Land Transaction Tax (LTT). 

An SDLT return normally needs to be submitted to HMRC and any tax due paid within 14 days of a property purchase completion. Your solicitor or conveyancer will usually deal with this as part of the purchase process.