The important and interesting stories you might have missed this month
We hope you enjoy our latest monthly collection of news and announcements that will impact and interest accountants and their clients.
A new financial year is underway and you’ll already be busy on their behalf but we have your back – our accountants hub exists so you’ll have access to the most important and accurate insolvency information whenever you need it.
But you can’t be everywhere and read everything all at once, so we collect the most interesting and important business and insolvency news stories every week along with regular new blogs on a range of relevant topics for you each and every week.
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BoE cuts interest rates
The Bank of England’s Monetary Policy Committee (MPC) voted by a five to four majority to reduce the base interest rate by 0.25 percentage points to 4.25%.
David Bharier, head of research at the British Chambers of Commerce, said the decision would “help absorb some of the shocks that businesses are facing on multiple fronts.
“Many firms, desperate for financial respite, will be keen to see further rate cuts in the months ahead. National insurance hikes, alongside other cost pressures are already having an impact, including increased prices, hiring freezes and reduced investment. BCC has been calling for a tax roadmap to give firms some idea of when pressures will ease.
“On the global front, the announcement of a framework deal between the US and the UK could help improve business and investor confidence. However, the impact of the wider tariff war will still be felt. The next few months are likely to remain volatile and the full impacts of a global trade war are still uncertain. Businesses will be looking to the government to provide stability and avoid any further pain.”
Alec Pybus named new interim Chief Executive for The Insolvency Service
Former Chief Operating Officer Alec Pybus has been named as the new interim Chief Executive of The Insolvency Service.
He replaces Dean Beale who left the business after 30 years to join the Centre for Public Interest Audit as its Executive Director.
Mr Pybus said: “I’m delighted to have been given this opportunity, and I’m looking forward to taking up this new role while a new Chief Executive is recruited.”
Insolvency Service taking on the role of the National Investigation Service
The Department for Business and Trade have announced that they will conclude their existing contract with the National Investigation Service (NATIS) and transfer all existing investigations and casework on Covid-19 Bounce Back Loan fraud to the Insolvency Service instead.
Alec Pybus, Interim Chief Executive of the Insolvency Service, said: “We welcome this decision. The Insolvency Service is well placed to take on these investigations as part of our ongoing and successful work tackling fraudulent use of Covid-19 loans.
“We’re working with our colleagues at DBT and Thurrock Council to deliver a smooth and swift transition of ongoing cases and any potential transfer of staff.”
To date, the Insolvency Service has obtained disqualifications against 2,167 directors; bankruptcy restrictions against 343 individuals and 62 successful criminal convictions in respect of Covid-19 financial support scheme misconduct.
The agency has also helped to secure more than £6 million in compensation related to Covid-19 financial support scheme abuse. They have plans to deliver further enforcement outcomes and financial recoveries in 2025/26.
HMRC closing online forums – moving to email & text
In the move to digital first, HMRC is going to close their agent and individual taxpayer online forums from 30th June 2025 with all subsequent queries being handled via the HMRC website, webchat or on social media channels.
HMRC said: “This decision reflects the increasing popularity of HMRC’s newer, superior digital support channels and a move to modernise and improve the online services they offer.
“The closure of the online forums aligns with our digital channel strategy, prioritising services that are quick and easy to use, allowing agents and customers to self-serve and offering real-time support. It will allow us to redirect resources to support our most popular channels and develop technologies that meet current and future customer needs.”
In a separate but related move, HMRC is going to start communicating with taxpayers and businesses through texts and email updates rather than so many letters.
The overall move to reduce costs and move to digital will save an estimated £50 million a year by 2028/29.
Email and text notifications will only be sent to HMRC app users and alerts will be sent when new documentation or information has been uploaded to the individual’s app by HMRC.
HMRC said: “Like many financial services that customers will already be familiar with using, HMRC is moving towards using a primarily digital-based service, sharing new communications safely and securely in the HMRC app and online.”
Uptake has been strong with 1.7 million people using the app each month.
Letters will continue to be used to communicate with customers but HMRC acknowledges the criticism of the lack of clarity in some letters and use of complex language which some taxpayers can find confusing.
HMRC confirmed it would be simplifying the language in bespoke and generic letters saying: “The government and HMRC will work with the Administrative Burdens Advisory Board (ABAB) to make sure letters are accessible and easy to read.
“This measure will contribute to the government’s commitment to simplifying the tax system and will help provide a better service to taxpayers.”
VAT Road Fuel Charges reduced for Company Cars
Businesses running company cars will see a nearly 6% reduction in HMRC’s rates of road fuel charges on VAT returns for new accounting periods from this month.
The rate of VAT road fuel scale charges are designed to account for private consumption of fuel on business vehicles and the rates are being reduced for the next 12 months through to April 30th 2026.
HMRC confirmed that the “2025/26 road fuel scale charges are lower than the 2024/25 figures, the decrease is due to the lower fuel prices at the time of the revalorisation of the figures this year.”
Businesses must use the new scales from the start of the next prescribed accounting period.
This means that vehicles will see a 5.7% cut from last year’s rates with vehicles with CO2 emissions of 225 or more getting a reduction from £2,454 to £2,314 while the majority of vehicles with CO2 emissions of 120 or less will pay £661, down from £702, while 180 CO2 vehicles will go down to £1,721 from £1,825 for the VAT inclusive consideration for the 12-month prescribed accounting period.
It’s necessary to work out the correct road fuel charge based on the company car’s CO2 emissions and the length of the VAT accounting period – either one, three or 12 months.
The flat rate values apply to one individual, in connection with a specific vehicle, for the relevant accounting period.
Carolyn O’Shea, VAT and indirect tax senior manager said: “The VAT road fuel scale charge calculates VAT due to HMRC on road fuel for vehicles used for both business and private purposes. This method allows you to reclaim input tax on fuel without having to keep detailed records of the split of business and private uses of the vehicle.
“If you purchase fuel solely for business purposes or keep detailed records to apportion the input tax between business and private use, you don’t need to use the fuel scale charge method.
“But it’s important to note that you cannot interchange systems of reporting. If you use the fuel scale charge method, you’ll need to use it for all cars in which fuel is used for business and private journeys. You cannot use the scale charge for some cars, but another method for other cars.
“However you don’t have to apply the fuel scale charge for cars which aren’t available for private use such as pool cars.”
Scottish Chambers of Commerce responds to SNP’s New Programme for Government
The First Minister of Scotland, John Swinney, has set out the SNP Government’s new agenda – outlining several financial commitments aimed at easing cost-of-living pressures and fostering a more supportive business environment in Scotland.
For businesses, the First Minister pledged no further divergence from UK income tax bands or rates before the 2026 Holyrood election, although details on thresholds are yet to be confirmed.
The programme includes plans to boost Scottish Funding Council (SFC) research funding to over £325 million. Further initiatives aim to stimulate economic activity, such as the launch of “InvestScotland” – a single gateway to attract inward investment; an Ecosystem Fund to support start-ups and enhanced export support particularly for women-led firms.
An independent review of the Non-Domestic Rates (NDR) valuation methodology was also announced.
Bruce Cartweight, CEO of Institute of Chartered Accountants of Scotland (ICAS), said: “Despite promises of a radical legislative agenda, yesterday’s Programme for Government offered more rhetoric than results.
“While there were several, welcomed short-term solutions announced, including increasing access to GPs and scrapping the two-child cap – without clear, actionable plans and measurable outcomes, the risk is that these familiar commitments will again fall short of driving real change.
“We would welcome a more strategic approach to drive business growth and investment, and offer clarity on how high-quality public services will be funded over the longer-term.
“The programme is heavy on long-term aspirations, but light on immediate delivery with many of the proposals lacking urgency and clarity – raising more questions than answers. Coordination with the UK government on key announcements around carbon capture, for example, will be crucial.
“While the First Minister’s decision to pledge “no further divergence from the UK on income tax” bands or rates before the election is good news, the real question is whether thresholds will shift, something we’ll need to wait until Scotland’s autumn budget for clarity on. For most people, any tax savings are modest and could easily be cancelled out by rising council tax.”
Dr Liz Cameron CBE, chief executive of the Scottish Chambers of Commerce, said: “The Programme for Government outlines welcome steps in the right direction and signals a more constructive tone towards Scotland’s business community.”
She praised the NDR review and InvestScotland, but expressed disappointment with the “continued direction of travel on skills reform”, urging the government to “work closely with industry to ensure reforms do not compromise the system’s ability to meet workforce needs.”