What are the opening hours?

Monday 9am - 5pm Tuesday 9am - 5pm Wednesday 9am - 5pm Thursday 9am - 5pm Friday 9am - 5pm

IAIS, Mansfield Park, 211 Dumbarton Road, Glasgow (2026)

Offices based in Glasgow and the Scottish Borders at Dumfries covering Cumbria and The Lake District.

03/06/2026

NEWS Wednesday, 3rd June 2026

Family firms hit hard by tax hikes

Family-owned businesses in the UK are struggling to hire due to rising employment costs, according to a Family Business UK (FBUK) report. Some 40% of family firms cite high wage expectations as the main barrier to recruitment. Neil Davy, chief executive of FBUK, called for a fairer tax system to alleviate pressures from national insurance contributions and minimum wage increases, which are hindering job creation. "Family firms remain eager to grow employment, but cost and uncertainty are forcing them to make unpalatable choices," Davy said, adding: "If we are to reverse this situation and allow businesses to create the opportunities workers need there must be a renewed focus on reducing the burden of national insurance contributions along with careful management of the national minimum and living wages."
Daily Express Daily Mail

TAX

ICAEW calls for longer pilot for corporate tax filing changes

The UK should extend the pilot phase for a new corporation tax return system, say tax professionals. A longer period would allow HMRC to assess initial submissions and enable software providers to make necessary adjustments, the Institute of Chartered Accountants in England and Wales said in a recent press release. HMRC aims to shift from a "free-format structure" to a standardised, tagged format for corporation tax computations, as outlined in a consultation document from March.
Bloomberg Tax

Scottish accountants demand urgent tax reform

Scottish accountants are calling for urgent reform of income tax and national insurance, according to a recent poll by the Institute of Chartered Accountants of Scotland (ICAS). The survey revealed that 39% of members identified these taxes as the most pressing issues, far surpassing concerns over business rates. Katie Close, director of tax at ICAS, commented: "The strength of feeling around income tax and national insurance reflects the growing impact of fiscal drag."
Herald Scotland

Interest tax plan draws criticism

Experts say a new 22% tax on interest from uninvested cash in stocks and shares ISAs, effective April 2027, could erode public confidence in ISAs and deter cautious investors. This change aligns the tax rate with savings interest tax and is part of a broader strategy to reduce the cash ISA limit to £12,000. Antonia Medlicott, founder of Investing Insiders, said: "Taxing uninvested cash feels like a punishment aimed at diligent savers."

Daily Express Daily Star

Thresholds freeze pulls 7m into tax net

The freezing of tax thresholds until 2031 has resulted in 7m additional people entering the income tax net. The number of income taxpayers rose to 40m in the 2025/26 tax year, an increase of 1.3m from the previous year. Sarah Coles, head of personal finance at AJ Bell, says it is "worth considering ways to keep income tax to a minimum," including making pension contributions, getting tax relief at the highest marginal rate, or using a Cash ISA to protect savings interest from tax.
Daily Mirror

Retailers call for action on import tax loophole

Major retailers including Marks & Spencer, Primark, Next and Argos have urged ministers to close the £135 "de minimis" import tax loophole used by overseas rivals such as Shein and Temu. In a letter to Sir Keir Starmer and Rachel Reeves, they proposed a £2.60 levy on low-value parcels, claiming it could raise £1.7bn a year for the Treasury.
Financial Times The Times The I City AM Daily Mail The Standard

Pension pot rethink could mean 'double tax'

Changes to tax rules due in April 2027 would see pension pots of people who are over 75 when they die subject to both inheritance tax and income tax, leading to what critics call a "double tax" of up to around 67%.
Daily Express

ACCOUNTING

ACCA calls for consultation before UK adopts simplified audit standard

The ACCA has urged the Financial Reporting Council (FRC) to adopt the International Standard on Auditing for Less Complex Entities (ISA for LCE). The accountancy body argues that adopting the global standard would allow auditors to focus on the key circumstances of less complex entities, enhancing audit quality for smaller and less complicated businesses.
Scottish Financial News

ACCA poll reveals concern over AI impact

An Association of Chartered Certified Accountants survey of more than 11,000 finance professionals in 160 countries saw more than half of respondents say they are concerned over AI's impact on their roles. Additionally, around 66% desire their work to contribute positively to society and address climate change.
Bloomberg Tax
SMEs

FSB calls for business rates rethink

The Federation of Small Businesses (FSB) has urged the Government to reconsider business rates for small firms, as over 100,000 companies now face this tax for the first time. The FSB has requested an increase in the threshold for business rates from £15,000 to £25,000, arguing that this change would benefit businesses outside London. The FSB also pointed to issues with new calculations for shared office spaces, which have led to unexpected tax bills for many small enterprises. The Treasury said it has allocated £4.3bn to support businesses facing these increases.
The Times

Banks push for small business loan boost

The UK's most prominent banks are urging Chancellor Rachel Reeves to enhance the Government's Growth Guarantee Scheme (GGS) to increase capital for SMEs. UK Finance, representing major banks like Barclays, Lloyds and NatWest, has requested a five-fold increase in the maximum loan limit to £2m, backed by a 70% Government guarantee. Chief executive Davis Postings notes that demand for loans exceeds current allocations, with potential for over £10bn in additional SME turnover.
City AM

ECONOMY

Bailey: Britain at risk of 'vicious circle' on debt

Britain is at risk of a "vicious circle" of rising borrowing costs if it fails to control debt, Andrew Bailey has warned. Higher costs on the Government’s near-£3tn debt could derail the Chancellor’s fiscal plans, weaken confidence, and push borrowing costs higher, the governor of the Bank of England said. Rates have climbed globally since the Iran war began, but Britain’s have risen more than any G7 nation, increasing pressure on public finances. Debt interest was already forecast to exceed £100bn annually. Bailey also said the Bank could continue to offload bonds for one to two years, despite calculations showing gilt sales are having a bigger effect on raising government borrowing costs than previously estimated. Meanwhile, Megan Greene, an external member of the Bank of England’s Monetary Policy Committee, warned that interest rates may need to rise as the conflict wears on.
The Daily Telegraph The Times

Credit card spending drops

Analysis from FICO reveals a significant decline in UK credit card spending, with the average down 6.6% month-on-month to £740. On an annual basis, average monthly spending was up just 0.3% on a year ago. Payment rates also fell, with the percentage of overall balances paid down 1% month-on-month and 3.7% year-on-year. Delinquency rates are rising, with a 29.5% month-on-month increase in customers missing one payment. The average active balance is 4.3% higher than a year ago at £1,925.
City AM

27/05/2026

NEWS Wednesday, 27th May 2026

London accounts for 36% of corporation tax receipts

Office for National Statistics data shows that London accounts for more than a third of the UK's total corporation tax receipts, with the tax take from firms in the capital totalling £33.4bn in the 2024/2025 financial year. This is 36% of the £93.1bn total for the country as a whole. The data shows that the proportion has increased, with London accounting for 33% of corporation tax five years ago. London also generates about a quarter of total income tax receipts, contributing nearly £250bn to government revenue, but took less VAT than the South East of England. Analysis also shows that expenditure in London is lower than its tax receipts, meaning the capital had a fiscal surplus.
City AM Daily Express

TAX

Entrepreneur exodus warning over wealth taxes

Ruth Sunderland in the Mail says a wealth tax proposed by Labour leadership hopeful Wes Streeting could significantly impact private investors and small business owners. The plan aims to equalise capital gains tax with income tax, potentially doubling rates for top earners in a move Mr Streeting claims could raise £12bn. Critics argue that the plan may harm the UK's business environment and suggest scrapping stamp duty on share trading instead. Ms Sunderland says the proposal "is at odds with the ambition of successive chancellors... to boost UK capital markets" and warns that it could "damage the UK's reputation as a good place to set up a business and drive entrepreneurs out of the country."
Daily Mail

Reform vows to scrap overtime tax

Reform UK has announced a plan to eliminate income tax on overtime for those earning under £75,000. The £5bn annual tax cut would target workers who exceed a 40-hour week. Funding would come from a £40bn cuts programme. Shadow Chancellor Sir Mel Stride has questioned whether the policy is viable. Julian Jessop, a senior fellow at the Institute of Economic Affairs, warned: "If overtime is taxed at a lower rate, firms might just reduce pre-tax pay," and Helen Miller from the Institute of Fiscal Studies said the plan could also create an incentive to have more work classified as "overtime" in order to reduce tax payments.
BBC News The Sunday Telegraph Sunday Express Sunday Mirror

Labour urged to rule out pension tax raid

The Government has been urged to commit to protecting pensions from tax raids, with AJ Bell emphasising the need for reassurance for workers regarding their retirement savings. With it suggested that Andy Burnham and Wes Streeting may look to challenge Keir Starmer's position as Labour leader, there are concerns that a new Prime Minister - and potentially a new Chancellor - may target pension contributions and tax-free withdrawals. Rachel Vahey, head of public policy at AJ Bell, has called for the Government to commit to a Pension Tax Lock "to bring certainty and clarity to the debate around the future of pensions."
Daily Mail

Tax burden on households skyrockets

The tax burden on UK households has increased significantly, with HMRC collecting £87.3bn in taxes in April, £6.3bn more than last year. Workers contributed £52.5bn in income tax and National Insurance, as frozen thresholds pushed more into higher tax brackets. Sarah Coles from AJ Bell stated: "These figures are set to climb even further."
Daily Mail

Property taxes in Britain hit record high

Britain's property tax burden has reached a record high, now at 3.7% of GDP, according to analysis. The upcoming "mansion tax" will impose additional costs on homes valued over £2m, potentially affecting ordinary properties in London. Experts warn that the threshold may remain unchanged over time, or even be reduced, leading to more homes falling into the tax net.
The Daily Telegraph

HMRC issues late-filing fine warning

HMRC has warned UK households to act quickly to avoid daily penalties for late self-assessment tax returns. Those who missed the January 31 deadline for 2024/25 tax returns face penalties of £10 per day, with the overall penalty capped at £900. After six months, those who have failed to file their return face a further penalty of 5% of the tax due or £300, whichever is greater. An automatic £100 penalty was triggered for missing the initial deadline.
Sunday Express

ACCOUNTING

Accountants still in high demand amid AI disruption

According to the Institute of Chartered Accountants in England and Wales (ICAEW), demand for accountants in the UK remains robust despite the rise of AI. The ICAEW's research indicates that while AI automates routine tasks, 74% of surveyed mid-tier firms plan to hire more staff with expertise in data analytics and technology. Alan Vallance, chief executive of ICAEW, said: "Demand for accountants remains high, but the nature of early-career accounting roles is expected to change." Additionally, firms are shifting hiring preferences, favouring school leavers over university graduates due to new employment laws and funding cuts.
City AM

FRC publishes review on structured digital reporting

The Financial Reporting Council (FRC) has published its latest review of structured digital reporting by UK listed companies. The report, Structured Digital Reporting: Insights 2025/26, identifies areas where relatively simple improvements would significantly enhance the quality, consistency and usability of digital financial reporting. The regulator said: "Structured digital reporting (SDR) is now well embedded across the UK market, with most companies producing compliant and well-structured filings. However, the FRC’s review identifies recurring issues that continue to limit the usefulness of structured data for investors, regulators and other users."

Financial Reporting Council

FRC concludes annual review of FRS 101

The Financial Reporting Council (FRC) has issued 'Amendments to FRS 101 Reduced Disclosure Framework – 2025/26 cycle', bringing to a close the latest annual review of FRS 101 'Reduced Disclosure Framework' While the core standard remains unaltered, the FRC has introduced limited drafting amendments to clarify requirements, align terminology with recent updates to FRS 102 and FRS 105, and make the framework easier for preparers to navigate.
Financial Reporting Council Scottish Financial News

SMEs

Small firms flag growth concerns

Scottish small businesses are experiencing significant challenges due to rising energy and fuel prices, according to a survey by Novuna Business Finance. The research reveals that 83% of firms identify external factors as barriers to growth, with 50% citing macro-economic uncertainty. Around 40% of businesses are concerned about the effects of overseas conflict on prices, surpassing the UK average of 32%.
The Scotsman

Bank lending to UK business at lowest for nearly 30 years

Bank lending to British businesses has dropped to a 30-year low, dipping to 59% of UK GDP in Q3 2025. The analysis says SMEs have been disproportionately affected.
Financial Times

ECONOMY

UK business activity fell for first time in more than a year in May

UK business activity fell for the first time in over a year in May, according to the S&P Global Flash UK PMI composite output index. The survey, which provides a measure of activity in the private manufacturing and services sector, fell to a 13-month low of 48.5 in May from 52.6 in April. The chief business economist at S&P Global Market Intelligence, Chris Williamson, said: "The UK economy is facing a perfect storm, as rising political uncertainty adds to the growing impact from the war in the Middle East. Businesses are reporting falling output, surging inflation, supply shortages and job cuts." Paul Dales, economist at Capital Economics, said the figures were the third dataset in three days that suggested "the Bank of England does not need to rush to raise interest rates."
Financial Times Reuters The Daily Telegraph

UK borrowing soars to £24.3bn

UK public sector borrowing reached £24.3bn in April, exceeding forecasts by £3.4bn. The Office for National Statistics (ONS) reported that debt interest repayments hit a record £10.3bn for April while predicting total borrowing could exceed the Office for Budget Responsibility's (OBR) estimate of £115.5bn for the year. ONS chief economist Grant Fitzner said increased spending on benefits contributed to the rise in borrowing. Lucy Rigby, Chief Secretary to the Treasury, commented: "We are cutting borrowing and debt... while driving growth through £120bn of additional capital investment over the Parliament."
Financial Times The Daily Telegraph The Guardian

22/05/2026

Purpose of this brief

This brief explains a temporary reduced rate of VAT of 5% that will apply to:

certain supplies of children’s meals

children’s admission to theatres, cinemas, concerts, exhibitions and shows

all admission tickets to certain attractions suitable for families with children

The reduced rate will apply from 25 June 2026 to 1 September 2026 (inclusive).

The reduced rate replaces the standard rate of VAT of 20% for supplies within scope during this period. These changes are subject to the relevant statutory instrument being made and coming into force, and this brief reflects the law as it is expected to apply once enacted.

Who this applies to

This brief is relevant to businesses making consumer‑facing supplies to families with children during the school summer holidays. This includes, but is not limited to, the following types of organisations and their advisers:

restaurants, cafés and similar catering establishments
cinemas, theatres, exhibition and performance venues
operators of circuses, fairs, amusement parks, theme parks, adventure parks and water parks, zoos and other animal attractions, soft play centres, observation attractions and certain other family-focused attractions

museums and similar cultural attractions

Background

In a Ministerial Statement made by the Chancellor on 21 May 2026, the government announced the introduction of a temporary reduced rate of VAT (5%) for supplies of children’s meals and tickets to certain attractions, intended to reduce the cost of selected activities and services for families with children during the summer holiday period. The reduced rate will apply from 25 June 2026 to 1 September 2026 (inclusive).

The reduced rate for children’s meals and children’s tickets for cinemas, theatres, exhibitions and shows covers those supplies that are marketed, priced and presented as intended for children. These do not generally apply to supplies aimed at adult customers, except where those supplies form part of a qualifying family package as described in this brief. The reduced rate will apply to tickets for all customers for attractions set out within this brief.

This cut in VAT rate from the standard rate of 20% will be introduced by statutory instrument and have effect on admissions from 25 June 2026 to 1 September 2026.

What supplies are covered

The reduced rate applies to the following categories of supplies where the conditions described are met:

children’s meals

children’s cinema, theatre, show and concert tickets

admission to certain attractions

Children’s meals

The reduced rate applies to the supply of children’s meals where
both of the following conditions are met:

the meal is held out for sale only as a meal for children

the meal is supplied as part of catering services by a restaurant,
café or similar establishment for consumption on the premises

Whether a meal is held out for sale only as a meal for a child will depend on how it is marketed, presented and priced rather than who consumes it (for example, being included on a distinct children’s menu).

The reduced rate does not apply for:

meals marketed as smaller portions

lower-calorie options

discounted versions of adult meals

shared meals intended for both adults and children

Where the same meal appears on both an adult and children’s menu, the children’s version would normally be differentiated by portion size and or price. Portion size alone is not a determining factor.

Where a children’s meal is supplied for a single inclusive price (for example including a drink or additional courses), the entire package can qualify for the reduced rate. Optional items, add-ons or upgrades priced separately that do not form part of the children’s meal remain subject to their normal VAT liability. Describing an item as ‘free’ does not determine its VAT treatment and normal VAT principles apply.

Meals include drink, meaning that a non-alcoholic drink supplied as part of a children’s meal will qualify for the reduced rate. Meals that include an alcoholic drink will not normally be regarded as a children’s meal.

Meals that are exempt from VAT (for example where supplied alongside exempt education or care) will be unaffected by these changes.

Takeaway meals do not qualify for the reduced rate.

For more information, read:

Food products (VAT Notice 701/14)
Catering and takeaway food (VAT Notice 709/1)
Example

If a restaurant offers a fixed price children’s meal (for example, main, drink and dessert) on a dedicated children’s menu. The whole supply is subject to the reduced rate.

If a children’s menu lists a main meal, with a drink or dessert available for an additional charge. If these items are also on the children’s menu, they may also benefit from the reduced rate. However, if additional items are selected from the standard menu, then the reduced rate does not apply.

If a menu includes a smaller or cheaper portion of an adult meal that is not presented as part of a children’s menu. This is not a children’s meal and remains standard-rated.

Children’s theatre and cinema tickets
The reduced rate applies to children’s admission tickets to:

cinema screenings
theatrical performances, shows and concerts
exhibitions
A children’s ticket is one that is held out for sale only as a right of admission for a child, based on how it is marketed, priced and presented by the supplier.

Where tickets are sold individually for different categories of customer, the reduced rate applies only to tickets that are marketed and sold as children’s tickets.

Where a ticket is held out for sale as a right of admission for a family which includes one or more children, the reduced rate applies to the whole ticket, including any adult admissions included within that package.

Standalone group or multi-person tickets that are not held out for sale as family admissions do not qualify. Standalone adult admissions remain standard-rated.

Example

If a cinema sells adult and children’s tickets separately. Only the children’s tickets are subject to the reduced rate. Adult tickets remain standard-rated.

If a theatre sells a family ticket (for example, two adults and two children) for a single price. As the package includes at least one child admission, the whole package is subject to the reduced rate.

If a venue sells only standard admission tickets and does not offer tickets marketed as children’s admissions. All tickets remain standard-rated.

Attractions and soft play
The reduced rate applies to charges made for a right of admission for any customers, regardless of age, to qualifying attractions that are suitable for families with children.

This includes admission to the following venues, unless that admission is already exempt from VAT (for example because it is supplied by a qualifying charity or other eligible body):

amusement parks and fairs, including water parks and theme parks (excluding pay-per-ride attractions)
circuses
adventure parks, including outdoor adventure centres
museums and similar cultural facilities, including planetariums, heritage sites, nature reserves and botanical gardens
zoos, aquariums, wildlife parks and farm visitor attractions
soft play centres, indoor bounce parks and indoor play facilities
observation attractions, including viewing platforms, towers and observation wheels

Only supplies of admission to these types of attractions fall within the scope of the relief.

The reduced rate applies to the charge for the right of admission only. Goods or services supplied separately (for example food, merchandise or upgrades) remain subject to their normal VAT treatment.

Where a single ticket gives admission to more than one attraction and this ticket is solely for admission within the relief period, then the relief may apply. If a ticket permits repeat entries outside the dates 25 June 2026 to 1 September 2026, then this will not qualify for the relief, unless the ticket is the same price as a single day entry. For example, a weekly or season pass allowing multiple visits beyond the relief period will not qualify where it is priced higher than a standard single-entry ticket. Repeat entry tickets solely for use within the relief period will qualify for the relief.

Sporting activities
The reduced rate does not apply to sport, including charges for spectating and for participating in sport or physical recreation. This includes:

admission to sports events
use of sports facilities
participation in recreational sport
Some supplies of sport or physical recreation may instead be exempt under VAT Notice 701/45.

Admission to shows and certain attractions
If you charge a fee for admission to screenings, performances and certain attractions where the supplies are currently standard-rated, you only need to charge the reduced rate of VAT for admissions between 25 June 2026 and 1 September 2026.

If the fee you charge for admission is already exempt, then the reduced rate will not apply. You can find out more about the cultural exemption in VAT Notice 701/47 on admission charges to cultural events.

Marketing, pricing and intention
The categories in this brief reflect those set out in the legislation. Whether a supply falls within those categories depends on how it is held out for sale, including how it is marketed, priced and presented.

Bundles and mixed supplies
Where admission, meals or tickets are supplied together with other goods or services for a single price, businesses should continue to apply normal VAT rules to determine the correct liability.

Only the part of the supply that falls within the descriptions covered by this brief may be eligible for the reduced rate. Other elements should be treated according to their normal VAT liability.

Time of supply
The reduced rate applies to supplies of a right of admission for a date falling between 25 June 2026 and 1 September 2026 (inclusive). Tickets bought during the period for admission on or after 2 September 2026 remain subject to the standard rate.

Where supplies are paid for in advance, businesses may opt to apply the lower rate of VAT on the supply in keeping with the existing change of rate provisions. This will apply to all prepayments, including those which may have taken place in advance of the announcement.

Where businesses have already accounted for VAT at the standard rate and subsequently choose to apply the lower rate, they should make the necessary adjustments in their VAT accounts. The Government would expect that where a customer has prepaid that they would be refunded for any additional VAT paid.

Businesses should apply the normal VAT rules on time of supply when determining the correct rate of VAT. For further information on tax points and the specific change of rate provisions, read VAT guide (VAT Notice 700).

More information
Continue to use existing VAT guidance to work out the VAT liability of your supplies.

If you have questions about this change, contact VAT: general enquiries.

20/05/2026

NEWS Wednesday, 20th May 2026

Labour's mansion tax could be deferred, with interest

Owners of homes valued at £2m or more may defer Labour's mansion tax until they sell their home or die if they meet low-income criteria, according to a consultation document published by the Government. However, interest will be charged on the deferred tax. The new tax, which was announced in Rachel Reeves' November 2025 Budget, will impose a surcharge from 2028, ranging from £2,500 to £7,500 annually. To be eligible for deferral, homeowners must prove an income below £35,000 or savings under £16,000. The move could force families to sell inherited properties in order to settle mansion tax bills, on top of inheritance tax liabilities. Additionally, homeowners who fail to pay or defer the tax could have the surcharge taken directly from their paycheques, or have charges registered against their home to ensure payment. An estimated 165,000 homes will pay the levy, raising an estimated £430m a year for the Treasury from 2028-29. Steve Reed, the Housing Secretary, said the surcharge would ensure those who own the most valuable properties in the country "pay their fair share" but his shadow Sir James Cleverly said Labour are "punishing aspiration and success" with "a cruel double death tax." Labour is also considering adding a premium on top of the surcharge for non-UK resident owners of high-value properties.
The Daily Telegraph Daily Mail The Times

TAX

Government urged to target the wealthy with tax hikes

The Resolution Foundation has urged the Government to increase taxes on wealthy households and reconsider the pensions triple-lock. A report from the think-tank recommends reforms including higher income taxes, council tax adjustments, and changes to capital gains and inheritance taxes. It says a "reset" should "double down on growth and focus on those who have borne the brunt of long-term economic stagnation: young people and working families," adding: "Their needs should be prioritised over advantaged wealthier households, who have benefitted from Britain's 40-year wealth boom." The Resolution Foundation has also called for an end to the triple lock which ensures that the state pension increases by either the rate of inflation, the average wage increase, or 2.5% – whichever is highest, saying the policy "makes sense if the pension was deemed too low, but – logically – there must come a point beyond which it can no longer be defended."
Daily Mail

12m state pensioners not covered by tax exemption

A tax exemption for state pensioners will benefit fewer than 1m individuals, according to a report by pension consultancy Lane Clark & Peacock (LCP). Of the 13.2m state pension recipients, only those who reached pension age after April 2016 qualify. Former Pensions Minister Steve Webb said the policy "discriminates against people on the old state pension system." The LCP report also warns that freezing tax thresholds while increasing state pensions will worsen the issue. LCP says that while increasing the tax allowance for all pensioners could be an option, this would come at "considerable" cost and benefit more than 8m pensioners who already pay tax. It adds that a cost effective solution could involve writing off "small" tax bills for pensioners, a move that avoids benefitting better off pensioners.
Sunday Express

Landlords brace for tax hike impact

Nearly half of landlords plan to increase rents due to upcoming tax rises, according to a poll by the National Residential Landlords Association (NRLA). As of April 2027, landlords will be taxed at 2 percentage points above normal income tax rates. Basic rate taxpayers will see a rise to 22%, while higher rate taxpayers will see rental income taxed at 42% and additional-rate taxpayers will be taxed at 47%. The NRLA said polling shows that 46% of its members plan to charge their tenants more as they will be taxed more heavily on that income. Ben Beadle, chief executive of the NRLA, said: "Renters will be left picking up the bill for the Chancellor's tax hikes." The Office for Budget Responsibility estimates that the change will generate £500m annually for the Treasury from 2028/29.
Daily Mail

Wealthy flee amid tax changes

The Sunday Times Rich List reveals a significant exodus of Britain's wealthiest residents, with it suggested that some of the departures are linked to tax reforms. Nearly 17% of individuals from the 2024 list are absent in 2026, primarily due to relocation. Notably, 27 foreign nationals have left, taking substantial wealth with them. It is suggested that the abolition of the non-dom tax regime and changes to inheritance tax may have prompted the exodus and are stoking fears of future tax increases. Leslie Macleod-Miller, CEO of Foreign Investors for Britain, called the list "a profit warning for Britain." Over £780bn of wealth is now held by those living abroad, raising concerns about the UK's investment appeal.
The Times

Inflation will add £12bn to business rates take

Rising inflation is projected to generate an additional £12bn in business rates in England. The Treasury anticipates collecting £118bn from business rates by 2029, well above previous forecasts, according to analysis. Economists warn of inflation surging to 6.2% later this year, impacting business rates calculations. Hospitality leaders have warned that higher rates will add further pressure on businesses already facing rising wage and energy costs. Kate Nicholls of UKHospitality said it is "critical" that the Government "significantly increases the business rates discount offered to hospitality businesses and limits any inflation-linked increase."
The Daily Telegraph

Pension experts concerned over IHT reforms

Pension experts are concerned about upcoming reforms that will subject unused pension pots to inheritance tax (IHT) for the first time. Starting in April 2027, scheme providers can withhold up to 50% of a pension pot to cover potential IHT liabilities. Experts warn that these changes may lead to delays and disputes among families as executors navigate complex information during bereavement. Penny Cogher, pensions partner at Irwin Mitchell, said: "Pension scheme administrators will be looking for scheme members to take more upfront responsibility."
City AM

Sole traders unsure over MTD

Many sole traders are unprepared for the upcoming Making Tax Digital (MTD) deadline on August 7, with research from Sage revealing that 70% lack understanding of the new requirements. Only 8% are using MTD-compatible software to manage their tax records. Under MTD, sole traders earning over £50,000 must keep digital records and submit quarterly updates to HMRC.
Daily Express

ACCOUNTING

Accounting sector sees record revenue

Office for National Statistics data shows that the UK's accounting sector achieved a record monthly revenue of £4.3bn in March, This marked an increase of nearly 10% from February's £3.96bn and is 5% higher than March 2025's total. Experts say the strong performance may be short-lived, however, warning of uncertainties due to the conflict in the Middle East. Suren Thiru, chief economist at the ICAEW, said that while the figures "suggest a refreshingly resilient first quarter for the economy," the "surprisingly strong outturn is flattered somewhat by businesses bringing forward activity to guard against the turmoil triggered by the Iran war." Looking ahead, Julie Matheson of law firm Kingsley Napley, said: "A summer of lacklustre economic growth is predicted from which the accounting sector is unlikely to be immune."
City AM

Big Four firms post more job adverts for AI specialists than auditors

The Big Four accounting firms prioritised AI roles over auditors last year, reflecting industry shifts and increasing demand for AI expertise amid technological disruption.
Financial Times

SMEs

Business rates appeal delays raise concerns for small firms

Small business owners and trade groups have warned that long delays in the business rates appeals system are placing pressure on pubs, restaurants and independent retailers. Around 40,000 appeals are reportedly awaiting responses from the Valuation Office Agency, with average waiting times of 11 months and some cases taking far longer. Industry bodies including UKHospitality and the Federation of Small Businesses said firms are often forced to continue paying disputed rates while appeals are unresolved. The Booksellers Association warned the delays threaten the viability of independent shops already facing rising costs. HMRC said most cases are resolved early and that efforts are under way to improve processing times.
The Times

Small businesses welcome late payment crackdown

Small businesses have welcomed new legislation aimed at curbing late payments, calling it a "historic moment." The King's Speech introduced measures that empower the Small Business Commissioner to investigate and fine firms that consistently delay payments. The Late Payments Bill enforces a maximum payment term of 60 days and mandates interest for late payments at 8% above the Bank of England's base rate. Tina McKenzie, policy chair of the Federation of Small Businesses, said: "The formal commitment to legislation to stamp out late payments is an historic moment for small firms." Data shows that payments cost the UK economy £11bn annually.
The Independent Daily Mail

ECONOMY

UK unemployment rises as job market weakens

The UK unemployment rate increased to 5% in the three months to March 2026, up from 4.9%, according to the Office for National Statistics. Vacancies fell to a five-year low, indicating challenges for job seekers. Payrolled employees decreased by 20,000, with an estimated drop of 100,000 expected in the following quarter, while youth unemployment reached 16.2%, the highest level since January 2015. Bosses blamed Labour's decisions to put up the minimum wage and National Insurance contributions for forcing them to turn away from hiring young people. Liz McKeown, director of economic statistics, commented: "Latest figures suggest the labour market remains soft." Despite wage growth exceeding expectations at 4.1%, concerns about inflation and joblessness persist, with forecasts predicting a peak unemployment rate of around 5.3%.
The Daily Telegraph City AM The Guardian

Economy defies expectations with 0.3% growth

The UK economy grew by 0.3% in March, surpassing analysts' expectations of a contraction. The Office for National Statistics (ONS) data also shows growth of 0.6% for the first quarter, with ONS director of economic statistics Liz McKeown noting that this was "led by broad-based increases across the services sector." However, economists have warned that the economy may soon take a greater hit from rising fuel prices driven by the conflict in the Middle East, with Ruth Gregory at Capital Economics saying: "We would be very surprised if growth doesn't weaken from May," pointing to an "adverse scenario" where the economy suffers a mild recession. Suren Thiru, chief economist for the ICAEW, said the strong first quarter "is probably the high point for the economy this year with output likely to halve in the second quarter."
BBC News City AM Daily Mail The Guardian The Independent

OTHER

HMRC to use AI to spot fraud and errors

HMRC has secured a 10-year, £175m contract with Quantexa that will see the tax office implement AI technology aimed at enhancing its operations. Quantexa's systems will integrate HMRC data with external sources to identify fraud and rectify errors. The technology will assist customer service staff and uncover hidden networks involved in fraudulent activities. Vishal Marria, Quantexa's CEO, said the new technology was designed to "support human decision-making, not replace it." He told the BBC: "In government environments, AI cannot operate as a black box. Decisions need to be transparent, auditable, and explainable, particularly in areas affecting citizens directly."
BBC News City AM

Address

Mansfield Park, 211 Dumbarton Road
Glasgow
G116AA

Opening Hours

Monday	9am - 5pm
Tuesday	9am - 5pm
Wednesday	9am - 5pm
Thursday	9am - 5pm
Friday	9am - 5pm

Website

http://www.iais.co.uk/

Alerts

Be the first to know and let us send you an email when IAIS posts news and promotions. Your email address will not be used for any other purpose, and you can unsubscribe at any time.

Contact The Business

Send a message to IAIS:

IAIS