Business

As businesses in Melbourne grow, so does their paperwork. Invoices, contracts, employee files, tax documents, and compliance records start to pile up.

Whether you’re in legal, healthcare, finance or construction, having a secure system for managing your business records is not just smart, it’s essential. That’s where reliable records storage services come in.

This guide breaks down why offsite records storage Melbourne solutions are crucial, what to look for in a provider, and how to make the switch from clutter to control.

Why Is Records Storage So Important?

Records contain sensitive data about your operations, clients, finances, and employees. Storing them in-house might seem convenient at first, but it comes with real risks:

Accidental damage from water, fire, or mould
Misplacement or unauthorised access
No formal retention policy or audit trail

Melbourne businesses are subject to Australian data privacy laws and sector-specific compliance requirements. If you’re audited and can’t produce documentation, you may face penalties or reputational damage.

Storing records offsite in a secure facility helps mitigate these risks and ensures you meet your legal obligations.

What Types of Records Should Be Stored Offsite?

Almost any document your business needs to keep long-term can be stored securely offsite. This includes:

Financial records (invoices, tax returns, audits)
Legal contracts and agreements
Employment records and HR files
Superannuation and payroll records
Property, lease and asset documentation
Healthcare and patient files (for medical practices)

Most documents should be kept for five to seven years, depending on Australian legal and taxation rules. Some records, such as those related to capital gains or intellectual property, may need to be stored longer.

What Are the Benefits of Professional Records Storage?

Professional records storage services offer a wide range of benefits, especially when compared to storing documents in your office, basement or storeroom.

Security & Confidentiality

Facilities are equipped with surveillance, restricted access, and fire suppression systems. Documents are tracked, barcoded, and retrieved only by authorised users.

Space Savings

Office space in Melbourne isn’t cheap. Removing bulky archive boxes opens up valuable floor space for more productive use—like team collaboration or client meetings.

Compliance & Audit Preparedness

A good provider will help ensure your records are stored according to Australian standards and are ready for retrieval during audits or reviews.

Disaster Recovery & Continuity

Storing essential records offsite provides redundancy in case of natural disasters or data loss, helping you bounce back faster.

What to Look for in a Records Storage Provider

Not all providers are created equal. When evaluating records storage Melbourne companies, consider the following:

Security Certifications: Look for ISO 27001 or other relevant standards
Location: Local storage ensures faster retrieval when needed
Indexing & Retrieval: Do they offer barcode tracking or a digital portal?
Retention Policy Integration: Can they help enforce your record retention schedule?
Shredding & Destruction: Do they provide secure disposal when retention periods end?

For example, a trusted provider like TIMG offers comprehensive offsite solutions across Melbourne, with strict security, fast retrieval, and compliance support.

Signs It’s Time to Move Your Records Offsite

If you’re unsure whether offsite storage is right for your business, look for these signs:

You’re running out of filing space
Staff are wasting time searching through paper archives
Sensitive files are stored in unlocked or poorly monitored areas
You’re unsure how long to keep certain documents
Your business is expanding and needs scalable storage

These are clear indicators that it’s time to invest in a professional solution.

How Records Storage Works

The process is simpler than most businesses expect:

Assessment – The provider audits your existing storage setup.
Packing & Collection – Documents are packed, barcoded, and transported securely.
Storage – Files are placed in climate-controlled, secure environments.
Access – You can request documents physically or digitally (depending on the service).
Disposal – At the end of retention periods, files are securely shredded or destroyed.

Once set up, it operates like an extension of your business, quietly working in the background, protecting your data and compliance.

Local Advantage: Melbourne-Based Services

Choosing a Melbourne-based provider has key benefits:

Faster pick-up and retrieval times
Local customer support
Familiarity with state-specific record retention laws
Reduced transport costs compared to interstate storage

If you’re looking for a scalable, compliant way to store your files, document storage melbourne providers offer solutions tailored to local business needs.

Final Thoughts

Proper records management is more than just good housekeeping. It’s about protecting your business, staying compliant, and being audit-ready at all times. Offsite records storage Melbourne services make that easier, safer, and more affordable than trying to manage it all in-house.

Whether you’re just starting out or managing a large organisation, partnering with a provider of professional document storage services gives you the confidence to focus on growth, knowing your records are secure, accessible, and fully compliant.

Read more:
Why Records Storage Matters for Melbourne Businesses: Secure, Smart and Compliant Solutions

Building or renovating your dream home should be exciting. But for many Melbourne homeowners, it turns into a stressful and expensive nightmare, hidden contract clauses, surprise costs, endless delays, or unfinished work.

The good news? Most of these problems can be prevented. By hiring building and construction solicitors in Melbourne, you can avoid costly mistakes and protect your biggest investment. Let’s explore the seven most common pitfalls homeowners face, and how building contract solicitors help you steer clear of them.

Signing a One-Sided Building Contract

One of the top questions people search is: “Do I need a solicitor before signing my building contract?”

Absolutely. Most contracts are drafted to protect the builder, not the homeowner. A building contract solicitor in Melbourne will:

Review terms for hidden risks
Ensure payment schedules are fair
Clarify completion deadlines and penalties

Trigger: Imagine signing a contract that allows unlimited “provisional sums.” Weeks later, you’re hit with bills far beyond your budget. A solicitor would have flagged that clause immediately.

Accepting Unclear Payment Terms

Payment disputes are one of the biggest causes of construction conflict. Without legal guidance, you might:

Pay too much upfront
Get billed for incomplete work
Struggle to withhold payment for poor workmanship

Building and construction solicitors help structure contracts with clear, enforceable payment milestones—protecting you from financial risk.

Falling Victim to Surprise Variations

Many homeowners discover halfway through their project that they’re being charged thousands more for “variations.” Some are valid, but many are not.

Building contract solicitors ensure variation clauses are tightly defined, so you’re only paying for genuine changes, not inflated costs or errors.

Unexpected insight: A small variation can snowball into tens of thousands if not properly managed.

Not Acting Quickly When Builders Delay Work

Delays can be devastating. Every extra month often means paying rent elsewhere or covering loan repayments.

Building and construction solicitors in Melbourne can:

Enforce liquidated damages clauses
Challenge unjustified extensions
Push for timely completion

Emotional appeal: Instead of waiting endlessly with no answers, you’ll know your rights and hold your builder accountable.

Overlooking Defects or Poor Workmanship

It’s heartbreaking to move into a new home only to find structural cracks, leaks, or electrical issues.

A building contract solicitor helps by:

Enforcing defect liability periods
Demanding rectification
Pursuing compensation if issues aren’t fixed

Concrete example: One Melbourne homeowner avoided a $50,000 repair bill because their solicitor enforced the builder’s warranty obligations.

Trying to Exit a Bad Contract Alone

Sometimes, the only solution is walking away. But attempting to terminate a building contract without legal advice can expose you to massive penalties.

Building contract solicitors in Melbourne can:

Negotiate contract termination
Limit your financial losses
Help you transition legally to a new builder

Social currency: Having the confidence to exit a bad deal when others feel stuck is empowering—and can save you a fortune.

Waiting Too Long to Seek Legal Help

Perhaps the biggest mistake is waiting until the situation spirals out of control. By then, disputes often escalate into costly litigation.

The reality? Engaging building and construction solicitors early is always cheaper than fixing problems later. Prevention, not reaction, is the smartest strategy.

Why Building Solicitors Are Worth Every Dollar

Hiring a solicitor might feel like an extra expense, but the value far outweighs the cost. Whether it’s stopping unfair charges, enforcing timelines, or protecting your rights, building contract solicitors in Melbourne can literally save you tens of thousands of dollars.

Simple truth: A few hours of legal advice upfront is cheaper than years of stress, disputes, and unexpected bills.

Final Thoughts

From unfair contracts to unfinished work, Melbourne homeowners face countless risks during building projects. The difference between financial disaster and peace of mind often comes down to whether you sought expert advice early on.

If you’re about to sign a contract, worried about a dispute, or simply want to safeguard your build, speak with experienced building and construction solicitors in Melbourne today. Protecting your dream home starts with protecting yourself.

Read more:
7 Costly Mistakes Melbourne Homeowners Avoid by Hiring Building Solicitors

Britain’s private sector is bracing for contraction over the coming quarter as weak confidence, rising costs and fears of another tax raid dominate the outlook for business.

According to the latest monthly survey from the Confederation of British Industry (CBI), bosses expect to cut back on both hiring and investment across every major sector, with the lobby group warning the Chancellor not to pile further pressure on companies in her autumn Budget.

It is now a full year since the CBI last recorded a positive reading for future expectations — underlining the depth of disillusionment in corporate Britain since Labour’s election victory last summer and Chancellor Rachel Reeves’s £40bn package of tax rises announced last October.

The survey, which gathered responses from 877 firms, showed the consumer services sector facing the steepest decline, with retailers, wholesalers, business and professional services, and manufacturing companies also forecasting significant slowdowns.

Firms cite the combined impact of 3.8% inflation in July, higher National Insurance contributions, and an increase in the minimum wage, alongside regulatory pressures such as Angela Rayner’s Employment Rights Bill, which is set for its final reading in the House of Lords this week. The bill, which strengthens workplace rights, has been criticised by business groups for increasing costs and reducing flexibility.

Alpesh Paleja, CBI economist, said: “Firms are already shouldering the cost of the Government’s fiscal decisions. The autumn Budget must not add to that strain with further tax rises that risk undermining investment and growth. If the Government wants to unlock growth, it must cut the cost of doing business, give firms tax certainty, and rethink the Employment Rights Bill.”

Reeves is preparing to deliver her second Budget this autumn amid forecasts of a £50bn hole in the public finances. Economists expect new measures to close the gap, with rumours of further tax increases fuelling unease in boardrooms.

The CBI urged the Treasury to avoid repeating last year’s approach, instead focusing on “smarter deregulation” and cost reductions to boost growth.

The Institute of Directors (IoD) painted a similarly bleak picture in its latest confidence tracker. Although sentiment had improved slightly from last month’s record low, levels remain comparable to those seen during the first Covid lockdown and the fallout from Liz Truss’s ill-fated mini-Budget.

IoD chief economist Anna Leach said leaders planned to restrict pay rises, cut headcount and reduce investment, adding: “Higher costs and rising regulatory risks threaten to undermine ambitions for jobs and growth. Ongoing tax rumours further damage confidence. The Government must present a more coherent and consistent economic plan, focused on easing the cost of doing business.”

A Treasury spokesperson defended Labour’s record, arguing that the government remained pro-business: “We are a pro-business government – 380,000 jobs have been created since the start of this parliament and business confidence is the highest in over ten years, according to a recent Lloyds Bank survey.

“Since the election, we have struck three major trade deals with the EU, US and India, business rates are being reformed and corporation tax is capped at 25%. The tax decisions we took at the Budget last year mean we can deliver on the priorities of the British people, from investing in the NHS to boosting wages and cutting waiting lists.”

With confidence weak across both the CBI and IoD surveys, the Chancellor faces intense pressure to reassure business leaders when she delivers her autumn Budget. The choice for Reeves will be whether to lean on further tax rises to plug the fiscal gap or pivot towards cost-cutting and deregulation to restore growth momentum in the private sector.

Read more:
Private sector set to shrink as CBI warns Reeves against fresh tax raid

Britain’s borrowing costs are rising faster than any other G7 country, with long-term debt yields hitting their highest level in nearly three decades amid investor unease over Labour’s economic strategy.

The yield on 30-year gilts — the return investors demand for lending to the UK government — climbed to 5.64% on Monday, a level not seen since 1998. The surge followed a reshuffle of Sir Keir Starmer’s senior economic team, which brought advocates of wealth taxation into the heart of Downing Street.

The Prime Minister appointed Darren Jones, previously deputy to Chancellor Rachel Reeves, as Chief Secretary to the Treasury. He also drafted in Baroness Shafik, a former deputy governor of the Bank of England, as chief economic adviser. Shafik has previously argued for higher taxes on inheritance, land and property.

Meanwhile, James Murray, the Treasury minister, will replace Jones, while Dan Tomlinson — another Resolution Foundation alumnus — steps in as Exchequer Secretary. Tomlinson has co-authored reports calling wealth “relatively under-taxed” and argued that continuing to raise taxes on earnings while shielding capital is “indefensible”.

The moves come as Reeves faces the challenge of filling a £50bn fiscal gap ahead of her autumn Budget. Analysts say markets are worried that Labour lacks a credible plan to get public finances under control.

Simon French, chief UK economist at Panmure Liberum, said: “The immediate market reaction is not exactly a vote of confidence on these moves. Yields were pushed higher as investors also prepared for the Treasury to issue more debt.”

The rise in UK yields is part of a wider global trend. Donald Trump’s tax-cutting bill in the US and his attacks on Federal Reserve independence have unsettled bond markets, while political instability in France has further fuelled investor caution.

But analysts say the UK’s weak fiscal position has made it especially vulnerable. James Bilson, bond strategist at Schroders, said: “With the very weak starting point of the UK’s fiscal outlook and the lack of detail about how the Government will sustainably address this, we believe the UK is particularly vulnerable. The fundamental solution remains a credible plan to fix poor public finances and reduce inflation. For now, we are not seeing either.”

James Athey, a bond trader at Marlborough, said Britain’s economic problems were “fairly obvious”:

“The government is too big, the tax share of the economy is too big and yet still not big enough to cover expenses. The economy is weak and unproductive. Investors are demanding a higher risk premium at the long end.”

Pressure on Reeves

The spike in borrowing costs comes as Reeves faces mounting criticism over her tax strategy. Last week she brought in Torsten Bell, former head of the Resolution Foundation, to lead Budget preparations. Bell has long called for “radical incrementalism” — gradually rebalancing the tax system towards wealth rather than earnings.

But the rise in yields — which push up the cost of servicing the UK’s £2.7 trillion national debt — has intensified the pressure on Reeves to deliver a Budget that reassures markets while meeting Labour’s spending pledges.

Opposition parties seized on the turmoil. Sir Mel Stride, the shadow chancellor, said: “This reshuffle is like rearranging the deck chairs on the Titanic. With inflation doubled, borrowing soaring, and £40bn in tax hikes already on the table, Labour’s ship is sinking fast.”

The Treasury insists it remains focused on “growing the economy” while keeping taxes for working people “as low as possible”. But with gilt yields at 27-year highs and investors demanding greater risk premiums, the government has little margin for error.

For businesses and households, the stakes are clear: higher borrowing costs for government translate into higher long-term interest rates across the economy — from mortgages to corporate loans. Unless Reeves can convince markets that her Budget will steady the public finances, Britain risks paying a growing price for investor scepticism.

Read more:
UK borrowing costs rise at fastest pace in G7 as bond yields hit 27-year high

While the Conservatives stumble in search of relevance, Nigel Farage’s Reform UK has seized the spotlight as Labour’s true challenger. Forget Kemi Badenoch’s protestations—Keir Starmer’s real battle is against populist fire, not Tory embers.

Let’s be perfectly candid: the serious bits of politics, those that demand formidable talent and intellectual gusto, are beginning to look less like a battle between Labour and the Tories, and more like a punch-up between Sir Keir and Nigel Farage’s Reform. It’s as though our sat-nav of British politics has decided to detour from the predictable “Conservative vs Labour” road and veer dangerously towards “populist clown car vs cautious earnestness”.

According to that stirring Bloomberg opus—let’s call it the canny Adrian Wooldridge dossier—it’s Farage and Reform UK, not whichever Rishi-less rump remains of the Conservatives, who occupy the true mantle of Opposition. And he’s quite right to suggest as much. Labour’s uneasy incumbency doesn’t need a nostalgic Tory defeat so much as it needs something radical—some spark—to truly galvanise. And lo! That spark has arrived in the form of a party that revels in grievance, culture wars, and incendiary sloganeering, wrapped in a Union Jack, and slapped firmly across the headlines.

Now, I’ll confess: I had my doubts. The Tories, apparently toothless though they seem, have had the fare of a timeshare spoon to sage electoral mischief. But the rise of Reform is not a mere fill-in-the-gap phenomenon; it is real opposition. Despite their relative parliamentary modesty, Reform UK have capitalised on summer disquiet and Labour’s taciturn approach to dominating narrative—hardly the mark of a party content with being mere theatre, rather than a serious panto villain.

Let’s not mince words. Labour’s summer motto seems to have been: “If we speak less, we might survive the lighting strike.” Meanwhile, Reform threw itself into our unguarded skies with a barrage of immigration rhetoric, welfare us-against-them framing, and a creeping mastery of the media soundbite  . Populist politics at its, er, most refined.

And yet, forgive me if I bristle when Kemi Badenoch, whispering in between tweets, suggests otherwise. Kemi, dear, pull up a chair. Everyone with a functioning moral compass—and a toe dipped into the latest polling—knows that Reform UK, not your current Conservative ensemble, are Labour’s chief electoral challenge. Polling isn’t speculation; it’s reflection. As The Financial Times and others warn, business leaders are worried Labour might cede political ground unless they reassert themselves swiftly.

There is something deliciously ironic about a party once derided for being a “clown show” now being viewed as the firm bedrock of Opposition. And yet, there it is. Reform’s ascendant narrative means Labour can no longer weaponise nostalgia for the Conservatives. Nor can it lazily allude to “the right-wing” as if it were a hazy abstraction. This isn’t an argument about ideological purity—it’s about electoral reality.

There’s more: Farage’s party has won symbolic victories. A dramatic by-election gain in Runcorn and Helsby overturned a Labour majority that seemed comfortably etched in stone—a mere six-vote margin, mind you, but enough to give boarding-up instructions to Labour HQ. And in local elections, Reform surged ahead, even gaining control of several councils, leaving the Tories gasping for relevance. That’s not just noise—it’s institutional presence.

Now, critics of my little diatribe might argue Reform lacks substance beyond the anguished slogan. They may point to Labour’s campaign for a wealth tax and a more egalitarian metaphorical reframing of national grievances—not to mention the argument, from voices like Polly Toynbee, that reforming electoral systems is Labour’s real legacy in waiting . Or that speaking truth to populism requires elevated ideas rather than shouting back.

Yet the nurse never argues the pain away. When the drizzle turns to rain, you need an umbrella – or in this case, a powerful counter-narrative. And yes, Labour is trying: a cupboard reshuffle here, a communications failure patched there . But it might want to recalibrate from “methodical cautiousness” to “competent ferocity” before Farage has swept Britain into enough local government offices to call himself a shadow Prime Minister.

There’s a final twist in this jolly tale: I suspect Labour might, if all goes disastrously, end up thanking Reform – because nothing sharpens your strategy like an opponent who refuses to be politely ignored, and instead yanks your complacent trousers down in broad daylight.

So Kemi, I recommend you empty your irony-laden snark of “he’s no threat”, toss in the washing machine with some humility, and acknowledge that yes – Farage’s Reform is the real opposition to Starmer, right now. And in politics, real is what matters.

Read more:
Sorry Kemi, but Farage’s Reform is the real opposition to Starmer

The gold price has surged to an all-time high above $3,500 an ounce, extending its winning streak to a sixth consecutive session as investors bet on imminent US interest rate cuts and fretted over political threats to central bank independence.

Spot gold climbed to $3,508.73 in early Tuesday trading before easing back to $3,496.40, still up 0.57%. US gold futures for December delivery advanced 1.4% to $3,564.40 an ounce.

According to the CME FedWatch tool, traders now see an 89.7% chance of a 25-basis-point Federal Reserve rate cut at its September 17 meeting. Lower interest rates reduce the opportunity cost of holding non-yielding assets such as gold, making the metal more attractive to investors.

The rally builds on months of momentum driven by safe-haven demand, as market volatility, inflation pressures, and geopolitical tensions have boosted appetite for bullion.

The latest surge also comes amid heightened concerns over the independence of the Federal Reserve. Christine Lagarde, president of the European Central Bank, warned that US President Donald Trump risked inflicting “very serious” damage on the US and global economy if he moved to sack Fed chairman Jerome Powell or governor Lisa Cook.

Trump has repeatedly clashed with the Fed, demanding deeper rate cuts and questioning its handling of inflation. Analysts say any attempt to remove senior Fed officials would rattle markets further, fuelling demand for safe-haven assets such as gold.

A perfect storm for bullion

Analysts suggest that with interest rates expected to fall, inflation still elevated, and political uncertainty mounting, the conditions are ripe for further gold gains. Some market strategists now predict bullion could test $3,600 an ounce in the coming weeks if the Fed follows through with its rate cut.

For investors and businesses, the latest milestone underscores gold’s continuing role as a hedge against both economic and political instability — at a time when confidence in the global monetary order is being tested.

Read more:
Gold surges past $3,500 an ounce on Fed rate cut bets and US political turmoil

Thousands of UK investors could face unexpected fines and interest charges after HMRC’s online self-assessment system failed to account for last year’s mid-year increase in capital gains tax (CGT).

In her October 2024 budget, Chancellor Rachel Reeves raised CGT rates on most assets, lifting the rate for basic-rate taxpayers from 10% to 18%, and for higher-rate taxpayers from 20% to 24%. The new rates applied from 30 October 2024.

That means liabilities for the 2024–25 tax year depend on when an asset was sold: gains realised before the budget should be taxed at the old rates, and gains after should be taxed at the higher rates.

However, HMRC’s self-assessment platform — finalised before the budget changes were announced — still applies the old rates automatically, leaving taxpayers who rely on it at risk of underpaying.

More than 378,000 people paid CGT in the previous tax year, suggesting tens of thousands could be caught out, particularly those completing their own returns without an accountant.

HMRC has warned that those filing tax returns for 2024–25 should not rely on the system’s automatic calculations and instead use its online CGT calculator. The tax authority has already begun sending “nudge” letters to taxpayers who may have miscalculated their bills.

Andy Gibbs, director of services at TaxAssist Accountants, said: “We have been contacted by several worried individuals who are rightly concerned to receive these nudges. It is unfortunate that HMRC’s systems can’t keep up with the rate of change. It is all too easy for people to pay the wrong rate of tax because the reporting process is not sufficiently robust.”

Errors may not come to light until January 2026, when most 2024–25 returns are filed, according to the Institute of Chartered Accountants in England and Wales (ICAEW). The issue has been compounded by the halving of the annual CGT exemption from £6,000 to £3,000 in April 2024, pulling more first-time taxpayers into the system.

Those who fail to amend their returns risk penalties of up to 30% of tax due if errors are deemed careless, plus late payment interest currently set at 8%.

Advisers warn the changes will be especially confusing for cryptocurrency traders, where high transaction volumes make it difficult to allocate gains to the correct side of the budget date.

Gibbs added: “Most people want to pay the correct amount of tax and do the right thing. But unless HMRC makes its systems more robust, these problems will keep arising whenever rates change mid-year.”

HMRC said it had provided sufficient tools to help taxpayers get it right.

“Self-assessment customers will have everything they need to get their tax right,” a spokesperson said. “Those filing online will be prompted to use our CGT calculator, which takes into account the mid-year rate change and is accompanied by guidance.”

Experts advise anyone selling shares, property or crypto assets in the 2024–25 tax year to double-check calculations and seek professional advice if uncertain.

Read more:
Outdated HMRC system leaves investors at risk of CGT penalties after mid-year rate rise

The UK’s capital gains tax (CGT) system underwent significant changes in October 2024, following the Chancellor Rachel Reeves’ Autumn Budget.

The adjustments affect everyone from casual investors to landlords, entrepreneurs, and those disposing of crypto assets — and, crucially, HMRC’s outdated self-assessment software has not kept up with the mid-year changes.

For anyone filing a 2024–25 return, here is a comprehensive guide to the new rules, the key numbers, and what it means for your finances.

Old vs new CGT rates

Before October 30, 2024, CGT rates were set at relatively modest levels for both basic-rate and higher-rate taxpayers. For assets sold earlier in the 2024–25 tax year, the following rates still apply:

Basic-rate taxpayers: 10% on most gains (18% on residential property).

Higher/additional-rate taxpayers: 20% on most gains (28% on residential property).

After the budget, those rates increased significantly:

Basic-rate taxpayers: 18% on most gains (26% on residential property).

Higher/additional-rate taxpayers: 24% on most gains (30% on residential property).

The result is a much steeper tax bill for anyone realising gains after October 2024. For example, a higher-rate investor who made a £50,000 gain on shares in September 2024 would owe £10,000 in CGT under the old rules. The same gain realised in November would attract £12,000 in tax.

Annual exemption cut in half

Alongside rate rises, the government halved the annual CGT allowance from £6,000 to £3,000 for the 2024–25 tax year.

That means fewer gains can be realised tax-free and many more individuals — particularly those disposing of second homes, buy-to-let properties, or large share portfolios — will now fall into the CGT net.

The cut is especially impactful for first-time CGT payers. According to the Institute of Chartered Accountants in England and Wales (ICAEW), many taxpayers are unfamiliar with the complexity of CGT reporting and may struggle with the timing issues created by the mid-year rate change.

Interest charges and penalties

HMRC applies strict interest and penalty regimes where tax is underpaid or reported incorrectly.

Interest on late CGT payments: 8% (variable, tied to the Bank of England base rate plus a margin). Even a short delay can be costly. For example, a £10,000 underpayment left outstanding for six months could rack up £400 in interest.

Penalties for “careless” errors: Up to 30% of the tax owed. If HMRC considers a taxpayer should have known about the rate change or mis-used the self-assessment system without checking, penalties may apply in addition to interest.

Deliberate errors: Higher penalties (up to 70%) are possible where HMRC believes taxpayers intentionally mis-reported their liabilities.

This is why advisers are warning that anyone filing their own return should be especially vigilant this year.

Why HMRC’s system is causing confusion

The central complication is that HMRC’s self-assessment software was finalised before the October 2024 budget. As a result, it automatically applies the old CGT rates to the entire tax year, even for disposals that should attract the higher rates.

HMRC has issued a separate online calculator to help taxpayers correct their liabilities, but those unaware of the tool may unknowingly file an incorrect return.

Tax specialists report that HMRC is already sending out “nudge letters” to individuals who declared gains after October 30, asking them to amend their returns if the wrong rate has been applied.

Practical examples

Basic-rate investor sells shares in July 2024

Gain: £10,000.

Old rate: 10%.

Tax due: £1,000 (less £3,000 exemption if unused).

Same investor sells in November 2024

Gain: £10,000.

New rate: 18%.

Tax due: £1,800 (less £3,000 exemption).

Higher-rate landlord sells a rental property in September 2024

Gain: £50,000.

Old property rate: 28%.

Tax due: £14,000.

Same landlord sells in December 2024

New property rate: 30%.

Tax due: £15,000.

The timing of a sale within the tax year therefore has a material impact on the final bill.

Crypto and complex assets

The changes are particularly problematic for investors with high-frequency transactions, such as cryptocurrency traders. Identifying which sales fall before or after October 30 requires meticulous record-keeping. Accountants report widespread confusion, with some taxpayers unsure how to apportion gains accurately.

What taxpayers should do

Use HMRC’s CGT calculator rather than relying on the self-assessment system.

Check transaction dates carefully to ensure gains are taxed at the correct rate.

Consider professional advice, especially if gains are complex or involve property, crypto, or large share disposals.

File early to allow time to identify and correct errors before the January 2026 deadline.

The bottom line

The mid-year rate rise has created one of the most confusing CGT reporting seasons in years. With the annual exemption halved, rates higher across the board, and HMRC’s software lagging behind the changes, taxpayers need to take extra care.

Failing to do so could mean hefty penalties and interest charges, even for those who intended to pay the correct amount.

For investors and homeowners, the message is clear: check your dates, double-check your calculations, and don’t rely solely on HMRC’s self-assessment portal.

Read more:
CGT changes at a glance: what investors need to know about the new rules

The Treasury’s top team has been reshaped with the arrival of Torsten Bell and senior colleagues from the influential Resolution Foundation think tank, in a move that has heightened expectations of a radical shift in the UK’s tax system.

Bell, formerly Ed Miliband’s policy director and until recently chief executive of the Resolution Foundation, is now a central figure in Chancellor Rachel Reeves’ preparations for the autumn Budget. His long-standing arguments for taxing wealth more heavily than income are seen as a clear sign that property, inheritance and investment income may soon face higher levies.

The appointment of Dan Tomlinson, a former Treasury official who spent seven years at the Resolution Foundation, has reinforced the perception that wealth taxes will be “hard-wired” into Reeves’ fiscal plans.

Tomlinson has previously argued that it would be “indefensible” not to consider higher wealth taxes, co-authoring a 2021 report with Bell which described Britain’s tax system as structurally biased in favour of wealth over earnings.

“The 2020s will pose big questions for our taxation system,” the report said, highlighting carbon taxes, the relative taxation of gas versus electricity, and the under-taxation of capital compared with labour.

A more recent Resolution Foundation paper, Under Pressure, co-authored by Tomlinson, James Smith and Krishan Shah, concluded: “Higher taxation on wealth and non-employment income are very likely to be part of the answer for governments seeking to cope with fiscal pressures in the 2020s.”

Radical incrementalism

Bell himself has described Britain’s tax code as a “dog’s dinner” and has advocated what he calls “radical incrementalism” — gradual but fundamental reform to shift the burden of taxation away from wages and towards assets.

In his book Great Britain? How We Get Our Future Back, he floated the idea of raising income tax by 5p in the pound in order to scrap employee National Insurance contributions altogether. Such a move would significantly alter incentives in the labour market but would hit landlords and pensioners, who currently do not pay NI.

Bell has also been a vocal supporter of freezing tax thresholds — a policy Reeves is expected to extend in her autumn Budget — which raises revenue by dragging more people into higher tax bands as wages rise.

A Treasury think tank reunion

The Treasury now resembles a mini-Resolution Foundation reunion. Alongside Bell and Tomlinson, the Labour government has tapped into a network of economists linked to the think tank.
• Baroness Shafik, former deputy governor of the Bank of England and now a Starmer adviser, co-chaired a flagship Resolution Foundation report calling for wealth taxes on inheritance, land and property.
• Richard Hughes, chair of the Office for Budget Responsibility, was a research associate at the Foundation between 2019 and 2020. He has advocated for radical borrowing rule reforms and criticised both Conservative and Labour fiscal plans.

This web of connections, stretching from the Treasury to the OBR and beyond, signals a more coordinated effort to reshape Britain’s fiscal framework.

Wealth taxes remain politically contentious. Reeves has pledged not to raise the main rates of income tax, National Insurance or VAT, but faces a £20bn to £40bn fiscal hole which must be filled either through new taxes or spending cuts.

Conservative leader Kemi Badenoch has seized on the issue, warning that targeting wealth risks driving capital overseas. Business groups have also expressed concern that higher taxes on property or investment income could undermine growth at a time when corporate confidence is already fragile.

But supporters argue that taxing accumulated wealth rather than wages is both fairer and more sustainable. Household wealth has risen from three times GDP in the 1980s to nearly eight times GDP today, yet revenues from wealth-related taxes have remained broadly flat as a share of the economy.

With Reeves preparing her second Budget, due this autumn, insiders expect to see measures that nudge the tax system towards wealth. Options reportedly under consideration include:
• Reforming inheritance tax thresholds and reliefs.
• Increasing capital gains tax rates further or aligning them with income tax.
• Expanding council tax reform or introducing a land value tax.
• Extending the freeze on income tax thresholds.

While the Treasury insists it is “committed to keeping taxes for working people as low as possible”, the presence of Bell, Tomlinson and other Resolution Foundation alumni makes a shift towards wealth taxation more likely than ever.

For businesses and investors, the message is clear: the balance of Britain’s tax system is set to change, and the autumn Budget could mark the first step in a fundamental reshaping of how success is taxed.

Read more:
Torsten Bell’s Treasury influence raises likelihood of wealth tax reforms in autumn Budget

HM Revenue & Customs is seeking to recover about £90 million in unpaid taxes from temporary staffing business Challenge Recruitment Group, after the company was rescued from insolvency in an £18 million pre-pack administration deal.

The US workforce platform swipejobs acquired Challenge’s core assets in July, taking over contracts with major UK clients including Tesco, Sainsbury’s and Co-op. Administrators FRP confirmed that the deal paid £4.9m for Challenge’s contracts and £12.7m to secured lenders Close Brothers and Praetura Asset Finance, repaying private funders in full.

By contrast, HMRC and other unsecured creditors are expected to recover only a fraction of what they are owed.

According to FRP’s report, four Challenge group companies in administration owe HMRC around £34m. A further £56m liability sits with TLR White Trading, a company spun out of Challenge in October 2024 to handle payroll and staffing costs. TLR White entered insolvency in April 2025, leaving months of VAT and PAYE unpaid.

The case marks the second time the business has collapsed leaving HMRC with heavy losses. In 2022, when trading as IF Trade Co, the group transferred contracts to Challenge-trg before entering administration with another £34m owed to the exchequer.

Brothers Richard and Thomas Cropper, directors of both IF Trade and Challenge, sold 75% of Challenge to an employee ownership trust in October 2024, nine months before the latest administration. They have since been retained on a six-month consultancy contract by swipejobs.

The affair highlights the practice known as “phoenixism”, where companies are liquidated and re-emerge under new entities, leaving debts — particularly unpaid taxes — behind. HMRC estimates phoenixism accounted for 22% of the £3.8bn in tax losses in 2022–23.

An HMRC spokesperson said: “As the chancellor announced in her spring statement, the government is taking action to improve collaboration between HMRC, Companies House and the Insolvency Service to tackle those using contrived corporate insolvencies and dissolutions — so-called ‘phoenixism’ — to evade tax.”

The revelations come as Chancellor Rachel Reeves faces growing pressure to raise additional revenues in the autumn budget to plug a fiscal gap of up to £40bn. Business groups have warned, however, that piling further tax rises onto firms could dampen investment and growth.

For HMRC, the Challenge case underscores the scale of unpaid tax liabilities being written off in insolvencies — and the urgency of reforms to stop repeat collapses leaving the taxpayer short-changed.

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HMRC chasing £90m in unpaid taxes after staffing firm Challenge rescued from insolvency