Morgan Hemp Blog

Chancellor adds more fuel to ISA reform fire

Thursday, May 1, 2025

After much rumour and conjecture, it seems that some potentially significant changes to ISAs (Individual Savings Accounts) are on
the way.

We heard a lot in the build up to the Spring Statement – only to hear no words uttered by the Chancellor in relation to this. Yet, we then saw some new information come out in the Spring
Statement papers, released after the Parliamentary speech, by the Treasury.

This stated: ‘The government is looking at options for reforms to ISAs that get the balance right…

Financial reporting: major changes for business sizes take effect

Thursday, May 1, 2025

Significant changes affecting financial reporting have kicked in, meaning many businesses may be re-classified in
terms of their sizes.

The thresholds to determine whether a company is counted as ‘micro, small or medium’ changed on 6 April for the first time in 12 years. The Government announced the changed
in December 2024.

The figures on the potential impact of the changes released by the Government, indicated around 6,000 businesses would go from ‘large’ to ‘medium’ under the changes. Around
113,000 businesses and LLPs will shift from…

HMRC could get new powers in tax avoidance clampdown

Thursday, May 1, 2025

Tax avoidance – and specifically those who promote it – has once again been pushed into the spotlight. That’s because of a new review
launched by the Government, as trailed at the Spring Statement.

New measures are being put forward to crackdown on the promotion of tax avoidance. HMRC would get more powers and have the option to issue stronger penalties if the proposals go forward.

Officials said the plans would empower HMRC to ‘more efficiently and effectively disrupt the business model promoters rely on’.

According to…

Tax rises inevitable amid tariff trade war?

Thursday, May 1, 2025

The dust had barely settled on Rachel Reeves’ Spring Statement before shockwaves were sent through financial markets following news
of trade tariffs from America. Donald Trump’s new tariff regime – which initially included enormous tariffs on most of the world’s largest trading nations – has led to fears of a ripple
effect that could envelop the UK economy.

And some leading economists in the UK have warned that the knock on effect of this situation will inevitably force the Chancellor to raise taxes at the…

Several tax-related changes to take effect

Tuesday, April 1, 2025

A number of tax changes are set to take effect in April, with National Insurance contributions for employers and a facet of Capital Gains Tax among them.

Employer NICs will rise from 13.8%, as it stands now, to 15% from 6 April 2025. And there are changes afoot for the Secondary Threshold – the point at which employers
become liable to pay NICs on employees’ earnings. This will go down to £5,000 a year from 6 April 2025 until 6 April 2028, dropping from the…

Tax commitment finally set to change after 25 years

Tuesday, April 1, 2025

A 25-year UK tax commitment related to Income Tax is set to be axed from next month.

As the new tax year begins on 6 April 2025, rules on The Official Rate of Interest (ORI) are finally set to change. In January 2000 it was decided
to not increase the rate during the tax year, and it has remained that way ever since.

HMRC is now highlighting the change through communications with businesses as we get near to the new tax year. The ORI is used…

Hiring veterans: National Insurance relief extended for another year

Tuesday, April 1, 2025

Changes to National Insurance contributions for employers have dominated much of the tax news headlines since being announced at the Autumn Budget.

But one element of the rules you may have missed concerns armed forces veterans. If you hadn’t realised already, there is a relief that applies for businesses
employing veterans. And this will apply for one year more at least, the Government has announced. So, the relief stays in place until April 2026.

Under this exemption, employers pay no employer National Insurance contributions up to…

Tax break scheme for second homeowners axed

Tuesday, April 1, 2025

The furnished holiday lettings tax regime is on the verge of being abolished.

Reforms were announced under the previous Conservative Government in Spring 2024 and are now set to take effect. The changes will come into force
firstly for Corporation Tax and for Corporation Tax on chargeable gains from 1 April 2025. And then for Income Tax and for Capital Gains Tax on or
after 6 April 2025.

Currently, the tax break makes it more profitable for second homeowners to let out their properties to holiday…

Tax changes expected as pressure grows on public finances

Saturday, March 1, 2025

A Government surplus would normally be seen as good news. But despite reaching £15.4bn in January – a record high for the month – it’s actually caused further headaches
for the Chancellor, adding pressure to break her pledges on tax. The Government had been expecting a much higher surplus of £20.5bn, as officially forecast.

It means Rachel Reeves is under increasing pressure to either make public spending cuts to various Government departments or raise taxes further. And if she does, it’s
likely to come in…

Taxman collects more than £400m in interest charges

Saturday, March 1, 2025

The amount the tax man collects from interest charges has grabbed some media attention in recent weeks, as new data was published.

Following a Freedom of Information request, it was revealed that HMRC received more than £400m purely from interest charges in the
last calendar year (January to December 2024).

This figure includes money that has come from taxpayers, trusts and estates that missed payment deadlines.

Incredibly, the figure has risen to three times greater than it was in 2021 – when revenue stood at £131.9m. For…