A Tribunal has provided a landmark ruling over employer-employee status in the context of direct payments made under the Care Act 2014, ruling that an LA was not in fact the direct employer of a carer. The appeal revolved around the question of whether the LA was the de facto employer of V, who had provided care and support to his adult brother, S, between 2013 and 2020. V was paid directly by the LA via the Care Act 2014 under a contract of employment. 

V claimed race and disability discrimination, as well as payment arrears, asserting a formal employment relationship with the LA. The Appeal Tribunal rejected all of V's claims and found no error of law in the original Tribunal’s approach, as there was no basis for an implied contract with V. The Tribunal’s findings of fact, such as his brother S's control of the budget, payslips naming S, and their family arranging cover, clearly pointed to S as the employer. The test for implying such a contract is a "necessity" in explaining the parties' actions, which was not met here, given the express contract with S.

As such, direct payments are a valid method by which an LA may discharge its statutory duty under the Care Act 2014. As to the issue of S's capacity to enter into a contract of employment, the Judge agreed with the LA that capacity is a matter for medical evidence and not mere assertion. Even if S had lacked capacity, it would have made the contract voidable, not void, and would not have necessitated an implied contract with the LA. This decision strongly affirms that LAs can effectively discharge their statutory duties under the Care Act 2014 by making direct payments, without automatically becoming the employer of the carers. This case illustrates how courts will seek to determine the identity of the employer in such direct payment arrangements. Those employed via such direct payment schemes are unlikely to be able to claim employment status with the LA unless there is compelling evidence that the LA retained significant and direct control over their day-to-day work. This case has far-reaching implications for freelancers and so employers should always seek to clarify whether any direct payments constitute a formal employer-employee relationship to avoid legal pitfalls.

As we look ahead to the Autumn Budget 2025, it is clear that the Chancellor, Rachel Reeves, will be under pressure to balance public expectations with fiscal reality. A combination of reduced growth forecasts, increased borrowing costs, and the reversal of planned welfare savings has narrowed the government’s room for manoeuvre.

Early signals suggest that the upcoming Budget, expected in late October or early November, will avoid headline-grabbing tax rate increases but may rely instead on less visible means of raising revenue.

One of the most likely measures is a further extension of the freeze on Income Tax thresholds. This approach, known as ‘fiscal drag’, increases the tax take without altering rates by pulling more taxpayers into higher bands as earnings rise. For many clients, this could mean a higher overall tax burden despite unchanged tax rates.

We also expect a closer look at Capital Gains Tax (CGT). Recent years have seen CGT receipts fall short of Treasury forecasts. This may prompt a review of CGT rates and allowances, especially for higher earners. Clients who are considering asset disposals may benefit from planning ahead of any potential changes.

Inheritance Tax (IHT) is also under the spotlight, especially following protests in the agricultural sector. Proposals such as tightening asset reliefs or reforming lifetime gifting rules could impact clients with family businesses or larger estates. It may be timely for those affected to review succession plans.

There is also speculation that the Chancellor will examine tax reliefs linked to ISAs and pensions. Any restriction here could affect retirement planning strategies, particularly for those making full use of current allowances.

While a rise in corporation tax has been played down, the Chancellor may still consider smaller adjustments to employer National Insurance or sector-specific tax reliefs. Departmental spending cuts and changes to benefit entitlements may also be used to help bridge the fiscal gap.

In summary, the Autumn Budget 2025 is expected to raise between £10 and £15 billion through a range of threshold freezes and targeted tax relief reforms. Now is a good time for clients to review their tax and financial plans. We are here to support you in preparing for the changes ahead.

Please contact us if you would like to arrange a review of your personal or business tax position in advance of the Budget.

Starting and growing a business is an exciting and demanding challenge. It is easy to focus all your energy on immediate goals like winning customers, generating income, and keeping cash flow under control. But at some point, every business owner will exit, whether through sale, succession, or closure. That is why having a clear exit plan is not just something for later; it adds value from the very beginning.

An exit plan sets out how you intend to leave the business and what outcomes you want to achieve. It might include selling the company, handing it over to a family member or management team, or winding it down in an orderly way. Crucially, it also considers what steps you need to take in advance to make that possible.

Without an exit strategy, business owners can end up underprepared and undersold.

Many discover too late that their business is not ready to attract buyers or that its value is too tied up in their own efforts to run it. Others face difficult decisions when ill health, retirement, or unexpected events force them to exit without a plan.

By contrast, owners who start preparing early can take practical steps to increase business value, reduce risk, and make the eventual transition smoother. This might include documenting key processes, developing a strong management team, reviewing ownership structure, or getting clear on financial performance. These are all steps that can help a business run more effectively in the present as well as the future.

Exit planning also helps you stay focused on what success looks like for you. Whether your aim is to achieve a target sale value, create a legacy, or secure a comfortable retirement, it gives you a measurable goal to work towards.

Reviewing the exit plan every few years ensures it stays aligned with your business’s progress and your personal circumstances. It can also highlight gaps or opportunities to make the business more attractive and resilient.

In short, having a plan for how you will leave your business is just as important as how you start it. If you have not yet created or reviewed your exit plan, we are happy to help you explore your options and take the next steps to secure your long-term goals.

You may need to submit tax returns for someone who has died. As the personal representative, you are legally responsible for reporting income earned before and after death.

This person, known as the ‘personal representative’, is legally responsible for dealing with the deceased’s money, property and possessions. This includes reporting income earned both before death and income generated by the estate afterwards.

HMRC will inform the personal representative if self-assessment return is needed for the deceased. If so, they will send the necessary forms. To complete the return, the personal representative will need financial details such as:

• Bank and savings records
• Dividend statements
• Employment documents (P45 or P60)
• Pension and state pension information
• Income from property or self-employment

The tax return must be sent by post to meet the deadline provided in HMRC’s letter. The personal representative can also appoint an accountant or other professional to assist in compiling the tax return.

If the estate continues to generate income (e.g., from rent or investments), the personal representative may also need to:

• Register with HMRC
• Submit a separate tax return for this income

Your pension scheme type affects your tax relief. Workplace pensions offer tax benefits, but the method used, net pay or relief at source, changes how and when you get them. Your employer or pension provider should confirm which arrangement your scheme uses, and this will affect both your payslip and potential tax relief.

Net pay arrangement

In a net pay arrangement, your pension contribution is taken before tax is calculated. This reduces your taxable income, meaning you automatically receive full tax relief at your highest income tax rate. This can be the basic, higher or additional tax rates. The amount shown on your payslip includes both your contribution and the tax relief applied.

However, if you do not pay tax, for example because you earn below the personal allowance, you will not receive any tax relief under this method.

Relief at source

With the relief at source method, your pension contributions are taken after tax, and National Insurance is deducted from your pay. Your pension provider then adds 20% basic rate tax relief directly into your pension pot. This means your payslip will show only your contributions and not the tax relief.

If you are a higher or additional rate taxpayer (or pay the higher or top rate in Scotland), you can claim extra tax relief through your self-assessment return or by contacting HMRC.