31 January deadline met by more than 11.48 million people



HMRC has confirmed that more than 11.48 million people submitted their 2024-25 self-assessment tax returns by the 31 January deadline. This included 475,722 taxpayers who left their filing until the final day and almost 27,456 that filed in the last hour (between 23:00 and 23:59) before the deadline!

There are an estimated 1 million taxpayers that missed the deadline. Are you among those that missed the 31 January 2026 filing deadline for your 2024-25 self-assessment returns?

If you have missed the filing deadline then you will usually be charged a £100 fixed penalty if your return is up to 3 months late, regardless of whether you owed tax or not. If you do not file and pay before 1 May 2026 then you will face further penalties unless you have made an arrangement to pay with HMRC.

If you are unable to pay your tax bill, there is an option to set up an online time to pay payment plan to spread the cost of tax due on 31 January 2026 for up to 12 months. This option is available for debts up to £30,000 and the payment plan needs to be set up no later than 60 days after the due date of a debt.

If you owe self-assessment tax payments of over £30,000 or need longer than 12 months to pay in full, you can still apply to set up a time to pay arrangement with HMRC, but this cannot be done using the online service.

Source:HM Revenue & Customs | 09-02-2026

Sign up for online services



HMRC online services allow individuals, businesses and agents to manage tax matters securely over the internet. Using an HMRC online account, you can send information such as self-assessment tax returns or VAT registration applications, view important records like your business or personal tax account and make payments online.

To access these services, you will need to ensure you have set up an account with HMRC. If you do not already have sign-in details, you can easily create them. HMRC provides three types of online services accounts: individual accounts, organisation accounts and accounts for agents.

An individual account lets you set up a Personal Tax Account where you can complete tasks such as checking your Income Tax estimate and tax code, updating personal details and claiming tax refunds. You can also register for self-assessment if you need to report income from sources such as property or investments. The same sign-in details can be used for both services.

Organisation accounts are for businesses and trusts. A business tax account allows sole traders, partnerships and limited companies to register for self-assessment (if self-employed), VAT, PAYE and Corporation Tax, depending on what is required.

A number of HMRC services use a separate sign-in process, including excise, import and export services, childcare accounts and for reporting Capital Gains Tax on UK property.

Source:HM Revenue & Customs | 09-02-2026

Inheriting Additional State Pension



The Additional State Pension is only available to those who reached the state pension age before 6 April 2016 and are receiving the Old State Pension. The Additional State Pension is an extra amount of money paid on top of the basic Old State Pension.

The Old State Pension is designed to provide individuals of state pension age with a basic regular income and is based on National Insurance Contributions (NICs). To get the full basic State Pension, most people need to have had 35 qualifying years of NICs.

Claimants will automatically have received the Additional State Pension if they were eligible for it. Those who had contracted out were not eligible for the Additional State Pension.

If your spouse or civil partner dies, you may be able to inherit some of their Additional State Pension if you reached State Pension age before 6 April 2016. If you do not receive the full basic State Pension, you may be able to increase it by using your spouse or civil partner’s qualifying National Insurance years.

You may also be able to inherit part of their Additional State Pension or Graduated Retirement Benefit. Different rules apply if you reached State Pension age on or after 6 April 2016. If relevant, you should contact the Pension Service to check what you can claim.

Source:Department for Work & Pensions | 09-02-2026

Claiming Business Asset Rollover Relief



Claiming Business Asset Rollover Relief allows for the deferral of Capital Gains Tax (CGT) when taxpayers sell or dispose of certain assets and use all or part of the proceeds to buy new business assets. The relief means that the tax on the gain of the old asset is effectively rolled over into the cost of the new asset with any CGT liability deferred until the new asset is sold.

Where only part of the proceeds from the sale of the old asset is used to buy a new asset a partial rollover claim can be made. It is also possible to claim for provisional rollover relief where the taxpayer expects to buy new assets but has not yet done so.

Business Asset Rollover Relief can also be claimed if taxpayers use the proceeds from the sale of the old asset to improve assets they already own.

The total amount of rollover relief is dependent on the total amount reinvested to purchase new assets.

The main qualifying conditions to be met to when claiming relief are as follows:

  • you must buy the new assets within 3 years of selling or disposing of the old ones (or up to one year before);
  • your business must be trading when you sell the old assets and buy the new ones; and
  • you must only use the old and new assets for trading.

Under certain circumstances, HMRC has the discretion to extend these time limits. In addition, both the old and new assets must be used by your business, and the business must be trading when you sell the old assets and buy the new ones.

Taxpayers must claim relief within 4 years of the end of the tax year when they bought the new asset (or sold the old one, if that happened after).

Source:HM Treasury | 09-02-2026

Entertaining employees



In general, entertaining employees is an exception to the normal rule that business entertainment costs are not allowable for tax purposes. If an employer provides entertainment exclusively for employees and it is “wholly and exclusively for the purposes of the trade”, then the expenditure is allowable as a business deduction. Examples include a staff Christmas party, or a sporting event open only to employees.

It is important that the entertainment is not merely incidental to hospitality provided for customers. The definition of employees accepted by HMRC can extend to retired staff and the partners of existing and past employees.

Although the expenditure is allowable, the employees themselves may have to pay tax on the entertainment received and the employer will have to report this on form P11D. To counter this, many employers choose to include such items in a PAYE Settlement Agreement (PSA) and pay Income Tax and National Insurance contributions on behalf of the employees

Proper record keeping is important to be able to demonstrate where legitimate staff entertainment has taken place. Care should be taken to ensure that staff entertaining is reasonable, as excessive entertainment could lead to a tax charge for employees even if the employer’s costs have been disallowed (in whole or in part).

Source:HM Revenue & Customs | 09-02-2026

Tax and property when you separate or divorce



When a couple separates or divorces, most attention focuses on the emotional and practical aspects. However, it is important to consider the tax implications of transferring assets, as these can have significant financial consequences if not managed carefully.

It is most important to consider if there are any Capital Gains Tax (CGT) implications. For transfers between spouses or civil partners, the rules changed on 6 April 2023. Couples that separate or divorce can transfer assets on a ‘no gain/no loss’ basis for up to three years after they stop living together. If the transfer is part of a formal divorce agreement, there is no time limit, ensuring no immediate CGT arises.

Private Residence Relief (PRR) may exempt individuals from paying CGT if the family home meets certain qualifying conditions. It is also important for couples to consider making a legally binding financial agreement. If an agreement cannot be reached, the court can issue a financial order, outlining how assets, financial support, and other arrangements are handled.

Careful planning during separation or divorce can help avoid unexpected tax charges and ensure that financial matters are resolved fairly for both parties.

Source:HM Revenue & Customs | 09-02-2026

Tax Diary March/April 2026



1 March 2026 – Due date for Corporation Tax due for the year ended 31 May 2025.

2 March 2026 – Self-Assessment tax for 2024-25 paid after this date will incur a 5% surcharge unless liabilities are cleared by 1 April 2026, or an agreement has been reached with HMRC under their time to pay facility by the same date.

19 March 2026 – PAYE and NIC deductions due for month ended 5 March 2026 (If you pay your tax electronically the due date is 22 March 2026).

19 March 2026 – Filing deadline for the CIS300 monthly return for the month ended 5 March 2026.

19 March 2026 – CIS tax deducted for the month ended 5 March 2026 is payable by today.

1 April 2026 – Due date for corporation tax due for the year ended 30 June 2025.

19 April 2026 – PAYE and NIC deductions due for month ended 5 April 2026. (If you pay your tax electronically the due date is 22 April 2026).

19 April 2026 – Filing deadline for the CIS300 monthly return for the month ended 5 April 2026.

19 April 2026 – CIS tax deducted for the month ended 5 April 2026 is payable by today.

30 April 2026 – 2024-25 tax returns filed after this date will be subject to an additional £10 per day late filing penalty for a maximum of 90 days.

Source:HM Revenue & Customs | 10-02-2026

Budgeting and forecasting in a period of lower confidence



Many business owners are entering the new year with a sense of caution. Confidence across the UK business community has softened, driven by continued cost pressures, uncertainty over tax policy and higher financing costs. In this environment, reviewing budgets and forecasts is not just a routine exercise, it is an essential management discipline.

For many businesses, budgets prepared twelve months ago may no longer reflect reality. Energy costs, staffing expenses, supplier prices and interest charges have all shifted, sometimes significantly. A refreshed budget allows owners to reassess their cost base, identify areas of pressure early and make informed decisions rather than reacting late to problems as they arise.

Forecasting is equally important. Cash flow forecasts, in particular, help businesses understand whether they have sufficient headroom to absorb slower sales, delayed customer payments or unexpected expenditure. Regular forecasting can highlight pinch points well in advance, giving time to adjust payment terms, renegotiate facilities or defer non-essential spending.

This is also a good opportunity to test assumptions. What happens if sales fall by 10%, or if wages rise faster than expected. Scenario planning helps owners see the impact of different outcomes and decide which risks need active management. It also provides a more robust basis for discussions with lenders, investors or advisers.

Reviewing budgets is not about pessimism. It is about clarity. Businesses that understand their numbers are better placed to protect margins, prioritise profitable activities and make confident decisions even in uncertain conditions.

We can support this process by helping to update forecasts, interpret the figures and translate them into practical actions. Regular reviews throughout the year can turn budgeting from a static document into a valuable decision-making tool.

Source:Other | 08-02-2026

Business rates support and cash flow for hospitality businesses



Hospitality businesses continue to operate in a challenging environment. Rising wage costs, energy prices and supply chain pressures have all placed strain on margins. Against this backdrop, recent business rates support measures offer welcome relief and can have a meaningful impact on cash flow and operating costs.

For many pubs, restaurants and cafés, business rates represent a significant fixed cost. Support measures introduced following the latest revaluation aim to reduce the immediate burden, particularly for smaller and mid-sized premises. In practical terms, this can mean lower monthly outgoings and improved short-term cash flow.

However, the benefit is not automatic. Reliefs and discounts often depend on eligibility criteria, correct property classifications and timely applications. Businesses that assume the reduction will simply appear in their bill may miss out or receive less relief than expected. Reviewing rates bills carefully remains essential.

Improved cash flow from rates support can provide breathing space, but it should also prompt forward planning. Some businesses may choose to reinvest the saving into staff retention, marketing or modest refurbishments. Others may prioritise rebuilding reserves that were eroded during recent difficult trading periods.

It is also important to remember that rates support may be time-limited. Temporary reliefs can reduce costs in the short term but should not be relied upon indefinitely. Incorporating revised rates into cash flow forecasts helps owners understand the longer-term position once reliefs taper or end.

We can help by reviewing eligibility, checking bills for accuracy and modelling the impact of rates changes on cash flow. For hospitality businesses operating on tight margins, even modest savings can make a noticeable difference when properly planned for and managed.

Source:Other | 08-02-2026

What is a UK property business



The income generated from land or property in the UK is treated as arising from a UK property business. The underlying legislation defines this broadly to include all activities that produce rental income or similar receipts from UK land, whether the taxpayer is subject to Income Tax or Corporation Tax.

Although property income is treated as coming from a business, landlords are not generally regarded as trading unless they meet the normal trading tests. As a result, most trading-related tax reliefs, such as certain Capital Gains Tax reliefs, do not usually apply. Property business profits are instead calculated using principles similar to those for trading profits.

Since the 2017–18 tax year, the cash basis is the default method for calculating profits and losses for most individual landlords. However, companies and some other landlords must still use Generally Accepted Accounting Practice (GAAP).

A wide range of persons can carry on a UK property business, including individuals, partnerships, trustees, companies and non-residents with UK property income. Using an agent does not change who is treated as carrying on the business.

In most cases, all UK property income is treated as part of one single property business, allowing income and expenses across different properties to be combined. UK and overseas property, however, are treated as separate businesses. Activities carried out in different legal capacities, such as personally, as a partner or as a trustee, are also treated as separate property businesses for tax purposes.

Source:HM Revenue & Customs | 02-02-2026