NEWS

Changes announced in the Autumn Budget 2025 will alter the National Insurance advantages of salary sacrifice pension arrangements from 6 April 2029. What are the current rules? Salary sacrifice has long been a popular way to contribute to workplace pensions, allowing employees to exchange part of their salary for an employer pension contribution. This reduces National Insurance liabilities for both parties, with many employers using their savings to enhance pension contributi

HMRC has issued a warning to business owners after becoming aware of schemes promoting the use of Bills of Exchange as an alternative way to settle tax liabilities. These arrangements are being marketed as a legitimate method of paying tax. However, HMRC has made it clear that it does not accept Bills of Exchange as payment for tax debts and considers these schemes to be fraudulent. Businesses using these arrangements remain liable for the original tax, together with any inte

According to the Office for National Statistics the number of 16–24-year-olds not in education, employment or training (Neets) has risen above 1 million for the first time since 2011. A report by the Institute for Fiscal Studies shows that the employment rate for young people has dropped in all regions across the UK, apart from Northern Ireland, since 2022. A major independent review into the reasons behind this trend was released by the former Health Secretary, Alan Milburn,

New research from the US contradicts predictions that the introduction of Artificial Intelligence (AI) will drive job losses. The working paper found that companies that adopted generative AI grew their headcount by 10.2% over the two years following adoption. This is in stark contrast to comments from tech companies Oracle and Atlassian, which have cited AI investment when announcing layoffs. Companies making the largest AI investments saw entry-level headcounts growing 12%

If you make Self Assessment payments on account, your second payment for the 2025/26 tax year is due by 31 July 2026. If your income or profits fell in 2025/26 compared to the previous year, you may be able to claim to reduce your payments on account. Any claim should be based on a realistic estimate, as interest would be charged if your payments are reduced too much. If you’re concerned about meeting your tax payment, don’t simply just ignore the issue. We will be able to he

HMRC has confirmed that the introduction of mandatory payrolling of Benefits in Kind (BiKs) will now be phased over two years, giving employers, payroll providers and software developers additional time to prepare. The announcement follows feedback from employers and the payroll industry and revises the original implementation timetable. The New Timetable Phase 1 – From 6 April 2027 Mandatory payrolling will apply to: Company cars Car fuel benefits Vans Van fuel benefits Empl

Defra recently shared an article about Capital Grants, which we believe may be of interest to a number of our farming clients. Capital Grants help farmers, land managers and rural businesses carry out practical improvements that benefit the environment across England. The 2026 Capital Grants offer is scheduled to open in late July. Funding will be available for a wide range of projects, from planting trees and hedgerows to improving water quality. Supporting evidence has al

When running payroll in the UK, choosing the correct National Insurance (NI) category letter is very important. If the wrong category is used, it can lead to incorrect deductions and problems with HM Revenue and Customs (HMRC). What are NI Category Letters for? NI category letters tell you: 1) How much NI the employee pays 2) How much NI the employer pays The correct category depends on the employee’s age and circumstances. The Most Common NI Categories: Category Empl

Congratulations are in order for Lily, who has successfully completed her AAT qualification! Lily has been so dedicated to her studies since joining Shepherd Partnership in 2023, and we're incredibly proud of her achievements. Here's to the future (and ACCA studies), Lily!

Recent reports suggest some savers are paying more tax than they should because HMRC has used incorrect savings interest figures when calculating tax codes. With interest rates having been much higher over the last few years, more people are exceeding their Personal Savings Allowance and finding HMRC adjusting their PAYE tax codes to collect additional tax. Unfortunately, where HMRC's figures are wrong, the result can be an unexpected and costly overpayment. Problems can aris

Voting for this year's Skipton Business Awards is now open. Cast your vote before July 12th for the business that you think goes above and beyond for the good of our wonderful town. There are 12 different categories to choose from - so take a look and give our local businesses the recognition they deserve. At Shepherd Partnership we're thrilled to be sponsoring this year's Health and Wellbeing Business of the Year award category. Cast your votes here: https://skiptonbid.com/m

After 15 years without a change, the approved mileage rate for cars and vans has been increased from 45p to 55p per mile for the first 10,000 business miles each tax year. These rates apply only for using your own vehicle. Employees using company cars for business travel are subject to HMRC's separate Advisory Fuel Rates. The increase has been backdated to 6 April 2026. What are the New Mileage Rates? Rate Before Now Cars & Vans (first 10,000 miles) 45p 55p Cars & Vans (over

Huge congratulations go to Chloe - from our payroll team - on the arrival of twins! The picture shows them with their doting big sister. Sending huge love to Chloe and family.

During the King’s Speech 2026, new plans have been confirmed to resolve late payment issues affecting many small and medium sized enterprises (SMEs). The proposed reforms are designed to improve payment practices across the UK economy. So, what is changing? The government says the reforms are aimed at improving cash flow for SMEs and, reducing the number of companies struggling when invoices are paid late. Under the new proposals, large businesses could face: A maximum 60-day

Pensions are highly flexible, allowing individuals to access funds in a range of ways, including lump sum withdrawals, drawdown, and consolidation of pension pots. While this flexibility can be useful, it also increases the risk of unintended tax and financial consequences if decisions are not properly thought through. With the changes coming from April 2027 bringing some unused pension funds directly into the Inheritance Tax (IHT) framework, many individuals are now reviewin

A temporary reduction in VAT from 20% to 5% has been announced on certain children’s meals, tickets and family attractions from 25 June to 1 September 2026. The relief is designed to encourage spending within the hospitality and leisure sectors, which will hopefully help some businesses, although the administration could be problematic. Qualifying supplies include: Children’s meals sold from dedicated children’s menus Children’s admission tickets Certain family attractions su

Inheritance tax (IHT) planning can encounter many problems if not handled correctly. This article covers 10 mistakes that are commonly seen within the process. 1. Forgetting the Capital Gains Tax valuation uplift on death One of the biggest inheritance tax planning mistakes is assuming lifetime gifting is always preferable. Assets retained until death generally receive a Capital Gains Tax (CGT) uplift, resetting the base cost to market value at death. By contrast, gifting a

During the 2024 Budget, it was announced that from April 2027 most unused pension death benefits would be subject to inheritance tax (IHT). The legislation remains subject to consultation and further detail may emerge before implementation in April 2027. This article summarises our current understanding of the proposed changes. What is changing? Pension death benefits becoming subject to IHT represents one of the largest changes to IHT planning in a generation and means

A timely reminder for clients with teenagers: Child Benefit does not automatically continue once a child reaches 16. Failing to act can result in payments stopping unnecessarily. What’s changing? Child Benefit will automatically stop on 31 August following a child’s 16th birthday unless HM Revenue & Customs (HMRC) is notified that the young person is continuing in approved education or training started before their 19th birthday. What do I need to do? HMRC typically contacts

Businesses that use contractors, freelancers or casual workers should start preparing for significant changes to UK right to work rules expected to take effect from October 2026 under the Border Security, Asylum and Immigration Act 2025. The legislation will expand existing right to work obligations beyond traditional employees to include many workers in the “gig economy”, such as subcontractors, casual workers, self-employed contractors and individuals engaged through online