After discovering that a third of pension relief claims made by PAYE tax codes weren’t correct, HMRC is now tightening checks on claims submitted for pension tax relief.

If you submit claims for pension relief, keep reading to learn how this could affect you.

What’s the problem with pension relief claims?

Personal pension contributions are made after paying basic-rate tax, so only taxpayers in the higher rate or additional rate bands need to claim relief on private pension contributions.

However, HMRC found that basic-rate taxpayers often tried to claim pension relief, too, or even made claims after relief had already been granted through salary deductions.

To make matters worse, instead of using information from their pension provider, some claimants simply guessed how much they paid into their personal pension that year.

How are pension relief claims changing?

Going forward, it will no longer be possible to claim pension relief over the phone. From 1st September 2025, most pension relief claims must be made online instead.

Postal claims will only be possible for those with a valid reason for not claiming online.

Additionally, while HMRC previously only required taxpayers to provide proof of pension payments if they exceeded £10,000, the agency now requires supporting evidence for all relief claims.

This means you’ll need a letter or statement from your pension provider each tax year showing how much you contributed to your personal pension if you want to make a relief claim.

These changes won’t impact individuals who submit self-assessment tax returns, as their pension relief claims will continue through their tax return as normal.

So, who can claim pension relief?

Higher rate taxpayers and additional rate taxpayers who pay into a personal pension or workplace pension are entitled to claim an additional amount of tax relief.

For example, an additional rate taxpayer would receive a further 25% in pension relief.

In Scotland, taxpayers in the intermediate rate band or higher can apply for tax relief on private pensions.

If tax relief is not automatically given on their pension contributions, taxpayers can also make a claim.

Guidance on how to claim tax relief on private pension payments is available on the government website, or you can contact a financial adviser for personalised pension advice.

With retirement costs and the State Pension Age rising, it’s important to make sure you’re contributing enough to your personal pension to support you through retirement.

This includes optimising tax reliefs, which our Barnsley accountants can help you with.

Here at gbac, our experienced team will be happy to assist you with tax-efficient pension planning. Just call us on 01226 298 298 to get started, or email info@gbac.co.uk for more information about our services.

Before Parliament closed for its summer recess, the UK government announced there will be another review of the State Pension Age (SPA), which was last reviewed in 2023.

After being forced to make a U-turn on means-testing winter fuel payments, while standing firm against compensation demands from the Women Against State Pension Inequality (WASPI), the government most likely was not happy about the requirement to review the SPA again.

The news that the Department for Work and Pensions (DWP) will be undertaking two new SPA reviews was somewhat overshadowed by other statements, such as the relaunching of the Pensions Commission.

However, this SPA review will significantly impact individual and government finances.

Here’s what you should know about the current State Pension situation.

SPA increases in 2026 and 2044

After increasing from 65 years old in 2018–2020, the State Pension Age is now 66 years old for both men and women. From next April, this will gradually increase to 67 years old by April 2028.

While the first SPA review in 2017 suggested that it should rise to 68 years old in 2037–2039, the second review in 2022 proposed this should take place later in 2041–2043.

However, under current plans, the increase to 68 will be phased in from April 2044–2046.

These reviews prompted the government to complete another review before making a final decision about this. In any case, any changes to the SPA will have 10 years’ notice.

Will the SPA go up in 2037?

It seems unlikely that the original proposal to increase the SPA to 68 in 2037–2039 will go ahead, not least because this would be difficult to legislate with a 10-year notice period.

UK life expectancy projections have also fallen since the first review, giving more reasons to delay further SPA increases. At the time, it was predicted that a man and woman aged 68 in 2037 would live another 21.1 years and 23 years respectively, but the latest figures suggest 18.4 years and 20.9 years.

This decrease in life expectancy should lead to abandoning the SPA increase to 68 years old, but as this could save billions annually, the government is likely to push in the other direction.

Need advice on pension savings?

You can check your State Pension Age and State Pension forecast on the government website.

If your current age means that your retirement planning will be affected by future SPA increases, then it’s a good idea to review your own private pension savings, as well.

With nearly half of working-age adults in the UK not saving enough for their private pensions, more workers should consider consulting accountants for pension advice.

For example, we have a friendly team of experienced Barnsley accountants here at gbac, who can help you with planning retirement savings in the most tax-efficient way for your situation.

To find out more, call us on 01226 298 298, or email us at info@gbac.co.uk and we’ll be in touch soon.

As summer starts to fade, another Autumn Budget approaches… but what changes to UK tax rules can we expect the Chancellor of the Exchequer to announce this autumn?

Last year, Chancellor Rachel Reeves made statements about a £22 billion ‘fiscal black hole’ that she believed should be filled by restricting benefits like the Winter Fuel Payment for pensioners.

This led to a lot of speculation about tax rises ahead of the 2024 Autumn Budget, which is happening again a year later after no tax increases were featured in the 2025 Spring Statement.

This year, on top of slow economic growth, the £1.25 billion cost of backing down on means testing the Winter Fuel Payment and the £5 billion expense of reversing the controversial disability benefit reforms are driving the most recent round of speculation on possible tax changes.

Expected by early November, here are some of the tax announcements that could be on the table.

Potential tax updates in Autumn 2025

As the Chancellor has ruled out increasing Income Tax, National Insurance, and VAT for workers, this leaves the following targets for potential tax updates:

• Income Tax freeze – Originally frozen from 2022 to 2026, then extended to 2028, the Chancellor could further extend the allowance and threshold freezes until 2030.
• Pension contribution tax relief – Introducing a flat relief rate for pension contributions would be bold, but could generate billions from higher and additional rate taxpayers.
• Wealth Tax – Former Labour leader Neil Kinnock recently brought back the idea of introducing a wealth tax, which hasn’t been ruled out yet by the Labour government.

Extended freezes to encourage fiscal drag seem most likely, while a wealth tax seems less likely – as a recent report by the House of Commons Public Accounts Committee stated that gathering all the data needed to assess an individual’s total wealth is currently too difficult for HMRC.

Time to review your personal finances?

Have you reviewed your personal finances yet this year? If not, this could be a good time to take stock of your financial circumstances and make adjustments ahead of the next Autumn Budget.

It may be extremely beneficial to consult a professional tax adviser, who can help you take inventory of your savings, investments, and assets and guide your future tax plans.

Our knowledgeable accountants in Barnsley are here to assist with tax planning that uses allowances wisely, helping you reduce your tax liability while complying with HMRC’s rules.

For business or personal accounting support, contact the team at gbac by calling 01226 298 298, or email us at info@gbac.co.uk and we will be in touch soon with more information.

From January 2026, investors will need to comply with new reporting requirements for purchasing, selling, transferring, or exchanging crypto assets. This will help HMRC link crypto activity to tax records.

According to the latest figures, in the UK, around 7 million people own a crypto asset – such as Bitcoin, which has seen a significant increase in value in the last year.

If you’re a crypto investor or intend to become one soon, here’s what you should know about tax on crypto assets in the UK and what you must do to report your crypto activity to HMRC.

When are crypto assets liable for Capital Gains Tax?

Generally, ‘chargeable assets’ that will become liable for Capital Gains Tax (CGT) on disposal include possessions worth over £6,000, properties, and non-ISA shares.

Crypto assets are treated similarly to shares, meaning each type is pooled.

It will therefore be considered a disposal for CGT purposes if you:

• Sell a crypto asset (even if you don’t withdraw the proceeds)
• Exchange a crypto asset for a different type of crypto asset
• Use crypto assets as payment for goods or services
• Gift crypto assets to someone else (other than a spouse or civil partner)

Simply moving crypto assets between different wallets is not considered a disposal. However, a transaction using a crypto debit card or a cryptocurrency conversion will be.

Crypto asset reporting requirements

Investors will need to give their name, date of birth, address, and either a Unique Tax Reference (UTR) or National Insurance number to their crypto service providers.

Failing to disclose this information, or submitting an incorrect report, will result in a £300 fine.

Some investors may use crypto asset service providers based outside of the UK, but this won’t avoid the reporting requirements if the country the provider is based in follows the same rules.

However, there are several countries hosting crypto providers that haven’t signed up to these requirements yet, and using a decentralised exchange could also bypass them.

Non-voluntary disclosure to HMRC

Previously, HMRC relied on individuals making voluntary disclosures for crypto assets, but this led to high levels of non-compliance, contributing to the growing UK tax gap.

Crypto asset service providers will now report their collected data to HMRC, with the first reports for 2026 due by May 2027. HMRC can then check whether individuals have accurately reported disposals.

From 2024–2025 onwards, self-assessment tax returns now include a specific section within the CGT pages for individuals to report any gains from crypto asset disposals.

Further guidance on crypto asset reporting requirements is available on the government website.

Need help with tax management?

Failure to declare income and gains to HMRC and pay any tax owed can result in significant financial penalties, so it’s essential to make sure you’re doing it right.

It can be confusing to keep up with evolving tax rules for newer asset types, but if you want to cover all your bases, it’s a good idea to consult a professional tax adviser.

Here at gbac, we have a team of experienced accountants in Barnsley who can assist you with all areas of tax planning, ensuring you make the most of your tax allowances and remain fully compliant.

For a consultation on crypto asset tax management, call us on 01226 298 298 or email info@gbac.co.uk.

In an ominous update for UK workers, the government has confirmed changes and reviews to pensions, including adjustments to unused pension death benefits and the State Pension age.

Added to the fact that almost 50% of working-age adults currently aren’t making private pension provisions, this news could affect the retirement plans of millions of people.

What are the latest pension changes?

Unfortunately, it’s bad news for unused pensions and younger workers. The government is expanding the scope of Inheritance Tax (IHT) and increasing the minimum age to claim the State Pension.

Unused Pensions

Draft legislation that will take effect on 6th April 2027 is due to make most unused pension death benefits liable for IHT (though death-in-service benefits will be exempt).

State Pension Age

The State Pension Age (SPA) will increase to 67 years old by March 2028. An increase to 68 years old is set for 2044–2046, which will impact people born after 6th April 1977.

The next increase hasn’t been brought forward yet due to uncertainty about life expectancy.

Not enough people are saving for private pensions

Unsurprisingly, the UK government is very concerned that so many people aren’t saving privately for their own retirement pot, though this is typically due to low earnings.

There are over 3 million self-employed earners without pension savings, and the situation is worse for women and some ethnic groups. Overall, around 40% of people aren’t saving enough.

According to current estimates, a single person would need £32,000 a year to maintain a moderate lifestyle, while a couple would need almost £44,000 a year.

As the full State Pension is just under £12,000, this alone will not be enough to live on.

Due to such low numbers, even with employees being enrolled into pension schemes automatically, a pensions commission will investigate the obstacles to pension saving and publish a report in 2027.

Need help with pension savings?

It is important for working-age adults to make adequate provisions for their future. If you need professional guidance on setting money aside for your retirement, we can help.

Here at gbac, our experienced Barnsley accountants can assist self-employed individuals and employed workers to plan and save for their family’s financial future.

Whether you need help tracing lost pensions or setting up new savings accounts for your private pension, you can come to us to discuss the most tax-efficient options for your circumstances.

Simply phone our team on 01226 298 298 or email your query to info@gbac.co.uk and we’ll be in touch.

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.