Strategies to reduce the impact of recent Employer’s NIC increases The recent increase in National Insurance Contributions (NIC) for employers is adding to the financial pressure many businesses are already facing from inflation, higher borrowing costs, and general economic uncertainty. For businesses with larger payrolls, these NIC rises can have a noticeable impact on monthly cash flow. The good news is that there are strategies available to help manage and reduce the impact of these additional costs. Strategies to help manage NIC increases Review salary sacrifice schemes – Benefits such as pension contributions, cycle-to-work schemes, or electric car arrangements can reduce gross pay, which in turn lowers NIC liabilities. Increase pension contributions instead of salaries – Offering higher employer pension contributions can reward staff without triggering higher NIC costs that come with salary rises. Assess bonus structures – Some non-cash benefit schemes can be structured to minimi

If you're a subcontractor working under the Construction Industry Scheme (CIS), there's a good chance you may be due a tax refund when the 2024/25 tax year ends. This guide explains when to expect a refund, how it works, and what HMRC might do if they query your claim. --- 🔍 Why Many CIS Subcontractors Receive a Refund Under CIS, contractors deduct 20% tax from your payments before you receive them (or 30% if you’re not registered). These deductions are sent to HMRC and counted as advance tax payments. But often, the deductions taken exceed the actual tax you owe, because: You can claim the personal allowance (up to £12,570 for 2024/25) You may have had periods without income You can deduct business expenses (tools, materials, travel, phone, insurance, etc.) Once your tax return is submitted, HMRC compares your actual tax liability with what’s been deducted – and if you’ve overpaid, they’ll issue a refund. --- ✅ You’re Likely to Get a Refund If: You are a sole trader under CIS You’ve

Don’t miss out on these tax planning opportunities Several important tax and reporting deadlines fall in early July. We recommend that you take action now to avoid penalties or miss out on planning opportunities. Deadline to repay private fuel costs – 6 July 2025 – planning opportunity A reminder that if you drive a company car and your employer pays for your private fuel, you can avoid the fuel benefit tax charge for 2024–25 by repaying the full cost of the private fuel to your employer by 6 July 2025. This is a valuable tax planning opportunity that may significantly reduce your personal tax bill. You will need to keep a clear mileage log and apply HMRC’s published advisory fuel rates to calculate the repayment. Report employee benefits on forms P11D and submit P11D(b) – deadline 6 July 2025 Employers must report any taxable benefits provided to employees or directors during the 2024–25 tax year. This includes company cars, medical insurance, interest-free loans, and other non-cash p

As a sole trader in the UK construction industry, understanding what expenses you can legally claim is essential for managing your tax bill and keeping your business financially healthy. Whether you're laying bricks, fitting kitchens, or managing a team of subcontractors, knowing which costs are deductible can make a big difference to your bottom line. This guide outlines the key allowable expenses you can claim as a construction professional, helping you stay compliant with HMRC while making the most of your hard-earned income. 🔧 1. Tools & Equipment Purchase or hire of hand tools, power tools, ladders, scaffolding, etc. Repairs and replacements. Protective gear (e.g. helmets, boots, hi-vis jackets). 🏗️ 2. Materials & Supplies Raw materials like timber, cement, bricks, plaster. Consumables like nails, screws, sandpaper. 🚐 3. Vehicle Costs If you use a vehicle for business: Mileage allowance (45p per mile for the first 10,000 miles, 25p after). Or actual costs: fuel, insurance, road

Don’t Lose Your Child Benefit: What to Do If Your Child Turns 16 This Year If your child is turning 16 in 2025, there’s an important deadline you need to know about to ensure you continue receiving Child Benefit payments. Why You Need to Act by 31 August 2025 Child Benefit payments automatically stop on 31 August following a child’s 16th birthday—unless HM Revenue and Customs (HMRC) is informed that your child is continuing in approved education or training. To keep receiving these payments, you must notify HMRC before that date. Here’s what’s at stake: £26.05 per week (£1,354.60 per year) for your eldest or only child £17.25 per week (£897 per year) for each additional child What Counts as Approved Education or Training? Child Benefit can continue until your child turns 20—if they’re in one of the following: Full-time non-advanced education such as: A Levels T Levels NVQs (up to Level 3) International Baccalaureate Scottish Highers Approved unpaid training, including: Wales: Foundatio

Do you need to register for the 2024-25 tax year? Have you started working for yourself or letting property? You may need to register for Self-Assessment If you became self-employed or started letting out a residential property during the 2024–25 tax year, you may need to register for Self-Assessment with HMRC. It is important not to put this off. The registration deadline is 5 October 2025 and missing it could result in financial penalties. Many people assume that because they are paying tax under PAYE for their main job, they do not need to register for anything else. But if you have additional untaxed income, whether from a side business, self-employment, or letting out property, the onus is on you to tell HMRC and file a Self-Assessment return. Why you may need to register for Self-Assessment You must register for Self-Assessment if any of the following apply to your circumstances during the tax year 6 April 2024 to 5 April 2025: You became self-employed as a sole trader or freelan