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Running a small business is exciting, but managing finances can be one of the biggest challenges. Even the most well-intentioned business owners can make costly financial mistakes without realising it. Understanding these common pitfalls, as well as how to avoid them, can help keep your business financially healthy and set it up for long-term success.
As a small business owner, you no doubt spin a lot of plates. You manage operations, handle customer service, market your products, and, in many cases, try to keep up with your finances. But handling your finances is more than just recording transactions - it’s about keeping your business financially healthy. If you’re struggling to stay on top of it, unless you have a finance professional in your business already, outsourcing your finance function could be one of the smartest decisions you make. Here’s why:
Making Tax Digital for Income Tax Self-Assessment (MTD for ITSA) is a major step in updating the UK tax system. The Government has confirmed that it will now take effect from 6 April 2026 . This will change the way self-employed individuals and notably landlords report their income to HMRC.
Cryptocurrency is becoming more popular as a means of investing and trading, however it does come with complexities, notably from a Capital Gains Tax (CGT) perspective. Understanding these complexities is key to ensure you’re not stung with any surprise tax bills.
One of the busiest and most daunting days for some individuals in the UK is 31 January, the deadline for submitting self-assessment tax returns & paying the relevant tax. Despite reminders, many clients leave it late, which adds additional stress and may lead to errors. But what happens if returns or payments are missed? What are the consequences, and are there alternative options available? Read on for answers!
As we dive into 2025, there’s no better time to take control of your finances. Whether you’re improving your personal financial habits or making smart decisions for your business, a robust plan can set the tone for a successful year. Here are some of my tips to help you get started.
While not all businesses need to register for VAT as soon as you start trading, those that do may could reclaim VAT paid on purchases made before registering. Here, we’ll explain the rules, restrictions, and process for reclaiming VAT on pre-registration purchases.
Transitioning from a sole trader to a limited company is a significant step that can benefit your business by providing limited liability, potential tax efficiencies, and a more professional image. Here’s a high-level guide to help you make a smooth transition.
With the holiday season just around the corner, directors of UK limited companies might be looking for ways to spread festive cheer while staying on the right side of tax rules. Whether you're rewarding employees, appreciating clients, or treating yourself as a director, here's a guide to making the most of allowable Christmas expenses.
Chancellor Rachel Reeves’ much-anticipated Budget has landed, introducing both expected changes and some surprises in personal, employment, and business taxes.
Should I pay myself with Salary or Dividends? Or both? Read on to find out!
Embarking on the journey of changing accountants can seem like a daunting task for many businesses. However, the reality is that the process is much more straightforward than commonly perceived. In this blog, we'll explore why firstly, changing accountants is simpler than people think and secondly, why it might be a beneficial step for your business. So, let’s begin! Believe it or not, for you, changing accountants only entails the below three steps: 1. Notify your current accountant of your desire to leave All it takes is one simple email or phone call. Easy, right? 2. Settle any debts! At the point of notifying your accountant, it is advised that you settle any outstanding debts with them. This helps in making the process quicker. 3. Sign your new engagement letter! Upon addressing the above two points, your new accountant can then obtain professional clearance from your current accountant, in which they will obtain all tax codes, log-in credentials and necessary books and records. Once this has been received, all you need to do is sign a new engagement letter that states the scope of the works to be completed. I know, you’re thinking this sounds too easy. But guess what? It really is that simple! Now, let's look at the benefits you can expect from changing accountant: 1. Quicker responses to queries Fed up with contacting your accountant through emails and receiving a delayed response? Some practices now engage in client communications through WhatsApp, therefore enabling you to get answers to your accounting and tax questions in real time. 2. Tech-savvy solutions Your current accountant may maintain books and records in paper format or on Excel. In the digital age, many accounting processes have now become streamlined and automated. Cloud-based accounting software allows for easy access to financial data, making it simpler to transfer information between accountants. 3. Better alignment with your business goals Businesses evolve, and so do their financial needs. Changing accountants provides an opportunity to align your financial management with the current goals and direction of your business. The new accountant can offer fresh perspectives and insights tailored to your evolving needs. Conclusion Changing accountants is a manageable process that, when approached with transparency and communication, can be a smooth transition. By understanding that the transfer of financial records is a routine part of the profession, businesses can confidently make the switch to an accountant better suited to their current and future financial requirements. Ultimately, the goal is to enhance your financial management and position your business for continued success. If you’re not put off with changing accountants after reading the above, do get in touch with us through the link below to find out the next steps in unlocking your financial freedom.
Starting a new business is an exciting venture filled with possibilities and dreams of success. Amidst the enthusiasm, one crucial aspect that often gets overlooked is the necessity of hiring an accountant. In this blog, we will help you understand when you might need to bring in some professional financial assistance. 1. Financial expertise Accountants are trained professionals with a deep understanding of financial principles. Their expertise extends beyond basic bookkeeping, allowing them to provide valuable insights into your business's financial health. From managing cash flow to budgeting, accountants play a pivotal role in steering your business towards fiscal success. 2. You’re losing track of managing expenses You probably incur a lot of expenses running your business and keeping on top of them can be hard work. Are you keeping track of all of them and categorising them correctly on your tax returns? If not, you might be missing out on tax deductions, resulting in you paying more tax than required. An accountant can help you track and organise your expenses and ensure you're maximising your deductions, ultimately saving you money. 3. You’re losing money If your business is losing money and you’re unsure why, that's a sign that something isn’t right. If your bank account isn't reflecting your business success, its likely there are some financial matters that need addressing. This may relate to your expenses outweighing your income, inefficient marketing, and so on. Whatever the reason, this clearly needs to be fixed as soon as possible. An accountant can help you analyse your financial situation and identify the key factors impacting your trading performance, and can help you implement solutions to improve your profitability. 4. You’re short for time As a business owner, your time is a valuable resource. Handling financial matters can be time-consuming, diverting your focus from core business activities. Hiring an accountant allows you to delegate these responsibilities, freeing up your time to concentrate on growing and managing your business effectively. 5. You’re not sure how to file taxes Taxes can be confusing, with many forms and government gateway log-in credentials to remember. You might have multiple sources of income, with multiple reports to submit, such as income tax returns, corporation tax returns, VAT returns, PAYE etc. If you're unsure how to classify your business, what income to report, or what deductions you can claim, an accountant can be a lifesaver. They'll navigate the tax maze and help ensure you stay on the right side of HMRC. 6. Tax planning for the future Tax planning is a complex task that requires in-depth knowledge of tax codes and regulations. Accountants can devise tax strategies that help minimize your tax liabilities, ensuring that your business maximizes its financial resources. This proactive approach to tax planning can result in significant savings. 7. Tax savings for the present There are many tax-deductible expenses and tax reliefs available to all individuals. But do you know which expenses are deductible and which are not? Do you know about business mileage relief? Working from home allowances? Do you know how to document any reliefs in the event of an HMRC inspection? Accountants can help you understand the tax deductions available to you and how to claim them. Conclusion Hiring an accountant for your new business is not only a wise investment, but a necessity for long-term success. Their financial acumen, legal expertise, and strategic guidance provide a solid foundation upon which your business can thrive. By partnering with an accountant, this doesn’t show a sign of weakness. You are setting the stage for financial stability, compliance, and strategic growth. If you're looking for a reliable and affordable accountant who specialises in sole traders and start-up businesses, then look no further. MTP Advisory Services are here to cater for all of the above.