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.

Postgraduates with student loans will be liable for high effective marginal tax rates – which apply to every £1 above repayment thresholds – but partially or fully repaying all of their student loans might not make the most financial sense.

Regardless of the student loan plan type, the normal repayment rate is 9% above the specified threshold, which varies from £24,990 to £31,395 a year depending on whether it is Plan 1, 2, 4, or 5.

Postgraduate loans have a repayment rate of 6% on income over £21,000, so repayments for both undergrad and postgrad loans would have a total rate of 15%.

So, how might this affect higher earners, and is it worth paying off your student loans early if you have a Master’s loan too? We explain further below.

Marginal tax rates with student loans

The average employee with earnings exceeding the repayment thresholds for both an undergraduate and postgraduate loan will face an effective marginal tax rate of 43%.

This includes the 15% rate for both student loans, the 20% basic Income Tax rate, and the 8% rate for National Insurance Contributions (NICs) in this earnings bracket.

For those earning between £50,270 to £100,000 a year, this effective marginal tax rate will increase to 57%, including the 40% higher Income Tax rate and 2% for NICs.

Meanwhile, those earning from £100,000 up to £125,140 could face a hefty 77% rate. While NICs remain at 2%, for every £2 earned over £100k you lose £1 of your tax-free allowance, pushing you towards the dreaded 60% tax rate.

Unearned income is only liable for student loan repayments if it exceeds £2,000 a year and requires submitting a Self-Assessment Tax Return.

If you also earn income from a rental property, savings, or self-employment, you should therefore aim to keep this below the threshold to reduce your student loan repayments.

Making early student loan repayments

Despite ongoing high marginal tax rates, perhaps surprisingly, it may not be the best financial move to repay all or some of a student loan off early.

As an example, if an employee has a £28,000 doctoral loan and earns £35,000 a year, they will repay £840 a year based on 2024-2025 terms. These annual payments would total £25,200 by the time the loan balance is due to be written off in 30 years.

If this employee repaid £5,000 of the loan in the first year, it’s likely they would still end up repaying the same amount of £25,200 over the same length of time due to interest – which is set at the Retail Price Index (RPI) plus 3% for postgraduate loans.

In cases like this, there is no real advantage to making early repayments – but the pros and cons of doing so depend on the individual’s financial circumstances.

You can find guidance on student loan repayments on the government website for more information on specific repayment plans and thresholds.

If you would like professional advice on the most efficient way to manage your tax and student loan repayment liabilities, why not speak to our accountants in Barnsley?

Give us a call on 01226 298 298 or send an email to info@gbac.co.uk to find out how our financial advisers can help you manage your accounts effectively.

Despite the previous government’s 2024 Spring Budget proposing a new type of Individual Savings Account (ISA) that would extend the annual savings allowance for ISAs, this did not come to fruition in the Labour government’s 2024 Autumn Budget.

Instead, the current tax-free allowance for ISAs will be frozen for another 5 years after already remaining unchanged since April 2017 – staying at £20,000 until April 2030.

While it’s good news that this tax-free savings option won’t be scrapped, this long freeze is likely to result in fiscal drag if savings and interest aren’t managed appropriately.

Here’s a quick summary of how the frozen ISA limits could affect your savings.

ISA subscription limits

The £20,000 tax-free savings limit applies across all types of ISAs, including:

  • Lifetime ISAs
  • Cash ISAs
  • Stocks and Shares ISAs
  • Innovative Finance ISAs

Lifetime accounts specifically have a £4,000 annual tax-free limit, which is included in the total tax-free savings allowance and will also be frozen at this threshold until 2030.

Other types of savings accounts with a frozen annual allowance include Junior ISAs and Child Trust Funds (CTFs), which can accumulate £9,000 a year tax-free for the next 5 years.

A rumoured lifetime savings cap of £500,000 didn’t materialise, but neither did the previously mentioned UK ISA, which would have introduced an additional allowance of £5,000.

Fractional interests

Though HMRC previously stated that fractional interests (also known as fractional shares) could not be held within a Stocks and Shares ISA or CTF, the tax agency has confirmed this is actually possible under new regulations that came into effect in November 2024.

Fractional shares will be allowed under certain conditions, including being in a contractual arrangement. Regular savers can now acquire shares in international companies, but ISA managers must remove any fractional interests that aren’t eligible under the new rules.

Do you need ISA advice?

Currently, there are more than 4,000 savers in the UK with ISA saving pots worth over £1 million. Whether you’re one of them or you’re new to the world of ISAs and need help managing your savings, we can offer professional guidance here at gbac.

You can find HMRC’s basic ISA guide on the government website, but if you want in-depth advice on savings accounts or you’re looking for an ISA manager, you should get in touch with our team of knowledgeable accountants in Barnsley.

Just call us on 01226 298 298 to speak to the gbac team, or send your query by email to info@gbac.co.uk and one of our financial advisers will reach out as soon as possible.`

The increase in National Insurance Contributions (NICs) for employers that was announced in the 2024 Autumn Budget is due to take effect in a few months – from 6th April 2025.

The three primary changes to employer NICs include:

  • Cutting the starting point for payment from £9,100 to £5,000
  • Increasing the employer’s rate from 8% to 15%
  • Boosting the employment allowance from £5,000 to £10,500

While the greater employment allowance will act as an NIC credit that can help employers to reduce their liability, the payment threshold reduction will raise lots more revenue for the Treasury – and is the largest concern for retail, leisure, and hospitality businesses.

Under the new rules, the NIC cost of employing a part-time worker earning £175 per week goes up from zero to £11.85 per week. That’s before the National Living Wage increase of 6.7%, too.

It’s easy to see why UK businesses aren’t happy with this part of the Budget, but the impact of these changes to NICs won’t only affect employers in 2025.

How will rising NICs affect you?

The Office for Budget Responsibility (OBR) predicts that employers could react to higher NICs by reducing working hours, restricting pay rises, or cutting down on recruitment.

As NICs for self-employed workers now have a maximum rate of 6%, more individuals may consider working as one-person companies. However, this is contentious, as there has been plenty of recent litigation over the line between being an employee and a contractor.

For those who are already self-employed, the appeal of incorporating on tax grounds has decreased due to the rise in NICs – weakened further after previously increased dividend tax.

Employees, whose starting point for paying employee NICs remains at £12,570, may see indirect benefits like new or improved salary sacrifice schemes, which can save employers money by passing NICs to employees through pension contributions or company cars.

More information about the employer NIC changes can be found on the government website.

Need advice on NICs in 2025?

Whether you’re an employer, an employee, or self-employed, you’ll need to make sure that all your payroll and tax systems are up to date and compliant in time for the new tax year.

If you need help with managing National Insurance Contributions, or you’re looking for any other account management and HMRC liaison services, you’re in the right place.

Here at gbac, our accountants in Barnsley provide a wide range of bookkeeping and tax management services, so don’t hesitate to contact us to discover what we can do for you.

Simply call us on 01226 298 298 or send an email to info@gbac.co.uk and we’ll be in touch.