HMRC is having a busy start to 2025 when it comes to Making Tax Digital (MTD) updates. As we reported earlier, the MTD timeline has changed for those due to start using the digital platform to submit Income Tax Self-Assessment (ITSA) returns from 2026.

Landlords and self-employed individuals earning more than £50,000 a year are required to implement digital tax records and returns by 6th April 2026, with the following new guidance available for three-line accounts and income from joint property ownership.

Three-line accounts

The three-line account approach confirmed by HMRC involves:

  • Self-employed people and landlords with annual income below the VAT threshold of £90,000 only giving one total expenses figure when completing a self-assessment tax return.
  • Classifying each amount as income or an expense while keeping digital records.
  • Submitting only the total income and expense figures to HMRC each quarter.

However, there is an exception if a landlord incurs residential financial costs, as these are not deductible expenses and must be recorded separately.

Joint property income

Joint property owners only need to keep records of their individual share of the property’s income and expenses. Landlords can choose to record quarterly income and annual expenses if they prefer.

Noting individual transactions isn’t necessary – HMRC only requires a total figure for each category.

If a joint property owner is eligible for the three-line account approach above, they can simply provide figures for total quarterly income and total annual expenses, as follows:

  • Every quarter – Submit a single income figure to HMRC.
  • At the end of the tax year – Report a total figure for expenses through the finalisation process.

MTD for Income Tax

The latest guidance from HMRC on Making Tax Digital for Income Tax can be found on the government website. This includes more information on the income and expense categories for quarterly updates in the absence of a three-line account approach.

If you are still unsure about your MTD obligations as a landlord or self-employed individual, you should seek professional support from tax consultants who can help you with digital systems.

Here at gbac, our Barnsley accountants would be more than happy to advise you on digital accounting and assist you with tax management. Why not get in touch by phone or email to learn more about our financial services and what we can do to help you?

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?

In the beginning…

We began our drive toward net zero in earnest in 2022, having had our efforts restricted in 2021 because of the pandemic.

We realised straight away that Net Zero is a mammoth task and we might not get there, but we were determined to try. In our efforts for success we would risk improvement and failure.

We knew little about the subject matter and we are still learning day by day.

But this is what we did, and it is also what we are still doing. It is a JOURNEY.

1) Found out more about Net Zero to understand the basics

To answer the question, “What does Net Zero mean and why does it matter?”, we:

  • Read lots of articles.
  • Participated in The Small Business Sustainability Basics Programme
  • Attended a Net Zero course
  • Increased our knowledge base and improved our understanding of the challenge.

2) Created a greenbac team and regularly reported back to our entire gbac team

We created a small dedicated team with enthusiasm for the issue and a desire to change our practices and improve our carbon footprint.

Our greenbac team then fed back to the entire gbac team through our whole team meetings so the entire office was looped in.

3) Engaged professional external support

As well as completing The Small Business Sustainability Basics Programme, we engaged a consultant through the Low Carbon Business Support Programme.

4) Measured our current carbon emissions and started planning to reduce them

We measured our first footprint in April 2022 with the help of our consultant.

It was a mixed picture, as it covered a 12-month period during which we had a few lockdowns and our team was taking a hybrid approach of working in the office and working from home.

5) Got involved with a movement

We refreshed our thoughts and got further support from the following using two different greenbac teams so that we felt assured and confident in what we could do.

  • Low Carbon/Net Zero Barnsley Programme
  • SYMCA Net Zero Programme

6) Re-calculated our carbon footprint

Time had passed. With the help of the team via the Low Carbon/Net Zero Barnsley Programme, we learned to calculate our own carbon impact.

We then extended our focus to include Scopes 1, 2, and 3.

7) Made a commitment to climate action and accessed tools to reduce emissions

Team gbac made a commitment to climate action by agreeing on small actions we can take as a firm so that we can reduce our carbon footprint.

We accessed tools to help us reduce emissions and disclosed our progress.

8) Found more support and some funding

The team at the Low Carbon/Net Zero Barnsley Programme helped us with our thinking on the next steps – what was impactful and what was possible.

They even assisted with signposting potential funding support.

9) Kept an eye on what others were doing

Throughout this journey, we have looked with interest at what others are doing to reduce their carbon emissions.

This is a global movement that will benefit everyone. Where we have been able to learn from others, we have done so.

10) Reduced electricity and gas usage

We had our carbon footprint from Scope 1 and Scope 2 emissions measured for the first time, but because we are a firm of accountants, the entirety of Scope 1 (direct) and Scope 2 (imported power and utilities) emissions result from our work in the office: running computers, heating, and lighting.

We immediately took action to reduce the use of electricity and gas as much as we could, which meant we:

  • Adopted an “off and completely off” policy to ensure that we did not leave PCs and other office equipment on standby out of office hours.
  • Changed our conventional lighting so that LEDs were used across the office.
  • Reduced the use of our air conditioning systems.
  • Made sure that the central heating system made the maximum use of thermostats and timers.
  • Carried out regular operations and maintenance checks.
  • Made sure our doors and windows are draught-free
  • Turned down our thermostats.
  • Adjusted our office blinds to maximise sunlight wherever possible, fitted Electric Vehicle Charging points at the office, and
  • Changed company cars to electric cars.

Ongoing considerations: Installation of solar panels on the roof.

The gbac charter: what we committed to do

  • Reduce our use of paper with the aim of becoming “paperless”.
  • Be flexible so that we can reduce commuting to work and increase productivity by implementing a 4-day week.
  • Be efficient in our use of electricity, gas, and water, and reduce overall usage.
  • Reduce all waste.
  • Recycle more.
  • Use sensor-activated lights where possible.
  • Be “green smart” with our purchasing choices.

Sustainability Report 2023

Here are the highlights of our 2023 Sustainability Report:

2023

tCO2

 2022**

tCO2

 Impact

tCO2

 %
Scope 1 7.59 6.77 +0.82 +12.1
Scope 2 6.29 7.58 -1.29 -17.0
Sub-total 13.88 14.35 -0.47 -3.3
Scope 3 26.50 N/A N/A N/A
Water 40.38 N/A N/A N/A

 

** 2022 covered a 12-month period in which we had pandemic lockdowns and a hybrid approach to working in the office and working from home.

Other metrics we have been tracking include:

Stationery and paper usage

31st March 2024 31st March 2023 Impact
Office stationery £1,195 £1,594 25% reduction
Postage £435 £1,454 70% reduction

 

Employee travel to work

  • 4-day working week – reduces travel to work by 1 day every week.
  • As of 31st March 2024, 75% of employees now do a 4-day week (71% in 2023).
  • This has resulted in a 6% reduction in travel time, travel costs, and emissions from car travel.

What does 2024 hold?

It seemed clear to us that we needed further help. Having taken part in the Low Carbon/Net Zero Barnsley Programme, we were assisted in identifying the next big push.

Solar power is our way forward to further positive change.

Further electricity use reduction will therefore be achieved through the installation of solar power.

We are now B Corp accredited!

B Corp companies are companies verified by B Lab to meet high standards of social and environmental performance, transparency, and accountability.

Being a B Corp certified company as of July 2024:

  • Demonstrates and verifies our desire to use gbac as a force for good.
  • Rewards our sustainability drive (ESG – Environmental, Social, and Governance).
  • Rewards and complements our investment in people (IIP).
  • Complements and underpins our investment in the planet and our journey to Net Zero.

Get in touch

At gbac, we are approaching our commitment to Net Zero with as much dedication as our commitment to delivering the best financial services to our clients.

To learn more about what we can do for you, browse our website or get in touch with our helpful team.