Election 2024: What Business Owners Need to Know

Posted on June 17, 2024 | by Jade Donno

Election 2024: What Business Owners Need to Know

As the 2024 election approaches, business owners across the UK are keen to understand how potential changes in government policies might impact their operations. The outcome of this election could bring about significant shifts in economic, tax, and regulatory environments. To help you stay informed and prepared, we’ve outlined key considerations and potential impacts for business owners.

Economic Policies

Taxation Changes

One of the most significant areas where elections can impact businesses is taxation. Different political parties often have varying approaches to corporate taxes, VAT, and other business-related levies. It’s essential to stay informed about each party’s tax proposals:

Corporate Tax Rates: Changes in corporate tax rates can directly affect your profitability. Watch for proposed increases or decreases in these rates and consider their implications for your financial planning.
VAT Adjustments: Shifts in VAT rates can influence your pricing strategy and cash flow. Keep an eye on proposed changes and plan accordingly.
Business Reliefs and Incentives: Look for any new reliefs or incentives aimed at small and medium-sized enterprises (SMEs). These can provide valuable opportunities for growth and investment.

Employment and Labour Policies

Labour policies, including those related to the minimum wage, worker rights, and employment regulations, can significantly impact your business operations:

Minimum Wage Adjustments: Increases in the minimum wage can raise your labour costs. It’s crucial to factor these potential changes into your budgeting and staffing plans.
Worker Rights: Enhanced worker rights and protections may require adjustments to your HR policies and practices. Ensure you understand any new regulations to remain compliant.
Employment Contracts and Benefits: Changes in laws regarding employment contracts and benefits can affect your employee relations and retention strategies.

Regulatory Environment

The regulatory landscape is another area that can undergo significant changes following an election. Here are some key areas to monitor:

Health and Safety Regulations: New or revised health and safety regulations can impact your operational procedures and compliance requirements.
Environmental Regulations: With increasing focus on sustainability, expect potential changes in environmental regulations that could affect your business practices and reporting obligations.
Industry-Specific Regulations: If you operate in a highly regulated industry, such as finance or healthcare, stay informed about any sector-specific regulatory changes that could impact your business.

Trade and International Relations

The UK’s trade policies and international relations can influence your supply chain, export opportunities, and overall market stability:

Trade Agreements: New trade agreements or changes to existing ones can open up new markets or impose new barriers. Keep an eye on proposed trade policies and consider how they might affect your business.
Import and Export Regulations: Adjustments to import and export regulations can impact your supply chain logistics and costs. Stay informed to mitigate potential disruptions.
International Relations: Geopolitical shifts and changes in international relations can influence market conditions and business confidence. Monitor these developments to adapt your strategies accordingly.

Financial Markets and Investment Climate

The election outcome can also influence the broader financial markets and investment climate:

Market Stability: Political uncertainty can lead to market volatility. Be prepared for potential fluctuations in share prices, interest rates, and currency exchange rates.
Investment Opportunities: Changes in government policies can create new investment opportunities or risks. Stay informed about potential shifts in the investment landscape to make informed decisions.
Access to Finance: Monitor any proposed changes to government-backed finance schemes and support for businesses. These can provide crucial funding opportunities for growth and expansion.

Preparing for the Election Outcome

While it’s impossible to predict the exact outcome of the 2024 election, proactive planning can help mitigate risks and position your business for success:

Stay Informed: Regularly update yourself on the latest news and developments related to the election. Follow reliable sources and consider joining business networks or associations that provide insights and analysis.
Scenario Planning: Develop contingency plans for different election outcomes. Consider how changes in policies might impact your business and identify strategies to address potential challenges.
Engage with Stakeholders: Communicate with your stakeholders, including employees, customers, and suppliers, to understand their concerns and expectations. Keeping an open line of communication can help build resilience and trust.
Seek Professional Advice: Consult with financial advisors, accountants, and legal experts to navigate potential changes in the regulatory and economic environment. Professional guidance can help you make informed decisions and stay compliant.

Conclusion

The 2024 election presents both opportunities and challenges for business owners. By staying informed and prepared, you can navigate potential changes and position your business for continued success. At 1 Accounts, we’re committed to helping you understand and adapt to the evolving business landscape. If you have any questions or need assistance with your financial planning, please don’t hesitate to contact us.

What is capital gains tax?

Posted on June 6, 2024 | by Jade Donno

Capital Gains Tax

Capital Gains Tax (CGT) is a term you might have come across if you’ve sold a house, shares, or other investments in the UK. But what exactly is it, and how does it affect your finances? In this blog, we’ll break down the basics in a way that’s easy to understand.

What is Capital Gains Tax?

CGT is a tax on the profit you make from selling an asset. An asset can be anything from property and stocks to bonds and valuable collectables. The key point here is the “profit” part. You only pay capital gains on the difference between the selling price and the price you originally paid for the asset.

How Does it Work?

Identifying a Capital Gain: When you sell an asset for more than you paid for it, you’ve made a capital gain. For example, if you bought shares for £1,000 and later sold them for £1,500, your capital gain is £500.
Calculating the Gain: The capital gain is calculated by subtracting the original purchase price (plus any associated costs like brokerage fees) from the selling price.
Tax Rates: The tax rate depends on your total taxable income and the type of asset sold. For individuals, the rates are:
- 10% for basic rate taxpayers (for most assets).
- 20% for higher and additional rate taxpayers (for most assets).
- 18% for residential property (basic rate).
- 24% for residential property (higher and additional rate).

Why Do We Have Capital Gains Tax?

The primary reason is to generate revenue for the government. It also encourages long-term investment over short-term trading, as holding assets longer can sometimes lead to tax advantages.

How to Minimise Capital Gains Tax

Use Your Annual Exempt Amount: Everyone has an annual tax-free allowance for capital gains. For the 2024/25 tax year, this is £3,000. If your gains are below this amount, you won’t pay CGT.
Hold Assets Longer: By holding onto your investments for more than a year, you may find better opportunities to manage your tax efficiently, especially when combined with other tax reliefs.
Use Tax-Advantaged Accounts: Investing through accounts like ISAs (Individual Savings Accounts) can help you avoid capital gains tax on investments held within them.
Offset Gains with Losses: You can use capital losses (losses from selling investments for less than you paid) to offset your capital gains, reducing your taxable gain.
Consider Your Timing: Timing your sales to match years when you have lower income or greater available allowances can help you pay less in capital gains tax.

Common Questions:

1. Do I have to pay capital gains tax on my home?

- If you sell your main home, you may be eligible for Private Residence Relief, which can exempt you from paying CGT on the sale, provided certain conditions are met.

2. Are there any exceptions?

- Yes, there are various exemptions and reliefs. For instance, assets such as UK government gilts and certain types of personal belongings (chattels) are usually exempt.

3. How do I report capital gains?

- For non-property gains, you’ll need to report your capital gains on your self-assessment tax return. If you do not usually file a self-assessment tax return, you can report your gains using the ‘real-time’ service provided by HMRC.
- For property gains, you’ll need to report the gains within 60 days of sale completion through an HMRC property return form. These will then also be included in your self-assessment tax return.

Conclusion

Understanding CGT is essential for anyone who invests in assets like shares, property, or other assets in the UK. By knowing how it works and how to manage it, you can make informed decisions that can save you money and help you achieve your financial goals. Remember, tax laws can be complex and change frequently, so it’s a good idea to consult with a tax professional for personalised advice.

What are R&D tax credits?

Posted on June 3, 2024 | by Jade Donno

What are R&D tax credits?

In today’s competitive market, businesses constantly strive to innovate and stay ahead of the curve. One powerful incentive that can help companies in is the Research and Development (R&D) tax credit. This blog aims to break down what R&D tax credits are, how they work, and why they can be a game-changer for your business.

What Are R&D Tax Credits?

R&D tax credits are government incentives designed to encourage companies to invest in research and development. These credits are available in many countries and are intended to reward businesses that work on innovative projects, develop new products, or improve existing processes and technologies. By reducing the tax liability, tax credits make it financially easier for companies to invest in innovation.

How Do They Work?

To benefit, a company must engage in qualifying research activities. These activities generally include:

Developing New Products: Creating new products or improving existing ones.
Technological Advances: Making significant advancements in technology.
Process Improvements: Enhancing manufacturing processes, software development, or other operational processes.

For the full list please check out the government website – https://www.gov.uk/government/publications/guidelines-on-the-meaning-of-research-and-development-for-tax-purposes/meaning-of-research-and-development-for-tax-purposes-guidelines

Key Benefits of R&D Tax Credits

Financial Savings: R&D can significantly reduce your tax bill, freeing up funds that can be reinvested into your business.
Encouragement to Innovate: These credits incentivise companies to pursue innovation without the fear of financial strain.
Competitive Edge: Investing in R&D can lead to new products or processes that give your company a competitive advantage.
Increased Investment: The financial relief provided by these credits can encourage further investment in research and development.

Who Can Qualify?

Many businesses across various industries can qualify for R&D. These industries include, but are not limited to:

Manufacturing
Technology
Pharmaceuticals
Engineering
Agriculture

How to Claim:

Claiming R&D involves a few essential steps:

Identify Qualifying Activities: Determine which of your R&D activities qualify for the tax credit.
Document Your Research: Maintain thorough records of your R&D projects, including the costs associated with each activity.
Calculate the Credit: Calculate the amount of tax credit you are eligible for based on your qualifying expenses.
Submit Your Claim: File your claim with the appropriate tax authorities, providing all necessary documentation and calculations.

Common Misconceptions:

Only Large Companies Qualify: Small and medium-sized businesses can also benefit significantly from R&D tax credits.
R&D Means Lab Work: R&D activities are not limited to lab-based research. They can include software development, engineering improvements, and more.
Too Complicated to Claim: While the process can be detailed, there are many resources and advisors available to help you navigate the claim process.

Conclusion

R&D tax credits are a valuable resource for companies aiming to innovate and grow. By understanding and leveraging these credits, businesses can reduce their tax liabilities, reinvest in their development efforts, and maintain a competitive edge in their industry. If your company is involved in any form of research and development, exploring R&D tax credits could provide substantial financial benefits.

For more detailed information and guidance on claiming R&D tax credits, consider consulting with a tax professional who specialises in this area. Investing time in understanding and applying for these credits can significantly impact your business’s financial health and innovative potential.

The Spring Budget – The Detail

Posted on March 7, 2024 | by Jade Donno

On March 6, 2024, Chancellor Jeremy Hunt delivered a spring budget aimed at boosting public morale and securing voter support, especially important as an election looms and the UK faces economic challenges. This budget focuses on easing financial strains by lowering National Insurance for everyone, tweaking VAT rules for small businesses, and adjusting child benefit charges to support families. Plus, there’s a small break on property sales taxes for some, but no changes to income or inheritance taxes. Let’s explore what these changes could mean for you.

National Insurance Contributions are going down

The first budget announcement was that National Insurance Contributions are again being cut. The government is cutting the main rate of employee National Insurance by 2% from 10% to 8% from 6 April 2024. Combined with the 2% cut announced at Autumn Statement 2023, this will save the average worker on £35,400 over £900 a year.

The government is also cutting a further 2% from the main rate of self-employed National Insurance on top of the 1% cut announced at Autumn Statement 2023. This means that from 6 April 2024 the main rate of Class 4 NICs for the self-employed will now be reduced from 9% to 6%. Combined with the abolition of the requirement to pay Class 2, this will save an average self-employed person on £28,000, around £650 a year.

Following these changes, assessing both salary and dividend options for their tax advantages is advisable. This strategy could optimise your tax position.

The threshold for registering for VAT is going up

The Chancellor raised the VAT registration threshold to £90,000 to alleviate the administrative burden on small businesses and encourage their growth. This change means that smaller businesses can generate more revenue before needing to charge VAT, potentially increasing their competitive edge and allowing them to reinvest savings into their operations. However, businesses approaching this new threshold must plan strategically to manage their growth and VAT responsibilities effectively.

Inflation has rapidly fallen and the economy is picking up

They announced in the budget that Inflation has significantly decreased from 11.1% to 4%, and is expected to reach the 2% target by the second quarter of 2024, according to the OBR. This reduction, occurring faster than previously predicted, indicates a stabilising economy. Last year, the UK experienced minimal growth, indicative of a recession. However, projections show an improvement from early 2024, with the UK predicted to be among the top three fastest-growing G7 economies between 2024-2028. For business owners, this could mean more stable costs, improved consumer spending, and better conditions for growth and investment.

The post-pandemic recovery loan scheme is being extended

The British government has recently updated the Recovery Loan Scheme with an additional funding provision of £200 million, aiming to support the growth and investment plans of small-scale enterprises. To be eligible for this loan, a business must generate no more than £45 million annually, maintain a sustainable model, and be free from immediate financial distress. The Recovery Loan Scheme is also being renamed The Growth Guarantee Fund as announced in the budget.

Full expensing for leased assets is coming

Capital allowances offer businesses an effective strategy to decrease their taxable income. This is achieved by allowing companies to deduct the cost of qualifying purchases such as equipment, machinery, and certain types of business vehicles from their profits, leading to tax savings. This approach not only reduces tax liabilities but also encourages reinvestment in the business. The concept of full expensing enables businesses to apply these capital allowances in the same fiscal year the investment is made. The Chancellor recently hinted that full expensing for leased assets would be implemented when it is financially feasible.

Changes to the Child Benefit Charge

At the moment, there is a situation where a household with 2 parents, each earning £49,000 a year, still gets the full Child Benefit, but those with one parent earning over £50,000 will see some or all of the benefit withdrawn. From 6th April 2024 the point at which child benefit will start to be withdrawn will now be at a higher level of earnings i.e. £60,000 not £50,000. Instead of starting to lose child benefit once at least one parent earns over £50,000 a year, it will be £60,000. It will be taken away entirely from £80,000 a year, rather than £60,000. But more importantly, the government is consulting on moving the system from being based on an individual’s salary to a system based on household income. This new system will come in by April 2026. So watch this space!

Capital Gains Tax on residential properties is being reduced

To address the housing shortage, the government plans to decrease the higher rate of capital gains tax on non-primary residences from 28% to 24% in April. This change aims to encourage more property sales by reducing the tax burden on sellers of investment properties or second homes.

Fuel duty remains the same

The ‘temporary’ 5p cut in fuel duty is being extended for another 12 months.

Alcohol duty remains the same

The alcohol duty freeze is being extended from 1st August to 1st February.

UK ISA

There is a new ISA in town! This ISA gives savers another £5k tax-free allowance, on top of the current £20k that can be subscribed into an ISA. The only restriction is this new UK ISA needs to be invested in British businesses.

A boost for the creative industries

The government is also announcing over £1 billion of new tax reliefs for the UK’s creative industries. This includes introducing a 40% relief from business rates for eligible film studios in England for the next 10 years; introducing a new UK Independent Film Tax Credit; and increasing the rate of tax credit by 5% and removing the 80% cap for visual effects costs in the Audio-Visual Expenditure Credit. A permanent extension will be made to tax relief for theatres, orchestras, museums and galleries.

Changes to the property tax system

The government plans to phase out the Furnished Holiday Lettings tax benefits starting April 6, 2025, and the relief on stamp duty for multiple dwellings beginning June 1, 2024. Properties under contracts exchanged before March 6, 2024—the day before the budget announcement—will still qualify for the multiple dwelling stamp duty relief, regardless of their actual completion date. Additionally, any transactions completing before June 1, 2024, will be eligible for this relief.

Changes to the non-dom tax regime

The tax breaks for non-domiciled residents, people who live in the UK, but not domiciled here for tax purposes have been abolished. Currently, foreign nationals who live here, but are taxed in another country, do not have to pay tax on their foreign income for up to 15 years. From April 2025 this is changing.

For new arrivals, who have a period of 10 years consecutive non-residence, there will be full tax relief for a 4-year period of subsequent UK tax residence on foreign income and gains arising during this 4-year period, during which time this money can be brought to the UK without an additional tax charge.

Existing tax residents, who have been tax residents for fewer than 4 tax years and are eligible for the scheme, will also benefit from the relief until the end of their 4th year of tax residence.

There are transitional arrangements being put in place for existing non-doms.

Smokers and vapers

In Oct 2026 vapers will be taxed more and the tax on cigarettes and tobacco products will go up.

The government is beefing up it’s HMRC team to get more tax in

At first glance, it appears the government isn’t directly investing in increasing HMRC’s frontline workforce. However, it’s channeling an additional £140 million to enhance HMRC’s capacity to handle tax debts. Essentially, this can be seen as an allocation aimed at boosting the identification and collection of outstanding taxes. Now might be a prudent time to consider tax investigation insurance, especially if you haven’t already done so. For those who are clients of 1 Accounts, you’ll be pleased to know this service is already included in our offering!

The recent budget may not have met the expectations of many small businesses, as it offered limited new measures for support. However, as a business owner, there are essential steps to take. Ensure your payroll systems are updated to accommodate the new National Insurance contributions starting April 6, 2024. It’s advisable to start planning now—reach out to us to strategise effectively, particularly regarding the upcoming minimum wage adjustments. Now is also a crucial time for personal tax planning, especially considering the changes to child benefit. Review your pension contributions and, for those operating limited companies, reassess your cash flow in light of these changes and keep your forecasts current. Anticipate additional updates from a potential budget announcement later this year, which could bring more changes.

2024 Spring Budget – The Highlights

Posted on March 7, 2024 | by Jade Donno

Attention Business Owners,

We’ve got the latest scoop on the recent Spring Budget announcement by the chancellor. Buckle up because there’s a lot to unravel, but we’ve got you covered with the need-to-knows.

Let’s dive into the highlights:

National Insurance Contributions Relief

Good news! National Insurance Contributions are getting slashed again. This means more money in your pocket. For employees, the main rate of employee National Insurance is dropping from 10% to 8%, saving the average worker over £900 a year. Self-employed folks are also in luck with a reduction from 9% to 6%.

VAT Threshold

The threshold for VAT registration is climbing up to £90,000. While some debate its impact, it’s aimed at supporting small business growth.

Economic Boost

Inflation is down, and the economy is revving up. With forecasts showing growth on the horizon, it’s a positive sign for businesses.

Recovery Loan Scheme Extension

The post-pandemic recovery loan scheme is extending its support to small businesses with an additional £200 million in funding.

Leased Assets

The chancellor hinted that full expensing for leased assets will come soon, but it’s not clear when, likely when it’s affordable.

Child Benefit

The threshold for the high-income child benefit charge is going up from £50,000 to £60,000. The upper limit for which the benefit is fully removed is also increasing from £60,000 to £80,000. There are also plans in the future to switch this approach from an individual income basis to a household income basis. However, no date has been put on this further change.

Housing and Savings Incentives

Property owners will see a reduction in Capital Gains Tax on residential properties, and there’s a new UK ISA allowing for tax-free investments in British businesses.

Creative Industries Boost

Over £1 billion in tax reliefs are being introduced for the UK’s creative industries, offering support for film studios, independent films, and more.

Now, for the not-so-great news:

Property Tax Changes

The Furnished Holiday Lettings tax regime and multiple dwelling stamp duty relief are on the chopping block.

Non-Dom Tax Regime

Tax breaks for non-domiciled residents are being phased out starting April 2025.

Tobacco and Vaping Tax

Brace yourselves, smokers and vapers, as taxes on these products are set to rise in the coming years.

HMRC and Tax Enforcement

The government is beefing up HMRC’s capabilities to collect more tax, so it’s wise to stay on top of your tax affairs.

In conclusion, while there are some wins and losses in the budget, it’s essential to stay informed and adapt your business strategy accordingly. We’re here to help navigate these changes and ensure your business thrives.

Our Spring Budget Predictions

Posted on March 4, 2024 | by Jade Donno

Simplified Guide for Business Owners: Understanding the Spring Budget Predictions

Attention all business owners! The Spring Budget is set to be announced on March 6th, and it will be aired live on BBC1 at 12pm. This is a crucial event, especially with the general election on the horizon. We anticipate significant announcements that could impact your business, particularly in terms of tax changes and economic growth initiatives. Here’s what you need to know in simple terms.

What is the Budget?

The Budget is a financial statement made by the government every year which outlines its plans for tax changes, spending, and economic strategies. For UK businesses, this means changes in taxes you pay or incentives you might receive.

Predictions for the Upcoming Budget:

1. Inheritance Tax (IHT):

This is the tax paid on an estate (property, money, and possessions) of someone who has passed away. Currently, there are talks that the government might remove this tax entirely, which could be good news for individuals and families.

2. Income Tax Thresholds:

These are limits up to which you don’t have to pay income tax. Since April 2022, there haven’t been changes, but there are whispers that these thresholds might increase. This means you might start paying less tax on your earnings, leaving more money in your pocket.

3. Income Tax Rates:

Following a recent cut in National Insurance, we might also see a reduction in income tax rates. This could further reduce the amount of tax you owe from your earnings, enhancing your take-home pay.

4. Making Tax Digital for Income Tax:

This is a government initiative aimed at making it easier for businesses and individuals to manage their taxes online. Although its launch has been delayed, there might be news on when this will finally kick in.

5. Raising the VAT Threshold:

Currently, businesses with a turnover below £85,000 are exempt from registering for VAT. There’s a possibility this threshold could increase, which could mean fewer tax burdens for small businesses and possibly more room for growth.

Our Hopes for Small Businesses:

We are hoping the Spring Budget will bring good news in the form of tax savings for small businesses. These could come through reductions in various taxes or by raising thresholds that relieve smaller businesses from the complex web of tax obligations. This would not only help businesses grow but also stimulate overall economic growth.

Stay tuned for the budget announcement, and consider how these changes could impact your business.

Is It Time to Electrify Your Double Cab Pickups?

Posted on February 19, 2024 | by Jade Donno

Understanding the Changing Tax Landscape

Current Tax Benefits: A Favorable Position

Double cab pickups are the backbone of the construction industry, serving as both reliable haulers for equipment and convenient transportation for workers and their families. Yet, looming changes in tax regulations could reshape the landscape for these indispensable vehicles.

The Impact of Tax Changes

Currently, double cab pickups enjoy favorable tax treatment, including a standard benefit-in-kind rate set at £3,600, plus £688 for fuel, leading to a tax bill of £857.60 for basic rate taxpayers and £1,715.20 for those in the higher tax bracket. Additionally, companies can fully deduct the cost of these vehicles from their taxable profits thanks to 100% Capital Allowances. However, starting from July 1st, significant tax changes will come into effect, subjecting double cab pickups to similar tax assessments as cars. This shift includes considering CO2 emissions ratings, which could substantially increase taxes and reduce capital allowances.

Navigating Tax Implications: A Case Study

Take, for example, purchasing a Toyota Hilux Active, priced at £34,145 including VAT. Under the current tax regime, there are significant tax savings for both the company and the employee due to VAT recovery and full capital allowances. However, post-change, the tax implications become much more burdensome, with capital allowances reducing to just 6% annually.

Exploring Alternatives: Electrification of Fleet

So, what’s the solution? It might be time to consider electrifying your double cab pickup fleet. Electric vehicles (EVs) are currently treated more favorably in terms of taxation, and although there’s no guarantee, there’s a possibility that future government policies may continue to support EV adoption.

Weighing the Options: Financial and Environmental Considerations

With the impending tax changes, it’s essential to weigh the benefits of purchasing under the existing tax regime against the potential long-term financial and environmental advantages of electric vehicles. While the current rules apply to purchases made before July 1st, 2024, until April 5th, 2028, it’s crucial to consider the broader shift towards electrification and potential changes in legislation that could impact the cost-effectiveness of maintaining a diesel-powered fleet.

Further Guidance and Resources

To dive deeper into the tax implications and allowances, refer to the official guidance at HMRC’s Employment Income Manual.

In Conclusion: A Shift Towards Sustainability

In conclusion, the changing tax landscape suggests that now might be the time to rethink your double cab pickup fleet and consider transitioning to electric vehicles for a more sustainable and financially sound future.

For more detailed information on the tax implications and allowances, please refer to the official guidance at HMRC’s Employment Income Manual.

How to improve your business credit score

Posted on January 26, 2024 | by Jade Donno

Elevate Your Business: A Guide to Improving Your Business Credit Score

Your business credit score is a valuable asset that can significantly impact your company’s financial health and growth potential. Just like a personal credit score, a strong business credit score opens doors to favourable financing options, partnerships, and opportunities. In this comprehensive guide, we explore the importance and provide practical steps to boost it. Plus, discover how 1 Accounts, in partnership with Swoop, can help you on your journey to an improved credit score.

Why does it Matter?

Your business credit score serves as a financial resume for your company. Lenders, suppliers, and partners often use it to assess your creditworthiness. Here’s why it matters:

Access to Financing: A strong credit score makes it easier to secure loans, lines of credit, and other forms of financing, helping you fund growth initiatives or navigate cash flow challenges.
Lower Interest Rates: A high credit score often translates to lower interest rates on loans, saving money over time.
Supplier Relationships: Suppliers may offer more favorable terms and discounts to businesses with good credit, improving your profitability.
Opportunities: Potential partners and clients may view a strong credit score as a sign of reliability and trustworthiness, leading to more opportunities.

Steps to Improve Your Business Credit Score

Establish a Business Entity: Register your business as a separate legal entity (e.g., LLC or Corporation) to separate personal and business finances.
Open a Business Bank Account: Use a dedicated business bank account for all financial transactions to establish financial stability.
Apply for a Business Credit Card: A business credit card can help build credit when used responsibly.
Pay Bills on Time: Consistently pay bills, loans, and credit card balances on time to demonstrate financial responsibility.
Monitor Your Credit Report: Regularly check your business credit report for errors and discrepancies. Dispute inaccuracies promptly.
Maintain Low Credit Utilisation: Keep your credit utilization (credit used vs. credit available) low to show responsible credit management.
Diversify Credit Types: Utilise a mix of credit types, such as installment loans and revolving credit, to show credit diversity.
Avoid Overextending: Be cautious when taking on new credit, and only borrow what your business can comfortably repay.

Unlock Your Business’s Potential

A strong business credit score is an asset that can open doors to financial stability and growth opportunities. By following the steps outlined in this guide and leveraging the expertise of 1 Accounts and Swoop, you can enhance your creditworthiness and position your business for success

Navigating the energy crisis as a business

Posted on January 26, 2024 | by Jade Donno

The UK Energy Crisis: Navigating Turbulent Waters in Business

The United Kingdom is currently facing an energy crisis that is sending shockwaves through the business landscape. This, triggered by a confluence of factors, has left businesses grappling with soaring energy prices, supply chain disruptions, and the urgent need to find innovative solutions to mitigate its impact. In this blog, we delve into how the energy crisis is affecting businesses in the UK and highlight how 1 Accounts, in partnership with Swoop, can help businesses save money on energy bills.

The Perfect Storm: Understanding the Energy Crisis

It is a result of several interconnected challenges:

Gas Prices Soar: Natural gas prices have surged globally, impacting the cost of electricity and heating for businesses.

Supply Chain Disruptions: The crisis has exacerbated supply chain issues, affecting the delivery of essential goods and services.

Rising Energy Bills: Businesses are experiencing a significant increase in energy bills, straining budgets and profitability.

Sustainability Concerns: With the need to reduce carbon emissions, businesses face pressure to adopt more expensive renewable energy sources.

Impact on Businesses

Increased Costs: Rising energy prices directly impact operational costs, eating into profits and potentially leading to price hikes for consumers.
Supply Chain Challenges: Disruptions in the supply chain can lead to delays in production, affecting product availability and customer satisfaction.
Reliability: The crisis has raised concerns about the reliability of energy supply, potentially causing downtime for businesses.
Environmental Pressure: Businesses are under scrutiny to reduce their carbon footprint, necessitating investments in sustainable energy solutions.

Navigating Challenges Together

The UK’s energy crisis presents formidable challenges for businesses, but with the right strategies and support, it’s possible to navigate these turbulent waters. 1 Accounts, in partnership with Swoop, is committed to helping businesses overcome the financial impact and find innovative solutions. Together, we can weather the storm and emerge stronger, more efficient, and more sustainable.

Business Grants Explained

Posted on January 26, 2024 | by Jade Donno

Unlocking Opportunities: A Comprehensive Guide to UK Business Grants

In the dynamic landscape of UK business, growth and innovation are often fueled by access to financial resources. For many entrepreneurs and small business owners, securing funding can be a game-changer. Business grants, in particular, offer a unique avenue for businesses to access financial support without the burden of repayment. In this comprehensive guide, we delve into the world of UK business grants, exploring what they are, why they matter, and how 1 Accounts, in partnership with Swoop, can help you discover these valuable opportunities.

Understanding UK Business Grants

What Are Business Grants?

They are funds provided by governments, organizations, or institutions to support specific business activities or objectives. Unlike loans, grants do not require repayment, making them an attractive option for businesses looking to expand, innovate, or embark on projects with a social or environmental impact.

Why Do they Matter?

Business grants play a pivotal role in fostering economic growth, encouraging innovation, and addressing societal challenges. They provide businesses with the financial resources needed to:

Research and Development: Grants enable businesses to invest in R&D, leading to the development of innovative products and solutions.
Job Creation: By providing funding for expansion, grants contribute to job creation and stimulate local economies.
Sustainability Initiatives: Grants support businesses in implementing sustainable practices, reducing their environmental footprint.
Diversity and Inclusion: Some grants are dedicated to promoting diversity and inclusion within the business community.

Types of UK Business Grants

They cover a wide range of industries, objectives, and purposes. Some common types include:

Government Grants: Offered by various government departments and agencies, these grants support businesses in areas such as technology development, export expansion, and job creation.
Local Authority Grants: Local councils and authorities often provide grants to stimulate economic growth within their regions.
Innovation Grants: These grants focus on fostering innovation and research, helping businesses stay competitive and develop cutting-edge products.
Sustainability Grants: Grants aimed at supporting environmentally friendly practices, encouraging businesses to adopt sustainable operations.
Social Impact Grants: Funds dedicated to businesses with a strong social or community impact focus.

How 1 Accounts and Swoop Can Help You!

Navigating this landscape can be complex, with numerous opportunities available, each with its own eligibility criteria and application process. This is where the partnership between 1 Accounts and Swoop becomes invaluable.

Through our partnership with Swoop, 1 Accounts offers a powerful tool to search for business grants:

Personalised Search: We help you identify grants that align with your business’s objectives and needs.
Streamlined Application: Swoop’s platform simplifies the application process, making it easier to submit applications for multiple grants.
Expert Guidance: Our team provides expert guidance on grant opportunities and assists in crafting compelling grant applications.
Regular Updates: Stay informed about new grant opportunities that become available, ensuring you don’t miss out on potential funding.

Unlock your business potential

Business grants are not just about financial support; they are about unlocking the potential of your business. Whether you’re a startup aiming to innovate or an established business looking to expand sustainably, grants can be a game-changer. With 1 Accounts and Swoop by your side, exploring and accessing these opportunities has never been easier. Discover the grants that can take your business to the next level and embark on a journey of growth and impact.