Starting your own business can be an exciting and liberating decision. But passion and ambition alone are rarely enough. One of the most overlooked factors in business failure is a lack of direct experience or knowledge in the chosen industry. Put simply, someone who has spent their working life as a plumber is unlikely to make a success of running a restaurant without serious planning, training or help.

Every industry has its own rhythm, customer expectations, regulations and operational quirks. When you know the business from the inside out, you already understand what a typical day looks like, where the risks lie, what customers value most and which details really matter. That type of knowledge can be priceless when problems arise, and it often helps keep costs under control too.

Trying to run a business in a sector you are unfamiliar with often means learning everything at once: pricing, supply chains, compliance and customer service, all while managing staff and watching the cashflow. That is a tough ask for anyone, especially when you have your own money on the line. You may find yourself relying too heavily on advisers or hiring experienced staff who quickly realise they know more about the business than the owner.

Of course, there are exceptions. People sometimes succeed in completely new industries, especially if they partner with someone who brings the missing expertise. But the risks are higher, and the margin for error is smaller. Without lived experience in the sector, even simple decisions can go wrong — choosing the wrong location, targeting the wrong customers or misunderstanding seasonal demand patterns.

If you are thinking about starting a business in an unfamiliar sector, consider ways to build your knowledge first. This might include shadowing someone in the trade, taking relevant training courses or working part-time in the industry. Alternatively, collaborate with a business partner who knows the ropes and shares your goals.

Ultimately, your chances of success rise sharply when you understand both the day-to-day realities and long-term dynamics of the business into which you are getting. Passion is a great driver but pairing it with experience makes it far more likely that your new venture will thrive.

The impact of frozen personal allowances often leads to fiscal drag, a situation where individuals pay more tax as their earnings rise without a corresponding increase in allowances.

This occurs because tax thresholds remain fixed while wages increase, thus pushing more people into higher tax brackets or causing them to pay tax for the first time. Since April 2022, a number of key tax thresholds, including personal allowances, have been frozen and will remain so until at least the 2028-29 tax year.

Fiscal drag is largely driven by inflation, wage growth and the government's decision to keep tax thresholds unchanged. As inflation erodes the value of money, wages rise nominally, but without a rise in allowances, taxpayers are increasingly “dragged” into higher tax bands. This increases tax revenue for the government without changing tax rates, which is why HM Treasury often uses frozen thresholds as a means to boost tax receipts.

Adjusting tax thresholds to align with inflation or another index is referred to as "indexation." The government’s approach to increasing certain thresholds each year based on inflation is called "uprating." However, this policy is not consistently applied. When thresholds are frozen, tax revenues increase for HM Treasury without the need for any adjustments in tax rates. According to the latest estimate from the Office for Budget Responsibility (OBR), the freeze on Income Tax thresholds is projected to generate an additional £38 billion annually by 2029-30.

Since 6 April 2025, the remittance basis of taxation for non-UK domiciled individuals (non-doms) has been replaced by the Foreign Income and Gains (FIG) regime. This shift marks a significant change, as the new FIG regime is based on tax residence rather than domicile. Under the revised rules, almost all UK-resident individuals must report their foreign income and gains to HMRC, irrespective of whether they previously used the remittance basis or are now eligible for FIG relief.

For those former remittance basis users who no longer qualify for the new FIG relief, the treatment of newly arising foreign income and gains now aligns with the standard tax regime for UK residents. However, they will still be liable for tax on any pre-6 April 2025 FIG income and gains if they are remitted to the UK.

A key feature of the FIG regime is the 4-year FIG exemption for new UK residents. Individuals who have not been UK tax resident in any of the previous 10 tax years may opt to receive full tax relief on their FIG for up to four years. To claim this, individuals must submit a self-assessment return, with deadlines falling on 31 January in the second tax year following the relevant claim year.

Importantly, claims can be made selectively in any of the four years but must include quantified figures for income and gains; otherwise, tax will be due at standard rates. An individual’s ability to qualify for the 4-year FIG regime will be determined by whether they are UK resident under the Statutory Residence Test (SRT).

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.

Capital Gains Tax on certain residential property sales must be reported and paid within 60 days to avoid penalties and interest.

The annual exempt amount applicable to Capital Gains Tax (CGT) is currently £3,000. CGT is normally charged at a simple flat rate of 24% and this applies to most chargeable gains made by individuals. If taxpayers only pay basic rate tax and make a small capital gain, they may only be subject to a reduced rate of 18%. Once the total of taxable income and gains exceed the higher rate threshold, the excess will be subject to 24% CGT. 

These rates also apply to gains from the sale of residential property, except for a principal private residence (PPR), which is usually exempt from CGT. Most homeowners don’t pay CGT when selling their main family home but gains from other types of property may be taxable.

This includes:

• Buy-to-let properties
• Business premises
• Land
• Inherited property

Any CGT due on the sale of UK residential property must usually be reported and paid within 60 days of the completion date. This means a CGT return must be submitted and a payment on account made, within that 60-day window.

Failing to meet the deadline can lead to penalties and interest, so it’s important to plan ahead and ensure timely reporting whenever a non-PPR property is sold. And if required, we can help you with the computations and filing formalities.