Posts by Kath Hiscock

The Employment Allowance is a government scheme that lets eligible businesses reduce their annual National Insurance liability by up to £10,500 (for the 2025/26 tax year). But there are a few key rules around eligibility-especially when it comes to company directors. Here’s the crux of it: To claim the Employment Allowance, your business must have at least one employee (or director) who is paid above the Secondary Threshold for Class 1 National Insurance (that’s £5,000 per year in 2025/26). Now, here’s where it gets interesting in the scenario of company director only payroll: You’ve got two directors on the payroll,
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As of February 26, 2025, small businesses in the UK are preparing for several significant financial changes stemming from recent HM Revenue & Customs (HMRC) legislation and government policies. These changes, set to take effect in the upcoming months, will impact taxation, reporting requirements, and available reliefs. Below is a detailed overview to help small business owners navigate the forthcoming adjustments. 1. Increase in Employer National Insurance Contributions (NICs) Effective from April 2025, employer NICs will rise by 1.2 percentage points, increasing the rate from 13.8% to 15%. Additionally, the salary threshold at which employers begin paying NICs will decrease
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World Environment Day, celebrated annually on June 5th, is a global platform for encouraging awareness and action for the protection of our environment. As businesses increasingly recognise their role in this effort, supporting World Environment Day 2024 can bring both environmental benefits and significant financial impacts. Let’s delve into how aligning with this important day can influence a company’s financial health. Enhanced Brand Reputation and Customer Loyalty Supporting World Environment Day showcases a company’s commitment to sustainability and social responsibility. Consumers today are more environmentally conscious than ever and prefer to support brands that reflect their values. By participating in
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New rates. Updated HMRC fuel rates (AFRs) from 1 June 2024 for fuel costs when using company cars. Engine Size                       Electric per mile        Petrol per mile        LPG per mile      Diesel per mile      1,400cc or less – 14p 11p – 1,401cc to2,000cc – 16p 13p – Over 2,000cc – 26p 21p   1,600cc or less – – – 13p 1,601cc to 2,000cc – – – 15p Over 2,000cc – – – 20p Hybrid cars are treated as either petrol or diesel
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The Bank of England’s interest rate – a seemingly distant economic metric – can have a profound impact on businesses and individuals alike. Whether you’re an entrepreneur, a homeowner, or simply someone with savings, the current interest rate in the UK holds implications that ripple through the economy. So, what does the current UK interest rate mean for you and your business? 1. Borrowing Costs: When the Bank of England raises the interest rate, borrowing becomes more expensive. For businesses reliant on loans and credit lines, this means higher costs of capital. Entrepreneurs seeking to expand their operations or invest
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In the dynamic landscape of entrepreneurship, micro-SMEs (Small and Medium-sized Enterprises) often operate as sole traders due to their simplicity and ease of setup. As a sole trader, you’re not just the brains behind the operation; you’re also the one responsible for navigating the complexities of taxes. However, with strategic planning and savvy financial management, you can leverage various methods to optimise your tax savings. Let’s delve into some practical tips for micro-SMEs to save taxes as a sole trader: 1. Keep Accurate Records Maintaining meticulous records of all your business transactions is the cornerstone of effective tax management. From
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Introduction: Reducing corporation tax liabilities is a key objective for many businesses operating in the UK. While paying taxes is a crucial part of contributing to society, it’s also essential for businesses to explore legitimate strategies to minimize their tax burden. In this blog post, we’ll explore seven effective ways for businesses to reduce their corporation tax bill in the UK. Utilise Tax Allowances and Deductions: One of the most straightforward ways to reduce your corporation tax bill is to take advantage of all available tax allowances and deductions. This includes allowances for capital expenditures, such as investments in machinery
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New rates. Updated advisory fuel rates (AFRs) from 1 March 2024 for fuel costs when using company cars. Engine Size                       Electric per mile        Petrol per mile        LPG per mile      Diesel per mile      1,400cc or less – 13p 11p – 1,401cc to2,000cc – 15p 13p – Over 2,000cc – 24p 21p   1,600cc or less – – – 12p 1,601cc to 2,000cc – – – 14p Over 2,000cc – – – 19p Hybrid cars are treated as either petrol or diesel
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New rates. Updated advisory fuel rates (AFRs) from 1 September 2023 for fuel costs when using company cars. Engine Size                       Electric per mile        Petrol per mile        LPG per mile      Diesel per mile      1,400cc or less – 13p 10p – 1,401cc to2,000cc – 16p 12p – Over 2,000cc – 25p 19p   1,600cc or less – – – 12p 1,601cc to 2,000cc – – – 14p Over 2,000cc – – – 19p Hybrid cars are treated as either petrol or diesel
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