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The UK labour market continues to weaken, shedding 149,000 jobs over the past 12 months, according to the latest data from the Office for National Statistics (ONS).

The number of vacancies, which has now been falling steadily since early 2022, fell to 718,000 in June, which is a fall of 44,000 for the quarter.

Payrolled jobs are still falling fastest in the low paying hospitality sector, suggesting that the mini shock of the employer National Insurance contributions (NICs) and National Living Wage rise combination in April is still feeding through.

Pay growth continues to weaken too, but at a slower pace than the jobs market. Annual private sector wages grew by 4.8% in the year to June – down from 5.3% the year before.

Hannah Slaughter, Senior Economist at the Resolution Foundation, said:

‘The UK’s post-pandemic labour market was red hot. But that period is officially over – the labour market is loose and getting looser, having shed 165,000 payrolled jobs over the past eight months.

‘These jobs falls continue to be concentrated in low paying sectors like retail and hospitality. This reinforces the government’s decision to take a cautious approach to the minimum wage next year as the economic fallout from the recent employer NICs rise continues.’

Self-employed taxpayers and landlords should file their 2024/25 tax return early to find out if Making Tax Digital (MTD) will apply to them from next April, says the Low Incomes Tax Reform Group (LITRG).

Taxpayers who report more than £50,000 of gross income from self-employment and/or rental income in their 2024/25 tax return will be required to join the new Making Tax Digital for Income Tax regime from April 2026 and must have the software needed to participate.

LITRG is encouraging anyone who thinks they could be in scope of MTD from April 2026 to complete their 2024/25 tax return well in advance of the 31 January 2026 deadline to see whether their income exceeds this limit.

HMRC will use the information provided in 2024/25 self assessment tax returns to identify taxpayers who will be impacted by MTD from April 2026.

HMRC will then write to tell them they must follow the MTD rules, but this could be as late as February or March 2026.

Some people who meet the income threshold might be able to apply for an exemption from MTD if they meet certain criteria, for example if they are digitally excluded.

Sharron West, Technical Officer at LITRG, said: ‘There are still more than six months to go until the self assessment deadline for 2024/25 tax returns, but if you think you may meet the MTD threshold, you should act now.’

UK-based holders of cryptoassets will have to provide personal details to crypto service providers or face penalties of up to £300 from HMRC.

The regulations will be introduced in the UK on 1 January 2026 and are part of the OECD Cryptoasset Reporting Framework (CARF). This requires crypto platforms to share detailed information with tax authorities of clients’ crypto transactions.

In addition, HMRC is already requiring full disclosure on self assessment forms for the 2024/25 tax year, so taxpayers who own crypto – like Bitcoin, Ethereum or Dogecoin –will have to include any crypto gains or income in their tax returns.

HMRC said the ‘new rules will help unmask anyone evading tax due on their crypto profits. Those who don’t comply risk a £300 fine from HMRC’.

Once data is received from service providers, HMRC will be able to identify those who haven’t been correctly paying tax on their crypto profits.

The Treasury estimates the measure will raise up to £315 million in tax revenue by April 2030, the same amount needed to fund more than 10,000 newly qualified nurses for a year.

Jonathan Athow, HMRC’s Director General for Customer Strategy and Tax Design, said:

‘Importantly, this isn’t a new tax – if you make a profit when you sell, swap or transfer your crypto, tax may already be due.

‘These new reporting requirements will give us the information to help people get their tax affairs right.

‘I urge all cryptoasset users to check the details you will need to give your provider. Taking action now and having this information to hand will help you avoid penalties in the future’

More than one in four UK businesses have been the victim of a cyber-attack in the last year with many risking ‘sleepwalking’ into disruption, according to a new report.

The survey conducted by the Royal Institution of Chartered Surveyors (RICS) found that 27% of companies said their building had suffered a cyber-attack in the last 12 months, up from 16% a year ago.

Almost three-quarters of business leaders believe that a cybersecurity incident will disrupt their business in the next 12 to 24 months, the survey found.

The paper identifies operational technology such as building management systems, CCTV networks, Internet of Things (IoT) devices and access control systems as risk areas.

It also notes concerns that some buildings use outdated operating systems (OS). A building opened as recently as 2013 could conceivably use Windows 7; an OS that hasn’t received security updates from Microsoft in over five years.

Paul Bagust, Head of Property Practice at the RICS, said:

‘Buildings are no longer just bricks and mortar, they have evolved into smart, interconnected digital environments embracing increasingly sophisticated and ever-evolving technologies to enhance occupier experience.

‘It is inconceivable to imagine a world where technology will not continue to pose a growing risk to a building’s operation, and it is equally impossible to consider that the management of digital risks will not be needed as an imperative measure to safeguard the future of a building and prevent systems from being compromised.

‘Failure to identify these growing digital challenges and incorporate security countermeasures risks businesses sleepwalking into cyberattacks.’

HMRC is warning those earning extra income through a side hustle to check if they need to register for self assessment and file a tax return.

Side hustles can be any additional income stream, from online selling to content creation, from dog walking to property rental. It also includes gains or income received from cryptoassets.

Anyone who earns over the £1,000 threshold may need to register for self assessment and complete a tax return. There is a checker tool on GOV.UK for those who aren’t sure if they meet the criteria. If they do and are new to self assessment they will need to register to receive their Unique Taxpayer Reference. Guides for side hustlers can also be found at taxhelpforhustles.campaign.gov.uk.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said:

‘Whether you are selling handmade crafts online, creating digital content, or renting out property, understanding your tax obligations is essential. If you earn more than £1,000 from these activities, you may need to complete a self assessment tax return.

‘Filing early puts you in control – you will know exactly what you owe, can plan your payments, and avoid the stress of the January rush. You don’t need to pay immediately when you file – you have until 31 January to settle your tax bill.’

Taxpayers are being urged to check their online HMRC account after scammers attempted to defraud the tax authority using individuals’ data and login details.

The Low Incomes Tax Reform Group (LITRG) is also reminding people of the importance of being vigilant and taking care of personal data.

HMRC recently announced that criminals had targeted the online tax accounts of nearly 100,000 taxpayers to try to make false tax refund claims.

In some cases, HMRC have said that criminals gained people’s login credentials and made use of existing online tax accounts. But, in others, they gained personal data that enabled them to set up new online tax accounts via the Government Gateway.

HMRC have locked down the compromised accounts as a precaution. They are writing to those affected with details on how they can regain access to their accounts.

Joanne Walker, Technical Officer at LITRG, said:

‘HMRC have confirmed that they were the victim of online scammers who tried to defraud them of money using the details of individual taxpayers.

‘While HMRC say this attack has not resulted in any tax-related financial loss for individual taxpayers, it is a timely reminder that fraud is an ongoing threat.’

Almost half of UK sole traders feel unprepared for upcoming Making Tax Digital (MTD) for Income Tax changes, according to research conducted by IRIS Software.

The new MTD rules mandate digital record-keeping and quarterly Income Tax updates starting April 2026 and non-compliance can lead to significant penalties.

The study found that almost one in three sole traders have never heard of MTD,

MTD for Income Tax will require self-employed individuals, landlords and small businesses earning over £50,000 to keep digital financial records and submit quarterly updates using compatible software from April 2026. The threshold drops to £30,000 in 2027 and to £20,000 in 2028.

The changes could place a significant burden on business owners, who will be required to submit at least five updates to HMRC each year.

Mark Chambers, Managing Director at IRIS Accountancy, said:

‘These findings highlight an important moment of opportunity for the UK’s sole traders. With MTD just around the corner, there’s a real chance for businesses to modernise their financial processes, unlock efficiencies, and gain better visibility of their income and expenses.

‘It’s encouraging to see that nearly a quarter feel ready to meet the requirements, but that leaves a significant portion not experiencing the benefits of digitalised tax reporting that compliance will bring.’

The government is introducing legislation to regulate cryptoassets and improve consumer protection for the asset class.

The new rules will apply to firms offering services for cryptoassets like Bitcoin and Ethereum.

The government says that around 12% of UK adults now own or have owned crypto, up from just 4% in 2021. But it says owners have too often been left exposed to risky firms and scams.

Under the new rules, crypto exchanges, dealers and agents will be brought into the regulatory perimeter. Crypto firms with UK customers will also have to meet clear standards on transparency, consumer protection and operational resilience, like their counterparts in traditional finance.

Chancellor of the Exchequer, Rachel Reeves said that the UK and US will use the upcoming UK – US Financial Regulatory Working Group to continue engagement to support the use and responsible growth of digital assets.

Ms Reeves said:

‘Through our Plan for Change, we are making Britain the best place in the world to innovate — and the safest place for consumers. Robust rules around crypto will boost investor confidence, support the growth of Fintech and protect people across the UK.’

Sole traders and landlords with an income over £50,000 have been warned that there is less than a year before they will be required to use Making Tax Digital for Income Tax (MTD for IT).

HMRC says the launch of MTD for IT on 6 April 2026 will mark a significant and time-saving change in how these individuals will need to keep digital records and report their income to the tax authority.

HMRC says that by keeping digital records throughout the year, sole traders and landlords can save hours previously spent gathering information at tax return time – allowing them to spend more time focusing on their business activities.

Quarterly updates will spread the workload more evenly throughout the year, bring the tax system closer to real-time reporting and help businesses stay on top of their finances and avoid the last-minute rush. HMRC is urging eligible customers to sign up to a testing programme on GOV.UK and start preparing now.

Craig Ogilvie, HMRC’s Director of MTD, said:

‘MTD for IT is the most significant change to the self assessment regime since its introduction in 1997. It will make it easier for self-employed people and landlords to stay on top of their tax affairs and help ensure they pay the right amount of tax.

‘By signing up to our testing programme now, self-employed people and landlords will be able to familiarise themselves with the new process and access dedicated support from our MTD Customer Support Team, before it becomes compulsory next year.’

Chancellor Rachel Reeves announced ‘no further tax increases’ in the 2025 Spring Statement.

The Chancellor’s Autumn Budget contained a record £40 billion in tax increases. However, it did not raise personal taxes including, Income Tax, employee National Insurance contributions or VAT.

Ms Reeves had pledged one fiscal event a year and confirmed that no taxes would be raised at the Spring Statement.

Instead, the Chancellor made a number of announcements on spending and economic forecasts.

The forecast from the Office for Budget Responsibility (OBR) halved the UK’s growth in 2025 from 2% to 1%.

However, Ms Reeves pointed out that the Organisation for Economic Co-operation and Development (OECD) downgraded this year’s growth forecast for every G7 economy.

The OBR forecasts show that inflation will average 3.2% this year before falling ‘rapidly’, meeting the Bank of England’s 2% target from 2027 onwards.

Ms Reeves said that defence spending will increase to 2.5% of GDP, by reducing overseas aid.

This means an extra £2.2 billion for the Ministry of Defence in the next financial year to address ‘increasing global uncertainty’.

The government will spend a minimum of 10% of the MoD’s equipment budget on innovative technology, boosting production in places such as Derby, Glasgow and Newport.

In addition, the Chancellor said that planning reforms will put the government ‘within touching distance’ of hitting its target of 1.5 million new homes over the course of this Parliament.

Ms Reeves said that this will increase the level of real GDP by 0.2% by 2029/30, adding £6.8 billion to the economy.

The Chancellor said:

‘Our task is to secure Britain’s future in a world that is changing before our eyes. The threat facing our continent was transformed when Putin invaded Ukraine. It has since escalated further and continues to evolve rapidly.

‘At the same time, the global economy has become more uncertain, bringing insecurity at home as trading patterns become more unstable and borrowing costs rise for many major economies.’

People should check their National Insurance contributions (NICs) record to see if they can boost their state pension entitlement before 5 April 2025, warns the Low Incomes Tax Reform Group (LITRG).

For a limited time, certain people are able to make voluntary contributions to cover any gaps in their NICs record dating back as far as the 2006/07 tax year, potentially boosting entitlement to the new state pension.

This applies to people who have already retired and are claiming the new state pension, as well as those who have not yet reached state pension age.

However, the extended window to make voluntary contributions for years from 2006/07 to 2018/19 will end on 5 April 2025, following which the window will revert to the usual six tax years.

Antonia Stokes, LITRG Interim Senior Manager, said:

‘If you have gaps in your National Insurance record, it can potentially make a big difference to the amount of state pension you receive now or in the future.

‘The deadline to make voluntary contributions dating back to 2006/07 will end in a few weeks’ time, so it is time to act if you want to take advantage of this.

‘The easiest way to find out if you have a gap in your National Insurance record and how much it might cost to plug it, is to check your online tax account on GOV.UK or contact the DWP.’

The reporting threshold for trading income for self assessment is being lifted from £1,000 to £3,000 gross within this parliament, according to the Treasury.

This includes people trading clothes online, dog-walking or gardening on the side, driving a taxi, or creating content online.

The Treasury says this will benefit around 300,000 taxpayers who will no longer need to file a self assessment tax return.

An estimated 90,000 of them will have no tax to pay and no reason to report their trading income to HMRC in the future at all. Others will be able to pay any tax they owe through a new simple online service.

The changes are part of the government’s Plan for Change, which it says will drive forward efficiency reform.

James Murray, Exchequer Secretary to the Treasury, said:

‘From trading old games to creating content on social media, we are changing the way HMRC works to make it easier for Brits to make the very most of their entrepreneurial spirit.

‘Taking hundreds of thousands of people out of filing tax returns means less time filling out forms and more time for them to grow their side-hustle.

‘We are going further and faster to overhaul the way HMRC works to make sure it delivers the Plan for Change that will help put more money in people’s pockets.

The financial benefits of MTD for VAT could be as high as £915 million, according to analysis carried out by HMRC.

Since April 2022 all VAT-registered businesses should be using MTD compatible software to keep digital records and submit returns.

HMRC used responses from a survey with businesses in MTD for VAT using fully functional software to estimate the average time savings businesses have made.

The results showed that, on average, businesses have saved time on their ‘business’ finances and record keeping’ compared to time spent before MTD. Across all VAT businesses using fully compatible software, the time saved is estimated to be between 26 hours and 40 hours per business per year.

HMRC said that if this was extrapolated to the population, it estimated a time saving of between 32 million hours and 49 million hours in the 2022/23 tax year across all businesses in MTD for VAT.

The financial value of this time is estimated to be between £603 million and £915 million.

HMRC said:

‘The results of our analysis provide strong evidence that Making Tax Digital is having a positive impact for businesses. The findings complement other published estimates of the administrative burden of Making Tax Digital and demonstrate a wider economic benefit, beyond any requirement to meet tax obligations.’

More than 11.5 million taxpayers beat the self assessment deadline to file their tax return for the 2023/24 tax year by 31 January and avoid a £100 late filing penalty, according to HMRC’s data.

Almost three quarters of a million taxpayers left it to the last minute to file with 732,498 submitting returns on deadline day.

The most common time to file on 31 January was 16:00 to 16:59 when 58,517 people submitted returns. And 31,442 taxpayers cut it as close as possible by filing between 23:00 and 23:59.

Late filing and late payment penalties are charged for failure to meet the deadline. HMRC is urging anyone who has missed the deadline to file their tax return now and pay any tax owed.

The tax authority says one of the quickest ways to pay is via the free and secure HMRC app. Time to Pay arrangements are available for those who cannot pay their tax bill in full, it adds.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said:

‘Thank you to the millions of people and agents who filed their self assessment tax return and paid any tax owed by 31 January. I’m urging anyone who missed the deadline, to submit their return as soon as possible to avoid any further penalties. Search ‘self assessment’ on GOV.UK to find out more.’

HMRC is warning of scam attempts targeting self assessment taxpayers in the run up to the 31 January deadline.

Last year, concerned taxpayers reported nearly 150,000 scam referrals to HMRC.

Around half of all scam reports in the last year were fake tax rebate claims, says the tax authority.

There has been a 16.7% increase in all scam referrals to HMRC – 144,298 were received between November 2023 and October 2024, up from 123,596 in the previous 12-month period, it added.

If communication claiming to be from HMRC asks for personal information or offers a tax rebate, check the advice on GOV.UK to help identify if it is scam activity.

HMRC says it will never leave voicemails threatening legal action or arrest or ask for personal or financial information over text message – only fraudsters and criminals will do that.

Kelly Paterson, Chief Security Officer at HMRC, said:

‘With millions of people filing their self assessment return before January’s deadline, we’re warning everyone to be wary of emails promising tax refunds.

‘Being vigilant helps you spot potential scams. And reporting anything suspicious helps us stop criminal activity and to protect you and others who could have received similar bogus communication.

‘Our advice remains unchanged. Don’t rush into anything, take your time and check ‘HMRC scams advice’ on GOV.UK

Nearly half UK of adults have not written a will, nor are they currently in the process of doing so, according to research published by life insurer Canada Life.

Over a quarter said they do not have enough assets or wealth to warrant making a will, closely followed by 20% who believe they still have plenty of time to make one.

Additionally, the research found that 15% do not want to pay to write a will, while 14% believe their loved ones will inherit their assets automatically.

Stacey Love, Tax and Estate Planning Specialist at Canada Life, said:

‘Passing away without a will in place can place a significant burden on our loved ones. However, our research highlights that, up and down the country, people are not planning ahead or having conversations about the future.

‘No matter your age, writing a will should be a priority, even if you don’t think you have any real wealth to pass on. It’s also very important to have open, honest conversations with your loved ones about your inheritance plans, so they know what to expect.

‘Once your will is written, remember to review it every few years to make sure it remains accurate. Family circumstances can change over time, and so your will needs to reflect this.’

Almost 300,000 self assessment taxpayers filed their return in the first week of the new tax year, HMRC has revealed.

The early filers were almost 10 months ahead of the 31 January 2025 deadline.

Almost 70,000 people filed their return on the opening day of 6 April this year.

HMRC is encouraging people to file early and avoid the stress of last-minute filing.

The tax authority says early filing can also help with budgeting. A budget payment plan helps spread the cost of tax bills with weekly or monthly payments.

In addition, refunds of overpaid tax will be paid as soon as the return has been processed.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said:

‘Filing your self assessment early means people can spend more time growing their business and doing the things they love, rather than worrying about their tax return.

‘You too can join the thousands of customers who have already done their tax return for the 2023-24 tax year by searching ‘self assessment’ on GOV.UK and get started today.’

UK taxpayers spent the equivalent of 800 years on hold to HMRC in 2022/23, according to a report published by the National Audit Office (NAO).

The report found that funding pressures, job cuts and a push to reduce costs by encouraging people to manage their tax affairs online had all led to a poor call-handling performance by HMRC.

The average time spent waiting on the phone to speak to an adviser in the 11 months to February 2024 was almost 23 minutes – well above the five minutes recorded in 2018/19.

Altogether taxpayers spent 7 million hours, or 798 years, on hold to HMRC in 2022/23, according to the report.

Customer service is in a ‘declining spiral’ at HMRC, which had not met its goals for responding to taxpayer correspondence or telephone calls for several years, the NAO added.

The government has recently announced an extra £51 million in funding to help HMRC improve its telephone helplines.

Gareth Davies, Head of the NAO, said:

‘HMRC’s telephone and correspondence services have been below its target service levels for too long.

‘While many of its digital services work well, they have not made enough of a difference to customers, some of whom have been caught in a declining spiral of service pressures and cuts. HMRC has also not achieved planned efficiencies.

‘HMRC must allow more time for these services to bed in and understand the difference they make before adjusting staffing levels.’

The next government must take a direct hand in rebuilding trust between HMRC and the self-employed, according to the Association of Independent Professionals and the Self-Employed (IPSE).

The call is part of IPSE’s manifesto for the General Election on 4 July.

Under its proposals, a Cabinet minister would be charged with directly overseeing the tax office. Taxpayers would also be offered more recourse when the department has acted carelessly or unfairly.

The manifesto also calls for the prevention of ‘obscenely’ long payment terms and the scrapping of the off-payroll rules.

IPSE also wants to see an end to shortfalls in support for self-employed parents and better incentives for people to adopt side hustles.

Derek Cribb, IPSE’s CEO, said:

‘The self-employed vote is very much up for grabs at this election – more than at any election in living memory.

‘The sector is bursting with potential to get more people working, plug skills gaps and grow the economy. But this potential is being squandered by the devastating impact of late payments, careless tax enforcement, and a lack of proactive policymaking catered to the millions of people who work for themselves.

‘At this election, the party that fully embraces the self-employed stands to gain their support. The proposals in our manifesto offers the parties the chance to do just that.’

HMRC is warning people to be wary of bogus tax refund offers following the self assessment deadline on 31 January.

The tax authority says that fraudsters could set their sights on self assessment taxpayers, with more than 11.5 million submitting a tax return by last month’s deadline.

HMRC warns that taxpayers who completed their tax return for the 2022/23 tax year by the 31 January deadline might be taken in by an email, phone call or text message offering a tax rebate.

These phishing scams are designed to use personal details for selling on to criminals, or to access people’s bank accounts, says HMRC.

The warning comes after HMRC responded to 207,800 referrals from the public of suspicious contact in the past year to January. This is a 14% increase from the 181,873 reported for the previous 12 months. More than 79,000 of those referrals offered bogus tax rebates.

Kelly Paterson, HMRC’s Chief Security Officer, said:

‘With the deadline for tax returns behind us, criminals will now try to trick people with fake offers of tax rebates.

‘Scammers will attempt to dupe people by email, phone or texts that mimic government messages to make them appear authentic.’

HMRC has published guidance on the Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) requirements for sole traders and landlords.

MTD for ITSA will require businesses and landlords with qualifying income to maintain digital records and update HMRC each quarter via compatible software.

In the guidance, HMRC stated that MTD for ITSA will be introduced in two phases:

• from April 2026 for those with qualifying income over £50,000

• from April 2027 for those with qualifying income over £30,000.

HMRC said that MTD will exploit ‘the opportunities offered by digitalisation to make it easier for everyone to get tax right’.

It said that digitalising government tax services helps to reduce the risk of unintentional customer errors; saves taxpayers time when they submit their tax returns; supports wider productivity and less time managing paperwork; and enables HMRC to better tailor its services to its customers.

In its latest guidance, HMRC estimates an average transitional cost of £115 for businesses mandated to use MTD for ITSA. Businesses within the £30,000 to £50,000 threshold are estimated to incur an average cost of £350 while those above £50,000 may incur an average cost of £285.

The government should raise the turnover threshold for VAT from £85,000 to £100,000, according to the Federation of Small Businesses (FSB).

The business group said that this would give firms stepping into the VAT-paying ring crucial breathing space. It would also be an incentive to grow their turnover without fear of having to charge customers an extra 20% overnight, the FSB added.

The FSB also suggested bringing in a smoothing mechanism to ease the transition for small firms, owner-managed companies and some of the self-employed who go just over the threshold.

At the moment, thousands of small firms keep their turnover just below the £85,000 threshold, according to the Office for Budget Responsibility (OBR).

The OBR said that hundreds of millions of pounds of potential economic activity could be lost due to this ‘bunching’ just below the threshold.

Tina McKenzie, FSB’s Policy Chair, said:

‘VAT compliance flattens small firms by stifling their growth and emptying their coffers. It’s crying out for a modern makeover to match today’s economic landscape.

‘We can’t let it squash the ambitions of small businesses, strivers, and budding entrepreneurs.

‘The flaws in our current system are glaringly obvious. We are at a breaking point – a drastic overhaul of VAT is needed.

‘Raising the threshold to reflect inflation, introducing a buffer to soften the blow for those just over the limit and demystifying the rules to save small business owners from a VAT-induced headache could unlock hundreds of millions in extra economic activity.’

As the use of cryptoassets continues to grow HMRC is warning people to check if they need to complete a self assessment tax return for the 2022/23 tax year to avoid potential penalties.

Anyone with cryptoassets should declare any income or gains above the tax-free allowance on a tax return.

Tax may be due when a person:

• receives cryptoassets from employment, if they are held as part of a trade, or are involved in crypto-related activities that generate an income

• sells or exchanges cryptoassets, including:

o selling cryptoassets for money

O exchanging one type of cryptoasset for another

O using cryptoassets to make purchases

O gifting cryptoassets to another person

O donating cryptoassets to charity.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said:

‘People sometimes forget that information about crypto-related income and gains need to be included in their tax return. Some people affected may not have had to do a tax return before, so it is important people check.’

A large majority of UK business leaders plan to offer employees remote and hybrid working in the long-term, according to the Institute of Directors (IoD).

A survey conducted by the IoD found that 84% of business leaders polled plan to provide office-based staff members with some degree of remote working. The IoD’s survey was conducted between 13 and 30 September 2023 and received 710 responses.

13% of business leaders stated they plan to offer full remote working in the long-term, whilst 18% said they will allow employees to choose how they work.

Alexandra Hall-Chen, Principal Policy Adviser for Employment at the IoD, said:

‘Our research shows that, for a clear majority of businesses, remote and hybrid working are here to stay.

‘Against a backdrop of acute skills and labour shortages in the UK, flexible working is a valuable tool for businesses seeking to attract and retain talented staff.

‘Good flexible working policies can also support groups more likely to fall out of the workforce, such as parents and disabled people, to thrive in the workplace.

‘Anecdotally, we have found that some businesses are moving away from a model marked by full flexibility to a hybrid approach, due to a desire to bring staff together to facilitate innovation and team cohesion, but very few are removing their remote working offer entirely.’

Self assessment taxpayers must be on the lookout for scam texts, emails and phone calls from fraudsters, HMRC was warned.

HMRC has received more than 130,000 reports about tax scams in the past year, with 58,000 of those offering fake tax rebates.

With around 12 million people expected to submit a self assessment tax return for the 2022/23 tax year before the 31 January 2024 deadline, fraudsters will prey on taxpayers by impersonating HMRC.

The scams take different approaches. Some offer a rebate; others tell taxpayers that they need to update their tax details or threaten immediate arrest for tax evasion.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said:

‘HMRC is reminding taxpayers to be wary of approaches by fraudsters in the run up to the self assessment deadline. Criminals are great pretenders who try and dupe people by sending emails, phone calls and texts which mimic government messages to make them appear authentic.

‘Unexpected contacts like these should set alarm bells ringing, so take your time and check HMRC scams advice on GOV.UK.’

The Institute of Directors (IoD) has urged the government to create an industrial strategy to help ‘define specific long-term priorities for the UK economy’.

A survey carried out by the IoD revealed that 88% of its members favour the development of an industrial strategy. Less than 10% of IoD members think economic growth should be generated by market forces.

The survey found that firms want an industrial strategy that focuses on reinforcing the UK’s capabilities as a centre of excellence for Research and Development (R&D) and green investment.

The survey found that 58% of firms believed that the strategy should also focus on the development of skills, and 57% would like it to champion developing infrastructure.

Dr Roger Barker, Director of Policy at the IoD, said:

‘The recent priority for UK government policy has been on regaining economic and financial stability, and in laying the groundwork for the return of economic growth.

‘However, this is not enough to sustain the competitiveness of UK business. Business leaders clearly see the value of a longer-term policy framework which places innovation at its core, and which enables innovations to be commercially exploited in the UK.

‘Experience suggests that UK policymakers are ill-suited to ‘picking winners’, either in terms of companies or sectors.’

Over 200 employers have been named by the government for failing to pay their lowest paid employees the minimum wage.

The 202 employers were found to have failed to pay their workers almost £5 million in a clear breach of the National Minimum Wage (NMW) law, leaving around 63,000 workers out of pocket.

Companies named and shamed range from major high street brands to small businesses and sole traders.

The businesses named have since paid back what they owe to their employees and have also been given financial penalties.

The employers named previously underpaid workers in the following ways:

• 39% of employers deducted pay from workers’ wages

• 39% of employers failed to pay workers correctly for their working time

• 21% of employers paid the incorrect apprenticeship rate.

Minister for Enterprise, Markets and Small Business, Kevin Hollinrake, said:

‘Paying the legal minimum wage is non-negotiable and all businesses, whatever their size, should know better than to short-change hard-working staff.

‘Most businesses do the right thing and look after their employees, but we’re sending a clear message to the minority who ignore the law: pay your staff properly or you’ll face the consequences.’

HMRC is planning to close its self assessment tax helpline for three months over the summer to focus call centre resources on dealing with other problem calls.

All calls to the helpline will be redirected to digital services over the period to give HMRC time to deal with other more urgent phone enquiries.

The helpline will be closed for three months from Monday 12 June until Monday 4 September.

During this time HMRC said it will ‘trial directing self assessment queries from the helpline to the department’s digital services, including its online guidance, digital assistant and webchat’.

HMRC will increase the number of advisers available on webchat, the online service helpline and the extra support team helpline.

Angela MacDonald, Deputy CEO and Second Permanent Secretary at HMRC, said:

‘We continually review our services to see how they can best serve the public and we are taking steps to improve them.’ We are experienced in self assessment matters and dealing with HMRC. Please contact us if you have any queries.

The end of the Energy Bill Relief Scheme (EBRS) on 1 April could threaten the future of hundreds of thousands of small firms, according to research by the Federation of Small Businesses (FSB).

The Energy Bill Discount Scheme (EBDS) offers a far lower level of support for small businesses.

Although market prices have stabilised for those fixing their contracts now or those who are on variable tariffs, businesses that fixed last year will see huge increases as they are locked into a high price before the government’s relief.

A business paying £24,528 per year for energy under the old government support scheme will now pay £82,539 under the new scheme.

The FSB is calling for small firms to be allowed to renegotiate their energy contracts that were fixed last year. It is also calling for additional support for businesses to become more energy efficient.

Tina McKenzie, Policy Chair at the FSB, said:

‘The jump in energy bills on April Fool’s Day won’t be a laughing matter but will be a shock to hundreds of thousands of small businesses, who signed up to fixed contracts when the government discount was guaranteed under EBRS.

‘There’s much that could and should be done rather than leaving small firms high and dry. Allowing the most vulnerable small businesses to renegotiate or ‘blend and extend’ their energy contracts to better reflect lower wholesale energy prices is the least the government and energy suppliers could do.’

The Treasury and the Bank of England (BoE) have suggested that a state-backed ‘digital pound’ is likely to be launched this decade.

Both the Treasury and the Bank said that the public should have access to ‘safe’ digital money that can be used easily.

A central bank digital currency (CBDC) would use similar technology to cryptocurrencies, but the digital pound would be ‘less volatile’, according to the BoE.

Andrew Bailey, Governor of the Bank of England, said:

‘As the world around us and the way we pay for things becomes more digitalised, the case for a digital pound in the future continues to grow. A digital pound would provide a new way to pay, help businesses, maintain trust in money and better protect financial stability.

‘However, there are a number of implications which our technical work will need to carefully consider. This consultation and the further work the Bank will now do will be the foundation for what would be a profound decision for the country on the way we use money.’

A consultation has been launched on how the CBDC would work.