The recent disclosure of a software glitch at Companies House has raised important questions about the reliability and security of the UK’s corporate register. For many business owners and advisers, this incident is a timely reminder that even core government systems are not immune from failure.

The issue centred on a flaw within the WebFiling system, which is widely used by companies and their agents to submit accounts and update statutory records. It emerged that, under certain conditions, a logged-in user could potentially access and amend elements of another company’s record without authorisation.

More concerning was the type of information that may have been exposed. This included non-public data such as directors’ dates of birth, residential addresses and company email details. In addition, there was a possibility that unauthorised filings, including changes to director information or the submission of accounts, could have been made.

Although access to the flaw required a valid login and authentication code, and was therefore not available to the general public, the simplicity of the vulnerability has been widely noted. In some reported cases, it could be triggered through basic navigation actions within a web browser, rather than any sophisticated cyber attack.

The problem appears to have originated from a system update introduced in October 2025, meaning the vulnerability may have existed for several months before being identified. Once discovered, Companies House acted quickly, taking the WebFiling service offline to investigate and implement a fix, before restoring access after independent testing.

From a practical perspective, Companies House has advised businesses to review their company records and filing history to ensure that no unauthorised changes have been made. This is sensible advice, particularly for smaller companies where internal controls may be more limited.

For accountants, the wider implications are worth reflecting on. The integrity of Companies House data underpins many areas of business life, from credit checks to due diligence and anti-money laundering processes. Any perceived weakness in that system risks undermining confidence, not just in the register itself, but in the broader regulatory framework.

At the same time, it is important to keep the issue in proportion. There is currently no confirmed evidence of widespread misuse, and key identity verification data such as passwords and passport details were not compromised.

Nevertheless, this incident highlights the importance of ongoing vigilance. Regular monitoring of company records, strong internal controls, and prompt response to anomalies remain essential. As Companies House continues its modernisation programme, maintaining trust in the accuracy and security of its systems will be critical for businesses and advisers alike.

Starting a business involves many decisions, but one of the most important is selecting the right sector. The most successful start-ups tend to occur where three factors align: the skills of the business owner, the amount of funding available, and the level of demand for the service or product being offered. When these elements are considered together, the likelihood of building a sustainable business improves significantly.

Professional And Advisory Services

Professional and advisory services are among the most common sectors for new businesses. These include bookkeeping, consulting, marketing services, IT support, training and business advisory work. The main advantage of these activities is that they rely largely on the founder’s knowledge and experience rather than expensive equipment or premises.

In many cases the business can be launched with relatively modest funding, often little more than a computer, appropriate software and a basic marketing plan. This makes professional services particularly attractive for individuals leaving employment who already have specialist expertise in a particular field.

Skilled Trades And Technical Services

Skilled trades also remain a popular route into self-employment. Trades such as plumbing, electrical services, carpentry, decorating and property maintenance continue to experience strong demand across the UK.

Many tradespeople develop their skills through apprenticeships or employment before deciding to establish their own business. Although the initial funding requirement may be higher due to the need for tools, equipment and possibly a vehicle, these businesses can often grow steadily through local reputation and word of mouth recommendations.

Digital And Online Businesses

Digital and online businesses have become an increasingly common choice for new entrepreneurs. E commerce stores, digital marketing agencies, website development services and online training platforms can often be launched with relatively modest capital.

The key requirement in this sector is technical or digital capability. Where the founder has the necessary skills, the financial barriers to entry are often lower than in many traditional industries, and the potential to reach a wider customer base can be significant.

Personal And Lifestyle Services

Personal service businesses are another area where many people start their first venture. Activities such as fitness coaching, childcare services, beauty therapy, tutoring and home based services can often be developed with limited investment.

In many cases success depends heavily on personal reputation, client relationships and local demand. Building trust and providing consistent service quality can therefore play a major role in long term growth.

Choosing A Sector That Matches Your Skills

In practice, the most sustainable business ideas tend to arise where the founder already has relevant knowledge or experience. While access to funding is important, starting a business in an unfamiliar sector simply because finance is available can increase risk considerably.

Careful planning and realistic assessment of skills and resources can make a substantial difference to long term success. Accountants and advisers are often well placed to help new business owners assess the financial requirements, risks and opportunities associated with different sectors before the business is launched.

And so, if you are a budding entrepreneur, please call so we can help you consider your options.

Income tax is often viewed as a permanent feature of the UK tax system, but historically it began as a temporary wartime measure. Its origins lie at the end of the eighteenth century, when the British government faced the enormous cost of financing the war against Napoleonic France.

The first modern income tax was introduced in 1799 by Prime Minister William Pitt the Younger. Britain was engaged in the Napoleonic wars and government borrowing alone was not sufficient to fund the military effort. Pitt therefore introduced a tax on income to raise additional revenue.

Under the original legislation, individuals with annual incomes of £60 or more became liable to tax. The rate of tax was two shillings in the pound on the highest band of income. As there were twenty shillings in a pound, two shillings represented 10 per cent of taxable income. In effect, therefore, the earliest version of UK income tax imposed a top rate of around 10 per cent.

The threshold of £60 per year was significant at the time. In the late eighteenth century this level of income placed a person comfortably above the earnings of most labourers and agricultural workers. Converting historic values into modern terms is always approximate, but using general inflation measures, £60 in 1799 is broadly equivalent to between £6,000 and £8,000 today. If the comparison is made using relative earnings or economic share of national income, the modern equivalent could be considerably higher, potentially in the region of £15,000 to £20,000 or more. Either way, the tax was clearly aimed at individuals who were relatively well off by the standards of the period.

The original income tax did not remain in place continuously. It was abolished in 1816 following the defeat of Napoleon, partly because it had been introduced as a temporary wartime measure and had never been particularly popular. However, the concept had been established, and income tax returned in 1842 when Sir Robert Peel reintroduced it to deal with government budget deficits.

Today, income tax has become one of the largest sources of government revenue in the United Kingdom. For the 2025-26 tax year, individuals generally pay no income tax on the first £12,570 of taxable income due to the personal allowance. Income above that level is taxed at 20 per cent for basic rate taxpayers up to £50,270. Higher rate taxpayers pay 40 per cent on income between £50,270 and £125,140, and the additional rate of 45 per cent applies to income above £125,140.

Compared with the original 10 per cent rate introduced in 1799, modern income tax rates are substantially higher. However, the structure of the system is also far more complex, with multiple bands, reliefs and allowances.

What began as a temporary wartime measure to fund the fight against Napoleon has therefore evolved into a central pillar of the UK fiscal system, shaping government finances and personal tax planning for more than two centuries.

The continuing conflict involving Iran has raised concerns about its potential impact on the global economy. While the fighting is taking place thousands of miles from the UK, events in the Middle East often have significant economic consequences around the world. If the conflict continues for an extended period, it could place renewed pressure on the cost of living for households across the UK.

One of the main reasons is the region’s importance to global energy markets. The Middle East produces a substantial share of the world’s oil and gas, and the Strait of Hormuz, which lies close to Iran, is one of the most important shipping routes for energy supplies. A large proportion of the world’s oil shipments pass through this narrow waterway. If conflict threatens shipping in this area, energy prices can rise quickly as markets react to possible supply disruption.

Oil prices are often the first indicator of geopolitical tension. If hostilities continue or escalate, oil prices could rise further. When oil becomes more expensive, the effects ripple throughout the economy. Petrol and diesel prices tend to rise quickly, increasing the cost of transport for both households and businesses. Higher transport costs then feed into the price of goods delivered across the country.

Energy bills are also influenced by global gas markets. Although the UK now produces some of its own energy, it remains connected to international energy prices. If global gas supplies tighten due to conflict or shipping disruption, the cost of electricity and household heating could increase again.

Higher energy costs are often a key driver of inflation. When electricity, gas and fuel prices rise, businesses across many sectors face higher operating costs. Manufacturers, farmers, retailers and service providers all rely on energy and transport to operate their businesses. In many cases these additional costs are eventually passed on to consumers through higher prices.

Supply chains could also be affected. The Middle East is an important transit region for international shipping and air freight. If insurance costs for shipping rise, or vessels are forced to take longer routes to avoid conflict zones, freight costs may increase and delivery times could lengthen. This can influence the price and availability of many everyday goods, including food, consumer products and industrial materials.

There could also be wider economic effects. A prolonged conflict in such a strategically important region may reduce global economic confidence and place pressure on growth forecasts. Slower economic growth combined with higher prices can create a difficult environment for both households and businesses.

For UK households, the risks are therefore relatively clear. Fuel prices could rise, energy bills may increase again and everyday goods may become more expensive. For businesses, higher operating costs combined with cautious consumer spending could put additional pressure on margins.

While the future course of the conflict remains uncertain, it serves as a reminder that global events can quickly influence the economic environment in the UK. For both businesses and households, this underlines the importance of forward planning, careful

financial management and building resilience to cope with the economic disruption that may lie ahead.

Artificial intelligence has moved from a future concept to a present day business issue, and over the past week it has been one of the most talked about topics among UK companies. What is driving this surge of interest is not just innovation, but a growing fear of being left behind.

Many businesses now see AI as a practical tool rather than an experimental technology. It is being used to automate routine tasks, analyse large volumes of data, improve customer service, and support decision making. For some firms, particularly smaller ones, AI offers access to capabilities that were previously only affordable for much larger organisations.

A key driver behind recent adoption is competitive pressure. Business leaders are increasingly aware that competitors are using AI to work faster, reduce costs, and respond more quickly to customers. Even where the benefits are not fully understood, the perception that others are moving ahead is prompting action.

That said, enthusiasm is often mixed with uncertainty. Many firms struggle to define what success looks like when investing in AI. Measuring return on investment can be difficult, particularly when benefits are indirect, such as time saved or improved quality of information. There are also concerns about data security, staff skills, and over reliance on automated outputs.

Another common issue is that AI is sometimes adopted in isolation, rather than as part of a wider strategy. Tools are introduced without clear objectives, proper training, or integration with existing systems. This can lead to disappointment and wasted effort.

For advisers, this presents both a challenge and an opportunity. Businesses need help cutting through the noise, understanding where AI genuinely adds value, and avoiding unnecessary complexity. In many cases, simple applications such as improved reporting, forecasting, or client communication deliver more benefit than advanced or expensive solutions.

AI is unlikely to be a passing trend. As tools continue to improve and costs fall, adoption will only increase. The key for UK businesses is to approach AI thoughtfully, aligning it with real business needs rather than fear driven decision making. Used well, it can support growth and resilience. Used poorly, it risks becoming just another distraction.

The Chancellor’s Spring Statement, presented to Parliament 3 March 2026, was packed with political content that has no real impact for UK taxpayers, business owners or employees. The substance of her presentation was a summary of the Office for Budget Responsibility (OBR) Economic and fiscal outlook released on the same date.

Our summary that follows highlights the main points of the OBR statement and adds our reflections on the possible effects these plans will have on future UK taxation policy.

It is also worth mentioning that if the present unrest in the Middle East continues, these forecasts may become untenable. 

What the OBR outlook means for you and future taxation

Following the Chancellor’s Spring Statement, the OBR has published its Economic and fiscal outlook: March 2026. While the document is technical, it provides an important signal about the direction of the UK economy and, crucially, the future shape of the tax system.

This briefing summarises the key items and explains what they may mean for individuals, business owners and investors over the next few years.

The wider economic picture

The OBR expects the UK economy to grow slowly in the near term, before improving modestly later in the decade. Economic growth is forecast to be around 1.1 per cent in 2026, rising to an average of around 1.6 per cent a year thereafter. This is weaker than historic norms and reflects long-standing issues such as low productivity, growth and an ageing workforce.

Inflation is expected to continue falling and move closer to the Bank of England’s 2 per cent target by late 2026. This should help ease pressure on household finances, but it also reduces the pace at which tax revenues naturally increase through wage and price growth.

The overall message is that the economy is stable, but not strong. That matters because government tax receipts depend heavily on economic growth.

The state of the public finances

Government borrowing is forecast to fall gradually over the coming years. Public sector borrowing is expected to decline from just over 5 per cent of GDP in 2024-25 to around 1.6 per cent of GDP by 2030-31. This improvement is largely driven by a high tax take and steady economic growth, rather than major reductions in public spending.

Public sector net debt remains high, stabilising at around 95 per cent of GDP. This is historically elevated and leaves the public finances sensitive to shocks such as higher interest rates or weaker growth.

For taxpayers, this matters because high debt limits the government’s room to cut taxes. Even modest economic setbacks could quickly put pressure back on borrowing.

What this means for future taxation

The OBR does not set tax policy, but its forecasts strongly influence government decisions. The outlook points to several important themes for future taxation.

First, the overall tax burden is expected to remain high. Tax receipts as a share of the economy are close to post-war highs and are forecast to stay there. This suggests that meaningful, broad-based tax cuts are unlikely in the near term.

Secondly, much of the recent increase in tax revenue has come from so-called fiscal drag. Income Tax thresholds have been frozen, meaning that as wages rise, more income is taxed at higher rates. Although inflation is easing, this effect will continue as long as thresholds remain unchanged.

For individuals, this means that effective tax rates may continue to rise even if headline rates do not change. More people are likely to be drawn into higher and additional rate bands over time.

Income Tax and National Insurance

The outlook reinforces the likelihood that Income Tax and National Insurance will remain the government’s most reliable sources of revenue. These taxes are broad-based, predictable and relatively difficult to avoid.

While large increases in headline rates appear unlikely, continued freezes to allowances and thresholds remain a realistic option. Over time, this increases the tax burden on earned income without the need for explicit tax rises.

For employees and directors, this underlines the importance of reviewing remuneration structures, including the balance between salary, dividends and pension contributions, to ensure tax efficiency within the rules.

Business taxation

Corporation Tax receipts remain strong following the increase in the main rate in recent years. The OBR forecasts suggest that business taxes will continue to play a significant role in supporting the public finances.

Given the constraints on public spending and the need for stable revenues, there may be limited appetite for significant reductions in business taxes. Instead, future changes are more likely to focus on reliefs, allowances and compliance measures.

Businesses should expect continued scrutiny of reliefs and incentives, alongside a focus on timely reporting and accurate tax compliance.

Capital taxes and wealth

Although the OBR does not focus heavily on capital taxes in this outlook, the broader fiscal context is important. High public debt and long-term spending pressures increase the likelihood of further reform to taxes on capital and wealth.

Capital Gains Tax, Inheritance Tax and property-related taxes are all areas where governments may seek additional revenue without raising Income Tax rates. This may take the form of rate changes, allowance reductions, or restrictions on reliefs rather than entirely new taxes.

For individuals with significant assets, this reinforces the importance of forward planning, particularly around asset disposals, succession and estate planning.

Long-term pressures and ageing

The OBR highlights the growing cost of an ageing population, particularly in relation to health, social care and pensions. These pressures increase over time and extend beyond the current forecast period.

Unless public spending is reduced or restructured, higher revenues will be required in the long term. This suggests that future tax policy will increasingly focus on sustainability rather than short-term incentives.

From a planning perspective, this points towards a tax environment where reliefs and allowances may become more restricted, and where long-term strategies are preferable to reactive decisions.

Uncertainty and risk

The OBR places significant emphasis on uncertainty. Geopolitical risks, energy prices, productivity trends and labour market changes could all materially affect the outlook.

If the economy underperforms, the government may need to respond quickly. Historically, this has often involved tax measures introduced at relatively short notice. This reinforces the value of regular reviews and keeping tax planning flexible.

What clients should take away

The key message from the OBR outlook is not that major tax rises are imminent, but that the scope for tax cuts is limited. The UK is likely to remain a relatively high-tax economy for the foreseeable future.

Incremental changes, rather than dramatic reforms, are the most likely path. Threshold freezes, relief adjustments and targeted measures are expected to remain central tools of tax policy.

For individuals and businesses, this makes proactive planning essential. Understanding how existing rules apply, making use of available reliefs, and reviewing structures regularly can make a meaningful difference over time.

If you would like to discuss how these trends may affect your personal or business circumstances, we would be happy to help you review your position and plan ahead.

1 March 2026 – Due date for Corporation Tax due for the year ended 31 May 2025.

2 March 2026 – Self-Assessment tax for 2024-25 paid after this date will incur a 5% surcharge unless liabilities are cleared by 1 April 2026, or an agreement has been reached with HMRC under their time to pay facility by the same date.

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

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

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

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.

If you are self-employed, it is important to understand which car and travel costs can be claimed.

You can claim allowable business expenses for car, van, or travel costs, which reduce your taxable profit. Typical allowable costs include:

• Vehicle insurance
• Repairs and servicing
• Fuel
• Parking
• Hire charges
• Vehicle tax and licence fees
• Breakdown cover
• Train, bus, tram, air, and taxi fares
• Hotel rooms
• Meals on overnight business trips

You cannot claim for:

• Non-business driving or travel costs
• Fines or penalty charges
• Personal travel, including commuting between home and a regular workplace, is generally not allowable.

For vehicle costs, you may choose between claiming actual costs or using HMRC’s simplified expenses which is a flat-rate allowance for mileage.

If you buy a vehicle for your business, how you claim the cost depends on your accounting method. Under traditional accounting, you can claim capital allowances on the purchase cost. If you use cash basis accounting, you can also claim capital allowances as long as you are not using simplified expenses. For all other types of vehicles or associated costs, you can claim them as allowable business expenses.

The Additional State Pension is only available to those who reached the state pension age before 6 April 2016 and are receiving the Old State Pension. The Additional State Pension is an extra amount of money paid on top of the basic Old State Pension.

The Old State Pension is designed to provide individuals of state pension age with a basic regular income and is based on National Insurance Contributions (NICs). To get the full basic State Pension, most people need to have had 35 qualifying years of NICs.

Claimants will automatically have received the Additional State Pension if they were eligible for it. Those who had contracted out were not eligible for the Additional State Pension.

If your spouse or civil partner dies, you may be able to inherit some of their Additional State Pension if you reached State Pension age before 6 April 2016. If you do not receive the full basic State Pension, you may be able to increase it by using your spouse or civil partner’s qualifying National Insurance years.

You may also be able to inherit part of their Additional State Pension or Graduated Retirement Benefit. Different rules apply if you reached State Pension age on or after 6 April 2016. If relevant, you should contact the Pension Service to check what you can claim.

If you have not yet checked whether you need to use Making Tax Digital (MTD) for Income Tax, you should do so urgently. HMRC has issued a timely reminder that for many self-employed and landlords the way to report tax to HMRC will change significantly from 6 April 2026.

MTD for Income Tax is a significant move away from the traditional annual self-assessment process towards a more digital and frequent approach, requiring taxpayers to manage records and submit updates through recognised software. The new system is being gradually rolled out over the coming years.

More than 860,000 sole traders and landlords earning over £50,000 from self-employment or property need to start using digital reporting from April 2026. MTD for Income Tax requires users to keep digital records and send quarterly updates of income and expenses. These updates are not additional tax returns and are created by recognised and approved software providers. A full tax return will still be required by the following 31 January after the tax year, i.e., the first MTD tax return, covering the 2026-27 tax year, will be due by 31 January 2028.

HMRC’s Director of Making Tax Digital, said:

‘With two months to go until MTD for Income Tax launches, now is the time to act. A range of software is available, and the system is straightforward and helps reduce errors. Thousands of volunteers have already used it successfully.

This will make it easier for sole traders and landlords to stay on top of their tax affairs and help ensure everyone pays the right amount of tax.

Spreading your tax admin throughout the year means avoiding that last minute scramble to complete a tax return every January. Go to GOV.UK and start preparing today.’

Taxpayers joining MTD for Income Tax in April 2026 will not receive penalty points for late quarterly updates for the first 12 months, giving time to adjust. There are also exemptions available for those who genuinely cannot use digital tools.

We would be happy to help if you need assistance getting started with MTD for Income Tax.