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Outstanding invoices are a frustrating fact of life for business owners – and they’re often left at the bottom of the to-do list. But getting paid is essential – and it’s not as difficult as it seems. It’s all about being polite, but persistent. Start simple Often, an outstanding invoice can be solved with a simple payment request or by resending the invoice. Start there, and you might be surprised by how many long-neglected invoices are paid. Firmer follow-ups If your payment requests are ignored, it’s time for firmer action. Although most people dread making a phone call to ask for payment, it’s actually one of the most effective ways to get an invoice paid. You can also charge a late fee – but this needs to be written into your terms of service before you do the work. Last-ditch options Of course, some clients won’t respond to polite requests. If you have spent months waiting for payment, it’s time to bring in the big guns. This could mean cutting off services until payment is made, or calling in professional debt collectors or lawyers. The bad news: these aggressive options will likely scuttle your relationship with the client. The good news? You might get paid. One more option is doing a credit check before you do business with a client. This can help you reduce the risk of late payments and defaults, and even better, minimise the need for awkward or aggressive follow-ups.  Need help clarifying your terms of service, following up on late invoices or writing off unpaid debt? Get in touch with our team on 01904 787 973 for expert support and guidance. Over the years, we’ve grown into one of the leading accountants in York, expanding our range of accounting services whilst staying true to our core values and our force for good ethos.

Pay As You Earn (PAYE) is an integral part of the UK income tax system. But what do the PAYE codes issued by HMRC to you and your employees actually mean? Here’s our lowdown on PAYE codes and how they help you understand your tax allowance and the amount deducted in tax on your monthly salary and income. PAYE codes and what they tell you about taxable pay When individuals are paid in whole or in part through a payroll, income tax is deducted from each payment part and that tax then paid to HM Revenue & Customs (HMRC). Generally, some of the income is tax free, and HMRC tells you (the employer) how much is tax-free by issuing a tax code. The tax code is in two parts: A number which usually indicates the tax-free amount that can be paid – The numerical part indicates the individual’s personal allowance, and is one-tenth of the annual tax-free amount. And an alphabetical suffix which provides further information – the most common code is 1257L where the 1257 is one-tenth of the normal annual tax-free personal allowance of £12,570. The ‘L’ simply means that it’s the standard allowance. The £12,570 equals £1,047 per month for an employee. So, ignoring National Insurance (NI) and any other factors, this employee earning £2,500 would pay tax of (£2,500 - £1,047 @ 20% =) £290 per month. Other alphabetical suffixes and what they mean '0T' - A code of ‘0T’ means there is no tax-free amount to be taken into account. All earnings are subject to basic, higher and additional rate tax, depending on the total earned by the employee. 'BR' - A ‘BR’ code means that all earnings are taxed at the basic 20% rate. 'D0' - A ‘D0’ code means that all earnings are taxed at the 40% higher rate. 'D1' - A ‘D1’ code means that all earnings are taxed at the 45% additional rate. 'M' - 'M’ denotes that the employee is in receipt of the marriage allowance from their partner. 'N' - ‘N’ denotes that the employee has transferred the marriage allowance to their partner. 'NT' - ‘NT’ denotes that no tax is to be deducted. 'C' & 'S' - Suffixes beginning with ‘C’ are for employees who live in Wales, and ‘S’ for those who live in Scotland. How does HMRC work out what tax is payable? Generally, tax is calculated on a cumulative basis throughout the year. For each pay period, the entire earnings and allowances for the year to date are used to calculate the total tax due. Then the tax that’s been deducted up to the previous pay period is subtracted to work out the amount to deduct in the current period. A few other suffixes to be aware of: Sometimes HMRC requires each period to be calculated in isolation, in which case an additional suffix of ‘W1’ or ‘M1’ will be added. There are some occasions where tax on the payroll is calculated on a higher amount than the employee’s total pay, and in those cases a ‘K’ prefix is used in front of the numerical value. ‘T’ arises where there is unpaid tax from previous years or where the employee has other income which is not taxed at source. Talk to us about your PAYE codes It’s not just your employees’ tax codes that you must keep an eye on. If you’re paid a salary as a director through the business, then you will also have a PAYE tax code. If you receive a coding notice from HMRC, you should ask us to check if it’s correct. It’s always best practice to ensure you have the right code and that the right tax deductions will be made. If there are any additional questions about PAYE codes, please do get in touch. We’d be happy to explain your codes, tax allowances and what any specific suffixes may mean.

Have you ever tried solving a Rubik's Cube blindfolded? If you have, you have some idea how difficult it can feel trying to figure out the financial implications that come with of product development. One of the most advantageous, yet often overlooked, financial incentives for businesses is Research & Development (R&D) tax credits. This article is designed to simplify the process of maximising these credits for your product development projects, no ability to solve a Rubik's Cube blindfolded required. What are R&D tax credits? Imagine the government handing out financial rewards for businesses doing interesting work, like experimenting with new recipes or tinkering with gadgets in a way that would make even MacGyver proud. That's R&D tax credits in a nutshell. They are designed to encourage innovation by allowing businesses to reclaim a portion of their R&D expenditure. And before you ask, no, it doesn’t require wearing white lab coats or holding test tubes against the backdrop of dramatic explosions. Who can apply? If your business is attempting to 'boldly go where no man has gone before', or more realistically, working on projects that seek to resolve scientific or technological uncertainties, you might be sitting on a potential goldmine. Whether you’re developing a groundbreaking piece of software, engineering a state-of-the-art kitchen gadget, or improving existing products, your project could qualify. The size of your business or the sector doesn’t matter; what counts is the work being carried out. Yes, even if you’re a startup making waves from a garage. Maximising your claim: the not-so-secret formula Document everything : Start by documenting your R&D activities like a meticulous detective. Keep detailed records of your experiments, prototypes, and even the failures (they’re just stepping stones, after all). These documents are crucial evidence for supporting your claim. Know your expenses : You can claim a variety of costs, including staff wages, subcontractor fees, materials, and software, directly linked to R&D activities. Hosting a lavish party to celebrate a breakthrough, unfortunately, does not count. Seek expert advice : While you might be tempted to DIY, consulting with specialists like Inglis Accountants can significantly boost your claim. We speak ‘tax language’ fluently and can navigate the complexities of the R&D tax relief system like a pro. Don’t overlook anything : Often, businesses underclaim because they overlook activities or expenses that qualify. Did you know that even the cost of utilities used during R&D can be claimed? That’s right, every time you brewed a pot of coffee during those late-night brainstorming sessions, a portion of that cost might qualify. Stay informed : R&D tax relief regulations evolve, and staying abreast of the changes ensures you’re always maximising your claim. Partnering with an accountancy firm specialising in product development sectors can keep you informed and ahead of the curve. Common pitfalls to avoid Underestimating your project : Don’t assume your project isn’t innovative enough. If there’s uncertainty and you’re working on resolving it, it’s worth exploring. Missing deadlines : There’s a two-year window from the end of your accounting period to make your claim. Time flies when you’re innovating, so keep an eye on the calendar. Overcomplicating things : While the process may seem daunting, it’s not about writing a thesis. Clear, concise, and accurate information is key. To sum up, leveraging R&D tax credits can significantly benefit your product development. With expert guidance, this process can unlock essential funding. At Inglis Accountants, we aim to help our clients excel through innovation. Every penny saved on taxes can fuel further breakthroughs. Contact our team on 01904 787 973 if you'd like to learn more.

Your people are a vital asset, so when you hire a new starter it’s critical that this new employee fits perfectly into your operations, your culture and your values as a company. But how do you know if a potential hire is a ‘good fit’? Will they drive your business to bigger and better success, or could this new employee become a potential spanner in the works? Be transparent about your company values Your company values are central to your mission as a business. So making sure those values are clearly outlined and shared is essential for hiring the right talent. By clearly defining and sharing these fundamental values, you’ll attract candidates who share your ethics, values and core motivations – making them a great potential fit for your company culture. To do this: Identify your core values and what’s important to you as a business and an owner. Communicate your core values to your employees and all new starters Live your values. Reflect them in the way you do business and how you treat people Communicate your values, mission and culture in your job advert When you’re hiring, this process isn’t just about you choosing an employee – it’s also about a worker choosing your company and understanding what you stand for. Make sure your job advert gives the best possible indication of what the job entails, but also what you’re like as a workplace. This is a great way to appeal to like-minded people with the best skills. When advertising and interviewing: Describe your mission and ask candidates if they are on board with these goals Talk about your culture and ask candidates why this might appeal to them Paint the most honest and appealing picture of your workplace Ask interview questions that reveal the real candidate You obviously want to know that a prospective hire has the right mix of experience, knowledge and professional skills. That’s a given. But it’s also sensible to ask questions that reveal more about their underlying values, morality, work ethic and interpersonal skills. This will help you to assess whether the candidate is a good fit for your company culture. Here are some examples of interview questions that did a little deeper: What do you look for in an ideal employer? And how important are their core values? Tell us about a time your faced conflict in the workplace, and how you resolved it Our culture is front and centre. How do you see yourself fitting into our culture? How do you see your career evolving as a valued team member in our business? Ask your team for feedback on candidates You may think a candidate is the bee’s knees, but what do the rest of your team think? Gauging the opinions of your management team and other team members is vitally important. These people will be working directly with this new hire, so they have to get a good vibe from them. To encourage objective feedback, give your team members a chance to meet the candidate and take their feedback into account when making a hiring decision. Monitor your new hire and have regular, ongoing performance reviews Once you’ve made a hiring decision and have a new employee on the team, it’s vital to have regular and ongoing informal catch-ups and more formalised performance reviews. This helps you to measure how your new employee is settling in. It’s also an opportunity to gauge whether there are areas where they may need support from you and the wider team. Don’t hold back. Be as open and transparent as possible: Ask them how they’re feeling about their role, workload and their performance so far Check their progress against set targets and objectives for their first three months. Find out if they need help, support, further information or more onboarding support. Check if they feel they are fitting into the team, and if they are feeling happy Look out for potential issues that may be causing conflict in the team. Having the very best talent in your team is central to achieving your goals for the business. So, making sure you hire the right people is actually a business-critical decision to make. If you would like to earn more, keep more of your hard-earned profits and enjoy the life you want then book a discovery call with Donald Inglis .

Do you have surplus cash sitting in your business bank account? Your cash is ‘surplus’ when it exceeds the amount of money the company needs for its usual everyday operations. If you’re able to buy stock, fund your work in progress, pay your bills and buy replacement fixed assets and assets for expansion – and still have cash left over – this becomes surplus cash. As a general rule of thumb, it’s good practice to have enough cash to cover any contingencies – generally, three months of outgoings. However, if your surplus cash is simply left in a bank account, this can be a missed opportunity. Leaving cash sitting in the bank represents a wasted chance to invest that cash in building the business, or to extract it for your own use. It also threatens long-term tax reliefs such as Business Asset Disposal Relief (formerly ‘Entrepreneurs Relief’) or Business Property Relief. So, what’s the best way to utilise and maximise this surplus cash? Forecasting how much cash you need to run the business If there’s surplus cash in the business, you need to decide what to do with it. The first thing is calculate how much cash the business should have available at any one time. This will include: Money to continue paying bills while waiting for customers to pay you, Funds to increase stock and the value of work carried out that hasn’t been invoiced, and Money set aside for the lumpy bills such as quarterly VAT or annual corporation tax payments. One way to track that is by carrying out a three-way (profit and loss, balance sheet, cashflow) forecast. That’s something we can help you set up and monitor. You can never be 100% sure what’s around the corner, so it’s also sensible to build up a reserve to cover any unexpected downturn in business or unexpected costs. Key ways to maximise your surplus cash You need a certain amount of funds to keep the business operating smoothly. This amount will go up and down as the business moves through its operating cycle. Having contingency funds is very sensible, but you shouldn’t worry about the cash balance getting down to zero. It may not feel comfortable, but that’s why a buffer is a good idea. If you have excess cash there are a number of things you may want to consider doing with it: Just leave it in the business – if there really is no better use for it, then why not? Make sure you get some returns on it, though. Think about using a savings platform, which not only helps spread the risk where the amount held is above the deposit protection limit, but can give you a higher interest rate by accessing more accounts than you could sensibly manage yourself. Pay down your loans – where you have surplus funds, you should consider paying off any loans that the business has, taking into account the interest rate being charged and any early-redemption penalties. Pay it back to your shareholders by buying back shares – buying back shares can be more tax-effective than paying dividends, but talk to us first – this is not a ‘DIY’ exercise. Pay it to the shareholders as dividends – as long as there are retained earnings available, this can be a way of extracting cash, although you should consider the personal tax implications for you, as the owner. You, and other owners in the business, can also take steps to manage your tax exposure by using options such as the Enterprise Investment Scheme (EIS). Make additional contributions into your pension fund – as the owner, topping up your director’s pension fund may be tax-deductible for the company, while also providing long-term benefits for you and your fellow directors/owners. Expand the business – using your cash to expand the business can include investing in increased capacity for what the company already does, or diversifying into something completely different – for example, venturing into the property rental market. Buy rather than rent – where the business is renting premises, think about buying suitable commercial property instead and putting your capital into bricks and mortar. Or , perhaps, on a smaller scale, purchase new plant and equipment to replace any items that you’re currently renting or leasing. Make charitable donations – cash tied up in a bank doing nothing is also achieving nothing; donating surplus cash to charity can make a real difference to the charities you support. And as an added bonus, you may get tax relief on these contributions. Talk to us about making use of your cash planning If you believe you may have surplus funds, talk to us about the various options available to use it more effectively. Also, talk to us about preparing a three-way forecast to help decide whether or not this is something you should be concerned about. Over the years, we’ve grown into one of the leading accountants in York, expanding our range of accounting services whilst staying true to our core values and our force for good ethos. If you would like to earn more, keep more of your hard-earned profits and enjoy the life you want then book a discovery call with Donald Inglis .

In today's digital times, you're probably used to having unrivalled access to your financial numbers, key performance indicators (KPIs) and cashflow metrics. Without good bookkeeping, the speed and quality of your reporting can quickly fall down. So, why is fast and accurate bookkeeping so important? And what are the main bookkeeping tasks that your business should be getting right? The financial importance of good bookkeeping Bookkeeping is a fundamental part of your financial process as a business. Without it, your accounting software has no financial data to work with, your FD doesn’t have the most current numbers, and your accountant can’t see the current financial health of the business. Inputting your financial transaction into some form of record-keeping system is also a mandatory commitment if you’re a registered business and paying goods and services or value-added tax. Bookkeeping is what provides you with a historic breadcrumb trail of your finances – allowing you to track your cashflow, revenues and profits over a given period. How to maximise your bookkeeping So, bookkeeping is a vital part of your financial management. And the key to having your transactions recorded, available for reporting and accessible whenever you need them. But how should the bookkeeping process work, in an ideal world? Let’s walk through the core bookkeeping steps and how you can get the most from this financial admin task. To keep on top of your bookkeeping: Scan all financial paperwork – the initial part of the bookkeeping process is to scan and record all receipts, invoices and remittances. This gives you a digital copy of the paperwork that relates to your income and expenses – important when you get around to filing tax returns and expense claims etc. Record all transactions immediately – getting your transaction recorded and in the books ASAP is vital. This includes recording both your income and expenses, as soon as they occur, and matching them with the scanned paperwork. This not only helps you stay organised but also means your financial data is always up-to-date and can provide real-time reporting and numbers. This can be a huge help when running the business. Categorise transactions accurately – when recording transactions, make sure you’re accurate and categorise each item correctly. Not only does this remove the potential for errors and miss-keying in your books, it also helps you track your spending and income more accurately, so your reports are an honest reflection of your financial health. Reconcile your accounts regularly – reconciliation is the process of matching your transactions (both income and expenses) against your bank statement and other financial statements. It’s a key part of your bookkeeping and should be done regularly, to ensure that your balances are correct and that your records are totally up to date. Use a cloud-based accounting system – bookkeeping doesn’t involve books (ledgers, in accounting-speak) anymore. In the digital world, you can use cloud-based accounting software, like Xero, to record your transactions and access your financial data in the cloud from anywhere, at any time. This makes it easier to keep on top of your numbers when out of the office (and Xero will even automate the reconciliation process too). Outsource your bookkeeping to a professional – yes, you can do your own bookkeeping. But there’s a LOT of value to delegating all the hard work to a professional bookkeeper. If you don't have the time or expertise to manage your bookkeeping yourself, outsourcing is a smart move. A bookkeeper will make sure your books are always accurate and under control. Plus, they can produce cashflow statements, revenue forecasts and other reports to help your business decision-making. Talk to us about outsourcing your bookkeeping With today’s cloud accounting software, bookkeeping is a far less tedious task than it used to be. But it’s still a regular, time-consuming job that can take you away from running the business. If you’re thinking about outsourcing your bookkeeping, and freeing up that admin time, we’d love to talk to you. Our outsourced bookkeeping service will take on your bookkeeping tasks, to streamline the whole process. We’ll also introduce you to automated data-entry tools like Dext Prepare, Auto Entry and Hubdoc, that make snapping receipts and scanning invoices a breeze. Get in touch to discuss our outsourced bookkeeping service.

Leading a business can be hard work. But the good news is that you're not the only founder, owner-manager or CEO who's treading this path. Networking with your peers is a great way to make connections with other entrepreneurs, while also looking for new business opportunities. 5 ways to improve your networking skills Being part of a wide network of entrepreneurs and business leaders is about being part of the business community. It’s about giving to the community, as well as being supported by it – and knowing that you’re surrounded by other entrepreneurs who share very similar goals. So, networking is a valuable thing to take part in, whether you’re a brand new founder, or a seasoned business owner who’s been around the track a few times. But how do you get GOOD at networking? There’s no simple answer to this, but we’ve highlighted five key things you can do to get more from your networking and to give more back to your community. To become a better networker: Be authentic and relational – if you’re going to make a success of networking, it naturally makes sense to appeal to people. Being genuine and interested in getting to know your peers will help a lot. Be yourself, be friendly and take the time to learn about the people you meet. Ask questions about their work, their interests, their goals and what generally makes them tick. This isn’t just about ‘doing business’, remember; it’s about getting to know people as people, and being part of this community. Be a good listener and ask thoughtful questions – in networking, listening is just as important as talking. When you're talking to someone, listen intently, look people in the eye and pay real attention. Resist the temptation to interrupt or start thinking about what you're going to say next. Instead, focus on understanding their perspective and asking thoughtful questions. Ultimately, you want to make it clear that you’re interested in what this person has to say, and that you’ve found some common ground together. Be helpful and offer your expertise – one of the best ways to build relationships is to be an asset to your industry community. Look for ways to use your experience and skills, and offer ideas, advice and help (if people are looking for assistance). This could mean sharing your industry knowledge, providing resources, or making introductions to other people in your network. When you help others, you help the community, underline that you’re a valuable resource and that you’re interested in building relationships. Be an asset to your niche/sector/industry – share new ideas, drive innovation and be a voice that stands out in the network. If you want to make an impact, it’s important to stand out from the crowd. A good approach is to be someone who’s known for their expertise, creativity and thought leadership. Get involved in industry discussions, and write articles and blog posts about the big issues in your sector. The more you contribute to your niche/sector/industry, the faster your star will rise. Follow up after networking events – getting the networking right is one thing, but it’s important to also get your follow-ups right too. Get people’s business cards, phone numbers or emails and get in touch after the event to touch base. A quick email or LinkedIn message could well be the start of a blossoming new business relationship or friendship. It’s also a good idea to connect on social media and to comment, share and repost your new contact’s posts. What are the best places for networking? Industry-specific events and conferences – industry events are great places to rub shoulders with other professionals in your field. You can get involved in discussions, learn about the latest trends and developments and even present your own sessions. Social media platforms – you’re spoilt for choice when it comes to social media sites to help your industry networking. LinkedIn, X, Facebook, Threads and BlueSky all help you connect with the people you’ve met through your networking, and build on those relationships to share your insights and ideas more widely. Local meetups and workshops – most cities and towns will have regular business meetups and workshops that you can dip into. Business breakfast events and evening get-togethers are a great way to meet local business owners and to find out what’s going on in your local community. If you’re looking to raise your profile and improve your networking, we’d love to lend a helping hand. We’re connected to hundreds of different business owners and leaders – and we’re more than happy to introduce you. Our advice is to put yourself out there in your industry community, track down your local business peers and get busy with your content marketing and social media posts.

The Chancellor, Jeremy Hunt, delivered his second Spring Budget on 6 March 2024. This Budget aimed to appeal to the taxpaying masses, with cuts to National Insurance and a rise to the threshold for VAT registration. But was it too little, too late for the UK economy? We’ve summarised the main points, so you can see how the Budget will impact on you as a taxpayer and a business owner. Summary of the main Budget announcements The Spring Budget is likely to be the last major fiscal event before the General Election, and there was significant pressure on the governing party to deliver tax cuts. Overall, it was intended to deliver economic growth, higher investment, lower taxes and improved public services. Growth forecast Compared to the previous forecast, by year 5, total UK gross domestic product (GDP) is virtually unchanged whilst GDP per capita is marginally down.In future years, real GDP growth is now expected to be: 2024: 0.8% (previously 0.7%) 2025: 1.9% (1.4%) 2026: 2.0% (2.0%) 2027: 1.8% (2.0%) 2028: 1.7% (1.7%) Inflation (7.3% average for 2023) is predicted to average 2.2% (slightly above target) in 2024, then to decline to 1.5% in 2025, 1.6% in 2026, 1.9% in 2027 and 2.0% in 2028. Main tax measures Traditionally, most tax measures are covered in the Autumn Statement. But given that we are heading into election season, as expected, there were some significant (and some less significant) tax announcements delivered by the Chancellor. Let’s look at the main tax takeaways: Fuel duty will be frozen at current rates for a further 12 months, to April 2026. Employee’s Class 1 National Insurance (income from £1,048 to £4,189 per month) is cut from 10% to 8%, and Class 4 (self-employed, annual profits £12,570 to £50,270) is cut from 8% to 6%. Employer rates remain unchanged and all bands remain frozen. Alcohol duty is frozen at current rates until February 2025. From April 2024, the Higher Income Child Benefit Charge now tapers away on income between £60,000 and £80,000, instead of between £50,000 and £60,000. Previously if someone in receipt of child benefit earned > £50K, 1% of it would be clawed back for every £100 earned over £60K. From April 2024, it will be clawed back at 1% for every £200 earned over £60K. From 2026, it is intended to change the base to household income, rather than ‘highest earner’. The compulsory registration threshold for VATwill increase from £85,000 to £90,000, and the voluntary deregistration threshold from £83,000 to £88,000. Various measures were announced which will benefit the creative arts, primarily visual effects, film studios, museums, theatres and orchestras. The specific (and more-favourable) treatment for furnished holiday lets will fall away, and FHL will be treated the same as residential property letting. The higher-rate capital gains tax charge of 28% on gains on residential property will be reduced to 24%. Multiple dwellings relief is being abolished from June 2024. Previously, where someone purchased, for example, a block of five flats for £2 million, stamp duty was levied as if there were five purchases of £400K each. It will now be levied as a single £1 million purchase. From April 2025 the current non-dom tax system will be replaced by a new relief. This will give new arrivals full relief from UK tax on foreign income and gains for four years, after which they will be fully liable for UK tax on all income, regardless of source. A new tax will be levied on vaping products from October 2026, together with a one-off increase in tobacco duty to discourage switching from vaping to tobacco. Other measures There were some other targeted duty and tax measures of note, to consider: The windfall tax on energy firms was extended for another year. Air passenger duty on non-economy-class flights was increased. Landfill tax was increased. A new ISA with an annual savings limit of £5,000 on top of current allowances will be established to encourage investment in UK companies. More funding will be given to HMRC to help them tackle tax evasion and close the tax gap. £3.4 billion is being allocated to the NHS to invest in capital projects to enhance productivity, covering areas such as better use of AI, updated existing IT systems and reducing the admin burden on NHS staff. The Household Support Fund, which allows councils to provide additional support for households suffering from the ongoing cost of living crisis, was extended for six months. The repayment period for government emergency loans to recipients of universal credit has been extended from 12 to 24 months. Talk to us about your concerns following the Spring Budget This was a relatively sedate Budget, in comparison to Budgets and Autumn Statements in recent years. But the question still remains as to whether the Chancellor has done enough to push UK economic growth, while also appealing to the taxpaying public. If you have any worries or concerns following the Spring Budget, please do contact us to arrange a chat . We’ll be happy to talk you through the main business measures.