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Recent government guidance has highlighted a growing risk of fraud linked to Winter Fuel Payments, with criminals attempting to exploit uncertainty around changes to eligibility and repayment arrangements. Pensioners are being encouraged to remain cautious if they receive unexpected communications claiming to be connected with the payment, particularly where personal or financial information is requested.

Winter Fuel Payments are designed to help eligible pensioners meet the additional costs of heating during the colder months. However, recent changes mean that some individuals with annual income above £35,000 may see the payment recovered through the tax system. In most cases this recovery will happen automatically through PAYE coding adjustments or through the Self-Assessment process, meaning that there is normally no need for individuals to take action or contact HMRC directly.

Unfortunately, fraudsters often take advantage of policy changes and public uncertainty. HMRC has reported thousands of scam referrals relating to Winter Fuel Payments over the past year, with criminals using letters, emails, phone calls and text messages that appear to come from official sources. These messages may suggest that the recipient must provide bank details, make a payment, or confirm personal information in order to receive or retain their entitlement.

A key point for pensioners and their families is that government departments will not normally request sensitive information by email or text message in relation to Winter Fuel Payments. Payments are usually made automatically, and any recovery of overpayments is generally handled through the tax system without the need for direct contact. Messages suggesting urgent action is required should therefore be treated with caution.

Typical warning signs of a scam include requests for immediate payment, links to unfamiliar websites, or communications that create a sense of urgency. Fraudsters may attempt to imitate official branding or use convincing language, making the messages appear genuine. Taking a moment to verify the authenticity of any communication can help prevent unnecessary financial loss.

Families and advisers may wish to remind older relatives or clients to be wary of unexpected messages and to avoid sharing personal details unless they are certain of the recipient’s identity. Suspicious emails or texts can often be reported to the appropriate authorities, helping to reduce the impact of fraudulent activity.

As policy changes continue to attract attention, it is likely that scammers will continue attempting to exploit confusion. Remaining aware of the risks and understanding how legitimate payments are administered can significantly reduce the likelihood of falling victim to fraud. Taking a cautious and informed approach can help ensure that support payments achieve their intended purpose without exposing vulnerable individuals to unnecessary risk.

Raising prices is rarely comfortable for business owners, yet it is often necessary to maintain margins as wages, materials, finance costs and energy bills rise. The difficulty is rarely the price itself. It is the customer’s perception of whether the product or service is still worth the cost. A more effective approach than simply announcing higher fees is to increase the deemed value of what is being offered, so that the revised price feels justified and reasonable.

Customers rarely assess value purely on cost. Instead, they consider usefulness, convenience, reliability, status and peace of mind. A modest price increase can often be accepted if customers clearly understand what additional benefit they are receiving. The key is to communicate improvements in a way that highlights relevance to the customer’s needs rather than simply listing features.

One of the most effective methods is to reframe the offering in terms of outcomes rather than inputs. For example, a professional adviser does not simply sell time. They sell confidence, reduced risk and better decision making. A supplier of components does not only deliver materials. They provide consistency, quality assurance and fewer operational disruptions. When communicating a price increase, explain how the service helps clients save time, avoid errors or achieve stronger results.

Bundling additional elements into an existing service can also enhance perceived value. This does not necessarily require significant extra cost. Examples might include providing short summary reports, improved response times, online access to information or periodic review meetings. These additions signal commitment and professionalism, helping customers recognise that the service is evolving rather than simply becoming more expensive.

Clarity and transparency are also important. Customers are more receptive to price adjustments when they understand the context. A brief explanation that costs have risen, combined with a clear description of improvements made, positions the increase as part of responsible business management rather than opportunistic pricing. Avoid defensive language. Instead, emphasise continuity, quality and ongoing investment in the service offering.

Another useful technique is to segment customers according to the level of service they require. Introducing tiered packages allows customers to select the level of value that best matches their budget and expectations. Some may prefer a basic service at a lower cost, while others may welcome a more comprehensive option that provides additional reassurance or support.

Consistency of messaging matters. Staff should understand how to explain the enhanced value proposition clearly and confidently. Written communications should reinforce the same themes, highlighting benefits such as reliability, improved service delivery and better outcomes. Customers often accept price changes when they feel respected and well informed.

Ultimately, price increases are easier to accept when customers believe the relationship continues to deliver strong value. By focusing on outcomes, service improvements and

clarity of communication, business owners can strengthen trust while protecting profitability.

For the 2026-27 tax year, individuals with income between £100,000 and £125,140 face an effective marginal income tax rate of 60%. This unusually high rate is not a separate tax band but arises because the personal allowance is gradually withdrawn once income exceeds £100,000.

The personal allowance remains £12,570 for 2026-27 and continues to be withdrawn at the rate of £1 for every £2 of adjusted net income above £100,000. Once income reaches £125,140, the personal allowance is completely lost.

This tapering creates an effective marginal tax rate of 60% on income within this band. Normally, income in the higher rate band is taxed at 40%. However, when the personal allowance is reduced, part of the income that would otherwise have been tax free becomes taxable. In practical terms, every additional £1 of income above £100,000 results in 40% higher rate tax plus a further 20% effective charge caused by the loss of personal allowance.

For example, an additional £1,000 of income above £100,000 may lead to £400 higher rate tax plus tax on £500 of lost personal allowance, creating a further £200 tax liability. The combined effect produces an effective marginal rate of 60% within this band.

The issue has become more significant because income tax thresholds are currently frozen until at least April 2031, meaning more individuals are gradually being drawn into this band as earnings increase.

The High Income Child Benefit Charge should also be considered when reviewing income levels. For 2026-27, the charge applies where adjusted net income exceeds £60,000, and Child Benefit is fully withdrawn once income reaches £80,000. This change increased the upper limit from the previous £60,000 cap, reducing the marginal impact on families compared with earlier years. (GOV.UK)

Planning ideas to consider

There are several legitimate planning steps that may help individuals reduce adjusted net income below £100,000 or limit the impact of the personal allowance taper.

Pension contributions are often the most effective strategy. Personal pension contributions attract tax relief and reduce adjusted net income for the purposes of calculating the personal allowance. A carefully timed pension contribution may restore some or all of the personal allowance and significantly reduce the effective marginal tax rate.

The 60% marginal band is often described as a hidden tax trap because it does not appear in standard tax tables. Individuals approaching this income level may benefit from reviewing their position before the end of the tax year to ensure that planning opportunities are not overlooked.

The UK government has introduced significant employment law reforms that expand access to Statutory Sick Pay (SSP) and parental leave rights. These measures represent one of the most substantial updates to workplace protections in recent years and are intended to support employees facing illness or family responsibilities, while helping to create a more flexible and resilient workforce.

A key reform is the removal of the traditional three day waiting period for Statutory Sick Pay. Employees are now entitled to SSP from the first day of sickness absence, rather than from the fourth day as previously required. This change is expected to benefit millions of workers, particularly those on lower incomes who may previously have felt pressure to continue working while unwell in order to avoid losing pay. Earlier access to sick pay should help reduce financial stress and allow employees adequate time to recover before returning to work.

The reforms also expand eligibility for SSP by removing the previous earnings threshold, allowing lower paid and part time employees to qualify. Statutory Sick Pay is now calculated as the lower of £123.25 per week or 80 percent of average weekly earnings. These adjustments aim to provide greater financial security during periods of illness and to reduce the risk of employees returning to work too soon, which can prolong illness and affect productivity.

Alongside changes to sick pay, the government has introduced day one rights to Statutory Paternity Leave and unpaid parental leave. Previously, employees normally needed a qualifying period of employment before becoming eligible for these entitlements. The new rules allow eligible parents to take time off from the start of their employment, helping families better balance work and childcare responsibilities. It is estimated that tens of thousands of fathers and partners each year will benefit from immediate access to paternity leave, while many more parents will gain earlier access to unpaid parental leave.

Additional provisions include Bereaved Partner’s Paternity Leave, giving partners the right to take time off following the death of a child’s mother or primary adopter. The reforms form part of a broader programme of employment rights improvements designed to modernise workplace protections and improve enforcement through the creation of a new Fair Work Agency.

From an employer perspective, these changes highlight the importance of reviewing employment contracts, payroll systems and internal policies to ensure compliance with the updated rules. Businesses may need to amend sickness absence procedures, staff handbooks and HR policies to reflect the removal of waiting days and the introduction of new parental rights. Employers should also consider communicating these changes clearly to staff, ensuring that employees understand their rights and responsibilities.

Overall, the reforms are intended to strengthen job security and financial stability for workers, while encouraging a healthier and more supportive workplace culture. For many employers, the changes also provide an opportunity to review broader workforce wellbeing strategies and demonstrate commitment to fair employment practices.

Many people start an activity as a hobby, perhaps selling handmade goods online, offering occasional services, or generating small amounts of additional income from spare capacity. Over time, what begins as a leisure pursuit can evolve into something that looks increasingly commercial. This raises an important question, when does a hobby become a business for tax purposes?

HMRC does not rely on a single test. Instead, it considers a number of indicators commonly referred to as the badges of trade. These are established principles derived from case law and used to assess whether an activity amounts to trading rather than a private pastime.

One important factor is profit motive. A genuine intention to make a profit suggests the activity is more likely to be treated as a business. Occasional sales at a loss may not prevent trading status, but consistent attempts to generate surplus income may indicate commercial intent.

Frequency and repetition are also relevant. Selling items regularly, particularly where the activity is organised and ongoing, suggests a trading activity rather than the disposal of personal possessions. A one off sale is unlikely to be regarded as trading, but repeated transactions may indicate business behaviour.

The nature of the asset can also provide insight. Items acquired specifically for resale, or goods that are produced with the intention of selling at a profit, are more likely to fall within the definition of trading. By contrast, selling unwanted personal items is less likely to attract tax consequences.

The way the activity is organised can also be important. Keeping records, maintaining a website, marketing products or services, or investing in equipment may indicate a structured commercial approach. These factors often demonstrate that the activity is being conducted in a business-like manner.

Another consideration is the length of ownership. Assets held for a short period before resale may indicate trading, whereas items owned for personal enjoyment over a longer period may not.

Where activities begin to generate regular income, it is sensible to review whether registration for Self-Assessment may be required. Expenses incurred wholly and exclusively for business purposes may become deductible, but income will also become taxable.

For many individuals, the transition from hobby to business happens gradually. Early awareness of the badges of trade can help avoid unexpected tax liabilities and ensure that appropriate records are maintained from the outset.

If you are unsure whether your activity may be regarded as trading, a review can help clarify your position and identify any planning opportunities.

Recent global instability, particularly tensions affecting oil and energy supply chains, has increased concerns about price gouging, where businesses take advantage of shortages or uncertainty to impose unjustified price increases. In response, the UK government has announced new measures intended to protect consumers and ensure markets continue to operate fairly.

Price gouging generally occurs when businesses increase prices significantly beyond what can reasonably be justified by increases in underlying costs. This behaviour often becomes more visible during periods of crisis, when supply chains are disrupted, demand becomes volatile, and consumers have limited alternatives. Energy markets are particularly sensitive to global events, as oil and gas prices can react rapidly to geopolitical developments.

In March 2026, the Chancellor set out plans to introduce an anti-profiteering framework aimed at ensuring regulators can act more quickly where unfair pricing practices are suspected. The government has indicated that the Competition and Markets Authority may receive targeted, time limited powers to investigate and address excessive price increases if evidence of price manipulation emerges.

The measures are designed to address concerns that businesses may attempt to exploit uncertainty linked to conflict in the Middle East and resulting pressures on energy and fuel prices. The government has emphasised that it will not hesitate to intervene where pricing behaviour appears inconsistent with normal competitive market conditions.

Alongside regulatory action, the government is also considering structural measures to improve long term price stability. These include accelerating investment in domestic energy generation, particularly nuclear power, and reviewing import tariffs on selected goods to reduce pressure on household budgets. Improving energy security is intended to reduce reliance on volatile global markets and limit the risk of sudden price spikes in future years.

Regulators are already increasing monitoring of fuel and heating oil markets, with enforcement action expected where breaches of consumer protection law are identified. Increased transparency in pricing is expected to play an important role in discouraging opportunistic behaviour by suppliers.

For businesses, the key message is that pricing strategies should remain commercially justifiable and capable of explanation if challenged. Sudden increases in margin during periods of market stress may attract regulatory scrutiny, particularly where customers appear to have limited alternatives.

For consumers, the proposed framework provides reassurance that the government intends to take action where markets fail to operate competitively. Over time, improved energy security and more active regulatory oversight may help reduce the frequency and severity of price shocks affecting households and businesses.

1 April 2026 – Due date for corporation tax due for the year ended 30 June 2025.

19 April 2026 – PAYE and NIC deductions due for month ended 5 April 2026 (If you pay your tax electronically the due date is 22 April 2026).

19 April 2026 – Filing deadline for the CIS300 monthly return for the month ended 5 April 2026.

19 April 2026 – CIS tax deducted for the month ended 5 April 2026 is payable by today.

30 April 2026 – 2024-25 tax returns filed after this date will be subject to an additional £10 per day late filing penalty for a maximum of 90 days.

1 May 2026 – Due date for corporation tax due for the year ended 30 July 2025.

19 May 2026 – PAYE and NIC deductions due for month ended 5 May 2026. (If you pay your tax electronically the due date is 22 May 2026).

19 May 2026 – Filing deadline for the CIS300 monthly return for the month ended 5 May 2026.

19 May 2026 – CIS tax deducted for the month ended 5 May 2026 is payable by today.

31 May 2026 – Ensure all employees have been given their P60s for the 2025/26 tax year.

If you have not yet checked whether you need to use Making Tax Digital (MTD) for Income Tax, now is the time to urgently see if you are affected. The Income Tax reporting requirements for some self-employed individuals and landlords will change significantly from 6 April 2026. MTD for Income Tax changes the traditional annual self-assessment process to a new digital record-keeping and quarterly updates process submitted through recognised software.

From April 2026, those with qualifying income over £50,000 will be required to maintain digital records and submit quarterly updates of trading or property income and expenses. From April 2027, the threshold will reduce to £30,000, and in April 2028 it will further reduce to £20,000. 

A full tax return will still be required by the following 31 January after the tax year i.e. the first MTD for Income Tax return, covering the 2026-27 tax year, will be due by 31 January 2028.

MTD aims to reduce errors, improve efficiency, and support business productivity. HMRC estimates that around 860,000 taxpayers will join in 2026, with more joining in 2027. 

The system also provides exemptions for those unable to go digital and offers accessible software solutions. Taxpayers joining MTD for Income Tax in April 2026 will not receive penalty points for late quarterly updates for the first 12 months. This will allow them time to adapt to the new system.

A Companies House blunder has raised concerns after a flaw in the WebFiling service briefly exposed sensitive company data. The issue, identified on 13 March 2026, meant that a logged-in user could potentially access and amend limited details of another company by carrying out a specific sequence of actions.

Companies House has stated that this system vulnerability was not available to the general public. Only users with authorised access codes who were already logged into the system could have exploited it. Nevertheless, the nature of the flaw meant that certain private information, such as dates of birth, residential addresses and company email addresses may have been visible. There was also a risk that unauthorised filings, including accounts and changes to director details, could have been submitted on another company’s record.

After identifying this issue, Companies House shut down the WebFiling service at 13:30 on 13 March to investigate. Following independent testing, the system was restored at 09:00 on 16 March. Companies House has said that passwords and identity verification data were not compromised, and that existing filed documents, such as accounts or confirmation statements, could not be altered.

The issue is believed to have arisen from a WebFiling systems update in October 2025. It has been reported to both the Information Commissioner’s Office and the National Cyber Security Centre.

Companies are now being urged to review their registered details and filing history carefully. While no confirmed misuse has been reported so far, Companies House is continuing to investigate. If a company has a concern, it should raise a complaint via the Companies House complaints page at www.gov.uk/government/organisations/companies-house/about/complaints-procedure and include evidence to describe the issue.

It was confirmed as part of the Autumn Budget that the Income Tax thresholds will continue at their current levels for a further three years, extending the freeze until April 2031. This means that most tax allowances are to remain frozen for 2026-27 and beyond.

As a result, the personal allowance will stay at £12,570, while the higher rate threshold will remain at £50,270 for taxpayers across most of the UK (with different thresholds applying in Scotland). National Insurance thresholds will also remain fixed over the same period.

Keeping these thresholds unchanged means that many taxpayers will gradually pay more tax as their earnings increase over time. This effect, commonly known as fiscal drag, occurs when wages rise but tax bands do not. As incomes grow due to inflation or pay increases, a larger portion of earnings becomes taxable, and more people move into higher tax brackets.

In practical terms, the continued freeze is likely to push increasing numbers of taxpayers into the 40% higher rate band and, for some, the 45% additional rate band. Others who previously earned below the personal allowance may also begin paying Income Tax for the first time. Although tax rates themselves remain unchanged, the overall tax burden rises as more income becomes subject to tax.

Fiscal drag is influenced by several factors, including government policy on tax thresholds, inflation levels and wage growth. In periods of rising wages or high inflation, the impact of frozen thresholds becomes more pronounced. For taxpayers the impact of fiscal drag effectively operates as a stealth tax over time.