NEWS

It has been announced that taxpayers who fall into Making Tax Digital for Income Tax (MTD) from 6 April 2026 will face a soft landing for penalty points. Additionally, the government have announced that from 6 April 2027, late submission and late payment penalties for those still in self assessment will mirror the MTD penalty regime. What is the penalty system for MTD? HMRC’s MTD penalty system operates as a point-based system where you will receive separate penalty points fo

From 6 April 2025, if you are a pensioner who received a Winter Fuel Payment, HMRC will recover the amount full if your income was over £35,000.   Why will this happen? In July 2024, the government announced that payment of the Winter Fuel Payment was dependent on the individual receiving another means tested benefit. In July 2025, the government expanded the eligibility to include pensioners with total income below or equal to £35,000, in addition to introducing the tax char

As the 2025/2026 tax year draws to a close, it’s an ideal time to review your finances and ensure you’ve taken full advantage of all the allowances and reliefs available to you.   Investment Allowances   Have you used your £20,000 ISA allowance? Have you used your £3,000 annual exemption for capital gains tax? Have you used your annual £500 dividend allowance?   Tax relief on Venture Capital Trusts investments, currently provide 30% tax relief. However, this will be reduced t

Following recent reports from Birmingham Mail, millions of state pensioners are being contacted by HM Revenue & Customs regarding tax on their pension income. Due to frozen income tax thresholds and rising State Pension payments, many retirees who have never previously paid tax may now find themselves liable — sometimes through a “Simple Assessment” letter. If you or a family member has received one of these letters: Don’t ignore it Don’t panic Don’t assume it’s wrong ...But

Following the original announcement in the Spring 2015 Budget, we are now finally 6 weeks away from the introduction of Making Tax Digital for Income Tax (MTD) for sole trader and landlords with combined turnover more than £50,000.  Quarterly reporting comes with it!   Are you ready? Have you chosen your MTD compatible software? Have you considered the number of licences needed for your individual purposes? Have you signed up for MTD with HMRC?   Don’t understand what you nee

In very exciting news from the office, Adam recently became a Grandad for the 1st time! Adam's daughter welcomed her first child - a little boy called Benji! Mother and son are doing well, and are settling into the routine (or perhaps more like thrown into the craziness) of parenthood. Congratulations to the whole family on their adorable new addition. The photos show Adam and his wife, Virginia, enjoying cuddles.

We wondered if The Small Awards might be of interest to some of our clients and contacts... please read on for more info. The Small Awards, delivered by Small Business Britain, are completely free to enter and are an opportunity to get some well-deserved recognition for your small business.  With 12 awards up for grabs across a range categories, entries close at midnight on the 28th February and winners will be announced at an exciting awards ceremony. The categories are: Hig

Making Tax Digital for Income Tax comes into force on 6 April 2026, but many sole traders and landlords still don’t know what it means. New research from IPSE, the Association of Independent Professionals and the Self-Employed, shows almost 40% are unaware of the changes. The rules require digital record-keeping and quarterly submissions using HMRC-approved software, with penalties applying for non-compliance. We’re already supporting our clients with MTD setup and ongoing c

On 23 December, the Government confirmed a significant reform to Inheritance Tax (IHT) reliefs for business owners and farmers, increasing the value of assets eligible for full Agricultural Property Relief (APR) and Business Property Relief (BPR) to £2.5 million. The changes will take effect from 6 April 2026. While the increased threshold is welcome, the announcement came too late for some individuals who have already incurred substantial tax planning costs that may now prov

The Department for Environment, Food and Rural Affairs has set out details of the revised Sustainable Farming Incentive (SFI) scheme, which is expected to open in 2026 as part of the next phase of environmental land management support in England. The SFI is a government programme that pays farmers for a range of land management activities designed to support sustainable farming alongside food production. Under the refreshed offer, the scheme will be streamlined with fewer a

The start of the year is a natural time to pause, reflect and reset… and while New Year’s resolutions are often associated with personal goals, they can be just as powerful for businesses of all sizes. At Shepherd Partnership, we encourage our clients to use the new year as an opportunity to review what’s working, what’s not, and where small changes could make a big difference over the next 12 months. Business Resolutions Worth Making Some of the most effective business resol

An increasing number of people are transforming hobbies into small businesses. Earning a living from something you genuinely enjoy is one of the most rewarding career moves you could make. One of the biggest mistakes new entrepreneurs make is waiting too long to seek proper accounting advice. Even a brief conversation with an accountant at the very beginning can prevent confusion, unexpected costs, and unnecessary stress later on. When Does a Hobby Become a Business? If you a

Many employees accumulate air miles, credit-card points or other loyalty rewards when travelling or purchasing goods for business purposes. Understandably, employers often wonder whether these rewards create a tax liability. The good news: in most routine situations, they don’t.   When Reward Points Are Not Taxable HMRC generally treats points earned through standard public loyalty schemes as a personal reward for the individual. This applies even where: The purchase was made

With the 31 January tax return deadline just around the corner, HMRC has revealed the ‘Top 10 oddest excuses’ for sending in a late return. And, although we're certain that none of these would ever come from our clients, we thought these excuses might offer a bit of entertainment! My pet goldfish died (self-employed builder) I had a run-in with a cow (Midlands farmer) After seeing a volcanic eruption on the news, I couldn’t concentrate on anything else (London woman) My wife

Clearing out your wardrobe or selling handmade items online can be a great way to earn extra cash, but did you know HMRC is now receiving more seller data from platforms like Vinted, eBay and Etsy? That’s making it even more important to understand your tax responsibilities. Key points for online sellers: If you’re just selling personal items you no longer need, and you aren’t buying to resell for profit, you normally won’t owe tax. There’s a £1,000 trading allowance. If your

Cyber-crime continues to be a major risk for UK businesses. In 2024, 42% of small businesses reported experiencing a cyber breach, highlighting just how important strong digital security has become.   To support organisations in improving their cyber resilience, the National Cyber Security Centre (NCSC) has launched a free Cyber Action Toolkit.   This interactive online tool is designed to help businesses of all sizes strengthen their cyber defences by providing:   Clear, pra

A group of Shepherd Partnership team members took part in the 2025 Skipton Santa Fun Run on Sunday 30th November! This was our first team entry into the event... and what a way to start a new tradition! The sun was shining, there were Santas EVERYWHERE (apparently 1 Santa even proposed to another during the race), and the festive cheer was definitely evident. See you next year Team Santa!

Rachel Reeves delivered her highly anticipated Autumn 2025 Budget yesterday, 26th November. We have shared details of the points we think you need to know in our Budget Summary newsletter: Please read our summary here. We read and summarise the details so you don't have to! But if you are particularly interested, the full 150 page statement can be found here: Budget 2025 document - GOV.UK

There are some gorgeous, festive activities and events taking place in Skipton in the coming weeks. Take a look at the latest 'Welcome Skipton' newsletter to discover what's on... https://mailchi.mp/45f7e8f816c2/skipton-visitor-newsletter-november-2025?e=11526079c7

From 1 December 2025, the UK’s Financial Services Compensation Scheme (FSCS) deposit protection limit will increase from £85,000  to £120,000  per person, per authorised institution. What is the FSCS Protection limit? The FSCS protects eligible deposits held with UK-authorised banks, building societies and credit unions if the institution fails. What does the increase mean? This is a significant boost for savers who prefer to keep money in cash, but it doesn’t eliminate risk.