Author: Glenn

As we look ahead to the Autumn Budget 2025, it is clear that the Chancellor, Rachel Reeves, will be under pressure to balance public expectations with fiscal reality. A combination of reduced growth forecasts, increased borrowing costs, and the reversal of planned welfare savings has narrowed the government’s room for manoeuvre.

Early signals suggest that the upcoming Budget, expected in late October or early November, will avoid headline-grabbing tax rate increases but may rely instead on less visible means of raising revenue.

One of the most likely measures is a further extension of the freeze on Income Tax thresholds. This approach, known as ‘fiscal drag’, increases the tax take without altering rates by pulling more taxpayers into higher bands as earnings rise. For many clients, this could mean a higher overall tax burden despite unchanged tax rates.

We also expect a closer look at Capital Gains Tax (CGT). Recent years have seen CGT receipts fall short of Treasury forecasts. This may prompt a review of CGT rates and allowances, especially for higher earners. Clients who are considering asset disposals may benefit from planning ahead of any potential changes.

Inheritance Tax (IHT) is also under the spotlight, especially following protests in the agricultural sector. Proposals such as tightening asset reliefs or reforming lifetime gifting rules could impact clients with family businesses or larger estates. It may be timely for those affected to review succession plans.

There is also speculation that the Chancellor will examine tax reliefs linked to ISAs and pensions. Any restriction here could affect retirement planning strategies, particularly for those making full use of current allowances.

While a rise in corporation tax has been played down, the Chancellor may still consider smaller adjustments to employer National Insurance or sector-specific tax reliefs. Departmental spending cuts and changes to benefit entitlements may also be used to help bridge the fiscal gap.

In summary, the Autumn Budget 2025 is expected to raise between £10 and £15 billion through a range of threshold freezes and targeted tax relief reforms. Now is a good time for clients to review their tax and financial plans. We are here to support you in preparing for the changes ahead.

Please contact us if you would like to arrange a review of your personal or business tax position in advance of the Budget.

You may need to submit tax returns for someone who has died. As the personal representative, you are legally responsible for reporting income earned before and after death.

This person, known as the ‘personal representative’, is legally responsible for dealing with the deceased’s money, property and possessions. This includes reporting income earned both before death and income generated by the estate afterwards.

HMRC will inform the personal representative if self-assessment return is needed for the deceased. If so, they will send the necessary forms. To complete the return, the personal representative will need financial details such as:

• Bank and savings records
• Dividend statements
• Employment documents (P45 or P60)
• Pension and state pension information
• Income from property or self-employment

The tax return must be sent by post to meet the deadline provided in HMRC’s letter. The personal representative can also appoint an accountant or other professional to assist in compiling the tax return.

If the estate continues to generate income (e.g., from rent or investments), the personal representative may also need to:

• Register with HMRC
• Submit a separate tax return for this income

Where you live determines if you pay Scottish Income Tax. The rules are not based on where you work, who pays you, or national identity, but on your main UK home during the tax year.

The definition of a Scottish taxpayer is generally linked to the question of whether the taxpayer has a 'close connection' with Scotland or elsewhere in the UK. The liability to Income Tax at Scottish rates is not based on nationalist identity, location of work or the source of a person’s income e.g., receiving a salary from a Scottish business.

The Scottish rate of Income Tax (SRIT) is payable on the non-savings and non-dividend income of those defined as Scottish taxpayers. HMRC’s guidance states that for the vast majority of individuals, the question of whether or not they are a Scottish taxpayer will be a simple one – they will either live in Scotland and thus be a Scottish taxpayer or live elsewhere in the UK and not be a Scottish taxpayer. 

If a taxpayer moves to or from Scotland from elsewhere in the UK, then their tax liability for the tax year in question will be based on where they spent the most time in the relevant tax year. Scottish taxpayer status applies for a whole tax year. It is not possible to be a Scottish taxpayer for part of a tax year.

You may also need to pay Scottish Income Tax if you live in a home in Scotland and also have a home elsewhere in the UK. In this case, you need to identify which is your main home based on published guidance and the facts on the ground. You may also be liable to SRIT if you do not have a home and stay in Scotland regularly, for example you stay offshore or in hotels.

You must tell HMRC if you no longer need to file a tax return. Whether you have stopped trading or no longer rent out property, notifying HMRC early avoids penalties and keeps your records up to date.

If your circumstances have changed and you believe you no longer need to complete a self-assessment tax return, then it is important to notify HMRC as soon as possible. This gives HMRC time to review your request and update your records before the 31 January filing deadline. Penalties could be incurred if you do not inform HMRC in a timely manner.

You may no longer need to submit a tax return if, for example:

• you’ve stopped being self-employed;
• you no longer rent out property; or
• you no longer pay the High Income Child Benefit Charge.

If you are unsure, HMRC provides an online tool to help you check if you need to submit a self-assessment return. This can be found at https://www.gov.uk/check-if-you-need-tax-return

You can notify HMRC that you no longer need to submit a tax return by signing in to your online account and completing an online form to close your self-assessment account, You can also use this form to request removal from self-assessment for a particular tax year. You will need to have your National Insurance and Unique Taxpayer Reference (UTR) numbers in order to complete the form. Alternatively, you can contact HMRC by phone or post if you are unable to use the online service.

After submitting your request, you can track its status online. HMRC will confirm in writing whether you still need to file a self-assessment tax return.

Registering for payroll is essential when hiring staff. From HMRC registration to legal compliance, getting payroll processes right ensures your team is paid correctly and your business avoids penalties.

When starting a business and hiring employees for the first time, one of the most important administrative steps is setting up a payroll scheme. This process ensures your employees are paid correctly and that your business complies with the necessary tax and employment laws.

The first step is to register as an employer with HMRC. You must register even if you are only employing yourself, for example you are the director of a limited company. This registration must be completed before your first payday. You need to register in most scenarios including for any employee earning at or over the minimum secondary threshold of £96 a week (2025–26 threshold).

Another important part of the payroll process is deciding whether you will run payroll yourself or use a payroll provider. If you manage it yourself, you must choose an approved HMRC-recognised payroll software to record employee details, calculate pay and deductions and report to HMRC.

Once registered, you’ll need to:

• Collect and maintain employee records.
• Report employee information to HMRC.
• Make accurate tax and National Insurance deductions.
• Submit reports to HMRC using Real Time Information (RTI) on or before each payday.
• Pay HMRC what you owe in tax and National Insurance.

You must also:

• Comply with National Minimum Wage laws.
• Check employees’ legal right to work in the UK.
• Set up a workplace pension scheme for eligible staff.

You will also need to complete annual payroll tasks. Setting up a payroll scheme can be complex, and we would of course be happy to help you choose the optimal set-up for your circumstances. We can also, if required, manage the payroll process for you.