Author: Glenn

From 6 April 2026, new tax rules will expand workplace benefits relief. The changes will simplify the treatment of certain low-value workplace benefits-in-kind (BIKs), affecting both employers and employees.

The changes extend existing exemptions for eye tests, flu vaccinations and home working equipment to include reimbursements, aligning them with current provisions for direct supply.

Under current law, employers can provide these benefits tax-free, but reimbursements were excluded. The upcoming changes will ensure that reimbursed expenses for eye tests, flu vaccines and home office equipment are treated the same as where the employer provides the benefit directly for Income Tax and National Insurance purposes.

These changes aim to streamline the tax system, reduce administrative burdens and better reflect modern working practices. Employees will benefit by being able to claim reimbursements for minor work-related costs without tax or National Insurance implications.

The June 2025 reforms introduce a £35,000 income limit for keeping the Winter Fuel Payment, with HMRC recovering the payment from those above the threshold.

The WFP is a tax-free payment provided by the government to help older people keep warm during winter. The amount of the payment depends on individual circumstances but ranges from £100 to £300. The amount you receive depends on a number of factors including your age and the age of other people living with you.

Pensioners whose taxable income exceeds £35,000 will still receive payment but this will be recovered in full by HMRC using the new WFP tax charge. The recovery will be handled through PAYE tax‑code adjustments or the self-assessment return, depending on the taxpayer’s circumstances.

The threshold applies to individuals, not household income. This means that in some couples, one person may keep their payment while the other has theirs reclaimed, depending on individual incomes. Individuals in receipt of certain social security benefits in the qualifying week for winter payments will not be liable to the charge, regardless of income. 

Many businesses regard their overheads as fixed, predictable, and largely outside their control. In reality, an overhead audit often uncovers costs that have risen quietly, services that are no longer used, and processes that have gone unchallenged for far too long. Carrying out a structured review of overheads can make a surprising difference to cash flow, operational efficiency, and long-term resilience.

The first step is gathering recurring costs in one place. Software subscriptions, insurance, utility bills, telecoms, outsourced services, and routine maintenance contracts tend to increase gradually, which means individual changes can slip by unnoticed. When everything is viewed together, patterns become easier to spot. It is common to find duplicated tools, unused licences, or outdated service packages still being paid for out of habit rather than need.

Contract renewals deserve close attention. Many suppliers rely on the fact that clients rarely challenge terms once a service becomes familiar. Automatic renewals can lock a business into pricing or packages that no longer represent value. Reviewing renewal dates and comparing alternatives ahead of time allows the business to renegotiate, downscale, or switch suppliers before costs escalate.

An overhead audit also helps ensure that spending aligns with current operations. If the business has expanded, streamlined, shifted to remote work, or adopted new technology, its overhead structure may no longer make sense. Processes that once required manual effort might now be automated. Support services that were essential during one phase of growth may be unnecessary now. Questioning each cost in the context of how the business operates today often reveals opportunities to both reduce spend and improve workflow.

Energy usage is another area where even small steps can create meaningful savings. Reviewing tariffs, checking meter accuracy, and adopting simple efficiency measures can help stabilise costs in a market where prices move unpredictably. An audit encourages the business to think proactively, rather than reacting only when bills rise sharply.

Beyond savings, the audit strengthens planning. Once overheads are clearly understood, financial forecasting becomes more accurate and decisions around pricing, investment, and staffing become more grounded. The business gains a clearer view of its baseline costs and can respond more confidently to changes in trading conditions.

A regular overhead audit is not about cutting costs for the sake of it. It is about ensuring the business is not held back by waste, habits, or outdated commitments. By reviewing overheads with purpose and structure, a business can improve efficiency, protect cash flow, and build a more stable foundation for growth.

Accountants often see the impact that excess stock has on a business long before the business owner realises what is happening. Over-stocking drains cash, fills storage space, increases waste, and restricts flexibility at key moments. Many business owners still treat high stock levels as a sign of strength, yet in practice it is one of the most common and avoidable pressures on working capital. By helping clients understand how to optimise their stock, accountants can add real value and improve day-to-day decision making.

A good starting point is a closer look at demand patterns. Businesses often order based on habit rather than evidence, and assumptions can easily take on a life of their own. When accountants analyse twelve to twenty-four months of sales data, they usually uncover clear patterns that are not reflected in current ordering behaviour. Seasonal products, slow movers, and steady sellers all behave differently, and understanding these rhythms allows stock levels to align more closely with what customers actually buy.

Accountants also encourage clients to question their reliance on supplier discounts. Bulk deals appear attractive but often hide significant costs. Extra stock ties up cash that could be better used elsewhere and increases storage and handling expenses. A simple comparison between the real carrying cost of excess stock and the financial benefit of a discount often shows that smaller, more regular orders provide better value in the long run. Price per unit is only one part of the equation.

Introducing minimum and maximum stock levels is another practical step. Minimum levels act as early warning points for reordering, and maximum levels help prevent shelves from filling with more than the business can sensibly sell. These controls do not need to be complicated. A straightforward spreadsheet or low-cost stock system can support regular monthly reviews. As conditions change, these levels can be adjusted so the business remains agile and avoids relying on outdated assumptions.

Lead times are another area where accountants frequently help clients identify unnecessary buffers. Many businesses carry more stock than they need because they believe suppliers will take longer to deliver than they actually do. Reviewing real lead times against assumed ones often reveals opportunities to reduce stock safely. When decisions are based on accurate data rather than instinct, clients gain confidence to hold less stock without risking service levels.

Stock ageing reports are equally valuable. They show which items have been sitting unsold for too long. Once slow movers are identified, clients can take action through promotions or clearance activity to release cash and create space for faster-moving lines. Even modest reductions can make a meaningful difference to cash flow.

Finally, accountants highlight the benefits of simple cloud-based stock tools. Even the most basic systems offer alerts, clearer visibility, and easier tracking, which supports more precise ordering without adding unnecessary complexity.

By providing this guidance, accountants help clients reduce waste, free up working capital, and run more responsive operations. Optimised stock levels lead to better decisions, improved resilience, and a healthier overall business.

The Financial Services Compensation Scheme (FSCS) has raised its savings guarantee for bank deposits, increasing the deposit protection limit from £85,000 to £120,000 per person. This change came into effect on 1 December 2025 and marks a significant increase in how your bank deposits are protected in the UK.

This new deposit protection limit ensures that qualifying UK bank and building society depositors are covered if their bank fails. The FSCS compensation limit is reviewed periodically by the Prudential Regulation Authority (PRA). Following a consultation in March 2025, the PRA confirmed the increase in November 2025. Prior to this, the £85,000 limit had been in place since January 2017.

The FSCS protection applies per person, per bank or building society, which means joint account holders are eligible for double the protection, or up to £240,000 in total. In addition, savers with certain types of temporary high balances such as proceeds from a house sale, insurance payouts or inheritances can also benefit from increased protection. This limit has increased from £1 million to £1.4 million per depositor per life event. This additional coverage is available for up to six months.

For most savers, the new £120,000 limit will provide adequate protection. However, those with deposits exceeding this amount should consider spreading their savings across multiple banks or building societies to ensure all their funds are covered. It is important to note that if you hold multiple accounts within a single banking group (i.e., banks that share the same banking licence), the £120,000 limit applies to the total amount across all accounts within that banking group, not to each individual account.

You do not need to take any action to benefit from the increased protection. If your bank or building society were to fail, the FSCS would automatically compensate you up to the new limits.