The Autumn Budget delivered a series of National Insurance Changes that will shape payroll , personal tax planning and business decisions over the coming year. These changes affect employees, sole traders and company directors. They will begin to influence pay packets and cashflow from early 2026. National Insurance is one of the largest tax costs for many individuals. Even a small change in rates or structure can have a noticeable effect on net income. For businesses these adjustments influence payroll forecasting and cashflow planning. November is therefore an important moment to understand the new rules and to prepare before the changes take effect. National Insurance The National Insurance changes introduced in the Autumn Budget focus on three areas. These are the employee rate, the self employed Class Four rate and the structure of Class Two contributions. Employee National Insurance will fall from the current main rate to a lower rate that the government believes will support working households and encourage earnings growth. This will increase net pay for millions of employees. Directors who take a salary from their limited companies will also see this rise in take home pay. For sole traders the change to Class Four contributions is significant. The main rate of Class Four will reduce. This lowers the overall tax burden on self employed individuals. It also helps those whose income has fluctuated during the year. The role of Class Two contributions is also being updated. Class Two has historically created a flat weekly charge for the self employed in exchange for access to state benefits. The Budget outlines plans to simplify how entitlement is recorded. This aims to reduce confusion and to create a more modern structure. These changes will take effect from April 2026. Although this is several months away, November is an ideal time to begin preparing. With Self Assessment deadlines approaching, understanding these new rules helps individuals plan ahead with clarity. How it impacts you The new rates influence the income of employees, directors and sole traders in different ways. Employees and directors who take a salary will notice an increase in take home pay once payroll systems update to the new rate. The precise amount will depend on earnings but even a small rise can support household budgets during the early part of the new year. For sole traders the reduction in Class Four contributions may ease the combined burden of income tax and National Insurance. It also makes profit planning more predictable. Many self employed individuals will welcome this change as it offers some support during a period of higher living costs. The updated Class Two rules may simplify record keeping for some and will reduce the chance of confusion about state benefit entitlement. Those who currently make manual Class Two payments should pay close attention to the new rules to ensure that their contributions remain accurate. For limited company directors who pay themselves through a mix of salary and dividends the changes may influence the most efficient balance. A lower National Insurance cost on salary may shift the calculation slightly. Reviewing this balance before April ensures the best approach for the next financial year. What you can do Begin by reviewing your expected income for the 2025 to 2026 tax year. If you are employed or take a salary as a director consider how the reduced employee rate will affect your take home pay. This helps with personal budgeting and forecasting. Sole traders should update their profit projections and estimate their new Class Four liability. Doing this early ensures that tax saving strategies such as pension contributions can be considered with greater accuracy. Anyone who currently pays Class Two contributions manually should check their HMRC account during the next few months. This will confirm how the new structure will apply in their specific circumstances. Businesses should make sure that payroll software is ready for the April update. Checking this in advance prevents errors and avoids surprises when running the first payroll of the new tax year. Directors should also discuss with their accountants whether their salary and dividend mix remains optimal under the new rules. At Ledgr Accountants we work with clients to apply these National Insurance Changes in a practical way. We help you understand how the new rules affect your income and what steps to take before the new rates become active. Ish Mukit Senior Accountant References https://www.gov.uk/national-insurance https://www.gov.uk/national-insurance-rates-letters https://www.gov.uk/self-employed-national-insurance-rates

Capital allowances remain one of the most valuable tools available to limited companies . They allow businesses to deduct the cost of equipment and machinery from their taxable profits. The Autumn Budget introduced new measures that strengthen the system and give companies more certainty when planning investment. November is the first full month for businesses to digest these updates. Many companies are finalising year end plans, so this is the ideal time to understand how the new rules affect purchases of equipment, vehicles and technology. With Corporation Tax remaining unchanged, capital allowances play a central role in managing tax burdens and improving cashflow. Capital Allowances The Capital Allowances update focuses on three key points. These include the extension of full expensing, the confirmation of the Annual Investment Allowance and the clarification of certain first year allowances. The Autumn Budget confirmed that full expensing will continue beyond the current tax year. This measure allows companies to deduct one hundred percent of the cost of qualifying plant and machinery in the year of purchase. The extension provides much needed stability. Businesses can now plan medium term investment without worrying that relief will be withdrawn at short notice. The Annual Investment Allowance remains set at £1m. This covers the vast majority of small and medium sized companies. It allows businesses to claim the full cost of most equipment and assets in the year the cost is incurred. This simplifies the process and reduces the need for complicated calculations over several years. There has also been clarification on which assets qualify for first year allowances. These include environmentally efficient equipment and certain low emission vehicles. The rules are now more consistent. This reduces confusion and helps companies decide whether a first year allowance or full expensing gives the better outcome. These changes are designed to support investment. The government sees capital allowances as a way to stimulate productivity and to encourage companies to modernise their equipment. For small businesses, the combined effect is a more predictable and generous system. How it impacts you For limited company directors, these updates influence both tax planning and purchasing decisions. When a business invests in new equipment, the timing of that purchase can affect the Corporation Tax bill for the year. The extension of full expensing means that bringing forward planned investment may produce immediate tax relief rather than spreading deductions over several years. Companies with upcoming year ends should review existing plans. Even modest purchases can create meaningful tax savings when deducted in full. This is especially helpful for businesses that have experienced fluctuating profits. Full expensing allows tax relief to match periods of higher earnings more closely. Directors should also consider the nature of the assets they intend to purchase. Some assets qualify for first year allowances that exceed standard writing down rates. This means the type of equipment chosen can affect the total tax relief available. Clarity in the updated rules helps avoid mistakes and ensures that businesses do not miss out on relief they were entitled to claim. Additionally, companies operating across multiple sites or using fleets should carefully assess vehicle and machinery plans. Low emission equipment may carry specific allowances that provide extra benefits. Understanding these options early in the purchasing process ensures the right decisions are made. What you can do Start by reviewing your planned asset purchases for the remainder of the year. Consider whether bringing those purchases forward or delaying them until after the new rules take effect will deliver the best tax outcome. Accurate forecasting is essential. It helps determine where full expensing or the Annual Investment Allowance can provide the most value. Next, gather a complete list of existing assets and review their current allowances. Some items may qualify for enhanced relief, particularly if they fall under new first year allowance categories. Checking this now avoids missing opportunities when preparing year end accounts. Speak with your accountant before committing to major purchases. The updated rules may shift the optimal timing or method of buying equipment. In some cases leasing arrangements may provide flexibility, while outright purchases may provide immediate tax relief. Each situation is unique and requires proper analysis. For businesses planning larger investments, consider whether cashflow allows for accelerated spending. When used correctly, capital allowances can significantly reduce Corporation Tax liabilities. This can free up funds to reinvest in staff, equipment or expansion. Ledgr Accountants works with clients to map out investment plans and forecast the tax impact. By reviewing options early, we ensure that every client gets the maximum benefit from the new capital allowance rules. Thowsif Mukit Commercial Manager References https://www.gov.uk/capital-allowances https://www.gov.uk/guidance/check-if-you-can-claim-full-expensing-or-50-first-year-allowances https://www.gov.uk/capital-allowances/annual-investment-allowance

Property taxation continues to evolve as the government looks to increase available housing and encourage better use of existing stock. The Autumn Budget brought new powers for local authorities and adjustments that will influence the cost of holding certain properties. These measures focus on empty homes, second homes and the wider use of council tax premiums. By late November, landlords and property investors have begun to assess the impact of these changes. Many investors rely on predictable property costs when forecasting rental income and planning refurbishments. Any change to local taxation therefore has a direct effect on financial planning. Property Tax The Property Tax Update centres on the expansion of council tax premiums and the powers local authorities now have to charge higher rates on empty or rarely used properties. The Autumn Budget confirmed that councils can apply a premium on homes left empty for more than one year. This reduces the previous two year threshold and brings many more properties into scope. The premium can reach up to 100% of the standard council tax bill. This creates a significant cost for owners who leave properties unused for extended periods. Second homes may also face higher charges. Local authorities now have the ability to set premiums on these properties where they are not the owner’s main residence. The aim is to increase the availability of homes in areas where demand is high. Although councils must choose whether to adopt these powers, the expectation is that many will introduce premiums over the next year. The government has also highlighted the need for clearer guidance when properties are improved or converted. This includes how changes to a property can influence its council tax band. Further detail is expected in due course as part of wider efforts to create a more consistent and transparent system. These measures do not alter the income tax rules for rental profits or the existing treatment of mortgage interest. However, they do affect the overall cost of holding residential property. Landlords must now consider whether planned refurbishments, long void periods or seasonal use could increase council tax bills. How it impacts you For landlords, the most immediate impact appears when a property is empty. Renovations, delayed tenant move ins or extended marketing periods may now push a property into the premium category more quickly than before. The shift from a two year threshold to a one year threshold means landlords must be more proactive when managing void periods. Owners of second homes may also experience higher costs. A property used only for holidays or occasional visits could now attract additional council tax charges. This may influence decisions around whether to let the property on a short term basis or to restructure its use to meet qualifying business rates criteria. For investors assessing new purchases, due diligence must include a review of local authority policies. Councils will adopt premiums at different times and at different rates. A property in one area may face significantly higher annual charges than a similar property in a neighbouring region. Understanding this variation is essential for accurate investment forecasting. Higher council tax premiums can reduce net rental income. Landlords must therefore adjust their cashflow projections and take action to ensure that rising costs do not undermine the financial viability of their portfolios. What you can do Begin by reviewing your local council’s policy on empty homes and second homes. Many councils have already published consultation papers that set out planned premium rates and implementation dates. Understanding these timelines helps landlords prepare and make informed financial decisions. If you own an empty property, reassess your refurbishment schedule. Bringing a property back into use earlier may avoid a premium. Even small adjustments to timelines can prevent unnecessary costs. For second home owners, evaluate whether the property meets any criteria for business rates or furnished holiday let classification. These categories have their own requirements and may offer lower council tax costs in some circumstances. Careful planning is essential before making any changes because each classification brings separate tax rules. For investors considering new acquisitions, factor council tax premiums into your long term calculations. The financial impact of higher annual council tax must be included alongside mortgage payments, maintenance costs and expected rental income. At Ledgr Accountants we support landlords and property investors as they navigate these changes. We help clients understand local council policies, assess the tax impact on their portfolios and plan property usage to remain efficient and compliant. For more detail on Property accounting, see this page: www.ledgr-accountants.com/our-services/accounting-services/property-accounting Ish Mukit Senior Accountant References https://www.gov.uk/council-tax-bands https://www.gov.uk/council-tax/second-homes-and-empty-properties

Making Tax Digital (MTD) is approaching its next major phase. From April 2026 many sole traders and landlords will begin using digital record keeping and submitting quarterly updates to HMRC. This marks one of the most significant changes to the tax system in recent years. Updated guidance released this autumn provides clearer detail on deadlines and the type of digital records required. By late November taxpayers are starting to consider how these rules will shape their work in the new year. Many already use bookkeeping software, but Making Tax Digital introduces strict requirements about how records are kept and how information is transferred to HMRC. This means early preparation is essential. MTD Updates The MTD Update confirms that the first phase of Making Tax Digital for Income Tax will begin in April 2026. This will apply to individuals with annual business or property income above fifty thousand pounds. The second phase will begin in April 2027 for individuals with income between £30,000 and £50,000. These thresholds provide a phased approach and allow taxpayers to prepare gradually. HMRC has expanded the Making Tax Digital pilot scheme. More taxpayers can now join even if they have additional income sources or more complex tax circumstances. The pilot is designed to test software compatibility and allow taxpayers to practise digital reporting before the rules become mandatory. This wider access marks a shift towards a stronger testing environment before full rollout. New guidance also clarifies what digital record keeping involves. Every business transaction must be recorded digitally. This includes income, expenses and property related costs. The digital software must retain these records and must be able to send quarterly updates to HMRC without the need for manual entry. This requirement aims to reduce errors and create a clear audit trail for each taxpayer. HMRC has also published a revised list of software products that meet the Making Tax Digital requirements. Taxpayers are encouraged to review this list and choose a product that is suitable for their business size and complexity. Early selection means there is more time to learn the system and avoid difficulties when quarterly reporting begins. How it impacts you For sole traders these changes affect how the business operates day to day. Digital record keeping will require information to be updated more consistently. This promotes better financial awareness and helps individuals understand their tax position long before the end of the tax year. It also reduces errors that often arise when records are updated only once a year. Landlords will also experience a shift. Under Making Tax Digital a separate digital record must be kept for each property. This means rental income, repairs, maintenance costs and letting fees must be recorded clearly for each individual property. Landlords with several properties will benefit from software that can organise information in a structured and reliable way. Company directors who file Self Assessment returns will also be brought into the system if they have property income or self employment income that exceeds the thresholds. Although company income is not within the scope of MTD for Income Tax, any personal income streams will be affected. Those who join the pilot early will gain practical experience with quarterly reporting. This reduces uncertainty and provides a chance to correct processes before the rules become mandatory. The pilot also allows taxpayers to check whether their software, record keeping and bank feeds perform correctly. What you can do Start by reviewing your current bookkeeping method. If you use spreadsheets or paper records it is sensible to begin exploring software. A digital system will become essential for compliance. Choosing software early ensures you can move at your own pace rather than rushing closer to the deadline. Next, review whether you are eligible for the Making Tax Digital pilot. Joining the pilot is voluntary, but it gives valuable experience and helps reduce pressure when the rules take effect. It also reveals whether your record keeping processes need updating. Begin recording transactions digitally even if you are not yet required to submit quarterly updates. This builds good habits and helps you identify gaps or areas where information is inconsistent. Digital records also provide clearer insights into cashflow and performance throughout the year. Speak with your accountant about how Making Tax Digital affects you. They can help you choose software, import data, set up categories and create routines for digital record keeping. Early preparation is the best approach for a smooth transition. Ledgr Accountants provides guidance and support for clients preparing for Making Tax Digital. We help clients select software, test digital submissions and set up reliable processes that meet HMRC requirements. For more detail, check out our services pages: www.ledgr-accountants.com/our-services/accounting-services/income-tax-mtd Thowsif Mukit Commercial Manager References https://www.gov.uk/guidance/use-making-tax-digital-for-income-tax https://www.gov.uk/government/collections/making-tax-digital-for-income-tax https://www.gov.uk/guidance/find-software-thats-compatible-with-making-tax-digital-for-income-tax

The start of a new year often brings mixed emotions around money. While December is a time of celebration and generosity, January tends to highlight the financial impact of that spending. For many households, this includes higher credit balances, reduced savings, and a need to rebalance monthly budgets. In January 2026, this reset feels particularly important. Interest rates remain relatively high compared to recent history, which increases the cost of borrowing. At the same time, everyday expenses such as food, energy, and transport continue to place pressure on household budgets. Together, these factors make January a critical month for financial clarity rather than avoidance. For Ledgr Accountants’ clients, household finances often connect directly to business finances. Sole traders , contractors , and directors regularly draw income from their businesses to support personal spending. Understanding the post Christmas financial position is therefore essential for both personal stability and wider financial planning. Household Finances After Christmas The Household Finances After Christmas picture in January 2026 reflects a familiar pattern. Consumer borrowing tends to rise in December as households rely on credit cards, overdrafts, and short term loans to manage festive costs. January then becomes the point at which repayments begin to bite. Interest charges are now a more prominent feature of household budgets. Credit card rates and overdraft costs mean that balances carried into the new year can take longer to reduce. This reduces disposable income and leaves households feeling constrained early in the year. Even modest balances can have a noticeable effect when interest accumulates month after month. Savings often take a temporary hit. Many households dip into emergency funds or savings accounts to cover December spending. Rebuilding those buffers can take time, particularly when regular bills resume at full strength in January. This reinforces the importance of reviewing finances early rather than allowing pressures to build quietly. Another key feature of January is behavioural. Households become more aware of spending habits and financial patterns. This awareness creates an opportunity. January is one of the most effective months to reset budgets, reduce unnecessary costs, and establish routines that support better financial outcomes throughout the year. How it impacts you For households, the impact is most visible in monthly cashflow. Higher debt repayments reduce flexibility and can create stress if budgets are already tight. This is especially relevant for households with variable income, such as the self employed or those relying on dividends. Irregular income makes it harder to absorb the cost of post Christmas borrowing. For small business owners , household pressure can spill into business decision making. When personal finances are stretched, there may be a temptation to draw additional funds from the business or delay tax planning. This can weaken longer term financial stability if not managed carefully. Families may also feel the impact emotionally. Financial strain often affects confidence and decision making. January can feel overwhelming if debt levels are unclear or unmanaged. Recognising this early allows households to take calm and constructive steps rather than reacting under pressure later in the year. The good news is that January also provides a clean starting point. Small changes made early in the year often have a greater cumulative impact than larger changes made later on. What you can do Start by reviewing your current position honestly. List outstanding balances, regular bills, and available income. Clarity is the foundation of control. Knowing exactly where you stand makes it easier to prioritise repayments and avoid missed payments or unnecessary charges. Next, focus on high interest borrowing. Reducing credit card and overdraft balances should take priority wherever possible. Even small additional repayments can significantly reduce interest costs over time. Where appropriate, consolidating borrowing or moving balances to lower interest options may provide breathing space. Rebuild savings gradually. You do not need to restore savings overnight. Setting a modest monthly target helps rebuild confidence and creates a buffer for unexpected costs later in the year. For those running businesses or working as contractors, align household and business planning. Ensure that personal drawings remain sustainable and that tax obligations are planned alongside household commitments. This avoids pressure when future tax payments fall due. At Ledgr Accountants, we help clients view finances holistically. By understanding both household and business positions, we support realistic budgeting, tax planning, and financial decision making that reduces stress and improves long term stability. January is not about perfection. It is about progress and control. Thowsif Mukit Commercial Manager References www.ons.gov.uk/peoplepopulationandcommunity/personalandhouseholdfinances www.moneyhelper.org.uk/en/money-troubles/dealing-with-debt

The Self Assessment Deadline is a key date in the UK tax calendar. Individuals with income that is not fully taxed through PAYE must submit a tax return to HMRC. By 31 January 2026, taxpayers must file their online Self Assessment return for the tax year 6 April 2024 to 5 April 2025 and pay any outstanding tax owed for that period. Despite the deadline being well known, many people reach January without having completed their return. Missing information, uncertainty about reporting requirements, or delays in gathering records often cause last minute pressure. As the deadline approaches, the risk of mistakes increases. Self Assessment Deadline The Self Assessment Deadline of 31 January 2026 applies to anyone required to file an online tax return for the tax year 6 April 2024 to 5 April 2025. This includes self employed individuals, landlords with rental income, and company directors with untaxed income. It also applies to individuals with significant income from dividends, savings, overseas sources, or capital gains. Some taxpayers are required to file even if they are also employed under PAYE. This often applies where additional income has not been taxed at source. First time filers are frequently unaware of this requirement until late in the process. By late January, many taxpayers will already have submitted their return. However, a sizeable number still need to file. These are often individuals with more complex income or those who underestimated how long preparation would take. Leaving submission until the final days increases risk. HMRC systems experience higher demand close to the deadline, and last minute issues can prevent timely submission. Filing as early as possible in January reduces pressure and allows time to correct errors if they arise. How it impacts you If a Self Assessment return is submitted after 31 January 2026, HMRC automatically applies a late filing penalty of £100. This penalty applies even if no tax is owed or if the return is only one day late. Interest is charged on any unpaid tax from 1 February 2026 onwards. If the return or payment is delayed further, additional penalties can apply after thirty days, six months, and twelve months. These charges can accumulate quickly and significantly increase the overall cost. Under time pressure, taxpayers often make avoidable mistakes. Common errors include failing to declare all income, incorrectly claiming expenses, or missing dividend or rental income. These errors can trigger HMRC enquiries and lead to additional tax and penalties later. If the deadline is missed entirely, the obligation to file does not disappear. HMRC may issue estimated assessments based on incomplete information. These estimates are often higher than the true liability and can only be corrected once the actual return is submitted. For business owners and landlords, uncertainty around tax liabilities can disrupt cashflow planning and complicate future payments on account. What you can do If you have not yet filed, act immediately. Submit the return as soon as possible, even if full payment cannot be made by 31 January 2026. Filing on time avoids the late submission penalty, and payment arrangements can often be agreed separately. Review the return carefully before submission. Ensuring income and expenses are reported accurately reduces the risk of future corrections or enquiries. Where uncertainty exists, professional advice is preferable to guesswork. If you believe you are no longer required to submit a Self Assessment return, contact HMRC formally to have the obligation withdrawn. Failing to file without confirmation can still result in penalties. If payment is a concern, HMRC may allow a Time to Pay arrangement. This must be requested promptly and usually requires the return to be submitted first. At Ledgr Accountants, we help clients navigate Self Assessment obligations, prepare accurate returns, and manage communication with HMRC. Acting early in January provides the best chance of avoiding penalties and reducing stress. For more detail, check out our services page: www.ledgr-accountants.com/our-services/accounting-services/self-assessment Ish Mukit Senior Accountant References www.gov.uk/self-assessment-tax-returns

As autumn draws to a close, so does the window for easy preparation. From October onwards, HMRC sends thousands of reminders about the upcoming Self Assessment deadline. The filing cut-off for the 2024–25 tax year is 31 January 2026, but waiting until January to start increases the risk of missing details or rushing through errors. By the end of October, most businesses have already received all their income information, bank statements, and expense data for the previous year. Starting now gives you time to review records, claim allowable expenses, and confirm that everything is accurate before submission. Self Assessment Preparation Self Assessment Preparation is not only about filling in forms. It starts with understanding what HMRC expects and what information you need to provide. If you are self-employed, you will need records of your business income, expenses, and any other taxable income such as interest, dividends, or property rent. Landlords should review rental income statements, letting agent fees, maintenance costs, and mortgage interest. Directors or shareholders must include dividends, salary, and benefits in kind. HMRC requires all figures to be backed by evidence, so accurate record-keeping is essential. Receipts, invoices, and digital copies of bank statements should be stored securely for at least five years after filing. Many clients now use accounting software that automatically tracks income and expenses, making it easier to identify deductions. The main reason for preparing in October is time. Filing early gives you a clear view of your tax liability. If you owe money, you can budget for it rather than face a large unexpected bill in January. If you are due a refund, you will receive it sooner. How it impacts you Preparing your Self Assessment early has practical benefits. It reduces stress, improves accuracy, and allows you to plan ahead. Late filings or mistakes can lead to penalties and interest charges, which are completely avoidable with forward planning. For sole traders , this process provides an overview of how your business performed last year. It helps identify spending patterns, missed expenses, and opportunities for better tax efficiency. Landlords benefit from the same insight, using their records to understand which properties generate the best returns and where costs can be controlled. Company directors who receive dividends or have multiple income sources can also plan more effectively. By reviewing tax liabilities now, you can decide whether to adjust your income strategy or make pension contributions before the current tax year ends in April. Starting early also helps your accountant. It gives them time to review and file everything properly without a rush. Working with your accountant now avoids the January bottleneck and ensures that questions are answered while you still have time to act. What you can do Start by gathering all relevant documents for the 2024–25 tax year. This includes: Income statements and invoices Bank statements and proof of expenses Employment records such as P60s or P45s Pension contribution statements Mortgage interest summaries for landlords Dividend vouchers for company shareholders Once these are collected, check that your details on the HMRC portal are up to date. Ensure your National Insurance number, business address, and bank details are correct. If you use accounting software, reconcile all transactions and review your reports for missing entries or duplicates. For those still using manual records, this is the time to consider moving to a digital platform, especially with Making Tax Digital (MTD) for Income Tax set to roll out in 2026. Contact your accountant to review your draft figures. They can confirm which expenses are allowable, help you estimate your final tax bill, and submit your return well before the deadline. At Ledgr Accountants, we guide clients through every step of the Self Assessment process. Our goal is simple: clear records, correct figures, and calm filing. Preparing now means no surprises later. For more detail on Self Assessments, see this page: www.ledgr-accountants.com/our-services/accounting-services/self-assessment Ish Mukit Senior Accountant References https://www.gov.uk/log-in-register-hmrc-online-services https://www.gov.uk/self-assessment-tax-returns/deadlines https://www.gov.uk/self-assessment-tax-returns

The Autumn Statement sets the tone for tax and spending in the months ahead. By late October the conversation is shaped by fresh public finance numbers and analysis from independent forecasters. Borrowing has improved compared with last year, yet the stock of public debt remains elevated. That mix suggests limited fiscal room and a focus on targeted measures rather than sweeping changes. Autumn Statement Preview The Autumn Statement Preview begins with pensions. Discussion this month has centred on whether the government could reshape pension reliefs or the way tax free cash is treated. The driver is the need to raise revenue without broad rate rises. Independent analysis emphasises that restricting higher rate pension relief would raise substantial sums, though it carries fairness and behavioural trade offs. Readers should expect careful language here rather than abrupt change, and should review current contribution plans in case allowances or access rules are refined. Property taxation is also in focus. Coverage this month highlighted the idea of higher council tax bands for expensive homes as a relatively simple lever compared with more disruptive options. That would not touch headline income tax rates yet could still raise material revenue. For homeowners and landlords the practical issue is cashflow and valuations. The sensible step now is to understand local banding and model the impact of any uplift on household budgets or rental yields. A third theme concerns the balance between income tax and National Insurance. With headline rate rises ruled out in many briefings, attention turns to threshold freezes and possible rebalancing between taxes on earnings and other income. Think tanks note that small changes to wage and tax assumptions can move the public finances a long way. The implication for individuals is to keep an eye on allowances and effective marginal rates, since adjustments to thresholds can change take home pay even when rates stay the same. Finally there is business taxation. Commentary in October stresses pressure points such as business rates and the treatment of reliefs, while also noting political commitments that constrain headline rate increases. For owners and directors the key is predictability. Forward plans should allow for modest relief changes or targeted base broadening rather than dramatic shifts in the main rates. Cashflow and investment appraisals should be tested against that more restrained outlook. Taken together these four themes point to a measured Statement. Public finances set a cautious backdrop. Targeted adjustments are more likely than wholesale reform. The wise approach is to prepare for small calibrations that still matter at the household and business level. How it impacts you Households face two immediate questions. First, how would a change in pension reliefs or access rules alter the value of planned contributions or withdrawals. Second, how would any property tax tweaks affect monthly budgets. It is sensible to review contributions, check current pension allowances, and look at local council tax banding. Those steps make it easier to move quickly if the Statement introduces refinements. Small businesses and contractors should plan for stability with selective changes. If reliefs are tightened or business rates are adjusted, the impact arrives through cashflow. That argues for updated forecasts and headroom in working capital. Directors should also track any moves that change the balance between salary, dividends and employer pension contributions, since even minor tweaks can shift the most efficient mix. What you can do Start with a calm audit. List upcoming financial decisions that could be sensitive to small rule changes. Pension top ups, dividend timing, bonus decisions and property related outgoings are good examples. Run simple scenarios so you know your range of outcomes. Next, tidy records. Clear, up to date digital bookkeeping makes it easy to react when rules are clarified. It also reduces the chance of errors as deadlines approach. Finally, set a review point. When the Autumn Statement is published, revisit plans within a few days. Most adjustments are manageable when they are anticipated. At Ledgr Accountants we will translate the Statement into practical steps for households, landlords and small firms so you can adjust with confidence. Thowsif Mukit Commercial Manager References   https://www.grantthornton.co.uk/insights/autumn-budget-2025/autumn-budget-2025-what-to-expect https://www.ft.com/content/8fce8947-a283-45cc-a31c-bdd4a2daeef3 https://ifs.org.uk/publications/options-tax-increases https://www.ons.gov.uk/economy/governmentpublicsectorandtaxes/publicsectorfinance

The government’s Making Tax Digital (MTD)  initiative is reshaping how the UK’s self-employed and landlords report income. The system aims to make tax administration more accurate, more efficient, and easier for everyone to manage. From April 2026, the first group of taxpayers will be required to keep digital records and send quarterly submissions through compatible software instead of a single annual return. By September 2025, this shift is no longer on the horizon as it is close enough to plan for. HMRC continues to expand the pilot programme, allowing early joiners to test submissions before full rollout. Many small businesses and landlords are using this time to review bookkeeping processes, select software, and begin digitising their financial records. Making Tax Digital (MTD) The MTD for Income Tax Self Assessment (ITSA) rules apply to individuals with total business and property income above £50,000 from April 2026. A second phase, covering those earning between £30,000 and £50,000, will follow in April 2027. Under this new system, taxpayers must maintain digital records of their income and expenses. They must also submit quarterly updates to HMRC using MTD-compatible software. These submissions will replace the annual Self Assessment return for those within scope. According to HMRC’s guidance updated in September 2025, the pilot programme remains open to eligible participants. Volunteers who sign up early can test digital submissions and ensure their systems meet the technical requirements. HMRC lists approved software providers that integrate directly with its systems, including options for both individuals and agents. The aim of MTD is to improve accuracy and reduce errors in reporting. By collecting data throughout the year, taxpayers will have a clearer picture of their liabilities and fewer surprises at year-end. This steady flow of information also allows HMRC to identify discrepancies earlier, making the entire system more transparent. How it impacts you The impact of Making Tax Digital will depend on how you currently manage your records. For those already using cloud-based accounting software, the transition may feel natural. Your existing system might already meet MTD standards or only need minor adjustments. For others still relying on spreadsheets or manual methods, this is the time to upgrade. Quarterly reporting will bring a new rhythm to financial management. Instead of gathering documents once a year, businesses will maintain regular digital updates. This encourages more consistent oversight of income, expenses, and tax estimates. For many clients, that means better budgeting and fewer unexpected tax bills. Landlords with multiple properties may benefit most from the digital approach. Tracking rental income, repair costs, and mortgage interest through one platform reduces errors and simplifies year-end reconciliation. For sole traders and contractors , submitting quarterly figures also means easier cashflow forecasting and more accurate profit tracking throughout the year. MTD for ITSA will not change how much tax is owed, but it will change how information is delivered. Those who prepare early will find the process less disruptive and will benefit from stronger record-keeping in the long term. What you can do Start by checking whether your total business or property income exceeds £50,000. If it does, you will be required to join MTD from April 2026. Even if you fall below this level, it is worth preparing now, as the scope will widen in 2027. Next, review your bookkeeping setup. If you currently use spreadsheets, consider switching to MTD-compatible software. HMRC maintains a list of approved providers that connect directly to its systems. Cloud-based solutions such as Xero, QuickBooks, and FreeAgent allow you to record transactions, store receipts, and generate reports automatically. If you are eligible, consider joining the MTD pilot scheme before the end of the year. Doing so gives you time to learn the process, test submissions, and resolve any technical issues before the system becomes mandatory. Early participation also helps identify any workflow changes needed within your business. Keep in mind that digital compliance requires consistent habits. Upload receipts regularly, reconcile bank transactions monthly, and review your accounts quarterly. This level of organisation not only ensures compliance but also provides more accurate insight into your financial position. At Ledgr Accountants, we help clients set up MTD-compatible systems, train teams to use them effectively, and monitor submissions throughout the year. Preparing now means you can move into the new system confidently, with reliable data and complete peace of mind. Ish Mukit Senior Accountant References https://www.gov.uk/guidance/use-making-tax-digital-for-income-tax https://www.gov.uk/guidance/sign-up-your-business-for-making-tax-digital-for-income-tax

By September 2025, the UK’s Public Finances remain under close scrutiny. The latest data from the Office for National Statistics (ONS) show that government borrowing has eased slightly compared with the same period last year, but the overall picture is still tight. Public sector net borrowing for August 2025 was around £12 billion, down from the previous year’s £13.5 billion. Total public debt remains above 95 percent of GDP, showing how little room there is for large spending increases or tax cuts ahead of the Autumn Statement. Debt interest costs have also stayed elevated due to the higher base rate and inflation-linked bond payments. This continues to limit how much flexibility the Treasury has when planning its budgets. As the government approaches its mid-year review, the balance between keeping borrowing under control and supporting the economy remains delicate. Public Finances The Public Finances update from the ONS confirms that the government has borrowed less than forecast for the first five months of the 2025–26 financial year. The improvement is largely due to higher tax receipts and moderate spending restraint. Income tax and corporation tax receipts have risen as wages and profits hold steady, but spending on welfare and debt servicing remains heavy. The Office for Budget Responsibility (OBR) has noted in its September commentary that the outlook for the remainder of the year remains challenging. Even though borrowing is lower than last year, it is still above pre-pandemic levels. The OBR’s latest projections suggest that the Chancellor has only limited fiscal headroom ahead of the Autumn Statement, meaning that significant tax cuts are unlikely. Debt interest costs alone are now absorbing more than eight percent of total government revenues which is a record in modern times. Meanwhile, the HM Treasury public finances bulletin reiterates that departmental budgets are feeling the squeeze from inflation. Although price pressures have eased from their 2023 highs, the cost of delivering public services has risen faster than planned. The Treasury has urged departments to prioritise productivity and savings to help meet spending targets. Investment continues to focus on infrastructure, green energy, and digital transformation projects that are expected to support longer-term growth. Taken together, these sources show a mixed fiscal landscape. Borrowing is improving, but debt is high, interest payments are heavy, and economic growth remains subdued. The government’s challenge over the next six months will be maintaining fiscal discipline while finding space for measures that encourage business confidence and investment. How it impacts you For households and business owners, the government’s approach to its Public Finances has direct consequences. A cautious stance on borrowing means there is less scope for sweeping tax reliefs or new support schemes in the short term. For individuals, that likely means steady personal tax thresholds and continued pressure on disposable income as inflation and interest rates remain elevated. For small businesses, tighter public spending can lead to slower payment cycles on government contracts and fewer new projects commissioned through local authorities. However, it also brings a measure of economic stability. Controlling debt helps to prevent sudden policy changes or emergency cuts, allowing firms to plan with more confidence. Contractors , landlords , and self-employed individuals will also watch the fiscal situation closely. The Chancellor’s decision on whether to prioritise growth incentives or deficit reduction in the Autumn Statement will influence tax planning, investment appetite, and consumer demand for the remainder of the year. What you can do Understanding the broader fiscal picture is useful for both short-term decisions and long-term planning. For businesses, now is the right time to review budgets , cashflow forecasts, and investment plans ahead of the Autumn Statement. If borrowing remains restrained, government policy is unlikely to deliver major tax changes before the end of the tax year, which makes this a good moment to strengthen balance sheets and reduce unnecessary costs. Individuals should continue planning around existing allowances and thresholds. Reviewing pension contributions, ISA savings, and dividend strategies before April 2026 ensures that you are using the current system to its full advantage. For landlords and contractors, it is sensible to keep digital records up to date, as HMRC’s focus on real-time data and compliance continues to grow. At Ledgr Accountants, we help clients interpret these macroeconomic signals and apply them practically. Whether you are forecasting for your business or managing personal finances, staying informed about the state of the UK’s Public Finances provides the context for smarter, more proactive decisions. Thowsif Mukit Commercial Manager References   https://www.ons.gov.uk/economy/governmentpublicsectorandtaxes/publicsectorfinance/bulletins/publicsectorfinances/august2025 https://assets.publishing.service.gov.uk/media/6874fa6f92691289bdb7d393/Public_Expenditure_Statistical_Analyses_2025.pdf https://obr.uk/docs/dlm_uploads/August-PSF-commentary.pdf

The summer of 2025 has brought a quieter rhythm to consumer lending across the UK. After two years of steady borrowing growth, the latest Bank of England figures reveal that households are becoming more cautious. The number of new credit card and loan applications fell again in July, marking the fourth consecutive monthly decline. This shift reflects not only tighter lending conditions but also the lingering impact of higher living costs. For small businesses and individuals alike, borrowing decisions now require more consideration than ever. Many households are focusing on repaying existing debt rather than taking on new credit. Meanwhile, higher interest rates continue to limit affordability, affecting both personal and business finance. Consumer Borrowing Trends The Consumer Borrowing Trends taking shape this summer tell a clear story of caution and restraint. Households are borrowing less, saving what they can, and focusing on paying down existing debt as the cost of credit remains high. The Bank of England’s Money and Credit report for July 2025, published in early August, shows that annual growth in consumer credit has slowed further to just over five percent. This marks one of the weakest readings since 2022. Lenders are reporting fewer applications for personal loans and new credit cards. Higher interest rates continue to discourage borrowing, with average rates for personal loans still around nine percent and credit card rates above twenty-three percent. Many households are also finding it harder to qualify for new credit, as banks apply tighter affordability checks to reflect the ongoing economic uncertainty. The ONS Quarterly National Accounts for April to June 2025 reveal that household savings have fallen slightly as living costs remain stubbornly high. The average saving ratio now sits just above six percent, down from the first quarter of the year. This suggests that families are relying more heavily on disposable income to cover essential spending and have less capacity to build financial buffers. Meanwhile, the HM Treasury Forecasts for the UK Economy, August 2025, highlight how this tightening in credit conditions is expected to slow consumer spending through the rest of the year. Although inflation has eased from its previous peaks, the lagging effects of higher rates are now visible in softer retail activity and lower household confidence. Together, these indicators point to a cautious period ahead, where consumers continue to prioritise stability over new borrowing. How it impacts you The current borrowing climate has a direct effect on everyday life. For individuals, the cost of credit has made large purchases less affordable. Buying a car, renovating a property or funding home improvements now requires higher monthly repayments, which can stretch household budgets. Even small borrowing decisions such as using a credit card to cover short-term gaps feel riskier in an environment where rates and charges are high. For business owners and contractors , personal borrowing often overlaps with business cashflow. Many use personal credit or savings to fund short-term expenses or investment. With borrowing costs rising, this approach has become less sustainable. It also highlights the importance of separating business and personal finances, ensuring each side is supported by clear records and proper planning. The cautious mood also affects demand for goods and services. As consumers reduce discretionary spending, smaller firms in retail, hospitality and trades may notice slower sales or delayed payments from customers. Recognising these trends early helps business owners adapt pricing, manage credit terms and plan for potential slowdowns in the months ahead. What you can do The best response to the current borrowing climate is to take stock. Review all existing credit agreements, from mortgages and personal loans to credit cards and overdrafts. Check whether your interest rates are fixed or variable, and understand when any promotional or discounted periods expire. Knowing these details helps you avoid surprises later. For households, aim to prioritise repayment of the most expensive debt first. High-rate credit cards and overdrafts erode disposable income quickly, and clearing them delivers immediate benefits. Even small overpayments can shorten repayment terms and reduce total interest paid. For business owners, reassessing financing structures is essential. Explore whether short-term borrowing can be refinanced into longer-term arrangements at more manageable rates. Maintaining accurate cashflow forecasts helps identify pressure points early. If customers are taking longer to pay, plan accordingly and review payment terms to protect liquidity. Finally, don’t face financial uncertainty alone. At Ledgr Accountants, we work with clients to build tailored cashflow and debt management plans. Understanding how broader borrowing trends affect your circumstances allows for better decision-making, whether you’re saving for growth or simply keeping things steady through the rest of 2025. Thowsif Mukit Commercial Manager References   https://www.ons.gov.uk/economy/grossdomesticproductgdp/bulletins/quarterlynationalaccounts/apriltojune2025 https://www.bankofengland.co.uk/statistics/money-and-credit/2025/july-2025 https://www.gov.uk/government/statistics/forecasts-for-the-uk-economy-august-2025

As the summer months settle in, many people take the opportunity to pause and reflect on their finances. For those running small businesses or working as sole traders , August can be an ideal time to look at pension contributions . The first quarter of the 2025/26 tax year has passed, but there is still plenty of time to plan ahead. A well-timed pension contribution can make a real difference to your overall tax position. It reduces taxable income, supports your retirement goals and can improve cashflow planning for the remainder of the financial year. Many clients use this point in the year to check whether their existing payments are on track with their income and profit forecasts. Pensions Contributions Pension contributions remain one of the most effective ways to reduce your tax bill while planning for the future. For the 2025/26 tax year, the annual allowance is £60,000 or 100% of your earnings, whichever is lower. Contributions within this limit qualify for tax relief at your marginal rate. Higher-rate and additional-rate taxpayers receive relief through Self Assessment , while basic-rate relief is added automatically by pension providers. For company directors and business owners, there is a further opportunity to make employer contributions through the company. These payments are usually deductible as a business expense, reducing Corporation Tax liabilities. To qualify, the contributions must be wholly and exclusively for the purposes of the business, meaning they should be reasonable and consistent with the size and profitability of the company. Sole traders and contractors can also benefit by contributing personally into a private pension or self-invested personal pension (SIPP). Even modest monthly payments can grow significantly over time, especially when combined with tax relief. Reviewing contributions mid-year makes it easier to adjust future payments rather than trying to catch up later. How it impacts you The impact of pension contributions goes far beyond retirement savings. For individuals, contributions directly lower taxable income, which may reduce exposure to higher tax bands or preserve allowances that are withdrawn as income rises. For example, those earning between £100,000 and £125,140 can use pension payments to bring income back below the threshold where the personal allowance begins to taper away. For company directors, pension contributions offer one of the most efficient ways to extract profits. Rather than drawing additional salary or dividends, a pension payment can provide long-term benefit while lowering the immediate tax burden. It is also a legitimate way to reward yourself for your efforts without increasing payroll costs. For many people, August is a good time to check progress. Income from the first few months of the tax year provides a reliable guide to what total earnings might look like. Using that data, you can decide whether your pension payments are on track or whether there is scope to add more before the financial year closes. This mid-year awareness often prevents the last-minute rush that leads to hasty and less strategic decisions in March. What you can do Start by reviewing your income and profit forecasts for the 2025/26 tax year. Once you have a clear picture, check how much of your annual allowance has already been used. If you are a company director, speak with your accountant about making employer contributions from the business rather than personal funds, as this can offer additional savings. If your earnings fluctuate, consider spreading contributions over several months rather than making one large payment at the end of the year. Regular payments help smooth cashflow and make it easier to manage both business and personal finances. Those who have not yet used their carry forward allowances from the past three tax years may also have scope to make larger payments without breaching limits. Reviewing these figures now ensures that no allowance is lost when the new financial year begins in April 2026. Finally, make sure that your pension provider and accountant are aligned. Keeping both informed means tax relief is claimed correctly and no payments are missed from the accounts. At Ledgr Accountants, we help clients plan contributions in a way that fits both personal goals and business strategy. It is a simple step that delivers long-term financial clarity. Ish Mukit Senior Accountant References https://www.gov.uk/tax-on-your-private-pension/annual-allowance https://www.gov.uk/workplace-pensions https://www.gov.uk/tax-on-your-private-pension/pension-tax-relief