It’s no secret this year’s Autumn Statement may well contain some sweeping changes to UK tax and legislation. With a new Chancellor of the Exchequer, Rachel Reeves, we’re likely to see a shift in approach – especially given the current £22 billion deficit in the public finances. Reeves has made it clear that ‘difficult decisions’ lie ahead. Savings must be made, and government revenues improved, to get the UK economy back on track. But what exactly could be on the horizon? Here's a breakdown of some of the possible announcements we might hear on 30 October. 1. Proposed Cuts to Winter Fuel Payments for Some Pensioners Cuts to winter fuel allowances have already been passed in Parliament, and there’s speculation about further reductions across other welfare and social benefits. This is part of the government’s plan to trim costs and address the budget shortfall, though it could leave many pensioners feeling the pinch this winter. 2. VAT on Private School Fees From 1 January 2025, all education services and vocational training supplied by private schools, or connected individuals, will be subject to VAT at the standard 20%. This change will undoubtedly impact families using private education and could reshape the landscape of schooling in the UK. 3. No Rises in Taxes for Working People One piece of good news (depending on how you look at it) is that there are no planned rises for income tax, National Insurance, or VAT. Rachel Reeves has made it clear she won’t target working people, as keeping consumers spending and businesses trading is essential to any economic recovery. 4. Corporation Tax Changes Labour pledged earlier this year not to raise corporation tax rates, but with everything on the table, there's speculation that they could reduce the standard rate of 25% to make the UK more competitive. It’s a delicate balance between stimulating business growth and ensuring the public purse is filled, so this will be one to watch closely. 5. Rises in Capital Gains Taxation While working people won’t see tax hikes, Reeves may look to capital gains tax and inheritance tax as a way to bolster government revenues. This could mean bad news for business owners and high-net-worth individuals, who may face increased tax liabilities on their assets. 6. No Introduction of a Wealth Tax There were rumours of a wealth tax circulating before the General Election, but Rachel Reeves has been firm that such a move isn’t on the table. Higher income tax bands are likely to remain untouched, which might offer some relief to those concerned about this potential revenue-raising measure. 7. Changes to Pensions State pensions will rise by £460 annually from April 2025, but private pensions might not escape untouched. Key changes could include restricting tax relief on contributions to the basic rate of 20% or potentially 30%. Additionally, the 25% tax-free withdrawal limit – currently capped at £268,275 – may be subject to new restrictions. These reforms would change the game for those saving for retirement, so it's important to keep an eye on this. 8. More Details on Changes to Non-Dom Rules In July, changes to the non-domiciled rules were previewed, and we’re expecting more clarity on how the new Foreign Income & Gains (FIG) system will work. For UK business owners and high-net-worth individuals with overseas assets, this could have significant implications. What Should You Do? There’s no doubt that this year’s Autumn Statement will bring changes that could affect both individuals and businesses. As always, at Navigate Accountancy, we’ll be here to guide you through the fine print and help you understand what these new measures mean for you. In the days following the Autumn Statement, we’ll be publishing a detailed breakdown of all the major announcements on our blog – so stay tuned! If you have any questions in the meantime, don’t hesitate to reach out. We’re here to help you navigate through the changes and make sure you're prepared for whatever comes next.

No one likes the thought of an HMRC audit. It’s a bit like being invited to that school reunion you really don’t want to attend – awkward, uncomfortable, and filled with questions about things you'd rather not revisit. But unlike a reunion, there’s no chance to quietly slip away. Instead, an audit comes with piles of paperwork, endless scrutiny, and the risk of fines if everything isn’t in perfect order. Here’s the good news: good bookkeeping is your best defence. So, let’s see how keeping your finances tidy and transparent can help protect you from the headaches of an HMRC audit. 1. Clear records keep the taxman happy First things first: HMRC loves clear, accurate records. When your books are in order, it shows that you're running your business responsibly. It’s like presenting a well-organised suitcase at airport security – everything neatly packed, easy to see, and no surprises. If your records are clear, you’ve already removed a huge layer of potential stress from the audit process. But if your accounts are a jumbled mess, HMRC’s auditors are more likely to poke around. And let’s be honest, no one wants HMRC – or airport security for that matter – poking around more than they need to. 2. Avoiding red flags Certain things in your accounts can send HMRC a signal to take a closer look. Sudden drops in income, inconsistent VAT returns, or questionable expense claims can trigger an audit. While some changes in your financials are perfectly legitimate, if they’re not properly accounted for or explained, HMRC might start asking questions. This is where good bookkeeping comes in. By keeping detailed, up-to-date records of your transactions, you can quickly answer any questions that might arise. Whether it’s explaining that drop in income due to a seasonal lull or justifying that larger-than-usual travel expense, having the information at your fingertips makes life a lot easier. 3. Stress-free tax returns One of the most common things we hear from clients is how stressful they used to find submitting their tax return. And we don’t blame them. The last couple of weeks in January can feel overwhelming, especially if you’re sifting through months (or even years) of unorganised financial data. That’s why accurate bookkeeping, done regularly, is so helpful. It means you’re not scrambling to pull things together at the last minute or making hasty decisions that could turn into costly errors. With well-maintained books, your tax returns practically write themselves. Okay, maybe not that easy, but you get the point. It takes the pressure off, and more importantly, ensures that your tax return is accurate and complete, reducing the chance that HMRC will feel the need to take a closer look. 4. Proof of compliance One thing HMRC cares deeply about is compliance – essentially – are you following their rules? Whether it’s VAT, PAYE, or corporation tax, the taxman expects you to meet your obligations on time and correctly. Bookkeeping is what ensures you have all the evidence to prove you're doing just that. Missed a VAT deadline? That’s the kind of thing that can prompt an audit. Filed PAYE returns late? Another red flag. When you keep on top of your finances, you’re not just protecting your cash flow, you’re showing HMRC that you’re a compliant business that takes its responsibilities seriously. 5. Audits aren’t just random Contrary to popular belief, audits don’t always come out of the blue. Sure, some are random, but many are triggered by specific factors like discrepancies in your accounts or a history of late filings. By keeping your financials neat and avoiding these triggers, you reduce the risk of having HMRC knocking on your door. And in the unfortunate event that you do get selected for an audit, having clean, accurate books means the process is likely to be a lot smoother. If HMRC can quickly see that everything is in order, they’ll spend less time looking for problems – because they won’t find any! 6. The value of a bookkeeper’s eye Here’s where a professional bookkeeper really shines. It’s one thing to keep your accounts in order, but it’s another thing to have someone who knows what HMRC is likely to look for. Bookkeepers have an eye for detail and can spot potential issues before they become actual problems. Plus, they’re familiar with HMRC’s reporting requirements, so they can make sure you’re ticking all the right boxes. Whether it’s reconciling your bank statements, tracking expenses, or ensuring your VAT returns are accurate, a good bookkeeper will help you stay on the right side of the tax authorities. 7. Peace of mind At the end of the day, keeping your books in good order isn’t just about avoiding an audit –it’s about peace of mind. When you know that everything is up to date, accurate, and accounted for, you can focus on growing your business instead of worrying about what HMRC might think of your accounts. It’s not the most glamorous part of running a business, but let’s be honest: having one less thing to worry about is worth its weight in gold. So, whether you’re a sole trader or running a large, limited company, keeping your bookkeeping tight is one of the best ways to protect your business from HMRC scrutiny. And if that sounds like more work than you want to handle, well, that’s where we come in. Bookkeeping is what we do best – so you can keep doing what you do best. Contact the team on 01709 589 439 or send us a message via our website .