The UK’s financial regulator has proposed an increase to the level of savings protection available under the Financial Services Compensation Scheme (FSCS). If approved, the changes would take effect from 1 December 2025 and will be welcome news for individuals and businesses holding larger balances in UK banks and building societies.

Currently, the FSCS protects deposits of up to £85,000 per person, per institution. For joint accounts, that protection doubles to £170,000. There is also extra cover of up to £1 million for “Temporary High Balances” linked to certain life events, such as receiving proceeds from a house sale, inheritance, or insurance payout. This temporary cover applies for six months.

Under the proposals:

• The standard protection limit would rise from £85,000 to £110,000.
• The Temporary High Balance cover would rise from £1 million to £1.4 million.

The reason for the increase is straightforward: inflation has eroded the real value of the £85,000 cap, which was last set in 2017. Updating the limit to £110,000 would restore much of that lost protection and provide savers with greater confidence that their money is safe, even if their bank were to fail.

For most savers, the current £85,000 ceiling is already sufficient. However, those holding larger deposits, particularly following a major transaction, will welcome the higher limits. The proposal also means businesses holding funds in deposit accounts could benefit from increased protection.

A final decision is expected in November 2025, once the consultation has concluded. If confirmed, financial institutions will update their customer information to reflect the new limits by mid-2026.

Running a small business can feel like juggling endless priorities, but taking time to set clear goals is essential if you want your business to grow and remain sustainable. Here are five goals that every owner should consider.

1. Strengthen cash flow management
Cash is the lifeblood of any business. Aim to forecast your cash flow regularly, monitor debtor days, and build a buffer for unexpected costs. Even profitable businesses can run into trouble if they neglect cash flow.

2. Build customer loyalty
Repeat customers cost less to retain than new ones do to acquire. Set a goal to improve customer service, gather feedback, and introduce loyalty or referral schemes. Strong relationships are a foundation for long-term stability.

3. Embrace digital tools
From accounting software to customer management systems, technology can save time and cut errors. Make it a goal to identify areas of your business that could benefit from automation or more efficient systems.

4. Focus on compliance and risk management
Keeping up with tax, employment, and regulatory responsibilities avoids costly penalties. Set processes for filing returns on time, maintaining accurate records, and regularly reviewing insurance and legal protections.

5. Invest in yourself and your team
Your skills and wellbeing directly influence your business. Set goals around training, mentoring, or simply creating space to recharge. Encourage team development too,  motivated employees often generate new ideas and efficiencies.

By working towards these five goals, small business owners can balance immediate demands with longer-term progress. The key is to revisit and adjust them regularly, so they remain relevant as your business evolves.

Paper tax returns are due 31 October 2025, and new registrants must notify HMRC by 5 October 2025. Act early to avoid penalties.

Firstly, the deadline for submitting paper self-assessment tax returns is 31 October 2025. If you miss this deadline a £100 late filing penalty will usually apply, even if no tax is due, or if any tax owed is paid in full by the final deadline of 31 January 2026.

Further penalties increase the longer the return remains outstanding. If your return is still not filed three months after the deadline, daily penalties of £10 per day (up to a maximum of £900) will be charged. If the delay extends to six months or more, further fixed or percentage-based penalties may apply, significantly increasing the cost of non-compliance.

We strongly recommend that anyone still submitting paper returns consider switching to the online filing system. Filing electronically not only simplifies the process but also gives you an extra three months, with the deadline for online returns falling on 31 January 2026.

The second key deadline is 5 October 2025. This is the date by which you must notify HMRC if you need to complete a self-assessment return for the 2024–25 tax year and have not previously been required to file one. Failing to register in time can lead to penalties for late notification, even if you file your return on time later.

Being aware of these October deadlines and taking timely action can help you avoid unnecessary stress and potential fines if you were unprepared.

Not all casual payments are tax-free; HMRC’s miscellaneous income rules may apply depending on the circumstances.

The special miscellaneous income rules sweep-up provisions that seek to charge tax on certain income. This unusual provision, which is broad in scope, catches income that would not otherwise be charged under specific provisions to Income Tax or Corporation Tax.

A casual payment may be considered taxable miscellaneous income when it is received as a reward for a service that was performed under some form of agreement, arrangement, or common understanding that payment would be made.

This is different from a genuine gift or token of appreciation given voluntarily after a service, where there was no agreement, arrangement or common expectation for such a reward. These gifts are not taxable under the same provisions.

The distinction can be difficult to define. For example, in Brocklesby v Merricks (1934), the court highlighted the importance of an arrangement or entitlement to a share of earnings to make a receipt taxable. As a result, it is essential to review the specific circumstances of each case to determine whether a payment qualifies as taxable income or a non-taxable gift.

Businesses over £90,000 turnover must register for VAT, but HMRC may grant exceptions if the increase is temporary.

A business must register for VAT if either of the following applies:

1. At the end of any month, its taxable turnover in the previous 12 months has exceeded £90,000; or
2. At any point, it is reasonable to expect that taxable turnover in the next 30 days alone will exceed £90,000.

If a business temporarily exceeds the VAT registration threshold, they may be able to apply for an exception from VAT registration with HMRC. This applies if their taxable turnover has gone over the threshold in the last 12 months, but the business can show it will not go over the deregistration threshold (£88,000) in the next 12 months. This exception must be applied for by contacting HMRC to request and complete forms VAT1 and VAT5EXC. It’s important to note that this is different from a full VAT exemption.

Once an application is submitted, HMRC will respond within 40 working days to confirm approval or refusal. If approved, the business will not be registered for VAT at that time but will remain required to monitor their turnover monthly in case their circumstances change, and VAT registration is required. If the exception is denied, HMRC will register a business based on the information provided, and the business will be required to account for VAT from the date their liability began.