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New Statement of Lawful Purpose Rule Required by Companies House

When you incorporate a company from 4 March 2024, the subscribers (shareholders) will need to confirm they’re forming the company for a lawful purpose. You’ll also need to confirm the company’s intended future activities are lawful on the confirmation statement. Companies House may take action against your company if they receive information that confirms you’re not operating lawfully.They will not accept your documents if these statements have not been confirmed.Existing companies ...

New Requirement to Register an Email Address with Companies House

From 4 March 2024, there will be a new requirement for all companies to give a registered email address to Companies House.Companies House will use this email address to communicate with you about your company, so it's important that you choose an appropriate email address. You can register the same email address for more than one company.You will be able to change your registered email address through their new ‘update a registered email address’ service.Companies will have a duty to mainta...

New Rules for Registered Office Address with Companies House

From 4 March 2024, there will be new rules for registered office addresses which mean companies must have an ‘appropriate address’ as their registered office at all times.An appropriate address is one where:any documents sent to the registered office should be expected to come to the attention of a person acting on behalf of the companyany documents sent to that address can be recorded by an acknowledgement of deliveryThese changes mean you will not be able to use a PO Box as your registered...

Building Resilience in a Small Business

It’s a tough time now for owners of small businesses. Many businesses were forced to close or dramatically scale back during the pandemic and now we are having to deal with the impact of inflation.  Although the last few years have been extremely tough, highs and lows are a normal part of business, and we must learn to ride them out. We do that by building resilience into our business. Resilience is the ability to cope with and recover quickly from difficult situations...

Plug The Gaps in National Insurance Contributions

Time is running out for individuals to top up any gaps in their National Insurance Contributions (NICs) records.If you, or any family members, intend to maximise your future State Pension benefits you should check your national insurance record, before 5 April 2023. (now extended to 5 April 2024.)Currently, voluntary contributions can be made to plug gaps back to April 2006, but this will be curtailed from April.In general, to qualify for the maximum ‘new state pension’ (received by those re...

Christmas Parties

The festive season is almost upon us, so it’s time to look at the tax treatment of providing a staff Christmas party. Many employers provide a Christmas party or lunch for employees. However, without consideration of the tax implications, the event may trigger unwanted tax liabilities for the employer and the employee. This article is a reminder of the rules for the tax year 2022/23. Limited tax exemption  The tax legislation contains a limited exemption for annual parties and functions. ...

New VAT late payment and interest rules introduced

A new penalty and interest regime will be brought in from 1 January 2023 for late filing and late payment of VAT.  From 1 January 2023, a brand-new penalty and interest regime will be rolled out for late filing and late payment of VAT.  In a previous article we looked at the penalties that will apply for the late submission of VAT returns, here we will look at the changes to late-payment penalties and interest. How will the new late-payment penalties work? The new penalties will r...

Points-based regime introduced for late VAT filing

From 1 January 2023, a new late filing and late payment penalty regime will be rolled out for VAT returns.  In this article we will look at the late filing penalty regime and we will cover the late payment penalties in a separate article. What’s changing and when? The new penalties will replace the existing default surcharge rules for VAT periods starting on or after 1 January 2023. The new regime will be points based with the taxpayer receiving a penalty point from HMRC every time a VAT...

Should I Buy an Electric Car Through My Company?

If you are a director considering buying a fully electric car it can be tax efficient to purchase it through your company. With the high cost of fuel at the moment, many drivers are reviewing their options and a fully electric or hybrid car is being considered by many. To encourage the use of fully electric cars (electric range of 130 miles plus) the government has introduced low benefit in kind tax rates and the rate for 2022/23 and 2023/24 is 2%.  The rate is applied to the list price of ...

4 Basic Bookkeeping Tips to Save Time and Money for Your Business

As a small business owner, the likelihood is that bookkeeping isn’t your favourite task. It is, however, extremely important in order to establish a profitable and financially healthy business that will be around for years to come. Compiling accurate financial data allows you to make informed decisions about the future of your business, whether that’s scaling up, cutting costs or identifying potential problems before they do any real damage. Bookkeeping may feel like a headache sometimes, bu...

Six Steps for Creating an Effective Business Budget

Every business owner must know where the money in their business comes from and where it goes.  That’s why financial management is one of the most important things to keep in mind. What is a business budget?  Simply put, it's a financial plan that gives a company relevant information on revenue, expenditure, and capital. Business owners also use them as guides to forecast earnings and expenditures and to keep them on track to meet their financial goals. If you want an accurate budget...

How to to Improve Your Finances Through Debt Consolidation

Managing different debts can be an arduous task for even the most capable business owners. Consolidating them into a single account can save interest and improve your credit score in the long run. Even successful companies go into debt for a variety of reasons, including playing it safe by risking other people’s money rather than their own. But if your company is to end up with multiple debt accounts, debt consolidation can be the saving grace. Some startup owners might be wary of debt consoli...

5 Personal Finance Tactics You Can (And Should) Apply to Your Business

There’s no denying the importance of separating your personal and business finances. Although the two are very different, there are some common personal finance rules that you should apply to your business accounts. Let’s take a look at the personal finance tactics that can help set your small business up for financial success. 1 .Set a Budget Budgeting is no-one’s favourite task but budgets are necessary to prevent overspending and correctly allocate resources. Even if you don’t maintai...

Why You Need an Accountant for Your Small Business in 2022

In the early days of a small business, the owner often does everything from bookkeeping and accounting to marketing and sales. However, as the company grows, it becomes more complex and it's no longer possible for the owner to do everything. At some point, most small businesses need to bring on an accountant to help with financial planning and tax preparation. Here are four reasons why you'll need an accountant for your small business in 2022. 1. Creating a Business Plan As a business owner, you...

5 Easy Yet Effective Tips for Small Business Growth

When you’re planning to grow your small business, it’s always best to be proactive. As your business grows, there are things that will inevitably break or bend. The secret to sustainable growth is anticipating and preparing for this so that you can chart a steady roadmap to growth and keep your business crisis-free as you expand. 1. Invest in Systems When your business is small, you don’t need such robust systems in place but when anticipating growth, it’s of vital importance that you in...

8 Warning Signs Your Business is Stagnating

It’s important to keep your business alive and flourishing, but the truth is that most businesses experience stagnation at one point or another. Business owners need to be able to spot the warning signs of stagnation so that they can take action and get the numbers moving in the right direction again.  The first step to solving a problem is admitting you have one, so let's discuss the warning signs that your business has stagnated. You No Longer Have a Clear Vision When you first started ...

Why You Should Stop Competing on Price - and How To Do It

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4 Key Actions That Helped Small Businesses Survive the Pandemic

The pandemic has been a difficult time for businesses of all sizes. However, some small businesses have fared better than others, largely due to their resilience and ability to adapt quickly. In this blog post, we will discuss four key actions that have helped small businesses survive the pandemic and how you can apply these lessons to a future crisis. 1 - A Clear USP One of the most important things that small businesses have going for them is a clear unique selling proposition (USP). This mean...

4 Healthy Financial Habits to Conserve Cash in Your Small Business

In order to keep your small business running smoothly, it is important to develop healthy financial habits. This means being conscious of how you spend your money and conserving cash wherever possible. In this blog post, we will discuss four healthy financial habits that can help you conserve cash in your small business. Let's dive into how you can build habits and create a more sustainable small business. 1 - Set Financial Goals In order to conserve cash in your small business, you need to get ...

7 Accounting Terms Every Small Business Owner Needs to Know

There’s a lot to think about when starting a small business and learning basic accounting terms may not be a top priority. However, it is incredibly important to familiarise yourself with accounting basics in order to get a grip on your finances and build a thriving business. Even if you outsource your accounting, it’s important that you can talk openly with your accountant and understand the advice they are giving you.Let’s look at seven key terms you need to know in order to gain an insi...

How to Delegate Effectively as You Grow Your Small Business

During the earliest days of running your small business, you might find that you’re able to handle most, or even all, of the tasks yourself. However, as your business grows, the demands on you as a business owner increase and you need to stop juggling before you drop the ball. It’s time to entrust a greater share of work to team members, contractors or freelancers so that you can focus on the tasks that matter and continue to grow your business.“But I Hate Delegating!” I totally get it.M...

Making Tax Digital Deferred

Some of you will be breathing a sigh of relief after today's announcement that forthcoming changes to the tax system are to be deferred.Making Tax Digital for Income Tax – the requirement to keep records digitally, and submit quarterly returns – has been postponed from April 2023 to April 2024.This is in recognition that a lot more work is required by both HMRC and taxpayers to be ready for this change which is the most significant overhaul to the tax system since the introduction of Se...

Increase in NIC and dividend rates - What does it mean for you?

This week the Prime Minister announced his plans for resolving the health and social care issues.  National insurance contributions and dividend tax rates will increase by 1.25% across the UK from April 2022, with the projected £12bn annual income to be ring fenced to pay for health and social care.When will it apply? From 1 April 2022, there will be a temporary 1.25% increase in class 1 (employee) and class 4 (self-employed) national insurance contributions (NIC) paid by workers...

5 Reasons to Hire a Virtual Finance Director

After a sustained period of growth, business owners often find themselves in a tricky position. The business now requires an experienced professional to take charge of the finances, but hiring an in-house finance director is still out of reach. In this case, it’s time to think about hiring a virtual finance director (FD) to lighten the load and ensure that your business continues to achieve success. Let’s look at five reasons to hire a virtual FD. 1. Your Business has Grown  When y...

Six Quotes That Can Make You a Better Leader (From Some of the World's Leading Entrepreneurs)

Everyone has a fascination for famous quotes, and for good reason. Some of these have the power to alter one's perspective and outlook on life and even in business. What makes some people vastly more successful than others? They became experts in their fields and uncovered the best business practices and philosophies. Sometimes, a single quote can tell you a lot about a person and how they reached success. That’s why learning from the best entrepreneurs, even via a quote or two, is one of the ...