News & Insights

Managing expenses is a core part of running a business — but understanding which costs are tax deductible is not always straightforward. Mistakes in this area can increase the risk of an enquiry, penalties and unexpected tax bills. Common problem areas include motor and travel costs, entertainment, training and misclassified personal expenses. HMRC has made it clear that mis‑classifying expenses is a major contributor to the small business tax gap, meaning increased focus on taxpayer compliance.

Chancellor Rachel Reeves will deliver her Spring Statement to the House of Commons on 3 March. As ever, Mercia’s experts will be keeping abreast of the speculation ahead of the day.

In an announcement just before Christmas, the government changed its position yet again in relation to Inheritance Tax (IHT) changes for farmers. It is worth noting that although the announcement was couched in terms of farmers, it appears that the changes will affect both farming and business property.

HMRC have published guidance on what to do to disincorporate a company.

At Mercia, we watched the Autumn Budget with great interest, despite the OBR blunder that led to the details being widely leaked before the Chancellor had a chance to address Parliament.

We recently launched your 2026 Training Programme, combining enhanced technical training with bold new content on technology, sustainability and professional skills.