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At the last general election, the Labour party pledged to not raise taxes for ‘working people’, with assurances that there will be no changes to income tax, national insurance (NI) and VAT. While this pledge may appeal to UK workers, it does limit what the Chancellor, Rachel Reeves, can do when it comes to raising taxes and reducing the UK’s current economic deficit. With individual taxes protected, some commentators have argued that it’s UK businesses that will bear the brunt of any hikes in taxation. But what tax changes are most likely? And could any changes impact you and your business? Possible changes that could be announced in the Autumn Budget Let’s take a look at some of the potential changes we could see being announced by Rachel Reeves on the 26th November. Remember, these are speculative outcomes from the Budget and nothing has yet been confirmed by the Chancellor or the Labour party. Here are the areas most likely to see amendments Capital Gains Tax Capital gains tax (CGT) is widely tipped for changes. The government may raise the rates of CGT or reduce the annual tax-free allowance, which has already been significantly cut in recent years. There’s also speculation about extending CGT to high-value homes as an easy way to raise more tax revenue when property owners sell more expensive properties. Inheritance Tax (IHT) Reforms to IHT are being considered. This could include lowering the current tax-free threshold of £325,000, which has been frozen since 2009, or tightening rules around gifting to prevent large estates from avoiding tax. Income Tax Thresholds While the government has pledged not to raise the rate of income tax, a common ‘stealth tax’ is to freeze tax thresholds. It’s possible the current freeze on income tax thresholds could be extended. This would pull more people into higher tax brackets as wages rise, generating more tax revenue for HMRC. Pensions Changes to pensions are possible, with a focus on areas like the tax-free lump sum that can be taken from a pension, or restricting the tax efficiency of salary sacrifice schemes. VAT changes It’s possible that widening the scope of VAT could raise significant tax revenue. There’s also speculation that the Chancellor may reduce the VAT registration threshold, currently set at £90,000 p.a. This would require many more businesses to register for VAT and charge the tax on goods and services. Business rates Although not part of the Autumn Budget, changes to business rates could have a major impact for some businesses. Businesses are already facing new business rate burdens, but some commentators are warning of an ‘unavoidable double hit’ that could push UK business rates bills up by £2.5bn. Business Asset Disposal Relief (BADR) For business owners who plan to sell their company, changes to CGT on these sales have already been announced. The rate for BADR rose from 10% to 14% in April 2025, and there’s a further increase to 18% planned for April 2026. Changes to the rate, or the period of availability of BADR are additional possibilities. We’ll be summarising the key points of the Autumn Budget once the Chancellor delivers her speech. To stay up to date, check our Resource Hub regularly, or keep an eye out for our Budget summary sent the day following the Budget.

In a world where evolving political events can change the market in an instant, and economic instability is still the norm, finding certainty in your business strategy is a rarity. Access to funding, overdrafts and lines of credit is the lifeblood of growth for any small and medium-sized enterprise (SME). But new research by Allica Bank has shown that there's an SME funding gap of up to £65billion in the UK – potentially choking SME growth. Allica’s research is a wake up call for UK small and medium businesses, making it clear that funding is more difficult to access for the average SME. Major findings from the research show that There’s a multi-generational shift in bank lending, with a gap of up to £65bn in SME lending emerging over the last 25 years. The shortfall is especially prominent in ‘productive credit’ that’s vital to boost investment, productivity and growth. There has been a particular collapse in overdraft lending to small businesses, which dropped from £18bn in 2000 to just £2.7bn in 2024. The UK has the lowest business investment rate in the G7, with small businesses investing at only a third of the level of corporate businesses and the lowest level of SME loan application rates recorded in the OECD. The impact of a drop in available funding A nationwide funding gap is cause for concern, not just for large corporate organisations and government think tanks. Simple, straightforward access to funding is what keeps your cash runway on track, and provides the capital to grow your small business. If loans, overdrafts and business credit dry up, this could have a significant impact on your ability to fund the next stage of your business strategy.Four ways to overcome the funding gap So, with the outlook for SME funding looking less than rosy, what can your small business do to improve the chances of accessing the funding you need? Here are four ideas for finding the required capital 1. Improve your business credit score Having a strong business credit score signals that you’re a viable business to lend to. Pay your suppliers on time, keep your credit utilisation ratio low and make sure you’re keeping accurate financial records. This can all help to strengthen your credit profile and access to funding. 2. Explore alternative lenders and fintech platforms Don't rely solely on traditional banks. The non-bank lending sector, including specialist business finance providers and fintech companies, offers flexible and often quicker access to capital. Products like asset finance and [ invoice finance ] can be great routes to additional funding. 3. Check out government-backed funding The government-backed Growth Guarantee Scheme allows eligible businesses to borrow up to £2m in loans. The scheme is open to smaller businesses with a turnover of up to £45m (on a group basis, where part of a group). 4. Enhance your business plan and financial projections A clear, well-researched business plan is an excellent tool when approaching lenders. A detailed plan and in-depth financial forecasts help to show your viability as a business, and your ability to cover the repayments of any offered loan. Talk to us about funding the future of your business If you’re struggling to access routes to funding, don’t worry. We can help you to improve your credit profile and business credit score, making it easier to access additional capital.

In a world where evolving political events can change the market in an instant, and economic instability is still the norm, finding certainty in your business strategy is a rarity. Keeping on top of your cash flow is even more important during tough economic times. With global uncertainty, recent high inflation, energy prices soaring, supply chain challenges, cash is likely to be tight over the coming year. Cloud technology and fintech apps, can give your business the best possible control over its cash. Why is cash flow so important? To keep your business operating, you need enough money coming into the business to cover your outgoings – with enough surplus cash to deliver a profit. In recessionary periods consumers have less disposable income to spend on your products and services. Business customers will be looking to reign in their spending on suppliers. As a net result, your business is likely to make fewer sales and will bring in smaller revenues. This means: Reduced income coming into the business. Less cash in the business to cover your operational expenses. Not enough money in the bank to pay suppliers, utility providers or payroll costs. In the worst-case scenario, insufficient cashflow for you to continue trading. What can you do to improve your cash flow situation? The more informed you are about your cash position, the more you can do to prepare for any cashflow gaps. It’s this foresight that can make all the difference when you’re battling against tough external economic forces and a downturn in sales. If you want to safeguard your cash flow, these are some sensible steps to take: Switch to cloud accounting – accounting and finance technology has moved on in leaps and bounds in the past decade. The best cloud accounting platforms all offer a detailed reporting of your cash position. These software tools will generally offer real-time data, giving you up to date cash numbers. Integrate with cash flow forecasting apps – cloud accounting platforms let you add third party apps to create a custom app stack of helpful business tools. There are plenty of cash flow forecasting apps to choose from, giving you the ability to predict your future cash flow position. Plan ahead for the cash flow gaps – when your forecast shows a shortfall of cash coming up, that’s the time to take evasive action. If you can see that there’s a cash hole approaching next month, it’s time to look at ways of raising extra finance to fill that hole. That could mean extending your bank overdraft, taking out a small business loan or taking out an invoice finance facility with a lender. Look for opportunities to cut your overheads – one way to even up your cash flow is to cut down on your expenditure. If you can cut back on overheads, expenses and unnecessary costs, this can help you re-balance your cash position, even when cash flow is getting tight. Look for cheaper suppliers, buy in smaller quantities and take every opportunity to cut costs and keep your spending more sensible. Update your prices and your sales strategy – raising your prices is one way to bring in more cash, with the same volume of sales. But it's a balancing act. Putting your prices up can alienate existing customers and could see you losing customers, but if you can find the sweet spot for your pricing AND also drum up more sales, you can quickly increase revenue and give your cash inflows a healthy boost. Review your cash flow reports regularly – it’s important to look at your cashflow numbers and reporting regularly, not just at period-end. This is particularly important when economic times are tough. With the most current cash information to hand, you can make informed business decisions and aim to keep the business operational. Talk to us about updating your cash flow processes With your business in a healthy cash flow position, you give yourself some solid financial foundations for riding out the global recession. No business is invulnerable in these conditions, but with liquid cash in the business, you have more flexibility and more capital to play with. Book a meeting and let’s see how we can improve your cash flow processes.

In a world where evolving political events can change the market in an instant, and economic instability is still the norm, finding certainty in your business strategy is a rarity. Business plans and your overriding strategy are no longer written in stone. This means being flexible about your next steps and regularly reviewing your business strategy. Let’s see how frequent strategic business reviews can help you reduce the uncertainty. 1. Get proactive with your financial forecasting Review your financial position, metrics and reporting as regularly as possible. Produce rolling cashflow forecasts to keep on top of your cash position and run scenario planning to look at the best, base and worst-case scenarios. This gives you the best possible visibility into the company’s financial health, and gives you enough time to spot the potential shortfalls, understand your cash runway and make adjustments to your spending. 2. Diversify your revenue streams to reduce risk As part of your strategic review process, you should be looking for opportunities to diversify as a business, generating new and potentially profitable revenue streams. Explore whether there are new products or services you might offer, and whether you could target new and, as yet, untested customer segments. Increasing your online presence to sell more through e-commerce channels is another option. If you can reduce your reliance on a single income source, this reduces the risk level and strengthens your resilience against sudden market shifts or economic downturns that might, potentially, affect one area. 3. Make your operations more agile and efficient A key part of any strategic review is to focus on driving operational efficiency in the business. Review your operational workflows on an ongoing basis and look for inefficiencies you could remove, or efficiencies you could add. Embrace flexible models, like outsourcing or adaptive supply chain strategies . This gives you the agility needed to adjust your production or service delivery in response to changing demand or disruptions. 4. Strengthen your customer and supplier relationships Trusted relationships with your key stakeholders are a vital element of broadening your network, adding stability and making the company a stronger proposition. As part of your strategic review, analyse your existing customer relationships and supplier relationships . Look for simple ways to strengthen and nurture these connections. Customers want to feel valued, and suppliers are always looking for ways to build greater trust. So, make sure you’re building bridges, communicating openly and nurturing these critical relationships. 5. Invest in technology and data analytics Digital technology forms the foundations of any forward-thinking small business. Collecting and analysing data gives you the foundational information needed to make informed decisions during your strategic review. Use the latest data analytics tools to review market trends, customer behaviour and your own internal performance as a business. These outputs will provide actionable insights, making it easier to define your strategy and change direction. Let’s review your business strategy Doing business is unpredictable at the best of times. But taking the time to review your performance, strategy and business plan is a vital way to reduce this uncertainty. Book in some time for a strategic review of your business and let’s work together to spot the inefficiencies and find the opportunities for diversification and increased efficiency.

Without your customers, you have no business. It’s their engagement, loyalty and sales that power your cashflow and drive the business to new heights. But when was the last time you reviewed your customer service levels? And how often are you talking to your customers to find out if they’re happy, satisfied and still true advocates for the business? Let’s dive into the power of great customer service and asking for honest feedback. Why is customer service so important? We live in a hybrid world, where customer interactions are as likely to take place online as they are in person. Customers follow you on social media and advertising can help you target specific customer demographics with almost forensic levels of detail. But people buy from people, and that’s why treating your customers in an open, honest and welcoming way is so vital to the success of your small business. What do customers want from your business? Customer needs drive your business strategy (and if they don’t, then it’s time to review your strategy!). But what does the average customer want from your business? On the whole, customers want: Reliability : Customers want your small business to consistently deliver on its promises, and to deliver your products/service on time, every time, without excuses. Personalised service : Customers want to feel known and valued as individuals. They like tailored solutions and responsive communication that’s aimed specifically at their needs. High quality : Customers expect your products and/or services to consistently meet or exceed their expected standards. They want their problem understood and solved, quickly. Clear communication : Customers like your communication to be clear, transparent and as simple as possible. They want to contact you easily and get prompt responses to all enquiries. Great value : Customers expect a good balance between price and quality. They want a product that adds value, but at a competitive price that they feel is fair. Key ways to find out what your customers are thinking Building relationships, understanding your customers and learning their basic needs sits at the heart of tailoring and updating your business strategy. So, how do you find out what’s going on in your customers’ minds? Here are a few ways to gather customer feedback and insights: Post-interaction surveys Once you’ve made a sale, send the customer a short, targeted survey. Use this as a chance to ask why they chose your product/service and how they rated the interaction. Keep it short and concise, but look for the service pain points and highlight any areas that could be improved. Engage on social media Actively monitor and engage with customer comments, mentions, and direct messages on your social media platforms. It’s a good idea to use polls or direct questions to gather opinions and collate more customer data. This shows customers their feedback is valued and acted on. Direct feedback forms/buttons Put easy-to-use feedback forms or feedback buttons on your website, app and e-commerce store. This gives customers a convenient, non-intrusive way to share their suggestions or report issues. It’s quick, simple and gives you instant direct feedback from your customer base. Incentivised feedback programs Offer small incentives (discount codes, loyalty points) for completing surveys or providing detailed feedback. This boosts your response rates and encourages customers to invest some of their time in offering constructive criticism. Personalised follow-ups For more complex services or larger projects, make sure you have post-project meetings or personalised email/phone follow-ups with the customer. This is a great forum for customers to give feedback and get the snags, frustrations, high points and wins off their chest. You’ll get deeper qualitative insights and it demonstrates a commitment to open communication. Start talking with your valued customers Get in touch Your customer base is one of the most valuable assets in your business. So, make sure you’re using every channel possible to talk to your customers and meet their expectations. If you’re looking for more advice on relationship building, please give our team a call on 01904 787 973. We’ll help you improve your customer strategy and nurture your relationships.

Making good business decisions is easier to do when you have excellent information at your fingertips – and that’s the value of having great reporting at the heart of your startup. Any cloud accounting software worth its salt will offer you straightforward ways to run your financial reports and track your important metrics. That’s standard in the new digital world. And this level of reporting gives you real, tangible data on which to base your decision-making. But good decision-making isn’t just about the numbers. As well as having an effective understanding of your finances, you need a sense of what's good for the business, how decisions will impact on your growth and what your future path looks like. Run management information at least once a month Modern cloud accounting software makes it easier than ever to run detailed, up-to-date reporting on your financial position. With the click of a button, you can run numerous in-depth reports and statements that show your past and future position. Doing this regularly gives you a wealth of financial information on which to base your decision-making and strategic thinking. At each stage in your startup’s growth, you’ll have to make important decisions about your next step – so, it’s important to think about the financial implications of any new projects, the amount of cash in the business and the availability of new sources of funding. Use metrics and projections to inform your decision-making Setting up a custom dashboard to monitor the most important metrics and key performance indicators (KPIs) is definitely a good idea. Most accounting apps will let you tailor your dashboard, so you can pick and choose from KPIs that are most relevant to your startup. Set clear and democratic targets for all of your main KPIs and track them on a weekly basis, so you’re monitoring the financial heartbeat of the business. If cashflow is looking poor, look at freeing up some cash, or borrowing money to fill the gap. If sales revenues are dropping, put some renewed vigour into your sales activity, or get a new marketing campaign underway to raise awareness of your most profitable products and services. Talk to your board and executive team when scenario-planning You may be the sole founder of your startup, or you may be part of a bigger team of co-founders. But the reality is that no one person can make all the decisions in a busy startup. To get the best overview of a challenge, or to come up with an effective way to grab a potential opportunity, you need to talk to your team – that’s the only way to get an effective consensus. Talk through the current threats and opportunities and run through as many different potential scenarios as possible. What’s the best-case scenario, and how can you achieve it? What’s the worst-case scenario, and how do you plan for it, if things don’t go according to plan? Work closely with an experienced external adviser When you’re working in the business 24/7, it’s hard to see the business in an objective way. Your judgement on some issues can be overly emotional and clouded by internal or political factors. Working with an experienced accountant, business adviser or business coach brings a fresh perspective to the business – both financially, strategically and emotionally. Having a trusted external accountant on the team definitely helps you get your numbers straight. But they can also bring their knowledge and experience to bear on your strategic thinking, your decision-making and the impact of the business on your own mental health and wellbeing. You can open up to them about your worries, share your aspirations for the business and bounce strategic ideas off them – taking some of the pressure off your shoulders. Track how you’re measuring against your goals To meet your goals and make good business decisions, it’s helpful to monitor and track your progress against these targets. If you refer back to your reporting and KPI metrics, you can easily measure your performance over time – and take action if progress is starting to slip. Areas to keep an eye can include your: Cashflow position – to make sure there’s enough cash in the business to keep your project moving forward and heading towards the agreed end goal. Sales figures and revenue – so you can see how you’re tracking against your sales targets and if the intended revenue from the project is being achieved. Budgets and expenses – to check that you’re not overspending on your project and that the team is being sensible with costs, expenses and essential overheads. Gross margin percentage – so you can keep the business profitable and aim to meet your profit targets for the period, or year-end. Growth against targets – to keep the business performing well and growing at the rate you predicted to meet your growth target for the period. Making a few bad decisions along the way is all part of the learning process. But by monitoring your performance and talking to the best advisers, it’s easier to keep the business on track. If you’re at the early stages of planning out your business idea, give us a call or book a call with Donald Inglis . We’ll help you set up the best possible management information, to help guide your decision-making.

Making Tax Digital for Income Tax (MTD for IT) is being introduced from 6 April 2026. If you’re a sole trader or landlord, this will mean complying with the new rules around keeping digital records and submitting quarterly digital updates to HM Revenue & Customs (HMRC). However, there are potential exemptions to the new MTD for IT rules. So, it may be that you can, for the moment, escape the mandatory move to digital tax returns. Let’s see who will have to use MTD for IT, and who won’t be required to sign up. Who WILL need to use MTD for IT? MTD for IT is being introduced in a number of phases, starting with sole traders and landlords from the start of the 2026/27 tax year. It’s mandatory to use MTD for IT if all of the following apply: You’re a sole trader or a landlord registered for Self Assessment You get income from self-employment or property, or both Your qualifying income is more than £20,000 There’s more info here on what qualifying income is included. Who will NOT need to use Making Tax Digital for Income Tax? Not all sole traders and landlords will need to use the new MTD digital system. You’ll be exempt from using MTD for IT if: You meet certain conditions that make you automatically exempt from using the service You have applied for an exemption and HMRC approves your application Your qualifying income is £20,000 or less When will you need to begin using MTD for IT, if eligible? The qualifying income threshold for MTD for IT begins at £50,000 for the 2024/25 tax year, and will drop progressively over the next three tax years. If your qualifying income is over: £50,000 for the 2024 to 2025 tax year, you will need to use it from 6 April 2026 £30,000 for the 2025 to 2026 tax year, you will need to use it from 6 April 2027 £20,000 for the 2026 to 2027 tax year, where the Government has set out plans to introduce legislation to lower the qualifying income threshold. Business partnerships will be required to use Making Tax Digital for Income Tax in the future. The timeline for this is yet to be announced by HMRC. Talk to us about getting ready for MTD for IT You’ll start using MTD for IT once you submit your first Self Assessment tax return. However you can choose to sign up to the MTD scheme early, if you want to. Call our team on 01904 787 973 if you want ot learn more about Making Tax Digital and how we can help you select the right accounting software, understand the MTD rules and get ready for the start of MTD for IT.

Keeping on top of your cash flow is even more important during tough economic times. With global uncertainty, recent high inflation, energy prices soaring, and supply chain challenges, cash is likely to be tight over the coming year. Cloud technology and fintech apps can give your business the best possible control over its cash. Why is cash flow so important? To keep your business operating, you need enough money coming into the business to cover your outgoings – with enough surplus cash to deliver a profit. In recessionary periods, consumers have less disposable income to spend on your products and services. Business customers will be looking to rein in their spending on suppliers. As a net result, your business is likely to make fewer sales and will bring in smaller revenues. This means: Reduced income coming into the business Less cash in the business to cover your operational expenses Not enough money in the bank to pay suppliers, utility providers or payroll costs In the worst-case scenario, insufficient cash flow for you to continue trading What can you do to improve your cash flow situation? The more informed you are about your cash position, the more you can do to prepare for any cash flow gaps. It’s this foresight that can make all the difference when you’re battling against tough external economic forces and a downturn in sales. If you want to safeguard your cash flow, these are some sensible steps to take: Switch to cloud accounting – accounting and finance technology has moved on in leaps and bounds in the past decade. The best cloud accounting platforms all offer a detailed reporting of your cash position. These software tools will generally offer real-time data, giving you up-to-date cash numbers. Integrate with cash flow forecasting apps – cloud accounting platforms let you add third-party apps to create a custom app stack of helpful business tools. There are plenty of cash flow forecasting apps to choose from, giving you the ability to predict your future cash flow position. Plan ahead for the cash flow gaps – when your forecast shows a shortfall of cash coming up, that’s the time to take evasive action. If you can see that there’s a cash hole approaching next month, it’s time to look at ways of raising extra finance to fill that hole. That could mean extending your bank overdraft, taking out a small business loan or taking out an invoice finance facility with a lender. Look for opportunities to cut your overheads – one way to even up your cash flow is to cut down on your expenditure. If you can cut back on overheads, expenses and unnecessary costs, this can help you rebalance your cash position, even when cash flow is getting tight. Look for cheaper suppliers, buy in smaller quantities and take every opportunity to cut costs and keep your spending more sensible. Update your prices and your sales strategy – raising your prices is one way to bring in more cash, with the same volume of sales. But it's a balancing act. Putting your prices up can alienate existing customers and could see you losing customers, but if you can find the sweet spot for your pricing AND also drum up more sales, you can quickly increase revenue and give your cash inflows a healthy boost. Review your cash flow reports regularly – it’s important to look at your cash flow numbers and reporting regularly, not just at period-end. This is particularly important when economic times are tough. With the most current cash information to hand, you can make informed business decisions and aim to keep the business operational. Talk to us about updating your cash flow processes With your business in a healthy cash flow position, you give yourself some solid financial foundations for riding out the global recession. No business is invulnerable in these conditions, but with liquid cash in the business, you have more flexibility and more capital to play with. Book a meeting and let’s see how we can improve your cash flow processes .