Testimonials
[testimonial author]
Rated 5.0 on Quickbooks ProAdvistor
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As a sole trader, you have simplicity and control, but you’re also personally responsible for any debts. A limited company, on the other hand, offers liability protection, which means your personal assets are safer. Plus, you could save on taxes if your profits are higher.
That said, running a limited company involves more admin work and costs, like filing annual accounts. It’s not just about the numbers; it’s about what feels right for your business.
This isn’t financial advice, though. Always consult with an expert to find the best path for your situation.
Have you thought about which structure suits you best? Get in touch.
info@kcaccountancyservices.co.uk
01691 674792
Here’s what you need to know:
If you’re self-employed (sole trader):
– Pension contributions reduce your taxable profits
– That means less income tax and potentially less Class 4 NICs
– You still have full control — you can stop and start contributions depending on how your year is going
– You can contribute up to 100% of your earnings (capped at £60,000/year) and still get tax relief
This isn’t just about retirement – it’s a smart way to cut your tax bill while saving for your future.
If you run a limited company:
– The company can contribute directly to your pension — this isn’t taken from your salary or dividends
– It’s treated as a business expense, reducing your corporation tax bill
No National Insurance to pay on it either
– Again, up to £60,000 a year (assuming no carry-forward rules apply)
Even small, consistent contributions add up. A £500/month pension from your company could save you around £1,000 in corporation tax every year — and you’re still keeping the money (just for later).
A few rules to bear in mind:
– Your pension provider must accept employer contributions
– You need to make the payments before your company year-end to get the relief in that year
– You still need to stay within the Annual Allowance (£60k) and avoid the high-income charge if your total income is over £260k
I’m not a financial adviser – but I’ll work alongside one, or with your provider, to make sure the numbers make sense and the paperwork stacks up. This isn’t about chasing loopholes – it’s about using the system properly.
Want me us to model some options for your business? Get in touch
info@kcaccountancyservices.co.uk
01691 674792
To run a successful business, it’s not all about lead generation and chasing down those sales. Yes of course, you wouldn’t have a business without these things, but making time to review your business is essential to success.
Many business owners assume a bookkeeper is there to ensure compliance and make sure your accounts are reconciled from month to month. In fact we do so much more than that. At KC Accountancy Services we love to support our clients with their goal setting. Monitoring business performance is key to achieving those goals.
We hold our clients accountable by having quarterly meetings to review their KPI’s. You may not understand what all the reports are for in your accounting software or how to interpret them, but that’s where we come in. We’re on the journey with you, starting a new journey to success.
Get in touch today and find out more about quarterly business performance review services.
info@kcaccountancyservices.co.uk
01691 674792
In the run up to the event, the Chancellor stated that she ‘remains committed to one major fiscal event a year to give families and businesses stability and certainty on upcoming tax and spending changes and, in turn, to support the government’s growth mission’.
Download our guide to learn all about what was announced.
The new rules make provision for how employers must deal with qualifying tips, gratuities and service charges and for the Secretary of State to issue a Code of Practice to promote fairness and transparency in relation to the distribution of qualifying tips, gratuities and service charges.
Download our guide to learn all about the new legislation.
The run up to the end of the tax year on 5 April 2025 is a good time to check that your family and business finances are arranged in the best way possible. In this Year End Tax Planning Guide, we look at useful ways to take advantage of available tax reliefs and planning opportunities.
The Guide is divided into sections: planning points for companies and business owners; then points for families, couples and individuals. This is for ease of use, and there is inevitably some overlap.
We love becoming part of your business journey, getting to know how your business works and finding out what motivates you.
Our Management Reports service offers clients quarterly meeting to review performance, growth, profitability but also picking up on areas of weakness offering solutions to make changes before they have a detrimental effect on the business.
Don’t just take our word for it, hear what our clients who use the service currently had to say about the impact it has had in their businesses.
Many business owners find themselves scrambling in January, stressed about how they’ll cover their tax bill. But with a little planning, it doesn’t have to be that way.
By setting aside a portion of your income each month, you can build up your tax savings gradually. It’s a simple habit that makes a world of difference when the deadline rolls around. No panic, no stress—just peace of mind knowing you’re covered.
Need help getting organised or setting up a savings process?
That’s where we come in. We help business owners stay on top of their numbers, so 31st January is just another date in the diary. Get in touch with us today.
The government has announced that it will repeal the special tax rules relating to the commercial letting of Furnished Holiday Accommodation (FHL). The FHL rules have generally treated such letting as a trade and so a number of preferential tax rules have applied.
Income and gains from FHL will subsequently form part of the person’s UK or overseas property business and be treated in line with all other property income and gains.
There are numerous amendments but the main consequences are dealt with below.
The definition of relevant UK earnings for pension purposes is amended to exclude income from FHL, meaning that such income will no longer enable individuals to make tax-relievable pension contributions based upon it.
The amount of income tax relief landlords can get on residential property finance costs is restricted to the basic rate of income tax. The restriction applies to ‘the costs of a dwelling-related loan’ and FHL is now included.
Property rental businesses are prohibited from claiming capital allowances but instead claim on the replacement on certain items. FHL is now included in this process (but see transitional capital allowance rules below).
In respect of income arising on property held in the names of individuals who are married or civil partners and who live together, the legislation makes the assumption that the parties are entitled to the income in equal shares. These rules now apply to FHL.
The above changes generally apply to 2025/26 or accounting periods commencing on or after 1 April 2025.
The rules which allowed FHL to be treated as a trade for various capital gains tax reliefs are withdrawn in relation to disposals made on or after 6 April 2025 (1 April 2025 for corporation tax).
Roll-over relief on the replacement of business assets will no longer apply to acquisitions which take place on or after those dates.
In addition, the rules which allow a capital loss on loans made to traders no longer apply to claims for a loss on such a loan accruing to a person in relation to FHL on or after those dates.
There is a rule brought in to address the situation of people attempting to ‘bank’ various CGT reliefs by using unconditional contracts. Broadly, if, between 6 March 2024 and 6 April 2025 (1 April 2025 for corporation tax), an unconditional contract is entered into but the asset is sold on or after the 1/6 April 2025, then various CGT reliefs will not be available unless:
The claims covered include roll-over relief, relief for gifts of business assets and BADR and any claim must include a statement that the above conditions are met.
If a person:
then that unrelieved loss is treated as if it had been made in the corresponding property business.
‘Corresponding property business’ means, in relation to a loss made in an FHL business, a UK property business (within the meaning in s264 ITTOIA 2005) carried on by that person. Similar rules apply to overseas property.
This means that any loss carried forward from the FHL can be set against any subsequent income from a UK or overseas letting business.
Similar rules apply for corporation tax purposes.
Broadly, although going forward capital allowances will not be able to be claimed by what were FHL businesses, any unused pools are carried forward and allowances given to those businesses in the future. This also means that subsequent disposals of assets on which capital allowances have been claimed will be dealt with under the capital allowances regime.
There are a number of transitional rules brought in to allow BADR to continue in relation to transactions after 6 April 2025 e.g. where the FHL business cease pre-6 April 2025 but the sale of the property takes place within the next three years.
At KC Accountancy, we understand the importance of having accurate, real-time financial information at your fingertips. In today’s fast-paced business environment, the ability to make informed decisions quickly can be the difference between a successful opportunity and a missed one. The accountancy software we use gives you access to real time data, whilst you’re on the move, offering a host of benefits that streamline financial management and enhance business performance.
Real-Time Information
One of the most significant advantages of using accounting software is access to real-time financial data. Traditional accounting methods often involve time-consuming manual entries and periodic reconciliations, which can delay access to critical information. In contrast, modern accountancy software provides instant updates on your financial status, allowing you to monitor cash flow, track expenses, and assess profitability at any given moment. This immediate insight enables you to make proactive decisions, identify trends early, and react swiftly to opportunities or challenges.
Time and Cost Savings
Implementing accountancy software can lead to significant time savings. By leveraging the various integrations that are available it means you no longer have to worry about downloading manual data and cross checking in your accountancy software.
With constantly evolving new software on the market that integrates with accountancy software and allows data to be pulled automatically into the software, even more time can be saved and you can be rest assured the data is accurate. Some examples of the software we integrate with QuickBooks and Xero are; Link My Books, Bank Feeds, Epos till system integrations etc.
Automation
Automated processes reduce the manual workload, allowing you to focus on core business activities rather than bookkeeping, that can be left to us! With all your software platforms feeding into your accountancy software we can get on with doing the accounting whilst you concentrate on growing your business.
Preparing for Making Tax Digital (MTD)
With Making Tax Digital (MTD) on the horizon for all sole traders and landlords, it’s crucial for you to consider adopting software solutions now. MTD aims to simplify tax reporting by requiring businesses to keep digital records and submit updates to HMRC using compatible software. By transitioning to accountancy software ahead of the MTD implementation, you can ensure compliance and avoid last-minute stress. Early adoption also gives you time to familiarise yourself with the software, ensuring a smooth transition and continued accuracy in your financial reporting.
At KC Accountancy, we believe that embracing accountancy software is a strategic move for any business owner. The benefits of real-time information, time and cost savings, seamless integrations, and preparation for MTD make it an invaluable tool in financial management. By investing in the right software, with the right support at hand we can streamline your processes, enhance decision-making, and ultimately drive your business towards greater success.
[testimonial author]
Rated 5.0 on Quickbooks ProAdvistor
800+ Likes on Facebook
Ready to feel more in control of your finances?
Book a free, no-obligation discovery call today and find out how we can help.
Tel. 01691 674792
Email. info@kcaccountancyservices.co.uk
