According to recently published statistics, the company car is experiencing a revival. In 2023–2024, the number of people receiving company cars increased by 80,000 from the previous year.

After the number of company car recipients dropped from a high of 960,000 in 2015–2016 to 720,000 in 2020–2021, the latest figures show that company cars are making a comeback.

An increase to 840,000 company cars in 2023–2024 is likely due to HMRC’s beneficial tax treatment of cars with low CO2 emissions, particularly fully electric vehicles.

The rise of fully electric company cars

Thanks to long-term tax threshold freezes, sacrificing some of your salary in return for a low-emission company car could actually result in significant tax savings.

For example, if an employee earns £120,000 a year and sacrifices £6,000 to cover the cost of the employer leasing a mid-priced electric company car, this can reduce the employee’s annual tax and National Insurance contributions by around £2,800.

This is much cheaper than leasing an electric car personally. There will also be no fuel benefit for a fully electric company car, even if the employer provides a charging point on their premises.

It’s not surprising, then, that the number of recipients of zero-emission company cars increased six-fold from 2020 to 2024, representing 41% of all company cars. Or that the average CO2 emission of a company car in 2023 was 56 g/km, down from 71 g/km the previous year.

As a result of the rise in fully electric company car drivers, the number of employees driving diesel company cars dropped from nearly 50% in 2020–2021 to just 13% in 2023–2024.

The future of electric car salary sacrifice schemes

It currently seems as though salary sacrifice for electric cars is worth it for employees, as fully electric company cars have a benefit percentage of 3%.

That said, this percentage will increase to 9% by 2029–2030, for much less beneficial savings. For example, the taxpayer mentioned above will only save around £1,000.

Does this mean the comeback of company cars is short-lived or not? We’ll have to wait and see.

In the meantime, if you want to see how much you might save, you can calculate the tax cost of a company car online using HMRC’s company car and fuel benefit calculator.

Employers and employees who are interested in electric car salary sacrifice schemes can also seek professional advice on tax management for this type of arrangement.

At gbac, we have a strong team of accountants in Barnsley who can help with payroll and benefit in kind concerns. Simply call 01226 298 298 or email info@gbac.co.uk for assistance!

Interesting news for companies preparing for Making Tax Digital (MTD) – HMRC has scrapped its plans for expanding the rollout to include Corporation Tax.

However, the tax agency will be rolling out new digital services in the next couple of years, which have been outlined online in HMRC’s Transformation Roadmap.

So, if you pay Corporation Tax, what can you expect in 2025–2026?

No more MTD for Corporation Tax

With Making Tax Digital for Income Tax becoming mandatory from April 2026 and April 2028 onwards, the corporate element was already pushed down the priority list.

However, after putting off the confirmation of an introduction date, HMRC has now officially abandoned MTD for Corporation Tax. Without enforcing digital record-keeping software, the tax agency will need to find other ways to modernise its administration.

As the Corporation Tax gap has now risen to almost 16%, there will be pressure to find a quick solution.

New Corporation Tax digital services

The roadmap published by HMRC lays out the agency’s plans to introduce dozens of information technology services and measures, including key projects such as:

• A new PAYE online service – For Pay As You Earn taxpayers to check or update their income, allowances, and tax reliefs via their personal account or the HMRC app.
• A new expenses service – Making it easier for employees to claim tax relief on allowable expenses by submitting claims and supporting evidence in one place.
• An expansion of self-employed services – Improving registration and streamlining the exit process for those who need to file self-assessment tax returns or stop filing.

A biometric voice system is already in place to verify the identities of taxpayers when they contact HMRC, which will be expanded through the rest of the tax year.

The aim is to reduce reliance on phone helplines, as there are still long waiting times and many calls go unanswered. HMRC is hoping for 90% of taxpayer interactions to be digital by 2030, either through the HMRC app or online personal tax accounts.

Plan for Corporation Tax changes

It can be difficult to plan ahead when even HMRC wasn’t sure about the future of digitalising Corporation Tax. However, the most important thing is to make sure you’re already using digital accounting software to streamline your accounts and tax returns.

This will put you in the best position to adapt to any new changes that HMRC might introduce in the next couple of years, so you can keep your business running smoothly.

If you own a business and need help managing taxes and reliefs, our accountants in Barnsley offer a variety of financial services for small and large companies.

To learn more about how we can help you with Corporation Tax management, call the gbac team on 01226 298 298 or send an email to info@gbac.co.uk.

We’ll get back to you promptly with more information about our adaptable solutions.

Following a range of proposals from the Law Commission, it’s time for the UK government to revise the Victorian laws that still govern wills in England and Wales.

While some amendments have been made to the Wills Act 1837 throughout the 188 years since it came into effect, some of the early Victorian rules remain. Meaning you and your family are currently subject to arcane laws from long before any of you were born!

This is why the Law Commission has published a report with comprehensive recommendations, encouraging the government to update the Wills Act to reflect 21st century life.

Here’s how the rules for writing wills in England and Wales could change within the next year.

What are the proposed reforms?

The report on Modernising Wills Law is available to read on the organisation’s website. The primary changes that the Law Commission is recommending include:

Allowing electronic wills

Back in 1837, wills were only ever written on paper. However, in the age of digital screens, wills that are written electronically should also be made legally valid.

Of course, the government must also set out specific requirements for electronic wills to protect the person making the will and ensure these documents are secure.

Ending will revocation on marriage

In England, Wales, and Northern Ireland (but not Scotland), a will is automatically revoked upon entering a legal marriage or civil partnership. Not many people are aware of this, so couples may believe their previous wishes are still valid after their wedding.

Abolishing this rule can prevent exploitation through ‘predatory marriages’ – for example, when someone marries a vulnerable person or older partner knowing they’ll benefit from intestacy rules when their partner passes away without creating a new will.

Lowering the minimum age to make a will

While the minimum age for making a valid will is only 12 years old in Scotland, you must be 18 years old to make a valid will in England, Wales, or Northern Ireland.

As English law already gives teenagers the ability to make a range of legal decisions at 16 years old, it makes sense that people should also be able to make a will at 16 years old.

This would be especially helpful for terminally ill children aged 16–17 years old, who currently have no legal control over what happens to their body or belongings when they die.

Speak to professional will writers today

The proposals above were incorporated into a draft bill that was presented in Parliament – the government must now decide whether they will implement these recommendations or not.

This could take at least a year, but if you haven’t written a will yet, you shouldn’t wait until then. Both estate planning and Inheritance Tax planning are essential to make sure your assets are distributed and managed according to your personal wishes when you pass away.

With an experienced and empathetic team of accountants in Barnsley on hand, our will writers at gbac can assist you in bringing your will up to date with the latest regulations.

We also offer probate services to help with the execution of a will after death, reducing the stress of administrative tasks for family members who have lost a loved one.

To discuss writing a will and managing your estate, call our team on 01226 298 298, or send an email to info@gbac.co.uk and we’ll get back to you promptly with more information.

Following increases to National Insurance Contributions (NICs) and the minimum wage in April, businesses in the UK are responding to their rising costs.

Around half of businesses are freezing pay, while many other owners are even considering moving abroad to escape the high tax environment in the UK.

Business sentiment has also taken a blow from increased Capital Gains Tax for entrepreneurs disposing of their companies, which will go up from 10% to 18% in April 2026.

Here’s how a significant proportion of UK businesses are handling these issues.

Reducing costs with staff cuts

There have been many challenges for UK businesses in recent years, including high utility bills and inflation – but the changes that took effect in April are particularly pressing concerns.

In attempts to reduce their operating costs, many business owners are cutting staff levels and limiting recruitment, while also reducing staff hours. Some companies are even starting to replace jobs with cheaper automation and AI tools where possible.

In addition to cutting back on staffing costs, most businesses also plan to increase their prices.

Moving businesses abroad

According to the Business Owners Sentiment Survey, around 40% of several hundred owners said they were prepared to move abroad to avoid the challenging tax environment in the UK.

Many other countries not only have lower taxes, but also lower living costs. This is especially attractive for individuals with families who are concerned about private school fees.

Some countries offer ‘digital nomad visas’ for long stays, while others have ‘golden visas’ as a more permanent relocation option. These schemes are being used more often by middle class families, especially in places like Greece, Portugal, and the United Arab Emirates.

Take stock of your business accounts with gbac

With many UK business owners freezing recruitment and expansion or thinking about moving their business to another country, it can be a daunting time to run a company.

However, staying on top of your business costs and knowing where to make savings can be much easier when you come to professionals like gbac to manage your accounts.

Our accountants in Barnsley can provide a range of efficient financial services to ensure your records are accurate and that you’re optimising all the available allowances and reliefs.

For more information about our services for business owners, get in touch by calling 01226 298 298, or email info@gbac.co.uk and we’ll get back to you with more details.

Published in June 2025, the latest figures from HMRC estimate that 5.3% of taxes are going unpaid, with the tax gap now approaching £46.8 billion for the 2023–2024 tax year.

This is an increase of 0.5% and £7 billion compared to the previous figures for the 2022–2023 tax year, but as was the case before, small businesses are the worst tax offenders.

Small businesses continue to be responsible for 60% of the total missing taxes, with the Corporation Tax gap increasing from 6.4% in 2011–2012 to almost 16% in 2023–2024.

Meanwhile, the tax gap for wealthy individuals remains consistent at just 5%.

So, what does this mean for smaller businesses, and how can our Barnsley accountants help?

Why are small companies not paying tax?

It’s perhaps unsurprising that small company owners are deliberately taking steps to limit their tax liability. Not only are businesses facing higher Corporation Tax rates, but it’s also becoming increasingly difficult for business owners to extract profits.

Therefore, business owners may be using cash payments or payments in kind to avoid declaring income or claiming non-work expenditure to exploit expensing rules.

For example, owners could claim deductions for purchasing equipment like laptops, phones, or tablets that may not even be used for business purposes.

Some may even use tools to engage in electronic sales suppression, which is tax fraud.

While HMRC hasn’t had the resources for extensive tax investigations into all of these activities, this could change with the Chancellor’s new funding allocations.

High non-compliance for crypto assets

Tax non-compliance is also believed to be quite high for crypto assets, as HMRC has been struggling to keep up with this rapidly evolving sector over the years.

While HMRC may be able to identify when crypto assets are converted into cash, it’s more complicated when one type of crypto token is exchanged for a different token type, or when crypto tokens are used as payment for goods or services.

For example, transactions such as converting Bitcoin to Ethereum or using a cryptocurrency debit card would be considered disposals for Capital Gains Tax purposes.

Is your business tax compliant?

With such a large tax gap, small businesses and crypto assets are definitely on HMRC’s radar.

So, if you’re the owner of a small company, it’s crucial to make sure you’re reporting the right financial information and paying the correct amount of tax to HMRC.

Mandatory switches to Making Tax Digital software should make it easier for businesses to accurately record and report their taxable income, but only if owners get ahead of deadlines.

Professionals like the team at gbac can help businesses of different sizes with everything from bookkeeping to tax management, so outsourcing could save you a lot of time and effort.

To learn how we can ensure your small company is tax compliant, call us on 01226 298 298, or send an email to info@gbac.co.uk and we’ll be in touch.

With digital filing and public transparency changes on the horizon, will your business be ready for the new Companies House rules taking effect in 2027?

In addition to adjusted company size thresholds from April 2025 and identity verification becoming mandatory this autumn, company directors need to be aware of further changes that Companies House will be implementing from 1st April 2027.

Here’s a summary of how company accounts are changing and what gbac can do to help you.

Mandatory digital filing

If you are a director and currently submit your company accounts yourself instead of using an agent, you will no longer be able to do this via the Companies House web service or paper filing.

While the web service will remain open for filings like confirmation statements and director updates, from April 2027, you can only file company accounts using digital software.

This means directors must use suitable commercial software, which adds to the running costs of a limited company. Ideally, this software should also comply with HMRC filing requirements, as Making Tax Digital for Income Tax is expanding in 2026.

Accounts filing options

Companies House is streamlining the filing options for company accounts for micro-entities and small companies, which means that from April 2027:

• Companies can no longer prepare and file abridged accounts.
• Small companies must file a directors’ report.
• Micro-entities and small companies both have to file profit and loss accounts.

These changes will result in more company information being publicly available than before.

Despite Companies House announcing these changes, it’s still unclear whether the requirement for profit and loss filing will take effect on 1st April 2027 with the others.

Financial year end changes

Companies can currently shorten their financial year end as often as they like. However, Companies House will be restricting this to once every 5 years, unless the business has a valid reason for shortening its financial year end more often.

This will then match the rules for companies lengthening their financial year end.

Get professional help with company accounts

The government website currently provides an online service that can help different businesses find the right type of software for filing company accounts.

Alternatively, if you are looking to outsource your bookkeeping, tax management, or statutory filing processes, you can contact our Barnsley accountants for professional assistance.

We can help you with various aspects of financial management and filing obligation fulfilment, so get in touch by calling 01226 298 298 or emailing info@gbac.co.uk for bespoke support.

With lower interest rates and a record number of mortgage deals available, positive changes are on the way for the buy-to-let market in England – but is it a good time to become a landlord in 2025–2026?

If you’re thinking about investing in buy-to-let property and becoming a landlord in England within the next year, you’ll need to consider the pros and cons before taking the plunge.

Here’s what you should know about the current situation for landlords in England, and how gbac can help you manage your accounts if you decide to rent out your property.

Cons of becoming a landlord in 2025

With the Renters’ Rights Bill likely to become law by the end of this year, the rule changes it will enforce are still causing some uncertainty in the private rental market.

These new rules will impose restrictions on landlords in England when it comes to evicting tenants, increasing rent, and receiving several months of rent in advance.

Other disadvantages of being a landlord in the current market include:

• Increased property maintenance costs
• Potential for stricter energy efficiency regulations
• Significant upfront cost of Stamp Duty

Compared to relatively modest buy-to-let property price growth, some investors may prefer the reliable rate of return available on low-risk investments like fixed-rate bonds.

Pros of becoming a landlord in 2025

The main advantage of purchasing buy-to-let properties is that rents are continuing to increase, with the average rent in England going up by 7.1% between May 2024 and May 2025.

However, there can be wide differences between regions – for example, the average rent in the North East increased by 9.7%, while North Yorkshire’s average rent only increased by 3.7%.

The financing aspect is also a major benefit for potential landlords. Not only is the average two-year fixed mortgage rate the lowest it’s been since September 2022, but there are also around 1,200 more buy-to-let mortgage offers available to choose from than last year.

If you decide to become a landlord in England, after finding the right property in the right location, you must ensure you use Making Tax Digital software for tax compliance.

Financial advice for landlords in England

Becoming a landlord can be rewarding, but it’s not without hard work – including keeping comprehensive accounts, managing finances carefully, and complying with HMRC.

Thanks to our range of bookkeeping and tax consultancy services, these processes can become much easier when you outsource them to our experienced team of accountants in Barnsley.

We can also manage service charge accounts for residential and commercial developments, helping property managers and leaseholders to keep up with their legal obligations.

To find out what gbac can do for you, call us on 01226 298 298 or email info@gbac.co.uk.

Should people working in the hair and beauty industry be treated as employed or self-employed?

Salon owners renting out chairs to other businesses is a growing trend, but for those working in salons, this business model can blur the line between employment and self-employment.

HMRC recently published guidance to help people understand this important distinction, which will affect businesses who rent out chairs and the workers who rent them.

When it comes to tax liabilities, incorrect classification can result in serious consequences – especially if HMRC catches a mistake after conducting a compliance check.

So, if you work in hair and beauty, you need to make sure you’re filing and paying taxes correctly.

Self-employment classification

For some salons, the classification will be simple enough – such as situations where the owner doesn’t work in the salon themselves, but rents chairs to others who work independently.

However, in other cases, there may be a mix of working owners, salon employees, and chair renters all operating in the same salon. This will make the classification less clear, particularly if the salon presents a common brand identity for everyone working in the shared space.

If the salon hasn’t already implemented them, there are several ways to establish self-employed status that should be straightforward for chair renters to apply.

For example, chair renters should have their own:

• Business bank account
• Business insurance
• Equipment and products
• Client list and business records

As long as income is separated for each renter, a shared till or card machine shouldn’t be an issue.

Problem areas for chair renters

Workers who rent chairs in salons should ideally be able to decide the hours they work and when they can take time off. However, a salon with walk-in customers will need a minimum number of workers available during opening hours, so these decisions may be more of a compromise between salon owners and chair renters.

Similarly, chair renters should set their own prices, but if everyone in the salon offers the same services, this can become a problem. However, even if there is common pricing throughout the salon, each renter should provide their own price list and set their own prices for any exclusive services.

Are you a self-employed chair renter or an employee?

Whether you sometimes offer at-home haircuts as a side hustle or work in a professional salon, your employment status will determine your tax code, National Insurance Contributions (NICs), and tax filing obligations – including Making Tax Digital (MTD) requirements.

If you work in the hair and beauty sector, you can check your employment status online using the guidance on the government website and the Check Employment Status for Tax (CEST) tool.

If you would prefer to have a professional advise you on your employment status and manage your tax account, our accountants in Barnsley provide a range of services that you could benefit from.

To find out how the gbac team can help you, call us on 01226 298 298, or email us at info@gbac.co.uk and we’ll get back to you with more information.

Choosing to represent yourself at a First Tier Tribunal (FTT) would probably be considered foolhardy enough. Yet, in a recent case, a taxpayer also chose to base their appeal against HMRC on artificial intelligence (AI), without human verification.

As you might expect, the results of these choices did not turn out in the taxpayer’s favour.

B Zzaman v HMRC

In April 2025, the FTT heard a case in which HMRC identified that Mr. B Zzaman didn’t notify the agency of his liability for the High Income Child Benefit Charge (HICBC) in 2018–2019, so HMRC raised a discovery assessment of an undeclared £2,501.

The FTT heard Mr. Zzaman’s appeal against this discovery assessment, which had been delayed due to uncertainties over whether HMRC could rely on a discovery assessment.

The government then legislated in the agency’s favour, meaning a discovery assessment can’t be used as the basis of a defence (although the application of this legislation is retrospective).

The taxpayer then represented himself using a defence that was written with the assistance of AI, but this defence was unreliable and not strong enough. For example, it:

• Claimed that HMRC should have notified him of the charge, when the primary responsibility for declaring tax liability lies with the taxpayer.
• Cited cases that, while not completely fictitious, were not relevant to the tax charge.

The taxpayer’s defence was therefore suspect, as the AI he used did not fully understand what was asked of it and did not provide accurate answers to support his case.

While AI can be used for research purposes, the results should always be checked for accuracy.

How does HMRC use AI?

HMRC uses AI extensively to help the agency analyse large amounts of data – for example, when a taxpayer declares income that’s insufficient to support their apparent lifestyle.

Landlords, in particular, should be aware that HMRC can use AI to search many databases – including listing websites, the Land Registry, and tenant deposit schemes – to establish whether the individual is declaring their property income correctly.

Though it’s intended for use by public bodies, the government has published an AI playbook that can be read online, which explains the limitations of artificial intelligence.

As the taxpayer in this case learned, to their own cost, relying on AI for tax expertise is likely to backfire. If you need tax advice, it’s best to speak to a qualified financial adviser.

Get expert tax advice from a real person

Here at gbac, we offer a range of tax consultancy services, and our experienced team of accountants in Barnsley can provide expert financial advice for individuals and businesses.

To talk to our human tax advisers and book a consultation, please call 01226 298 298, or send an email to info@gbac.co.uk and we’ll be in touch as quickly as we can.