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May 202621

Cashflow Success

cashflow, cross accounting news, general business

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.   

Businesses are struggling more than ever to just stay afloat with increases on supplier costs, energy, bank interest charges and national insurance changes.   None of us know when things will improve, but there are things we can do ourselves to make it a little easier to trade.

Tracking 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 plus inflation to increase sales, or a advertising campaign will potentially could increase your turnover.  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.  Its an estimation at this stage, but the more you do it, the more you can more accurately predict the pattern.

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 HMRC.

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.   Comparing predicted with actual you can look into the reason why you made target, or why you didn’t.    It makes for better decision making.

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 are more likely to fill the gap with what you need.

You might be wanting to buy capital expenditure, or take on more staff to run a project, 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.  The latest budget changes was an estimated 5% change to everyone costs.  Did you put that into your forecast.  

Keep a close eye on the costs themselves, are you spending money on something you don’t need, or can a piece of equipment help you do it quicker and more efficiently.

Tracking everything,  yes its time you may not even have.  But if you get yourself into a routine,  it just becomes part of your day to day.  

Companies who track and plan ahead tend to more frequently ride these storms more successfully, than companies that don’t.

Don’t let the fact that you may be a small company put you off.  This applies to you just like a large company.

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

Put in family or your own money.   (MLR rules apply)

Gain credit from your suppliers

Finance leases from the banks and other money lenders

A credit card you pay off every month

A mortgage

A business is like a plant.   Its needs feeding from time to time, to see it bear fruit.

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.

Gaining credit and paying it off on time increases your credit score and therefore your buying power.    you can easily track your credit score online now so how its looking.   Definitely important if you are applying for a loan or mortgage.

Even if you only use a credit card temporarily it can make all the difference.

We provide a simple template to our clients who ask for one.  Its easy to use and clients have found it so helpful.  Give it a go, you may find you get that goal achieved in a short space of time.

Were certainly working on ours for 2026.

Apr 202609

Collaboration

cross accounting news, general business

Spring has very definitely arrived, the garden furniture is starting to come out. Everyone is looking to be very cheerful.   Winter is very much behind us.

 

It is one of my favourite times of the year I love the change of the season, pink blossom, the change of food offering.  

 

I wanted to talk to you about collaboration, we at Cross Accounting Service could not have enjoyed our success over the years without building up and keeping in touch with our wide network of colleagues and friends.  So I wanted to share this bit of good news with you.

 

For my industry being an Accountant in what is a highly competitive market, there are literally hundreds of accountants in my area of South Wales.  I keep an eye on who is the competition and who is setting up that’s new in my area.

I thought about 2 years ago, what if I dont offer all the services my clients, or potential clients want who could I talk to that does?

 

I needed to connect with a larger company than myself who had access to a wider range of services that maybe my company doesn’t offer, and vice versa a company that would refer back to me in return.   I found that very company, not only do I have someone to pass on work that I myself don’t do, they also send over work to me, what a great arrangement, they are also a great sounding board for me which I value very much. 

 

My other network contacts, we meet regularly for lunch, not only do we have a great synergy with our businesses, but that wider network will refer to you if they get to know you, you will find work for places you never thought you hear from.

 

In these times of high competition it is important to share to word about your brand and business, you cant do it all by yourself it will just take far too long.  So go on take the risk, build up that network, make an arrangement with a competitor, you never know where it will take you.

 

 

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.

Dec 202505

Are you ready for Making Tax Digital in April 2026?

budget, general business, self assessment, tax planning
Making Tax Digital for Income Tax is one of the most significant changes to the UK tax system in decades and it becomes mandatory from April 2026 for anyone earning over £50,000 from self-employment and property income. 

This new system will replace the traditional once a year Self-Assessment with a fully digital approach to record keeping and reporting. Instead of a single annual return, affected taxpayers will need to submit quarterly updates and in some cases two sets of quarterly updates if they have both business and property income, along with a final end of year submission. 

With HMRC tightening compliance checks, increasing documentation requirements, and placing much more emphasis on accurate digital records, now is the time to understand what’s changing and prepare your systems before the deadlines arrive.

What does this mean for sole traders and landlords


From 6 April 2026, MTD for Income Tax becomes mandatory for individuals whose gross income exceeds £50,000 (in the 2024/25 tax year).

If your total gross income passes £30,000 in 2025/26, expect the requirement to apply from April 2027 and a further drop to £20,000 is stated for April 2028, meaning most people will eventually fall under Making Tax Digital.

You must keep digital records of income and expenses. For each business, whether self-employment or rental, you will need to send a quarterly update. At the end of the tax year, a final, full digital tax return must be submitted taking into account all income sources.

Here’s how that works depending on your situation:
  • If you’re a sole trader only: 4 quarterly updates + 1 final return = 5 submissions per year.
  • If you have property only: 4 quarterly property income updates + 1 final return = 5 submissions per year.
  • If you both trade AND rent out property: 2 separate sets of quarterly updates (one for business income, one for property) + the final combined return = 9 submissions per year.

Why are HMRC doing this?


The push behind MTD is for greater data, greater transparency, and fewer surprises for both taxpayers and HM Revenue & Customs.

Many sole traders and landlords are still unprepared. One recent survey showed that a significant number remain unaware of the upcoming changes, still rely on spreadsheets or paper, and underestimate the time required for digital record keeping.

HMRC will now expect full digital records, including income and expenses tracked through compatible software, casual bookkeeping (bank statements and spreadsheets) won’t be enough.

How can we help? We are fully MTD ready


As your accountant of choice, we’ve already taken steps to implement MTD compliant processes and software. 
  • We’ll set up software to manage your income and expenses digitally.
  • Keep separate records for self-employment and property.
  • Submit quarterly updates on your behalf.
  • Handle the final year end return and adjustments, including other income types like PAYE, dividends, interest and capital gains etc.

It is a lot, but it also means no more scrambling at year end time and no surprise HMRC investigations and peace of mind that everything is done properly first time.

Act now – April 2026 isn’t far away


It may seem like plenty of time but once you think about the first quarter (April to June 2026), the first deadline (07 August 2026) and all the bookkeeping, it comes around fast. Getting organised now helps you avoid last minute panic and ensures you’re fully compliant from day one.  

For those of you having to start this process in the first batch April 2026 to June 2026. We have already been in touch to let you know you are in the list. We are still very much around for you, if you need to ask any questions on what has been the biggest change sole traders have ever faced.

MTD for Income Tax will bring extra work and more regular filings. But the goal is clearer financial records, fewer tax surprises, and smoother compliance with HMRC.

With the right software, the right support and the right accountant, you can turn this change from a burden into an opportunity to get your finances in order once and for all.

Let’s get ready, April 2026 will be here before you know it.
Nov 202527

Budget 2025: Key Points

budget, general business
The release of this year’s budget comes later than usual, building even more anticipation as businesses across the country have waited eagerly to understand what it means for them. Now that it’s finally here, we can dive straight into the key points, highlighting the measures and tax changes that will have the greatest impact on businesses in the new financial year.

Minimum Wage


Minimum wage will increase from April 2026. The hourly rate for over 21s will rise by 50p to £12.71. Workers aged 18-20 will be seeing an 85p rise to £10.85. With plans for all adults to be on the same hourly rate. 

See table below for a comparison of the minimum wage.

 

21 and over

18 to 20

Under 18

Apprentice

Currently

£12.21

£10.00

£7.55

£7.55

From April 2026

£12.71

£10.85

£8.00

£8.00

Tax Thresholds


The chancellor has confirmed that both income tax thresholds and the equivalent National Insurance contributions thresholds will remain frozen for a further three years until April 2031.

That means the tax-free income threshold (our Personal Allowance) stays at £12,570. The last time the Personal Allowance was increased was prior to 2021, since then it has remained unchanged. 

If your total income in a tax year is £12,570 or less, you pay no income tax. Only the portion above that is taxed, so, someone earning £30,000 would pay income tax only on £17,430 at a rate of 20%.

Tax rate depends on your taxable income.

 

Taxable Income

Tax Rate

Personal Allowance

Up to £12,570

0%

Basic Rate

£12,571 to £50,270

20%

Higher Rate

£50,271 to £125,410

40%

Additional Rate

Over £125,410

45%

Pensions


Starting April 2029, the amount that can be paid into a pension via salary sacrifice while saving on National Insurance will be capped at £2,000. Any contributions above this limit will be treated like standard employee pension payments and will save on Income Tax and not National Insurance.

According to the OBR, removing these tax advantages from salary-sacrifice pension arrangements is expected to generate an additional £4.7bn in National Insurance revenue.

Individual Savings Accounts (ISA)


An ISA is a type of savings account where the interest you earn is completely tax-free. At the moment, you can save up to £20,000 each tax year in a cash ISA.

From April 2027, the Chancellor has announced that the annual cash ISA limit will be reduced to £12,000, the first decrease since 2017. The aim is to encourage more people to invest through stocks and shares ISAs instead.

These are the affects this will have:
  • If you’re 65 or over: Nothing changes. You can still put up to £20,000 a year into a cash ISA.
  • If you’re 64 or under: Your cash ISA allowance will drop to £12,000, but only for new contributions made from April 2027 onwards. Any savings already held in a cash ISA won’t be affected.
  • Stocks and shares ISAs: The annual limit stays at £20,000.
  • Overall ISA limit: Still £20,000 per tax year for everyone, meaning you can continue to spread your allowance across different ISA types as you wish.

Dividends, Savings Interest and Property Income


If you receive dividend income, your tax rates will increase from April 2026. This applies if you hold investments outside a stocks & shares ISA, your total income exceeds the Personal Allowance (currently £12,570) and your dividend earnings are above the annual dividend allowance (currently £500).

Dividend tax rates will rise by 2%: the basic rate will move from 8.75% to 10.75% and the higher rate from 33.75% to 35.75%. The additional rate will remain at 39.35%.

Savings interest tax rates will also rise but from April 2027. For those who do pay tax on savings interest, the basic rate will increase from 20% to 22%, the higher rate from 40% to 42%, and the additional rate from 45% to 47%.

Those earning income from property will see similar changes from April 2027. Although this income is currently taxed at the standard Income Tax rates, property income will be given its own set of rates. These will sit 2% above today’s general Income Tax rates: 22% for basic rate, 42% for higher rate, and 47% for additional rate.


The Chancellor confirmed that around 13 million pensioners will receive an above inflation rise to the state pension from April 2026. Both the new and old basic state pension will go up in line with average wage growth, currently 4.8% giving pensioners a meaningful cash increase.

If you’d like to discuss any part of the budget in more detail, please feel free to give us a call or send us a message, we’re here to help. You can read the full budget by clicking here. If you want support planning for the upcoming minimum wage increase and what it means for your business, we can guide you through the numbers so you’re fully prepared. Despite the challenges and changes ahead, keep pushing forward. With the right planning and mindset, we can all work towards a strong finish to 2025 and an even more successful 2026.

May 202530

Companies House ID Verification

business plan, general business

Original Post 30-05-2025 | Updated 21.08.2025


Big changes are coming to how company directors and individuals with significant control (PSCs) verify their identity with Companies House. As part of a major set of reforms aimed at increasing corporate transparency and accuracy in the register, identity verification will become a key requirement for many involved in running limited companies in the UK.


What’s Changing?

Currently ID verification is on a voluntary basis for:

  • Company directors
  • Individuals with significant control (PSCs)

 

From 18 November 2025, these requirements will become mandatory for all new company incorporations and new appointments. Existing directors will have 12 months to complete their ID verification from autumn 2025.


Who Will This Affect?

These reforms are expected to impact approximately 7.4 million existing directors in the UK. Anyone involved in managing a UK company, or holding significant control over one, will need to ensure their identity is verified through the new process.

 

It is not only directors and PSCs, third party agents who will be submitting information to Companies House on behalf of others, will now be required to register and verify their own identities.


Why These Changes Are Being Introduced

The enhanced powers granted to Companies House are designed to:

 

  • Improve the accuracy and integrity of company data
  • Enhance transparency around who owns and controls companies
  • Making it harder to submit false or misleading information

 

Requiring identity verification ensures Companies House can confidently identify who is filing information and acting on behalf of companies. It also allows for faster detection of agents who may be acting unlawfully, and appropriate action can be taken.


Authorised Corporate Service Providers (ACSPs)

In the future, all third-party providers (such as accountants, solicitors, and company formation agents) will need to register as Authorised Corporate Service Providers (ACSPs) in order to:

 

  • Submit information to Companies House
  • Conduct ID verification checks on clients

 

An ACSP must be a business supervised under Money Laundering Regulations.

 

We will be becoming an ACSP and will be providing this identity verification service to our clients. While official guidance and full details are still limited at this stage, we’ll be contacting everyone affected as soon as more information becomes available.

 

What should you do now?

  • Be aware that ID verification is voluntary for now, but will become mandatory by 18 November 2025
  • Start preparing for these changes, get your passport and driving licence up to date if they have expired
  • Keep an eye on updates from us

 

We’ll continue to monitor developments closely and keep you informed. Contact us at our Cardiff office or Bridgend office if you want to discuss Companies House ID Verification.

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