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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 .

It’s a tough time to be in business. And especially so if you’re a mature, established business that’s finding it hard to keep pace in the rapidly changing market. As a mature owner, you have experience and knowledge on your side. But you’re also faced with the new realities of transformative AI technology and a global economy that’s increasingly unstable and unpredictable. Why are these challenges so problematic? Let’s look at the potential impact. A new business reality When you started out, the business world was probably a more predictable beast to tame. Technology was here to assist us, not replace us. Markets were more stable and supply chains were reliable. But that cosy existence has changed – and it’s making it much harder to do business. That’s bad news if you’re aiming to: Grow the business and increase sales revenue. Sell the business and get a good return on your investment. Hand the business to the next generation in good shape. The challenges for mature businesses Trading, when the world around you is changing, is difficult. It throws up some specific challenges that could have a major impact on the future of your business. Staying competitive and efficient Cloud tech, automation and now artificial intelligence (AI) have changed the technological landscape. If you aren’t abreast of this technology, you can quickly lose your competitive edge. Planning your strategy The business landscape is no longer stable. Global events can change the economic outlook and the validity of your strategy in a heartbeat, making it hard to plan ahead. Three ways to optimise your business in 2025 To overcome some of the potentially negative impacts, it’s important to remain agile. Let’s look at three ways you can help to embrace the new reality. 1. Champion AI, automation and digital technology Get on board with AI and digital tech. AI can either be your worst enemy or your biggest asset. Fall behind the technology curve and your competitors will overtake you. Embrace the best elements of AI and it could transform your operations and productivity. When used well, and with a proper strategy behind it, AI has the potential to make your business more efficient and make it cheaper to run. 2. Focus on human skills and talent Technology is brilliant for speeding up the running of your operations. But it’s also vital to recognise the contributions of key human skills and the talent of your team and workforce. Your people are the face of the company and a large element in defining your brand. They’re the creative centre, the ideas hub and the humanity that brings your business to life. Never underestimate the impact of real, genuine, human customer service. 3. Balance your use of AI and human skills AI can help to run the business, but you also need a talented team driving the company. The sweet spot is to balance these two different factors making sure you have human oversight over your AI. Maximise your use of AI, software automation and digital technologies, but also invest in people, raw talent and the capabilities that a human team brings to the table. Talk to us about optimising your business If you’re feeling like the business landscape is speeding past you, leaving you trailing in the wake of technological, environmental, political and economic change, you’re not alone! Many experienced business owners are feeling the same way – and have the same concerns around how they’ll be able to sell their business, or pass it on to their successor. Come and talk to the team and we’ll walk you through some simple, straightforward steps to help you change course, optimise your business and embrace the new reality. Call us on 01904 787 973 or book a discovery call with Donald Inglis .

At the early stages of your start-up journey, access to credit can be a lifesaver. Cash flow is tight, customer revenue can fluctuate wildly and large-scale bank loans and external funding may be in short supply. In this situation it might seem counterproductive to apply for a business credit card – a move that adds to your debt level. But, in fact, applying for a company credit card and using that credit facility responsibly can have a hugely positive effect on your ability to fund your growth and access lines of credit. Let’s explore five ways that a business credit card can improve your funding 1. Builds up your business credit profile When you use a business credit card responsibly, and pay off the repayments each month, this starts to build up a credit history for the company. This credit profile is directly linked to your business and is separate from your own personal credit. Having this credit history (and the associated business credit score) is crucial when applying for business loans and accessing future, large credit lines. 2. Establishes you as a responsible borrower Paying your credit card bill on time each month demonstrates your financial discipline and an ability to manage debt in a responsible way. When applying for loans, bank overdrafts and trade credit, lenders want to know that you’re a low-risk business to lend to. Responsible payment behaviour acts as an indicator of trustworthiness for future borrowing and will increase your chances of successful funding. 3. Provides a flexible line of credit Having a business credit card makes it easier to cover your expenses and overheads. A credit card gives you flexible, accessible funds for your day-to-day operational needs. It’s also an excellent way to cover any unexpected expenses or cashflow gaps. Managing this line of credit also prepares you for larger, more formal, credit facilities. 4. Demonstrates a prudent use of credit Your credit utilisation rate is a key metric that credit reporting agencies will be interested in. By not maxing out the available credit on your credit card, and keeping utilisation low, you can show that your business manages debt in a sensible way. This marks you out as a low-risk borrower – a key factor in accessing further credit, business finance and investment.. 5. Acts as a gateway to more favourable terms By being responsible with your credit use, you set the foundations for a business credit profile. A solid track record with a business credit card may lead to pre-approved offers for larger credit lines, better interest rates and more flexible terms from banks. This is incredibly helpful as you scale the business and need additional funding to drive your growth journey. Talk to us about applying for credit and business finance If your startup is in need of an increased cash runway and improved access to credit, applying for a business credit card is an excellent way to improve your financial flexibility. Get in touch 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 talk to the team about ways to embrace this kind of credit then book a discovery call with Donald Inglis .

You’re passionate about your business. But what other areas of life are important to you? Running a business can become all-consuming, if you let it. That’s why it’s crucial to focus on your work/life balance, reduce your stress levels and make time for other passions in life. In this series, we’ll look at the core ways your business can be structured to deliver on your own personal, family, philanthropic and leisure goals, now and into retirement. Managing your time to balance work and play Four in five small business owners said they are experiencing poor mental health, according to a 2021 survey by iwoca and Mental Health UK . Being the boss can be extremely stressful and can have a detrimental effect on your mental health, as a small business owner. To combat this, it’s vital to spend some of your time away from the business, doing things that help you spark joy, relax and reduce those stress levels. Let’s look at five tactics for boosting your work/life balance Schedule dedicated time off in your diary Scheduled time away from the business is just as important as scheduled meetings. Block out specific times in your week for family time, hobbies or exercise. Treat these blocks of ‘no work time’ with the same commitment as your usual business obligations. Turn off work-related notifications on your phone and mentally disengage from work during these periods, so you can focus on the activities that help you relax. Prioritise leisure and family during the working week Don’t wait for the weekend to do what you love and spend time with your family and friends. Weave in shorter bursts of enjoyable activities throughout the week. This could be a family dinner, a mid-week sporting activity, or dedicating a few hours to your favourite hobby after work. Make leisure a regular part of your routine, rather than an occasional treat that you dangle like a carrot while working long hours and heading closer to burnout. Dedicate time to your hobbies and creative pursuits Make time for activities that you genuinely enjoy outside of work. This could be reading a novel, painting, playing a musical instrument, gardening, or even writing your memoirs. It’s hard to stay focused 100% of the time on the business. Hobbies provide mental stimulation, reduce stress and help you ‘turn off’ and remove the boss’s hat. Coming back to your desk feeling happy, relaxed and rested helps you become a better boss and leader. Give something back with charity work You may have a cause, charity or social enterprise that you truly believe in. Schedule time for volunteering and doing your bit for the local community. Giving back to the community can provide a great sense of purpose beyond your business success. And working with charities and social enterprises also offers a valuable perspective shift, allowing you to view the world without putting it through the lens of a business owner. Focus on wellbeing and mindfulness It’s vitally important to be able to step out of ‘work mode’ and to relax. Create a deliberate routine to help you transition from work mode to personal time. This could involve a short walk, listening to music or spending more time with family when you first get home. These rituals signal a mental shift away from work and help you be more present in your non-work activities – helping you to de-stress, relax and gain a deeper perspective on life. Achieving a rewarding work/life balance A relaxed and happy business owner is an asset to your business, and makes you a better person for friends and family to be around. Being able to balance out your work time with your leisure time is an intrinsic part of finding happiness as an entrepreneur. Get in touch 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 .

Your business may compete head-to-head with a number of other companies, but this doesn’t mean you have to treat ALL other businesses as if they are the competition. In fact, there are real benefits in creating strategic alliances with other like-minded organisations. When you look at the wider marketplace, you’ll see that there are businesses out there that may well compliment your offering. And by working together (rather than against each other) it’s possible to become valued strategic partners, collaborating to serve your joint customers, improve brand awareness and, ultimately, expand your target market. If this sounds like a positive strategy, now’s the time to do your homework and start hunting down the best strategic partners for your business. Working to serve a shared customer base Strategic partnerships are all about finding the common ground between you and your intended partner – and this means finding the best ways to combine your efforts. If you can share the same customer audience, and create a complimentary way of meeting their needs, that creates a broader, more connected way of growing both companies. Finding a company that’s interested in forming a strategic alliance 1. Find partners in complementary sectors If you’re an accounting firm, like us, it makes sense to partner with solicitors, lawyers and other professional services providers who can help your clients. If you're a maker of shoes it makes sense to partner with a clothing manufacturer that shares your same sense of style and purpose. The key here is to find a shared audience or customer need, and to create some real synergy between your two businesses. 2. Take part in business networking and events To get a wider understanding of your local, or industry specific, business network, it’s worth taking part in plenty of online and offline business events. You’ll meet new people, hear about new brands and will find it easier to find your ideal strategic partner. The wider your business network, the more choices you have for an alliance. 3. Look at crossover between your target audiences Once you’ve found a potential strategic partner, it’s important to take a detailed look at the crossover between your partner’s audience and your audience. Do they shop through the same channels? Do they fit a certain age group or social demographic? Are these customers local, or are they part of a national or global online customer base? How large is their database? 4. Cross-reference your customer databases By sharing and comparing your client relationship management (CRM) data, you can cross-reference both sets of customer data and see where there’s overlap, or where you may already share some of the same customers. The better you understand each other’s customers, the more likely it is that you’ll find some common ground for shared marketing and promotion. 5. Run joint events and promotions Presenting joint webinars with your strategic partner, or running joint promotions. By finding a common theme, you bring both audiences together and reinforce the alliance between your two brands. You also reduce the expenditure by sharing the costs and reach a wider audience. 6. Combine your R&D efforts To move your alliance forward, you can also try combining your research and development (R&D) activity, to find new products, new services and new ways of keeping your joint customers happy. By sharing the time, costs and effort of developing new offerings, both companies will benefit – and you keep your businesses at the cutting edge of their respective sectors or specialisms. 7. Look for other opportunities Can you link to each other on your websites, or as an upsell or cross sell when a customer is buying. Could you promote their product or service directly whether by email, social media marketing or at events and can they reciprocate? Don't think of it as a once and done, look for ways to continue the collaboration and grow both businesses moving forwards. Closing thoughts Building strategic partnerships is not just a smart move – it’s a way to future-proof your business and broaden your impact. By working alongside like-minded organisations, you can open the door to new markets, enhance your brand reputation, and provide greater value to your shared customer base. The key lies in nurturing genuine collaborations that go beyond one-off promotions and create lasting, mutually beneficial relationships. So, take the time to choose your partners wisely, invest in the connection, and watch as your businesses grow stronger together.

Access to additional funds is what allows you to invest in your business and grow the company. But to be able to borrow from lenders it’s vital to have a good business credit score. So, what is a business credit score and how is it calculated? And what proactive action can you take to improve your all-important credit profile What’s a business credit score? Your company’s business credit score is a measurement of your creditworthiness as a company. In other words, it gauges how risky you are to lend to, based on factors like your credit history, payment history, cashflow position and publicly available information like your accounts. A low score means you’re classed as high risk. A high score means you’re low risk. Who gives the scores and what do they mean? Credit scores are calculated by the major credit reporting agencies (CRAs). These are agencies that collate financial data and information to make informed assessments of your risk rating. Each CRA uses slightly different metrics and scoring scales, with some using a 0 to 100 scale, some a 0 to 1000 scale and some a 0 to 300 scale. But the Experian scale of 0-100 is one of the most commonly used. Key ways to improve your credit score If you fall into the high-risk category, you’ll find accessing finance – like bank overdrafts, business loans or asset finance – extremely difficult. If you fall into the medium-to-low risk categories, access to finance will be much easier. To increase your ability to borrow money and access credit, it’s important to be proactive about managing and improving your business credit score. Five ways to boost your credit score Pay your suppliers and bills on time Make sure you always pay invoices from suppliers, utility companies and other creditors on or before their due date. This shows your financial management is reliable and responsible – a key factor in building a positive business credit history with the CRAs. Keep your credit utilisation low If your business has existing credit facilities, aim to use only a small portion of the available credit limit. High credit utilisation can have a negative impact on your score, and suggests a high state of ‘financial distress’ to potential lenders and credit providers. Establish trade credit with your suppliers Agree on trade credit terms with your suppliers and make sure you settle the bills on time. These payment histories are often reported to credit bureaus and can be a significant factor in building up a positive business credit profile, especially for newer enterprises. Monitor your business credit report regularly Obtain copies of your business credit report from relevant agencies (like Equifax or Illion in Australia) to check for inaccuracies or errors. Addressing any negative information promptly can prevent it from further harming your credit score. Avoid defaults and public record filings Minimize the risk of defaults on loans or other financial obligations, and be mindful of public record filings like court judgments or bankruptcies. These events can severely damage your business credit score and make future borrowing difficult. Get in touch to talk about your business credit score There are plenty of options for checking your business credit score and getting a solid overview of your credit profile as a business. Talk to the team about signing up for regular credit reports and how we can help you monitor and manage your credit score. Give us a call on 01904 787 973, or book a call with Donald – we’re here to help.

Artificial intelligence (AI) has surged in popularity among business users over the past few years, with many small businesses now making AI a central part of their systems. But AI isn’t just about having some machine learning capabilities hidden away in the background. There are now full fledged ‘AI agents’ on the market. But what is an AI agent ? And how can adding these digital workers to your workforce help you scale, boost efficiency and become a more effective business operation? What is an AI agent? An AI agent is a digital entity that can carry out tasks to achieve specific operational or business goals. Unlike basic AI, which follows predefined rules, AI agents can learn, adapt and make autonomous decisions, mimicking our own problem-solving skills. Think of your AI agent as a digital member of the team. A worker that can be entrusted with a specific task – like answering your business phone, or completing your bookkeeping. Let’s take a look at five areas where an AI agent could be helping your business 1. Procurement and cost management AI agents can work in the background to automate selection of suppliers, negotiate contracts, and monitor inventory levels. This helps you optimise your pricing, find the best supplier contracts and reduce your overall procurement costs. GEP's AI agents help with supplier relationship management, automate your key procurement tasks and improve logistics, making your whole procurement process more efficient. 2. Client service and reception Customer service AI agents are available 24/7 to provide AI-driven support, handle routine enquiries and personalise the way you interact with your customers. They can manage appointment scheduling, greet virtual visitors and route calls to the most relevant person. HubSpot's Breeze Customer Agent can resolve routine FAQs, provide instant support and integrate with your CRM system to make those interactions seamless and personalised. 3. Sales and marketing Sales and marketing AI agents are designed to automate your lead generation and personalise the company’s marketing campaigns. They can even analyse customer data to spot likely sales opportunities, boost conversion rates and drive up your revenue. Salesforce's Agentforce can streamline your marketing operations in a number of different ways. Agentforce crafts campaign briefs, breaks down target audience segments and even generates initial drafts of marketing emails. 4. Finance and accounting Finance-focused AI agents can automate many of your basic bookkeeping tasks, including invoice processing, expense tracking and bank reconciliation. This is great for reducing human errors and giving time back to your finance team. They can also generate cash flow reports, assist with budgeting and improve your overall financial management. AppZen’s agent can automate manual accounts payable processes, optimise your financial decision-making and predict potential cash flow issues. It integrates with your existing financial systems to give you a completely transparent view of your financial health. 5. HR and people management AI agents can automate many of your basic human resources (HR) tasks. This can include onboarding new starters, training staff, processing payroll and benefits, and answering HR queries. This gives time back to your HR team to focus on higher value tasks. Leena AI provides an AI-powered virtual assistant that’s a central point of contact for employees. It can quickly answer HR-related questions, reducing the burden on your HR team. Talk to us about making AI agents part of your business Want to make the most of AI, but don’t know where to start? In this series, we’ll run you through the basics of AI, the main terms and the AI tools and agents that can transform your business. And if you’re hungry to know more, why not talk to our team about the AI agents and AI-driven apps that would be most appropriate for your industry, niche or business type. Give us a call on 01904 787 973, or book a call with Donald – we’re here to help.