Landlords: Big changes are ahead

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Just one in six landlords say they are fully prepared for the Renters’ Rights Bill, just months away from the legislation going live.

More than a third have either not heard of it or don’t know what it means for them, according to a new survey of 1,000 property investors.

Another 16 per cent have heard of it, but know very little about it, with 32 per cent saying they have a general understanding but still have questions.

The bill is entering its final stages in the Commons and is widely expected to be passed into law before the end of this month.

The changes in it are wide-ranging for landlords. It has been described as the biggest shake up to the private rented sector in more than 30 years.

The measures contained in the bill, include the abolition of Section 21 ‘no-fault’ evictions, a shift to open-ended periodic tenancies, and stronger Section 8 grounds for possession.

There will be limits on rent increases to once a year through a Section 13 notice, an end to rent bidding wars, a ban on asking more than one month’s rent upfront, plus new rights for tenants to request pets and protection from discrimination.

The government says that the bill will improve the current system for both the 11 million private renters and 2.3 million landlords in England. It says: “It will give renters much greater security and stability.”

The National Residential Landlords Association (NLRA) is advising its members to get ready for the changes.

That advice includes reviewing their portfolio, inspecting their properties and addressing any potential hazards.

It also says landlords should look at their processes around tenant referencing, advertising and logging complaints and issues.

And, if you use an agent to let or manage your properties, check they are ready for the changes.

Warning over bogus Stamp Duty claims

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Homebuyers are being warned to avoid Stamp Duty Land Tax scams following a landmark Court of Appeal decision.

HMRC is calling on people purchasing properties to be vigilant of tax agents offering to secure Stamp Duty Land Tax (SDLT) repayments on their behalf where repairs are needed to a property they have bought.

Some agents have suggested that, for a fee, they can reclaim SDLT the buyer has already paid by saying that the property is non-residential, because it’s uninhabitable.

However, HMRC warns that making claims of this kind often leave the homeowner liable for the full amount of SDLT, plus penalties and interest.

A recent Court of Appeal judgment has confirmed that housing in need of repair is chargeable at the residential rates of SDLT, and that repayment claims based solely on a property’s condition are not valid.

HMRC says the decision confirms its long-standing view that if a property requires repairs but retains the fundamental characteristics of a dwelling, it is still suitable for use as a dwelling and attracts residential rates of SDLT.

A key factor in determining suitability is whether a property had been previously used as a dwelling.

HMRC now says it is taking decisive action on spurious SDLT repayment claims, using civil and criminal powers to deal with the minority who undermine the tax system.

Anthony Burke, HMRCs deputy director of compliance assets, said: “The Court of Appeal’s decision is a major win, protecting public funds.

“Homebuyers should be cautious of allowing someone to make a Stamp Duty Land Tax repayment claim on their behalf. If the claim is inaccurate, you could end up paying more than the amount you were trying to recover.”

Anyone who is unsure of the rules should check the SDLT guidance on GOV.UK.

‘Side hustlers’ urged to get tax returns sorted now

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HMRC is encouraging people with additional income streams to understand their tax obligations and get ahead of the January deadline rush.

If you earn more than £1,000 from additional income, you may need to register for Self Assessment.

Filing now means you will know your tax situation sooner and can spread payments over time.

So-called ‘side hustles’ can range from online selling and content creation to dog walking and property rental.

The £1,000 threshold is key: anyone who earns more than this from their side hustle in a tax year may need to register for Self Assessment and complete a tax return. This includes gains or income received from cryptoassets.

New entrants to Self Assessment must register to receive their Unique Taxpayer Reference.

HMRC research has shown many people are unaware that they may owe the taxman money for their additional income streams.

Myrtle Lloyd, HMRC’s director general for customer services, said: “Whether you are selling handmade crafts online, creating digital content, or renting out property, understanding your tax obligations is essential.

“Filing early puts you in control – you will know exactly what you owe, can plan your payments, and avoid the stress of the January rush.

“You don’t need to pay immediately when you file – you have until 31 January to settle your tax bill.”

The deadline to submit a Self Assessment tax return online and pay any tax owed for the 2024 to 2025 tax year is 31 January 2026.

Early preparation is particularly important for sole traders or landlords with a qualifying income over £50,000, as they will also need to get ready to start using Making Tax Digital (MTD) for Income Tax from April 2026.

This will require digital record-keeping and quarterly updates using compatible software.

• To discuss any issues raised by this article please contact me on 01772 430000

Give your business a Boost

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Lancashire businesses are being urged to take advantage of a fully funded service that helps them navigate, identify and access the most relevant business support available.

The call comes from Boost; Lancashire’s Business Growth Hub, after latest figures reveal that more than 2,000 businesses have received assistance through the service since September 2023.

Between September 2023 and March 2025, Boost, which is led by Lancashire County Council, assisted 2,108 businesses.

This included direct support through Boost’s own programmes, guidance on accessing finance and referrals to regional and sector-specific support schemes.

Around two thirds of these businesses have never previously received Boost support.

The support has also led to the creation of more than 230 new jobs, while enabling the launch of over 30 new businesses, and supporting over 150 entrepreneurs planning to start a business.

In the same period, Boost helped businesses secure over £4million in funding offers through various finance providers.

Established in 2013, Boost is one of 38 Growth Hubs across the UK, and continues to play a key role in Lancashire’s economic development.

County councillor Brian Moore, cabinet member for Economic Development and Growth at Lancashire County Council, said: “Lancashire, like the rest of the UK, continues to experience a fast-moving and dynamic business landscape. We’re seeing many businesses in growth mode, while others are navigating ongoing uncertainties.

“Throughout it all, Lancashire County Council remains committed to backing our business leaders and entrepreneurs.

“It’s encouraging to see more businesses turn to Boost for support. We know there are many more who would benefit from the valuable service it offers. They must get in touch.”

Speaking about the latest results, Andrew Leeming, Boost programme manager, said: “Whatever the challenge or opportunity, Boost is in the corner of business leaders, and we are now widely recognised as a trusted business support partner. We’re proud to see more companies turning to us as a first port of call.

“While we deliver direct support programmes at certain periods of the year, the core purpose of the Growth Hub is helping businesses identify and access the right support at the right time, for their specific needs.

“Our dedicated business helpdesk team have over 12 years helping businesses navigate the business support landscape.

“Despite a changing support landscape, there remains a wealth of high-quality help available, and I strongly encourage business leaders to speak with our team to tap into this support.”

• To discuss how WNJ can help your business on its growth journey please contact me on 01772 430000

Companies House starts to verify identities

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A new service that allows individuals to verify their identity directly with Companies House is up and running.

More than six million people will need to comply in the 12 months after identity verification becomes a legal requirement later this year.

Anyone setting up, running, owning or controlling a company in the UK will need to prove they are who they claim to be.

The introduction of identity verification is one of the key changes to UK company law under the Economic Crime and Corporate Transparency Act 2023.

The landmark legislation gave Companies House new and enhanced powers to help disrupt economic crime and support economic growth.

The government says identity verification will provide more assurance about who is setting up, running, owning and controlling companies in the UK.

People can verify their identity directly with Companies House through GOV.UK One Login or through an Authorised Corporate Service Provider (ACSP).

The voluntary period for identity verification opened at the end of April. The government says taking a phased approach reduces the burden on companies.

Companies House chief executive Louise Smyth said: “Identity verification will play a key role in improving the quality and reliability of our data and tackling misuse of the companies register.

“To save time later, we encourage directors, people with significant control of companies (PSCs) and those filing information with Companies House to verify their identity during the voluntary window.

“We expect identity verification to become mandatory from autumn 2025. To reduce the burden on business, the identity verification requirement for existing directors will be integrated into the annual confirmation statement update process.”

AI and digital government minister Feryal Clark added: “Ensuring trust and transparency in the digital age is vital.

“Identity verification at Companies House through our GOV.UK One Login service will make it easier to do business with confidence – protecting entrepreneurs, consumers, and the UK economy from fraud and financial crime.

“By embracing digital identity checks, we’re reducing red tape while strengthening our defences against abuse of the system.”

The verification process will need to be carried out if you are:

• A director
• The equivalent of a director – this includes members, general partners, and managing officers
• A Person with Significant Control
• An Authorised Corporate Service Provider (ACSP) – also known as a Companies House authorised agent
• Someone who files for a company, for example a company secretary

• To discuss any issues raised in this article please contact me on 01772 430000

Apprentices may be a smart investment

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With employers finding it hard to recruit good skilled workers and both the inflationary and government-imposed increases to staff costs, there are many advantages to taking on an apprentice.

With the increase in minimum wage being so much higher than inflation, many employers may be put-off employing young people.

And understandably, an 18 per cent increase for 16-17-year-olds and 16.3 per cent rise for 18-20-year-olds, who will not have much experience, may reduce the opportunities for the next generation to gain the experience needed to progress.

However, there are many reasons why employers should look to offer these age groups an opportunity and an apprenticeship might be the ideal way.

The benefits of taking on an apprentice include the opportunity to develop skills according to needs of the business. If you’ve spotted skill gaps or areas of potential, you can use an apprenticeship scheme to train up new employees in these areas from day one.

Going down the apprenticeship route is a good way of attracting new talent. Apprentice outputs usually surpass their associated costs to the employer, delivering a net benefit to during their training.

Apprentice outputs usually surpass their associated costs to the employer. The Federation of Small Businesses says the estimated yearly gain for employers in the UK is between £2,500 and £18,000 per apprentice during their training period.

Apprentices are eager to learn and are enthusiastic about the qualification they’ve chosen and they can bring new perspectives to your business, especially if they are younger and familiar with new technologies.

Going down the apprenticeship route can also be a way of reducing staff turnover and recruitment costs. And giving a young person the chance to develop will also improve your company’s image.

There are financial benefits to hiring apprentices, including financial assistance with the cost of training.

Depending on your business size and eligibility, most apprenticeship training costs are either fully or partially (95 per cent) funded by the government, helping you to upskill your team on a budget.

Also, there is no National Insurance to pay for someone under-25, if the salary is under £50,270.

It is important to remember that when hiring an apprentice, employers must use the correct apprenticeship agreement, rather than using a standard contract of employment.

• To discuss any issues raised by this article please contact me on 01772 430000

BiKs payroll reporting is rolled back

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The government has announced additional time for businesses to prepare for the introduction of mandatory payrolling for benefits in kind (BiKs) and taxable employment expenses.

In a move that will be welcomed by hard-pressed small businesses, mandatory payrolling will be introduced from April 2027 rather than April 2026. HMRC says it has made the change following external feedback.

In a statement announcing the delay it said: “This will provide more time for software providers, employers, tax agents and other stakeholders to prepare for the change.”

A technical note advising of the change of date also provides more operational information on mandatory payrolling so that businesses can adapt to the changes in time for April 2027.

The move seems like common sense and should help most small businesses, particularly those individuals faced with additional administration and costs of Making Tax Digital for Income Tax and the additional costs imposed by the increases to employers’ National Insurance contributions.

Biks are goods and services that are provided by companies to an employee for free or at greatly reduced cost.

The introduction of mandatory payrolling for BiKs is all part of HMRC’s plan to simplify and modernise the UK tax system.

When it comes into force the new reporting system will be mandatory for most benefits in kind and expenses. Employers will also be able to payroll employment-related loans and accommodation on a voluntary basis from April 2027.

• To discuss any issues raised by this article please contact me on 01772 430000.

The cost of Trump’s tariffs on pensions

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Individuals saving into a defined contribution pensions scheme are set to be the most impacted by the economic turmoil created by US President Donald Trump’s tariffs, according to a new report.

In the wake of the “economic turbulence” felt across the globe by the president’s actions, the Society of Pension Professionals (SPP) has produced a study looking at the possible effects on people’s pension pots.

It says: “Given the scale of the equity market falls since early April 2025, and the fall in government bond yields, it is possible that some DC (defined contribution) savers may see a reduction in retirement income of up to 20 per cent.”

And it adds: “Given the speed and volatility of such moves, those individuals may decide to delay taking their pension where possible.

“This may be a sensible step if markets are to recover in the short term but unfortunately nobody knows if a short-term recovery is likely. Deferring retirement means the savings pot remains invested and has the potential to grow but the plan value can go down as well as up.”

The impact on the UK’s 11 million-plus retirees will depend on how pensioners have funded their retirement.

For the 1.2 million who rely on nothing but the state pension, their incomes will not be affected. Likewise, those with a fixed annuity should not be affected by the current market turbulence because their income in guaranteed.

However, the report adds: “DC savers who regularly sell a small portion of their investments to fund their retirement (known as drawdown) will face a difficult decision.

“Do they sell less today, resulting in less income, in the hope that their pension pot will recover in the future or do they keep drawing down the same amount, knowing that they may have less to depend on in the future?

“Withdrawing during a downturn is always likely to reduce funds faster, so taking independent financial advice on a flexible withdrawal strategy is strongly advised.”

The SPP report provides reassurance to people in a Defined Benefit (DB) scheme – including Local Government Pension Schemes – saying they are likely to be largely unaffected.

Simon Daniel, who chairs the SPP’s Investment Committee, said: “The world is again enduring a period of financial turbulence and this has naturally created some uncertainty for UK savers and investors.

“The overall message from this paper is that making significant, reactive changes to pensions and other savings is generally not ideal compared with keeping a cool head and planning carefully.”

The SPP report adds: “The current volatility serves as a reminder of the importance of regular, long-term saving into a pension across a diversified portfolio of investments.

“Diversification of assets adds genuine value through risk mitigation. Consequently, steps that limit investment freedom can be unhelpful.

“Just as falling markets can provide challenges if you need to sell, they can also provide opportunities for investment targeting long-term growth.

“The challenge is how individuals can adapt their portfolio as they near retirement – a challenge that the pensions industry is continuing to tackle.”

• To discuss any issues raised by this article please contact me on 01772 430000

DON’T FALL FOUL LATE PAYMENT PENALTIES

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The government has increased the late payment penalties for taxpayers within its ‘Make Tax Digital’ (MTD) regime.

The rises, which cover VAT and income tax, came into effect this month, or whenever an individual or business joins the MTD regime in question.

And they come as figures reveal HMRC collected a quarter of a billion pounds in late penalties in just two years between 2021 and 2023.

The new rates are:
• Three per cent of the tax outstanding where tax is overdue by 15 days
• An additional three per cent where tax is overdue by 30 days
• Plus 10 per cent per annum where tax is overdue by more than 30 days

Also from this month, the late payment interest rate charged by HMRC will rise by 1.5 percentage points. It means most paying at the Bank of England rate plus four per cent.
And HMRC has revealed it is looking at the penalty framework that applies when a taxpayer makes a mistake in their tax return or other tax document or omits to reveal a circumstance that affects their liability.

More than a million taxpayers failed to meet the most recent self-assessment deadline on January 31, almost double the number in the previous year.

A HMRC spokesperson told the ‘This is Money’ website: “Our aim is to support taxpayers to get their tax right and avoid fines altogether, with the overwhelming majority of customers filing on time.

“We charge penalties to encourage customers to meet their obligations, while acting as a sanction for those who don’t.”

• To discuss any tax issues and any of the points raised in this article please contact me on 01772 430000

Interest rise affects beneficial loans

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The government has increased the interest rate applied to beneficial loan agreements from 2.25 per cent to 3.75 per cent from the start of this month.

At first glance that may seem like a small rise but it is a move that could have significant tax implications.

Beneficial loan arrangements are typically loans between a company and directors or staff.

The arrangement exists where an employee, and crucially directors count as such in this case, is the recipient of a ‘cheap’, most notably interest-free, loan by their employer.

The most common example of a beneficial loan is an overdrawn Director’s Loan Account – amounts that a director owes to their company.

The loan only becomes taxable once it exceeds £10,000 at any point during the year.

If the loan does exceed £10,000, the employee is taxed on the difference between interest at the appropriate official rate and the actual interest they have paid.

To avoid the director or employee being taxed on a ‘benefit-in-kind, employers often opt to charge interest at the official rate stipulated by HMRC.

This is the largest increase in the official rate charged on beneficial loans for a considerable amount of time, and a rate as high as 3.75 per cent hasn’t been seen since the 2013/14 tax year.

The government says the rate will continue to be reviewed each quarter and adjusted accordingly.
We would also advise businesses to:

• Keep financial and accounting records up to date. By utilising modern Cloud Accounting software, you can keep track of any loans with directors/employees in real time to make sure you are aware of any potential beneficial loans.
• Charge interest on any beneficial loan at the official rate as per HMRC to avoid a taxable benefit-in-kind or report any beneficial loans on an employees’ P11D form, due for filing by July 6 each year.
• Review existing loan arrangements to ensure the revised interest rate does not cause any issues

• To discuss any issues raised by this article please call me on 01772 430000