Author: Glenn

Great news for businesses! Tax relief on zero-emission cars and EV charge points has been extended until 2026. This move aligns with the UK’s ambitious Zero Emission Vehicle mandate, driving the shift to sustainable transport.

It was announced as part of the recent Autumn Budget measures that the tax relief for businesses acquiring zero-emission cars or installing electric vehicle charge points is to be extended. The reliefs were set to expire on 31 March 2025 for Corporation Tax purposes and 5 April 2025 for Income Tax purposes.

This measure extends the availability of the 100% first-year allowance for qualifying expenditure on zero-emission cars and the 100% first-year allowance for qualifying expenditure on plant or machinery for electric vehicle charge-points to:

• 31 March 2026 for Corporation Tax purposes
• 5 April 2026 for Income Tax purposes

The extension to the scheme highlights the government’s commitment to continue to support the growth in the electric vehicles market in line with the zero emission vehicle (ZEV ) mandate.

The ZEV mandate sets out the percentage of new zero emission cars and vans that manufacturers will be required to produce each year up to 2030. 80% of new cars and 70% of new vans sold in Great Britain will now be zero emission by 2030, increasing to 100% by 2035.

Selling goods or services? It’s vital to know if HMRC considers this a business. From regular sales to earning commissions, their rules on ‘trading’ impact your tax obligations. Here’s a simple guide to help you stay compliant and avoid pitfalls.

If you are selling goods or services, you need to determine whether this constitutes a business. According to HMRC’s guidance, you are required to establish a business if you 'trade' in goods or services.

While not an exhaustive list, HMRC suggests you are likely to be considered as trading if you:

• sell regularly to make a profit
• make items to sell for profit
• sell items on a regular basis, either online, at car boot sales or through classified adverts
• earn commission from selling goods for other people
• are paid for a service you provide

If you only occasionally sell items then you are probably not trading. However, there is no statutory definition of ‘trade.’ The only statutory clarification is that ‘trade’ encompasses a ‘venture in the nature of trade.’ Consequently, the courts have defined what constitutes a ‘trade’ through their rulings, which serve as guidance when disputes arise.

In complex cases, HMRC may use 'badges of trade' tests to assess whether an activity is a legitimate business or just a money-making by-product of a hobby. While not definitive, these tests will help HMRC make this determination. In most cases, it will be clear if your trade in goods or services is a business.

The Chancellor’s Spring Statement, scheduled for 26 March 2025, is expected to focus on navigating the challenges of public finances, economic growth, and household pressures.

Economic Context

The UK economy is forecast to grow by 2% in 2025, though inflation is projected to remain above the Bank of England's 2% target for several more years. This economic backdrop follows significant tax increases announced in the October 2024 Budget, where £40 billion in measures were introduced, including raising employers' National Insurance contributions from 13.8% to 15% for salaries above £5,000. These policies have triggered concerns across businesses and households, compounding challenges for an economy still recovering from previous shocks.

Taxation and Public Finances

Despite the £40 billion in tax hikes, a £22 billion deficit in public finances has been identified, suggesting further fiscal measures may be necessary. Economists anticipate additional increases in capital gains and inheritance taxes as the government seeks to address this shortfall. Meanwhile, the rise in employers' National Insurance contributions has created significant burdens on businesses, particularly in labour-intensive industries like retail and hospitality, raising concerns about job losses and reduced investment.

Business Challenges

Business confidence has dipped to its lowest level in two years, with many companies reducing staff due to rising employment costs. December 2024 saw the fastest rate of job cuts in four years, highlighting the strain on businesses. The government may need to consider targeted support for struggling sectors to counteract the impact of its tax policies and foster stability.

Household Finances

Households are bracing for rising costs in 2025, with food prices expected to increase by up to 4.9%, energy bills climbing, and mortgage payments potentially rising if there are further interest rate hikes. Stamp duty thresholds are set to drop in April, increasing costs for property buyers, and rail fares are expected to rise by 4.6% from March. These pressures will likely lead to calls for government intervention to support families.

Potential Policy Adjustments

The Chancellor could use the Spring Statement to refine some of the policies introduced in the Autumn Budget. Possible measures include adjustments to the National Insurance increase, which has proven particularly controversial. Additionally, there may be new proposals targeting Inheritance and Capital Gains taxes to help bridge the fiscal deficit. Support for businesses, such as reliefs or incentives, might also feature to counteract declining confidence and rising unemployment. For households, the government could announce measures to ease financial pressures, such as subsidies for energy bills or targeted support for low-income families.

Conclusion

The Spring Statement presents an opportunity for the Chancellor to balance fiscal discipline with much-needed support for businesses and households. As stakeholders across sectors await the announcements, the government’s response will be crucial in shaping the UK’s economic outlook.

The average number of touchpoints needed to secure a sale, or appointment generally falls between 7 and 12. However, this varies by industry, target audience, and product or service type. Here’s why multiple touchpoints are necessary and how they work:

Why Multiple Touchpoints Are Necessary

• Building Trust: Buyers need to trust the seller, and trust develops over time through consistent and meaningful engagement.
• Cutting Through Noise: Prospects are inundated with marketing messages, so repeated interactions ensure your message stands out.
• Guiding the Buyer’s Journey: Buyers often move through awareness, consideration, and decision stages before committing. Multiple touchpoints help guide them.
• Relevance and Customisation: Frequent contact allows you to refine your messaging and address specific concerns, making your offering more appealing.

Typical Sales Touchpoints

• Awareness Stage: Social media ads, blog visits, email newsletters, or website engagement.
• Engagement Stage: Personalised LinkedIn messages, phone calls, or direct email outreach.
• Consideration Stage: Webinars, product demonstrations, or sharing case studies and testimonials.
• Decision Stage: Proposal discussions, follow-up calls to address objections, or in-person meetings to finalise details.

Factors Affecting the Number of Touchpoints

• Industry: B2B sales or high-ticket items typically need more interactions (10–15+), while consumer sales might only require 3–5 touchpoints.
• Lead Type: Warm leads, such as referrals, may convert faster, while cold leads from unsolicited outreach require more nurturing.
• Approach: A strategic follow-up plan can reduce the number of touchpoints needed by effectively addressing concerns early on.
• Communication Channels: Some channels, like personalised phone calls or in-person meetings, can fast-track trust and reduce unnecessary follow-ups.

Strategies to Reduce Touchpoints

• Personalisation: Craft messages tailored to the prospect’s specific needs to make each interaction more impactful.
• Multi-Channel Outreach: Engage prospects across email, phone, social media, and in-person to reach them in their preferred way.
• Pre-Qualification: Focus on well-targeted leads to reduce wasted efforts and ensure efficient use of touchpoints.
• Automation: Leverage tools to automate routine touchpoints, such as follow-up emails or reminders, while maintaining a personal touch.

Key Takeaway

While the general range is 7–12 touchpoints, prioritising quality over quantity is essential. Strategic, timely, and relevant engagement will always outperform excessive, unfocused interactions.

The economic outlook for the UK in 2025 presents a mixed picture, with expectations of modest growth tempered by persistent inflationary pressures.

Growth Projections

The Organisation for Economic Co-operation and Development (OECD) has revised its forecast for UK economic growth in 2025 upward to 1.7%, citing increased government spending as a key driver.

This adjustment reflects the UK's resilience amid global economic uncertainties and aligns with its broader strategy to stimulate growth through fiscal policies and structural reforms.

Inflation Concerns

Despite the positive growth outlook, inflation remains a significant concern. The OECD projects that UK inflation will average 2.7% in 2025, the highest among G7 nations. This is attributed to strong wage growth and elevated services inflation, indicating persistent domestic price pressures.

Monetary Policy

In response to these dynamics, the Bank of England (BoE) has begun adjusting its monetary policy. In November 2024, the BoE reduced its interest rate from 5% to 4.75%, marking the second cut since 2020. However, the BoE has signalled that future rate reductions will be gradual, given the rising inflation expectations.

Analysts anticipate that the BoE will continue to lower rates cautiously throughout 2025, potentially reaching 3.75% by year-end.

Fiscal Policy and Public Debt

The UK's fiscal policy is poised to play a pivotal role in shaping the economic landscape. The March 2024 budget introduced measures aimed at stimulating growth, including increased public spending and tax adjustments. However, these initiatives have raised concerns about fiscal sustainability, with public debt projected to rise to 92.8% of GDP in 2025.

The OECD warns that the UK's stretched public finances may limit its capacity to address potential economic shocks in the future.

Labour Market and Business Sentiment

The labour market is expected to experience moderate improvements, with businesses expressing cautious optimism. Surveys indicate that a significant proportion of firms anticipate revenue growth and increased hiring in 2025, supporting the government's efforts to revive economic growth.

However, challenges such as rising national insurance contributions and persistent inflation may temper this optimism.

Conclusion

In summary, the UK's economic outlook for 2025 suggests a period of modest growth accompanied by persistent inflationary pressures. The interplay between fiscal stimulus and monetary policy adjustments will be crucial in navigating these challenges. While increased government spending may bolster economic activity, concerns about inflation and public debt sustainability remain pertinent. Stakeholders, including policymakers and businesses, will need to balance these factors to foster a stable and sustainable economic environment in the coming year.