Articles

One in five British importers have altered their supply chains because of geopolitical tensions, particularly with China, new research suggests.

A survey by the Institute of Directors (IoD), found that 20.5% of importers have altered their supply chains because of tensions abroad, while a further 14.5% were considering doing the same.

Just 42.4% of importers said their supply chain had been unaffected by the geopolitical tensions.

Many firms have become “more risk aware” since the pandemic and the invasion of Ukraine, the research suggested, and are looking for stability.

Some are particularly concerned about sudden disruptions to their supply chains if UK-China relations deteriorate as well as the security of their data in Chinese systems, according to the IoD.

Emma Rowland, trade policy adviser at the IoD, said: “It is clear businesses are sensing geopolitical-shaped clouds on the horizon, particularly while China’s standing with the US, Russia and Taiwan remains uncertain.

“The pandemic, coupled with the invasion of Ukraine, has exposed vulnerabilities in international supply chains and an overreliance on countries perceived to be high-risk to the UK.

“Ultimately, firms are pursuing long-term stability in their supply chains, so they can provide certainty to their customers.”

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In evidence submitted to the Public Accounts Committee’s Progress with Making Tax Digital inquiry, contributors from across the accounting profession handed down a blistering verdict on the project, and HMRC’s ability to deliver on its new timeline.

The written submissions criticised HMRC’s failure to consult with and listen to taxpayers, agents, professional bodies and software vendors, spoke of the Revenue’s ‘limited understanding’ of how businesses operate, and expressed frustration at a lack of clarity over how MTD would work in practice.

The tax digitisation project’s current timetable will see it deliver Making Tax Digital for income tax self assessment (MTD ITSA) eight years behind schedule, and a recent National Audit Office paper reported that the scheme will come in more than £1bn over budget.

However, HMRC officials told MPs they were confident about the prospect of delivering MTD ITSA to its new timelines – those with incomes above £50,000 will join the programme in 2026, the £30,000 to £50,000 bracket will join in 2027, while quarterly reporting for incomes between £10,000 and £30,000 is under review.

Yet the Association of Tax Technicians (ATT) said there remains “an enormous amount of work to do” to deliver MTD in a workable and valuable form by 2026.

With a project this wide-ranging and complex, there were always going to be problems the project’s architects needed to tackle. However, the following stumbling blocks have yet to be satisfactorily resolved:

• The treatment of jointly owned properties
• Accommodating taxpayers with multiple agents
• Providing a coherent definition of what a digital record should look like
• The frequency of updates and whether these can be made cumulative
• The interaction of the MTD reporting period with basis period reform

HMRC officials told MPs that since December 2022 it has been undertaking a series of ‘co-creation’ events involving unnamed stakeholders “with the ambition of resolving the most pressing design issues within the coming months”.

Contact us for advice on MTD for ITSA.

After “a successful trial period”, HMRC has decided to extend its call time information messages to more of its helplines in a bid to give taxpayers and agents a better understanding of how long they can expect to be waiting on the phone.

According to HMRC’s most recent stakeholder digest, the extension, which came into effect on 4 July, will allow callers to make an “informed choice about whether they want to hang on, use our digital services or call back another time”.

Callers who have dealt with HMRC’s PAYE helpline are likely to already be aware of HMRC’s automated wait time messaging. However, the extension now covers the following services:

• Child benefit ​
• Tax credits ​
• VAT ​
• Online services ​
• National insurance​
• Construction Industry Scheme​
• Employers

The driving force behind HMRC’s decision was the apparent success of introducing automated messaging into services such as the PAYE helpline, with a spokesperson noting that thanks to this addition, “wait times reduced from 40 minutes at the start of the trial, to consistently below 20 minutes”.

The spokesperson added: “We want to be open and transparent about how long our customers can expect to wait and encourage the use of our digital services which are quicker and easier than calling us.”

Meanwhile, HMRC is also showing the wait time for its web chat for self assessment. Taxpayers using this service see the message: “Thank you for your patience, your estimated wait time is…” and then a timer counts down from that point.

The extension comes only a month after the announced closure of HMRC’s self assessment helpline over the summer and the transfer of 350 of its call handlers to other telephone services during the three-month closure. HMRC said that the decision was taken to divert resources and improve overall customer service levels.

Speak to us about self assessment.

Monthly GDP fell by 0.1% in May after growth of 0.2% in April, according to the Office for National Statistics (ONS), suggesting the economy remains on shaky ground.

In the three months to May 2023, GDP has “shown no growth” when compared with the three months to February, the ONS added.

The services sector also showed no growth in the three months to May, while production grew by 0.4% and construction grew by 0.2%.

A range of manufacturing and construction businesses cited the additional bank holiday for King Charles’s Coronation as a reason for reduced output.

There was also anecdotal evidence submitted to the ONS that industrial action in May 2023 had an impact on industries to varying degrees.

Martin McTague, national chair of the Federation of Small Businesses described the fall in GDP as “unwelcome, but not a surprise”.

“Small firms have been telling us they are facing pressure from all directions, such as interest rate rises, cost inflation and an ongoing late payment culture by big corporations”, he added.

Jeremy Hunt, Chancellor of the Exchequer, said: “The best way to get growth going again and ease the pressure on families is to bring inflation down as quickly as possible”.

Get in touch to discuss your business.

How to find the best option for your business.

In today’s fast-paced and competitive business environment, having the right tools and systems in place is crucial for success. However, one tool that sometimes goes overlooked is accounting software, which can help you manage your finances more effectively, save time and reduce the risk of costly errors.

But with so many types of accounting software, finding the best solution can take a lot of time. This article will guide you through how to choose the most suitable accounting software for your specific needs.

Cloud or desktop software?

Let’s begin by looking at the two main types of accounting software: desktop and cloud software.

With desktop software, the more ‘traditional’ type of accounting system, your accounting software and financial data reside on your desktop or laptop computer after manually installing it.

Cloud accounting software, meanwhile, is stored online — no installation required.

Each type of software has positives and negatives, but the advantages of cloud technology mean it will, in most cases, suit the average business owner of the 21st century.

For instance, as your data is stored online, you can view it in real-time from anywhere, on any device with an internet connection, making it easier to remain productive on the move.

It also makes recording expenses and income easier, as you can integrate your software with other apps, such as ones that allow you to collect and store expense records. You can also integrate bank feeds without the need for manual imports or third party plugins.

If you connect your account with your accountant, they’ll also be able to see your data in real time, helping them provide more accurate and relevant financial advice.

Assess your business requirements

Before you embark on your search for the right accounting software, it’s essential to assess your business requirements to narrow down your options and focus on software that will actually help you in the long run.

You can begin by identifying your primary needs and objectives. Do you need inventory management? Are you looking for integration with other software applications? Do you travel a lot and therefore require an online solution?

Consider scalability

As your business grows, so will your accounting needs. Therefore, it’s crucial that you choose accounting software that can scale with your business.

So, stay on the lookout for solutions that can handle an increasing number of transactions, users and features. Picking one that can scale with you now will save you the hassle of switching to a new system later down the line.

Scalability is another feature that makes cloud accounting software stand out. For example, Sage’s desktop software requires you to purchase a licence to use the program for each additional user; however, with Sage’s regular cloud offer, you can enrol up to 20 users onto the system. Xero, meanwhile, allows unlimited users.

Evaluate user-friendliness

Not everyone in your organisation that uses your accounting software will have an accounting background, so it’s crucial to choose software that is easy to navigate.

The good thing is you can test platforms by taking advantage of the free trials that some providers, including Xero and Sage, offer.

Make sure to also take a look at providers’ resource libraries and check what support systems they have in place.

Integration capabilities

Your accounting software doesn’t exist in isolation; you probably have a lot of other software applications you use in your business.

If this is the case, cloud accounting software may make more sense for you, as there are lots of opportunities to integrate other types of software with it. In practice, this means information entered into a connected app will update information on your main software and all other connected applications.

So, make sure to check the app stores of different software providers, such as Xero, before you make your decision.

Read reviews and seek recommendations

Before you make a decision, make sure to take the time to read reviews and seek recommendations from trusted sources.

Online reviews and testimonials from real people and businesses similar to yours, in particular, can provide invaluable insights into the pros and cons of each accounting software option available to you. Pay close attention to factors important to you, such as ease of use, quality of customer support, reliability and overall user satisfaction.

Why stop there? You could also reach out to business owners and industry professionals for their recommendations and experiences. Their first-hand feedback can help you make a more informed decision.

Trial the software

As we mentioned earlier, many accounting software providers offer trial periods or demo versions of their programs. Make sure to take advantage of these offers to test all the features and integrations and to find out whether it’s the right fit for you.

Pricing and cost considerations

Accounting software varies in cost, depending on its features, the number of users it supports and other factors. It can also vary in payment models, although most providers nowadays offer a subscription model and different packages depending on your needs. Comparing these packages and their fees is therefore recommended.

Make sure to stay alert for extra costs, however. For example, both Sage and Xero have multiple types of software depending on your needs, including separate programs for accounting, payroll HR and financial management.

So, make sure to factor extra costs into your budget, and don’t just rely on the headline fee advertised on websites. Yes, the costs may mount up if you need a lot of tools, but at least you won’t be paying for software you end up never using.

Which does your accountant use?

Finally, check which accounting software your accountant uses, as they’ll be proficient with that particular software. As such, you’ll be able to get far more value from your relationship as your accountant will be able to help you get set up. They’ll also be able to manage your finances more easily as they’ll know how to use the software themselves.

If you don’t use the same software as they do, don’t assume they won’t be able to help at all — the point is don’t expect them to know everything right away!

Talk to us about your accounting needs; we might be able to recommend the right solution for your business.

Hunt says changes will unlock £75bn of investment.

On the evening of Monday 10 July 2023, Chancellor Jeremy Hunt delivered a speech at Mansion House in the City of London framed around “looking further ahead”, rather than just dealing with the immediate inflationary issues the country faces.

“I want to lay out our plans to enable our financial services sector to increase returns for pensioners, improve outcomes for investors and unlock capital for our growth businesses,” Hunt said.

These plans, or the so-called ‘Mansion House reforms’, promise to “boost returns and improve outcomes for pension fund holders while increasing funding liquidity for high-growth companies”.

Specifically, Hunt said his changes to the pension system could unlock up to £75 billion of corporate investment and boost the pension pots of retirees by 12%, equivalent to £1,000 a year.

The need for investment

The UK economy is more than 15 years into a period of low economic growth, underpinned by stagnant growth in labour productivity.

There are a range of contributing factors to Britain’s productivity problem, but “one area of broad agreement”, as the Resolution Foundation puts it, is the country’s low investment rate.

“The UK’s low rates of business investment have persisted for many years. When combined with lacklustre investment in the public sector, the result has been a marked fall in the rate of growth of capital per person or per employee”, the think tank wrote.

Business investment is lower in the UK than any other country in the G7, and 27th out of 30 OECD countries, ahead of only Poland, Luxembourg and Greece.

Hunt seemed to recognise the problem at Mansion House. “Currently we have a perverse situation in which UK institutional investors are not investing as much in UK high-growth companies as their international counterparts”, he said.

Pension reforms

Hunt’s announcements on pensions came with five reforms. Some consultations will be necessary to hammer them out, but all final decisions will be made ahead of the Autumn Statement later this year, Hunt said.

The Mansion House Reforms will be guided by the Chancellor’s three golden rules: to secure the best possible outcome for pension savers; to always prioritise a strong and diversified gilt market as the Government seeks to deliver an evolutionary, rather than revolutionary, change in the pensions market; and to strengthen the UK’s position as a leading financial centre to create wealth and fund public services.

First, CEOs of the largest defined contribution pension schemes, including Aviva, Nest and Aegon, have signed a ‘Mansion House Compact’ committing them to allocating at least 5% of their default funds to unlisted equities by 2030.

The UK currently invests under 1% of funds in unlisted equity, compared to between 5% and 6% in Australia.

“If the rest of the UK’s defined contribution market follows suit, this could unlock up to £50bn of investment into high growth companies” by the end of the decade, Hunt said.

Second, the Government will “facilitate” a programme of defined contribution consolidation “to ensure that funds are able to maintain a diverse portfolio of bonds, equity and unlisted assets and deliver the best possible returns for savers”.

As such, pension schemes that are not achieving the “best possible outcome for their members” will face being wound up by the Pensions Regulator.

Mel Stride, secretary of state for work and pensions, explained the decision, saying: “Analysis shows that over a five-year period there can be as much as 46% difference between the best and worst performing pension schemes.

“This means that a saver with a pot of £10,000 could have notionally lost £5,000 over a 5-year period from being in a lowest performing scheme.”

Third, ahead of the Autumn Statement, the Government will explore whether it can establish investment vehicles via the British Business Bank.

Hunt said: “Ahead of Autumn Statement, we will test options to open those investment opportunities in high-growth companies to pension funds as a way of crowding in more investment.”

Fourth, Hunt moved on to defined benefit schemes, which number over 5,000 and operate under a different regular regime, announcing a “permanent superfund regulatory regime” to provide a “scaled-up way of managing defined benefit liabilities”.

Finally, the Government will open a consultation on doubling existing investments held by local Government pension schemes (LGPS) in private equity to 10%, which could unlock £25bn by 2030.

The consultation proposes a deadline of March 2025 for all LGPS funds to transfer their assets into pools and that each pool should hold more than £50bn of assets.

Hunt said: “Today’s announcements could have a real and significant impact on people across the country.

“For an average earner who starts saving at 18, these measures could increase the size of their pension pot by 12% over their career — that’s worth over £1,000 more a year in retirement.

“At the same time, this package has the potential to unlock an additional £75bn of financing for growth by 2030, finally addressing the shortage of scale up capital holding back so many of our most promising companies.”

Proposals welcomed by some experts

Dr Yvonne Braun, director of policy, long-term savings, health, and protection at the Association of British Insurers welcomed the Mansion House reforms, saying:

“We want to see successful, enduring pensions policies that help deliver better returns for savers as well as boosting the UK economy, and we fully support the Government’s ambition to achieve this.”

Director general of the British Chambers of Commerce, Shevaun Haviland, also broadly supported the Mansion House Reforms, commenting: “Boosting investment is key to remaining globally competitive, increasing economic growth and strengthening UK capital markets.”

“Challenges around public investments, such as HS2, illustrate the importance of leveraging more private sector investment into UK infrastructure projects, which can complement the UK’s already strong track record in encouraging private investment into infrastructure such as maritime ports, water supply and airports.”

However, she added that the Government should not neglect channelling investment into local economies and supply chains.

“With SMEs accounting for 80% of the UK’s economy, these businesses must also benefit from easier access to capital funding,” she said.

The ‘urgent’ need for a roadmap

Something that was noticeably missing from Hunt’s speech and the Government’s follow up publications was a roadmap for the Mansion House pension reform package. That fact prompted pensions and financial company Aegon to call for one to avoid “mind boggling complexity and chaos”.

Just like many in the pensions industry, Aegon also welcomed the reforms, describing it as “all guns blazing”. However, Steven Cameron, pensions director at Aegon warned that: “charging ahead without a well thought-through overarching plan could lead to chaos”.

“Pensions are some of the longest-term investments individuals make, and while government, regulators and industry should always be looking for improvements, a mad rush to implement too much, too soon without a full understanding of the consequences could be highly risky.”

Talk to us about your business.

The Chartered Institute of Taxation (CIOT) is warning that HMRC’s efforts to tackle abuse of the R&D tax relief system are resulting in them rejecting legitimate claims and stone-walling others.

 In a letter to HMRC, the CIOT wrote that the ‘volume compliance’ approach adopted by the tax authority since the second half of 2022 does not work because of the complex nature of the relief.

Ellen Milner, CIOT director of public policy, said: “We are receiving a large number of reports about the difficulties being encountered by firms carrying out genuine R&D.

“Valid claims are being rejected and businesses are being deterred from challenging HMRC by the disproportionate financial and time cost of doing so.

The volume compliance approach is based on frequent challenge and standardised letters with little or no opportunity for businesses and their advisers to explain the R&D activity they were engaged in.

It’s part of a drive to reduce error and abuse within the scheme, which, in HMRC’s 2021/22 annual report and accounts document, was shown to equal 4.9% of total R&D tax relief expenditure.

However, Milner also recognised that “HMRC has recently engaged with us to discuss our concerns”.

HMRC intends to publish a compliance action plan that addresses some of the issues raised by CIOT and others.

Talk to us about your R&D claim.

Stand out from the crowd.

According to data from Companies House, 222,068 new companies were set up in the UK within the first 12 weeks of 2023, a year-on-year rise of 8.2%. The question remains: “how unique are these businesses?”

It might seem safest to stick to tried and tested methods when you’re starting a new venture, but when you have an abundance of businesses offering the same service, it’s hard to compete. After all,  one in five new businesses in the UK close within the first year.

How can you stand out? One option is to target a niche market.

What is a niche business?

As the name suggests, a niche business aims for a specific target audience. One example of this is TomboyX, a clothing business specifically marketing to members of the LGBTQIA+ community. Or Lush, which prides itself on ethically-sourced cosmetics.

Rather than cater to a generalised audience, niche businesses offer goods and services to specific groups of people with certain values.

Starting a niche business isn’t just for the benefit of prospective customers but also for you as the business owner. This is because it allows you to instil your values in the business, championing your interests and principles. It also gives you a better opportunity to compete and build a loyal brand following.

But, before you start planning on opening your niche business, there are pros and cons to consider.

What are the advantages of running a niche business?

Although starting a niche business comes with a set of challenges, it also has a wealth of advantages.

Less competition

The more specialised your goods or services, the less likely you are to encounter an identical business. While others may have similar ideas, you won’t be up against myriad businesses selling the same product to the same people.

If you’re considering opening a coffee shop appealing to ‘coffee aficionados’, we’re sorry, but that’s not rare. But if you were to open an online coffee shop focusing on strictly vegan and ethical customers, you might have slightly more edge.

Word of mouth

Due to the nature of niche audiences, word spreads quickly if you’re successful – the smaller the demographic, the more connected they’ll be. If you connect with your audience and they value your services, you’ll gain more credibility over time.

Setting the price

When offering niche goods or services, you have more wiggle room to set the market price. You won’t have the pressure of price matching or staying as competitive. And, if you can connect with your desired customers in the right way, they’ll likely be willing to pay more for a product that’s suited to them.

Cons of marketing to a niche audience

While it’s good to go against the flow sometimes, trying to enter a niche market isn’t as straightforward as you may think.

An unpredictable market

In business, it’s quite rare to have a truly unique idea. That’s why it can be so difficult to penetrate the market. If there is an established business with a similar model to yours, you can find yourself competing for a smaller portion of a much smaller market.

Harder to grow

Only some businesses want to achieve unparalleled growth. You may want that boutique coffee shop in Shoreditch to stay small and focus on providing the best service possible to a relatively limited clientele.

But a niche business could be challenging if you have ambitions to expand. This is because your market will have a cap.

Even if you break into your niche demographic, maintaining that business over time can be the next hurdle. You’ll have to offer a product which cultivates a repeat customer base or at least attracts new people. With a niche, this can be tricky. How many left-handed pens do you really need in your life?

How to avoid falling into obscurity

If you decide to start a niche business, you’ll want to do everything you can to ensure it resonates with your target audience. As we said at the start,  one in five businesses close within the first year. So, with that in mind, here are some steps you can take to mitigate that risk.

Identify and understand your niche audience

There’s little sense in targeting a niche audience without fully understanding their culture and values. Do your due diligence and research, and continue to follow trends in the community. This will keep your business relevant, and help you understand how to market to your audience.

Remember, these days, audiences are far more switched on to disingenuous marketing ploys and will likely be able to see through the veil if you’re not 100% behind your niche’s values and principles.

According to a survey from Sprout Social, consumer’s transparency expectations grow daily, and long-term relationships inspire long-term trust.

Promote your speciality

Whatever your product or service, you want to ensure your niche audience sees its value. You should aim to make yourself the poster child of your chosen niche – a business that will meet the needs of its specific customers.

So, when you’re marketing your niche business, you’ll want to really hammer home what makes you so unique. Why do you offer a niche service? Why do you believe people may want or need it?

Start with your branding

You could have the best niche product in the world. Unfortunately, it won’t mean a thing unless you nail your branding. Not only do you want to be recognisable, but you also want to be the first business someone thinks of when looking for your niche product or service.

Brand recognition is an essential part of marketing for any business. We all recognise those golden arches, the happy-go-lucky colonel, even that identifiable swoosh on those fancy trainers.

Once you build brand loyalty, your product or service will likely gain traction (and, hopefully, staying power). It will also make you more competitive if there are similar businesses on the market.

Starting a niche business allows you to tap into a market that may be overlooked or just not catered to. But to make it a successful venture, you must meticulously plan the business’s delivery and track trends in your chosen demographic.

Get in touch to discuss starting your own niche business.

Are you hitting your business goals?

We’ve over halfway through 2023, so now is the opportune moment to review your business and progress for the year.

Chances are, it’s been a tough year so far: in the 12 months to May 2023, the consumer prices index of inflation rose by 8.7% and the bank rate is 5%. A skills shortage and the cost of energy continue to hurt businesses.

However, the Institute of Directors’ (IoD) index for business leader optimism stabilised at -6 in May, much improved from the -64 we saw in November 2022.

According to the IoD’s surveys, 55% of business leaders even expect revenues to rise in the year, compared to 19% who expect theirs to fall. Another 35% expect to increase their headcount in the next year, compared to 14% who expect it to reduce.

So, with 2023 still marked by an air of uncertainty, how are you going to make sure your business doesn’t just survive, but thrives in the current economic climate?

Business tax planning

Businesses face a tough tax treatment in 2023: corporation tax is higher for some companies, the income tax threshold remains frozen, and the capital gains tax and dividends tax allowances have been reduced.

Therefore, a great place to start with your mid-year review is to check whether your business is as tax-efficient as possible and create a tax plan.

Allowable expenses

Every tax plan will be different according to each business, but most can reduce their tax burden by claiming every allowable expense possible. By offsetting these against your pre-tax profit, you reduce the figure HMRC applies a tax rate to — ultimately reducing your tax bill.

To be allowable for tax purposes, expenses must be incurred “wholly and exclusively” for business purposes. So, training courses, staff expenses, stock for resale, raw materials, business travel, marketing costs, home office costs and uniforms (but not ‘regular’ clothes you wear to work) — they’re all allowable, as long as they fit HMRC’s criteria.

The most important part of allowable expenses is to ensure that your bookkeeping and record keeping is up to scratch — if you lose a receipt for an expense, for example, you’ll struggle to convince HMRC you actually purchased the item.

Capital allowances

If you purchase longer-life assets, you may be able to write off their value from your pre-tax profit through capital allowances.

Some, like the annual investment allowance (AIA) and temporary full expensing scheme, allow you to claim the full amount of certain assets in the same year you purchased them.

Then there’s the writing-down allowance, which a lot of companies use if they exceed the AIA limit (£1 million) or the asset does not qualify for the AIA or full expensing. This scheme lets them claim 6% or 18% of the value of an asset each accounting year, depending on the asset.

Finally is the first-year allowance, which allows you to claim the full cost of specific assets like electric cars and refuelling equipment.

Other reliefs

Limited companies in particular stand to gain from tax reliefs, including:

• Research and development tax relief if you’re attempting to make an innovative contribution to science or technology.
• Reliefs for creative industries if you’re in the theatre, film, television, animation or video game industries.
• Disincorporation relief if you’re closing your company to become a sole trader.
• Relief if you make a loss from trading, the sale of a capital asset or property income.

There are plenty of other ways to reduce your tax liability, so make sure you seek professional advice to save more money that you can reinvest into the business.

Managing cashflow

Is cash tight at the moment? No matter how many times you’ve tried cutting costs or increasing prices to improve your cashflow, it’s always worth checking whether there’s somewhere else you can improve.

Expanding your inflow

Proper invoice management is a relatively simple way to expand your inflow. So, make sure you send your invoices right away so clients can pay you as soon as possible. You can also set early payment discounts and late payment fees.

Consider adding discounts to your products, too, to turn products cluttering your shelves into cash.

Finally, if you’re expecting a temporary cashflow shortfall, you can get short-term financing, such as invoice financing, to get the money you need.

Controlling your outflow

There are many ways you can control your outflow. For instance, you can explore an alternative place of business by downsizing or adopting a co-working arrangement. Of course, there’s always working from home, too.

You can also take a look at how you buy stock; big orders often come with discounts attached. If you can’t afford a big order at the moment, consider finding another business to team up with.

Next, consider using part-time and freelance staff, switch from print to digital marketing and make sure you’ve cancelled all those free trials you signed up for. And above all, don’t be afraid to haggle with suppliers!

Cashflow forecasting

Creating a cashflow forecast is an essential part of cashflow management — without an idea of how much money you can expect to enter and leave your business in a period of time, how can you plan ahead? How will you spot issues early on or know the extent to which you need to employ some cashflow management techniques?

When drawing up your forecast, it always pays to create multiple with different assumptions, like a summer downturn or a higher energy bill. That way, you should be prepared for anything.

The importance of regular accounting

Good accounting is about more than submitting your annual accounts at year-end: you can also split the year into smaller ‘accounting periods’ to keep on top of your finances so you can make well-informed business decisions.

That’s essential for ambitious business owners, especially during 2023 with lingering uncertainty since Brexit and the pandemic.

Regular accounting will also give you a more balanced workload as you’ll be doing your accounting in smaller batches over the year, making your year-end accounting far simpler.

That ensures you can keep your records in order to create accurate accounts that tell the true story of your finances, reveal hidden problems and highlight potential opportunities.

Talk to your accountant

Ultimately, if you’re unsure about your business’s performance in 2023, or just want to ensure the best year possible, you should always get in touch with your accountant.

We’ll be able to give you more detail about everything we’ve talked about so far — and more.

Talk to us about your business.

The self-assessment telephone helpline has been closed by HMRC for the entirety of summer.

Taxpayers hoping to contact HMRC for help with their self-assessment will now have to use digital services until 4 September 2023.

During this time, HMRC says it will trial prioritising online guidance, digital assistance and web chat.

According to HMRC, the self-assessment helpline has 50% less demand over the summer, even though around 5 million calls are made to the number every year.

Between June and August 2022, nearly 1.2m people called the helpline, with over 900,000 staying on the line to try and reach an agent, with the remainder deciding not to wait on hold.

HMRC says the move will free up 350 advisers who will be able to take on ‘more urgent’ calls on other lines.

Adam Harper, director of professional standards and policy at the Association of Accounting Technicians, said:

“This pilot raises significant concerns about the impact it will have on taxpayers, particularly those who are digitally excluded or who cannot currently access the service they require via digital platforms.

“The need for such a pilot, in order to redirect staff elsewhere, highlights the much bigger challenge that HMRC faces in balancing competing priorities with a constrained budget.”

Talk to us about your self-assessment tax return.