The 2025–26 tax year brings major updates for employers and payroll teams. Key changes include a higher minimum wage, increased Employment Allowance, and adjustments to National Insurance.

The Trump administration’s imposition of sweeping tariffs in April 2025 has triggered a global trade war, with the UK navigating both direct and indirect economic risks. While the U.S. applied a baseline 10% tariff on £58 billion of UK exports—lower than rates imposed on the EU and China—the ripple effects threaten growth, jobs, and consumer stability.

The UK Spring Statement 2025 introduces major reforms to tax penalty rules, significantly increasing fines for late payments starting April 2026. Key changes include a rise in the initial 30-day penalty from 5% to 7.5%, with further 7.5% charges at 6 and 12 months (up from 5%). A new daily compounded interest rate of 8.5% (previously 6.5%) will apply from the due date, linked to the Bank of England’s base rate plus 2.5%.

As the world becomes increasingly globalized, it’s common for individuals to earn income from overseas assets or investments. If you’re a UK tax resident, you must understand the regulations surrounding overseas income and worldwide disclosure. The UK government, primarily through HM Revenue and Customs (HMRC), requires tax residents to declare their worldwide income and assets accurately.

In a sweeping and ambitious 2024 Autumn Budget, Chancellor Rachel Reeves has set the stage for what she calls a “decade of national renewal.” It’s a vision framed around revitalising public services, bolstering economic stability, and reforming the tax system to align with modern demands. With a massive £40 billion tax initiative and expansive funding for health, education, and green infrastructure, the budget represents Labour’s first opportunity in over a decade to reshape the British economy.