Parents with teenagers could lose out on Child Benefit after 31 August
If you or any of your employees have children aged 16 to 19, it is worth noting an important HMRC deadline that could affect household finances.
What is changing?
Child Benefit automatically stops on 31 August after a child turns 16, unless a parent confirms their teenager is staying in full-time education or approved training.
Parents with children in this age group need to update HMRC before 31 August 2026 to keep their payments going.
Missing the deadline could mean losing up to £1,406 a year in Child Benefit, so it is a straightforward reminder that could make a real difference to you and your staff.
How employees can extend their claim
Extending a claim is quick and can be done online through GOV.UK or via the HMRC app.
Employees simply need to search "extend Child Benefit" and confirm their child's education or training status.
What about higher earners?
Employees or a partner earning more than £60,000 who extend their Child Benefits claim will still be liable for the High Income Child Benefit Charge.
This charge can now be collected directly through PAYE, rather than requiring a separate Self Assessment payment.
HMRC's online Child Benefit tax calculator can be used to work out the benefit entitlement and the value of the charge.
What you can do
A short reminder in a staff newsletter, intranet post or team briefing could be enough to stop eligible employees losing out unnecessarily.
It costs nothing to pass on and could be worth over a thousand pounds a year to the right member of your team.
If you have any questions about the High Income Child Benefit Charge more broadly, please
get in touch with our team.
SMEs in the UK have struggled with late payments for years and cash tied up in unpaid invoices can put pressure on your business’s ability to operate effectively. Invoice financing can release funds locked up in late payments, giving a business an instant cash flow injection until the outstanding balance is settled. Consistent late payments can significantly stunt business growth, especially for SMEs with thinner cash reserves. What is invoice financing? Invoice financing works by a lender using unpaid invoices as collateral for funding. Lenders can advance up to 95 per cent of an invoice’s total value almost immediately, instead of waiting 30 days, 60 days or longer for payment from a customer. The remaining balance of an invoice’s value can be settled once the customer has paid and lenders will deduct a service charge and discount depending on the value of the loan. This means SMEs can instantly access capital that would be otherwise trapped, allowing them to offer more payment flexibility to clients. When is it worth it? This method of securing working capital is a great fit for firms that experience long waits for payment, either due to contract terms or overdue invoices. Invoice financing helps keep cash flow healthy to cover running costs, begin new projects and reinvest money into business growth. However, invoice financing is not a silver bullet. Businesses with narrow margins might not be able to use these services, as the fee structures can sometimes dent profitability. Likewise, businesses with a small volume of invoices that are high value might face disproportionately high costs for advancing payments. Also, if a business typically receives quick payment turnaround, a short-term overdraft loan may be more appropriate. Seeking advice Whether invoice financing is the right choice for you will depend on a number of factors, so getting a second opinion from a specialist can help you decide. Our accountants can assess your position and advise which options will work best, helping you overcome the frustration of late payments. Get in touch to find out more about invoice financing.
HMRC enquiry letters are sent to individuals to notify them that HMRC has chosen to formally investigate their tax affairs. While some enquiries are carried out randomly, the majority are selected based on a risk assessment of a business. These checks should not be seen as accusatory, as they are often a routine procedure to make sure your business is compliant and the correct amount of tax is being paid. If you’ve received a letter, you need to know what to do. Why are there more enquiries? It is no surprise enquiries are on the rise when the UK’s estimated tax gap for 2024 to 2025 sits at £59.2 billion, up £6.4 billion on the previous year, according to HMRC. The largest component of the tax gap by customer group is small businesses, accounting for 62 per cent of lost liabilities. HMRC is feeling the fiscal squeeze and small businesses have been identified as a key target for closing the tax gap. How should I respond? After receiving an enquiry letter, you have 30 days to respond from the date printed. Your first step should be to speak with your accountant and gather all the relevant documents and information that has been requested by HMRC, making sure each requirement is reasonable. Next, the information should be reviewed to understand the context and implications of the information HMRC has asked for. If you believe there is anything that might need to be disclosed, it is important that a disclosure is made as early as possible. HMRC reviews the timing of any disclosure when deciding on penalties. Finally, when you are ready, respond to HMRC with the information alongside any explanations or clarifications. If the deadline is not realistic, it is important to request an extension before a response becomes overdue. How can an accountant help? Accountants can help distinguish between information that is ‘reasonably required’ by HMRC and that which goes beyond their scope. It is not uncommon for HMRC to ask for a response that is broader than what is required, but an accountant can explain where and when disclosure is needed. Throughout the process, accountants can oversee communication with HMRC to minimise inconsistencies and handle extension requests properly. HMRC enquiries can feel overwhelming. If you have received a letter, speak with our team at the earliest opportunity.
Companies House has issued warnings to directors after a rise in scam emails following the organisation's new identity verification processes. The scams are designed to create urgency and encourage directors to hand over personal information or click malicious links. While the changes are intended to help tackle economic crime and improve trust in the UK company register, criminals are exploiting uncertainty around the new rules to target businesses. What is the scam? The scam typically starts with an email claiming that a company director, Person with Significant Control (PSC) or other company officer must complete an identity verification process. The message often contains urgent language and may warn recipients that failing to act could result in penalties, restrictions or compliance issues. The aim is to pressure recipients into responding before they have time to verify whether the communication is genuine. Many of the fraudulent emails closely resemble legitimate messages from Companies House. In some cases, scammers have copied wording directly from official correspondence, making the emails appear authentic at first glance. However, recipients are often directed to fake websites that have been created to collect personal information, login credentials or financial details. Companies House has made it clear that these requests should be treated with suspicion. What do fraudsters want my information for? If criminals successfully obtain personal or company information, they may use it for a range of fraudulent purposes. Information such as names, dates of birth, addresses and contact details can be used to commit identity theft or build a detailed profile of an individual director. This information may then be used to impersonate them in future scams or financial crimes. Fraudsters could also attempt to gain access to company accounts, submit unauthorised filings or impersonate directors when communicating with suppliers, customers or financial institutions. If authentication codes or account credentials are compromised, criminals may be able to access sensitive information or make changes to company records. In many cases, stolen data does not remain with a single criminal group. Personal and business information can be sold to other fraudsters and used in future phishing campaigns, banking scams, invoice fraud schemes or tax-related scams. Once a director has been identified as a potential target, they may become the focus of increasingly sophisticated attacks. What are the signs of a scam to look out for? Business owners need to look out for signs of scams to ensure they do not fall victim to them. Signs to look out for include: Emails sent from non-genuine email addresses that do not end in Gov.uk – all emails from Companies House will end in official government domains. Messages that create a sense of urgency and demand immediate action. Requests for information that do not have a clear reason. Links to websites that do not use an official Government web address. Emails with suspicious attachments, unusual wording or spelling mistakes. If you have received an email from Companies House that you believe is a scam, report it immediately to: phishing@companieshouse.gov.uk and delete the email from all mailboxes. Full guidance on scams can be found here .