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Cybersecurity might sound like something only big corporations need to worry about, but in truth, small businesses are increasingly in the firing line. In fact, many cyber criminals deliberately target smaller firms, knowing they often lack the resources and expertise to protect themselves properly.
The most common threat is phishing. These are fake emails that look convincing, aiming to trick you or your employees into giving away passwords, payment details, or sensitive company data. Ransomware is another growing problem — hackers encrypt your files and demand payment to unlock them. For a small business, losing access to critical data can be absolutely devastating.
One major risk area is the use of outdated software. If your computers, point-of-sale systems, or even your website platform aren't regularly updated, they can become easy entry points for hackers. Even something as simple as using weak passwords or not backing up data can create big vulnerabilities.
There’s also the reputational damage to think about. If a customer’s personal information gets leaked because of a cyber-attack, trust is hard to rebuild. For businesses that rely heavily on loyal clients and word-of-mouth referrals, a breach could be disastrous.
Many small businesses wrongly assume they can’t afford cybersecurity. But basic protections don’t have to cost the earth. Regularly updating systems, training staff to recognise dodgy emails, using multi-factor authentication, and investing in reliable antivirus software are all relatively low-cost measures that can offer significant protection.
Cyber insurance is another option that more small businesses are exploring. Policies vary, but good cover can help with the financial hit if the worst happens and often includes access to expert help to get you back up and running.
The Government’s Cyber Essentials scheme is also worth looking at. It’s a certification that shows you take cybersecurity seriously, and it can even help you win contracts, particularly with larger companies or public sector work.
Ultimately, cybersecurity is no longer a ‘nice to have’ — it’s as essential as locking your front door at night. A little investment of time and money now can save an awful lot of heartache and cost down the line.
For many small business owners, getting access to funding feels like trying to squeeze water from a stone. Traditional banks have always been a bit cautious when it comes to lending to smaller enterprises, but over the past few years, it’s become even tougher. With the economic uncertainty lingering after Brexit, COVID-19, and a volatile global market, lenders are now scrutinising applications more closely than ever.
Many businesses face a chicken-and-egg situation. They need funding to grow, but without strong turnover or solid security (like property), banks are reluctant to say yes. Even successful businesses often find they don't meet the banks' ‘tick box’ criteria, especially if they are newer or operate in sectors seen as high risk.
Alternative finance options have grown significantly. Crowdfunding platforms, peer-to-peer lending, and invoice financing are now on the table for small businesses. There are even government-backed schemes, like the British Business Bank's programmes, which can help. But many business owners are unsure about how these work or are wary of taking on unfamiliar debt.
Another challenge is the cost. Interest rates have risen sharply, meaning borrowing is far more expensive than it was just a couple of years ago. What might have been a manageable loan repayment in 2020 could now be uncomfortably high.
Grants do exist, but they are often highly competitive, sector-specific, or tied to innovation and sustainability projects. Day-to-day businesses just trying to expand their premises, hire staff, or invest in new equipment can feel left out.
Navigating the funding landscape requires time, research, and often professional advice. Some businesses are turning to financial brokers to find the best options, but this comes with its own costs and risks. Others are choosing to grow slowly, using retained profits rather than borrowing at all.
At the end of the day, access to funding remains a major barrier to scaling up for many UK small businesses. Without new sources of finance, many will simply tread water instead of reaching their potential.
A reminder that increases to the rate of National Insurance contributions (NICs) that are paid by employers came into effect on 6 April 2025. The main rate of secondary Class 1 NICs has increased to 15% (from 13.8%). This applies to earnings above the secondary threshold for employees. In addition, both Class 1A and Class 1B employer NIC rates—typically applied to benefits-in-kind and PAYE settlement agreements—have also increased in line with the main secondary rate.
The Class 1 NICs secondary threshold, the level at which employers start to pay NICs, has been reduced to £5,000 (from £9,100) per year. This change took effect on 6 April 2025 and will last until 5 April 2028. After that, the threshold will be adjusted annually based on the Consumer Price Index (CPI).
To help mitigate the impact of these increases—particularly for smaller employers—the government has expanded the Employment Allowance. From April 2025, the allowance has risen from £5,000 to £10,500. The previous eligibility restriction, which limited the allowance to businesses with less than £100,000 in annual employer NIC liabilities, has now been removed. This change means more employers will now qualify for the allowance.
MTD for Income Tax kicks off in April 2026 for those earning over £50k. Digital records, quarterly updates, and tougher penalties are on the way. If this affects you, it’s time to get ready.
Designed to modernise the tax system and improve accuracy, MTD will significantly change how Income Tax is reported and paid. With less than a year until the first group of taxpayers must comply, now is the time to prepare.
MTD for Income Tax will become mandatory for self-employed individuals and landlords with annual business or property income exceeding £50,000 from April 2026,. This will require taxpayers to submit quarterly updates to HMRC, maintain digital records, and comply with a new penalty regime for late submissions and payments.
The second phase of implementation will begin in April 2027, extending the requirements to those earning between £30,000 and £50,000. In a further expansion announced during the Spring Statement 2025, MTD obligations will apply to sole traders and landlords with income over £20,000 starting April 2028. The government has also indicated that it is considering the best approach for individuals earning below this threshold.
HMRC is currently contacting taxpayers whose 2023–24 self-assessment returns indicate income near or above the £50,000 threshold. These letters are intended to provide advance notice of upcoming obligations under MTD.
Skip the phone queues. Your Personal Tax Account lets you manage everything from tax codes to refunds online. Quick, secure, and all in one place. If you haven’t signed up yet, now’s the time.
Your Personal Tax Account (PTA) is a simple and secure way to manage your tax affairs online. If you want to complete tasks like checking your tax code, claiming a refund, or updating your details, this can all be done in one place. This offers a practical alternative to contacting HMRC by phone or post, helping you stay on top of your finances with minimal hassle.
While every UK taxpayer is assigned a PTA, individuals must register via the Government Gateway to begin using the service. Identity verification may be required during the setup process.
Currently, the following services are accessible through your PTA:
The PTA plays an important role in HMRC’s ongoing digital transformation, aimed at improving efficiency and accessibility across the UK tax system.
From April 2025, more low-income workers on Universal Credit can join Help to Save. Save up to £50/month and get a 50% bonus – up to £1,200 over 4 years. A simple way to build your savings.
The eligibility rules for the Help to Save scheme were extended on 6 April 2025. This means that the scheme is now open to more than 550,000 across the UK. The scheme is now available to anyone working and receiving Universal Credit.
The Help to Save scheme is intended to help those on low incomes to boost their savings. Eligible users of the scheme can save between £1 and £50 every calendar month and receive a 50% government bonus. The 50% bonus is payable at the end of the second and fourth years and is based on how much account holders have saved. The bonus is paid directly into the account holder’s chosen bank account. This means that anyone working and receiving Universal Credit can receive a maximum bonus of up to £1,200 on savings of £2,400 for 4 years from the date the account is opened.
The Help to Save scheme was also extended by a further 2 years, until April 2027. The last date an account can be opened under the current scheme will be 5 April 2027.
The eligibility criteria that applied before 6 April 2025 meant that savers had to be in receipt of Tax Credits or Universal Credit and be earning at least 16 hours a week at National Living Wage. These criteria have now been fully removed from the scheme.
Commenting on the changes, HMRC’s Director General for Customer Services, said:
'Thousands of customers have already benefitted from Help to Save and many more are now eligible to get a great return of 50% on top of their savings, no matter how little you can save each month. Go online or via the HMRC app to find out more and apply today.'
A school inspector dismissed for brushing water off a pupil’s head won his unfair dismissal claim against OFSTED. Mr. Hewston worked as a Social Care Regulatory Inspector and, on the 8th of October 2019, during a school inspection, he brushed water off the head and touched the shoulder of a young boy who had been caught in a rainstorm. The school reported the incident to OFSTED as a case of ‘inappropriate touching’ in an 11-page letter.
Disciplinary proceedings were instituted, and he was summarily dismissed for gross misconduct, despite his hitherto immaculate disciplinary record. Throughout the disciplinary process, Mr. Hewston maintained that his conduct was appropriate, even though he would not have done it again due to the trouble it had caused him. Mr. Hewston brought proceedings against OFSTED for both unfair and wrongful dismissal, both of which were dismissed. However, he successfully appealed at a tribunal, which found that the claimant had been unfairly dismissed, as OFSTED did not have a policy in place prohibiting physical contact with a child, nor any disciplinary rules defining touching as gross misconduct.
Section 94 of the Employment Rights Act (ERA) 1996 gives employees the right not to be unfairly dismissed, and the absence of published guidance or disciplinary rules on physical contact is dispositive. Indeed, the lack of any such guidance would result in the claimant not knowing that what he was doing was “so seriously wrong as to justify dismissal”.
The decision also makes it clear that a person cannot be dismissed because they did not show the ‘right’ reaction and insight during a disciplinary hearing. The fact that Mr. Hewston would never act the same way because of the trouble it caused him, rather than because he admits his action was ‘wrong’, is irrelevant; the salient point being that he would not do it again.
Employers must ensure that they have the right guidance and policies in place if a certain form of conduct is deemed inappropriate in their field; otherwise, any subsequent dismissal could be regarded as unfair. Your employees must be able to know what behaviours are reasonably expected from them.
Have you set up a suggestion scheme for ideas that could save or earn you money? Employee suggestion schemes can offer up to £5,000 tax-free for valuable input — and even £25 for smaller efforts. A win for innovation and your employee payslip!
An employee suggestion scheme can offer many advantages for businesses, not only in terms of the valuable insights and innovations employees contribute but also through the potential for significant tax-free rewards. These schemes can help businesses save money, drive new business, and foster a culture of continuous improvement, all the while offering employees incentives for their contributions.
HMRC outlines two types of awards that businesses can offer employees under such schemes:
In addition to these conditions, there are other reasonable criteria that must be met for the payments to be considered tax-free. These criteria are designed to ensure that the awards are made in a structured and transparent manner.
Use a company car for personal trips? Avoid a hefty tax charge by reimbursing your employer for private fuel by 6 July 2025. It’s called “making good” – and it could save you a chunk in tax if your private mileage is low.
To avoid the car fuel benefit charge, an employee must "make good" the cost of all fuel used for private journeys no later than 6 July following the end of the relevant tax year. This means that the employee needs to reimburse the employer for any private fuel used during the 2024-25 tax year by this deadline to prevent any tax liabilities related to the fuel benefit.
When an employee is provided with fuel for private use in a company car, the default rule is that the employee is required to pay the car fuel benefit charge. This charge is calculated based on the car's CO2 emissions rating and is applied to the car fuel benefit multiplier. This has just increased to £28,200 for 2025-26 (2024-25: £27,800).
However, the car fuel benefit charge can be avoided if the employee repays the employer for all private fuel, a process known as "making good." Private fuel use includes fuel used for commuting to and from work.
By making good, HMRC will accept that no car fuel benefit charge applies, allowing the employee to avoid the income tax charge on private car fuel. Typically, it is more beneficial for an employee to reimburse the employer for the private fuel rather than pay the Income Tax charge, especially if private mileage is low.
If the employee does not demonstrate that they have repaid all fuel costs associated with private journeys (including commuting), the car fuel benefit charge will still apply. Therefore, it is crucial for employees to maintain accurate records of private mileage and ensure that all fuel costs for private use are fully repaid by the deadline to avoid unnecessary tax charges.
Struggling with unpaid invoices? If you've paid VAT to HMRC but never received payment from your customer, you may be able to reclaim that VAT. Learn how bad debt relief works and whether switching to cash accounting could ease your VAT woes.
The VAT bad debt relief provisions enable businesses to reclaim VAT that has been paid to HMRC when a customer fails to pay for goods or services within a reasonable period. This typically applies when an invoice has been issued, but payment has not been received for an extended period (usually six months after the due date).
Under standard VAT accounting procedures, businesses are required to account for VAT at the time an invoice is issued, regardless of whether payment has been received. However, businesses can claim bad debt relief if specific conditions are met.
The primary conditions for claiming bad debt relief, as outlined in HMRC’s guidance, include:
It is important to note that businesses using the cash accounting scheme, or those that use certain retail schemes, only account for VAT on the amounts they have actually received from customers. As such, businesses operating under these schemes are generally not required to make bad debt relief claims, as VAT is only paid once payment is received.
Small businesses experiencing significant issues with bad debts may find it beneficial to apply for the cash accounting scheme, as this can help mitigate VAT liabilities by deferring payment until the customer settles their debt.
