Chancellor Rachel Reeves will look at fixing the cliff edges in business rates that can discourage small business investment and growth, according to a report from HM Treasury.

Currently when a business opens a second property, they will lose access to all Small Business Rates Relief (SBRR) unless they meet specific conditions, holding businesses back from expanding.

That means that a local bakery would have to pay thousands of pounds more for opening a small shop in the next village.

The report confirms that the government will review how SBRR can support business growth, potentially lifting growth and living standards in the future for those who work in these small businesses.

This is one of the options being explored in the Treasury’s business rates interim report.

Chancellor of the Exchequer, Rachel Reeves, said:

‘Our economy isn’t broken, but it does feel stuck. That’s why growth is our number one mission. We want to see thriving high streets and small businesses investing in their future, not held back by outdated rules or strangled by red tape.

‘Tax reforms such as tackling cliff-edges in business rates and making reliefs fairer are vital to driving growth. We want to help small businesses expand to new premises and building an economy that works for, and rewards working people.’

Internet link: HM Treasury

The government has launched a voluntary repayment scheme to allow recipients of financial Covid support to repay outstanding money they were not entitled to or did not need with ‘no questions asked’.

The government says that over £10 billion was lost to pandemic fraud, flawed contracts and waste under the previous government’s pandemic era procurement and schemes. £1.54 billion has already been recovered through existing efforts.

It says it will do everything in its power to recoup money lost to Covid fraud.

All Covid schemes, including loans, grants, social security and tax benefits fall under the voluntary repayment scheme.

The government says that individuals who don’t take the chance to come forward and repay outstanding money could face prosecution when it receives additional investigatory powers next year.

Changes to how director disqualification works could also see more people stopped from being involved in businesses or facing compensation orders.

A Covid fraud reporting website is also being launched to allow members of the public to report suspected fraud.

Covid Counter-Fraud Commissioner Tom Hayhoe said:

‘Our message to those who still owe Covid era money is simple – pay now, clear your conscience, or face the consequences.

‘This money belongs in communities, the NHS, police and armed forces. Those who don’t take up this straightforward offer and have knowingly, wrongly claimed tax-payer-funded help could face prosecution, disqualification, or prison.

‘The digital trail is forever, so the time to settle is now – before new investigatory powers and tougher rules come into force.’

Internet link: GOV.UK

Companies could be prosecuted and face unlimited fines if they fail to prevent fraud that their firm profits from under a new corporate offence.

The offence will hold large organisations to account if they profit from fraud. It forms part of wider measures introduced by the government to tackle fraud and protect the UK economy.

These have been introduced as part of the Economic Crime and Corporate Transparency Act (ECCT) 2023 and came into force on 1 September.

Under the new law, which was passed with cross-Parliament support, large organisations can be held criminally liable where an employee, agent, subsidiary, or other ‘associated person’ commits a fraud intending to benefit the organisation.

In the event of prosecution, an organisation will now have to demonstrate to the court that it had reasonable fraud prevention measures in place at the time the fraud was committed.

Lucy Rigby KC MP, the Solicitor General, said:

‘Fraud undermines our British values of fairness and playing by the rules. It hurts individuals and businesses, and harms business confidence.

‘This new legislation sends a clear message that large organisations must take responsibility for preventing fraud, and those that fail to do so will be prosecuted with the full force of the law.

‘This government is committed to protecting our economy and we’re determined that those who don’t play by the rules will be brought to book.’

Internet link: GOV.UK

The Autumn Budget will be delivered on 26 November by the Chancellor of the Exchequer, HM Treasury has announced.

The Office for Budget Responsibility’s latest outlook for the economy and public finances will be released on the same day.

The Budget outlines the government’s plans for raising or lowering taxes and sets out its spending commitments for health, schools, police and other public services.

Chancellor of the Exchequer, Rachel Reeves said: ‘Britain’s economy isn’t broken. But I know it’s not working well enough for working people. Bills are high. Getting ahead feels tougher. You put more in, get less out. That has to change.

‘We’ve got huge potential – world-leading brands, dynamic industries, brilliant universities, and a skilled workforce. We’re a global hub for trade.

‘Fixing the foundations has been my mission this past year … but I’m not satisfied. There’s more to do. Cost of living pressures are still real.

‘And we must bring inflation and borrowing costs down by keeping a tight grip on day-to-day spending through our non-negotiable fiscal rules. It’s only by doing this can we afford to do the things we want to do.

‘If renewal is our mission and growth are our challenge. Investment and reform are our tools. The tools to building an economy that works for you – and rewards you.’

Internet link: GOV.UK

HMRC has confirmed that 864,000 self-employed workers and landlords will be pulled into the quarterly reporting rules for Making Tax Digital (MTD) for Income Tax when it comes into force.

The first phase of MTD for Income Tax will begin next April at the start of the 2026/27 tax year. It will require individuals with a qualifying income over £50,000 to file quarterly returns using software with a final year end round out.

When businesses need to start using MTD for Income Tax depends on their qualifying income within a tax year. If their qualifying income is over:

• £50,000 for the 2024/25 tax year, they will need to use it from 6 April 2026
• £30,000 for the 2025/26 tax year, they will need to use it from 6 April 2027
• £20,000 for the 2026/27 tax year, they will need to use it from 6 April 2028

According to HMRC, around 2.9 million have a qualifying income above £20,000 and will need to join MTD for Income Tax, based on self assessment figures for 2023/24.
HMRC said:

‘MTD for Income Tax is a new way for sole traders and landlords to report their income and expenses to HMRC. They will need to keep digital records and every quarter, submit simple summaries of their income and expenses to HMRC using compatible software. This is expected to reduce the tax gap by reducing the scope for error and failure to take reasonable care.’

Internet link: GOV.UK