Though there may yet be a late reprieve – which doesn’t seem likely, according to predictions for the upcoming Spring Forecast – the cost of purchasing a property in England or Northern Ireland will be going up from 1st April 2025 due to increasing Stamp Duty Land Tax (SDLT).

Now the temporary nil rate threshold increase to £250,000 has reverted to the pre-September 2022 level of £125,000 and discounts for first-time buyers have also been reduced to previous levels, those purchasing property after the end of March will face higher Stamp Duty costs.

Here’s what’s in store for landlords and first-time homebuyers in England and Northern Ireland.

SDLT for landlords

As we reported earlier this year, Stamp Duty for landlords is due to increase in April.

Anyone purchasing a property that costs £250,000 or above will face an additional £2,500 expense, as more of the purchase price will be subject to the 2% tax charge when the nil rate threshold is reduced.

For landlords, however, this comes in addition to the 2% surcharge increase introduced on 31st October 2024. As an example, while SDLT on a £350,000 property would have been £15,500 before the end of October 2024, it would currently be £22,500 – and will jump to £25,000 from April 2025.

This marks a Stamp Duty increase of over 60% for landlords in the space of just six months.

SDLT for first-time buyers

Due to temporary discounts for first-time buyers, those purchasing their first property in England and Northern Ireland do not have to pay SDLT on properties up to £425,000.

This means that current purchases between £425,000–£625,000 only incur a charge of 5% above this threshold, while no relief is available for properties costing more than £625,000.

However, these thresholds will be reduced from April 2025, with the nil rate cut to £300,000 and the upper limit dropping to £500,000. The 5% rate will apply to property purchases between these limits.

Therefore, anyone purchasing a property worth just over £500,000 will need to negotiate the price, as even a £1,000 reduction on a £500,000 property sale will save the buyer £5,050 in SDLT.

Stamp Duty tax advice

Property buyers in England and Northern Ireland should aim to complete transactions before 1st April 2025 or prepare for increasing Stamp Duty costs – especially landlords.

Scotland and Wales have their own property taxes, but for buyers in England or Northern Ireland, an online Stamp Duty calculator is available to help you work out the amount of SDLT payable.

If you would prefer to seek professional assistance with property tax matters, why not contact our team of accountants in Barnsley to benefit from our tax-efficient financial services?

For advice on Stamp Duty Land Tax, simply call gbac on 01226 298 298, or send an email to info@gbac.co.uk with your details and we will be in touch to discuss your tax situation.

In December 2024, Chancellor of the Exchequer Rachel Reeves announced the date when her next formal report to Parliament would be due, following the Autumn 2024 Budget.

Several Chancellors ago in 2016, then-Chancellor Philip Hammond decided to replace two Budgets a year with one Autumn Budget and a Spring Statement, the former of which would be the main fiscal event, with the latter no longer introducing significant tax changes.

Rachel Reeves is set to follow this structure again – and after the disastrous 2022 mini-budget, when Chancellor Kwasi Kwarteng failed to consult the Office for Budget Responsibility (OBR), the OBR is still being commissioned to produce two reports a year.

Therefore, Chancellor Reeves will present a Spring Statement to Parliament based on the OBR’s latest economic and fiscal analysis, which will be published on the same day.

With the aim of giving businesses and families more certainty and stability, the Spring Forecast shouldn’t announce any significant spending changes – but with low economic growth in the UK, the pressure is on for the Labour government to produce feasible long-term plans.

When is the Spring Forecast?

The Spring Forecast is due to be published by the OBR on Wednesday 26th March, after which Reeves will deliver a statement in Parliament regarding the national financial outlook.

As businesses and households across the UK are still digesting the implications of the Autumn Budget, which announced billions of pounds’ worth of tax hikes and spending policies, most will be hoping that the Spring Forecast won’t introduce more drastic changes.

While the Treasury has previously stated that the Chancellor is committed to ‘one major fiscal event’ each year, with no significant policy announcements due until the next Autumn Budget, it’s possible the government will change its mind under the pressure to stimulate growth.

With reports that high borrowing costs and little economic growth has wiped out any ‘fiscal headroom’ the government may have had, speculation is increasing about a downgraded forecast.

Though the Chancellor wouldn’t have wanted to rock the boat, high inflation and the poor economic growth forecast already hinted by the Bank of England could force the government’s hand.

Will the Chancellor raise taxes?

Though the Spring Statement is not scheduled to include the fiscal announcements of a Budget, the OBR forecast will set the scene for the nation’s finances and pave the way for more difficult tax-and-spend decisions down the line at the next Autumn Budget, due around October 2025.

After government borrowing costs increased in January this year, rumours began to appear that either targeted tax rises or spending cuts will be necessary to balance the books.

The government already pledged not to increase Income Tax, VAT, or employee National Insurance Contributions – which accounted for more than half of tax receipts in 2023–2024 – so going back on this promise would be an extremely unpopular move.

This would leave public spending cuts as the only remaining choice, but this would also be very difficult, as departmental spending is already stretched thin and the Chancellor also pledged not to return to the austerity policies introduced after the global financial crisis.

Raising taxes to fund public spending would then need to happen, but the Chancellor would have to look at other areas such as extending the tax threshold freeze – despite another pledge to end it – or perhaps extending the survival period for Inheritance Tax on financial gifts.

Alternatively, the government could reduce Corporation Tax and the additional rate for Income Tax to stimulate the entrepreneurial sector, but there isn’t much room for tax cuts.

It all depends on whether the government is willing to break previous pledges, and if so, which ones.

Consult accountants for tax advice

Most speculators anticipate a Spring Statement that doubles down on last October’s Budget without substantial changes, though the Chancellor must explain what meaningful action the government plans to take to address the urgent issues caused by a stalling economy.

The absence of further major tax changes will be good news for those currently planning for 2025 and adjusting to the latest changes for the 2026 tax year and beyond.

With the new tax year approaching in April, now is the best time to start professional tax planning if you haven’t already. Here at gbac, we offer a wide selection of financial services, so you can speak to our accountants in Barnsley for tax-efficient financial advice.

Simply call our office on 01226 298 298 or email us at info@gbac.co.uk for more information.

A recent First Tier Tribunal (FTT) case has revealed the importance of staying on top of your tax returns even if you think you don’t owe any tax – as a UK taxpayer who lived overseas learned the hard way.

In this case, the taxpayer had submitted his tax returns on time as a UK resident. However, while living abroad during the 2020–2021 tax year, he assumed he didn’t need to submit a self-assessment tax return that year, as the income from his UK property was covered by his Personal Allowance.

Despite the lack of tax liability, HMRC charged significant penalties for late submission.

Here’s what you should be wary of if you don’t want to end up in the same boat!

Failed appeal against late tax return penalties

The taxpayer in question eventually submitted his 2020–2021 tax return over a year late, which resulted in a total penalty of £1,600 from HMRC even though no tax was due.

This included an initial £100 penalty for missing the filing deadline, a £10 daily penalty for 90 days, and two £300 penalties for filing more than 6 months late and more than 12 months late.

The taxpayer submitted an appeal and argued at the hearing that he could neither submit a return nor open emailed penalty notices due to lack of internet access while living overseas.

He also argued that postal delays were outside of his control, but in both instances, the FTT determined that the taxpayer should have taken more responsibility in organising his tax affairs – such as making arrangements to forward mail from the UK to his overseas address.

Ignorance of the law was not accepted as a reasonable excuse to appeal a tax penalty.

Make sure to file returns and pay taxes on time

This is an example of why it’s so essential to stay on top of your tax filing obligations, even if there is no tax due to be paid. The £1,600 fines were only penalties for late tax returns, so the total would have been even higher if there was also an overdue tax bill.

If tax was due, HMRC would charge both penalties and interest on the outstanding amount. The tax agency currently charges 7.25% interest on late payments, but the UK government will be introducing an extra 1.5% levy on late tax payments from 6th April 2025.

To get an estimate of the penalties and interest you might owe for a late self-assessment tax return or payment, you can use the online calculator on the government website.

Alternatively, to help you navigate tax penalties and avoid them in the first place by filing and paying on time, you could turn to professional tax consultants like our accountants in Barnsley.

Call the gbac team on 01226 298 298 or email us at info@gbac.co.uk to learn more about how we can get your tax affairs in order by optimising allowances and ensuring deadlines are met.

While the mandatory implementation of Making Tax Digital (MTD) for self-employed workers and landlords is still over a year away, the Autumn Budget 2024 expanded its scope.

Here’s a quick summary of what landlords and small business owners need to know for 2026.

Making Tax Digital timeline

Those expected to submit returns online for Income Tax Self-Assessment (ITSA), namely landlords and the self-employed, must adjust to the following implementation timeline:

  • 6th April 2026 – if earning more than £50,000 for the 2024–2025 tax year
  • 6th April 2027 – if earning between £30,000–£50,000 for the 2025–2026 tax year
  • By the end of the current parliament – if earning between £20,000–£30,000 for the previous tax year

These earnings are based on gross income, not on net profit after the deduction of expenses.

By stating these mandation levels, the UK government seems fully committed to implementing MTD for ITSA from April 2026, with no further postponements.

Outstanding issues with MTD

One of the main concerns about MTD for ITSA is that testing has been relatively small scale, with a lack of compatible software until recently and significant voluntary sign-up exclusions.

For example, those unable to voluntarily use MTD so far include anyone:

HMRC has yet to confirm how MTD will work for those with jointly owned property, as it would be impractical for each owner to keep digital records and submit quarterly updates separately.

You can find Making Tax Digital guidance on the government website, or speak to our accountants in Barnsley if you need professional support to move to digital accounting.

The gbac team is just a phone call or email away, ready to assist you with digital financial services and effective tax management in compliance with HMRC.

With many people making pension contributions to multiple providers throughout their working lives, it’s not surprising that some of these pots end up lost along the way.

A pension savings pot is considered lost if the provider is no longer able to contact the owner.

Over the last 6 years, the number of lost pension pots in the UK has doubled to 3.3 million – adding up to a total value of nearly £31 billion in missing pension funds.

Not sure if one of these could be yours? Here’s what you should know about missing pension pots, including how to find out if you have lost pension funds and how to recover them.

How are pension pots lost?

Some people may work for many different employers over several decades, with some periods of employment being relatively brief. Pension contributions made during short tenures are easy to overlook, especially if they occurred a long time before retirement.

If a saver forgets about a pension pot from a specific period of employment and loses contact with the provider, which often happens due to someone moving house without updating their address, the provider will be unable to reunite them with their lost pension pot.

However, this doesn’t mean the money is lost forever, as owners can track down lost pensions.

How to trace a pension pot

The first step to tracing a lost pension fund is to contact the associated employer, though this is only possible if the employer is still active, which may not be the case after many years.

If this is a dead end, the government offers an online service to help people find pension contact details, which is also available by phone or post. They can’t tell you if you have a pension pot or how much it is – they will only give you the contact details to enquire yourself.

This service can only help you track down a workplace or personal pension scheme if you know the name of the relevant employer or provider. If you don’t have these details, you may need to rely on a private pension tracing service that has access to information databases.

If you need professional help with pension planning and pension consolidation, our Barnsley accountants would be happy to help you build a tax-efficient pension pot.

Simply call 01226 298 298 or send an email to info@gbac.co.uk to discuss our financial services.

After being introduced in the House of Commons in October 2024, the Employment Rights Bill is working its way through Parliament, with reform consultations planned throughout 2025.

This bill aims to boost economic growth by delivering the biggest increase in employment rights in the UK for a generation – giving British employees more dignity at work and better living standards, while also supporting UK businesses that engage in good employment practices.

Further policy details will be published after the Employment Rights Bill receives Royal Assent. The new regulations will be informed by consultations carried out on issues including Statutory Sick Pay, trade union legislation, and zero-hours agency workers by the end of the year.

While the government isn’t expected to implement these reforms until 2026, businesses should still pay attention to the consultations and make preparations before the bill becomes law.

Read on to discover some of the main changes the Employment Rights Bill will bring about.

Day one employment rights

On top of strengthening the day one flexible working rights that came into effect in 2024, the new bill proposes day one entitlement to unfair dismissal protection, paternity leave and unpaid parental leave, minimum earnings, and statutory sick pay without a waiting period.

Currently, an employee must be employed continuously for 2 years to be protected against unfair dismissal, but the bill will enforce this protection from the first day of employment.

Additionally, employees can only claim paternity leave after working for 26 weeks or unpaid parental leave after 1 year of employment, but will soon have these rights from the first day.

This may be concerning for employers who fear they won’t be able to dismiss underperforming employees easily, but the bill allows probation periods with less laborious fair dismissal rules.

Zero-hour contract rights

Zero-hour contracts have been contentious for many years, as zero-hours workers aren’t guaranteed a specific number of working hours and are simply expected to work as and when requested.

However, when the Employment Rights Bill comes into force, employers must offer contracts with guaranteed hours over a 12-week period. They must provide reasonable notice for shifts and also pay workers for any last-minute cancellations or adjustments to shifts.

While zero-hours contracts won’t be completely abolished, the 12-week contracted periods may cause problems for employers who extensively rely on seasonal workers.

How will the Employment Rights Bill affect your business?

When the bill is eventually enacted, employers will lose options for working arrangements, and adjusting to the new rules is likely to collectively cost UK businesses billions of pounds a year.

Complying with the new employment rights package is likely to have a big impact on hospitality businesses, as the accommodation and food sectors rely on zero-hours contracts the most.

There are no confirmed enforcement dates yet, with limited information available through online factsheets on the government website. However, employers should be reviewing their employment practices in advance to start preparing for the new regulations by the end of 2025.

If your business needs assistance with admin and payroll to keep up with legislation changes, including minimum wage and tipping regulations, our accountants in Barnsley can help.

Get in touch with the team at gbac today by calling 01226 298 298 or emailing info@gbac.co.uk to discuss our financial services and what we can do to improve the efficiency of your business.

When purchasing buy-to-let properties, landlords in the UK now face increased surcharges following rate increases over the last few months – particularly property buyers in Scotland.

Rather than paying Stamp Duty Land Tax (SDLT), property buyers in Scotland are faced with Land and Buildings Transaction Tax (LBTT) and those in Wales must pay Land Transaction Tax (LTT).

Read on for a summary of the rate increases and tips on how to reduce Stamp Duty Land Tax.

Increased Land Tax Rates

The following surcharge increases apply from the listed dates onwards:

  • SDLT – rising from 3% to 5% from 31st October 2024
  • LBTT – rising from 6% to 8% from 5th December 2024
  • LTT – rising from 4% to 5% from 11th December 2024

In England, Northern Ireland, and Wales, the top rate is now 17% for properties costing over £1.5 million. In Scotland, the top rate is 20% for properties that cost over £750,000.

As an example, if a buy-to-let property cost £450,000, landlords in England and Northern Ireland would pay £32,500 in SDLT. This will increase from 1st April 2025, when the nil rate threshold is due to drop back to £125,000 after a temporary boost to £250,000 since 2022.

Meanwhile, the LBTT figure in Scotland would be considerably higher for a £450,000 property at £54,350, and a landlord in Wales would pay £36,200 in LTT for a property of the same value.

Ways to Reduce Land Tax

There are a couple of adventurous alternatives that could allow landlords in all four countries to significantly reduce Stamp Duty, such as:

  • Purchasing a mixed-use property (e.g. a shop with a flat upstairs)
  • Buying a commercial property to convert into a residence

However, converting commercial properties for residential use is a complex area requiring various planning permissions, so expert advice would be needed for this.

In either case, non-residential Stamp Duty rates would apply. So, for a £450,000 property, the cost would be just £12,000 in England and Northern Ireland, £11,000 in Scotland, and £10,250 in Wales.

How to Calculate Stamp Duty

The government website provides online calculators to help you work out the amount payable on a property transaction, which can be found by clicking the links below:

You can also seek advice from tax consultants like our accountants in Barnsley here at gbac.

If you need professional support from a financial adviser to help ease your tax burden, why not call us on 01226 298 298 or email info@gbac.co.uk and see what we can do for you?

As 2025 is now well underway, it’s once again that time of year when you need to consider your year-end tax plans. While there will be no Spring Budget this year, taxpayers must still get their tax affairs in order before the end of the tax year on 5th April.

Only a Spring Forecast is due in March rather than more tax reform announcements, but the changes announced in the Autumn Budget in October 2024 are enough to be getting on with.

Here is what you should be taking into consideration for your tax year-end planning:

Pension Contributions Planning

It was announced in the Autumn Budget that pension savings will be included in estates for Inheritance Tax (IHT) purposes from April 2027, rather than being paid to beneficiaries tax-free.

This means that while pension schemes still offer a tax-efficient way of saving for retirement, they are no longer as tax-efficient for estate planning, so this must be taken into account when reviewing your pension contributions this year.

Capital Gains Tax (CGT) Planning

The Autumn Budget also increased the rates of Capital Gains Tax (CGT) with immediate effect from October 2024. Annual gains exceeding the exempt amount of £3,000 are now subject to:

  • 18% CGT for non-taxpayers or basic rate (20%) taxpayers
  • 24% CGT for higher rate (40%) and additional rate (45%) taxpayers

If you haven’t used your annual exemption yet, you should think about doing so before the end of the tax year – otherwise you’ll lose it, as you can’t carry it forward to use in the next tax year.

Inheritance Tax (IHT) Planning

Though there had been speculation about the abolition of Inheritance Tax (IHT), the Labour government will be maintaining this tax on inherited personal estates with the same thresholds.

You’re still allowed to give away tax-free gifts of up to £3,000 a year, though these may be taxed if you pass away within 7 years. You can only carry this allowance forward for 1 year, so you should look into using your full exemption for the last 2 tax years if you haven’t already.

Marriage Allowance Planning

Married couples or civil partners can share some of their Personal Allowance if one of them earns less than the annual tax-free amount of £12,570 and the other is a basic rate taxpayer.

The lower-earning partner can claim Marriage Allowance to transfer up to £1,260 of their tax-free allowance to the higher-earning partner, reducing their tax bill by up to £252. You can backdate claims for up to 4 years, so claims for 2020–2021 are due to expire in April.

Income Tax Planning

It has been increasingly documented that the long-term personalincome tax threshold and allowance freezes are pushing more taxpayers into higher tax bands due to fiscal drag.

If you find yourself pushed into a higher tax bracket, this will affect your tax reliefs, possibly losing your Child Benefit or tax-free allowance. You can try to avoid this by spreading income and allowances across multiple years or transferring them between married partners.

Get tax planning advice from gbac

Tax planning is vital year-round if you want to make the most of all the allowances and reliefs that you’re eligible for, but it’s even more essential if you haven’t used them up before the end of the relevant tax year or eligibility period.

You shouldn’t rush into important tax decisions due to the pressure of the looming year-end deadline, though. Tax errors can be costly and hard to fix, which is why it’s best to seek professional advice before taking action.

Here at gbac, our team of accountants in Barnsley includes tax consultants and financial advisers, so be sure to reach out if you need guidance on efficient tax management.

You can call us on 01226 298 298 or send an email to info@gbac.co.uk to find out more.

Umbrella companies typically employ temporary workers on behalf of recruitment agencies and end clients. However, this structure leaves room for umbrella company fraud and tax avoidance, which is why they’re often under HMRC’s spotlight.

In 2022–2023, around 40% of umbrella companies didn’t comply with their tax obligations – but it isn’t difficult to form an umbrella company, so the individuals behind them can easily launch new ones after being shut down for non-compliance.

HMRC will therefore be making some changes to tackle non-tax-compliant umbrella companies, which will take effect from the start of the 2026–2027 tax year.

Changing PAYE and NIC responsibilities

From April 2026 onwards, the accounting responsibility for PAYE and National Insurance Contributions (NICs) – including employer NICs – will transfer from the umbrella company to the recruitment agency that supplied the worker.

If there is no recruitment agency in the labour supply chain, then these accounting responsibilities will move to the end client. This should encourage recruiters and end clients to make sure they don’t deal with illegitimate companies.

They can still contract with umbrella companies in the same way as before, but if an umbrella company fails to account for the right amount of Income Tax and NICs, the recruiter or end client will then be responsible for any shortfalls.

In turn, workers will benefit from recruiters and end clients avoiding non-compliant operators, as they won’t have to worry about facing unexpected tax bills.

Avoiding non-compliant umbrella companies

Smaller employment agencies will likely continue to outsource payroll functions to umbrella companies for convenience, but given the potentially high cost of using a non-compliant umbrella company, agencies – and end clients – should undertake diligent checks and ensure legal indemnities are in place.

While the new rules won’t come into force until next year, it’s advisable to update systems, scrutinize contracts, and re-evaluate fee arrangements well in advance.

For more information, you can read HMRC’s policy paper on the agency’s plans to tackle tax non-compliance in the umbrella company market.

It may also be beneficial to speak to financial advisers like our accountants in Barnsley, as the team here at gbac can offer a range of payroll and tax management services to ensure total compliance with HMRC.

To learn more, call 01226 298 298 or email an enquiry to info@gbac.co.uk.