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Monthly Tax News
October Tax News
Welcome to the October 2025 edition of Tax E-News. We hope that you find this informative. Please contact us if you wish to discuss any matters in more detail.
To view previous tax newsletters, click here
Practice News
Launch of United Growth Briefing Paper
On Wednesday 11 September we attended The House of Lords for the launch of the United Growth Briefing Paper prepared by The Entrepreneurs Network and supported by Sumer. The paper highlights to the policy makers the 5 key areas that are important to SMEs to allow them to grow and therefore help our economy grow.
DPC Chartered Accountants joins Sumer, as eleventh Hub
The new HMRC tool can help you to estimate what VAT might be owed or reclaimed by your business if you were to register for VAT. You are free to use the tool to explore multiple ‘what-if’ scenarios so that you can compare various situations and how you might be affected.
Empower half hour
Over the last two years, the tax-free allowance for capital gains tax has been cut by over three-quarters. For the tax year that recently began on 6 April 2024, the Annual Exempt Amount has been reduced to £3,000 (£1,500 for trustees). These reductions mean that more and more of us are likely to be affected by capital gains tax.
Blogs and Articles
Surprise jump in inflation: How to navigate your business
Inflation figures for January 2025 were released last week and showed a surprising jump to 3.0%, up from 2.5% in December. The Office for National Statistics (ONS) reported that the largest upward contribution to the change came from transport, and food and non-alcoholic beverages.
Wages growing faster than inflation
Latest figures released by the Office for National Statistics (ONS) show that average wages are continuing to grow faster than inflation. After adjusting for consumer price inflation (CPI), wages rose 3.4% between October and December 2024 when compared with the same period in 2023. Unemployment figures also appear to be encouraging, with the UK’s unemployment rate remaining at 4.4%.
40% business rates relief for film studios
Beginning last week (17 February), Local Authorities were able to begin awarding a 40% reduction in business rates bills to film studios. The tax relief is aimed at boosting the film industry in the UK and contributing towards more box office hits being made. The creative industries sector employs 2.4 million people and provides £124.6 billion to the UK economy.
Gloomy predictions: How can you maintain confidence
According to a survey of 2,000 businesses carried out by the Chartered Institute of Personnel and Development (CIPD), just over a third are planning redundancies or to recruit fewer people ahead of National Insurance and Minimum Wage rises this April. 42% of those surveyed have said they will increase prices to cover the increased costs. 25% are looking at cancelling or downscaling plans for investing or expanding their business.
CMA expresses concern about Topps Tiles expansion
Topps Tiles, which is the largest tile specialist in the UK, purchased 30 CTD Tiles stores as part of a deal after CTD entered administration in August 2024. CTD was previously the second largest specialist tile retailer in the UK, so this was a sizeable acquisition for the tile world.
Can you spot statistical misuse?
While numbers don’t lie, it’s well known that they can be manipulated to fit a story. Can you tell when it’s happening? The Office for National Statistics (ONS) are running a webinar that they describe as eye-opening and will do a deep dive into the world of statistical misuse.
Should you be paying tax on your side hustle?
Conventional approaches to work and earning an income are changing and with the cost of living ever rising, many now use various ways to make some extra cash outside of their main job. If that’s true of you then you may wonder whether you need to pay tax on those earnings. HM Revenue & Customs (HMRC) have launched a new campaign aimed at demystifying whether you need to tell them about your side hustle earnings so you can avoid any nasty surprises.
Extra flexibility for apprenticeships
The Department for Education have released details of additional flexibility coming to apprenticeships. When adult learners over the age of 19 start their apprenticeship course, businesses will now be able to decide whether they need to complete a level 2 English and Maths qualification (equivalent to a GCSE) in order to pass the course.
Reforms to homebuying coming
The government announced major plans last week to modernise the house buying and selling process. The reforms centre on digitalising and making property and identity data available electronically. This will allow mortgage companies and surveyors to have information within easy reach. It is thought that these changes will help to avoid surprises being encountered late in the process, with the waste of time and money that goes with that.
AI: The good and the bad
Artificial intelligence (AI) continues to make headlines as businesses work out how to make effective use of it. The government is continuing to push for growth in the AI industry. Last week, it opened bidding so that local authorities can submit proposals to become the next AI Growth Zone. It expects thousands of jobs to be created as a result and that it could rejuvenate local communities in various parts of the UK.
Data protection fees to increase by 29.8%
Following a consultation in 2024, the fees payable by data controllers to the Information Commissioner’s Office (ICO) will be increased by 29.8%. There is a £5 discount for direct debit payments and any organisations that are currently exempt from paying the fee will continue to be exempt.
HMRC late payment interest rates to be cut
Following the reduction in the Bank of England base rate, HM Revenue & Customs (HMRC) have confirmed that their interest rates will be reduced accordingly.
Late payment interest will reduce to 7% from 7.25%. Repayment interest – paid on tax repayments – will be reduced to 3.5%.
Crackdown on illegal working in the UK: Key highlights & takeaways
The UK government has intensified its crackdown on illegal working, with January 2025 seeing record enforcement activity. Home Secretary Yvette Cooper announced these efforts as the Border Security, Asylum, and Immigration Bill returned to Parliament last week.
Director fined for using unlicensed security operatives
The Security Industry Authority (SIA) has reported that a director for a Manchester-based security company has been fined for failing to comply with an investigation into the use of unlicensed security operatives. The law requires security operatives working under contract to hold and display a valid SIA licence. Merseyside Police reported to the SIA that unlicensed security operatives had been used at a venue in Liverpool.
Proposals on new energy saving requirements for landlords
The UK government is consulting on changes that will require private landlords in England and Wales to meet higher energy performance ratings by 2030. Currently, 48% of all private rented homes have an Energy Performance Certificate (EPC) of C or above. However, under new plans the government is proposing that by 2030 all privately let properties will need to meet a minimum EPC C.
Four new road schemes to be funded
Road schemes affecting Wiltshire, Leeds, Essex and Buckinghamshire were given approval last week following the grant of £90 million of government funding. The improvement in infrastructure these schemes will bring is expected to help businesses be able to transfer goods more easily and generate growth in the economy.
Are you thinking about starting a new business?
Starting a business in the UK is an exciting venture, but it comes with financial, tax, and accounting responsibilities that you must navigate effectively. Understanding what you will need to do from the outset will help make sure that you don’t miss anything, avoid unnecessary costs, and position your new business for success.
Base rate cut to 4.5%
The Bank of England reduced their base rate to 4.5% last week, as had been widely expected in the days leading up to the decision. The decision was made by a 7-2 majority. The minority of two members were looking for the rate to be reduced to 4.25%. In announcing their decision, the Monetary Policy Committee (MPC) outlined their thoughts on the economy.
