In this week’s Enews, HMRC raises the alarm on Winter Fuel Allowance payments. There are also warnings around the impact of personal guarantees and news on recruitment at UK firms to update you on.
News - 18 July 2025
HMRC warns of Winter Fuel Payment scams
HMRC has issued a warning to be on high alert for scams linked to Winter Fuel Payments after receiving 15,100 reports of bogus activity in June.
Fraudsters have been targeting vulnerable individuals using SMS messages and phishing websites. During June, HMRC took action to remove 4,600 fake websites linked to Winter Fuel Payments.
HMRC is urging individuals to be alert to suspicious communications and to report any suspect phone calls, emails or texts via GOV.UK. HMRC will never contact people by text to claim Winter Fuel Payments or request personal information.
Anyone who is eligible for Winter Fuel Payments will receive the payments automatically without having to make a claim. Any recovery of the payment for pensioners whose total income is over £35,000 will be collected via Pay As You Earn (PAYE) or self assessment, dependent on how the individual pays tax on their income.
Kelly Paterson, HMRC’s Chief Security Officer, said:
‘Don’t be fooled by these attempts by scammers to take your money or access your personal information.
‘Never let yourself be rushed. If someone contacts you saying they’re HMRC, wanting you to urgently transfer money or give personal information, be on your guard. If a phone call, text or email is suspicious or unexpected, don’t give out private information or reply, and don’t download attachments or click on links.
‘I’m urging people to be alert to scams relating to Winter Fuel Payments and to report any suspicious texts, phone calls or emails to HMRC.’
Internet link: HMRC press release
Harsh personal guarantees will chill growth ambitions, warns FSB
Personal guarantees risk holding back the growth the economy needs, the Federation of Small Businesses (FSB) has warned.
Research by the FSB shows that 60% of limited company directors would borrow to grow their business – if they did not have to put hard-earned assets like savings or their houses on the line.
By contrast, only 13% would go ahead if a personal guarantee is required.
The FSB says the practice is now widespread, with 78% of directors who applied for finance being asked for a personal guarantee. Faced with this, a quarter decided not to take up finance at all.
The FSB is now calling on the government to close the Financial Conduct Authority (FCA) loophole that leaves these loans unregulated and unsupervised by banks.
It says that without action, would-be entrepreneurs could be deterred from starting up, with personal risk outweighing ambition and ideas left unrealised.
Tina McKenzie, Policy Chair of the FSB, said:
‘Personal guarantees should never be the default setting – they must be a last resort, used with care and absolutely necessary. If we are serious about building a climate where small firms can thrive and new ideas can take root, we need to rein in their overuse.
‘Otherwise, the speed of small business growth will slow to a snail’s pace at a time we need it the most, and we risk turning away a wealth of entrepreneurial talent.’
Internet link: FSB website
Recruitment static as firms assess NICs impact
Recruitment at UK firms remained static in the second quarter of 2025 as businesses continued to assess the impact of the rise in employer National Insurance contributions (NICs), says the British Chambers of Commerce (BCC).
The BCC’s latest Quarterly Recruitment Outlook (QRO) showed that 55% of firms attempted to recruit in the last three months, broadly similar to the 54% in the first quarter.
Of those firms trying to hire staff, 73% said they experienced difficulties, a slightly improved picture from the previous quarter.
Labour costs remain the biggest cost pressure for businesses, cited by 73% of respondents, the same as in the first quarter of the year.
Jane Gratton, Deputy Director of Public Policy, at the BCC, said:
‘While it is still early days, firms are beginning to sound the alarm on the impact of NICs and other employment costs. There could a big shock coming further down the line.
‘Increased labour costs and persistent skills shortages are making recruitment a significant challenge for SMEs.
‘At the same time, growth and productivity is being stymied by persistent skills shortages, particularly in sectors like transport, logistics and construction.
‘We need urgent action by policymakers to tackle the long running skills crisis. That means a more flexible and responsive training system, better support for people facing barriers to work, and a firm commitment to no further tax hikes on business.’
Internet link: BCC website
