Month: January 2025

HM Revenue & Customs is ramping up its scrutiny of “side hustle” earnings, requiring online platforms such as eBay, Vinted and Airbnb to submit information on users’ incomes for 2024 by the end of this month.
However, concerns have been raised that the discrepancy between the UK tax year (April to April) and the OECD’s reporting period (January to December) could lead many casual sellers to make mistakes on their tax returns.
The Low Incomes Tax Reforms Group (LITRG) warns that people might unintentionally provide inaccurate figures to HMRC because the data they receive covers the calendar year, not the tax year. For instance, only earnings from January to March 2024 would be relevant for a self-assessment due this month, yet the total figure submitted by the online platforms spans all 12 months of 2024.
“Just one quarter of the data people will receive is pertinent to the current tax return,” says Meredith McCammond, a technical officer at LITRG. “That could lead to confusion, especially for those filing a return for the first time and needing help during HMRC’s busiest period.”
Under the new guidance, any platform user earning over £1,700 or making 30 transactions in a year will have their information passed to HMRC. While this is not a new tax, it may lead to tax being imposed on individuals who previously were unaware they needed to declare online sales. Dawn Register of accountancy firm BDO comments that, despite incomplete data, HMRC will still have enough information to launch an investigation if a seller’s turnover appears high.
“The new rules may well mean there are some nasty surprises for people who are either ignorant of the existing legislation or haven’t declared their earnings,” Register says. At the same time, HMRC could be surprised by how much some casual sellers actually earn online.
Many casual sellers and “declutterers” will be shielded by the UK’s trading allowance, which lets individuals earn up to £1,000 a year from occasional trading without paying tax. A spokesperson for HMRC emphasised that “absolutely nothing has changed” for people selling unwanted personal items. The new focus is on those conducting consistent trading or making gains on sales.
Miruna Constantin of RSM UK recalls that, when the procedures were introduced last year, public worry spiked: “Chaos ensued when people thought HMRC might suddenly tax all the extra cash they made from selling unwanted Christmas gifts. HMRC has since provided detailed guidance.”
Practical steps for sellers
The new data, scheduled to be reported in quarterly blocks, should help sellers match platform statements more closely to their tax obligations. But for a smooth process, experts advise paying close attention to:
• dates: Figure out which quarter applies to your current self-assessment period (January to March 2024 for the 2023-24 tax year).
• allowances: Remember that the first £1,000 of trading income is generally tax-free, and separate capital gains rules may apply if you are making a profit on the sale of valuable items.
• when in doubt, ask: If you’re unsure, seeking advice from HMRC or a tax professional can help avoid costly errors or investigations.
With this expanded reporting, the government hopes to reduce hidden or accidental non-compliance. However, until sellers feel confident about how and when to apply the numbers from eBay, Vinted, and other platforms, the risk of “nasty surprises” remains.
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New tax checks on side hustles like eBay and Vinted risk confusion over different reporting periods

Britain has “no choice at all” but to engage with China, Rachel Reeves has argued, as she seeks to shore up economic growth against a backdrop of soaring borrowing costs and uneasy financial markets.
The chancellor arrived in Beijing to finalise new trade and investment commitments worth £600 million over five years, the first trip by a UK chancellor to China in over half a decade.
Her visit comes as the UK grapples with stubbornly high inflation and renewed doubts over how quickly the Bank of England can cut interest rates. The yield on 30-year government debt remains at a 27-year high, while the pound has lost ground against the dollar — both unwelcome echoes of last year’s market turmoil.
Reeves reaffirmed her “non-negotiable” fiscal rules, emphasising that economic stability is vital to restoring confidence. The Treasury’s upcoming spending review is already expected to demand efficiency savings of at least 5 per cent across Whitehall, and the spike in debt-servicing costs could see that figure rise further. Reeves has vowed not to repeat the tax hikes of last autumn, though her options have narrowed as inflationary pressures remain persistent.
Paul Johnson, director of the Institute for Fiscal Studies, warned that any breach of the chancellor’s self-imposed borrowing limits would rattle the markets and send yields higher still. That scenario looms larger with the cost of servicing the government’s debt surging and subdued economic growth undermining tax receipts.
To help counter these pressures, the chancellor aims to increase trade and inward investment ties with China. She argues that the UK’s former, more isolationist stance put the country at a disadvantage when France and Germany were expanding their own commercial relationships with Beijing. China is the world’s second-largest economy and the UK’s fourth-largest trading partner, supporting nearly half a million British jobs through exports.
Agreements reached with Vice Premier He Lifeng include further cooperation in areas such as financial services, cross-border investment, climate initiatives, and agriculture. “Choosing not to engage with China is therefore no choice at all,” Reeves said, insisting that relations should remain “respectful and consistent” despite sharp ideological differences.
Investors have become warier of UK assets in recent weeks, spooked by inflation lingering stubbornly above the Bank of England’s 2 per cent target. Markets had anticipated two quarter-point rate cuts this year, trimming the Bank’s key interest rate from 4.75 per cent down to 4.25 per cent. Analysts now question whether the second cut will materialise, a setback for the 1.8 million households on fixed-rate mortgages due to expire in 2025.
That doubt spells trouble for borrowers hoping two-year fixed mortgage rates would drop beneath 4 per cent. Economists at Pantheon Macroeconomics predict that high inflation could persist, lifting price expectations and dampening the Bank’s appetite for monetary easing. But others, including George Buckley of Nomura, believe rising gilt yields themselves will act as a brake on inflation, allowing more cuts over the coming year.
Beyond the UK, uncertainty hangs over the global economy as Donald Trump’s White House transition adds volatility to currency markets. The dollar has benefited from his pledges on corporate tax reform and deregulation, reinforcing a strong greenback at the pound’s expense. Mortgage brokers say any softening in expectations for British rate cuts will prolong elevated mortgage costs, weighing on the housing market and consumer spending.
For the chancellor, the challenge now is to leverage new trade deals abroad without jeopardising her hard line on fiscal discipline at home. With the Treasury acknowledging that further public spending cuts may be inevitable if debt servicing costs keep climbing, Reeves’s mission in Beijing underlines her broader economic strategy: to stabilise markets, foster growth, and forge alliances — even in politically delicate terrain — to keep Britain on a sustainable path.
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Chancellor heads to China in search of growth amid surging borrowing costs

Sara Davies, the Dragons’ Den entrepreneur, is set to regain control of Crafter’s Companion, the craft supply business she founded, through a fast-tracked pre-pack insolvency deal.
The company, which gained international acclaim for its paper craft, art, and sewing products, filed a notice of intention to appoint administrators at the High Court following a fall in sales, mounting debts, and management missteps in its US operations.
Under the proposed restructuring, Davies, 40, will “significantly” increase her shareholding and return to the helm as chief executive, safeguarding about 100 jobs. Exact financial terms remain undisclosed, but her new capital injection is expected to underpin efforts to refocus on specialist paper craft, a niche which first propelled her start-up from a university bedroom in 2006 into a multimillion-pound success story.
Crafter’s Companion had thrived during lockdown, only to face a sharp reversal as inflationary pressures, higher raw material costs, and challenging retail conditions took their toll. A downturn in American sales, including the collapse of a major TV shopping partner, exacerbated losses. Last year, revenues dropped by more than a fifth to £29.9 million, deepening annual losses to £5.1 million.
Despite fresh equity from Growth Partner and new bank facilities with Santander and HSBC last year, the business struggled to remain profitable on a monthly basis. Growth Partner, set up by HomeServe founder Richard Harpin, had been the majority shareholder. Its recent decision to file the notice of intention to appoint administrators paves the way for Davies to buy back key parts of the company’s assets as part of the pre-pack arrangement.
Proponents of pre-pack insolvencies argue that they allow viable businesses to emerge swiftly and preserve employment, while critics contend they can undermine unsecured creditors and write off debt. Davies acknowledged the controversy but insisted it was necessary to return the company to profitability and protect jobs.
The deal is expected to be approved in court this week, after which Davies will focus on “branding and core product strategy”, aiming to recapture the paper craft market where her company first found success. She hopes the streamlined Crafter’s Companion can recover its former momentum and avoid additional layoffs by shedding excessive debt and honing its product range.
Davies, who became a millionaire within a year of graduating from the University of York, stepped back from daily operations over a year ago but retained a minority stake. Best known for her role on BBC’s Dragons’ Den since 2019—when she became the show’s youngest-ever panellist—she has dabbled in presenting, philanthropy, and even Strictly Come Dancing. Now, returning to Crafter’s Companion, she intends to harness her entrepreneurial credentials to restore the business to health and unlock new growth opportunities.
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Dragons’ Den star Sara Davies retakes Crafter’s Companion reins amid pre-pack rescue

Britain’s benchmark borrowing costs have soared to their highest level since the financial crisis, as investors offload government debt amid persistent inflation fears.
The yield on the UK’s 10-year gilt — closely watched as a barometer of future interest payments on public borrowing — reached 4.82 per cent on Wednesday, surpassing the peaks seen in the immediate aftermath of Liz Truss’s 2022 mini-budget.
Yields on the 30-year gilt, which took centre stage during that market turmoil two and a half years ago, climbed to 5.358 per cent on Tuesday — a fresh 27-year high. Bond yields rise as prices fall, underscoring the extent of this latest sell-off.
The pound also weakened, slipping by 1 per cent against the dollar to $1.23 and underperforming many of its peers — a signal that markets remain sceptical about the UK’s fiscal sustainability.
Investors’ enthusiasm for the dollar has continued to build over expectations of corporate tax cuts and regulatory rollbacks under the new US administration. The dollar index, tracking the greenback against six other major currencies, rose by 0.46 per cent on Wednesday and has increased by almost 7 per cent in the past year. Oil prices dipped by more than 1 per cent, bucking the broader inflation trend.
Commentators say multiple factors have made the UK particularly vulnerable to a rise in gilt yields. Britain’s reliance on energy imports has amplified commodity price shocks, while traders — seeing more attractive returns on investment-grade private debt — are demanding a higher premium on UK government bonds. Additional borrowing revealed in October’s budget, combined with the Bank of England’s gradual interest rate cuts this year, have also weighed on gilt prices.
Simon French, chief economist at Panmure Liberum and a Times columnist, noted that “the decoupling of UK long bond yields from their most relevant international benchmark — US long bonds — took place in 2022 [after the mini-budget] and has never really reverted.”
A toxic combination of weakening sterling and rising yields was last observed during Liz Truss’s mini-budget fallout, when markets heavily questioned Britain’s fiscal resilience.
The latest spike in borrowing costs directly impacts government finances by driving up debt servicing costs, eroding the chancellor’s spending headroom. A report by Capital Economics estimates that £8.9 billion of Rachel Reeves’s £9.9 billion fiscal buffer has already been eaten away, raising the likelihood of further tax rises or public spending cuts.
Unless gilt yields settle lower by March, when the Office for Budget Responsibility (OBR) updates its forecasts, Reeves could be forced to rein in Whitehall budgets to balance the government’s books. A Treasury spokesperson reiterated that meeting fiscal rules is “non-negotiable,” although the chancellor has pledged there will be no tax changes at her spring statement on 26 March. That leaves spending cuts as the most probable option if borrowing costs remain elevated.
Jim Reid, an analyst at Deutsche Bank, said the government may be pushed towards further tax hikes if yields stay high, while acknowledging that such moves would face political resistance.
Reeves has already pencilled in a 4.3 per cent increase in departmental expenditure this year and 2.6 per cent for 2025-26. Beyond that, budgets are set to rise by only 1.3 per cent. Any shake-up in spending allocations could alter the upcoming spending review in June.
A Treasury spokesperson said it would not “pre-empt” the OBR’s figures, but emphasised that “no one should be under any doubt of the chancellor’s commitment to economic stability and sound public finances.”
Gilts have been the worst-performing major asset class this week, echoing global bond market jitters in the US, Germany, and France. Yields surged late on Tuesday following data pointing to continued inflationary pressures in the US, driving its 10-year Treasury yields to levels not seen since April 2024. Benjamin Schroeder, senior rates strategist at ING, noted that “bearish US sentiment has strong spillovers to the gilts market.”
The pound has suffered as investors gravitate towards the dollar, which has benefited from uncertainty around Donald Trump’s trade policy, including provocations about the Panama Canal and Greenland. Markets now expect fewer rate cuts from the Federal Reserve and the Bank of England alike, a scenario that often boosts currencies. However, sterling has failed to follow suit, reflecting the gravity of the UK’s fiscal and inflationary challenges.
Kenneth Broux, currency strategist at Société Générale, warned that market conditions are “primed for a bond tantrum,” with ever-rising supply and unpredictable policies as 2025 unfolds. The concern in Whitehall is that such turbulence could persist, placing Britain’s public finances — and the chancellor’s political position — in an increasingly precarious spot.
Read more:
UK government debt sell-off accelerates as borrowing costs reach post-2008 peak

Emma Watson’s premium gin venture Renais has raised nearly £5 million to speed up its global expansion, building on its reputation for sustainable production and strong international demand.
Co-founded by the Harry Potter star and her brother, Alex Watson, the Dorset-distilled gin uses grapes sourced from the Burgundy region, including a small proportion from the family’s own vineyard in Chablis.
Despite a backdrop of economic and political uncertainty — with Donald Trump’s inauguration and proposed US tariffs on British imports — Alex Watson remains optimistic about Renais’s prospects in the American market. He plans to use the fresh capital injection to “crack a bit more deeply” into the US, where Renais launched last year.
Closer to home, the brand’s expansion into Europe continues apace, with plans to debut in physical stores across Spain and France by the end of the year. Currently available in 11 countries, Renais has distribution agreements in 22 markets and is looking to add Dubai and Canada to its roster over the coming months.
Funding has come courtesy of InvestBev, a US-based private equity firm specialising in drinks, and Jean-Sébastien Robicquet, the founder of French spirits group Maison Villevert. Renais has also strengthened its leadership with the appointment of Jimmy Weir, former group chief financial officer of Lathwaites, to its board.
Although both Watson siblings co-founded the business in 2023, Alex serves as chief executive while Emma, 34, holds the position of “creative director”. Best known for her role as Hermione Granger in the Harry Potter films, she oversees the brand’s creative vision, including special editions such as limited-edition bottle sleeves, while her brother brings industry expertise from his time at Diageo.
In a bid to position itself as a forward-thinking, eco-conscious spirits producer, Renais incorporates grape skins leftover from the wine-making process into its distillation, uses biodegradable packaging made from mushroom-based materials and operates solar-powered distilleries. These efforts, combined with its premium positioning, come at a cost: Renais retails at £48 a bottle.
Alex Watson remains confident that discerning customers will be willing to pay a premium for a sustainable tipple. “Consumers are happy to pay a little bit more to know that something is produced responsibly and sustainably,” he said.
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Emma Watson’s gin brand nets £5m as Renais plots global expansion

Food price inflation is expected to climb above 4 per cent this year, the British Retail Consortium (BRC) has warned, in a sharp reversal of the recent trend of slowing shop prices.
According to the lobby group’s forecasts, prices at the supermarket tills will surge by an average of 4.2 per cent in the second half of the year.
Helen Dickinson, chief executive of the BRC, attributed the looming price increases to rising employer national insurance contributions, higher national living wage rates, and fresh packaging levies, all of which will leave little scope for retailers to absorb the additional burden. “There is little hope of prices going anywhere but up,” she said, urging the government to ensure that its planned shake-up of business rates does not inflict further costs on shops already under pressure.
The BRC’s alarm comes despite evidence that overall shop prices fell by 1 per cent last month, a faster decline than the 0.6 per cent recorded in November. Non-food items dropped by 2.4 per cent year on year, although the later timing of Black Friday in 2024 compared with the previous year may have distorted the figures by boosting discounting activity.
Dickinson noted that while food inflation appeared to have bottomed out at 1.8 per cent, it is now poised to climb again: “With many price pressures on the horizon, shop price deflation is likely to become a thing of the past.”
The warning coincides with separate analysis from City investment firm Shore Capital, which suggested that government policy will be the main driver of grocery inflation this year, rather than commodity prices or exchange rates. The company pointed to the employer national insurance increase, rising to 15 per cent from 13.8 per cent in April, as a significant blow to supermarkets and major retailers. Tesco, for instance, is forecast to face an extra £250 million in costs.
Between 2022 and 2023, rising food and energy bills sent the UK’s overall inflation rate soaring; food inflation, in particular, peaked at 19.3 per cent in March 2023. A subsequent slowdown in both food and energy costs helped to bring consumer price inflation back into single digits, though it nudged up to 2.6 per cent in November from 2.3 per cent the previous month.
Shore Capital cautioned that any renewed surge in food inflation could undermine the Bank of England’s current trajectory of reducing interest rates, at present standing at 4.75 per cent. Investors had anticipated two or three rate cuts this year, but that prospect could come under threat if supermarket prices start moving significantly higher again.
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Food inflation poised to jump above 4% as levies and wage rises weigh on retailers

Piers Morgan has parted ways with Rupert Murdoch’s media empire in a move set to expand his popular Uncensored show on YouTube, ending months of speculation about his future at News UK.
The outspoken broadcaster will now operate independently, having acquired ownership of his Uncensored brand and its 3.6 million-strong subscriber base.
Morgan, 59, opted not to renew his contract with News UK, where he held a reported £50 million deal covering columns, book rights, and a TalkTV programme. His departure appeared inevitable after he stepped back from his nightly TalkTV show—complaining it was a “straitjacket”—to focus on YouTube broadcasting. The Uncensored channel will now be developed independently, allowing greater flexibility on scheduling and content creation, particularly in the United States and other international markets.
Under a four-year partnership struck through Morgan’s Wake Up Productions, Rupert Murdoch’s company will retain a share of advertising revenue. However, Morgan will run Uncensored outside News UK’s direct oversight, while continuing to write columns for its newspapers and deliver a book to publisher HarperCollins this year.
Explaining his decision, Morgan said: “Owning the brand allows my team and I the freedom to focus exclusively on building Uncensored into a stand-alone business, editorially and commercially, and in time, widening it from just me and my content.”
Morgan’s guest roster has seen high-profile figures such as Donald Trump, Jordan Peterson, Volodymyr Zelensky, Benjamin Netanyahu, and Cristiano Ronaldo debate on Uncensored. He has hinted that Elon Musk could soon join this list. While continuing his combative interview style, Morgan emphasised that YouTube—unlike conventional linear TV—lets him broadcast live discussions at any time to a global audience.
Scott Taunton, head of broadcasting at News UK, said the new model grants Morgan “flexibility to grow his own business by leveraging his position as a true global opinion former” and keeps the two parties commercially linked. Morgan has also signed a deal with US-based Red Seat Ventures to help monetise his brand further through sponsorship and additional revenue streams.
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Piers Morgan quits Murdoch empire to build Uncensored brand independently on YouTube

Kevin O’Leary, famed for his role as “Mr Wonderful” on the American series Shark Tank, has revealed plans to join billionaire Frank McCourt’s consortium in a high-stakes effort to acquire TikTok.
The move comes amid growing pressure on the Chinese-owned video platform, which could be banned in the United States if its parent company ByteDance fails to divest the app by 19 January.
Last spring, President Joe Biden signed into law measures compelling ByteDance to sell off TikTok’s US operations by this month’s deadline or face a ban—removing the app from American app stores and disabling access via web browsers. TikTok has challenged the legislation, arguing it represents censorship and breaches US First Amendment rights. However, supporters of the ban claim the platform poses a potential national security threat by sharing data with Chinese authorities.
McCourt, founder of Project Liberty and executive chairman of McCourt Global, announced in December that he was assembling a group of backers—named the “People’s Bid for TikTok”. Project Liberty’s primary goal is to hand control of users’ data back to the users themselves. According to McCourt, verbal commitments of up to $20 billion have already been pledged for the takeover.
O’Leary told Fox News on Monday that he and McCourt would need to collaborate with President-elect Donald Trump to complete any deal, particularly as Trump has asked the Supreme Court to delay the ban so he can try to salvage the platform. The Supreme Court is scheduled to review the ban on Friday, and Trump will be sworn into office the day after the deadline.
“This isn’t just about buying TikTok’s US assets,” O’Leary said in a statement on X (formerly Twitter). “It’s about something much bigger: protecting the privacy of 170 million American users. It’s about empowering creators and small businesses. And it’s about building a platform that prioritises people over algorithms.”
Neither Project Liberty nor Kevin O’Leary responded to requests for comment on Tuesday.
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Kevin O’leary joins billionaire’s bid to buy TikTok as US ban deadline nears

Taxpayers stand to save both money and headaches in 2025 by committing to better tax practices in the year ahead, according to leading audit, tax and business advisory firm Blick Rothenberg.
Robert Salter, a Director at the firm, notes: “Most people make personal resolutions about health and lifestyle, but your financial health is equally important—and being on top of your taxes plays a significant part.”
With the deadline for the 2023/24 tax return set at 31 January 2025, Salter suggests that anyone who has yet to complete their submission should resolve to do so earlier this year. “It will help you avoid stress and the risk of an HMRC penalty,” he says.
He also points out that taxpayers may be overlooking valuable reliefs, particularly if they pay tax at 40 or 45 per cent. Gift aid contributions can deliver immediate savings when claimed through a self-assessment tax return, and those made during the 2024/25 tax year can still be brought forward for relief in the earlier year if completed before filing.
According to Salter, pension planning can also be a powerful new year pledge. Bonuses paid in February or March could be directed into a pension scheme via an employer contribution rather than taken as cash, potentially reducing the overall tax bill.
For those looking to maximise their state pension, Salter highlights a National Insurance Contributions (NICs) easement which remains available until 5 April 2025. This allows people to fill in any gaps dating back to 2006/07 and could boost future pension payments.
Another resolution could be to review how investments are held, especially for couples where one spouse is a non-taxpayer or lower-rate taxpayer. Transferring assets legally to the lower-rate taxpayer could make the most of personal allowances and potentially reduce the overall tax burden.
Salter finally advises checking your PAYE tax code for 2025/26 to ensure any pension contributions, professional subscriptions or benefits-in-kind are accurately reflected: “That way, you get the right tax relief straight away and avoid a shock bill when your return is filed.”
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Make tax-savvy new year’s resolutions to cut stress and save money