Author: Glenn

The second 2024-25 payment on account for self-assessment taxpayers is due on 31 July 2025. If you are finding it difficult to meet this tax bill, there are options available to ease the burden.

Taxpayers with liabilities of up to £30,000 can use the online Time to Pay (TTP) service to set up instalment payments. This service is available without the need for direct contact with an HMRC advisor and can be accessed up to 60 days after the payment deadline.

To be eligible for the online service, the following conditions must be met:

• No outstanding tax returns
• No other unpaid tax debts
• No existing HMRC payment plans

For those who do not qualify for the online option, alternative payment plans can be arranged. These plans are typically tailored to the individual's or business's specific financial situation, allowing repayment over an agreed period.

HMRC will generally grant extended payment terms if they believe you will be able to pay the full amount in the future. However, if HMRC determines that additional time won't resolve the issue, they may require immediate payment and take enforcement actions if the debt remains unpaid.

Employers must act now to meet the deadline for paying Class 1A NICs for 2024–25 to avoid HMRC penalties. These contributions are due by 19 July 2025 if paying by post, or by 22 July 2025 for electronic payments. Class 1A NICs apply to most taxable benefits given to employees and directors, including company cars and private medical cover. Employers should ensure payments are correctly referenced using their Accounts Office reference number and clearly mark the relevant tax year. Importantly, July payments always relate to the previous tax year, even if made in the new tax year.

Class 1A NICs are payable by employers on the value of most taxable benefits offered to employees and directors, such as company cars and private medical insurance. They also apply to any portion of termination payments exceeding £30,000, provided Class 1 NICs have not already been deducted.

To ensure payments are correctly allocated, employers should use their Accounts Office reference number as the payment reference and clearly indicate the relevant tax year and month. Note that Class 1A NICs paid in July always relate to the previous tax year.

These contributions typically apply to benefits provided to company directors, employees, individuals in controlling positions, and their family or household members.

1 August 2025 – Due date for corporation tax due for the year ended 31 October 2024.

19 August 2025 – PAYE and NIC deductions due for month ended 5 August 2025 (If you pay your tax electronically the due date is 22 August 2025)

19 August 2025 – Filing deadline for the CIS300 monthly return for the month ended 5 August 2025. 

19 August 2025 – CIS tax deducted for the month ended 5 August 2025 is payable by today.

1 September 2025 – Due date for corporation tax due for the year ended 30 November 2024.

19 September 2025 – PAYE and NIC deductions due for month ended 5 September 2025. (If you pay your tax electronically the due date is 22 September 2025)

19 September 2025 – Filing deadline for the CIS300 monthly return for the month ended 5 September 2025. 

19 September 2025 – CIS tax deducted for the month ended 5 September 2025 is payable by today.

A Tribunal has provided a landmark ruling over employer-employee status in the context of direct payments made under the Care Act 2014, ruling that an LA was not in fact the direct employer of a carer. The appeal revolved around the question of whether the LA was the de facto employer of V, who had provided care and support to his adult brother, S, between 2013 and 2020. V was paid directly by the LA via the Care Act 2014 under a contract of employment. 

V claimed race and disability discrimination, as well as payment arrears, asserting a formal employment relationship with the LA. The Appeal Tribunal rejected all of V's claims and found no error of law in the original Tribunal’s approach, as there was no basis for an implied contract with V. The Tribunal’s findings of fact, such as his brother S's control of the budget, payslips naming S, and their family arranging cover, clearly pointed to S as the employer. The test for implying such a contract is a "necessity" in explaining the parties' actions, which was not met here, given the express contract with S.

As such, direct payments are a valid method by which an LA may discharge its statutory duty under the Care Act 2014. As to the issue of S's capacity to enter into a contract of employment, the Judge agreed with the LA that capacity is a matter for medical evidence and not mere assertion. Even if S had lacked capacity, it would have made the contract voidable, not void, and would not have necessitated an implied contract with the LA. This decision strongly affirms that LAs can effectively discharge their statutory duties under the Care Act 2014 by making direct payments, without automatically becoming the employer of the carers. This case illustrates how courts will seek to determine the identity of the employer in such direct payment arrangements. Those employed via such direct payment schemes are unlikely to be able to claim employment status with the LA unless there is compelling evidence that the LA retained significant and direct control over their day-to-day work. This case has far-reaching implications for freelancers and so employers should always seek to clarify whether any direct payments constitute a formal employer-employee relationship to avoid legal pitfalls.

Starting and growing a business is an exciting and demanding challenge. It is easy to focus all your energy on immediate goals like winning customers, generating income, and keeping cash flow under control. But at some point, every business owner will exit, whether through sale, succession, or closure. That is why having a clear exit plan is not just something for later; it adds value from the very beginning.

An exit plan sets out how you intend to leave the business and what outcomes you want to achieve. It might include selling the company, handing it over to a family member or management team, or winding it down in an orderly way. Crucially, it also considers what steps you need to take in advance to make that possible.

Without an exit strategy, business owners can end up underprepared and undersold.

Many discover too late that their business is not ready to attract buyers or that its value is too tied up in their own efforts to run it. Others face difficult decisions when ill health, retirement, or unexpected events force them to exit without a plan.

By contrast, owners who start preparing early can take practical steps to increase business value, reduce risk, and make the eventual transition smoother. This might include documenting key processes, developing a strong management team, reviewing ownership structure, or getting clear on financial performance. These are all steps that can help a business run more effectively in the present as well as the future.

Exit planning also helps you stay focused on what success looks like for you. Whether your aim is to achieve a target sale value, create a legacy, or secure a comfortable retirement, it gives you a measurable goal to work towards.

Reviewing the exit plan every few years ensures it stays aligned with your business’s progress and your personal circumstances. It can also highlight gaps or opportunities to make the business more attractive and resilient.

In short, having a plan for how you will leave your business is just as important as how you start it. If you have not yet created or reviewed your exit plan, we are happy to help you explore your options and take the next steps to secure your long-term goals.