Staying informed helps business owners see changes coming, plan ahead, and adjust to a financial landscape that never stands still. In this month’s Caseron News Round-Up, we explore how the UK economy is moving again, why HMRC’s new R&D tool could make life easier for innovators, the latest updates on the High Income Child Benefit Charge, and how remote work abroad is becoming a structured, compliant option for many teams.
UK Growth Edges Up in August
Manufacturing gave the UK economy a small but welcome lift in August. Official data shows growth of 0.1 percent after a similar fall in July. Behind the numbers lies a familiar story. The manufacturing sector expanded by 0.7 percent while the larger services sector stayed flat. Over the three months to August, overall growth reached 0.3 percent.
Government ministers continue to call growth a priority before the autumn Budget. Economists remain cautious, noting that further tax rises or spending cuts may be needed to meet borrowing limits. The Institute for Fiscal Studies points to a £22 billion gap in public finances, suggesting that Chancellor Rachel Reeves could raise taxes to close it. She has confirmed that new measures on both tax and spending are under review.
Globally, the International Monetary Fund expects the UK to be the second fastest-growing advanced economy this year, yet it also predicts the highest inflation rate in the G7 through 2025 and 2026, driven by energy and utility costs. The Treasury notes that the UK has achieved the fastest growth in the G7 since the start of the year, though many households still feel that the economy is stuck. The next Budget is expected to focus on supporting business investment, infrastructure, and policies that help the country build again.
HMRC’s R&D Eligibility Checker Explained
HMRC has launched a new online checker that helps businesses see whether their projects qualify for research and development tax relief before they submit a claim. The tool is similar in idea to the Check Employment Status for Tax system used for IR35. It aims to reduce errors and improve understanding of what HMRC considers real R&D. The checker is optional and offers guidance rather than approval, but it can save time and uncertainty.
The process takes around ten minutes. It begins with the project details and whether your work aimed to solve a scientific or technological problem. Then it calls for the view of a competent professional, someone with practical experience in the field, who can confirm whether the project sought an advance in knowledge and faced genuine technical uncertainty. Finally, the checker reviews all responses and states whether the project qualifies. If the answer is negative, you can change your responses and continue.
At the end, users receive a summary they can preview, save, or print. It explains whether the work qualifies and why. The tool does not assess costs or scheme types, so businesses still need to consult HMRC’s guidance on eligible expenditure.
Updated Process for High Income Child Benefit Charge (HICBC)
HMRC’s online Pay As You Earn service now lets taxpayers pay the High Income Child Benefit Charge directly, a simpler route for many families. The service replaces the need for some to file a full self assessment return.
The charge applies when an individual or their partner has an adjusted net income above £60,000, with child benefit fully withdrawn at £80,000. In the past, most people had to submit a tax return, except in limited cases where smaller amounts could be collected through PAYE. Now, PAYE taxpayers who file only for this purpose can opt out of self assessment entirely, deregister, and pay through PAYE. Access to the new service becomes available the day after deregistration.
HMRC plans to contact about one hundred thousand people who appear liable but are not yet in self assessment. During the 2022 to 2023 tax year, roughly 440,000 individuals paid HICBC. Timing matters, since some may see two HICBC amounts in one PAYE code if liabilities overlap between the 2024 to 2025 and 2025 to 2026 tax years.
Families can still choose to stop receiving child benefit payments altogether. Keeping the registration active remains useful though, as it provides National Insurance credits for parents not currently working and helps ensure a child receives their National Insurance number before turning sixteen.
Workcations Rise with Tighter Compliance
A growing number of employers now allow their staff to spend part of the year working abroad, provided tax and legal checks are in place. What started as a post-pandemic experiment has become a normal option for many mid-sized UK businesses.
A recent survey shows that seventy-seven percent of companies now have a formal international remote working policy, up from fifty-nine percent two years ago. Nearly all require approval and clear parameters such as capped days abroad, approved countries, pre-travel declarations, and guidance on tax and payroll.
The risk of compliance errors has fallen sharply. Only two percent of businesses now see it as a major concern, a sign of greater investment in monitoring tools, payroll controls, and training. The pattern is clear: employees want flexibility, and employers are responding with structured systems that reduce risk.
For companies, the challenge is to design policies that work. Define the rules clearly, understand how each country’s tax and social security systems apply, and create a process for approval and record keeping. Done well, these arrangements help attract and retain talent while avoiding the complications that once came with cross-border work.
Talk to our team to make sure your finances are moving in the right direction.
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