Here’s a straightforward overview of the key economic and tax updates that matter to UK business owners this month. No jargon — just the essentials so you can stay ahead and make informed decisions.

1. UK Growth Remains Fragile — Manufacturing Up, Services Stalled

The economy edged up by 0.1% in August, driven entirely by a 0.7% rise in manufacturing, while the much larger services sector stayed flat (page 2).
On a three-month basis, growth sits at 0.3%, but momentum is still weak.

Key points from the report:

• The IFS is highlighting a £22bn gap in public finances.

• Economists expect some form of tax rises or spending cuts to meet borrowing rules.

• The IMF forecasts the UK will have the highest inflation in the G7 in 2025 and 2026, mainly due to energy and utility costs.

• Treasury messaging continues to focus on growth, infrastructure and “cutting red tape.”

If you’re budgeting or scenario-planning for 2025–26, this is worth factoring in.

2. HMRC Launches New R&D Eligibility Checker

HMRC has introduced an online tool to help businesses assess if their project qualifies for R&D tax relief (page 3).
A few important nuances:

• It works like the well-known CEST tool for IR35.

• It’s not mandatory and does not guarantee acceptance.

• You need a “competent professional” involved — someone technically qualified and involved in the project.

• The tool pauses if answers indicate ineligibility and explains why.

• It does not comment on costs or which scheme applies.

This is aimed at first-time claimants, but even experienced companies may find it useful as a sense-check before filing.

3. New Online Service for the High Income Child Benefit Charge

A major shift: taxpayers can now choose to settle the High Income Child Benefit Charge (HICBC) through PAYE rather than self assessment (page 4).

What’s changed:

• Thresholds:

  • Charge starts at £60,000 income

  • Child Benefit fully withdrawn at £80,000

• PAYE taxpayers who only file a return for HICBC can now de-register from self assessment.

• Around 100,000 taxpayers may be contacted by HMRC regarding under-reported liabilities.

• There’s a small risk of duplicate coding adjustments where the change overlaps tax years.

Families can still register for Child Benefit for the NI credits and automatic NI number allocation, even if payments are opted out of.

4. Workcations Are Growing — But Compliance Rules Are Tightening

“Workcations” — working remotely from another country for part of the year — are now increasingly common (page 5).

Key stats from the report:

• 77% of mid-market employers now have an international remote-working policy (up from 59%).

• 99% require approval or restrict overseas working to set parameters.

• Compliance risks (tax filings, social security, permanent establishment) have fallen to 2%, showing much better employer oversight.

If your business is considering allowing staff to work temporarily abroad, you’ll need:

• Clear country lists

• Capped days

• Pre-travel declarations

• A compliance framework

• Payroll and tax checks

Done properly, workcations can support retention without triggering penalties.