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HMRC’s CEST tool gets a revamp from 30 April 2025, with clearer questions and updated guidance to help users decide employment status for tax-plus stronger backing from HMRC.

In a Written Ministerial Statement delivered on 28 April, the Exchequer Secretary to the Treasury announced a series of administrative and simplification measures designed to advance the government’s commitment to modernising the tax and customs systems.

Among these measures is an important update to HMRC’s Check Employment Status for Tax (CEST) digital tool, set to take effect from 30 April 2025. The CEST tool plays a key role in helping users determine whether a worker should be treated as employed or self-employed for tax purposes across both the private and public sectors.

The forthcoming changes aim to improve usability and clarity, making it more accessible and efficient for individuals and organisations alike. In conjunction with these technical improvements, HMRC will issue updated guidance to support users in navigating the revised set of questions, ensuring they are better equipped to use the tool correctly and confidently.

The service provides HMRC’s view as to whether IR35 legislation applies to a particular engagement and whether a worker should pay tax through PAYE as well as helping to determine if the off-payroll working in the public sector rules apply to a public sector engagement. HMRC has confirmed that it will stand by the outcome produced by the CEST tool, provided that the information entered is accurate and complete. However, HMRC will not stand by the results of contrived arrangements and designed to get a particular outcome from the service.

The service can be used by a variety of users, including:

• Workers providing services;
• Individuals or organisations engaging workers; and
• Employment agencies placing workers with clients.

Filing your 2024-25 Self-Assessment return early means faster refunds, better budgeting, and no deadline stress. Do not delay, start gathering your tax details today.

The 2024-25 tax year officially ended on 5 April 2025, with the new 2025-26 tax year beginning on 6 April 2026. While many taxpayers may be tempted to put off dealing with their self-assessment tax return until later this year, or early next year, there are several compelling reasons why filing early makes sense.

HMRC recently reported that nearly 300,000 people submitted their 2024-25 self-assessment returns during the first week of the new tax year, almost ten months before the 31 January 2026 filing deadline.

Filing early doesn’t mean paying early. However, by preparing and submitting your tax return well in advance, you gain the advantage of knowing exactly what you’ll owe by the 31 January deadline. This can be incredibly helpful for budgeting and avoiding any last-minute financial surprises.

Submitting your return early gives your accountant more time to work through the details without the pressure of a looming deadline. If you are due a tax refund, the sooner your return is filed and processed, the sooner you’ll receive your money.

The 31 January 2026 is not just the final date for submission of the 2024-25 self-assessment tax return but also an important date for payment of tax due. This is the final payment deadline for any remaining tax due for the 2024-25 tax year. In addition, the 31 January 2026 is also the usual payment date for any Capital Gains Tax due in relation to the 2024-25 tax year and also the due date for the first payment on account for 2025-26. Note that any CGT due on the sale of a second residential property must be paid within 60 days of the sale, not in the following January.

In summary, filing your tax return early offers a clearer financial picture, helps spread the workload, and ensures you’re not caught out by deadlines. If you are due a refund, there’s no reason to wait as filing early means a quicker refund.

MTD for Income Tax starts 6 April 2026 for the self-employed and landlords with £50k income. Plan early to stay compliant and avoid disruption.

MTD represents one of the most significant overhauls to the self-assessment regime since its introduction in 1997. This includes new requirements to keep digital records, using MTD-compatible software, and submitting quarterly updates of income and expenses to HMRC.

From April 2026, self-employed individuals and landlords with annual qualifying business or property income over £50,000 will be required to comply with the MTD for Income Tax rules. Qualifying income includes gross income from self-employment and property before any tax allowances or expenses are deducted.

This first rollout of MTD for Income Tax will affect approximately 780,000 taxpayers, with the next stage following in April 2027, extending the rules to those earning between £30,000 and £50,000. A further expansion, announced during the Spring Statement 2025, will apply MTD obligations to those with income over £20,000 from April 2028. The government is still considering the best approach for individuals earning below this lower threshold.

HMRC is asking some eligible taxpayers to sign up to its MTD testing programme on GOV.UK. This provides an opportunity to get comfortable with the new process before it becomes mandatory. Importantly, penalties for late submissions will not apply during the testing phase.

This move follows the rollout of MTD for VAT, which according to an independent report prepared for HMRC has helped over two million businesses improve accuracy and reduce errors.

As the deadline approaches, it is important to start planning in order to ensure a smooth transition to the new way of reporting Income Tax.

Running more than one self-employed business? HMRC will not always treat them as separate. Whether they are taxed as one combined trade or multiple depends on how your activities relate to each other. It is not a matter of choice, it is about how your business is run in practice. Get it right to avoid costly mistakes.

When someone has more than one self-employed income, one of the key issues to consider is whether to combine all profits under a single business activity or treat each separately. This depends on the nature and relationship of the activities. HMRC’s manuals set out three possible scenarios:

1. Separate Trades

If the new activity is run independently, with different staff, stock, or customers, it is treated as a separate trade. This means each business is taxed individually, and the commencement rules apply to the new one. No merging takes place unless operations later combine in substance.

2. A New Single Trade

If the new activity transforms the original business significantly, so much so that the old trade effectively ends, then both are treated as forming a new trade. The cessation rules apply to the original trade, and commencement rules apply to the new, combined business.

3. Continuation of Existing Trade

If the new activity merely expands the existing business without fundamentally changing its nature, it is treated as a continuation. Profits are combined and taxed as one ongoing trade, with no change in basis.

Understanding whether activities form one trade or multiple is crucial for correct tax treatment. It’s not just a matter of choice. It also depends on the facts and how the businesses operate and interact.

We would be happy to help you review the structure of your business to ensure compliance with HMRC guidance and avoid unexpected tax consequences.

From April 2025, Agricultural Property Relief from Inheritance Tax now extends to land under qualifying environmental agreements. This means landowners entering long-term stewardship schemes will not lose IHT relief. From April 2026, a new £1 million limit will apply to combined APR and BPR claims-making timely planning more important than ever.

Agricultural Property Relief (APR) is a relief from Inheritance Tax (IHT) that reduces the taxable value of agricultural land and property when it is passed on, either during a person’s lifetime or after death. It allows up to 100% relief on qualifying agricultural land used for farming.

The scope of APR was extended from 6 April 2025 to land managed under an environmental agreement with, or on behalf of, the UK government, devolved governments, public bodies, local authorities, or relevant approved responsible bodies. This expansion of the relief helps to better support environmental land management without penalising landowners for switching from farming to environmental use.

The new rules will benefit individuals, estates, and personal representatives where agricultural land is shifted to long-term environmental use under formal agreements. Previously, land removed from active farming for environmental schemes could have lost eligibility for APR.

From 6 April 2026, broader reforms to Agricultural Property Relief and Business Property Relief are set to take effect. While relief of up to 100% will still be available, it will apply only to the first £1 million of combined agricultural and business property. Beyond that threshold, the relief will be reduced to 50%.

Employees using company fuel for private journeys can sidestep a hefty benefit charge by repaying the full private fuel cost to their employer by 6 July 2025. Miss the deadline, and tax becomes unavoidable.

This repayment process is known as “making good,” and requires the employee to repay the employer for private fuel no later than 6 July following the end of the tax year. For the 2024-25 tax year, the repayment must be completed by 6 July 2025.

If the repayment is not made by the deadline, the employee becomes liable for the car fuel benefit charge. This charge is calculated based on the vehicle’s CO2 emissions and the car fuel benefit multiplier. The charge applies regardless of the actual amount of private fuel used, making it potentially costly for employees who only use a small amount of fuel for private journeys, such as commuting.

To avoid the tax, the employee must fully repay the employer for all private fuel used during the year, including fuel used to travel to and from work. Accurate record-keeping is essential, as HMRC will only accept that no benefit has arisen if the full cost is repaid by the deadline. In many cases, repaying the private fuel cost can be more financially beneficial than paying the fuel benefit charge.

Employers must pay Class 1A NICs for 2024-25 benefits by 19 July (post) or 22 July (electronic). These apply to perks like company cars and private health cover-late payment risks penalties from HMRC.

Class 1A NICs are payable by employers on the value of most taxable benefits offered to employees and directors, including company cars and private medical insurance. They are also due on any portion of termination payments exceeding £30,000, provided that Class 1 NICs have not already been applied.

To ensure the payment is correctly allocated, employers should use their Accounts Office reference number as the payment reference and clearly indicate the relevant tax year and month. It is important to note that Class 1A NICs paid in July always relate to the previous tax year.

There are three key dates employers must remember for the 2024-25 Class 1A NICs. Forms P11D and P11D(b) must be submitted by 6 July 2025. Postal cheque payments must reach HMRC by 19 July 2025, and electronic payments must clear into HMRC’s bank account by 22 July 2025.

These contributions generally apply to benefits provided to company directors, employees, individuals in controlling positions, and their family or household members.

1 June 2025 – Due date for corporation tax due for the year ended 31 August 2024.

19 June 2025 – PAYE and NIC deductions due for month ended 5 June 2025. (If you pay your tax electronically the due date is 22 June 2025).

19 June 2025 – Filing deadline for the CIS300 monthly return for the month ended 5 June 2025.

19 June 2025 – CIS tax deducted for the month ended 5 June 2025 is payable by today.

1 July 2025 – Due date for corporation tax due for the year ended 30 September 2024.

6 July 2025 – Complete and submit forms P11D return of benefits and expenses and P11D(b) return of Class 1A NICs.

19 July 2025 – Pay Class 1A NICs (by the 22 July 2025 if paid electronically).

19 July 2025 – PAYE and NIC deductions due for month ended 5 July 2025. (If you pay your tax electronically the due date is 22 July 2025).

19 July 2025 – Filing deadline for the CIS300 monthly return for the month ended 5 July 2025.

19 July 2025 – CIS tax deducted for the month ended 5 July 2025 is payable by today.

31 July 2025 – Pay second self-assessment payment on account for 2024-25.

If you drive a company car and your employer pays for your fuel, including for personal use, you could be facing a sizeable tax charge unless you repay the private fuel element by 6 July 2025. Many company car users are unaware that unless they fully reimburse their employer for private fuel use, they will be taxed on a notional fuel benefit – even if the private mileage is relatively low.

This charge, known as the car fuel benefit charge, is based on a fixed figure set by HMRC for the tax year, multiplied by a percentage that reflects the car’s CO2 emissions. The result is added to your taxable income, which can push you into a higher tax band or increase your overall tax bill significantly.

For example, if your car has a 30% CO2 rating and the multiplier for the year is £27,800, the taxable benefit comes to £8,340. If you are a basic rate taxpayer, this adds around £1,668 to your tax bill. If you are a higher rate taxpayer, the additional tax could be £3,336 or more. This charge is triggered regardless of how little personal fuel was actually used unless full reimbursement is made.

What you need to do

To avoid this charge, you must reimburse the cost of private fuel used during the 2024/25 tax year to your employer by 6 July 2025. To calculate how much to repay, you need to:

1. Keep a mileage log
   The most accurate way to track private fuel use is by recording every journey in a logbook or using a digital mileage tracker. Each journey should note the date, reason, start and end mileage, and whether it was business or personal.
2. Calculate the cost using advisory fuel rates
   HMRC publishes advisory fuel rates each quarter based on fuel type and engine size. Use the correct rate for the relevant period. For example, a petrol car with a 1600cc engine might have a rate of 15p per mile. If you drove 1,000 private miles, you would need to repay £150.
3. Pay the reimbursement by 6 July 2025
   The reimbursement must be made in full and on time. Late or partial repayments will not prevent the benefit charge from applying.

Why this matters

Repaying the private fuel cost is often far more tax-efficient than accepting the benefit. The tax charge is based on a notional benefit that can easily exceed the real-world cost of the fuel actually used. By reimbursing only the cost of the fuel for private use, you avoid this artificial uplift in taxable income and ensure fairness.

Additionally, repaying private fuel helps avoid any scrutiny from HMRC and reduces the risk of disputes about benefit calculations. Employers also appreciate the clarity and reduced administrative burden when employees take responsibility for their own personal mileage.

In summary

If your employer pays for your private fuel, act now:

• Log your private mileage accurately for the 2024-25 tax year
• Use advisory fuel rates to calculate the amount to repay
• Reimburse your employer in full by 6 July 2025

Doing so ensures that you avoid an unnecessary tax charge and remain compliant with benefit-in-kind rules. This is one of the few opportunities when keeping good records and making a small repayment can lead to substantial tax savings.

Every business reaches a point where reducing costs becomes a priority. Whether due to tighter margins, falling demand, or a broader economic slowdown, managing overheads is one of the most immediate ways to improve profitability and preserve cash flow. However, a common concern is that cutting costs too deeply may weaken a business’s ability to respond when conditions improve.

The good news is that not all savings involve drastic action. In many cases, a review of existing expenditure can uncover straightforward and low-risk savings. Here are some practical ideas to help reduce costs without undermining future flexibility or growth potential.

Review software and subscription costs

Businesses often accumulate software tools, apps, and subscription services over time, many of which overlap or are underused. Review all ongoing subscriptions, including project management platforms, CRM systems, antivirus software, marketing tools, and cloud storage. Consider consolidating services, switching to more cost-effective providers, or downgrading to plans that better reflect current usage.

This is one of the least disruptive areas for cost cutting and can often be actioned within a week.

Renegotiate supplier and service contracts

Many suppliers will be open to renegotiation, especially if you are a long-term or reliable customer. Speak to telecom providers, insurers, utility companies, and service contractors such as cleaners, IT support, or maintenance engineers. Even a modest discount or more favourable payment terms can have a cumulative effect.

For office-based businesses, consider whether your current printing and stationery suppliers are offering value for money. Price comparisons are easy to conduct, and switching supplier is rarely difficult.

Make energy efficiency a habit

Reducing energy use remains a simple way to cut overheads. Encourage staff to power down equipment at the end of the day, adjust thermostat settings, and ensure that lighting is switched off when rooms are unoccupied. If you occupy your own premises, upgrading to LED lighting or motion-sensitive controls can lead to long-term savings.

Where energy contracts are up for renewal, it is worth seeking quotes from several providers. Even small businesses can benefit from broker services to find more competitive deals.

Consider flexible or hybrid working arrangements

One of the biggest fixed costs for office-based businesses is premises. With hybrid working now widely accepted, many businesses are reducing desk space without compromising on collaboration or productivity. Moving to smaller premises or adopting a shared workspace model can release significant funds while maintaining operational effectiveness.

Equally, if staff work from home regularly, reducing ancillary office costs such as refreshments, cleaning, and supplies becomes an added bonus.

Revisit staffing arrangements and outsourcing

There is often scope to review how work is allocated and whether it makes sense to bring certain tasks in-house or outsource others. For example, occasional use of freelance support for marketing or bookkeeping can be more cost-effective than retaining part-time staff on payroll.

It is also worth reviewing staffing rotas and shift patterns, particularly in hospitality or retail settings, to ensure they still reflect current demand levels.

Encourage staff involvement

Finally, cost reduction works best when staff are engaged. Encourage employees to share their ideas for saving money. They are often closest to inefficient processes or unnecessary spending. By involving them in decision-making, you are more likely to find practical savings that do not compromise morale or service standards.

In summary, reducing overheads does not need to be painful. There is often low-hanging fruit that can be picked without weakening your business. The key is to be methodical, involve your team, and keep future flexibility in mind. That way, when market conditions improve, your business is leaner, more efficient, and ready to respond.