Author: Glenn

Fraudsters are continuing to target taxpayers with scam emails as the deadline for submission of self-assessment returns for the 2024-25 tax year gets ever closer. In the 12 months to 31 July 2025, HMRC received more than 170,000 reports of suspicious contact from the public, of which more than 45,000 related to fake tax refund claims.

A number of these scams purport to tell taxpayers they are due a rebate / refund of tax from HMRC and ask for bank or credit card details in order to send the fake tax refund. The fraudsters use various means to try and scam people including making contact by phone calls, texts or emails. In fact, fraudsters have been known to threaten victims with arrest or imprisonment if a bogus tax bill is not paid immediately.

HMRC’s Chief Security Officer, said:

‘Scammers target individuals when they know Self Assessment customers will be preparing to file their tax returns. We’re urging everyone to stay alert to scam emails and texts offering fake tax refunds.

Taking a moment to pause and check can make all the difference. Report any suspicious activity to us before the fraudsters do any more harm. Search ‘HMRC scams advice’ and refer to the scams guidance on GOV.UK to stay informed and protect yourself.’

If you think you have received a suspicious email claiming to be from HMRC you are asked to forward the details to phishing@hmrc.gov.uk, suspicious texts to 60599 and suspicious calls can be reported on GOV.UK. If you have suffered an actual financial loss you should contact Action Fraud on 0300 123 2040 or use their online fraud reporting tool (or Police Scotland via 101).

Speculation is growing that rates or allowances applied to dividend income may change in the next Budget.

The current tax rates for dividends received (in excess of the £500 dividend tax allowance) are as follows:

• 8.75% for basic rate taxpayers will pay tax on dividends
• 33.75% for higher rate taxpayers will pay tax on dividends
• 39.35% for additional rate taxpayers will pay tax on dividends

Dividends that fall within your Personal Allowance do not count towards your dividend allowance and you may pay tax at more than one rate.

If you receive up to £10,000 in dividends you can ask HMRC to change your tax code and the tax due will be taken from your wages or pension or you can enter the dividends on your self-assessment tax return, if you already fill one in. You do not need to notify HMRC if the dividends you receive are within your dividend allowance for the tax year.

If you have received over £10,000 in dividends, you will need to complete a self-assessment tax return. If you do not usually send a tax return, you need to register by 5 October following the tax year in which you had the relevant dividend income.

There has been growing speculation ahead of the upcoming Budget that the government could make further changes to the taxation of dividends. With the government under pressure to raise revenue there is the possibility that the rates of dividend taxes could be increased. The current £500 tax‑free dividend allowance could also be abolished altogether, after having been significantly reduced over the last number of years.

Mr. Aslam, a former Metroline employee, applied to another bus company on 13 April 2019, disclosing that he suffered from partial hearing loss, depression, anxiety, insomnia and stress, and was interviewed on 14 May 2019. He disclosed that he had been dismissed by his former employer on the grounds of capability and was actively pursuing a tribunal claim.

He was conditionally offered a role and attended induction, although the offer was subsequently withdrawn, and no reference had been obtained from Metroline despite numerous requests. Moreover, he was not allowed to work shifts before he attended induction, while two other candidates were permitted to do so. During the induction process, the claimant emailed the respondent to enquire whether he was being treated differently from the other candidates for the job because of his race. This, coupled with the tribunal claim, had led to a withdrawal of the offer on 20 June 2019. 

The claimant claimed direct race discrimination and victimisation after he had informed the respondent about a tribunal claim against Metroline. The Employment Tribunal found that the job offer had been withdrawn because the respondent believed the claimant was likely to be protected under the Equality Act 2010, Section 27(1)(b) and upheld the claimant’s victimisation claim, although it subsequently reversed its judgement and dismissed the claim. The claimant appealed and the original judgement was reinstated. 

The judgement serves as a clear warning to employers, as withdrawing a job offer or taking other detrimental action based on a person's history of bringing claims, or a perceived likelihood that they may bring one in the future, can itself constitute an act of victimisation under the Equality Act. Employers should tread carefully before weighing pending tribunal cases in their decisions to make or withdraw formal offers of employment.

Every business has a duty to pay tax, whether that is Corporation Tax, VAT, PAYE, or personal tax liabilities for the owners. While these payments are predictable, many businesses still find themselves short of cash when the due dates arrive. One way to reduce this risk is to create a cash deposit reserve specifically set aside to cover past and current tax liabilities.

The idea is simple. Each time profits are made, or taxable income is earned, a proportion of cash is transferred into a separate bank account. This money is not touched for day-to-day trading but held back until HMRC requires payment. By treating tax as an ongoing expense rather than an occasional shock, businesses can avoid last-minute scrambles to find funds.

There are several benefits. First, a reserve provides peace of mind. Business owners know that when the tax bill lands, the money is ready and waiting. This reduces stress and allows management to focus on running and growing the business.

Second, a tax reserve supports cash flow planning. By separating tax money from working capital, it becomes clearer how much is genuinely available for wages, suppliers, or investment. Mixing tax liabilities with general funds often leads to overspending and unnecessary borrowing.

Third, building up a reserve shows financial discipline. It reassures banks, investors, and other stakeholders that the business takes its responsibilities seriously and manages risk sensibly.

Even small, regular transfers can make a big difference. By keeping tax reserves in a deposit account, businesses may also earn some interest before payments fall due.

In short, creating a tax reserve is a practical and prudent step. It reduces surprises, improves cash flow visibility and ensures that tax obligations are met without disrupting business operations.

Working capital is a simple but powerful measure of a business’s financial health. It is the difference between current assets and current liabilities. In other words, it shows what is left when a business’s short-term debts are taken away from its short-term resources such as cash, stock and money owed by customers.

If the result is positive, the business has money available to cover day-to-day operations. If it is negative, the business may struggle to meet upcoming bills or need to rely on borrowing.

Why is working capital so important? First, it gives a clear picture of liquidity. A profitable business can still fail if it runs out of cash to pay suppliers, wages, or rent. By keeping a close eye on working capital, owners can see whether they have enough resources to keep the business running smoothly.

Second, working capital affects flexibility. A business with strong working capital can take opportunities such as bulk-buying stock at a discount or investing in new projects. A business with weak working capital may be forced to delay decisions or turn down growth opportunities because it cannot afford the risk.

Third, lenders and investors often look at working capital when deciding whether to support a business. A healthy balance suggests stability and good management, while a weak position may raise concerns.

Improving working capital does not always mean cutting costs. It can involve speeding up customer payments, negotiating longer terms with suppliers, or keeping a closer watch on stock levels. Even small changes can make a big difference to cash flow.

In short, working capital is about making sure a business can meet today’s needs while staying ready for tomorrow’s opportunities.