At some point in the life of a business, additional funding may be needed to support growth, purchase equipment, recruit staff, invest in new premises or simply strengthen cash flow. While there are now many alternative finance providers, banks remain an important source of business funding for many organisations.

Preparing thoroughly before approaching your bank can significantly improve your chances of securing the finance you need.

Be clear about why you need funding

One of the first questions a lender is likely to ask is how the money will be used. Businesses that can clearly explain the purpose of the funding and demonstrate the expected benefits are often viewed more favourably.

Whether the funds are required for expansion, working capital, equipment purchases or another purpose, it is important to present a clear and realistic case.

Prepare up-to-date financial information

Lenders want to understand the financial position of the business before making a lending decision. Recent accounts, management accounts, cash flow forecasts and details of existing borrowing may all be requested.

Accurate and well-presented financial information helps demonstrate that the business is being managed effectively and that the owners understand its financial performance.

Demonstrate affordability

Banks are primarily concerned with whether a business can repay the borrowing. A realistic cash flow forecast showing how repayments will be funded can provide reassurance and strengthen an application.

Avoid overly optimistic assumptions. It is usually better to present cautious and achievable forecasts that can be supported by evidence.

Understand your credit position

Before making an application, it is sensible to review both business and personal credit records where appropriate. Addressing any issues in advance can help avoid delays and improve the likelihood of approval.

Lenders may also consider factors such as trading history, profitability and the experience of the management team.

Build a relationship with your lender

Funding applications are often easier when there is an established relationship with the bank. Keeping your lender informed about significant developments and discussing future plans before finance is needed can be beneficial.

Approaching a bank early, rather than waiting until cash flow problems become urgent, usually provides more options and creates a more positive impression.

Give yourself the best chance of success

A well-prepared funding proposal supported by reliable financial information can make a significant difference to the outcome of an application. Careful planning also helps ensure that the type and amount of funding requested are appropriate for the business’s needs.

How we can help

If you are considering seeking finance for your business, we can help prepare forecasts, review funding requirements and present financial information in a format that lenders expect to see. Please contact us if you would like to discuss your funding options.

Many UK businesses focus their sales efforts entirely on the domestic market, yet exporting can offer significant opportunities for growth, diversification and increased profitability. Advances in technology, online marketplaces and international logistics have made it easier than ever for businesses of all sizes to reach customers overseas.

For some businesses, expanding into international markets could be the next logical step in their development.

Why consider exporting?

Selling to overseas customers can help reduce dependence on the UK market and create additional revenue streams. If demand slows in one market, sales in another may help offset the impact.

Exporting can also increase the potential customer base dramatically. A product or service that serves a niche market in the UK may appeal to a much larger audience when offered internationally.

Many businesses discover that overseas customers are willing to pay premium prices for specialist products, high quality services or goods that benefit from the reputation of UK expertise and innovation.

Start with careful research

Before entering a new market, it is important to understand local demand, competition and regulatory requirements. What works well in the UK may need to be adapted to suit local preferences, cultural expectations or legal obligations.

Research should include pricing, distribution methods, import restrictions and any local taxes or duties that may apply. Understanding these issues in advance can help avoid costly mistakes.

Consider the financial implications

Exporting can bring additional costs, including shipping, insurance, foreign exchange charges and compliance requirements. Businesses should ensure that pricing reflects these costs while remaining competitive.

Currency fluctuations can also affect profitability. Where significant overseas sales are expected, businesses may wish to consider strategies to manage exchange rate risk.

Cash flow management is equally important, particularly when dealing with new customers or extended payment terms.

Make use of available support

A range of support and guidance is available to businesses considering international trade. Assistance may be available in relation to market research, export procedures, finance and introductions to potential customers or distributors.

Taking advantage of available support can help businesses enter new markets with greater confidence.

Growth opportunities beyond the UK

Exporting is not suitable for every business, but for many it can provide an important route to growth and increased resilience. Even a modest level of overseas sales can help broaden a customer base and reduce reliance on a single market.

How we can help

Expanding overseas involves both commercial and tax considerations, and careful planning can help maximise the opportunities while reducing the risks. If you are considering selling to customers outside the UK, please contact us to discuss the financial, tax and cash flow implications.

For many taxpayers, the second Self-Assessment payment on account for the 2025-26 tax year falls due on 31 July 2026. While the January payment often receives most attention, the July instalment can arrive surprisingly quickly, particularly for business owners, landlords and self-employed individuals who have experienced fluctuating income or increased costs during the year.

Planning ahead for this payment can help avoid unnecessary financial pressure and reduce the risk of interest charges and penalties.

Understanding the July payment

The payment due on 31 July 2026 is normally the second payment on account towards your 2025-26 tax liability. Payments on account are advance payments made towards your next tax bill and are usually based on the previous year’s tax position.

Although the amount may have been calculated many months ago, it remains payable unless a valid claim has been made to reduce payments on account. Taxpayers who expect their income and tax liability for 2025-26 to be lower than the previous year may be able to reduce these payments, although care should be taken because interest may be charged if the reduction proves excessive.

Reviewing your cash position

If you have not already done so, now is a good time to review your expected cash flow for the coming weeks. Identifying any potential funding shortfall early provides more options than waiting until the payment deadline is approaching.

Business owners may wish to review debtor balances, accelerate invoicing, delay non-essential expenditure or consider whether funds can be extracted from the business in a tax-efficient manner.

Payment plans may be available

If you are concerned about paying your tax bill in full, it is important to deal with the problem before the tax falls due for payment. HMRC may be willing to agree a Time to Pay arrangement, allowing tax liabilities to be paid over a longer period through regular instalments.

The availability and terms of any arrangement will depend on individual circumstances, but taxpayers generally stand a better chance of securing an agreement if they approach HMRC before the payment becomes overdue. Interest will normally continue to accrue on outstanding balances, but a formal arrangement can help avoid more serious collection action.

Start planning now

The earlier you review your position, the more options you will have available. Whether the answer is improved cash flow management, reducing payments on account where appropriate, or discussing a payment arrangement with HMRC, early action can make the process much easier.

How we can help

If you are concerned about funding your Self-Assessment tax payment due on 31 July 2026, please contact us as soon as possible. We can review your position, assess whether a reduction in payments on account is appropriate and help you explore the options available.

Working capital is the difference between a business’s current assets, such as cash, stock and money owed by customers, and its current liabilities, such as supplier invoices, taxes and other short-term debts. In simple terms, it measures a business’s ability to meet its day-to-day financial obligations and continue operating smoothly.
Why working capital matters
Many profitable businesses experience cash flow difficulties because profits and cash are not the same thing. A company may be making sales and reporting healthy profits, yet still struggle to pay suppliers, wages or tax bills if cash is tied up in unpaid invoices or excess stock.
Good working capital management helps ensure that sufficient funds are available to cover routine expenses while supporting future growth. Businesses with strong working capital are often better placed to take advantage of opportunities, negotiate favourable supplier terms and cope with unexpected challenges.
Keep a close eye on debtors
One of the most common causes of working capital pressure is slow payment by customers. Reviewing outstanding invoices regularly, issuing invoices promptly and following up overdue accounts can significantly improve cash flow.
Consider whether payment terms remain appropriate and whether deposits or staged payments could be introduced for larger projects. Even small improvements in collection times can have a noticeable impact on available cash.
Review stock levels
Holding excessive stock ties up valuable funds that could be used elsewhere in the business. While sufficient stock is important to meet customer demand, overstocking can create unnecessary pressure on cash resources.
Regular stock reviews can help identify slow-moving items and improve purchasing decisions. Better stock control often leads to improved working capital and reduced storage costs.
Manage supplier payments carefully
Maintaining good relationships with suppliers is important, but businesses should also ensure they are making full use of agreed payment terms. Paying invoices too early can unnecessarily reduce available cash, while paying late may damage supplier relationships and lead to additional costs.
A balanced approach can help preserve cash without affecting business operations.
Plan ahead
Effective working capital management requires regular monitoring and forward planning. Cash flow forecasts can highlight potential shortages before they become serious problems, allowing time to take corrective action.
How we can help
Many businesses only review their working capital when problems arise. A proactive approach can improve cash flow, reduce financial stress and strengthen long-term business performance. If you would like help reviewing your working capital position or identifying opportunities to improve cash flow, please contact us.
 

While the government recently hit the pause button on those big Companies House changes until 2028, another massive digital shake-up is already here. As of April 2026, Making Tax Digital for Income Tax (MTD ITSA) is officially live for thousands of self-employed people and landlords across the UK.

If your gross business or property income is over £50,000, you are now legally required to follow these new rules. And with the very first quarterly reporting deadline creeping up on Friday, 7 August 2026, it is time to get your ducks in a row!

What Does This Actually Mean For You?

The days of the stressful, last-minute January tax scramble are officially over. Under the new HMRC rules, you need to swap out the paperwork for digital tools.

Moving forward, you must:

• Track everything digitally: Keep tabs on your daily business income and expenses using MTD-friendly software.
• Send quarterly updates: Fire off a quick digital summary of your transactions to HMRC every three months.
• Submit a final declaration: Finalise your full tax picture by 31 January after the tax year ends.

Why You Can’t Afford to Ignore It

HMRC is cracking down hard on late submissions with automated penalty points and higher interest rates. Relying on old spreadsheets, paper receipts, or shoe boxes full of invoices just won’t work anymore. Leaving your bookkeeping until the end of the year will lead to unnecessary fines and a whole lot of stress.

Your Next Steps

If your income crossed that £50,000 mark in the 2024/25 tax year, here is what you need to do right now:

1. Double-check your numbers: Add up your total self-employed and rental income to see if you cross the threshold.
2. Get the right software: Move your books onto a modern, HMRC-approved cloud accounting platform.

Tax changes can feel overwhelming, but they don’t have to be. We can help you pick the perfect software, get your accounts sorted, and handle your quarterly filing so you can focus on running your business. Drop us a message today to get started!

What Smaller Businesses Need to Know

The UK government has officially delayed major changes to small business and micro-entity accounts filing under the Economic Crime and Corporate Transparency Act 2023 (ECCTA) from April 2027 to April 2028.

This delay grants small businesses exactly one full accounting year and nine months of breathing room. However, directors must not ignore the impending compliance shake-up. The upcoming transition represents a massive shift in how corporate information is submitted and managed in the UK.

The Core Changes Coming in 2028

The new rules completely dismantle simplified reporting options. The most notable updates include:

� Mandatory Profit and Loss (P&L) Accounts: Both small companies and micro-entities must now file full P&L reports.

� Removal of Simplified Formats: The option to submit abridged or filleted accounts will be entirely phased out.

� Directors’ Reports: Small businesses will need to include a directors’ report alongside financial statements unless specifically exempt.

A Major Win for Privacy: The “Opt-Out” Mechanism

Initially, businesses voiced strong concerns that publicly exposing internal profit margins and commercial data would harm competition. In response to extensive industry feedback, the government introduced a critical concession: small businesses and micro-entities can opt out of having their P&L accounts published on the public register.

While the general public will not see this information, it will be fully disclosed to Companies House, HMRC, and law enforcement agencies to combat financial crime.

Moving to Software-Only Filing

The administrative process is also changing. By April 2028, Companies House will shut down its manual web-based and paper submission services for annual accounts. Every UK company will be legally required to file accounts electronically using approved commercial software in an iXBRL digital format.

How to Prepare Now

Do not wait until 2028 to review your internal corporate setup. Business owners should act proactively:

1. Audit Your Accounting Software: Ensure your digital tools are fully compliant with direct iXBRL filing parameters.

2. Evaluate Financial Disclosures: Adjust your internal corporate governance to handle the compilation of fuller financial insights.

As your accountants, we will manage this transition smoothly so your business stays fully compliant. Contact us today to discuss adapting your reporting framework.

Another rising cost for businesses

Many business owners are continuing to face increasing financial pressure during 2026 and concerns over possible business rates increases are adding to the uncertainty.

For retail businesses, hospitality operators, offices, workshops and many other commercial premises, business rates remain a significant fixed cost which can have a major impact on profitability and cash flow. Even relatively modest increases can place additional strain on businesses already dealing with higher wage costs, National Insurance increases, inflation and rising financing expenses.

With periodic property revaluations continuing and local authority finances under pressure, many businesses are reviewing how future business rates costs could affect their trading position over the coming years.

Understanding your exposure

One of the first steps is to understand how exposed your business may be to future increases. Some businesses continue to occupy premises that no longer reflect their operational requirements, while others may not have reviewed the accuracy of their rateable valuation for several years.

Businesses should also ensure they are claiming all available reliefs. Depending on circumstances, this could include small business rate relief, rural rate relief, charitable relief or transitional arrangements linked to revaluations.

In some cases, businesses may be paying more than necessary simply because existing reliefs have not been reviewed.

Reviewing your wider property strategy

Business rates should not be considered in isolation. They form part of the wider cost of occupying commercial premises and should be reviewed alongside rent, energy costs, maintenance obligations and financing arrangements.

Some businesses are now reassessing how much space they genuinely require, particularly where hybrid working arrangements or changes in customer behaviour have reduced the need for larger premises.

Others may benefit from renegotiating lease arrangements or considering alternative operating models that reduce fixed property costs.

Planning ahead

For many businesses, the key issue is not simply the current level of business rates, but the uncertainty surrounding future costs. Forward planning can therefore be extremely important.

Preparing realistic cash flow forecasts and profit projections can help identify whether future increases are manageable and whether pricing policies may need to be adjusted to protect margins.

Businesses should also avoid delaying difficult decisions. Early action often creates more options than waiting until financial pressures become more severe.

Taking professional advice

Business rates are sometimes viewed as an unavoidable overhead, but careful planning and regular review can often identify opportunities to reduce costs or improve financial resilience.

If you are concerned about rising occupancy costs, cash flow pressures or the overall profitability of your business, please contact us. We can help you review your financial position, assess the potential impact of future cost increases and consider practical planning options.

A useful point to review your business

For many businesses, summer provides a useful opportunity to pause and take stock before the pressures of the autumn trading period and the approach of the tax year end begin to dominate attention again.

The first half of 2026 has brought continuing financial pressures for many owner-managed businesses. Rising employment costs, ongoing inflation concerns, cash flow pressures and economic uncertainty have all combined to create a more demanding business environment. Against this backdrop, a mid-year business health check can be an extremely valuable exercise.

Reviewing cash flow

One of the first areas to review is cash flow. Even profitable businesses can experience financial strain if customer payments are slowing down or costs are rising more quickly than expected. Reviewing debtor levels, payment terms and future tax liabilities can help identify potential pressure points before they become more serious problems.

Businesses should also consider whether existing overdraft or funding arrangements remain suitable, particularly if borrowing costs have increased over recent months.

Are your profit margins still healthy?

This is also a good time to review profitability. Many businesses have experienced rising wage, supplier and financing costs over the past year, but some have been reluctant to adjust their pricing. A careful review of margins may reveal that certain products, services or customers are no longer delivering the returns they once did.

Small pricing adjustments or improved cost controls can sometimes make a significant difference to overall profitability.

Reviewing systems and tax planning

Business owners should also consider whether their bookkeeping and management information systems are providing accurate and timely information. With Making Tax Digital now applying to increasing numbers of self-employed individuals and landlords, maintaining reliable digital records is becoming more important than ever.

Tax planning should form part of any summer review. Waiting until the end of the tax year can reduce the number of planning opportunities available. Reviewing remuneration strategies, pension contributions, capital expenditure plans and future profit expectations at an earlier stage can often create greater flexibility.

Looking ahead

For family businesses, summer can also provide an opportunity to review longer-term plans. Succession arrangements, shareholder structures and inheritance tax exposure are areas that are often postponed until problems arise, but early planning usually creates more options and better outcomes.

Finally, many business owners benefit from stepping back and reviewing wider business risks. Cyber security, insurance cover, staff retention, customer concentration and borrowing arrangements are all areas that deserve periodic attention.

A summer health check does not need to be complicated, but it can provide valuable reassurance and help identify opportunities for improvement before the busy final quarter of the year begins.

If you would like help reviewing your business finances, cash flow, tax position or future plans, please contact us. A timely review today could help avoid more significant problems later in the year.

Businesses are being urged to remain alert after Companies House and the Intellectual Property Office (IPO) issued a joint warning about unsolicited payment requests and misleading invoices being sent to UK companies.

According to the government announcement, some businesses are receiving letters and emails that appear official and request payment for services connected with Companies House filings or intellectual property registrations. In many cases, the organisations sending these requests are not connected with government and may be charging inflated fees for services that are either available directly from official sources at a much lower cost or free of charge altogether.

Newly incorporated businesses and companies filing intellectual property applications can be particularly vulnerable because their details are publicly available and may be targeted by third parties seeking to imitate official correspondence.

The warning highlights that some requests are designed to look convincing, using official sounding names, formal layouts and references to statutory obligations or deadlines. Business owners may therefore assume that payment is mandatory when, in reality, the request relates to an optional third-party service.

Companies House and the IPO are advising businesses to carefully check all payment requests before making payment and to verify whether correspondence genuinely originates from an official government source.

Warning signs can include:

� requests for unusually high fees,

� payment demands shortly after incorporation or trademark applications,

� vague descriptions of services,

� unofficial bank details,

� pressure to pay quickly,

� and correspondence from organisations with names similar to government bodies.

Businesses should also remember that official Companies House fees and IPO fees can normally be verified directly through GOV.UK websites.

The warning serves as a timely reminder that fraud attempts against UK businesses continue to evolve, particularly where publicly available company information can be used to create apparently credible requests for payment.

Business owners may wish to ensure that staff responsible for accounts payable or company administration understand the risk of misleading invoices and know how to verify requests before payment is authorised.

Simple internal controls, such as confirming new suppliers independently, checking website domains carefully and reviewing unusual invoices with advisers before payment, may help reduce exposure to this type of scam.

For many years, employees and directors using their own cars for business journeys have relied on HMRC’s approved mileage allowance rates as a simple way to recover motoring costs. However, despite the recent increase in the approved rate from 45p to 55p per mile from 6 April 2026, many motorists may still find themselves substantially out of pocket once inflation and rising running costs are taken into account.

The original 45p per mile rate was introduced in April 2011 and remained unchanged for fifteen years. During that period the UK experienced significant inflation, particularly in the years following the pandemic, when fuel prices, insurance premiums, servicing costs and vehicle finance charges all rose sharply.

When inflation is taken into account, the original 45p rate introduced in 2011 would need to be worth approximately 65p to 67p per mile by March 2026 to provide the same real level of reimbursement. This means that, even after the increase to 55p per mile, the approved allowance still falls noticeably below the inflation adjusted equivalent.

For business owners and employees who regularly travel for work, the financial impact can become considerable. A driver covering 10,000 business miles per year under the old 45p system would have received £4,500. Had the rate increased in line with inflation since 2011, the equivalent reimbursement could have been closer to £6,600.

The issue is not simply one of fuel prices. Modern motoring costs now include increasingly expensive insurance, higher repair and servicing charges, tyre replacement costs, financing expenses and depreciation. Electric vehicles may reduce fuel expenditure, but they can still involve substantial purchase and repair costs.

Many professional bodies and business groups have argued for some time that the approved mileage allowance rates no longer reflected the true cost of business motoring, particularly for smaller businesses where directors and staff regularly use private vehicles for work related travel.

The recent increase to 55p per mile is therefore a welcome step, but many motorists may feel it does not fully address the cumulative effect of fifteen years of inflation.

Businesses should also remember that mileage claims need to be properly recorded and supported by accurate business mileage logs. Poor record keeping can lead to HMRC challenges and potentially denied claims.

If you would like advice on mileage claims, staff reimbursement policies, company car alternatives or the wider tax implications of business travel, please contact us.

Identity verification requirements at Companies House became a legal requirement for directors and people with significant control (PSCs) from 18 November 2025. This date marked the start of a 12-month transition period for identity verification. 

Companies House is introducing the new requirements on a phased basis and affected individuals are being contacted directly with guidance on what action is required and the relevant deadlines. It is estimated that between 6 and 7 million individuals will need to complete identity verification by November 2026.

Verification is generally a one-time process and can be completed either directly through Companies House using GOV.UK One Login or through an Authorised Corporate Service Provider (ACSP), such as an accountant or solicitor.

Most individuals will be able to verify their identity online using photo identification documents such as a passport, UK driving licence or biometric residence permit. Alternative methods are also available, including in-person verification at selected Post Office branches or by using information linked to a UK bank account and National Insurance number.

Individuals who are unable to use the standard online or in-person routes may appoint an ACSP to verify their identity on their behalf. The provider must be registered with Companies House and supervised for anti-money laundering purposes.

Failure to comply with the new requirements could result in restrictions on company filings and penalties.

Making gifts during your lifetime can be an effective way to reduce the value of your estate for Inheritance Tax (IHT) purposes.

One of the most commonly used exemptions is the annual exemption. This allows an individual to give away up to £3,000 each tax year without the gift forming part of their estate for IHT purposes. If the exemption is not used in full, any unused amount can be carried forward to the following tax year, although only for one year. This means that someone who made no qualifying gifts in 2025-26 could potentially give away up to £6,000 in 2026-27 free of IHT. 

There is also a useful exemption for small gifts. You can give as many gifts of up to £250 per person each tax year as you wish, provided no other exemption has been used for the same individual. This is known as the small gift allowance. 

Special rules apply to wedding and civil partnership gifts. Parents can give up to £5,000 to a child tax-free, grandparents and great-grandparents can give up to £2,500, and anyone else can give up to £1,000. In many cases these exemptions can be combined with the annual exemption. 

Another valuable relief covers gifts made out of surplus income. There is no fixed monetary limit, but the gifts must form part of normal expenditure, be made out of income rather than capital, and leave the donor with enough income to maintain their usual standard of living. This exemption can be very useful for individuals with excess pension or investment income who wish to help children or grandchildren on a regular basis. Keeping clear records is important, as HMRC may ask for evidence that the conditions have been met. 

Gifts between spouses or civil partners are generally exempt from IHT, provided both parties are permanently domiciled in the UK. Gifts to charities are also normally exempt.