Hello and welcome to April — the start of a brand-new financial year! As always, this time of year brings fresh updates from the Government and one of the most notable changes on the horizon is HMRC’s ‘Making Tax Digital’ for Income Tax Self-Assessment which is coming into affect from April 2026.  This is directly affecting small businesses trading through self assessment, and property landlords.

What’s Changing?

If you’re used to submitting a Self-Assessment tax return once a year, things are about to change. HMRC is moving towards quarterly reporting, much like what VAT-registered businesses already do. This means instead of sending in your figures once a year, you’ll now be expected to submit updates every three months, using Accounting software compatible with HMRC, the spreadsheet will become a thing of the past.

Who Does This Affect?

This will roll out in phases:

• From April 2026: If your total self-employed or property turnover is over £50,000, you’ll be required to comply.
• From April 2027: The threshold lowers to £30,000.

This applies to landlords as well as sole traders, so even if you're just renting out property and not running a business, this could still apply to you.

What Should You Do?

If you're likely to be affected, don’t panic. We’ll be in touch with you individually to discuss the best approach and make sure you’re set up well in advance.

It’s worth noting that HMRC has already changed the start date a few times, so we are still in the early days of implementation. Information is a little light at the moment from HMRC side of things, but we’ll keep you updated as soon as we know more.

Here to Help

We know this might feel like a big shift, and it’s perfectly normal to feel unsure about how it will all work. If this news has left you with questions or concerns, please call or message us — we're here to help guide you through it all.

Let’s make this new tax year a smooth one!

Filing your tax return as early as possible comes with several advantages. It removes the stress of last-minute submissions, allowing you to focus entirely on running your business. The self-assessment deadline of 31st January remains unchanged every year, yet HMRC reported that 2.6 million people had not filed their tax returns just two days before the deadline last year.

Missing the deadline results in an automatic £100 fine, with additional penalties for further delays. If your return is more than three months late, daily fines of £10 start accumulating—leading to significant penalties you’ll want to avoid.

You can submit your tax return as soon as April 6th, and filing early comes with a major advantage: you don’t have to pay your tax bill immediately. The payment deadline remains in January, giving you plenty of time to budget for what you owe. Plus, if you’re due a tax refund, filing early ensures you receive it much sooner—unlike those who file in January, when HMRC experiences delays due to high demand.

With a little organisation, you can get your paperwork sorted and your tax return submitted well in advance—leaving you free to enjoy the festive season stress-free. Filing correctly is crucial, as you don’t want to risk overpaying or underpaying your taxes. Seeking professional advice can help ensure accuracy and peace of mind.

Contact us on www.crossaccountingservice.co.uk if you have any concerns regarding your tax return as we are always here to help.

During the pandemic, we have seen an increase in holiday lets. With the restrictions to go abroad, a lot of people have been having a ‘Staycation’ exploring the wonderful options we have in the UK. 

If you have just started out renting homes or holiday lets, there are a lot of rules for these. HMRC are very strict when it comes to rentals. Replacing items need to be based on a like for like, is the property being improved, all these things need to be taken into consideration 

With self-assessments, we are seeing a lot of husband and wife ownership of property currently that don’t realise that both parties need to complete a self-assessment. If rent is being received or if a property has been sold it all has to be declared regardless of your other income.  

If both parties are named on the land registry, you both need to complete a self-assessment return. Unless you have seen a solicitor to change your set up with land registry, any property with joint names is classed as 50:50 ownership. Even if one person has the most interest in the property, all named people on the land registry will have to send a return to HMRC.

It is important you read up the rules on taking income from property, whether it is long term rental or holiday let ownership. The number of people we see not declaring income and then having the shock of HMRC writing to them asking for back dated returns is increasing.

HMRC do have the full facility to check land registry registers and transfers of land ownership. Backdating these returns can be costly for the owner and cause a lot of unnecessary stress.

We are here if you need to query anything regarding your property ownership.

Happy New Year to you all, we hope you’ve had a lovely Christmas. It’s the New Year but some things remain the same, and that’s the deadline of 31^st January for Self-Assessment returns.

Self-Assessment is a system HMRC uses to collect tax. For people who are self-employed, with their own business or others who make additional income. 

The dates for Self-Assessment is 

1^st April 2016 to the 31^st March 2017. With online returns needed to be submitted by

31^st January 2018 and paper returns to have already been submitted by 31^st October 2017.

The best way to keep the tax bill down is to have your paperwork organised. You will need the actual receipts to claim as expenses. Collate your receipts and keep together as HMRC can ask to see evidence at any time. Another great way is to utilise the ISA savings as any interest received is tax-free. You’ll keep your savings on a tax-free basis for as long as you keep the money in your ISA accounts.

Higher rate tax payers benefit from additional tax savings when they contribute in to pension schemes and give to charity.

An example of a list of records you will need are;

•          Business and personal bank statements
•          Records of income
•          Records of purchases
•          P60/P45
•          Rental Income
•          Interest Income
•          Child Benefit and Income Support

You need many other records to keep, here at Cross Accounting we give our clients a more in detail list of records which we require from them to complete their tax return. This also includes a reminder of approaching deadlines to ensure not to be penalised. HMRC fine £100 for anyone who misses the 31^st January deadline.

HMRC have revealed a record number of people are filing for self-assessment this year as the numbers are north of eleven million. If you’re a couple of years behind, then do not worry as you’re not alone, we have taken on a number of clients in this situation, and have supported them and brought them up to date. If you’re not sure if you need to submit a self-assessment or you need to complete a return, you can call us on 02920 653 995 or visit our website on www.crossaccountingservice.co.uk to see how we can assist you. 

Love is in the air this month, with Valentine’s Day just here .. and now is the time to give your business the TLC it also needs.

Investment. Investment in a business can be many things. It can be your investment of time and energy in nurturing your business as it grows. It can be working on your operations, improving your processes and making yourself more efficient.

Investment is money. The business may not be generating you the income you were expecting, so investing some money into the business to spend on a marketing campaign, or buying that piece of equipment that will make the operation run smoother may seem painful initially. We are still at the start of the New Year, getting these investment ideas up and running will be worth it in the end.

Now is the time to take a closer look at your customer base, are you meeting their every expectation? Is there something you are not currently offering that could add value, or which you can use to up-sell to increase your sales turnover? A business which knows their customers very well, and manages their expectations always succeeds.

Marketing. Take a look at your marketing strategy. If you are putting time and money into activities that don’t work, then you need to stop them! Only spend money and time on what works for your business. Measuring the success of your marketing is a very important exercise that needs to be done on a regular basis.

Processes. Is there something you are doing that can be done more efficiently? The difference between profit and loss can often be a case of the process being too cumbersome. So, streamline your processes to meet the changing needs of your business. This will become increasingly vital as your business grows. If you don’t manage your processes – you are guaranteed to waste money.

You the owner. Make sure you are taking care of yourself. If you are busy and stressed you will not have the mindset to focus on your business effectively. Watch your stress points and take regular holidays. I still see far too many clients visiting me looking completely worn out. It’s not good for you – and it’s definitely not good for your business.

Your business is an investment for the future, feed it and it will grow.

This blog is intended for information purposes only and is only advice from past experience, you may have other suggestions of your own. It is not intended to be used to make all of your business decisions but as a guide only.

Your year end can cost you more than you think

Preparing your year end accounts can be costly your business – and that’s before you’ve event considered the financial aspect.

In finding, organising and making sense of your paperwork and records, there are time costs, emotional costs (usually stress!) and work-life balance costs to consider.

15% off your year end with us

Cross Accounting Services can help on all fronts. We love year end and so as a thank you from us, we’re offering 15% off your first year end fees with us.

So, you get to spend time doing the things you love at a reduced all round cost – and we get to spend time doing the things we love, thanks to you!

Call Nicola on 029 2065 3995 and quote reference CA15 to receive your discount or email her asking for more information also quoting CA15 Closing date 31 March 2014

The Business Plan

9 April 2014

This blog is intended to explain the full potential of your business plan.

We have just updated our Business Plan and wanted to share some insights as to why these are important for the growth and success of your business.

You may have put one together when you started your business and it is now collecting dust in the drawer, next to the filing cabinet.

How about if we told you it can be adapted to be used as a positive tool to be developed as your business develops.

You maybe three years into your business, you have changed both as a person, and as a business in that timeframe. What was important three years ago, may not be so important, you may have other ideas, now you’ve dipped your toes into the world of entrepreneurship.

Why Do This In The First Place?

To focus on specific goals you wish to achieve, have something to aim for.

To take on a planned approach to your daily routine. The successful companies plan everything.

To know your customer better 

To know your competitors better 

To work on your threats and weaknesses . Stand out from the crowd.

Lets break it down.

Your Mission Statement

What do you want to be?

What do you want your business to be?

What is your Unique Selling Point, what is your business goal all about?

Why are you doing what you are doing?

Update the business plan with these new inspirational ideas.

SWOT Analysis

You have now been in business for while. You now have experience with what you are doing. You may have made some mistakes along the way, but have learnt from them using that knowledge to better use.

The SWOT analysis is all about where you are today, and how you compare with your expectations and more importantly against the competition.

Strengths - you have first-hand experience of running a business. What have you gained from your time doing it.

Weaknesses – you listed these in your first business plan, did you manage to eliminate some. Have you gained new ones?

Opportunities – No matter how big or small your business is there are always opportunities to promote and sell your product. Use your contacts you have now built up. They may be able to put some work your way. Give you access to that contract you’ve been chasing. Its not necessarily what you know, its who you know.

Threats – Whether you own the local shop down the road, or run a large corporation.

Three main threats to your business survival. The economic environment, cashflow and the competition. Embrace and learn all you can about them, be one step ahead.

The Products Or Services You Offer

What services or products do you offer ?

What is your Unique Selling Point ?

How saturated is the market place ?

How big is your market, what is your potential piece of the pie?

Is it local area or a global market ?

Can you make a profit from what you are doing?

The Marketing Strategy

How am I visible to the market place 

Website development 

Online presence 

Advertising in the local press 

The Directories 

Word of mouth 

Business contacts 

Referrals 

Looking at the competition and your customer base, the target market. This should be taking up the main part of your business plan Your strengths and weaknesses against the competition Your target market

How your marketing campaign has been working so far, track what works and what doesn’t. Some Number Work Set yourself a detailed budget and compare to actual figures Put together a cashflow statement.

Whatever youre doing always keep an eye on the cash and profitability.

Check and triple check your costings.

Nicola Cross 9 April 2014

This blog is intended for information purposes only and is only advice from past experience, you may have other suggestions of your own. It is not intended to be used to make all of your business decisions but as a guide only.

How Graphs Can Be Used For Your Business

Graphs can be used by Financial and Non Financial managers in a variety of ways.

Sales

Sales Managers have targets that are set for them by the company they work for.  They can track their sales in a variety of ways.

Our example shows Sales split by category/or segment and shown against budget. Targets that were set at the beginning of the year.

This graph also tells you the most popular and productive products on sale.
You can take this further and look at the margins of each product category, you might not sell a lot of something but if it returns a higher margin/profit rate, you don’t have to sell as many to get the same profit figures. There may also be seasonality in that product line.

Ie in hot weather a newsagent may sell a lot more drinks than bars of chocolate.
In cold weather the icecream freezer might go untouched. Easter, Half Term, Christmas. You would tailor your sales targets to match demand.

Apply this method to your particular product line.

 

Cashflow

You might want to set yourself a target bank balance for you to meet your overheads and make a profit.

The graph will show against budget whether you are meeting that goal.

It also gives indication of the business behaviour, see our example the graph shows above the line at first, then dips over February to April then comes back up.  Back into the target position and above.

If the graph had shown erratic it would give an indication of how well the manager is managing the business. In a planned approach, or finger in the air approach.

Gross Profit

This is a key figure in your accounts, it indicates whether you have made enough sales to now cover your overheads and make a profit.

Our graph shows a rise and then a sharp dip in May, this could be down to several factors.  The Sales themselves were generally low that month, an error in charging the right selling price for a new product line, an operational issue.

If you see a dip in any of these things, look for the reason, if easily explained, you could be putting action in to put yourself back on track.  Also look out for high peaks, these should be explainable.  ie a new contract, timing issues, seasonality, or it could be an error.

This blog is intended for information purposes only and is only advice from past experience, you may have other suggestions of your own.  It is not intended to be used to make all of your business decisions but as a guide only.

Tips To Cashflow Success

Cashflow funding of a business is key for its survival. A number of businesses fail within their first two years of trading, not because they didn’t have a good product or service, not because they didn’t have a market. They simply ran out of cash.

Sales Income

Prepare a detailed cashflow of your normal business trading, information from Sales already in your diary, if you have been trading for a few years. Use past history to project forward. For the new business set an achievable goal. Always look ahead a minimum of a year, three years if possible.

You may have peaks and troughs, downtime or seasonality, build these into your forecast.

Don’t forget VAT if that applies. Ideally shown it separately, and offset the VAT on purchases. Your sudden inflow of cash may belong to the Inland Revenue.

Your Costs

Main costs first

Materials
Wages
Rent
Travel etc.

At the bottom, how much do you have in the bank to start off with. Show the opening balance of the bank.

We always look at forecast cashflows, ie a budgeted one along with an actual one. As the months pass by update the cashflow with your actual figures and roll forward. So that you are always looking at a year to date. It does not necessarily need to be in line with your year end. Do a separate one for the year end if necessary.

By now you will know ahead of time your cashflow issues, peaks and troughs, you can now put a plan of action to make sure that you are covered in the troughs, and are saving in the peaks.

If you need a large amount of cash in six months time. Don’t leave the sudden influx of cash to the last minute. Build up over a period of time.

You might be wanting to buy capital expenditure, or take on more staff, it will help you predict when this can take place.

Look at your marketing to increase sales. Check your margins to make sure your sales cover your costs. Keep a close eye on the costs themselves.

Look at other options for finance other than your cashflows from the business.

Gain credit from your suppliers
Finance leases from the banks and other money lenders
A mortgage

Your credit score can even affect you being able to take on a large contract. You will still need the credit from your supplier to make that important sale.

By gaining credit it will increase your credit score and make you more attractive to lenders.

Nicola Cross
26/9/11

This blog is intended for information purposes only and is only advice from past experience, you may have other suggestions of your own. It is not intended to be used to make all of your business decisions but as a guide only.