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How the Upcoming UK Election Could Impact Your Business

Posted on | by Jade Donno

Election 2024: How Party Manifestoes Could Impact Small Businesses in the UK

As the 2024 UK election draws nearer, small business owners are keenly aware of how the potential shift in power could impact their operations. Understanding the manifestoes of the main political parties – Labour, Conservative, Green Party, and Liberal Democrats – is crucial for preparing for the future. Here’s a closer look at what each party proposes for small businesses.

Labour Party

Taxation and Finance

Labour’s manifesto traditionally focuses on increasing public spending and social welfare, funded by higher taxes on the wealthy and corporations. For small businesses, this could mean:

  • Corporate Tax: An increase in corporate tax rates, especially for larger corporations, could indirectly affect small businesses through changes in supply chain costs and market dynamics.
  • Business Rates: Labour has indicated a willingness to review business rates, which could benefit small businesses struggling with high property costs.
  • Access to Finance: Proposals to increase funding for SMEs, particularly through government-backed schemes and incentives for banks to lend to small enterprises.

Employment and Labour Rights

Labour often emphasises worker rights and fair wages:

  • Minimum Wage: A potential increase in the minimum wage could raise labour costs for small businesses.
  • Worker Protections: Enhanced worker protections and rights, such as improved sick pay and holiday entitlements, which may require adjustments in employment practices.

Green Initiatives

Labour’s commitment to a green economy includes:

  • Sustainable Practices: Incentives for businesses adopting sustainable practices, which could present opportunities for SMEs in green sectors.
  • Environmental Regulations: Stricter environmental regulations that might require businesses to invest in greener technologies and processes.

Conservative Party

Taxation and Finance

The Conservative manifesto typically focuses on lower taxes and deregulation to stimulate economic growth:

  • Corporate Tax: Potential reductions or stability in corporate tax rates, which could leave more profits in the hands of business owners.
  • Business Rates: Continued reliefs and potential reforms to business rates to support high street businesses and small enterprises.
  • Investment Incentives: Encouragement of private investment through tax incentives and simplified processes for accessing government grants.

Employment and Labour Rights

The Conservatives often prioritise flexible labour markets:

  • Minimum Wage: Moderate increases in the minimum wage to balance affordability for businesses and fair wages for workers.
  • Employment Law: Policies aimed at maintaining flexibility in employment law, reducing red tape for hiring and firing.

Green Initiatives

The Conservative approach to green policies balances business interests with environmental goals:

  • Sustainability: Encouraging voluntary adoption of sustainable practices with financial incentives rather than strict regulations.
  • Green Investment: Investment in green infrastructure and technologies, potentially benefiting businesses involved in these sectors.

Green Party

Taxation and Finance

The Green Party’s manifesto emphasises sustainability and social equality:

  • Corporate Tax: Higher corporate taxes, especially for larger companies, with funds redirected to support green initiatives and social welfare.
  • Business Rates: Reforms to ensure business rates reflect environmental impact, potentially providing relief for environmentally-friendly businesses.
  • Access to Finance: Increased support for green businesses, including grants and loans for sustainable projects.

Employment and Labour Rights

The Green Party focuses on worker welfare and sustainable jobs:

  • Minimum Wage: Significant increases in the minimum wage to ensure a living wage for all workers, impacting payroll budgets for small businesses.
  • Worker Protections: Strong emphasis on worker rights and protections, potentially increasing administrative and financial burdens on employers.

Green Initiatives

Sustainability is at the core of the Green Party’s policies:

  • Environmental Regulations: Stricter environmental regulations requiring businesses to adopt greener practices.
  • Green Investments: Significant investment in green infrastructure and support for businesses in renewable energy and sustainable sectors.

Liberal Democrats

Taxation and Finance

The Liberal Democrats typically advocate for balanced economic policies:

  • Corporate Tax: Moderate changes to corporate tax, aiming to balance economic growth with social responsibility.
  • Business Rates: Comprehensive review and reform of business rates to support SMEs and high street businesses.
  • Access to Finance: Support for SMEs through improved access to finance, grants, and incentives for innovation.

Employment and Labour Rights

The Liberal Democrats emphasise fair working conditions:

  • Minimum Wage: Incremental increases in the minimum wage to ensure fair pay without drastically impacting business costs.
  • Worker Protections: Policies to enhance worker rights and protections, including support for flexible working and family-friendly practices.

Green Initiatives

The Liberal Democrats focus on sustainable growth:

  • Environmental Regulations: Balanced approach to environmental regulations, encouraging businesses to adopt sustainable practices without excessive burdens.
  • Green Investments: Investment in green technologies and support for businesses transitioning to a low-carbon economy.

Conclusion

Understanding the manifestoes of the major political parties can help small business owners anticipate changes and plan accordingly. Each party offers different approaches to taxation, labour rights, and sustainability, which will impact businesses in various ways. At 1 Accounts, we’re here to help you navigate these potential changes and ensure your business is prepared for the future. Stay informed, stay prepared, and don’t hesitate to reach out for expert advice and support.

For more detailed insights and tailored advice, visit our website www.1accounts.co.uk. Let’s work together to ensure your business thrives no matter the political landscape.

capital gains tax planning

Capital Gains Tax Planning: Tips for Reducing Your Tax Liability

Posted on | by Jade Donno

Capital Gains Tax Planning: Tips for Reducing Your Tax Liability

Capital Gains Tax (CGT) is a tax on the profit when you sell (or ‘dispose of’) an asset that has increased in value. It’s the gain you make that’s taxed, not the amount of money you receive. Navigating CGT can be daunting, but with careful planning, you can minimize your liability. Here are some tips to help you effectively manage CGT in the UK:

1. Use Your Annual Exemption

Each tax year, individuals have an annual CGT exemption (£6,000 for the 2023/24 tax year & £3,000 for  24/25  onwards). Ensure you utilise this allowance by timing the disposal of assets to maximise your exemption.

2. Offset Losses

Offset any capital losses against your gains to reduce the taxable amount. Keep records of past losses, as they can be carried forward to future years.

3. Utilise Tax-Advantaged Accounts

Investing through ISAs (Individual Savings Accounts) or pensions can shield your gains from CGT. Gains made within these accounts are exempt from CGT.

4. Consider the Timing of Disposal

Strategically timing the sale of assets can help spread gains across different tax years, ensuring you make full use of the annual exemption each year.

5. Gifting Assets to Spouse

Transferring assets to a spouse or civil partner before selling them can be tax-efficient, as transfers between spouses are exempt from CGT and both partners can utilise their individual exemptions.

6. Claim Entrepreneur’s Relief

If you’re selling a business or shares in a trading company, you may qualify for Business Asset Disposal Relief (formerly Entrepreneur’s Relief), which reduces the CGT rate to 10% on qualifying gains.

7. Keep Comprehensive Records

Maintain detailed records of all asset acquisitions, improvements, and disposals. Accurate documentation will ensure you claim all allowable deductions and exemptions.

8. Seek Professional Advice

Tax rules are complex and subject to change. Consulting with a tax advisor can help you navigate the intricacies of CGT and implement the most effective strategies for your specific situation.

By incorporating these tips into your tax planning, you can significantly reduce your Capital Gains Tax liability and optimise your financial outcomes. For personalised advice tailored to your circumstances, contact us at 1 Accounts Online. We’re here to help you manage your finances with ease and expertise.

Visit our Knowledge Centre for more insights and guidance.

2024 Spring Budget – The Highlights

Posted on | 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.

jumper, hot chocolate and book for autumn

Simplifying the Autumn Statement

Posted on | by Jade Donno

Hello, business owners! Let’s talk about what the UK Autumn Statement means for you in plain English, with all the important bits you need to know:

Our director Paul breaks down the Autumn budget with a quick synopsis

Cash Cushion for Growth

The government has a safety net of funds aimed at supporting businesses making sure they can grow. They’ve introduced 110 measures to help businesses with things like productivity and taxes​​. This is collated in a 120 document you can click here to read.

Drinks on Hold

If you’re in the business of selling drinks, there’s good news – no tax hike on alcohol until August 2024. Cigarette sellers, however, will see a 10% tax increase​​ on hand-rolling tobacco.

Friendly Rates for Small Businesses

If your business is on the smaller side, you’ll be glad to hear that your business rates won’t go up this year. And if you’re in retail, hospitality, or leisure, you’ll continue to enjoy a significant reduction in business rates​​.

Full Speed on Spending

When you buy equipment for your business, you can now get a tax break for the full price from now on. This should make investing in your business a bit more attractive​​.

Simpler Tax Breaks for Innovation

If your business invests in research and development, things are getting simpler. The government is merging two tax relief schemes into one, making it easier to understand and claim your benefits​​.

Cheer for Creative Types

For the creatives making films, TV shows, or games, there’s a new tax credit system starting in 2024 that may put some extra cashback in your pocket​​. We are awaiting the details on this one!

National Insurance Cuts

Big news for both employees and the self-employed: National Insurance is getting cheaper. Employees will see a 2% cut from their National Insurance rates, and for the self-employed, Class 4 NI goes down by 1% to 8%. Plus, a certain type of National Insurance payment, known as Class 2, will be abolished, making tax a bit simpler for the self-employed​​.

More Money in Your Pocket

With all these changes, if you’re earning an average salary, your taxes will be lower in the UK than in many other major economies. This means more take-home pay for millions of workers​​.

Minimum Wage Jump

Last but certainly not least, if you’re paying your staff minimum wage, note that it’s going up to £11.44 from April 2024. This is a significant raise, which means those earning the minimum will take home more money​​ but it also could be a huge change for your business. Making it more important than ever to plan!

Listen to Paul talking about the impact on small businesses by watching this video.

Remember, all these changes are about making sure that work pays off more and that your business can thrive. It’s always a good idea to chat with an accountant to see exactly how these changes affect your specific business. Stay informed and keep growing!

Please check out our social media for more videos breaking down the budget!

Celebrating a Decade of 1 Accounts

Posted on | by Jade Donno

From Humble Beginnings to Industry Pioneers

As we stand on the brink of a significant milestone, it’s time to turn the pages back to where it all began—a journey from a modest room in our house to a prominent office in Haverhill. Ten years ago, Paul and Jenni Donno set out with a vision to bring cloud accounting to the forefront of the business world. With a handful of clients and a passion for change, 1 Accounts was born.

Early Recognition and the Pursuit of Innovation (2013-2015)

Our inaugural years set the tone for what was to become a saga of relentless pursuit of service excellence. Early accolades at the British Accountancy Awards and being named Sage’s Online Provider of the Year were not just trophies on our shelves—they were the fuel that propelled us forward.

Building Our Culture and Community (2016-2019)

As our team expanded, so did our need for space, leading us to our high-street office. We weren’t just recognised for our professional expertise—we also embedded fun into our culture with initiatives like Sausage Roll Fridays and Dress Down Fridays. Our team-building events, including a memorable day at Wild Tracks and a triumphant outing at Top Golf, reinforced the bond that is the backbone of our firm. Our team grew with the addition of cherished members like Adrian, Kerry and James, whose growth from apprentice to a fully qualified accountant mirrored our own evolution.

Adapting to Change, Supporting Through Challenges (2020-2021)

The unforeseen pandemic tested the mettle of businesses everywhere. At 1 Accounts, we transitioned to remote work seamlessly, thanks to our cloud-based systems. Our team worked tirelessly to navigate new schemes, offering additional support to our clients when they needed it most. The introduction of office dogs Honey and Jango, and the shift to a hybrid work model, were testaments to our adaptability and focus on well-being.

A New Chapter of Leadership and Legacy (2022-2023)

These past two years have been about leadership and legacy. We’ve been recognised once more for our dedication to the industry, with Paul winning Business Leader of the Year and Katie being shortlisted for Employee of the Year. The addition of Josh to the family business, the integration of new services, and our engaging networking events are the highlights that showcase our commitment to growth and community.

Our Gratitude and Vision for the Future

As we celebrate this 10-year anniversary, we are filled with gratitude for the trust and support of our clients and the dedication of our team. Our story is not just about the numbers; it’s about the people, the relationships, and the shared successes. We are proud of our past and excited for the future.

Here’s to the next decade of innovation, service, and community at 1 Accounts. Thank you for being a pivotal part of our journey.

leaves for autumn

Understanding the Autumn Statement and Its Impact on Your Business

Posted on | by Jade Donno

The Autumn Statement is more than just a financial forecast; it’s a roadmap that can influence your business decisions for the upcoming year. At 1 Accounts Online Ltd, we understand its significance and are here to simplify what it means for you.

What is the Autumn Statement?

This annual announcement by the Chancellor of the Exchequer outlines the government’s economic plans and budget priorities, giving us insight into the fiscal direction of the country.

The Importance of Staying Informed:

  • Business Forecasting: Economic indicators from the Statement guide us in helping you plan your next business move.
  • Policy Updates: It’s essential to know about changes in taxation or spending that may affect your business’s bottom line.
  • Strategic Advantage: With our expert analysis, you can turn the information from the Statement into a competitive edge.

Impact on Your Business:

  • Corporate Tax Rates: Any changes here could be critical to your financial strategy, and we’re on hand to navigate through them​​.
  • Regulatory Adjustments: We’ll decode complex legislative updates, such as IR35 changes, so you can focus on running your business​​.
  • Fiscal Signals: Tax cuts or adjustments in government spending signal economic trends that could impact your growth plans​​.

The Autumn Statement is a vital indicator for strategic business planning, and we at 1 Accounts Online Ltd are dedicated to providing you with clear, actionable advice. As we approach the release of this year’s Statement, let’s work together to align your business with the upcoming economic landscape.

what is an accountant

What is an Accountant?

Posted on | by Jade Donno

What is an Accountant? Unveiling the Essential Role in Your Business

If you’ve ever wondered, “what is an accountant?” then you’re in the right place. As a premier UK-based accountancy practice, 1 Accounts Online Ltd is here to demystify the role of an accountant and explain why they are indispensable for your business.

What is an Accountant?

At the most basic level, an accountant is a trained professional who maintains and audits business accounts. But, in reality, the role encompasses much more than that. They provide a vast array of financial services, ranging from record keeping and financial forecasting to strategic planning, compliance, and consulting on all financial aspects of a business.

The Versatility of an Accountant

Accountants wear many hats, and their roles often extend beyond just number-crunching. They are financial advisors, tax experts, and strategic consultants. They can work within a business, for an accountancy firm like 1 Accounts Online Ltd, or independently.

Financial Management & Reporting

An accountant takes charge of managing a company’s financial data. They ensure that financial records are accurate and that taxes are paid properly and on time. Accountants perform audits and prepare financial reporting records, such as balance sheets, income statements, and tax returns. These records provide a clear financial image of the business, guiding strategic decisions.

Regulatory Compliance & Tax Expertise

One crucial role an accountant plays is ensuring businesses comply with the latest laws and regulations. In the UK, this includes abiding by the Companies Act and adhering to HM Revenue & Customs (HMRC) requirements. With their tax expertise, accountants save businesses from potential penalties and help them take advantage of relevant tax deductions and credits.

Business Strategy & Consultation

Beyond compliance and day-to-day management, accountants play a vital role in shaping the strategic direction of a business. Through financial analysis and forecasting, they help identify growth opportunities and areas for improvement.

Accountants and Small Businesses

Many small business owners may wonder if they need an accountant. The answer is a resounding yes. Accountants offer invaluable expertise that can help a small business thrive. They can guide you through the complexities of tax regulations, provide advice on financial management, and offer insights to help your business grow.

Why Choose 1 Accounts Online Ltd?

As a UK-based accountancy practice, 1 Accounts Online Ltd offers a comprehensive range of accounting services. Our team of qualified accountants are committed to helping your business succeed. We navigate the complexities of accounting so you can focus on what you do best – running your business.

In conclusion, an accountant is more than just a numbers guru; they are an essential partner in your business. They not only help you meet regulatory requirements but also play a critical role in your business’s strategic direction. If you’ve been asking, “what is an accountant?” now you know. And if you need a dedicated, professional accountant, consider 1 Accounts Online Ltd. We’re here to help your business thrive.

Why we love Xero!

Posted on | by Jade Donno

It’s no secret that we love Xero! It is the accounting software that we recommend to absolutely all of our clients. This is because we truly believe that it offers better features and useability than its competitors. Here are just some of the reasons why we love Xero!

1) Easy to use

Xero has made its interface very user-friendly and we find it easy to use on our end as well. This also makes it easy for us to teach you how to use it, to make sure that you get the best out of it and make sure your data is always accurate and up to date! We offer Xero training sessions to all of our clients at the onboarding stage so we can make sure you start off with it well, especially if you have never used it before.  Multiple users can be added who can all access the software at the same time.  You can also have different access levels for different team members so individuals can access or be restricted from certain parts of the software as appropriate.

2) Up to date reports

Using Xero means you will be able to access up-to-date reports that make it easy to understand how your business is doing. These are also able to be tailored to your specific needs for your company.

3) Cloud accounting

As with the majority of the other products that we love, Xero is cloud based! This means there is no need to save your documents to your PC and your data is backed up automatically and securely so you will never lose it. This also means that it can be accessed anywhere at any time, either via the web browser or the app.

4) Automatically brings in bank feeds

Xero can be set up so that it automatically brings in bank feeds from your business bank accounts and credit cards so your transactions are automatically bought into the software daily.  This limits the need for manual entries and means your figures are up to date in real time. This makes it easy for our bookkeepers as well as we won’t have to ask you for statements!

For a list of available bank feeds please see here.

We can help you set up your bank feed if you need, please just get in touch.

5) Integrations with other software

Xero also has over 1000 different apps, add-ons and integrations with software such as Dext, GoCardless, Stripe, Vend, Square, PayPal and more. Many of these apps can be set up to automate time-consuming tasks to make your admin easier!

If you need any help with setting up apps and integrations with Xero please get in touch.

6) Ahead of the crowd

Xero is typically always one step ahead of its closest competitors.  This can be in terms of reporting or keeping up with change in statutory requirements and legislation such as Making Tax Digital, Domestic Reverse Charge and even the Covid Furlough Scheme. It is constantly evolving and adding new features, particularly based on customer feedback on what features users would like to see implemented or ways existing features can be improved.

If you would like to find out more about Xero, transfer over from your existing software or try a free trial or demo please contact us so we can discuss!

Starting your own business after redundancy

Posted on | by Jade Donno

Facing redundancy can be incredibly challenging, but it could also be the perfect time to start a brand new career based on your interests, your lifestyle and your aspirations.
Does this sound too good to be true?
With these five steps, we can help you transform your redundancy package into your very own startup:

1) Take advantage of your notice period

Typically, you’ll need to work a notice period. Instead of worrying about what comes next, use this time to start planning your new venture!
Dive into research, enrol in training and network as much as possible. The sooner you can start, the better! After all, wouldn’t you prefer to plan for your future whilst you’re still on the payroll?

2) Develop a business plan

Success is all about strategy, so it is important to develop a business plan.
Every business plan will look slightly different, but the main areas you want to focus on are the:

  • Executive summary – create a brief overview of your business detailing what services you offer and what you intend to achieve.
  • Management bio – this is your opportunity to introduce yourself, your values and your professional experience.
  • Marketing plan – identify your target audience, USP and market competitors before explaining how you intend to attract your desired audience.
  • Financial plan – because you’re just starting out, your financial plan will be primarily made up of projections (sales projections, expensive projections, cash flow projections etc.). Make sure you’re thorough with your research if you intend to achieve accurate estimates.

Your business plan will become the blueprint for your company, so the more information you can include, the better – particularly if you want to attract investors!

3) Address any legalities

To establish a legitimate business, you need to fulfil certain legal requirements. Now, these requirements may vary depending on your business model and industry, so it’s always worth checking whether you need to obtain a specific type of permit or insurance.
You can find these answers by visiting the government website or checking with your relevant industry bodies.
It is also worth hiring an accountant early on to advise you on the financial aspect of your business.

4) Open a business bank account

This next point is directed specifically to our sole traders. Although you don’t have to open a business account, we strongly suggest you do. It will make your bookkeeping 10x easier! So unless you want to waste your time separating your expenses and risk receiving a penalty, you should seriously consider setting up a business bank account.
If you are starting a limited company this is also something you will need to do, however it is essential rather than it just being strongly advised.

5) Set yourself boundaries

Starting a business is an exciting endeavour. However, it can become all-consuming. So for our final point we wanted to discuss the importance of setting yourself boundaries and practising self-care.
Firstly, give yourself some grace. Redundancy is incredibly difficult to navigate, so try not to be too hard on yourself – especially during those early days.
And secondly, start as you mean to go on. Give yourself lunch breaks, take time off and allow yourself opportunities to relax. Only then can you avoid burnout and achieve sustainable growth.

When life hands you lemons, make lemonade


No one wants to be made redundant – but that doesn’t mean it has to be all doom and gloom. Instead, this could be the start of your exciting adventure into entrepreneurship! So take the chance, pursue your passion and totally transform your career. You may just find redundancy works in your favour.

Hiring an accountant could save your business!

Posted on | by Jade Donno

A lot of new businesses fail. A lot of old businesses fail. A lot of previously successful businesses fail. Why? Usually, it comes down to issues around finances.

If you’re starting a new business, or if you’ve been in business for years and are trying to grow your team and scale your company, hiring an accountant can help. Here’s how.

1) They help you become more tax-efficient

Tax isn’t easy. Legislation changes all the time and any delays or mistakes could be costly. With an accountant filing your taxes for you, you can have the peace of mind that it is all being done correctly and on time. Not only that, but it saves you a lot of time and resources AND it saves you money. Accountants can reduce your tax burden by identifying opportunities for deductions, and they can help you avoid any government fines.

2) They mitigate the risk of financial mistakes

Accountants know how to identify financial risks and avoid them before they become major problems. What this means for you is that you’ll never spend money you don’t have, you will save money in all the areas you can, and you’ll be more aware and better equipped to stick to a proper budget. Fewer to no financial mistakes means minimal losses and more profit!

3) They actively help you to grow your business

If you get an accountant on board in the early stages of your business, they will help you to develop a plan for growing your business in the right way. Not only that, but they will also ensure that your finances are handled correctly from the beginning so that it doesn’t take over everything else in the future. As your business grows, they will start to provide advice in other areas such as budgeting and financing; payroll and recruitment, cashflow forecasting and investments, and business strategy. They will work with you to ensure you have the financial capabilities and processes needed to work towards your business goals.

Survive and thrive!

Most new businesses fail because of financial issues, so don’t make the same mistake. Hire an accountant as early as possible and get the guidance and expertise needed to take your business to the next level. They will not only help you save money, but they can help you make money as your business grows too.