CHARTERED ACCOUNTANTS (ICAEW)

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Check your business rates are not too high

Check your business rates are not too highBusiness rates, rather than council tax, are charged on most non-domestic properties, such as shops, offices, warehouses, pubs, factories, guest houses and holiday lets. Business rates are based on the rateable value of the property. There are various reliefs that may be available to reduce the bill.The properties are revalued regularly to reflect changes in the property market. The most recent revaluation came into effect this year, taking effect from 1...

Paper version of capital gains tax on UK property return

Paper version of capital gains tax on UK property returnWhere an individual realises a chargeable gain on the disposal of a UK residential property, they must report the gain to HMRC within 60 days of completion and make a payment of the capital gains tax due within the same window.In most cases, the gain will be reported online – taxpayers will need to create a Capital Gains Tax on UK Property Account if they do not already have one.However, in response to feedback received, HMRC made a paper...

Tax and influencers

Tax and influencersEarlier this year, HMRC sent ‘nudge’ letters to social influencers who they suspect may not have declared the tax that they owe. They have also cracked down on gifts provided to influencers in return for promoting brands.Social media influencers and content creators, including those running blogs, may receive payments in cash. This may be in the form of sponsorship. They may also receive gifts in return for promoting a band. Many are unaware that this counts as income on w...

Beware of diverting dividends to minor children to fund education

Beware of diverting dividends to minor children to fund educationOwners of personal and family companies frequently pay themselves a small salary and extract further profits as dividends. To utilise the unused personal and dividend allowances of other family members, an alphabet share structure (whereby each shareholder has their own class of shares, e.g. A ordinary shares, B ordinary shares, etc.) provides the flexibility to tailor dividend payments to the circumstances of the shareholder.Minor...

Relief for post-cessation expenses

Relief for post-cessation expensesThe end of a business will not necessarily mean that no further expenses are incurred. Where expenses are incurred after the business has ceased, tax relief may be available.Allowable post-cessation expensesAn expense will be an allowable post-cessation expense if:·         the business has ceased; and·         the expense would have been deductible in calculating the trading profi...

Telling HMRC that you have no corporation tax to pay

Telling HMRC that you have no corporation tax to payIf you have a company that is dormant and you have filed your company tax return showing that no tax is due, you may think that there is nothing further you need to do as regards the lack of corporation tax due. Afterall, you have filed a return which shows that you have nothing to pay.However, that may not be the end of the story. You may receive a letter from HMRC reminding you when the corporation tax for the period is due. The letter will a...

Key person insurance – When can you claim a deduction?

Key person insurance – When can you claim a deduction?The profitability or earning capacity of a business may depend on one person or on a small number of people. Where this is the case, the business may be seriously compromised if that person, or one of those persons, falls seriously ill or has an accident. To protect against financial loss should such a situation arise, it is possible to take out a policy insuring against the loss of profits arising from the death, critical illness, sickness...

Should you buy a building for your business?

Should you buy a building for your business?Tired of paying rent for your commercial premises and considering buying a premises for your business?Owning a building works best if your business is well-established, you have money to invest, and you’re taking a long-term approach – it can take many years for this decision to pay for itself.The advantages of owning a commercial propertyYou no longer need to worry about dealing with a landlord. You’re the landlord now, so your lease won’t end...

Are you ready for an enterprise resource planning solution?

Are you ready for an enterprise resource planning solution?As your business scales, the complexity of your systems, data and management information will grow at a similar pace. And if you're using software, apps and systems that are aimed squarely at the small business market, these platforms may begin to creak at the seams a little.This is when moving to an enterprise resource planning (ERP) solution makes a lot of sense.But what is an ERP solution? And how does upgrading to one of the current ...

How can small businesses compete with the big chains?

How can small businesses compete with the big chains?In tough economic times, small businesses can struggle. Big multinational chains often have the scale to undercut local competitors and survive even when times get tough.What can small businesses do to retain and attract customers in a competitive market?Identify your business’s advantagesThink about what your business can offer that a multinational operator cannot. For example, you might have the edge on:Local knowledgeClose relationships w...

Flat Rate vs Hourly for Trade Professionals?

Flat Rate vs Hourly for Trade Professionals?Attention all trade professionals! Do you have your skills & services down pat, but pricing is giving you a headache?Hourly rates might secure every minute worked, but flat rates offer predictability—just watch for undercharging pitfalls. The hybrid method, a dynamic fusion, caters to diverse jobs. However, each has nuances, like client concerns or the pressure of fixed rates.Tailored for your trade, discover which pricing strategy suits your bus...

How to grow your Trade Business

How to grow your Trade BusinessReady to scale your trade business? Imagine it as climbing a challenging peak – your venture starts at the base, and ascending to the summit demands smart strategies. This summary is your roadmap, leading you step by step towards success.Let’s talk about staff. Hiring matters – from apprentices to subcontractors and full-timers, each has perks. Financials are crucial. Understand your cash flow and set optimal rates for sustainable growth.Streamline admin. We ...

5 ways to overcome economic uncertainty

5 ways to overcome economic uncertaintyEconomic uncertainty is an ongoing worry for any business owner.You can control your own financial management, but you don’t have any direct control over the wider macro-economy. And in the first few years of the 2020s, there have certainly been plenty of tricky ups and downs for your business to navigate.Current economic uncertainty stems from a number of factors, including:Fluctuating marketsGeopolitical tensionsPandemic recoveryThe impact of climate ch...

Plain English guide to depreciation

Plain English guide to depreciationGetting to grips with the basics of accounting, financial management and business strategy can be a challenge. To make things easier, we've created a plan-english guide to depreciation and the impact this accounting term can have on your assets, tax, cashflow and company accounts.What is depreciation?Depreciation is an accounting term that you’ll hear us talking about when we run your accounts.In basic terms, depreciation is about allocating the cost of a tan...

What’s an Employee Ownership Trust?

What’s an Employee Ownership Trust?As a business owner, you probably want to leave a lasting legacy behind when you finally get to the end of the journey and decide to exit the business. One way to achieve this is by disposing of all, or part, of the company to an Employee Ownership Trust (EOT).This EOT structure is available to trading companies, or the holding company of a trading group.Apart from ensuring the continuity of your ‘business baby’, there are also some tax advantages of...

What makes you a good entrepreneur?

What makes you a good entrepreneur?Do you dream about starting our own business? And, can anyone become an entrepreneur?When you look at the research, there are certain aptitudes, personality traits and business skills that tend to make you a more successful entrepreneur. But can you learn these skills? Or are these innate abilities that some entrepreneurial people are just born with?Let's take a look at what makes a good entrepreneur.What drives someone to become an entrepreneur?There are upwar...

Back to Tax Basics: How capital allowances reduce your tax bill

Back to Tax Basics: How capital allowances reduce your tax billGenerally speaking, the business expenses you incur are allowable against your profits. But when it comes to fixed asset purchases (things like machinery, equipment or vehicles), these purchases are treated slightly differently.To reduce your tax bill when purchasing fixed assets, it’s important to know what capital allowances are available and how you can use them to enhance your tax planning.In the next part of our Back to Tax Ba...

Plain English guide to cashflow

Plain English guide to cashflowWhy is cashflow so central to good financial management? Here's our plain english guide.What is cashflow?Cashflow refers to the movement of money into and out of your business over a specific period.In the most basic terms, cashflow is the process of cash moving out of the business (cash outflows), and cash coming into the business (cash inflows). The ideal scenario is to be in a ‘positive cashflow position’. This means that your inflows outweigh your outflows ...

5 tips for running good performance reviews

5 tips for running good performance reviewsWhen times get tough, it can be easy to let some of your people processes fall away as you concentrate on the basics of the business.Take the performance review. They can be unpopular, sucking up a lot of time and making employees and managers stressed. So why not skip them?Because good performance reviews work. They’re an effective way to track people's progress, provide feedback, gain insight, support development, and align individual performance wi...

Plain English guide to corporation tax

Plain English guide to corporation taxGetting to grips with the basics of accounting, financial management and business strategy can be a challenge. To make things easier, here is our plain english guide to corporation tax, one of the key business taxes you’ll need to understand as a limited company.What is corporation tax?Corporation tax (CT) is a direct business tax that’s levied on your company’s profits.The CT you pay is based on the company's taxable profits. This will include revenue...

Understanding Your Profit and Loss Statement

Understanding Your Profit and Loss StatementYour profit and loss statement (P&L) helps you understand your business performance and profitability over time. It’s sometimes called an Income statement and its main purpose is to list income and expenditure.Whereas a balance sheet is a snapshot in time, the P&L shows transactions over a specific period of time. This can be a month, quarter, financial year or any other period, and it can be a stand-alone report or a comparative period repor...

Plain English guide to VAT for businesses

Plain English guide to VAT for businesses Getting to grips with the basics of accounting, financial management and business strategy can be a challenge. To make things easier, we’re starting a new Plain English guide to business.This time, we’ll be looking at Value-Added Tax, or VAT as it’s generally known.What is Value-Added Tax (VAT)?Value-added tax (VAT) is a consumption tax. VAT is imposed on the value added at each stage of the production and distribution of many goods and servic...

How running a lean business model improves your cashflow and efficiency

How running a lean business model improves your cashflow and efficiencyKeeping your operational expenses under control, while also remaining efficient and meeting customer demand can be a challenge – one that can catch out many new business owners.This is why running your enterprise using a lean business model is such a good idea. By keeping operations, stock and processes to a minimum, you reduce your outgoings, speed up efficiency and improve your cash position. But how does the lean model w...

It's tough at the top (and that's why you need a business coach)

It's tough at the top (and that's why you need a business coach)Being a business owner can be immensely rewarding. But it's also a highly pressurised and stressful vocation to choose. The business journey can be full of pitfalls and challenges that make it more difficult to meet your goals and turn your enterprise into a success.The good news is that you don't have to travel this road alone. A business coach is your companion on the journey. A coach will help to shoulder some of the load, so you...

HMRC's complaints process

HMRC's complaints processMany taxpayers taxed under self assessment may not be aware that HMRC self assessment phone service was closed for three months, opening on 4 September. HMRC has been piloting a new seasonal model for the self-assessment helpline by directing queries to the department’s digital services. The intention was to enable 350 of HMRC's staff to take urgent calls on other lines and answer outstanding customer correspondence. As such, the only method by which to make contact wa...