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Much attention has been given recently to the government’s continued freeze on personal tax thresholds. However, there are other frozen thresholds that are equally important but receive far less attention. Automatic enrolment pension thresholds have also remained largely unchanged for several years. As wages have risen over time, this freeze is having a growing impact on how much people are saving into workplace pensions. A major success for workplace pensions Automatic enrolment is widely regarded as one of the most successful pension policy changes of the past decade. Introduced in 2012, the system requires employers to automatically enrol eligible employees into a workplace pension scheme and make contributions alongside the employee. The policy began under the previous Labour government and was implemented by the Conservative government that followed. Since then, participation in workplace pensions has increased significantly. Government data shows that more than 22 million people are now saving into workplace pensions, an increase of over 10 million since automatic enrolment was first introduced. How the automatic enrolment thresholds work To be automatically enrolled into a workplace pension, workers must currently: be aged between 22 and State Pension age earn at least £10,000 per year from a single employer work in the UK Employees who earn less than £10,000 can still choose to opt in and receive employer contributions. Once a worker meets the automatic enrolment threshold, pension contributions are calculated on a band of qualifying earnings rather than total salary. For the 2025/26 and 2026/27 tax years, the qualifying earnings band remains: £6,240 – lower limit £50,270 – upper limit The £10,000 earnings trigger has remained unchanged since 2014/15, while the lower and upper limits of the earnings band have also remained frozen in recent years. Earnings have risen but thresholds have not Since automatic enrolment was introduced in 2012, average weekly earnings in the UK have increased significantly. Data from the Office for National Statistics suggests that nominal average earnings have risen by roughly 60% over that period. If automatic enrolment thresholds had increased in line with earnings growth, the entry threshold today might be closer to £13,000, with the qualifying earnings band stretching to somewhere in the region of £8,900 to £68,000. Instead, the current thresholds mean that the range of earnings on which mandatory pension contributions are calculated has effectively shrunk in real terms. What this means for higher earners One consequence of the frozen thresholds is that a smaller proportion of higher salaries now falls within the qualifying earnings band used for automatic enrolment contributions. When the scheme began in 2012, the upper earnings limit represented a much larger proportion of average earnings than it does today. As wages have grown but the limits have remained largely static, automatic enrolment contributions now cover a smaller share of higher incomes. The government’s position has been that higher earners are more likely to make additional personal pension contributions outside the automatic enrolment system. For many individuals, this means that relying solely on automatic enrolment contributions may not be enough to build the retirement savings they need. Planning ahead for retirement Automatic enrolment has significantly improved pension participation across the UK. However, the frozen thresholds mean that both employees and employers may need to think more carefully about long-term retirement planning. For higher earners in particular, it may be worth reviewing whether additional pension contributions or other retirement savings strategies are appropriate. Need advice on pensions or retirement planning? Understanding how workplace pensions, tax relief and contribution limits interact can be difficult. At Inglis Accountancy, we help individuals and business owners understand their pension options and make informed decisions about long-term financial planning. If you would like advice on workplace pensions, retirement planning or tax-efficient savings, get in touch on 01904 787 973 or book a call with our team .
The UK government has announced an increase in grants available for installing electric vehicle (EV) charge points, with eligible households and businesses now able to receive up to £500 towards installation costs . The support is aimed primarily at renters, flat owners, households without driveways and small businesses , helping make EV charging more accessible for people who cannot easily install a charger at home. The increase represents around a 40% uplift in the maximum grant , with the scheme expected to run until March 2027. According to the government, the funding could cover close to half the cost of a typical charge point installation . Lower charging costs for EV drivers One of the main benefits of installing a home or workplace charger is access to cheaper electricity tariffs. Charging at home can significantly reduce running costs compared with petrol or diesel vehicles. The government says some EV drivers may be able to power their vehicle for as little as 2p per mile when charging on cheaper domestic tariffs, particularly overnight EV rates. While costs vary depending on electricity prices and the efficiency of the vehicle, official estimates suggest that drivers could save up to £1,400 a year in running costs compared with a similar petrol car when charging at home. Addressing barriers to EV adoption The changes form part of the government’s broader strategy to encourage more drivers to switch to electric vehicles. Two of the most common concerns among drivers considering an EV are the upfront costs and access to reliable charging , particularly for people living in flats or homes without private driveways. By increasing support for charge point installation, the government hopes to make EV ownership more practical for a wider range of households and businesses. The move also sits alongside wider policies designed to support the transition to electric vehicles, including financial incentives to reduce the purchase cost of EVs and continued investment in the UK’s public charging network. Thinking about installing an EV charger for your business? If you run a business and are considering installing EV charging points for staff or company vehicles, it is worth understanding how grants and tax reliefs may apply. At Inglis , we help business owners make sense of government incentives and ensure they are making the most of available tax reliefs and allowances. If you would like advice on EV charging installations, capital allowances, or other ways to improve the efficiency of your business, call us on 01904 787 973 or book a call with our team .
For many small businesses, chasing unpaid invoices is an uncomfortable but necessary part of trading. The challenge is maintaining positive relationships with customers while ensuring money arrives on time. Late payments can quickly put pressure on cash flow. A clear process, consistent communication and the right tools can make the difference between a manageable issue and a serious financial strain. Clear policy from the outset A written credit control policy sets expectations for everyone involved. It should outline payment terms, when reminders will be issued and what happens if an invoice remains unpaid. Including these terms within contracts or engagement letters ensures customers understand the process before work begins. Early communication often prevents problems escalating. A brief call before an invoice falls due can confirm it has been received and check for queries. If payment has not arrived shortly after the due date, a follow-up call should establish when it can be expected. At this stage, the tone should remain measured, but clear that payment terms are taken seriously. Using financial reports to spot problems early Regular review of key reports helps businesses stay in control. An Aged Debt report shows which invoices are outstanding and for how long. It highlights patterns and identifies customers who are beginning to fall behind, allowing timely intervention. Days Sales Outstanding, or DSO, measures the average number of days it takes to receive payment. A rising figure may indicate that credit control procedures need tightening. For small firms in particular, understanding these metrics supports better cash flow forecasting. Most accounting software generates these reports automatically, though an accountant can assist if needed. Automated reminders reduce friction Simple payment terms, such as 30 days from invoice date, allow reminders to be scheduled in advance. Automated emails sent shortly before and after the due date can prompt payment without the need for repeated manual follow-up. This keeps the message consistent and removes emotion from the process. Making payment straightforward Delays are sometimes caused by inconvenience rather than unwillingness to pay. Offering multiple payment options can remove barriers. Direct debit services such as GoCardless allow payments to be collected automatically on the due date and can integrate with accounting software. Online payment platforms including PayPal and Stripe enable customers to pay by card, which can be particularly useful for international transactions. For ongoing services, businesses may require customers to agree to automatic payment arrangements as part of their terms. This reduces the risk of oversight. Escalation when necessary If payment remains outstanding after reminders and calls, a formal letter should restate the original terms and provide a clear deadline. The language need not be aggressive, but it should confirm that further action may follow. Some businesses choose to appoint a debt collection agency once an invoice reaches a certain age. If this forms part of the credit policy, customers should be made aware from the outset. Transparency helps avoid disputes later. Setting expectations early Ultimately, effective debt management begins before work starts. Clear payment terms, agreed in writing, reduce misunderstanding. For larger projects, requesting a deposit or staged payments can limit exposure. While most customers intend to pay on time, consistent systems protect the business when they do not. For small firms operating on tight margins, disciplined credit control is not simply administrative good practice. It is essential to financial stability. If you would like to strengthen your credit control process and improve cash flow, we would be happy to help. Call us on 01904 787 973 or book a call with our team .
Referrals are often described as the lifeblood of a business. That may sound like a cliché, but for many firms it is the truth. A referred customer often arrives with trust already in place. They are more likely to listen, more likely to buy and more likely to stay. Yet most businesses treat referrals as something that either happens or it doesn’t. In reality, referrals are almost never accidental. From our experience, they are the result of clear positioning and consistent follow-up. So here are some practical steps you can take to make referrals a steady and reliable part of your growth. Be clear about who you help One of the biggest barriers to referrals is vagueness. If someone asked your customer, “Who would you recommend?”, would they know exactly who to suggest? Instead of describing your business in broad terms, be specific. For example: “We design websites for independent cafés and restaurants.” “We help tradespeople move from sole trader to limited company.” “We work with e-commerce brands to help them sell more online.” When people understand precisely who you are best suited to, it becomes easier for them to think of someone. Ask at the right time Timing makes a huge difference. The most natural moment to ask for a referral is just after you have delivered something of value. Ideally, something that as really blown their metaphorical socks off! That might be when a project finishes successfully, when a customer gives positive feedback or when you solve their problem quickly. A simple sentence is often enough, “If you know any other business owners like you who are struggling with this, I would really appreciate an introduction” or if you wanted to be even more direct, “Is there anyone you know who you think might benefit from our services as well?” Stay visible Referrals often come down to how often you cross someone’s mind. If clients only hear from you when you send an invoice, you are easy to forget. Sharing a short client update email, commenting on their LinkedIn posts, sending a relevant article when you spot one, or arranging a brief catch-up call will keep you at the front of their mind. You are not asking for a referral every time, but you are reminding your clients what you do and that you do it well. Top tip: Put a reminder in your diary to contact your best clients once a quarter, even if it is just to say hi or to see how they’re doing. Avoid sounding overwhelmed Many business owners answer, “How’s business?” with “We’re so busy.” While that may be true, it can unfortunately discourage referrals. If people believe you do not have capacity, they are unlikely to introduce you to others. A better response might be that things are going well, and you are always keen to speak with the right type of client. And remember, referrals work both ways. When you actively introduce your clients to useful contacts, they are far more inclined to return the favour. It is a simple principle, but one that is often overlooked. Track where new work comes from Finally, measure it. Ask every new customer how they heard about you and keep a record. Over time, patterns appear. You may find that a handful of loyal customers account for a significant proportion of your introductions. Those relationships are worth nurturing. When someone does refer you, acknowledge it properly. A handwritten thank you card, a small gift or even a personal message expressing genuine appreciation goes a long way. This extra effort reinforces the relationship and makes future referrals far more likely. How we can help We hope you have found this useful. If you have any questions about strengthening your business or would like to talk through your plans, we are always happy to help. To find out how we can work together, call us on 01904 787 973 or book a call with our team .
The latest figures from the Office for National Statistics show the UK economy grew by 0.1 percent in the final quarter of 2025. That leaves annual growth at 1.3 percent for the year as a whole, slightly higher than 2024 but below the Bank of England’s earlier forecast of 1.4 percent. The detail behind the figures shows an uneven picture. The services sector, which represents the largest part of the UK economy, recorded no growth in the final quarter for the first time in over two years. Within that, professional, scientific and technical activities declined by 1.1 percent. Construction fell by 2.1 percent over the quarter, its weakest performance in four years, reflecting a drop in both repair and maintenance work and new projects starting on site. Manufacturing provided the main support to growth, helped in part by Jaguar Land Rover restarting production following a cyber-attack earlier in the year. Travel agencies, tour operators and administrative support services also performed strongly. Business conditions remain mixed The Bank of England recently lowered its forecast for UK growth in 2026 to 0.9 percent and raised its expectation for unemployment. While some economists believe the latest data could support an interest rate cut in the coming months, others suggest policymakers may wait for clearer signs that inflation is slowing. Business groups continue to report concerns about rising costs. Surveys from the British Chambers of Commerce indicate that taxation and inflation remain key issues for firms, with particular focus on increases in employer National Insurance contributions. What this means for business owners For many small and medium-sized businesses, the figures reinforce a familiar theme: growth is present, but limited. In this environment, it is sensible to: Keep cash flow forecasts up to date Review pricing and margins carefully Factor employer National Insurance changes into staffing decisions Monitor borrowing costs in case of future interest rate movements How we can help If you would like to review how the current economic outlook could affect your business, we would be more than happy to talk. Call us on 01904 787 973 or book a call with our team .
The self-assessment deadline comes around at the same time every year, but thousands of people still miss it. If you were required to submit a self-assessment tax return and did not file by 31 January, HM Revenue and Customs now treats the return as late. That does not mean the situation cannot be resolved, but it does mean penalties may already apply and further charges can build quickly if nothing is done. Missing the self-assessment deadline does not mean the situation cannot be put right. But acting quickly can make a real difference to the penalties and stress involved. The annual self-assessment filing deadline passed on 31 January. Anyone who was required to submit a tax return for the 2024 to 2025 tax year and has not yet done so will now be classed as late by HM Revenue and Customs. An automatic penalty applies as soon as the deadline is missed, even if no tax is owed or the tax has already been paid. What penalties apply now The first penalty is a fixed £100 charge. This applies immediately once the deadline has passed and cannot usually be appealed unless there is a recognised reasonable excuse. If the return remains outstanding for more than three months, further penalties can start to build up. These are charged at £10 per day, for up to 90 days, meaning an additional maximum penalty of £900. If the return is still not filed after six months, HMRC may charge a further penalty. This is the higher of £300 or 5% of the tax due. After 12 months, another penalty of the higher of £300 or 5% of the tax owed can be added. Separate penalties apply if tax is paid late. These are charged at 5% of the unpaid tax after 30 days, six months and 12 months. Interest may also be added to any outstanding balance. Even if you cannot pay in full, filing the return as soon as possible helps limit how far penalties can escalate. Reasonable excuses and appeals HMRC does allow penalties to be cancelled in limited circumstances where there is a reasonable excuse. These might include serious illness, a bereavement, or an unexpected event that genuinely prevented the return being submitted on time. Being busy, forgetting the deadline, or not having all paperwork ready are not usually accepted as valid reasons. Any appeal must be made after the return has been filed, not instead of filing it. What to do if you cannot pay If you have filed your return but cannot afford to pay the tax bill in full, you may be able to apply for a Time to Pay arrangement. This allows the tax owed to be spread over monthly instalments, subject to meeting HMRC’s criteria. The option is usually available online for debts under £30,000, provided returns are up to date. How we can help If you have missed the deadline, the most important step is to deal with it promptly and correctly. We can help you file your outstanding return, check whether penalties are correct, and advise on whether an appeal is appropriate. We can also liaise with HMRC on your behalf, help you apply for a Time to Pay arrangement, and ensure future deadlines are managed properly so this does not happen again. If you would like support with a late return or ongoing self-assessment obligations, call us on 01904 787 973 or book a call with our team .
Pensions remain one of the most tax efficient ways to save for the future, and thoughtful planning around contributions continues to be one of the most effective tax planning tools available. However, recent changes announced in the Autumn Budget, alongside upcoming reforms to the Inheritance Tax treatment of unused pension funds, highlight the importance of reviewing retirement planning sooner rather than later. Below, we outline the key changes and what they may mean for individuals and business owners. Salary sacrifice changes From 6 April 2029, full tax-free salary sacrifice for pension contributions is due to be restricted. A new £2,000 limit will apply to the amount employees can contribute through salary sacrifice without incurring Income Tax and National Insurance contributions (NICs). This change will affect pension schemes operated by UK employers. Around eight million employees currently use salary sacrifice to fund pension contributions, with over three million sacrificing more than £2,000 of salary or bonuses each year. For many, this change could significantly alter the tax efficiency of their retirement savings strategy. Why the government is making changes The government has stated that it continues to support and incentivise pension saving, retaining Income Tax and NICs reliefs on pension contributions worth more than £70 billion annually. Most other salary sacrifice arrangements were closed in 2017. Pension salary sacrifice remained in place, but its cost has risen sharply. Forgone NICs increased from £2.8 billion in 2016/17 to £5.8 billion in 2023/24, and without intervention this figure was forecast to rise to almost £8 billion by 2030/31. Pension contribution rules explained Individuals receive tax relief on pension contributions at their marginal rate. Relief is available in each tax year on contributions up to the higher of: 100% of net relevant earnings £3,600 gross However, there are limits on how much can be contributed tax efficiently. The annual allowance caps the total amount of pension saving that can receive tax relief each year. For the 2025/26 tax year, the annual allowance remains at £60,000. Contributions above this level may trigger a tax charge. Reduced allowance for higher earners For higher earners, a tapered annual allowance may apply. This affects individuals with: Threshold income above £200,000 Adjusted income above £260,000 Where adjusted income exceeds £260,000, the annual allowance is reduced by £1 for every £2 over this limit, down to a minimum of £10,000 once adjusted income reaches £360,000. Using unused allowances from earlier years Unused annual allowance can be carried forward for up to three tax years. This can be particularly helpful for individuals with fluctuating income, or owner-managed businesses where profits vary year to year. For the 2025/26 tax year, unused allowances from 2022/23, 2023/24 and 2024/25 can be carried forward, provided the individual was a member of a registered pension scheme in those years. It is worth noting that the annual allowance for 2022/23 was £40,000, lower than the current limit. Keeping track of pension savings It is surprisingly common for people to lose track of their pension savings over time. Current estimates suggest there are around 3.3 million lost pension pots in the UK, holding a combined £31.1 billion. The average lost pot is largest among those aged 55 to 75, at approximately £13,500. Many pension providers offer tracing and consolidation services, and the government’s Pension Tracing Service can also help individuals locate missing pensions. Looking ahead, the planned pensions dashboard aims to provide a secure, online view of all pension savings in one place. While there is no confirmed public launch date yet, it is expected to make managing pensions far simpler in future. Talk to us Pension rules can be complicated and changes often have a significant impact on your long-term tax position. Whether you are employed, self-employed or running your own business, getting the right advice can help ensure your pension strategy remains tax efficient. If you would like to review your pension planning or understand how these changes may affect you, call us on 01904 787 973 or book a call with our team .
Recent figures from the Office for National Statistics suggest that wage growth in the UK is beginning to ease. Between September and November, average pay growth slowed to 4.5%, with private sector wage increases falling to their lowest rate in five years. At the same time, the number of people on company payrolls dropped by 135,000, with retail and hospitality seeing some of the sharpest declines. On the surface, this might sound like dry economic data. But beneath the headlines, there are some very real implications for business owners. A slowdown that feels counterintuitive For many employers, particularly those who have struggled to recruit and retain staff over the past few years, the idea that slower wage growth could be “good news” feels odd. After all, rising wages usually mean happier staff and lower turnover. But from a wider economic perspective, slower wage growth reduces pressure on inflation. When wages rise quickly, people tend to spend more, pushing prices up. That is one of the reasons the Bank of England has kept interest rates high. With wage growth easing and inflation falling slightly, economists believe this increases the likelihood of interest rate cuts later this year. That matters for businesses because interest rates affect borrowing costs, cash flow, and confidence. Why private sector businesses are feeling the pinch The data also highlights a growing gap between public and private sector pay. Public sector wages rose by nearly 8%, while private sector pay grew at closer to 3.6%. For private businesses, this reflects a tougher trading environment. Costs remain high, consumer spending is under pressure, and many businesses are being more cautious about hiring. The fall in payroll numbers, even heading into the Christmas period when hiring is usually stronger, suggests businesses are choosing to do more with less. This is not necessarily a sign of panic, but it does point to a period of consolidation rather than expansion. What business owners should take from this For business owners, this data is not something to worry about, but it is something to be aware of. A few practical points to consider: Wage planning needs to be realistic. Automatic annual pay rises may not be sustainable in the current climate. Any increases should be tied to affordability, productivity, and long-term plans. Cash flow matters more than ever. Slower growth and higher borrowing costs mean keeping a close eye on forecasts, reserves, and commitments. Hiring decisions deserve scrutiny. Bringing someone on board is a long-term cost, not just a monthly wage. It is sensible to review whether roles are essential now or can wait. Interest rate changes could help later. While rates are expected to hold in the short term, the direction of travel may start to ease pressure on loans and finance later in the year. Staff communication is key. If pay rises are smaller or delayed, being open and honest helps maintain trust and morale. A reminder about context Economic headlines rarely tell the full story on their own. Slowing wage growth does not mean wages are falling, nor does it mean businesses should stop investing in their teams. What it does mean is that the post-pandemic surge in pay and demand is settling, and businesses are entering a more measured phase. Understanding that context helps owners make better decisions rather than reacting to headlines alone. How we can help At Inglis, we work with businesses to make sense of changes like these and understand what they mean in practice. If you would like help reviewing your payroll costs, planning pay increases, or sense-checking decisions around hiring and cash flow, we are always happy to talk things through. You can call us on 01904 787 973 or book a call with our team .
Social media seems, once again, to be ablaze with the famous question: How many r’s are in strawberry? It is one of those prompts that reliably resurfaces every few months, usually accompanied by screenshots of ChatGPT confidently giving the wrong answer. On the surface, it is a harmless curiosity. A bit of fun. But it also reveals something far more important about how AI works, and where its limitations still sit. It often looks like modern AI can accomplish any task. Want a fun marketing image? Easy. Need a blog post written? Done. Want to use AI to create a romantic song for your wedding anniversary? You’ll have it in seconds. Yet despite how magically the technology seems, AI still falls surprisingly flat when it comes to certain basic tasks. Tasks you would expect a seven-year-old to achieve with ease. It is amusing, and slightly baffling, to see ChatGPT struggle with something as simple as counting letters in a word. But it is not just ChatGPT being glitchy or careless. There are structural reasons why large language models struggle with certain words more than others. Take the question itself: how many r’s are there in the word strawberry? For most people, the answer is immediate. You picture the word, scan it, and count. Three. For ChatGPT, the process is completely different. It does not “see” words as letters in sequence. It predicts likely outputs based on patterns it has learned from enormous volumes of text. When asked, what answer does it give? Just a clear and confident: “two.” So, for all the billions in investment, the vast computing power, the pressure on global energy and water resources, and the near-mythical reputation AI now carries, it still cannot reliably answer how many r’s are in strawberry. That should give anyone pause before using AI for things that really matter. Why this matters for tax, finance, and professional advice The strawberry example is trivial, but the underlying issue is not. AI systems are designed to produce plausible responses, not guaranteed correct ones. When they get things wrong, they often do so with complete confidence. That is a dangerous combination in areas like tax, accounting, and compliance. With self-assessment deadlines approaching, it is tempting for business owners to ask AI questions such as: Can I claim this expense? Do I need to register for VAT? How should I structure my income to be more tax-efficient? AI can produce an answer quickly, and it will often sound reasonable. The problem is that it may be outdated, oversimplified, or simply incorrect for your specific circumstances. UK tax law is nuanced, highly contextual, and frequently updated. AI does not understand your full financial picture unless you give it every detail, and even then, it cannot apply professional judgement in the way a qualified adviser can. The same risk applies when using AI for business communications or financial decisions. Using AI to draft explanations, summaries, or documents without proper review can introduce subtle errors. A missed exception, a misquoted threshold, or an outdated allowance can all undermine confidence and potentially create problems later. Using AI safely and sensibly in practice AI is not useless. Far from it. But it needs to be used with care and clear boundaries. Here are a few practical guidelines help reduce risk: Treat AI as a starting point, not a final answer. It can help you think, outline, or draft, but it should never be the last word on technical matters. Always verify facts against authoritative sources, such as HMRC guidance, legislation, or professional manuals. Do not rely on AI for personalised tax advice. Review anything important before acting on it. If you would not be comfortable explaining it to HMRC, it should not be based on an unchecked AI response. Be especially cautious with deadlines, thresholds, and eligibility criteria. These are areas where AI errors are common and costly. AI can save time, spark ideas, and help with structure and clarity. What it cannot do, at least not yet, is replace professional judgement, accountability, or detailed technical understanding. If it can confidently miscount the letters in strawberry, it can just as confidently misstate a tax rule. The difference is that one is a joke on social media, and the other can have real financial consequences. How we can help At Inglis, we support individuals and businesses with clear, practical accounting advice you can rely on. We understand that tools like AI can be useful, but when it comes to tax, compliance, and financial decisions, having a trusted adviser still matters. If you would like a second opinion on a tax question, help making sense of your numbers, or reassurance that you are doing the right thing, we are always happy to talk things through. You can call us on 01904 787 973 or book a call with our team .
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