Mixed Business Outlook for 2025: Optimism vs. Challenges

As we step into 2025, UK businesses are showing cautious optimism. According to Lloyds Bank, 70% of businesses expect turnover growth, with 73% anticipating increased profitability. Many industry leaders believe government initiatives will drive competitiveness and attract foreign investments.

However, not all reports paint a rosy picture. The Confederation of British Industry (CBI) warns of a potential dip in business activity, citing hiring freezes and lower retail spending. The Bank of England also reported a 2.6% inflation increase, the highest in eight months.

Key Takeaway: While confidence is growing, businesses must stay agile to navigate uncertainties in hiring, retail, and inflation.

Charitable Donations Through Wills Hit £2.1 Billion

In 2024, over 400 estates donated more than £1 million to charities, driving total charitable gifts to a record-breaking £2.1 billion.

🔹 High-value gifts increased by 33%, rising from £850 million in 2023 to £1.1 billion in 2024.
🔹 54% of all charitable estate donations came from large contributions over £1 million.
🔹 Those who donate 10% or more of their estate benefit from a reduced inheritance tax (IHT) rate of 36%, compared to the standard 40%.

Estate planning is increasingly used to support philanthropic causes while strategically reducing tax liabilities.

Considering legacy giving? Speak with a tax advisor to optimize your estate’s impact.

92,800 Tax Returns Filed Over Christmas – Are You Ready?

With the 31 January self-assessment deadline looming, HMRC reported that nearly 92,800 people filed their tax returns over Christmas.

🔹 Christmas Eve: 23,731 tax returns filed
🔹 Christmas Day: 4,409 submissions (yes, even during festive lunch!)
🔹 New Year’s Eve: 38,000 tax returns completed
🔹 New Year’s Day: 24,800 submissions

HMRC urges taxpayers to file early to avoid penalties and recommends using online services for a faster process.

📌 Don’t leave it until the last minute! Late submissions result in penalties and interest charges.

HMRC Helpline Strikes Disrupt Self-Assessment Season

Public and Commercial Services Union (PCS) members have scheduled eight days of strike action at HMRC’s Benton Park View office in Newcastle.

🔹 The strikes, running from 23 December 2024 to 14 February 2025, aim to reinstate three dismissed union representatives.
🔹 Approximately 0.5% of HMRC’s workforce is involved, but disruption is expected in employer support and Construction Industry Scheme (CIS) helplines.
🔹 HMRC advises avoiding affected phone lines during strike hours, suggesting alternative digital channels instead.

Strike Schedule:
📅 23 January, 29 January, 5 February, 6 February, 14 February
📍 Picket lines at Ainsthorpe Garden entrance & main gates

Taxpayers should plan ahead to avoid delays in queries and filings.

Final Thoughts: Key Takeaways for Business Owners & Taxpayers

✅ Business owners should stay informed about growth trends and economic shifts.
✅ Charitable estate planning can optimize both philanthropy and tax efficiency.
✅ Self-assessment filers should act now to avoid last-minute penalties.
✅ HMRC strike disruptions may cause delays—use digital channels when possible.

📢 Need expert advice? Our team at Caseron Cloud Accounting is here to help. Contact us to discuss tax planning, compliance, and business growth strategies.