As we approach the end of March 2025, anticipation builds around Chancellor Rachel Reeves's upcoming Spring Statement. Given the current economic landscape, it's insightful to consider the potential measures she might introduce and their implications for businesses and individuals alike.Economic ContextThe UK economy faces several challenges: sluggish growth, elevated borrowing costs, and persistent inflationary pressures.…
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Wish for the Best and Plan for the Worst
As an accountant, we've seen businesses thrive-and seen them struggle. One key difference between those that weather storms and those that flounder is simple: planning.It's great to be optimistic. No one starts a business expecting it to fail. But while optimism fuels ambition, realism ensures survival. That's why the old saying holds true: wish for…
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When is a hobby a business
Not sure if your hobby is actually a taxable trade? HMRC uses 'badges of trade' to assess whether an activity is a business. Factors like profit motive, transaction frequency, and asset changes help determine if tax rules apply to your earnings.The 'badges of trade' tests, although not definitive, serve as important tools for HMRC in…
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Is your extra income taxable?
HMRC has launched a new "Help for Hustlers" campaign to help people who are earning extra income, figure out if they need to pay tax on the additional earnings. The campaign runs until the end of March and focuses on five key areas where tax might apply:I'm buying or making things to sell.I've got a…
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