Managing Expenses & Employee Benefits in the UK
Managing expenses and employee benefits in the UK presents a unique set of challenges for businesses, with requirements to remain compliant with legal obligations while providing competitive benefits packages requires a careful and informed approach. Employers are expected to find ways to control costs without compromising the quality of benefits offered to employees, a balance […]
Comprehensive Guide to Accounting for UK Businesses
For UK businesses, effective accounting practices are essential for day-to-day operations and ensuring compliance with stringent financial regulations. From managing cash flow to preparing for tax obligations, proper accounting maintains transparency, offers critical insights into financial health and guides strategic decisions. In this guide, we will explore the essentials of accounting for UK businesses, covering […]
The Ultimate Guide to Management Accounts
Management accounts are essential tools for UK businesses, offering detailed internal financial reports tailored to the company’s managerial needs. These reports typically include a comprehensive analysis of revenue, costs, profits, cash flow, and liabilities over recent periods. They go beyond statutory financial statements, offering contextual commentary on the financial performance, including variances, market conditions, and […]
A Good Net Profit Margin for Businesses? (A guide!)
Net profit margin, a critical measure of profitability, reflects the efficiency with which a company converts revenue into actual profit after all expenses. It is a crucial indicator of financial health, operational efficiency, and the company’s ability to navigate economic fluctuations, regulatory changes, and market competition. In the dynamic and competitive UK market, understanding and […]
How to Apply for a UTR Number
Applying for a UTR number forms an essential part of the self assessment process. If you come under the self assessment rules, but fail to register and file a tax return, you risk financial penalties. In this guide, we answer frequently asked questions about UTR numbers, including how to apply for a UTR number to […]
Working From Home Tax Allowance
In the UK, workers can claim a working from home tax allowance as a simplified way to cover expenses if you work for 25 hours or more a month from home. In this guide for employed and self-employed workers, we explain the rules on claiming What is the working from home allowance? If […]
Can I Get a Mortgage if I’m Self Employed?
If you work for yourself, getting a self-employed mortgage can often be less straightforward than if you were employed – but it’s not impossible. Understanding your options and the criteria you’ll need to meet and prove will help you be prepared and get approved for a mortgage. The following guidance looks at the general criteria […]
Retained Profit Advantages & Disadvantages
There are several advantages and disadvantages to using retained profit within a business. In this way you can assess for yourself, in the context of your own business, whether retained profits are the best way forward for you and your shareholders. In this practical guide, we explain the rules, pros and cons of retaining profit […]
Mileage Claim for Electric Car Rules 2023
With more than 1.1 million electric cars on the road, it’s inevitable that some of these journeys will be made for business purposes, and as such, would be eligible for mileage reclaim. Understanding the rules relating to submitting or processing a mileage claim for electric cars can ensure they are dealt with fairly and correctly […]
How To Do Self-Employed Accounts
If you work for yourself as a sole trader, you’ll need to familiarise yourself with the rules on self-employed accounts. Sole traders have to keep financial records relating to the income generated and expenses incurred while doing business. At the end of each tax year, you will be required to report your business income and […]
Prepare a Cash Flow Forecast For Your Business
A cash flow forecast offers valuable information about your business’ expected future performance. By understanding how much cash the business is likely to have over a set period of time, you can make informed commercial decisions about investments, expansion or even determining the future viability of your company. In this guide for business owners, we […]
Self-Employment Explained
While going into business to work for yourself is an exciting time, there will be a lot you will need to consider. Self-employment means you will be taking on many responsibilities in the course of running your business, including meeting your tax obligations. What is self-employment status? If you start to work for […]
Ultimate Guide To Allowable Expenses
Business owners and sole traders have a responsibility to calculate and file their total trading profits each year and to pay tax on that amount. A company’s tax liability can be reduced by deducting the cost of allowable expenses from your total trading profits. What are allowable expenses? Allowable expenses are essential business costs necessary […]
Mileage Allowance Rules 2023
If using a car for work purposes, it’s important to understand the rules on what can be claimed back and how much. This guide covers everything you need to know about the mileage allowance rules, from the fundamentals of claiming car mileage, to who can claim and the mileage rates for hybrid and electric cars. […]
Freelance & Self Employed Maternity Pay
Under current rules, self-employed workers do not have as many maternity rights or entitlements as employed workers. However, if you work as a freelancer and on a self-employed basis, you may be entitled to a specific type of maternity pay called maternity allowance. Statutory Maternity Pay or Maternity Allowance? Statutory Maternity Pay (SMP) […]
Bookkeeping for Small Businesses & Sole Traders
Bookkeeping plays a vital role in running your own business, especially when it comes to declaring any profit or loss in your annual tax return, and offsetting allowable expenses against your taxable income. The following guide for small business owners and sole traders looks at the importance of good bookkeeping and provides essential best practice […]
Sole Trader Expenses: What Can You Claim?
As a sole trader, your business is likely to incur various running costs, some of which can be deducted from your profits to reduce your taxable income, meaning you pay less tax. In this guide for self-employed workers, we explain which expenses are allowable, how to make a claim for expenses and what records you […]
HMRC Travel Expenses & Temporary Workplace Rules
Employees who travel for work purposes may be eligible for tax relief on travel expenses that are not reimbursed by their employer. The general rule is that travel expenses between an employee’s home and workplace are not allowable under HMRC rules, while expenses for travel between the employee’s home and a temporary workplace may be […]
How to Prepare a Statement of Financial Position
Preparing a statement of financial position is just one of the many financial reports that will need to be regularly generated when running a limited company. It’s often best to secure professional advice and support to prepare these types of reports, although it can still be useful to understand the principles and purpose behind this […]
Directors Loan Account (What Are The Rules?)
Borrowing money from the company can make financial sense for directors, compared with using a commercial lender. But using from the company bank account for personal expenditure has to be managed carefully, as complex tax and accounting rules apply. Failure to follow the rules can result in HMRC action against the director, such as disqualification. What […]