The summer months often fly by in a blur of holidays, lighter workloads, and slower-paced days. But as September rolls in, businesses of all sizes start to shift gears. With the final quarter of the year just ahead, it’s the perfect moment to step back and ask an important question: is your current accounting support really working for you? At Red Fish Accountancy, we believe September is the ideal time to review your accounting services, and here’s why.
The last few months of the year are often the busiest for small businesses. Between wrapping up projects, hitting year-end targets, and managing seasonal sales, the numbers really matter.
A proactive accountant won’t just “do the books”, they’ll help you plan ahead, manage cash flow, and avoid nasty surprises when it comes to tax and compliance. If you’re not getting that kind of support now, it may be time to reassess.
With Red Fish, our accounting services in Horsham help small businesses plan for the year ahead, not just react to deadlines.
Many businesses start the year with clear goals, growth, stability, or scaling down to focus. By September, those priorities may look different.
September also brings key deadlines, for example, company accounts and Corporation Tax are due at the end of the month for December year-ends.
A good accountant will already be on top of this, reminding you in advance and making sure you’re compliant. If you’re finding yourself chasing answers or worrying about deadlines, it could be a sign your accountant isn’t as proactive as they should be.
At Red Fish, we’ve just launched our new website to make it even easier for clients and local businesses to find helpful resources. Whether you’re curious about R&D tax credits, outsourcing finance, or simply need approachable, friendly accountants in Horsham, we’re here to help.
Sometimes, a fresh perspective is exactly what your business needs too. September is a chance to ask: is your accountant keeping pace with your business?
Lots of accountants have the right qualifications. What sets us apart is our approach. Clients tell us they value our:
It’s these qualities that help us build long-term relationships with clients, rather than just ticking boxes at year-end.
If you’re ready to make sure your accounting services are the right fit for the months (and years) ahead, now is the perfect time to review your options.
📞 Contact the Red Fish team today to chat about how we can support your business.
Whether you’re looking for accountants in Horsham, or simply want proactive accounting services you can rely on, we’d love to hear from you.
Times are tough and they are likely to remain challenging for many businesses. History shows us that only when things are difficult does genuine quality rise to the surface.
So what do businesses have to do to ensure that they succeed in the economic environment of the next two years?
On 17 November we will know more about the government’s spending plans and taxation policies. The prospect is one in which the economy will be less dependent on the government, with spending to be cut aggressively and taxes to rise across the board.
The changing nature of the economy presents a whole series of questions for any business:
There is no one-size-fits-all answer to these questions. Different businesses will have different requirements. Here are some learnings from quality businesses that have succeeded in past tough times:
For the next few years, companies need to understand their customers and be able to respond to their needs and the pressures they are facing. Household income has been squeezed and some experts predict it will continue to be the case until 2024.
For most consumer-facing businesses, that means offering value for your customers.
The key here is to invest time in understanding your customers’ spending patterns and their needs.
Take some time to research these needs and look at how you currently satisfy them and what you could do to improve your offering.
Think of ways you can change the delivery of your product or service. Simple things like discussing your offering with the customer before providing it, letting them know how things are progressing, and calling them to make sure everything went OK after delivery are small ways you can identify what the customer wants and needs.
Constant communication with your customers before, during and after the sale is a key factor for successful business in tough times. Ask yourself what you could do to improve this in your business.
Take time to seek out new revenue streams. Consider rebranding some of your offerings and selling abroad or online. What new income streams are available to you and how can you take advantage of them?
Keeping the cash coming is fundamental, but so is controlling the rate at which the cash flows out.
Take time to think about your costs and what you could do to improve the way you manage your business. Regular review of targets to actual costs is key to good control of your business.
Look at the way you do things and are there alternatives?
Consider alternative suppliers, alternative payment schedules, and better use of electronic point of sale, stock management and quality control.
Sit down with us to discuss your strategy for controlling costs, brainstorm how you can do things more quickly and efficiently, and formulate a strategy for the next year.
One of the biggest costs for firms is the cost of employment. Taking on new staff is expensive, equivalent to fresh investment in the business. Many successful businesses are reviewing the value they get from their employees and are taking time to discuss how they can be more customer focused and efficient in their roles.
Look at alternatives to salary rises, such as the use of performance-related pay and a bonus structure that rewards both good service to customers and increases in sales. Get all employees involved in how the business can improve and do this regularly.
There is no single answer but there are some general principles. Be flexible, but also be alert to the dangers. Successful businesses of the future will be fast on their feet but also aware of the risks. They will be lean and efficient. They will be the ones who spot and take advantage of the opportunities that are there.
As tough as the economic outlook appears for the coming years, there will still be plenty of opportunities so please talk to us about your plans – we have considerable experience in helping our clients be successful!
Creating a business continuity plan will help you understand and manage the risks faced in the event of extreme snowfall, flooding or similar.
Businesses are also advised to prepare a grab bag with essential items which can be easily accessed should the premises be evacuated or unable to be accessed.
Items such as a copy of key contact information, copies of insurance documentation, company cards and a copy of the business continuity plan can be included to ensure resilience can be achieved following an emergency.
Businesses are also encouraged to be aware that harsh weather conditions could leave staff unable to travel to work and therefore should evaluate the risks and provide solutions to being understaffed during this time.
See: Preparing for emergencies – GOV.UK (www.gov.uk)
The Health and Safety Executive (HSE) has updated its guidance on icy conditions and what businesses should consider regarding workers’ safety.
Slip and trip accidents increase during the autumn and winter season for several reasons: there is less daylight, leaves fall onto paths and become wet and slippery, and cold weather spells cause ice and snow to build up on paths. There are effective actions that you can take to reduce the risk of a slip or trip. Regardless of the size of your site, always ensure that regularly used walkways are promptly tackled.
The following links provide some advice on how to address these issues.
See: Logistics: Slips and trips (hse.gov.uk)
The Bank of England Monetary Policy Committee voted on 3 November 2022 to increase the Bank of England base rate to 3% from 2.25%.
HMRC interest rates are linked to the Bank of England base rate.
As a consequence of the change in the base rate, HMRC interest rates for late payment and repayment will increase.
These changes come into effect:
Umbrella companies are commonly used by employment agencies to pay temporary workers. HMRC are aware that some umbrella companies purport to avoid tax and claim to be able to maximise the worker’s take-home pay.
Legitimate umbrella companies employ workers and pay their wages through PAYE. As an employee of the umbrella company, the worker should have the same employment rights as a regular employee and has a right to a written employment contract. The worker has the right to be paid at least the National Minimum Wage and is entitled to holiday pay.
HMRC have recently updated their guidance which will help temporary staff identify whether the payment arrangements are legitimate, and also sets out their employment rights:
See: Working through an umbrella company – GOV.UK (www.gov.uk)
Some workers operating via umbrella companies may be concerned that they have become embroiled in a tax avoidance scheme. This could be indicated if they get:
The worker may be responsible for paying the tax underpaid. If they have concerns they should be made aware of HMRC guidance in spotlight 60.
Living Wage Week takes place from 14 November to 20 November 2022 and is the annual celebration of the Living Wage movement in the UK. The real Living Wage is the only UK wage rate that is voluntarily paid by over 10,000 UK businesses that believe their staff deserve a wage which meets everyday needs.
The Living Wage rates are independently calculated based on the real cost of living in the UK and London.
The new rates for 2022/23 are:
See: Living Wage Week | Living Wage Foundation
UKHospitality (UKH) has made its energy cost calculator and guidance on the Energy Bill Relief Scheme accessible to all businesses. Previously, this was only available to their members.
UKHospitality Chief Executive Kate Nicholls said: “As we head into winter, many businesses will be extremely concerned about what is in store with energy prices eye-wateringly high. We know that our sector is feeling the pinch more than most and that is why we’ve taken the decision to make our expert guidance available to all.
“The government’s Energy Bill Relief Scheme is in place to reduce the unit price businesses pay for their energy, but navigating these schemes can be a challenging process so we want to offer as much help as possible.
“This is a perilous situation for the sector, and UKHospitality will continue to ensure the government is fully aware of the existential threat that inflation and energy bills combine to create.”
Phil Thorley, Director of Thorley Taverns, said: “Energy prices are pulverising businesses like ours – it’s brutal. However, it’s reassuring to know that UKHospitality is working hard with the government to ensure the sector gets the support it needs. Delivering the Energy Bill Relief Scheme was invaluable for the sector and that wouldn’t have been possible without UKH.
“Navigating some of these schemes is complicated though and I consider the resources available to UKH members essential in my understanding of how the schemes apply to my business. Access to these resources, as well as other benefits such as webinars, have already paid off for me and I know they will continue to be incredibly useful over the next few months.”
See: UKH PUBLISHES ENERGY ADVICE, GUIDANCE AND COSTS CALCULATOR FOR ALL BUSINESSES – UKHospitality
An additional bank holiday has been proclaimed on Monday 8 May 2023 to mark the Coronation of His Majesty King Charles III. The Coronation takes place on Saturday 6 May 2023 and the bank holiday will fall on Monday 8 May 2023 to mark the occasion.
This bank holiday is in addition to the regular bank holidays that take place in May: Monday 1 May for May Day and Monday 29 May for the spring bank holiday.
UK registered businesses and local authorities can apply for a share of up to £2 million to develop detailed local plans for innovative approaches to unlock non-technical systemic barriers to the delivery of net zero targets.
The aim of this competition is to support up to 30 places to develop a plan, with local authorities, to accelerate their transition to net zero.
You must consider the whole net zero system in your area, including:
This competition is open to collaborations only and closes on 30 November 2022.
If you are a UK business that sells goods or services to Europe, you can contact the UK Government’s export support team by phone or online.
You can ask any question for your business and get advice on topics such as:
If you ask a question online, the export support team will reply within 3 working days. They might ask for more information.
See: Ask the export support team a question – GOV.UK (www.gov.uk)
It looks like Crypto is here to stay and some of you may already be using and dealing with it. We’d like to cover some essential points to help you be successful. Please contact us for any bespoke help and advice we can provide on your tax return.
Cryptocurrencies have several advantages over fiat currencies. They can be used to make cross-border payments without needing a third party, such as a bank or money transmitter. They can also be used to purchase goods and services online without needing a credit card or other traditional form of payment. And because they are decentralized, cryptocurrencies are immune to government interference or manipulation.
There are several ways businesses can benefit from using cryptocurrency. For example, businesses can use cryptocurrency to pay for goods and services online without incurring fees from banks or other financial institutions. Cryptocurrency can also send money internationally without converting it into another currency first. And because cryptocurrency is not subject to government regulation, businesses can avoid costly compliance regulations.
Perhaps the most obvious way businesses can benefit from cryptocurrency is by accepting it as payment for goods and services. This allows businesses to tap into a global market of customers who may prefer to use cryptocurrency rather than fiat currency. In addition, businesses can avoid paying credit card processing fees when they accept cryptocurrency as payment.
Finally, businesses can also benefit from investing in cryptocurrency. While the price of cryptocurrencies is highly volatile and risky, there have been instances where investors have made large profits by investing early in promising projects. For example, those who invested in Bitcoin when it was first released in 2009 would have seen their investment increase by over 4 million percent if they held onto their coins until 2017. Similarly, those who invested early in Ethereum have seen their investment increase by over 13,000 percent since 2015.
While many risks are associated with investing in cryptocurrency, there is also the potential for high rewards. As such, businesses should consider carefully whether investing in cryptocurrency is right for them, given their individual circumstances and risk tolerance levels.
Cryptocurrencies have been gaining popularity over the last decade, with more businesses and individuals adopting them for various purposes. While there are many similarities between using cryptocurrency for business transactions and personal trading, some key differences should be considered.
One of the most significant differences is the level of regulation that applies to each. Businesses are subject to a much higher level of regulation than individuals regarding financial transactions, meaning they must take extra care to ensure compliance with the law. This includes ensuring that transactions are carried out in a manner that is transparent and traceable, which may not always be possible with personal trading.
Another difference is the amount of risk involved. Businesses must often take on more risk than individuals when conducting transactions, as they may be dealing with large sums of money or sensitive information. This means that businesses must be more careful when choosing which cryptocurrencies to use and ensure that they have adequate security measures to protect their assets.
Finally, the fees associated with business transactions are typically higher than those related to personal trades. This is because businesses must often pay for additional services such as compliance and security, which can drive up business costs. However, the benefits of using cryptocurrency-such as increased efficiency and security-often outweigh the costs for many businesses.
If you are receiving or paying for any goods / services for your business, we highly recommend that you do this via a separate account earmarked solely for this use. Doing so helps keep transactions of your gains / losses separate from your personal trading to make things easier regarding tax time.
In the United Kingdom, cryptocurrencies are not considered legal tender but are instead classed as ‘private money. This means that businesses can choose whether or not to accept them as payment for goods and services. However, those who take cryptocurrencies as payment must account for them in line with standard financial regulations.
When it comes to accounting for cryptocurrency transactions, businesses must ensure that they have an adequate system to record these. This system should include:
Businesses can comply with financial regulations by keeping accurate records of all cryptocurrency transactions. They will also be able to track their spending and income more efficiently, which can be helpful for tax purposes.
In the UK, businesses accounting for cryptocurrencies must do so in accordance with the Financial Conduct Authority’s (FCA) Money Laundering Regulations. In addition, businesses must ensure that their anti-money laundering (AML) and counter-terrorist financing (CTF) procedures are up to date.
HMRC has stated that cryptocurrencies are taxed as property rather than currency. This means that Capital Gains Tax (CGT) is payable on any gains from selling or disposing of cryptocurrencies. In addition, Income Tax and National Insurance contributions may also be due to crypto-related activity, such as mining or investing.
If you’re a business owner accounting for cryptocurrencies, keeping good records and seeking professional advice when needed is essential. HMRC has published guidance on how it intends to tax cryptocurrencies, but this is subject to change. So keeping up to date with the latest changes will help ensure you stay compliant with UK tax law.
Again, a question often asked is when do I need to pay my taxes, and submit returns.
Returns are usually done quarterly and payment is due one month and seven days from the end of the quarter. You can change your VAT quarter dates at any time, so if you find that your VAT return is due the same month as for example your rent, and it has a huge cashflow impact, then change the dates.
Payable on the profits generated by the company. Payment is due 9 months and one day after the year-end, so if your year-end is January 31st, your corporation tax is due 1st November. However, strangely, your Corporation Tax return is not due until 12 months after the year-end date!
Payable on your personal income (dividends, salary, and any other income). Payable on 31st January (during the tax year) and 31st July (after the tax year) each year, and your Income Tax Return is due by 31st January following the relevant tax year.
However be aware that if this is your first self-assessment tax year, you won’t be paying anything on account, so your first payment will be 150% of your first years tax liability as you will need to pay all of the tax due for the previous year plus a payment on account for the tax year that you are in when you submit the return; thereafter it will be in equal(ish) payments each July and January (assuming your income is fairly static) of 50% of your tax liability. If your first Self-Assessment tax year is 2019/20, your first payment will be 31st January 2021 (this is the big one), then the next instalment (50% of annual tax due) will be 31st July 2021.
You can apply to reduce your payments on account if your income has dropped significantly in the year, but if you ask to reduce them and your tax liability is similar or higher, then you will pay interest on the amounts due.
Over the years we’ve supported many start-ups, some that have gone onto huge success on their own (Zoopla is now a household name, PeoplePerHour is an internationally known brand), some that have migrated globally via way of a buy-out (Shutl was the subject of a purchase by eBay) and others that are still in their growth stage with exciting futures.
The companies we work with have engaged us because they’re too small to hire a finance team but they still need the range of tasks completed that a finance team does. They get great book-keeping, they get their sales invoices raised and credit control done, their payroll is run every month so their employees get paid on time, they meet their statutory obligations and they have good reliable accurate financials, as well as support and advice. All for a fixed fee that’s incredible value for money.
There are a few things that the hugely successful start-up has in common when they’re dealing with their finances, and we thought we’d share them with you.
The most successful businesses invest in their finance and administration. Don’t wait until the finances have got on top of you to find finance support: you’ll lose your paperwork, you’ll forget what you’ve spent and why, and you may fall foul of HMRC rules. Get it right from the beginning; a good finance team will grow with your business and take the legislatory headaches away. Plus, when you need investment, or are faced with a due-diligence audit, you have everything you need at your fingertips (or at your finance team’s fingertips) and don’t have to try to recreate it in a last minute rush. Looking after the finances isn’t what you do best (or if it is, do you want a job with us?!).
Understand your KPIs, know what your turnover (if any) and overheads are going to look like, so you can spot immediately if there are any issues. Have certainty as to what expenses are going into each pot so you can budget and track variances when the costs start mounting. Having said that…
Sounds like an oxymoron, but it isn’t. Your finance team will prepare your bank reconciliations, your expenses reports and allocate your transactions, they’ll account for the VAT correctly, they’ll make sure your PAYE is correct. This takes you back to the first point – if you’ve got a good finance team around you, you need to trust that they are doing it correctly. If you don’t trust them, then they might not be the finance team for you.
…and don’t be afraid to change it; business and the economy change all the time; the model for your business may not be the one that you end up creating. Zoopla was started with the intention of becoming an online estate agency and although it has firmly entrenched itself in the property market, it could hardly be further from the origins yet in the same industry.
Not just in finance – get your employee contracts drawn up by specialist HR; there’s little in business that’s more soul-destroying than having to fight an ex-employee who was never much good at their job, because you didn’t have a grievance procedure to follow.
You know if you are going to have a massive bill coming through: maybe you’ve done some serious marketing campaigns but your finance team can’t account for this or plan the cashflow unless they know. Maybe you’ve just hired a new CTO – they will be pretty upset when everyone else gets paid and they’re missed.
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