We’re pleased to share three new videos featuring expert insights from across our EMN network, covering key topics that are currently impacting engineering and manufacturing businesses.

Our first session focuses on the Employment Rights Act 2025, with Lauren Bathan from Jackson Hogg outlining the key changes employers need to be aware of. From updates to unfair dismissal rules and statutory sick pay to wider implications for recruitment and management practices, this session offers a clear overview of how businesses can prepare for upcoming legislative changes.

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Our second video Rebecca McColl from Johnston Carmichael explores the evolving landscape of R&D tax credits, including recent reforms and what they mean for claims going forward. The session also introduces the Patent Box regime, highlighting additional opportunities for businesses to benefit from innovation through reduced corporation tax.

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Finally, Colin Donohoe from Lockton Insurance provides an update on the insurance market, highlighting continued softening in 2026 and what this means for premiums, renewals, and potential savings. The discussion offers practical advice on how businesses can approach their insurance strategy and ensure they are getting the best value in the current climate.

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Together, these three conversations provide valuable, practical guidance to help EMN members stay informed, compliant, and competitive in a changing business environment.

The post New EMN Video Series: Key Updates for Engineering & Manufacturing Businesses appeared first on The Engineering & Manufacturing Network.

As the tax year draws to a close, there is still time for company owners to take stock of how they’re paid.

If you run a company, planning now can help you stay compliant while keeping your tax bill as efficient as possible.

Salary, dividends or bonus? Choosing the right balance

For shareholders/directors, decisions around salary vs dividends have always been central to tax planning. How cash is extracted should take in to account the following:

Salary considerations

• Salaries and employer National Insurance Contributions (NICs) are generally deductible for corporation tax, potentially reducing taxable profits.
• Salaries can be set at a level to secure state pension entitlement whilst keeping both employer and employee NICs low.
• Widening gaps between employer and employee NICs, and the increased Employment Allowance, mean salary strategy should considered.

Bonus considerations

• Bonuses are generally deductible for corporation tax, and timing will determine when they are subject to income tax for directors. The tax point for directors can often be before the payment is made to them as there are additional rules that apply to directors but not employees.

Dividend considerations

• Dividends remain free of NICs and are taxed at lower income tax rates. Basic and higher rate (but not additional) dividend tax rates are subject to a 2% rate increase from 6 April 2026 to 10.75% and 35.75% respectively. Therefore, declaring and paying dividends before the end of the tax year could result in income tax savings.
• Dividends are paid from retained profits (post corporation tax), which can result in a higher effective rate of tax across both the company and shareholders.
• For Scottish taxpayers, dividends are taxed at UK rates, unlike salary/bonuses, which are subject to the higher Scottish rates of income tax for Scottish taxpayers.

Trivial benefits

• Directors can take advantage of the £300 annual allowance for non-cash benefits. Providing such rewards are not in recognition of work performed, this can be a way to obtain a ‘perk’ before the tax year end.
• Specific rules apply and care should be taken to remain compliant.

There is still time to review your salary, dividend, bonus, benefits mix before 5 April to ensure company funds can be extracted in the most tax efficient way.

Pension contributions: provision for the future?

Employer/company pension contributions continue to be one of the most tax efficient methods of remunerating directors. There are several advantages:

• Employer contributions attract corporation tax relief and are free of income tax and NICs for directors. Employer contributions must be commercially justifiable (i.e. the total salary and pension package should not exceed a market rate) and be wholly for the purposes of the trade.
• Contributions count towards the £60,000 annual allowance, with carry forward available for unused allowance from the three previous tax years (i.e. 2022/23 to 2024/25).

Consider whether making an employer pension contribution before year-end can support longer-term planning and reduce tax exposure.

Pulling it all together: a year‑end income strategy

A well-structured year-end review for company owners should include:

• Checking the salary, dividend, bonus, benefit mix
• Using pension contributions strategically

A few careful decisions now can make a meaningful difference to your tax position.

How we can help

Our expert Corporate Tax and Private Client Tax teams can help you review your position, run different scenarios and help you put the right strategy in place.

The post Johnston Carmichael: Year end remuneration strategies for company owners appeared first on The Engineering & Manufacturing Network.

Leading UK accountancy and business advisory firm Johnston Carmichael has strengthened its Newcastle office with the appointment of Gemma Gibson as Audit Partner. Gemma joins the firm following continued investment in the North East and the rapid growth of its Newcastle team.

Gemma joins from a Big Four firm, bringing almost 20 years’ experience having progressed from graduate trainee through to Senior Audit Director. During her career, she has led audits for large, complex groups and supported the growth of medium-sized and large private businesses across a broad range of sectors.

In her new role, Gemma will take the lead on audit in Newcastle, signing off audits from the office and playing a key role in new client engagement as the firm continues to expand. She also brings strong cross-sector expertise in property, construction and manufacturing, as well as significant experience working with private equity-backed businesses and organisations operating in the oil and gas sector.

Gemma has supported businesses through a range of transactions, including AIM listings, delistings and acquisitions, giving her valuable insight into the challenges and opportunities facing ambitious businesses across the North East.

Commenting on her appointment, Gemma said: “The whole proposition for the Newcastle office really excited me, and I was genuinely inspired by the experience and enthusiasm within the team. Becoming a Partner at Johnston Carmichael is an opportunity to help lead the business, and with the Newcastle office continuing to thrive, the chance to be part of building something that lasts – and to leave a legacy – really resonated with me. I’m looking forward to working alongside businesses across the region, helping them to grow and succeed.”

Paul Shields, Partner and Head of Johnston Carmichael’s Newcastle office, added: “It’s fantastic to welcome Gemma to the team. Her appointment is a significant milestone for our Newcastle office, as she brings exceptional audit experience, strong leadership credentials and a deep understanding of the regional market. As we continue to build momentum in the North East, Gemma will play a key role in strengthening our offering and supporting our clients’ long-term ambitions.”

Johnston Carmichael’s Newcastle office has seen significant growth over recent months, with the team now comprising 25 people following its office expansion. The investment highlights the firm’s long-term commitment to the North East and to supporting clients across the region.

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Johnston Carmichael’s tax experts have advised that everyone, from working people to pensioners, will contribute following the UK’s Autumn Budget – with businesses bearing the brunt.

Following weeks of speculation, Chancellor Rachel Reeves unveiled her Budget amid further disarray after the Office for Budget Responsibility (OBR) published its report early in error.

The Budget is set to raise almost £26bn and included specific funds for devolved governments, with an additional £370m for the Northern Ireland executive, £505m for the Welsh Government and £820m for the Scottish Government.

 Alex Docherty, Partner and Head of Private Client Tax, said: “The Chancellor said everyone would contribute – and they will.

“The National Minimum Wage is rising, providing a helping hand to the lowest paid, but many other working individuals will pay more income tax as a result of the three-year freeze and at the same time will pay National Insurance Contributions in due course on salary sacrifice pension contributions over £2,000. This also impacts employers – it is suspected that many businesses will lower the amount they pay into retirement funds.”

The introduction of a £2,000 annual cap on relief for pension salary sacrifice represents the second largest revenue raising measure announced in the Autumn Budget. It’s estimated to raise around £4.7bn, second only to the additional revenue generated by the freezing of income tax thresholds out to 2030/31.

Alex questioned growing taxes on business owners seeking to exit their businesses as part of succession planning.

She said: “Even though there were hopes the inheritance tax-free £1m allowance for trading businesses would rise, the changes coming into play for IHT that were announced last year remain largely unchanged, and Employee Ownership Trust relief is being slashed by half; who should owners pass their business on to now and how much will they have to pass on as taxes increase?”

While the pension triple lock has been protected, Alex said that pensioners will also pay their way.

She said: “Those who have retired will pay more tax on their savings and if based in England, could also be hit by the mansion tax if they are sitting on high value properties. We’ll see in January if Scotland will follow suit. The property market is also likely to be disrupted by the 2% increase in property income tax rates from 6 April 2027.

“The Chancellor faced tough choices to balance the books – but it will be tough to get both the working people she promised to protect and businesses behind her Budget.”

Johnston Carmichael’s tax specialists are hosting a webinar on 3 December. Alex Docherty will be joined by John McAuslin, Partner and Head of Corporate Tax and David Ward, Partner and Head of Specialist Taxes, as they delve into the detail behind the headlines.

For additional analysis of the 2025 Autumn Budget, visit our Budget Hub.

The post Johnston Carmichael tax experts count the cost of the UK’s Autumn Budget appeared first on The Engineering & Manufacturing Network.

Leading UK accountancy and business advisory firm Johnston Carmichael has announced the appointment of Glen Small, VAT & Indirect Tax Director at its Newcastle office, as Head of Construction and Property across the firm nationally.

The appointment marks a major milestone for Johnston Carmichael’s growing presence in the North East, with the Newcastle-based director set to lead a multidisciplinary team advising clients in one of the UK’s most vital industries.

In his new role, Glen will lead Johnston Carmichael’s Construction and Property Leadership Team, a group that brings together senior specialists from tax, audit, business advisory, corporate finance and marketing. The team supports clients throughout the full project lifecycle, providing joined-up advice on everything from initial financing and site acquisition to build, sale, or long-term asset management.

Paul Shields, Audit Partner and Head of Johnston Carmichael’s Newcastle office, said: “Glen’s appointment is brilliant recognition of the expertise and leadership we have here in the North East. Glen brings both technical expertise and a hands-on understanding of how construction and property businesses operate. This, combined with a genuine passion for helping clients, makes him an exceptional adviser and a natural choice for this role.

“It’s great to see one of our Newcastle-based directors stepping up to lead a key sector across the firm. It’s a real testament to the strength and capability we’ve built here since opening our office in 2023.”

Reflecting on his appointment, Glen said: “The construction and property sector underpins so much of the UK economy, from housing and education to healthcare and commercial development. It’s an industry that drives investment, creates jobs, and shapes the communities we live in. But it’s also a sector facing increasing financial, regulatory, and legislative pressures. We’re seeing growing demand for strategic VAT and tax advice right across the UK as businesses adapt to new market dynamics and sustainability priorities.

“Having grown up around construction with my dad being a stone restorer, I’ve always had a personal connection to the industry. I’ve seen first-hand how great projects can transform communities. Leading this team is an exciting opportunity to support our clients in delivering those outcomes, while ensuring their businesses are built on solid financial and tax foundations.”

Since launching its Newcastle office, Johnston Carmichael has expanded to a team of 20, with the team advising a broad mix of entrepreneurial and corporate clients across the region’s construction, property and professional services industries.

The post JOHNSTON CARMICHAEL’S NEWCASTLE DIRECTOR STEPS UP TO NATIONAL LEADERSHIP ROLE appeared first on The Engineering & Manufacturing Network.

The government scheme created to simplify business trading between Great Britain and Northern Ireland – the UK Internal Market Scheme (UKIMS) – is now open for businesses to register.

With the full implementation of the UKIMS, businesses across Great Britain (England, Scotland and Wales) and Northern Ireland are adapting to a redefined trading landscape. The scheme, launched in response to the Windsor Framework, aims to streamline the movement of goods from Great Britain to Northern Ireland by reducing unnecessary checks on goods staying within the UK.

What is the UKIMS?

UKIMS replaces the previous UK Trader Scheme (UKTS), providing a new system for businesses to declare goods as ‘not at risk’ of entering the EU Single Market. If your goods are deemed ‘not at risk’, they can benefit from significantly reduced customs formalities and, in many cases, zero tariffs when moved into Northern Ireland.

Who can register?

To benefit, your business must be established in the UK and meet specific criteria, such as supplying goods for final sale or use within Northern Ireland. UKIMS is particularly advantageous for retailers, wholesalers, and manufacturers who trade solely within the UK.

Key benefits for businesses

Reduced administration – UKIMS cuts red tape by simplifying customs procedures and limiting the need for full declarations.

Tariff relief – Goods deemed ‘not at risk’ avoid EU tariffs, potentially delivering major cost savings.

Supply chain certainty – The scheme brings greater predictability to GB-NI trade, supporting planning and investment.

Steps you should take now

1. Check eligibility: Review your supply chains and customer base to ensure your goods qualify as ‘not at risk’.
2. Register for UKIMS: Apply through HMRC’s online portal. You’ll need to provide details about your business operations and intended use of goods in NI.
3. Review compliance requirements: Ensure you maintain proper records and can demonstrate that your goods remain within the UK market.

Looking ahead

UKIMS represents a major opportunity for many GB-based firms to continue trading efficiently with Northern Ireland. However, the scheme also requires businesses to proactively understand their obligations and adapt processes accordingly. With early action and informed compliance, you can turn this regulatory change into a competitive advantage.

For tailored guidance or to assistance with registration reach out to our VAT and Indirect Taxes team.

The post Navigating the UK Internal Market Scheme (UKIMS): What your business needs to know appeared first on The Engineering & Manufacturing Network.

Leading UK accountancy and business advisory firm Johnston Carmichael has strengthened its presence in the North East with the appointment of highly experienced tax specialist, Adrienne Paterson, as Tax Director in its Newcastle office.

Adrienne is one of the region’s most experienced specialists in transaction tax. She began her career at KPMG in the early 1990s, working in corporate tax before moving to EY, and then joining a leading regional firm in 2004. Over the last 15 years, she has focused exclusively on transaction-based work, advising on business sales, acquisitions, reorganisations, mergers, and demergers.

At Johnston Carmichael, Adrienne will work closely with the firm’s established Transaction Tax team to expand its profile and presence in the Newcastle market. She will focus on building relationships with business owners, entrepreneurs, and professional advisers across the North East who are seeking specialist support.

Adrienne said: “Johnston Carmichael has an excellent reputation, both in terms of its technical capability and its culture. What attracted me was the firm’s collaborative ethos, its investment in people, and the depth of tax expertise already here. My focus will be to strengthen our profile in the North East, particularly around Transaction Tax. If a business is looking to sell, restructure or expand, I want Johnston Carmichael to be the first name they think of when it comes to expert tax advice.”

The move reflects the firm’s continued investment in specialist tax services and its long-term commitment to supporting businesses across the region with complex advisory needs.

Suzanne Brownie, Tax Partner at Johnston Carmichael, commented: “Adrienne is a highly capable and likeable expert in Transaction Tax. She prides herself in supporting clients with clear and pragmatic advice – allowing clients to make confident and well-informed decisions.  With a wealth of commercial experience and long-standing relationships across the North East, she is a fantastic addition to strengthen our senior tax team.”

Paul Shields, Head of Johnston Carmichael’s Newcastle office, added: “We’re delighted to welcome Adrienne to the team. She is incredibly well-respected in the North East business community and brings a wealth of experience in a highly specialised area of tax. Her appointment strengthens not only our service offering, but also our leadership in the region. As we continue to grow, we want to ensure that businesses across the North East have access to the very best advisory support, and Adrienne will play a key role in that.”

Earlier this year, Johnston Carmichael was recognised nationally, with its VAT and Transaction Tax teams both shortlisted for the 2025 Tolley’s Taxation Awards. Johnston Carmichael’s VAT team has also recently been announced as a finalist in the ‘Excellence in Tax’ category at this year’s North East Accountancy Awards, which will be taking place on 3^rd July at the Hilton Newcastle Gateshead.

The post JOHNSTON CARMICHAEL WELCOMES LEADING TRANSACTION TAX EXPERT TO NEWCASTLE TEAM appeared first on The Engineering & Manufacturing Network.

Leading UK accountancy and business advisory firm Johnston Carmichael has strengthened its tax offering in the North East with a series of senior tax appointments.

Will Hamilton, Rebecca McColl and Zita Duggan have joined the Newcastle office to further strengthen its specialist tax services, bringing decades of combined experience across corporate tax, innovation tax incentives, and R&D advisory support.

Will joins as a Senior Manager, bringing 24 years’ experience in corporate tax compliance and strategic planning. Rebecca, also a Senior Manager, brings strong expertise in R&D and innovation tax reliefs, while Zita, appointed as Manager, specialises in employee share schemes and tax-efficient remuneration structures.

Since launching its Newcastle office in 2023, Johnston Carmichael has experienced rapid growth, expanding to a team of 18 people and relocating to larger office spaces in both August 2024 and April 2025 to support its future ambitions. The firm now advises a wide range of entrepreneurial businesses, scale-ups and established companies across the North East.

Alex Nicholson, Partner and Head of VAT and Indirect Tax, said: “From day one, our ambition in Newcastle has been to combine technical expertise with a local, hands-on approach to client service. In under two years, we’ve built a fantastic team, and the arrival of Will, Rebecca and Zita marks another exciting step forward.

“Their experience will be vital as we continue to grow and support even more brilliant businesses across the region. It’s fantastic to be able to offer the local market the full suite of tax services from our Newcastle team, with specialists in personal taxation, corporate tax, VAT, innovation taxes, employee incentives, employment tax and global mobility.”

The new hires follow the earlier appointments of Tom Harrison, a highly experienced global mobility specialist, and Chris Hodgson, one of the North East’s leading private client tax directors, advising clients across a range of complex tax matters.

Earlier this year, Johnston Carmichael was recognised nationally, with two of its VAT and Transactional Tax teams shortlisted for the 2025 Tolley’s Taxation Awards, which recognises technical excellence, innovation, and outstanding client service across the sector. The VAT team has also recently been announced as a finalist in the ‘Excellence in Tax’ category at this year’s North East Accountancy Awards, which will be taking place on 3^rd July at the Hilton Newcastle Gateshead.

The post JOHNSTON CARMICHAEL BOOSTS NEWCASTLE TEAM WITH SENIOR TAX HIRES appeared first on The Engineering & Manufacturing Network.

Guidance (here) published by the Home Office updates the Economic Crime and Corporate Transparency Act (ECCTA) by introducing enhanced measures to prevent fraud. Whilst most firms will be aware of how they may be the victim of fraud and have likely implemented controls to mitigate the risk, the updated Act now extends the requirements to prevent fraudulent activity that is intended to benefit the firm or its clients.

The Act increases corporate responsibility, making it easier to hold organisations criminally liable for fraudulent activity if an associated person commits an offence intending to benefit the organisation, either directly or indirectly, such as through gaining an unfair business advantage.
It does not need to be demonstrated that Directors or Senior Managers ordered or knew about the fraud, therefore it is imperative that firms have a strong anti-fraud culture and implement robust controls to mitigate the risk of fraud occurring anywhere in the business. The definition of fraud is very broad and will impact a number of departments in the firm, so firms need to consider the full effect on their business.

Read More

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Working from anywhere: Individual flexibility and corporate risks

The concept of working from anywhere sounds appealing, but it is far from simple in terms of managing compliance obligations. While remote work offers freedom, it also means businesses must navigate a complex web of immigration regulations, labour standards, and corporate risks.

When employees work remotely in foreign jurisdictions, businesses may create a ‘permanent establishment’, triggering corporate registration and tax liabilities. Other considerations include social security, income tax, and payroll regulations, which can vary significantly per country.

Although a ‘work from anywhere’ model is appealing, businesses should invest in up-front professional advice to understand tax compliance requirements arising in the overseas location as often, individual actions can bring about unexpected employer obligations.

Hiring from anywhere: Expanding talent pool, expanding complexity

Hiring from anywhere gives companies access to global talent without requiring physical relocation. However, to do so the employer must navigate the challenges of employment law, payroll tax and reporting requirements in the overseas location.  Overseas labour laws can impact employee benefits, working hours and termination rights unique to those applying in the UK.

Hiring an individual in an overseas territory can also bring about employer obligations such as payroll registration/withholding to account for income tax and social security liabilities.

Conclusion

To navigate these challenges and avoid potential financial/reputational risk exposure, employers should take a pro-active approach to global mobility tax planning. This includes mapping out where employees are working and understanding the tax and legal implications before the fact, by engaging with professional advisers to understand and address compliance risks.

For more advice on global mobility, please do contact me at tom.harrison@jcca.co.uk.

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