Income Tax applies to earnings, pensions, savings, dividends and more, with different bands across the UK nations.

Individuals can be liable to Income Tax at any age. There are special rules to stop parents avoiding tax by putting assets into their children’s names.

The tables below shows the tax rates you pay in each band if you have a standard Personal Allowance of £12,570.

If you earn over £100,000 in any tax year your personal allowance is gradually reduced by £1 for every £2 of adjusted net income over £100,000 irrespective of age. This means that any taxable receipt that takes your income over £100,000 will result in a reduction in personal tax allowances. This means your personal Income Tax allowance would be reduced to zero if your adjusted net income is £125,140 or above.

For the current tax year if your adjusted net income is likely to fall between £100,000 and £125,140 you would pay an effective marginal rate of tax of 60% as your £12,570 tax-free personal allowance is gradually withdrawn.

If your income sits within this band you should consider what financial planning opportunities are available in order to avoid this personal allowance trap by trying to reduce your income below to £100,000.

With a £50bn shortfall looming, the Chancellor may need to revisit last year’s Corporation Tax roadmap commitments.

As this year’s Autumn Budget approaches, it is an interesting time to revisit the Corporation Tax Roadmap published alongside last year’s Budget on 30 October 2024.

The roadmap sets out the government’s plans for Corporation Tax and a small number of other business taxes over the course of the parliament.

These commitments included:

• Capping the headline rate of Corporation Tax at 25% for the duration of parliament, the lowest rate in the G7.
• Retaining the small profits rate and marginal relief at current rates and thresholds.
• Maintaining the capital allowances system, including permanent full expensing and the £1 million annual investment allowance.
• Maintaining the generosity of R&D reliefs.
• Collaborating with companies on simplification and improving user experience, including HMRC’s path forward on digitisation.
• Developing a new process for increasing the tax certainty available in advance for major investments.

Almost a year later, the Chancellor is facing a significant budget shortfall that could be as high as £50 billion, driven by multiple issues including weak growth, persistent inflation, high debt interest costs and widening deficits.

The government has also committed not to raise income tax, National Insurance or VAT for working people, and to restore frozen tax thresholds in line with inflation from 2028–29.

It remains to be seen whether any of the major commitments outlined in the roadmap and in previous promises to the voting public will be rolled back.

From April 2026, the self-employed and landlords must use MTD for IT, but exemptions may apply in limited cases.

If you are self-employed or a landlord with income over £50,000, you will need to prepare for digital record keeping, quarterly updates and a new penalty system. While most affected taxpayers will be required to comply, there are limited exemptions available.

You can apply for an exemption if you believe you are digitally excluded. HMRC will consider applications on a case-by-case basis once the process opens.

You may be eligible if:

• it is not practical for you to use software to keep or submit digital records – this could be due to age, disability, location, or another reason; or
• you are a practising member of a religious society or order whose beliefs are incompatible with electronic communication and digital record keeping.

In addition, if HMRC has already confirmed that you are exempt from Making Tax Digital for VAT, you will need to contact them again once the MTD for IT application process opens. HMRC will then review your exemption. If your circumstances remain the same then HMRC will confirm you are also exempt from MTD for IT. If not, you will need to reapply.

Some taxpayers are automatically exempt from MTD for IT and do not need to apply.

These include:

• trustees, including charitable trustees and trustees of non-registered pension schemes
• individuals without a National Insurance number, applicable only if one is not held by 31 January before the start of the tax year
• personal representatives of someone who has died
• Lloyd’s member, in relation to your underwriting business 
• non-resident companies

If you are automatically exempt, you do not need to apply for an exemption. If you do not use MTD for IT, you must continue to report your income and gains by submitting a self-assessment tax return if required.

Many business owners see their bank overdraft as a flexible safety net. When cash runs short, the temptation is to ask the bank for a higher limit to keep things moving. While this can provide breathing space in the short term, relying on overdrafts to cover trading losses is one of the riskiest financial strategies a business can adopt.

The key problem is that an overdraft is designed for temporary cash flow fluctuations, not for funding ongoing losses. If sales are falling, margins are shrinking, or costs are out of control, borrowing more simply masks the underlying issues. Instead of addressing the root causes, the business is kicking the problem down the road.

Increased overdrafts also come at a cost. Interest rates on overdrafts are typically higher than other forms of borrowing, and banks may also charge arrangement fees. Over time, these costs eat further into already fragile cash reserves, worsening the loss cycle rather than solving it.

There is also the risk that the bank will eventually say no. If the overdraft has been repeatedly extended and the business still cannot show a plan for recovery, lenders may lose confidence. This can result in the overdraft being frozen or called in, leaving the company without working capital and at risk of insolvency.

A safer approach is to treat persistent overdraft use as a warning signal. It should prompt a review of pricing, overheads, and profitability, and may require fresh equity, restructuring, or a long-term loan if borrowing is genuinely part of the solution. Using overdrafts to fund losses may buy time, but without decisive action, it is rarely a path to recovery.

In every market, businesses face competition. Some competitors may be larger, others may have deeper pockets, but gaining a competitive advantage is not always about size or spending power. It is about finding ways to stand out, deliver value, and build loyalty in ways that others cannot easily copy.

The starting point is understanding what your customers really want. Many businesses assume they know, but without asking directly, they risk focusing on the wrong things. Regular feedback, surveys, and conversations with clients can reveal needs that are not currently being met. Meeting those needs better than your rivals can quickly become a strong differentiator.

Another route to advantage is efficiency. Streamlining operations, adopting smarter technology, or cutting wasted time and cost can enable a business to deliver faster or at a lower price without reducing quality. Even modest savings can provide extra flexibility when pricing against competitors.

Brand and reputation also play a vital role. Trust is hard to win and easy to lose. Businesses that consistently keep promises, communicate clearly, and support their customers when problems arise often enjoy loyalty that competitors cannot buy. A strong reputation can be worth more than any marketing campaign.

Finally, innovation should not be overlooked. This does not always mean launching new products. It can mean packaging existing services differently, offering subscription or fixed-fee pricing, or providing added advice alongside the core offering. Small changes that make the customer’s life easier can be the difference between being a supplier and being a trusted partner.

Competitive advantage is rarely achieved through one big step. It comes from a series of consistent, customer-focused improvements that, taken together, make the business the obvious choice in a crowded market.