Businesses can reclaim duties on qualifying goods moved to or through Northern Ireland since 2021

The Northern Ireland Duty Reimbursement Scheme allows businesses to reclaim import duties paid on goods moved into Northern Ireland, provided specific conditions are met. It applies retrospectively, covering eligible goods moved from 1 January 2021 onward.

A claim can be made by importers of ‘at risk’ goods into Northern Ireland. Additionally, agents or representatives authorised to act on behalf of an importer can also make a claim. If you are not UK-based, you must appoint a UK-established agent to submit the claim.

You can claim for duty paid or deferred if:

• The goods were sold, consumed or permanently installed in Northern Ireland.
• They were moved from Northern Ireland to Great Britain.
• They were exported outside the UK or EU.
• You have sufficient evidence that the goods meet the qualifying conditions.

Claims may be made for full or partial consignments. For example, if 50 out of 100 ‘at risk’ goods meet the criteria you can reclaim duty on those 50.

There are deadlines for making a claim which are as follows:

• By 30 June 2026 for goods moved between 1 January 2021 and 30 June 2023.
• Within 3 years of duty notification for goods moved after 30 June 2023.

The full amount of duty can be claimed for goods moved from Great Britain (England, Scotland and Wales) to Northern Ireland. The difference between EU and UK duty rates (where the EU duty was higher than the UK duty) can be claimed for imports into Northern Ireland from outside the UK or EU countries.

This scheme guidance has been updated as the new arrangements set out in the Windsor Framework have now been implemented.

With the Residence Nil Rate Band (RNRB), families can pass on up to £1 million without IHT

The RNRB is an additional £175,000 Inheritance Tax (IHT) allowance that applies when a person’s main residence is passed to a direct descendant, such as a child or grandchild, after their death. The allowance is available to married couples and civil partners, and it can significantly reduce the IHT liability on family homes.

The RNRB is separate from and in addition to the standard IHT nil-rate band of £325,000. When combined with the standard threshold, a married couple or civil partners can potentially pass on up to £1 million tax-free to their direct descendants. This figure is based on two individuals each having a £325,000 nil-rate band and a £175,000 RNRB.

Importantly, any unused portion of the RNRB from the first spouse or civil partner to die can be transferred to the surviving partner, provided a claim is made to HMRC when the second partner dies. This transfer is not automatic and must be claimed. This is usually done by the executor of the estate during administration.

The RNRB is subject to tapering for larger estates. For estates valued over £2 million, the RNRB is reduced by £1 for every £2 over the threshold. As a result, estates significantly exceeding £2 million may lose the RNRB entirely, even if the home is passed to direct descendants.

For small businesses and growing companies alike, one of the most reliable sources of funding is often the profits they generate. While it can be tempting to extract earnings in the form of dividends, bonuses, or reinvestment elsewhere, there is a strong case for holding back a portion of those profits to strengthen the business’s financial position.

Retained profits are an internal source of finance. They can be used to fund working capital, smooth out seasonal cash flow fluctuations, and take advantage of growth opportunities when they arise. Unlike external borrowing, there is no interest to pay, no lengthy application process, and no exposure to changing credit conditions. Retaining profits also gives business owners more flexibility and independence when planning their future.

Maintaining a strong cash position helps protect the business during lean periods. Whether facing late customer payments, unexpected cost increases, or a sudden drop in demand, having cash in the bank can prevent a short-term problem turning into a crisis. This is especially valuable for businesses that operate in volatile sectors or rely on a small number of customers or suppliers.

Retained earnings can also be used to invest in assets, expand operations, hire new staff, or develop new products or services. These actions support long-term growth and build resilience into the business model. In some cases, retained profits can help improve the business’s credit rating, making it easier to secure funding if needed later.

While there is a balance to be struck between rewarding owners and reinvesting in the business, setting aside a proportion of profits each year creates headroom for growth and strengthens cash flow management. It is a disciplined approach that helps build a stronger, more sustainable business.

Many small business owners turn to family members when looking to fill roles in their team. It can seem like a natural choice, offering trust, loyalty, and a shared sense of purpose. However, employing family in your business is not without its challenges, and it is worth considering the potential pitfalls before making that commitment.

One of the main risks is a lack of objectivity. Family relationships can cloud judgement when it comes to performance, discipline, or promotion. It may be harder to have honest conversations about underperformance or to apply the same standards as you would to non-family staff. This can lead to resentment among other team members and undermine morale.

There is also the risk of blurred boundaries. If work disagreements spill into personal life, or vice versa, it can strain family relationships. When personal loyalty and business interests conflict, it can create tension that affects both the family and the business.

Tax and payroll rules must also be followed carefully. HMRC requires that family members employed in a business must be paid a commercial rate for actual work done, and they must be treated in line with employment laws. Inflated pay, unclear job roles, or token positions can lead to problems with tax compliance and potentially trigger enquiries.

Succession planning can also become difficult. If some family members are involved and others are not, questions may arise about ownership, leadership, or fairness in the long term. This can be particularly sensitive when passing the business to the next generation.

In short, employing family can work well when there is clear structure, professional standards, and open communication. But it is essential to treat family members like any other employee, with roles, responsibilities, and expectations clearly defined from the start.

Making Tax Digital for Income Tax (MTD for IT) will become mandatory in phases from April 2026. If you are self-employed or a landlord earning over £50,000 you need to be prepared for digital record keeping including making quarterly updates and for a new penalty system.

You will need to use MTD for IT if all of the following apply:

• You are a sole trader or landlord registered for self-assessment.
• You receive income from self-employment, property or both.

When you must start using MTD for IT:

• If your qualifying income is over £50,000 in the 2024–2025 tax year:
  • You must start using MTD for IT from 6 April 2026
• If your qualifying income is over £30,000 in the 2025–2026 tax year:
  • You must start using MTD for IT from 6 April 2027
• If your qualifying income is over £20,000 in the 2026–2027 tax year:
  • The government has confirmed that MTD for IT will apply to sole traders and landlords with income over £20,000 starting in April 2028 but further details are awaited.

You are currently exempt from MTD for IT if:

• You meet specific limited conditions that automatically exempt you from the service (e.g., for reasons such as age, disability, or location).
• You have applied for an exemption, and it has been approved by HMRC.
• Your qualifying income is £20,000 or less in a tax year.

If you do not use MTD for IT, you must continue to report your income and gains in a self-assessment tax return if required.