1. Determine If You Need to Follow Export Procedures

Export procedures apply when you’re moving goods permanently from:

• England, Wales, or Scotland (Great Britain) to a country outside the UK
• Northern Ireland to a country outside the UK and the EU

Different rules apply if you’re:

• Moving goods between Great Britain and Northern Ireland
• Sending goods through the post
• Taking a small amount of goods personally to sell abroad
• Taking goods temporarily out of the UK

For more details, refer to the official guidance on Export goods from the UK: step by step.

2. Check the Rules for Exporting Your Goods

• Verify duties, rules, and restrictions for your goods in the destination country.
• Determine if you need any licences or certificates, especially for items like:
  • Animals and animal products
  • Plants and plant products
  • Drugs and medicines
  • Chemicals
  • Firearms and military goods
  • Artworks and antiques

Consult the Export Control Joint Unit for detailed information.

3. Get Your Business Ready to Export

• Obtain an Economic Operators Registration and Identification (EORI) number that starts with ‘GB’ for exporting from Great Britain.
• If you’re moving goods to or from Northern Ireland, you may need an EORI number that starts with ‘XI’.
• Check if you need to register for VAT.
• Consider using simplified declaration procedures or the Common Transit Convention to make customs processes more efficient.

You can apply for an EORI number and find more information on the GOV.UK website.

4. Ensure the Importer Can Receive the Goods

• Confirm that the person or business receiving the goods can import them into their country.
• They may need to make an import declaration or obtain specific licences or certificates.

5. Decide Who Will Manage Customs Declarations and Transport

• You can hire someone to deal with customs and transport the goods for you, such as a freight forwarder or customs agent.
• Alternatively, you can manage customs declarations and transportation yourself.

For guidance on hiring someone or managing the process yourself, visit GOV.UK.

6. Classify Your Goods

• Find the correct commodity code for your goods, which determines the duties and VAT applicable.
• Your customs agent or transporter can assist with this.

Use the Trade Tariff tool to find the right commodity code.

7. Prepare the Invoice and Other Documentation

• Create a commercial invoice that includes:
  • The sale price or market value of the goods
  • Any freight or export insurance costs
  • The commodity code
  • The EORI number
• Include any necessary licences or certificates with the shipment.
• Obtain proof of origin if required, which can help in reducing or eliminating import duties in the destination country.

For more on proof of origin, see How to apply rules of origin to your product.

8. Get Your Goods Through Customs

• Submit an export declaration through the Customs Declaration Service (CDS).
• Ensure all necessary documentation accompanies the goods.
• If you’ve appointed someone to manage customs, they will manage this process.

Learn more about the CDS at Customs Declaration Service – GOV.UK.

9. Keep Invoices and Records

• Maintain records of all commercial invoices and customs paperwork.
• If you’re VAT registered, record the goods in your VAT accounts, even if they are zero-rated.
• For controlled goods, keep documentation showing ownership and compliance.

This checklist provides a foundational overview of the steps involved in exporting goods from the UK. For more detailed information and resources, refer to the Export goods from the UK: step by step guide on GOV.UK.

If you have specific questions or need further assistance, feel free to ask.

In a significant move to bolster British businesses amidst evolving global trade dynamics, the UK government has unveiled a comprehensive support package aimed at enhancing financial backing and fostering growth across various sectors.

Strengthening Financial Support for Exporters

Central to this initiative is the expansion of UK Export Finance (UKEF) capabilities, with an additional £20 billion allocated to support British exporters. This enhancement is designed to provide businesses with the necessary financial tools to navigate international markets more effectively. Complementing this, the British Business Bank’s Growth Guarantee Scheme will offer loans of up to £2 million to small businesses, facilitating their expansion and resilience in a competitive global environment.

Comprehensive Measures to Stimulate Growth

Beyond financial instruments, the government has introduced several measures to stimulate economic growth and job created.

• Automotive Industry Support: Adjustments to the Zero Emission Vehicle (ZEV) mandate aim to provide greater flexibility for British car manufacturers, encouraging the transition to electric vehicles while supporting industry competitiveness.
• Life Sciences Advancement: Efforts to reduce regulatory barriers are set to accelerate clinical trials, promoting innovation and efficiency within the UK’s life sciences sector.
• Health Data Investment: A commitment of up to £600 million towards a new Health Data Research Service underscores the government’s dedication to advancing healthcare research and infrastructure.
• Regional Development: A £30 million investment to support the reopening of Doncaster Sheffield Airport is projected to create approximately 5,000 jobs and contribute an estimated £5 billion to the local economy.

Government’s Commitment to Economic Growth

Chancellor Rachel Reeves emphasized the importance of these initiatives, stating, “The world is changing, which is why it is more important than ever to back our world-leading businesses and support them to navigate the challenges ahead.” She highlighted the collaborative approach between the government and businesses as pivotal to achieving the “Plan for Change” and enhancing the financial well-being of citizens.

Business and Trade Secretary Jonathan Reynolds reinforced this sentiment, asserting, “Our message to British business is clear – we’ve got your back.” He outlined the critical role of the British Business Bank and UKEF in providing essential support to exporters and small firms aiming to expand their global footprint.

Conclusion

This multifaceted support package reflects the UK government’s proactive stance in adapting to global economic shifts and underscores its commitment to fostering a robust, innovative, and resilient business environment. By enhancing financial support mechanisms and investing in key sectors, the government aims to drive sustainable economic growth and ensure that British businesses remain competitive on the international stage.

Small changes can have a significant impact when it comes to business finances. This is particularly true when considering adjustments to pricing and cost control. In this article, we will illustrate how increasing sales prices by just 2% and reducing costs by 2% can create a considerable uplift in overall profitability.

Starting Figures

Consider a business with the following financials:

• Sales: £200,000
• Costs: £150,000
• Profit: £50,000

This is our baseline scenario. Let’s explore how minor changes affect these numbers.

2% Price Increase

By applying a 2% increase to all prices, sales revenue increases without any additional volume or operational changes.

• Revised Sales: £200,000 � 1.02 = £204,000
• Costs: £150,000 (unchanged)
• Profit: £204,000 – £150,000 = £54,000

A 2% price increase results in a £4,000 profit uplift, which is an 8% increase in profit.

2% Cost Reduction

Next, apply a 2% reduction in costs through efficiency improvements or better supplier terms.

• Revised Costs: £150,000 � 0.98 = £147,000
• Sales: £204,000 (from the earlier price increase)
• Profit: £204,000 – £147,000 = £57,000

This combined effect delivers an additional £7,000 in profit – a 14% increase on the original £50,000.

Comparison Table

Business Insight

The improvement comes from enhanced margin control. Increasing prices lifts revenue, while cost reductions improve efficiency. When both are applied together, the effect is magnified.

A 2% increase in prices and a 2% reduction in costs produce a 14% increase in profit, proving that margin management can be more effective than simply chasing higher sales volumes.

Longer-Term Impact

If these adjustments are made annually, the compounding effect can be significant. Starting from £50,000, with a 14% profit increase per year:

• Year 1: £57,000
• Year 2: £64,980
• Year 3: £74,077
• Year 4: £84,452

Over four years, profits have grown by nearly 70%, all from modest annual improvements.

Summary

Businesses looking to improve profitability should not underestimate the impact of small, strategic changes. A modest price rise combined with careful cost management can significantly enhance the bottom line.

Rather than focusing solely on increasing sales volumes, consider how small percentage changes in pricing and cost control can deliver meaningful and sustainable profit growth.

With the rising cost of everyday essentials continuing to impact households and businesses alike, many clients have been asking us how they can better manage their money in the current climate.

While no single solution fits everyone, there are several practical areas that can help ease the financial pressure. This blog sets out some straightforward steps worth considering, whether you’re employed, self-employed, retired, or somewhere in between.

We believe good financial planning isn’t just for the future, it’s essential for managing the present. Here are some key areas to review if you’re looking to stay financially resilient in uncertain times.

1. Review Regular Outgoings – Start With the Essentials

Direct debits and standing orders often run in the background unnoticed. It’s worth taking the time to assess what you’re actually paying for each month.

• Streaming and media services – It’s easy to accumulate multiple subscriptions, but are you really using them all?
• Mobile contracts – If you’re out of contract, switching to a SIM-only deal can lead to significant savings.
• Insurance renewals – From home and car to pet and life insurance, shopping around at renewal time can yield better deals.

Tip: Print out a recent bank statement and highlight all regular payments. Cancel or review anything that’s no longer serving you.

2. Reassess Energy Costs

Although the energy market is stabilising somewhat, bills remain high for many. A proactive approach can reduce costs and avoid surprises.

• Use a smart meter to track and adjust usage.
• Check for fixed rate tariffs, which are slowly returning to the market.
• If you’re struggling to pay, speak to your supplier early – they are required by Ofgem to help arrange affordable payment plans.

Also check: Whether you’re eligible for any government support or discounts via the official gov.uk site.

3. Spend Smarter at the Supermarket

Grocery costs have jumped in recent years, but that doesn’t mean cutting corners on nutrition – it just requires a more mindful approach.

• Try switching to own-brand or budget lines where the quality is still good.
• Meal planning reduces food waste and impulsive spending.
• Batch cooking and bulk buying can be more economical – especially for families or those who cook regularly.

Tip: Set a weekly food budget and shop with a list. It’s simple but effective.

4. Address Debt Before It Escalates

With higher interest rates, even small debts can become expensive. Tackling debt early makes a real difference.

• Prioritise high-interest debt, such as credit cards or overdrafts.
• Consider 0% balance transfer cards if you qualify.
• Speak to lenders about restructuring payments if needed.

Important: There is free, confidential help available from organisations like StepChange and National Debtline.

5. Explore Ways to Increase Income

Sometimes, cutting costs isn’t enough. Additional income, even in small amounts, can offer much-needed breathing room.

• Take on occasional freelance work, tutoring, or online selling.
• If you have a spare room, the Rent a Room Scheme allows up to £7,500 per year tax-free.
• Check for unclaimed benefits, such as Universal Credit top-ups or Pension Credit.

Tools like Turn2us and Entitledto offer quick eligibility checks for various benefits.

6. Use Tax Reliefs and Allowances to Your Advantage

As accountants, we regularly see people missing out on simple but valuable tax reliefs.

• The Marriage Allowance can transfer unused personal allowance between spouses (if one is a basic-rate taxpayer).
• Work from home relief may still apply for some.
• Self-employed clients should ensure they’re claiming all allowable expenses, making use of the trading allowance, and considering capital allowances.

If in doubt, we’re happy to review your situation and make sure nothing is being missed.

7. Try Budgeting Tools to Stay on Top

Keeping track of where your money goes is essential, especially when things are tight.

• Apps like Plum, Snoop or Emma can link to your bank account and offer real-time insights.
• Traditional budget spreadsheets work well for those who prefer a hands-on approach.
• The cash envelope method is a great way to control spending on discretionary items.

Make it a habit to check in with your finances regularly – weekly if possible.

8. Build Up a Safety Buffer – No Matter How Small

Even modest savings can provide peace of mind and reduce reliance on credit.

• Start a simple emergency fund, aiming for at least one month’s expenses.
• Use regular savings accounts or cash ISAs to earn interest.
• Try round-up savings apps that collect pennies from everyday purchases and squirrel them away.

Remember: Consistency matters more than amount. Saving £10-£20 a month is a great start.

Final Thoughts: Small Steps Make a Big Difference

We understand that the current economic situation is tough, and for many, money worries are a daily concern. But with the right advice and a few practical changes, it’s possible to regain a sense of control.

If you’re not sure where to start, or you’d like help reviewing your tax position, income planning or budgeting, please contact our team. We’re here to help you navigate these challenges with confidence and clarity.

Need help reviewing your finances?
Contact us today for a no-obligation chat. We’re here to support you with practical, jargon-free advice that makes a real difference.

Big news on the wage front. As of April 1, 2025, the UK has rolled out new National Minimum Wage (NMW) and National Living Wage (NLW) rates, giving millions of workers a well-deserved pay bump. Let’s break down the numbers and chat about what this means for employers navigating these changes.

New Wage Rates:

• National Living Wage (21 and over): Now at £12.21 per hour, up from £11.44. For a full-time worker, that’s an extra £1,400 annually.
• Ages 18 to 20: Increased to £10.00 per hour from £8.60. Full-timers in this bracket could see a £2,500 yearly boost.
• Ages 16 to 17 and Apprentices: Now earning £7.55 per hour, up from £6.70.

These adjustments aim to enhance living standards and put more money into workers’ pockets, aligning with the government’s plan to support working individuals and stimulate economic growth.

Employer Challenges:

While these wage hikes are great news for employees, they present several challenges for employers:

1. Increased Payroll Costs: Higher wages mean increased payroll expenses, particularly impacting sectors like hospitality and retail, which traditionally rely on lower-wage staff. Businesses will need to reassess budgets to accommodate these changes.
2. Wage Compression Issues: With entry-level wages rising, the pay gap between junior and senior roles narrows. This compression can lead to dissatisfaction among experienced staff who may feel their skills aren’t being adequately rewarded, potentially prompting demands for pay raises across the board.
3. Compliance and Legal Risks: Ensuring adherence to the new wage rates is crucial. Non-compliance can result in hefty fines and reputational damage. Employers must also be cautious with salary sacrifice schemes, as deductions shouldn’t bring an employee’s earnings below the NMW.
4. Impact on Hiring Practices: The increased cost of employing younger workers, due to significant wage hikes in the 18-20 age group, might lead employers to reconsider their hiring strategies. There’s a risk of reduced opportunities for younger individuals as businesses seek to manage costs.
5. Price Adjustments: To offset rising labour costs, some businesses may increase prices of goods and services. However, this strategy requires careful consideration to remain competitive and retain customers.

Strategies for Employers:

To navigate these challenges, employers might consider:

• Conducting Comprehensive Wage Audits: Review current pay structures to ensure compliance and identify potential compression issues.
• Enhancing Productivity: Investing in training and technology can help improve efficiency, potentially offsetting increased labour costs.
• Transparent Communication: Engaging with staff about wage structures and any changes can help maintain morale and address concerns proactively.
• Exploring Flexible Staffing Models: Utilizing part-time or temporary staff during peak periods can help manage costs effectively.

While the wage increases aim to improve living standards and stimulate economic growth, they require employers to adapt thoughtfully. By proactively addressing these challenges, businesses can continue to thrive in this evolving landscape.

Renting out part of your home may affect Capital Gains Tax when you sell. While Private Residence Relief applies, Letting Relief can reduce taxable gains. Learn how PRR, Letting Relief, and exemptions impact your tax liability.

If you have tenants in your home, it is essential to understand the Capital Gains Tax (CGT) implications. Typically, there is no CGT on the sale of a property used as your main residence due to Private Residence Relief (PRR). However, if part of your home has been let out, your entitlement to PRR may be affected.

Homeowners who let out part of their property may not qualify for the full PRR, but they could be eligible for letting relief. Letting relief is available to homeowners who live in their property while renting out a portion of it.

The maximum letting relief you can claim is the lesser of the following:

• £40,000
• The amount of PRR due
• The chargeable gain made on the part of the property let out

Example:

• You rent out a large bedroom to a tenant, making up 10% of your home.
• You sell the property and make a gain of £75,000.
• You qualify for PRR on 90% of the property (£67,500).
• The remaining gain of £7,500 relates to the portion of the home that’s been let.

In this case, the maximum letting relief due is £7,500, which is the lower of:

• £40,000
• £67,500 (the PRR due)
• £7,500 (the gain on the part of the property that’s been let)

As a result, you would not owe any CGT-the £75,000 gain is fully covered by £67,500 in PRR and £7,500 in letting relief.

Note that if you have a lodger who shares living space with you or if your children or parents live with you and pay rent or contribute to housekeeping, you are not considered to be letting out part of your home for tax purposes.

1 April 2025 – Due date for corporation tax due for the year ended 30 June 2024.

19 April 2025 – PAYE and NIC deductions due for month ended 5 April 2025. (If you pay your tax electronically the due date is 22 April 2025).

19 April 2025 – Filing deadline for the CIS300 monthly return for the month ended 5 April 2025.

19 April 2025 – CIS tax deducted for the month ended 5 April 2025 is payable by today.

30 April 2025 – 2023-24 tax returns filed after this date will be subject to an additional £10 per day late filing penalty for a maximum of 90 days.

1 May 2025 – Due date for corporation tax due for the year ended 30 July 2024.

19 May 2025 – PAYE and NIC deductions due for month ended 5 May 2025. (If you pay your tax electronically the due date is 22 May 2025).

19 May 2025 – Filing deadline for the CIS300 monthly return for the month ended 5 May 2025.

19 May 2025 – CIS tax deducted for the month ended 5 May 2025 is payable by today.

31 May 2025 – Ensure all employees have been given their P60s for the 2024/25 tax year.

Making Tax Digital for Income Tax (MTD for IT) will become mandatory in phases from April 2026. If you’re self-employed or a landlord earning over £50,000, get ready for quarterly updates, digital record keeping, and a new penalty system.

Initially, MTD for IT will apply to businesses, self-employed individuals, and landlords with an annual income exceeding £50,000. From 6 April 2027, the rules will extend to those with an income between £30,000 and £50,000. A new system of penalties for late filing and late payment of tax will also be introduced.

In the Spring Statement 2025, the government confirmed that MTD for IT will apply to sole traders and landlords with income over £20,000 starting in April 2028. The government will also explore how to treat those with income below the £20,000 threshold.

Starting in April 2025, HMRC will begin writing to taxpayers whose 2023-24 self-assessment returns show that their total income from self-employment and property is approaching or exceeds £50,000. These letters will notify them of their obligation to use MTD for IT starting in April 2026.

Although MTD for IT becomes mandatory in 2026, you can opt to sign up voluntarily before then. This allows you to help HMRC test and refine the system while also familiarising yourself with the new rules. While signing up is currently voluntary, there are specific eligibility requirements, and not all taxpayers will qualify. If you are eligible, you can sign up on GOV.UK.

If you volunteer to participate in testing the MTD for IT service, the new penalties for late submissions and late payments will apply. This will replace the existing penalties for the relevant tax years. No penalties will apply for the quarterly updates for volunteers in 2024-25 or 2025-26.

Couples who jointly own rental property are usually taxed 50:50, even if they own different shares. But if you’re married or in a civil partnership, Form 17 lets you split income based on actual ownership-provided you meet HMRC’s rules.

The standard tax treatment for couples living together, whether married or in a civil partnership, is that property income held jointly is split 50:50, regardless of the actual ownership proportion.

However, if the ownership is unequal and the couple wishes to have the income taxed in line with their respective shares, they must notify HMRC and provide evidence of the unequal beneficial interests in the property. This is done by submitting Form 17, which declares the beneficial interests in joint property and income.

A Form 17 declaration can only be made by spouses or civil partners living together who own property in unequal shares, with the income allocated in proportion to these shares. Couples who are separated or in other types of relationships are not eligible to submit a Form 17 declaration.

The declaration is only valid if both partners agree. If one partner disagrees, the income will continue to be split 50:50, regardless of the ownership structure.

Once submitted, a Form 17 declaration remains in effect until there is a change in the couple’s status, such as separation or divorce, or a change in the ownership structure. If either of these occurs, the 50:50 income split will be reinstated.

There are specific situations in which Form 17 cannot be used, such as when spouses or civil partners own property as beneficial joint tenants, income from shares in a close company or for partnership income.

In cases where property is owned in unequal shares, submitting a Form 17 declaration can offer tax benefits under certain circumstances.

When selling assets on which capital allowances were claimed, you may need to adjust your taxable profits with a balancing charge or allowance. Understanding these rules ensures you don’t face unexpected tax liabilities. Learn how to handle asset disposals correctly.

Typically, the value of the asset sold is considered to be the amount for which it was sold. However, if the asset was given away, no longer used, or sold for less than its market value, then the market value should be used.

If you initially claimed 100% tax relief on the asset, the business is required to add back the difference between the sale price and the original value to their taxable profits. This adjustment is known as a balancing charge. A balancing charge ensures that a business does not receive more tax relief than it was entitled to on the purchase of the asset. Essentially, the balancing charge operates in the opposite manner to a capital allowance, increasing the amount of profit on which tax is due. 

If writing down allowances were used initially, you may face either a balancing charge or a balancing allowance.

There are specific rules that apply when calculating a balancing charge, particularly in the following cases:

• If you originally claimed a super-deduction or special rate first-year allowances.
• If you claimed full expensing or 50% first-year allowances.

In the year your business closes, instead of claiming capital allowances, you must enter a balancing charge or balancing allowance on your tax return.