Latest news with #AutumnBudget
Associated Press
3 days ago
- Business
- Associated Press
Specialist Hospitality Sector Accountants, James Todd & Co, Share Advice for Businesses Hit By Revenue Uncertainty
05/29/2025, Chichester PO20 2EW // KISS PR Brand Story PressWire // James Todd & Co, a respected accountancy group with experts focused on the hospitality sector, has offered some guidance for businesses in the industry, following a tumultuous few months where revenues have fluctuated considerably, and in contrast to the general GDP trends. The latest UK GDP figures, published by the Office for National Statistics (ONS) provided long-awaited relief reflecting a small margin of growth of 0.2% in March 2025, which compares to 0.5% in February and a contraction of 0.1% in January. While improvements in services spending have played an important role, the firm notes that the levels of apprehension currently present require agility and robust financial planning. Why Hospitality Sector Businesses Are Struggling With Uncertainties Over the Future Last year was a significant challenge for many hospitality businesses. Sharp rises in operating costs, high inflation levels, and consumer caution meant that a large proportion of organisations found it challenging to remain profitable. A reported 42% of consumers indicated last year that they intended to reduce spending on dining out, which increased to 46% for 2025. While interest rates have now stabilised to some extent, the 8.5% increase in staffing overheads introduced in the Autumn Budget has painted an uneasy picture for the months ahead. Given the sector's dependency on discretionary spending, record-high utility prices and dips in consumer confidence have had a greater direct impact on the hospitality sector than in many other areas. This culminated in a 2.4% fall in trade in January, far underperforming against overall GDP, which shrank by 0.1%. Although the most recent data shows a more positive outlook, with modest GDP growth largely attributed to services industries, concerns remain. These are particularly relevant following a year when like-for-like sales only occasionally reached above inflation levels and when thousands of hospitality companies closed their doors in just the last quarter—a closure rate of eight businesses or venues a day. In this climate, James Todd & Co has advised that in-built contingency planning, accurate short and long-term forecasting, and continual oversight of cost pressures, profitability, and reserves are crucial. This gives hospitality sector clients the flexibility to adapt and respond to changes while focusing on commercial sustainability. Targeted Guidance for Hospitality Business Owners in 2025 Michelle Buzzard, FCA, Partner at James Todd & Co said, ' There's no doubt that it's been a tough couple of years for most hospitality businesses, and we've seen particular difficulties within economy-focused providers, as opposed to luxury services, who have been hit hardest by drops in consumer spending. It's also no surprise that the measures introduced in the Autumn Budget and Spring Statement seem to compound the challenge, with many owners already struggling to balance their books and looking for better ways to remain buoyant and liquid while dealing with higher costs and lower incomes. Our key advice for any company in this situation or with concerns over the viability of its trade over the year ahead is to seek expert advice sooner rather than later – which means they do not end up in a situation where the stress of uncertainty makes it all but impossible to focus on innovation and efficiency. Hospitality companies are no strangers to volatility, and most already manage seasonality. Many owners already know they need oversight of overheads and cash flows, to account for periods with typically lower incomes and ensure that reserves are allocated to cover outgoings between peak trading seasons. However, we've seen an increasing number of companies reach the point of crisis, where detailed, diligent financial planning, cost control measures, and budgeting before this point could have highlighted opportunities to restructure, introduce cash flow management strategies, or potentially source financing or capital investment.' Proactive Financial Management Recommendations for the Hospitality Sector Michelle goes on to say, ' Professional accounting isn't just about preparing retrospective accounts, but about giving our clients the tools and resources they need to effectively plan ahead and see barriers to growth before they arrive. We ensure businesses have the support necessary to create contingencies or look at changes to their trading models to adapt to fluctuating consumer trends. Ignoring an issue or hoping for the best is never advisable. We suggest that hospitality businesses with concerns or a lack of forecasting for the summer trading period contact our accountancy teams directly or arrange a convenient time to meet at our Chichester or Fareham offices.' James Todd & Co offers a comprehensive range of hospitality accounting and financial management services, including bookkeeping services, tax planning, VAT reporting, and general accounting expertise. The company also offers bespoke coaching services through its Goals to Growth programme. Read more about James Todd & Co - Accomplished Charity Accountants at James Todd & Co Comment on Calls for New Exemptions and Allowances About James Todd & Co James Todd & Co have been providing accounting services for more than 30 years across Chichester, Fareham, and Portsmouth for businesses across the South East. Their clients trust them to provide bookkeeping, financial auditing and compliance, management accounting and financial advisory services. Media Contact: Oliver Read James Todd & Co 01243 776938
Associated Press
4 days ago
- Business
- Associated Press
Inheritance Tax for UK Nationals Living Abroad: The Newly Introduced Residence-Based Regime
05/28/2025, Paphos 8035 // PRODIGY: Feature Story // Following Labour's formation of a new government, Chancellor Rachel Reeves hinted strongly at proposals to rethink inheritance tax exposure for long-term overseas expatriates. This was borne out in the announcements made during the Autumn Budget, which came into force at the start of the 2025-26 tax year. Coupled with reforms to the non-dom tax regime and Overseas Transfer Taxation on cross-border pension transfers , these changes may significantly impact the tax planning and decisions made by expatriates splitting their time between the UK and other countries, and where they choose to base their primary homes. Chase Buchanan Wealth Management , an international group of accomplished wealth managers and financial advisers, has explained the changes, how they may affect expatriates, and how the new residence-based inheritance tax scheme will work. Changes to the UK's Domicile-Based Inheritance Tax System Domiciliary status has long been a headache for expatriates, many of whom continued to bear some exposure to UK inheritance tax long after they had relocated overseas and settled as permanent tax residents in other jurisdictions. That is because changing domicile can be complex and costly, and a proportion of expatriates simply didn't realise that their tax residency and domiciliary positions were two very different things, leaving families and heirs with sizable inheritance tax burdens they hadn't planned for. From this tax year onward, the positive is that your domiciliary status is no longer relevant. Instead, HMRC will assess the inheritance tax liabilities linked to an estate based on how long the individual had been an overseas resident. Currently, that means any UK citizen who has lived continuously overseas since 5th April 2015 or earlier will not have a UK inheritance tax obligation linked to assets based in another country. The exclusions apply to assets based in the UK, including residential real estate assets, which may still be subject to the tax. The idea is that once a long-term overseas expat has been a resident elsewhere for 10 years, their estate and beneficiaries will no longer be liable for UK inheritance tax against their non-UK assets. However, the opposite also applies. Therefore, non-UK assets will fall within the scope of British inheritance tax following ten years of UK residency if a foreign national from elsewhere, or a British expat, decides to return. How British Expats Will Be Assessed for UK Inheritance Tax Going Forward It is essential to reiterate that the new scheme does not mean that being classed as an overseas resident automatically exempts any British citizen, and their estate, from inheritance tax. Instead, it means that when an expatriate settles in another country, their assets outside of the UK may be excluded from the scope of UK inheritance tax from ten years onward. Much will depend on the specifics of their tax residency position and whether they meet the criteria to be considered long-term overseas residents. This is ascertained using the Statutory Residence Test, which HMRC and the UK authorities already use to determine whether an individual is a tax resident in the UK and, therefore, subject to British taxation against their worldwide income and assets. Other countries use similar rules to decide whether a foreign national resident is exposed to domestic tax only on their locally based assets and income sources, or against all of their wealth and earnings. While the system is fairly complex and involves a series of tests, which look at aspects such as the individual's primary home, where their main income arises, the location of their immediate family members, and their investment or business interests, the Chase Buchanan team can, of course, assist with this. What Does a Residence-Based UK Inheritance Tax System Mean for Expatriates? The ramifications may vary between individual estates, families, and taxpayers. Still, the immediate takeaway, as we've mentioned, is that a person who has lived abroad for at least ten years is unlikely to now have any inheritance tax levied on their estate, at least against assets held outside of the UK. Likewise, an expatriate might decide to restructure their assets, set up trusts and other funds, and gift non-UK assets to loved ones and family members without any concerns about how this could affect their beneficiaries' future tax liabilities. We also expect these reforms to have a material effect on decision-making, particularly for expatriates who may have been considering a return to the UK and those currently planning a relocation and making decisions about whether to liquidate, sell, or transfer UK assets to another tax jurisdiction. That said, it remains crucial to be conscious of succession, inheritance, wealth, and estate taxes in other countries. Being exempt from UK inheritance tax or with a minimal liability by no means limits the tax obligations that could arise in a person's country of residency or affect their nominated heirs. Expatriates who opt to remain non-UK tax residents may no longer need to factor in UK inheritance tax or make decisions about whether to work through the process of establishing a new domicile. However, they will still need to ensure they are fully conscious of how the Statutory Residency Test works, and how, for instance, retaining a UK home may influence the outcomes of that assessment. How Does the New Foreign Income and Gains Regime Factor Into Inheritance Tax Reforms? As a final note, one of the additional announcements relates to the Foreign Income and Gains (FIG) regime, which also took effect from 6th April 2025. This rule means that expatriates who have been non-residents for ten continuous years and choose to return to the UK can take advantage of a four-year exemption. During that initial four years, they may be able to claim UK tax relief against foreign incomes and gains, including those they receive personally and through a trust. This is in a bid to incentivise affluent expatriates to consider a return and make it more tax-efficient to relocate to the UK and bring investment assets and wealth with them. As with all of the topics discussed here, the benefits, tax efficiencies, and impacts on your overall tax position should always be reviewed with help from an experienced global tax adviser. Read more about Chase Buchanan - Experienced Tax Specialists at Chase Buchanan Wealth Management Reflect on the Changing 2025 Global Economic Landscape About Chase Buchanan Private Wealth Management Chase Buchanan is a highly regulated wealth management company that specialises in providing global finance solutions for those with a global lifestyle. We are global financial advisers, supporting expatriates around the world from our regulated European headquarters, and local offices across Belgium, Canada, Canary Islands, Cyprus, France, Malta, Portugal, Spain, UK and the USA. All investments carry risk, including the potential loss of capital. You should carefully consider whether investing is suitable for you, taking into account your personal circumstances, financial situation, and risk tolerance. Chase Buchanan Ltd is authorised and regulated by the Cyprus Securities and Exchange Commission with CIF Licence 287/15. Source published by Submit Press Release >> Inheritance Tax for UK Nationals Living Abroad: The Newly Introduced Residence-Based Regime
Scotsman
5 days ago
- Business
- Scotsman
UK mid-market shaken but not deterred by tariffs dramas and economic head winds
New research from leading business and financial advisory firm Grant Thornton UK has revealed the UK's mid-market remains broadly optimistic in the face of uncertainty driven by tariffs. Sign up to our daily newsletter Sign up Thank you for signing up! Did you know with a Digital Subscription to Edinburgh News, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... Grant Thornton UK's latest Business Outlook Tracker, a rolling survey of over 600 UK mid-market decision makers (April 2025) found that whilst businesses are reviewing their strategies around US and international investment, they expect their decisions to be made quickly and feel they have a clear view of the options available. Undertaken before the announcement of the UK-US trade deal, the Business Outlook Tracker optimism indicators have declined since they reached record highs at the beginning of the year; they remain above average levels seen across the last four years. 80% of businesses were optimistic about the UK's economic prospects over the next six months (-3pp since February) and 59% expect their organisation's profits to increase in next six months (-8pp decrease since February). Advertisement Hide Ad Advertisement Hide Ad Jill Hay, Partner at Grant Thornton UK in Scotland, said:'Mid-market businesses are the real powerhouse of the UK economy. Their plans, actions and opinions are a clear bellwether of our economic health. This survey was undertaken in light of the Government's Spring Statement and six months after the Autumn Budget, both of which contained significant fiscal announcements which created cost increases for businesses in many areas. That mid-market leaders remain this positive is notable. Jill Hay, Partner at Grant Thornton UK in Scotland 'Having faced the considerable challenges of the last five years, dominated by the pandemic and its after-effects, many businesses are now hard-wired to withstand sudden shocks and have built resilience into their business model.' When questioned about their focus on the US market, 75% of respondents said that the US is a core growth market. Though many (61%) respondents agreed that tariffs will have a negative impact on the growth of their business, mid-market leaders are exploring options and remaining cautiously optimistic about cross-Atlantic trade. 70% still believe the Trump administration is good for British business, though this has dropped -13pp since February this year. Despite this positive sentiment, of those businesses currently trading with the US (68% of total respondents) nearly half (45%) expect to stop trading with the US completely, and 25% expect to scale down trading with the US. Only a small number (9%) do not expect any impact on their trade with the US. Advertisement Hide Ad Advertisement Hide Ad Jill Hay concluded:'According to our research, businesses are moving quickly to consider all options on the table, from exploring alternative markets, to setting up US operations to moving elements of the supply chain back to the UK. 'Whilst the survey was undertaken before the announcement of the US-UK trade deal, we have seen limited details so far, and bearing in mind that negotiations in some areas are still in train, I suspect that the mid-market's planning will have changed little – there is still a lot to be decided, and considering all options remains the right business course of action. 'Things are changing at pace, this month so far, we have seen two trade deals and interest rate cut delivering some positive economic progress and welcome reassurance for businesses. Trade deals serve to offer clarity for businesses, aiding planning and investment. With a further deal with the EU expected before the end of the month, this clarity along with the endorsement of global leaders reinforces the UK's position as a reliable trading partner. 'Crucially, in the current unpredictable world, it is important not to take knee-jerk decisions when considering market focus or location of operations. These are longer-term decisions and assuming an outcome can result in locking a business into a costly change programme and higher cost environment. Advertisement Hide Ad Advertisement Hide Ad 'However, inertia can also negatively impact a business. Detailed sensitivity and options analysis, with flexible contingencies, is how we are seeing the better-prepared businesses responding in its current period of 3-6 months before we know more of where US policy, and key international trade deals, will end up.'
CNBC
25-05-2025
- Business
- CNBC
Starmer has delivered some key wins for the UK recently, so why is he so unpopular?
A year into the job, U.K. Prime Minister Keir Starmer has scored some key wins, including recently signing major trade deals with the U.S., India and European Union that will boost the British economy and wages. Opinion polls paint a different picture of his success. A survey by pollster YouGov, published in mid-May, showed that the British public's approval the prime minister has plummeted to a record low, with 69% of voters now having an unfavorable view of Starmer, while just 23% regard him enthusiastically. More worryingly for the Labour Party leader, the fall in popularity is concentrated among Labour voters, half of whom (50%) now have an unfavorable view of Starmer — a 17-point increase from the last poll in mid-April. The share of Labour voters with a favorable opinion of him has meanwhile fallen from 62% to 45% over the month. With things seeming to point in the right direction for the British economy, what's going wrong for its prime minister? The U.K.'s leadership might be touting their impressive record on trade deals recently, but cost-of-living pressures continue to worry ordinary British voters, and businesses are reckoning with Labour-led tax rises. The U.K.'s annual inflation rate hit a hotter-than-expected 3.5% in April, up sharply from 2.6% in March, according to data released by the Office for National Statistics (ONS) on Wednesday. The data highlighted increasing pressures on British households, as prices of electricity, gas and other fuels rose by 6.7% in the year to April. The prices of water and sewerage meanwhile added 26.1% in the month to April, marking the largest monthly hike since at least February 1988, the ONS said. British businesses now face a higher tax burden as a result of government policies introduced in the "Autumn Budget," as well as other measures deemed be many economists to be "anti-growth." These include limits on immigration set to affect foreign workers — who are key to a number of sectors — a rise in the national minimum wage and reforms to workers' rights, which put pressure on many small and medium-sized firms. As such, lofty trade deals promising economic growth and investment that will take time to feed through are cold comfort for many British consumers and businesses struggling right now. "On domestic policy, this government hasn't scored well so far; let's give it a C-minus," Kallum Pickering, chief U.K. economist at Peel Hunt, told CNBC's "Europe Early Edition" on Wednesday. "[We've seen] mostly anti- growth measures and that's the thing that disrupted bond markets over the past few months." On foreign and international policy, the government is "doing a fairly good job," with its latest trade deals a testament to that, Pickering said. "Starmer has contained the downside risk that the U.K. and the U.S. could really escalate on trade. It's not a good deal, but it contains downside risk. The U.K.-India deal is actually a strong signal that the U.K. is open for business. And if you read the press, people that are unhappy with the deal that the U.K. and the EU is striking but, actually, what's the alternative?" he asked. Big business leaders say they're happy with the British government's general direction of travel, with C.S. Venkatakrishnan, group chief executive of Barclays, telling CNBC Thursday that it was "absolutely on track." "If you look at if you look at what they've achieved over the last few weeks, they've had trade deals with the U.S., with India, with Europe, important trading partners. They continue to be repairing relationships with Europe, which they need to," he told CNBC's Steve Sedgwick. Inflationary pressures, he noted, were evident but were not yet leading to "consumer distress," the Barclays exec believed. "We're in fact seeing conduit continued consumer strength, but it's coming because of people managing their balances and their finances prudently. So [they're] economizing. The job market is still strong. But as you see ... people are worried about inflation. People are worried about cost, whether it's winter fuel bills or whether it's more generalized inflation from tariffs, and the only real answer to that is growth, which is what this government is focused on, and what we want to help them." Although some quarters welcome Keir Starmer's calmer and less bombastic approach to leadership than politicians like Reform UK leader Nigel Farage or former Prime Minister Boris Johnson, he continues to face criticism that his leadership style and personality hold him and the Labour Party back. CNBC has contacted the Labour Party for comment on Starmer's poll ratings and is awaiting a reply. "Starmer has great positives — [signing] the trade deals" for one, Bill Blain, strategist and founder of Wind Shift Capital, said that the prime minister's lack of charisma is a deficit. "But he is dull, boring and precise. He is competent, but he is not a personality and lacks political charisma ... Farage has it in spades. So did Boris Johnson," he told CNBC Tuesday. "A additional problem is Starmer lacks able cabinet colleagues able to create the illusion of a cabinet of smart, leaders. Some are settling into their roles but most look out their depth. This is particularly true of Rachel Reeves ... who is naturally not a risk taker," Blain added. "The bigger issue is the narrative — Labour present it as doing the right thing to control spending, but it's backfired as insensitivity to their voters. They are perceived as cruel," he said. Starmer is coming "under pressure," Blain noted, increasing the risk that rank and file Labour lawmakers "will revolt if the polls bite." "That may be happening — [meaning] mutiny!," he said.
Scottish Sun
24-05-2025
- Business
- Scottish Sun
Major coffee shop chain with over 1,000 venues across the UK suddenly closes branch with hastily-stuck sign on its door
Scroll down to find out why retailers are closing stores SHUT UP SHOP Major coffee shop chain with over 1,000 venues across the UK suddenly closes branch with hastily-stuck sign on its door Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) A HUGE coffee chain with more than 1,300 UK branches has shuttered one of its high street shops. Starbucks abruptly pulled the plug on its coffee house in Headington, Oxford. Sign up for Scottish Sun newsletter Sign up 1 Starbucks has pulled down the shutters on its store in Headington Credit: Google maps The location on the town's London Road notified punters that the "shop is now closed" on a store window sign. The coffee giant first waved in customers in October 2007. It is unknown why Starbucks decided to close down the location. Starbucks now has two remaining locations in Oxford, according to its website, which are located on Cornmarket Street and Westgate Shopping Centre. The Sun Online has reached out to Starbucks for comment. In April last year, Starbucks announced the closure of one of its Reading cafes, leaving some shoppers "shocked". And in March 2024, locals were saddened to hear their Dalton Park store, in Murton, Country Durham, would be closing down in hours. RETAIL APOCALYPSE Both independent and industry giants have been struggling with rising costs and reduced footfall over the past few years. Dozens of shops are set to close across the country before the end of the month in the latest blow to UK high streets. Just a few months into 2025 and it's already proving to be another tough year for many major brands. Rising living costs - which mean shoppers have less cash to burn - and an increase in online shopping has battered retail in recent years. Shock Closure: Fisher Tours Ends Operations After 22 Years In some cases, landlords are either unwilling or unable to invest in keeping shops open, further speeding up the closures. Smiggle isn't the only stationary shop shutting its doors, more WHSmiths stores are set to close in the next few months. The huge sports retailer, Sports Direct is axed its Newmarket Road store in Cambridge on April 18. Whilst, Red Menswear in Chatham in Medway, Kent, shut for the final time on Saturday, March 29, after selling men's clothing since 1999. A couple months ago, Essential Vintage told followers on social that it would be closing down after they had been "priced out" because of bigger players in the market such as Vinted. Jewellery brand Beaverbrooks is also shutting three shops early this month. New Look bosses made the decision to axe nearly 100 branches as they battle challenges linked to Autumn Budget tax changes. Approximately a quarter of the retailer's 364 stores are at risk when their leases expire. This equates to about 91 stores, with a significant impact on New Look's 8,000-strong workforce. It's understood the latest drive to accelerate closures is driven by the upcoming increase in National Insurance contributions for employers. The move, announced by Chancellor Rachel Reeves in October, is hitting retailers hard - and the British Retail Consortium has predicted these changes will create a £2.3billion bill for the sector.
