The Tax Round: Winter Edition 2025

We are pleased to share the Winter edition of the Tax Round, bringing together an overview of the latest tax developments and regulatory updates. These include a range of recent insights that we hope you will find both relevant and informative.

The Winter edition includes:

• Autumn Budget 2025 summary and key changes
• Understanding VAT thresholds: When does your business need to register?
• HMRC consultation: R&D tax relief advance clearance reform
• Company Car Tax in the UK 2025/26: Electric, petrol & hybrid benefits in kind explained
• Winter Fuel Payment opt-out: what higher-income pensioners need to know
• Commonly missed capital allowance opportunities
• Proposed reforms to Agricultural Property Relief, Business Property Relief, and Inheritance Tax changes to pensions
• Companies House Director ID verification: Rayner Essex supporting UK businesses

Should you require any further clarification on the topics discussed in this newsletter, please contact  Mark Moore, Marina Trinchese or James Hadley.  We look forward to hearing from you.

Happy reading!

Autumn Budget 2025 summary and key changes

On 26 November Rachel Reeves, Chancellor of the Exchequer, delivered the Autumn Budget and positioned it as a rebalancing of the tax system designed to restore stability and support households through a period of high living costs. She described the statement as “a balanced Budget: fairness, stability and investment, not reckless borrowing or cuts”, and emphasised that the government intends to “deliver on the priorities of the British people: cutting NHS waiting lists, reducing national debt and easing the cost of living”.

Understanding VAT thresholds: When does your business need to register?

Understanding VAT thresholds allows businesses to avoid costly penalties and missed opportunities to maximise their tax strategy. At Rayner Essex, we specialise in guiding businesses through VAT compliance with expert advice. Read on to find out more about VAT thresholds, registration deadlines, and how our VAT accountancy service can support you to maximise the benefits of VAT.

HMRC consultation: R&D tax relief advance clearance reform

With HMRC’s consultation now underway, businesses must pay close attention to proposed changes around advance clearance for R&D tax relief. These developments are part of the government’s wider initiative to reduce error and fraud, increase certainty for claimants, and improve how companies engage with the Research and Development (R&D) tax relief process.

Company Car Tax in the UK 2025/26: Electric, petrol & hybrid benefits in kind explained 

Historically, company cars have always been considered the gold standard benefit for senior staff. However, in recent years the UK tax consequences of having a company car for both the employees and employer have risen sharply. This has greatly reduced how often company cars are offered, with many companies favouring alternative benefits for senior employees instead.

Winter Fuel Payment opt-out: what higher-income pensioners need to know

From winter 2025/26, the rules for the Winter Fuel Payment (WFP) in England, Wales and Northern Ireland have changed significantly. While eligibility has widened, anyone with taxable income above £35,000 will have their payment reclaimed through the tax system. For higher-income pensioners, the key phrase is Winter Fuel Payment opt-out. Choosing not to receive the payment can save time and avoids administrative burden, preventing repayment later.

Commonly missed capital allowance opportunities

Many businesses continue to overlook valuable tax relief through under-claiming or missed capital allowances. Discover the most commonly missed capital allowance opportunities and how to recover hidden qualifying expenditure.

Following our recent article on capital allowances for office fit outs and commercial renovations, we have received several requests for further guidance on areas that are frequently under-claimed or entirely overlooked. Many organisations miss hidden capital allowance opportunities that could reduce taxable profits and improve cash flow.

Proposed reforms to Agricultural Property Relief, Business Property Relief, and Inheritance Tax changes to pensions

The government has announced significant reforms to Agricultural Property Relief (APR) and Business Property Relief (BPR) from April 2026. It is expected that around 2,000 estates each year will be affected by these proposed changes.

Companies House Director ID verification: Rayner Essex supporting UK businesses

Companies House is introducing a major compliance shift from November 2025. Identity verification will become mandatory for all company directors, members of LLPs, persons with significant control (PSCs), and anyone involved in managing or filing documents on behalf of UK companies, from 18 November 2025.

Key Dates 2025/2026

30 December 2025: Last day to submit your online tax return if you wish to pay your outstanding tax through your PAYE tax code (eligibility criteria applies). 

31st January 2026: Digital self- assessment tax return submission and payment deadline for the tax owed. 

31 January 2026: Deadline for payment and submission of Self-Assessment Tax Returns for tax year ending 5 April 2025 as well as the first payment on account for 2025/26. 

 05 April 2026: End of tax year 2025/26 

 06 April 2026: New tax year 2026/27 begins. 

Guest Authors for our upcoming Spring Tax Round

If any of our associates are interested in writing content for our next Winter edition of the Tax Round, please contact Jenny Tryfonos and we will be happy to discuss your contribution as a guest author.