Category: General

Using the 159 helpline

If a call from your bank feels suspicious, just hang up and dial 159 to be connected safely to your bank’s fraud team.

The 159 helpline was launched in September 2021. The helpline is designed to help consumers quickly and safely reconnect with their bank when they receive a suspicious or unexpected call about a financial matter. 159 now works for over 99% of UK retail bank customers, providing an extra layer of protection against phone scams.

If you receive a call that feels off, hang up and dial 159. This short code cannot be spoofed or imitated, unlike many regular phone numbers. It connects you directly to your bank’s fraud team, helping you verify the legitimacy of any request before acting.

The memorable number, with the digits forming a diagonal on the keypad "159", has already been used over 800,000 times since its launch. It works with most major UK banks, including Bank of Scotland, Barclays, First Direct, Halifax, HSBC, Lloyds, NatWest, Royal Bank of Scotland, Santander, Monzo, Starling and Virgin Money.

There are ongoing plans to expand and enhance the service including a proposal for having Ofcom designate 159 as a mandatory “Type A” number, like 999 or 111.

If you receive a call purporting to be from your bank that is concerning, calling 159 is a fast, secure way to protect yourself and your finances.

What is Support for Mortgage Interest?

SMI loans can help pay mortgage interest for those on benefits, but repayment is due when the home is sold.

Support for Mortgage Interest (SMI) is a government-backed loan provided by the Department for Work and Pensions (DWP) designed to assist homeowners receiving certain benefits in covering the interest on their mortgage or home loans. The loan is intended solely to help with interest payments on a qualifying mortgage or home loan, and repayment is typically not required until the property is sold, or ownership is transferred.

Interest on the loan is charged monthly using compound interest which means that the total amount owed will increase over time. Despite this, the SMI loan may still be a more affordable alternative compared to borrowing from banks or credit unions.

Before applying, individuals are advised to assess their financial situation. SMI may not cover the full mortgage payment and so applicants may still need to pay the remaining balance. Those who have missed payments, are managing other debts, or share ownership with someone not included in their benefit claim should seek professional advice prior to applying.

Eligible applicants may borrow against up to £200,000 of their mortgage if they receive working-age benefits, or £100,000 if they are on Pension Credit, this can increase to £200,000 in certain transitional cases. For joint mortgages, entitlement may be limited. There is no credit check for the SMI loan, so applying will not affect benefits or credit scores.

To apply, individuals must complete an SMI application form. However, it is recommended that they explore all available options first, including discussions with their mortgage lender and support services such as Citizens Advice.

Rules to protect effects of debanking

Banks will have to give 90 days’ notice before closing accounts, giving customers more time to respond.

From April 2026, new government rules will strengthen protections for individuals and small businesses at risk of unfair bank account closures. Under the legislation, banks and payment service providers will be required to give at least 90 days’ written notice before closing an account or terminating a payment service, commonly known as debanking. A significant increase from the previous 2-month limit.

Banks will also be required to provide a clear explanation for the closure, allowing customers to challenge the decision including through the Financial Ombudsman Service. These changes are designed to protect customers, particularly small businesses, who have often found their accounts shut down without notice or reason, leaving them unable to operate or seek alternatives.

The new rules form part of the government’s wider Plan for Change, aimed at delivering economic security and supporting growth. The rules will come into force for relevant new contracts agreed from 28 April 2026 onwards and also apply to the termination of basic personal bank accounts.

There are exceptions in cases where closure is necessary to comply with financial crime laws. Existing protections which prohibit a bank from discriminating against a UK consumer based on political opinions or beliefs remain in place.

Pre-Budget tax planning – act now

With the next UK Budget approaching, there is speculation about changes to tax rates, allowances, and reliefs. Acting now can help secure current benefits before any new rules take effect.

Key areas to review:

• Personal allowances – make sure you are using your Personal Allowance, savings allowance, dividend allowance, and Capital Gains Tax (CGT) exemption. Consider transferring assets between spouses or civil partners to maximise allowances.
• Income or gains – if you expect changes to tax rates, you may benefit from bringing forward dividends, bonuses, or planned asset sales into the current tax year.
• Pension contributions – pensions remain highly tax-efficient. Using your current year’s allowance now can lock in today’s tax relief rates.
• Business investment – review any planned purchases of plant or equipment to take advantage of existing capital allowances.
• Inheritance tax – making gifts now can start the seven-year clock and use current IHT exemptions.

The period before the Budget is a valuable opportunity for tax planning. Contact us as soon as possible to discuss your position and take advantage of existing rules before any changes are announced.

Bank Rate trimmed to 4%

The Bank of England has knocked the main interest rate down to 4% today, cutting it by a quarter‑point from 4.25%. It’s the fifth cut in a year and brings the rate to its lowest since March 2023.

The decision was a close call: the nine‑member Monetary Policy Committee split 5‑4, requiring an unusual second round of voting to reach agreement. Bank governor Andrew Bailey cautioned that future cuts will have to be gradual and careful, especially given expectations that inflation may still hit 4% by September.

This cut offers relief to homeowners with tracker‑rate mortgages, reducing monthly repayments, but savers are likely to see lower returns on easy‑access accounts.

Challenging your Council Tax band

If your property has changed or seems mis-banded, you may have the right to request a Council Tax review.

Properties in England and Wales are assigned Council Tax bands based on their value as of 1 April 1991 (England) or 1 April 2003 (Wales). If you believe your property is incorrectly banded, you may challenge this through the Valuation Office Agency (VOA).

You have a legal right (known as ‘making a proposal’) to challenge if:

• You have paid Council Tax for less than 6 months.
• The VOA changed your band in the last 6 months.
• Your property or local area has undergone significant change (e.g. structural alterations, change of use, or redevelopment).

If you don’t have a legal right, you may still request a band review by submitting evidence such as:

• Sale prices of similar properties around the valuation date.
• Up to five comparable properties in lower bands, matching on type, size, age, and location.

Challenges can be made online, by form, phone, or email. Council Tax payments must continue during the review. VOA decisions may take up to 6 months (legal right) or 12 months (band review). Appeals are permitted only where a legal challenge was made.

If you live in Scotland, then you need to use the Scottish Assessors portal website to check your Council Tax band and if necessary, lodge a claim with them (known as a proposal).

Shared home ownership

Shared home ownership offers a more accessible route to owning a home for those who cannot afford the full deposit or mortgage on a property that suits their needs. Under this scheme, buyers purchase a share of a property, typically between 10% and 75% of its market value and pay rent on the remaining portion to a housing provider.

The initial purchase can be funded through a mortgage or savings, along with a deposit usually ranging from 5% to 10% of the share. Over time, owners have the option to buy additional shares in the property through a process known as "staircasing," reducing the amount of rent paid to the landlord.

Shared ownership lets buyers get on the housing ladder with a smaller deposit and a part-rent, part-buy model.

Shared ownership properties can be new builds or resales and are often available through housing associations or local councils. For individuals with long-term disabilities, adapted homes may also be available through the scheme.

All shared ownership homes are leasehold, and buyers are typically responsible for service charges and ground rent.

Different rules apply in Northern Ireland, Scotland and Wales where alternative schemes, such as Right to Shared Ownership, may apply if you are currently renting.

Shared ownership can help individuals get on the ladder towards full home ownership making it a valuable option to consider.

The impact of frozen personal allowances

The impact of frozen personal allowances often leads to fiscal drag, a situation where individuals pay more tax as their earnings rise without a corresponding increase in allowances.

This occurs because tax thresholds remain fixed while wages increase, thus pushing more people into higher tax brackets or causing them to pay tax for the first time. Since April 2022, a number of key tax thresholds, including personal allowances, have been frozen and will remain so until at least the 2028-29 tax year.

Fiscal drag is largely driven by inflation, wage growth and the government's decision to keep tax thresholds unchanged. As inflation erodes the value of money, wages rise nominally, but without a rise in allowances, taxpayers are increasingly “dragged” into higher tax bands. This increases tax revenue for the government without changing tax rates, which is why HM Treasury often uses frozen thresholds as a means to boost tax receipts.

Adjusting tax thresholds to align with inflation or another index is referred to as "indexation." The government’s approach to increasing certain thresholds each year based on inflation is called "uprating." However, this policy is not consistently applied. When thresholds are frozen, tax revenues increase for HM Treasury without the need for any adjustments in tax rates. According to the latest estimate from the Office for Budget Responsibility (OBR), the freeze on Income Tax thresholds is projected to generate an additional £38 billion annually by 2029-30.

Autumn Budget 2025: What Changes Might Be on the Horizon?

As we look ahead to the Autumn Budget 2025, it is clear that the Chancellor, Rachel Reeves, will be under pressure to balance public expectations with fiscal reality. A combination of reduced growth forecasts, increased borrowing costs, and the reversal of planned welfare savings has narrowed the government’s room for manoeuvre.

Early signals suggest that the upcoming Budget, expected in late October or early November, will avoid headline-grabbing tax rate increases but may rely instead on less visible means of raising revenue.

One of the most likely measures is a further extension of the freeze on Income Tax thresholds. This approach, known as ‘fiscal drag’, increases the tax take without altering rates by pulling more taxpayers into higher bands as earnings rise. For many clients, this could mean a higher overall tax burden despite unchanged tax rates.

We also expect a closer look at Capital Gains Tax (CGT). Recent years have seen CGT receipts fall short of Treasury forecasts. This may prompt a review of CGT rates and allowances, especially for higher earners. Clients who are considering asset disposals may benefit from planning ahead of any potential changes.

Inheritance Tax (IHT) is also under the spotlight, especially following protests in the agricultural sector. Proposals such as tightening asset reliefs or reforming lifetime gifting rules could impact clients with family businesses or larger estates. It may be timely for those affected to review succession plans.

There is also speculation that the Chancellor will examine tax reliefs linked to ISAs and pensions. Any restriction here could affect retirement planning strategies, particularly for those making full use of current allowances.

While a rise in corporation tax has been played down, the Chancellor may still consider smaller adjustments to employer National Insurance or sector-specific tax reliefs. Departmental spending cuts and changes to benefit entitlements may also be used to help bridge the fiscal gap.

In summary, the Autumn Budget 2025 is expected to raise between £10 and £15 billion through a range of threshold freezes and targeted tax relief reforms. Now is a good time for clients to review their tax and financial plans. We are here to support you in preparing for the changes ahead.

Please contact us if you would like to arrange a review of your personal or business tax position in advance of the Budget.

Tax gap estimated at 5.3% for 2023-24

HMRC missed out on £46.8bn in tax last year. Small businesses and Corporation Tax make up the biggest share of the shortfall.

The tax gap for the 2023-24 tax year has been published and is estimated to be 5.3% of total theoretical tax liabilities.

The tax gap is basically the difference between the amount of tax that should have been paid to HMRC and the amount of tax collected by the Exchequer. The gap includes tax that has been avoided in the UK’s black economy, by criminal activities, through tax avoidance and evasion. However, it also includes simple errors made by taxpayers in calculating the tax they owe as well as outstanding tax due from businesses that have become insolvent. 

In monetary terms, the tax gap is equivalent to lost tax of £46.8 billion. This means that HMRC collected £829.2 billion or 94.7% of all tax due.

The government has announced plans to raise a further £7.5 billion through its measures to close the tax gap.

Some of the key findings from this year’s calculations show:

• Small businesses represent the largest proportion of the tax gap (60%).
• Corporation Tax accounts for 40% of the total tax gap.
• Failure to take reasonable care (31%), error (15%) and evasion (14%) are among the main behavioural reasons for the overall tax gap.

As announced at Spending Review 2025, £1.7 billion will be provided to HMRC over four years to fund an additional 5,500 compliance and 2,400 debt management staff in order to try and ensure that more of the tax due is paid, to fund public services.