Accounting News – Autumn 2025

Business Rates, Compliance Pressures & Preparing for the Autumn Budget

In Q3 2025, there’s growing attention on business rates, tax compliance and what businesses need to do ahead of the next Budget. At A4 Accounting we can guide you through these developments so you aren’t caught by surprise and your accounting supports your planning.

Key Developments to Be Aware Of

• Business Rates Reforms & “Cliff Edges”: The government’s Interim Report on transforming business rates (Sept 2025) includes proposals to ease “cliff edges” in Small Business Rates Relief (SBRR), help with support when opening additional premises, and introduce permanently lower tax rates for retail/hospitality/leisure with rateable values under £500,000 from April 2026. GOV.UK
• Business Rates Surcharge on Larger Properties: There is also concern from large retailers that higher business rates, particularly for premises with rateable values over £500,000, could put many stores at risk. Although these are proposals and under review, if you have or are thinking of having larger business premises, these could affect your overheads. The Guardian
• HMRC Focus on Avoidance, Late Filing, & Penalties: HMRC continues to increase its scrutiny on issues like phoenix companies, mis-classification of business/property income, missing filings or late submissions. With increased penalties and interest for late tax and VAT payments, maintaining accurate records and timely filings is more important than ever. TaxScape

What This Means for Your Business & How to Prepare

1. Review your premises costs
   If you lease or own premises, check your rateable value, whether you’re claiming all eligible reliefs (e.g. SBRR), and track your rates bills monthly. Better accounting support will help you spot an increase, prepare cashflow, and decide whether you may benefit from upcoming reforms.
2. Forecasting & ongoing compliance
   Regular management accounts with clean accounts means you can see when issues might arise—whether it’s missing documents, unpaid VAT, or potential tax liabilities—and address them before HMRC does.
3. Preparing for the Autumn Budget
   The next UK Budget may include further changes to business rates, reliefs, or thresholds. With monthly accounts, you’ll be in a position to simulate the impact of proposed changes (e.g. what if business rates increase, or SBRR is reformed), and decide ahead of time what actions to take.
4. Rental property owners should check rental income versus expenses, review whether any changes in rates or tax reliefs affect them, and ensure that any adjustments are reflected correctly in their accounts.

Practical Steps You Can Take Now

• Make sure your accounts are up to date, especially premises costs, rates, rental income, payroll, and all recurring overheads
• Maintain (or start) monthly management accounts if you’re not already doing so — include forecast columns for rates, tax, and staffing.
• Gather information on your rateable value(s), business rates bills, and any correspondence from your local authority/HMRC about reforms or reliefs.
• Ensure VAT returns, corporation tax returns, and other statutory filings are being tracked in the calendar, with reminders in place.
• This is an area we both specialise and enjoy doing, which means if this is not your thing, and you would prefer to concentrate on other key areas of running your business, then give us a call or drop us an email.

Facing uncertainty with business rates or worried about being on top of compliance? A4 Accounting can help you review your bookkeeping, run monthly management accounts, and prepare your year-end tax accounts so your business is resilient and ready for what’s ahead.