Since April 2020, landlords can no longer deduct mortgage interest as an expense. Instead, tax relief is capped at 20%. This change affects UK and non-UK resident landlords, trustees, and partnerships but excludes companies. Learn how this impacts your tax bill.

In April 2017, new rules were introduced that limited the tax relief on mortgage costs for residential landlords to the basic rate of tax. This restriction on finance costs was phased in over several years and was fully implemented by 6 April 2020. As a result, all finance costs, including mortgage interest on rented properties, are no longer allowed as expenses. Any available tax relief is now capped at the basic tax rate of 20%.

Finance costs includes interest on mortgages, loans (including those for furnishings), overdrafts, alternative finance returns, mortgage fees, and other related costs, such as discounts, premiums, and disguised interest. However, no relief is granted for capital repayments of a mortgage or loan.

You will be affected by this restriction if you are:

• A UK resident individual letting residential properties in the UK or abroad.
• A non-UK resident individual letting residential properties in the UK.
• An individual letting residential properties in a partnership.
• A trustee or beneficiary of trusts liable for Income Tax on residential property profits.

The finance cost restriction does not apply if you are a:

• UK resident company
• Non-UK resident company

These entities will continue to receive relief for interest and other finance costs in the usual manner.

Did you know you may be eligible for tax relief on professional fees and subscriptions? If your membership is required for your job and the organisation is HMRC-approved, you could claim back tax for up to four years. Find out if you qualify and how to apply.

You may be eligible to claim tax relief on certain professional fees and subscriptions, provided they meet specific criteria:

• Professional Membership Fees: Tax relief can be claimed on membership fees that you are required to pay in order to perform your job. These fees must be necessary for the fulfilment of your professional responsibilities.
• Annual Subscriptions: You can also claim tax relief on annual subscriptions to approved professional bodies or learned societies, provided that your membership with these organisations is relevant to your profession.

Tax relief cannot be claimed, in the following cases:

• Life Membership Subscriptions: Tax relief is not available for life membership fees, even if they are for professional bodies or societies.
• Fees Not Paid by You: You cannot claim tax relief on professional membership fees or annual subscriptions if they have been paid by someone else, such as your employer.
• Non-approved Organisations: Tax relief is not available on fees paid to professional bodies or organisations that are not officially recognised by HMRC.

You can claim tax relief for the current tax year as well as for the four preceding years, allowing you to potentially recover tax paid in previous years if you have not yet done so.

When making a claim, you must provide evidence of payment for each professional fee or subscription, such as receipts or other supporting documentation that clearly indicates the amounts paid. A claim can be made from the following link https://www.tax.service.gov.uk/claim-tax-relief-expenses/what-claiming-for

If you are registered for self-assessment you must submit your claim through your tax return rather than using the separate claims service.

Flexible planning is essential for adapting to uncertainty, responding to challenges, and seizing new opportunities. The world is unpredictable, and rigid plans can quickly become outdated. Whether in business or personal life, flexibility ensures resilience and long-term success.

Unexpected events such as economic shifts, technological advancements, or personal changes can derail strict plans. A flexible approach allows for quick adjustments without having to start over. Businesses, for instance, benefit from adapting to market trends or supply chain disruptions, ensuring they remain competitive.

Opportunities often arise unexpectedly. A business that initially planned to operate solely in physical stores but later noticed a surge in online shopping must be able to pivot. Those who rigidly stick to their original plans may miss out on growth.

Managing risks is another advantage of flexible planning. If a strategy is not working, adjustments can be made rather than continuing down an unproductive path. This is particularly important in business, where adapting marketing tactics or reallocating resources can make a significant difference.

Innovation thrives in flexible environments. Companies that allow for iterative development and experimentation can improve products and services based on real-time feedback rather than relying on outdated assumptions.

Employee morale and productivity also improve when people are empowered to adapt. A rigid plan can create stress, while flexibility fosters a more dynamic, responsive workplace.

Customer satisfaction depends on adaptability. Consumer preferences change, and businesses that adjust their offerings accordingly are more likely to retain loyal customers.

Ultimately, flexible planning ensures better resource allocation, the ability to respond to competitive pressures, and the freedom to evolve with changing circumstances. Rather than being a sign of weakness, flexibility is a strategic advantage that helps individuals and organisations thrive in an ever-changing world.

For small business owners, especially those operating as sole traders or in partnerships without limited liability, having adequate business insurance is not just a safeguard—it’s a necessity. Without the legal protection of a limited company structure, personal assets such as your home and savings are directly at risk if the business faces legal claims or financial losses.

One of the most critical types of cover is public liability insurance, which protects against claims if a customer or third party suffers injury or property damage due to your business activities. Similarly, professional indemnity insurance is crucial for service-based businesses, covering legal costs if clients claim negligence or poor advice.

Additionally, employers’ liability insurance is a legal requirement if you have staff, protecting against employee injury claims. Business interruption insurance can be a lifeline in unexpected disruptions, ensuring you can recover lost income and continue operations.

Without the right insurance, a single lawsuit, accident, or unforeseen event could financially devastate a small business owner. The cost of insurance is minimal compared to the potential consequences of being uninsured. Therefore, securing comprehensive business insurance is a vital step in protecting both your livelihood and personal assets.

Self-employed individuals earning £12,570 or more annually must pay Class 4 National Insurance Contributions (NICs). For 2024-25, rates are 6% on profits up to £50,270 and 2% above this. Certain groups are exempt, and voluntary Class 2 NICs may be beneficial.

Class 4 NIC rates for the tax year 2024-25 are 6% for chargeable profits between £12,570 and £50,270 plus 2% on any profits over £50,270. There are no changes to these rates for 2025-26.

A number of categories of people are exempt from paying Class 4 NICs, these include:

• People under the age of 16 at the beginning of the year of assessment.
• People over State pension age at the beginning of the year of assessment. A person who attains State pension age during the course of the year of assessment remains liable for Class 4 NICs for the whole of that year.
• People receiving profits in their capacity as a trustee, executor or administrator of a person liable to tax under ITTOIA2005/S8.

The mandatory payment of Class 2 National Insurance Contributions (NICs) for the self-employed was abolished effective from 6 April 2024. It can be beneficial for some self-employed people who do not pay NICs through self-assessment to make voluntarily Class 2 NICs. This can help them to access certain contributory benefits including the State Pension. It is important to confirm that this would be beneficial before making any voluntary payment. The current weekly rate for making voluntary Class 2 NICs is £3.45 and is increasing to £3.50 in 2025-26.

Most self-employed individuals pay Class 2 and Class 4 NICs through self-assessment. Certain self-employed roles, such as examiners, moderators, invigilators, and ministers of religion without a salary do not pay National Insurance through self-assessment but may want to pay voluntary contributions.