Business News England: Key Updates for UK Businesses This Month
Welcome to our latest round-up of business news for our clients. If you would like to discuss how any of these updates may affect you or your business, please do not hesitate to get in touch. Naseems Accountants is here to support you every step of the way.
FSCS Deposit Protection Limit to Rise to £120,000 from December
The Prudential Regulation Authority (PRA) has confirmed that the Financial Services Compensation Scheme (FSCS) deposit protection limit will increase from £85,000 to £120,000 from the start of December.
The updated threshold applies per depositor, per PRA-authorised Bank, building society, or credit union. The PRA has also confirmed that HM Treasury has approved the increase.
This is the first adjustment to the protection limit since 2017 and follows a consultation earlier this year. While the PRA initially proposed raising the limit to £110,000, feedback from respondents and updated inflation data led to a higher final figure.
Temporary High Balances Limit Also Rising
Alongside the core protection increase, the cap for Temporary High Balances (THBs) will rise from £1 million to £1.4 million on 1 December.
THB protection applies to qualifying life events that may temporarily raise a customer’s account balance, such as property transactions, divorce settlements, or insurance claim payouts.
Implications for Your Business
The increased limits will be welcome news for businesses that hold significant cash reserves to support working capital, payroll, and day-to-day expenses.
It is important to remember that the FSCS limit continues to apply ‘per depositor, per PRA-authorised institution’. If your eligible business reserves exceed this limit, you may gain additional protection by spreading funds across multiple authorised institutions.
You should also review whether your banking group operates under a single banking licence. Where multiple brands share one licence, you are only entitled to a single protection limit across all accounts held with those brands.
If you are unsure about your current banking arrangements or how much protection applies, we can help you review your position.
Taking a Wider Look at Cash
For many owner-managed businesses, cash reserves naturally fluctuate throughout the year. If your balances often rise above what is required for day-to-day operations, the increase in the FSCS limit may prompt a broader review of how much cash your business actually needs to hold.
While spreading funds across several banks can increase the level of FSCS protection available, it is also wise to consider whether surplus reserves are helping your business achieve its objectives. A straightforward cash flow review can clarify the amount required for regular expenses, tax obligations, and planned spending over the coming months.
Where cash consistently exceeds this level, you may want to consider:
- Are there investment opportunities that align with your long-term business strategy?
- Would withdrawing excess funds—such as through dividend, support your personal financial goals?
The right decision will depend on your unique business circumstances, tax position, and long-term plans.
If you would like tailored advice or support in determining the appropriate level of reserves for your business, book your free consultation with our team at Naseems Accountants. We are here to help you make informed, confident decisions.
UK Inflation Slows to 3.6% as Energy and Hotel Costs Ease.
UK inflation eased to 3.6% in the year to October, down from 3.8% in September, according to the latest data from the Office for National Statistics (ONS).
Although inflation remains above the Bank of England’s 2% target, this represents the slowest pace of price rises in four months and comes shortly before the Chancellor announces the Autumn Budget.
What is Driving the Latest Change?
The ONS highlighted smaller increases in household energy bills as a key contributor to the slowdown. Although Ofgem increased the energy price cap in October, the 2% rise was significantly lower than the 9.6% increase introduced at the same time last year.
Hotel prices, which typically fall between summer and winter, also dropped more sharply than they did a year ago.
However, not all areas experienced downward pressure. Food inflation increased to 4.9%, up from 4.5% in September. Prices rose for items including:
- Bread
- Meat and fish
- Vegetables
- Chocolate and confectionery
Fruit prices, however, fell slightly.
The Food and Drink Federation noted that price pressures remain linked to ingredient and energy costs, as well as regulatory requirements such as packaging taxes and rising National Insurance contributions.
Position Ahead of the Budget
Chancellor Rachel Reeves responded to the figures by stating that a core aim of the upcoming Budget is to ease cost-of-living pressures. What this will look like in practical terms, however, remains to be seen until the official announcements are made.
Prospects for Interest Rates
Although inflation is still above the Bank of England’s target, the latest figures have strengthened expectations of a potential base rate cut. Some economists believe this could take place at the Monetary Policy Committee’s next meeting on 18 December 2025.
A rate cut could ease borrowing costs for businesses and households, but this will depend on wider economic conditions and the Bank’s inflation outlook.
What This Means for Your Business
Slowing inflation is generally positive for the broader economy, helping to build confidence among consumers and businesses alike. Clients become more willing to commit to projects or spending that was previously put on hold.
If any of your customers have paused work due to uncertainty, this may be a good time to reconnect and reopen discussions.
However, rising costs have not disappeared entirely. The ONS reported that the annual Cost of raw materials continues to increase, meaning that reviewing your expenses and identifying efficiency opportunities remains essential for protecting profitability.
If you would like to understand how the latest inflation figures or the Autumn Budget may impact your business, please get in touch with Naseems Accountants. Our team is here to support you with proactive, tailored advice.
Choosing the Right Accounting System for Your Business
For many sole traders and small business owners, reviewing their accounting systems is something that happens only when circumstances force a change. For example, a large number of sole traders are currently assessing whether their system is compliant with Making Tax Digital for Income Tax.
Even without regulatory pressures, reviewing your accounting system can be highly beneficial. The right software can save you time, reduce errors, and offer clearer insights into your business’s financial position.
Here are some practical points to consider.
1. Identify Your Needs
Begin by thinking about the tasks you or your team handle most often. Is your priority invoicing, logging expenses, monitoring cash flow, or tracking stock or projects?
Some businesses only need simple income and expense tracking. Others may benefit from additional features such as:
- Automatic invoice reminders
- Payment links embedded in invoices
- Job or project costing
Start by listing your everyday tasks—this makes it much easier to assess what a system must be able to do.
2. Consider Cost, but Think in Terms of Value
The cheapest option is not always the best. A low-cost system that slows you down or lacks key features can end up costing more in the long run.
A slightly higher monthly fee may offer much better value if it:
- Saves you time
- Streamlines processes
- Reduces the risk of mistakes
Ease of use also has real value. Clear menus, intuitive screens, and strong customer support can make day-to-day bookkeeping significantly easier.
3. Automation and Integrations
Modern accounting software can automate many routine tasks, including:
- Importing bank transactions
- Sending invoice reminders
- Capturing receipt and invoice details
If you use e-commerce platforms, job management tools, or card payment services, choosing software with integrations can save hours of duplicate data entry.
4. Planning for Growth
If you expect your business to expand, consider whether your chosen system can grow with you. Some entry-level tools are ideal for start-ups but become restrictive once you employ staff, hold stock, or issue more complex invoices.
Selecting a scalable system can help you avoid another upgrade too soon.
5. Plan for the Switch
Changing accounting systems can be disruptive, but many platforms now offer:
- Setup guides
- Data import tools
- Step-by-step support
Switching at the start of a new financial year can make the process even smoother, reducing the need for adjustments.
Choosing the right accounting system is not only about compliance or basic record-keeping, it is an opportunity to streamline operations and gain clearer visibility into your business’s financial health.
If you would like support reviewing your current accounting system or guidance in selecting the best option for your business, please get in touch with Naseems Accountants today. We’re here to help you make the right choice.
CMA Launches Major Consumer Protection Drive on Online Pricing
The Competition and Markets Authority (CMA) has announced a series of actions to improve price transparency and tackle misleading online sales practices. This marks the first significant use of its new powers under the Digital Markets, Competition and Consumers Act 2024 (DMCCA), which came into force earlier this year.
Following a cross-economy review of more than 400 businesses across 19 sectors, the CMA highlighted concerns in 14 sectors, particularly relating to drip pricing and misleading countdown timers.
Focus on Online Pricing Practices
The CMA has opened investigations into eight named businesses over concerns involving:
- A lack of transparency regarding additional fees
- Misleading time-limited offers
- Automatically adding optional charges without consent
The businesses under investigation are: StubHub, viagogo, AA Driving School, BSM Driving School, Gold’s Gym, Wayfair, Appliances Direct and Marks Electrical.
At this stage, the CMA has not concluded whether consumer law has been breached.
These investigations are the first to utilise the CMA’s strengthened powers, which now allow the regulator to determine breaches directly, without recourse to the courts. Where appropriate, the CMA can impose:
- Fines of up to 10% of global turnover
- Compensation orders for affected consumers
Broader Compliance Concerns Across the Economy
Based on its compliance review, the CMA will also issue advisory letters to 100 businesses across consumer-facing sectors, including:
- Travel and transport
- Homeware and furniture
- Fitness and leisure
- Events and ticketing
- Delivery services
- Fashion and online vouchers
These letters encourage businesses to review and update their pricing and sales practices to ensure compliance. The CMA has confirmed it will continue to monitor these businesses and may take further enforcement action where necessary.
New Guidance on Price Transparency
Alongside its enforcement activity, the CMA has published finalised guidance to help businesses meet their obligations under consumer law.
While the DMCCA introduces new requirements, certain forms of drip pricing have been unlawful for many years, including:
- Excluding compulsory charges from the headline price
- Adding unavoidable fees only at checkout
The new guidance clarifies expectations around:
- Transparent pricing
- Presentation of additional fees
- Use of sales claims
- Other online selling practices
Full details can be found in the CMA’s published guidance (link below).
Next Steps
There is no statutory deadline for the CMA to conclude its investigations. Outcomes may include:
- Formal findings of unlawful conduct
- Binding remedies
- Financial penalties
- Closure of cases without action
Given the scale of the CMA’s review and the strength of its new powers, further enforcement activity is expected.
If your business sells products or services online, this is an ideal time to review your pricing structures, checkout processes, and online sales claims to ensure full compliance with the latest guidance.
If you would like support in reviewing your online pricing practices or understanding how the DMCCA affects your business, Naseems Accountants is here to help. Please get in touch for tailored guidance.
See the CMA’s price transparency guidance:
https://www.gov.uk/government/publications/price-transparency-cma209
HMRC Reminds Seasonal Sellers to Check Tax Obligations
As the festive season approaches, HM Revenue & Customs (HMRC) is reminding individuals who earn money from Christmas crafts, seasonal market stalls, or the sale of festive items to review whether they need to report their income for the last tax year.
HMRC’s “Help for Hustlers” campaign aims to raise awareness of when additional income becomes taxable.
While selling unwanted personal items from a household clear-out is generally not taxable, making or selling goods for profit, such as handmade decorations, festive gifts, upcycled furniture or operating a seasonal stall, may create a tax obligation.
What You Need to Know
Anyone who earned more than £1,000 from side hustles in the 2024–2025 tax year must:
- Register for Self Assessment as a sole trader
- File a tax return
- Pay any tax due by 31 January 2026
The £1,000 threshold applies to all trading income combined. For example, someone earning £600 from craft sales and £500 from content creation would need to register, as their total income exceeds the trading allowance.
If you are unsure whether your income is taxable or would like personalised guidance, please get in touch with us. We would be happy to assist you in determining your obligations.
Stop! Think Fraud Campaign Launched
The National Cyber Security Centre (NCSC) has launched a new campaign to help individuals and small businesses stay secure online during the festive season.
With increased online shopping, particularly around Black Frida, the risk of scams rises. Fraudsters often use pressure tactics, such as claiming limited-time offers or low stock levels, to prompt quick decisions. Delivery scams are prevalent at this time of year.
According to the City of London Police, approximately £11.8 million was lost to online shopping fraud between 1 November 2024 and 31 January 2025.
How Can You and Your Staff Stay Safe?
The campaign urges everyone to follow four key steps:
- Check that the retailer is legitimate.
- Secure your critical online accounts by enabling two-step verification where possible.
- Check out and pay securely.
- Beware of delivery scams, always verify unexpected messages by contacting the organisation directly.
To review the full campaign guidance, see:
https://www.ncsc.gov.uk/news/stay-alert-to-holiday-shopping-cyber-scams
Renters’ Rights Act: Three-Stage Implementation Plan Announced
The government has confirmed how the new Renters’ Rights Act will be rolled out, setting out a three-phase implementation plan spanning from May 2026 to the end of the decade.
Phase 1: Initial Reforms from 1 May 2026
The first wave of changes will come into effect on 1 May 2026. These include one of the most significant reforms to tenancy law in decades:
End of Section 21 “No-Fault” Evictions
Landlords will no longer be able to evict tenants without providing a valid reason. In return, landlords will gain stronger, legally enforceable grounds for reclaiming their property — including:
- Intending to move into the property
- Selling the property
- Addressing serious rent arrears
- Tackling anti-social behaviour
New Tenant Protections
From 1 May 2026, tenants will receive several enhanced rights, including:
- The ability to challenge rent increases that are above market rates
- The right to request pets, with landlords unable to refuse unreasonably
New Rules for Landlords
From the same date, it will be illegal for landlords to:
- Increase rent more than once per year
- Request more than one month’s rent in advance
- Run rental bidding wars between prospective tenants
- Discriminate against tenants who receive benefits or who have children
Local councils will oversee these reforms, with penalties for non-compliance reaching:
- Up to £7,000 for standard breaches
- Up to £40,000 for repeat or serious offences
Both tenants and councils will have the power to seek rent repayment orders.
The government has confirmed that guidance for landlords and letting agents will be published ahead of the changes, with councils receiving additional funding to support implementation.
Phase 2: Ombudsman and National Database
Starting in late 2026, the second phase focuses on raising standards and improving dispute resolution in the private rented sector.
Private Landlord Ombudsman
A new ombudsperson service will be introduced, providing tenants with:
- A free, independent avenue for complaints
- Faster resolutions without the need for court involvement
Private Rented Sector Database
A new national database will also be launched, requiring all landlords to register:
- Themselves
- Each rented property they own
The rollout will take place in stages across England.
Phase 3: New Quality and Safety Standards
The final phase will introduce further measures aimed at improving safety and living conditions in rented homes, including:
- The introduction of a Decent Homes Standard for the private rented sector
- Consultation on extending Awaab’s Law to private renting
The government has also previously consulted on requiring all privately rented homes in England and Wales to achieve an EPC rating of C or better by 2030, unless exempt. Further updates will be published when the consultation response is released.
For the official government announcement, see:
https://www.gov.uk/government/news/no-fault-evictions-to-end-by-may-next-year
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