Author: Glenn

Could you save up to £1,260 in tax this year? If one of you earns less than £12,570, the Marriage Allowance lets couples transfer unused personal allowances. Don't miss out on this easy tax break!

The Marriage Allowance applies to married couples and civil partners where one partner does not pay tax or does not pay tax above the basic rate threshold for Income Tax (i.e., one partner must earn less than the £12,570 personal allowance for 2024-25).

The allowance allows the lower-earning partner to transfer up to £1,260 of their unused personal tax-free allowance to their spouse or civil partner. The transfer can only be made if the recipient (the higher-earning partner) is taxed at the basic 20% rate, which typically means they have an income between £12,571 and £50,270 for the 2023-24 tax year. For those living in Scotland, this would usually apply to an income between £12,571 and £43,662.

By using the allowance, the lower-earning partner can transfer up to £1,260 of their unused personal allowance, which could result in an annual tax saving of up to £252 for the recipient (20% of £1,260).

If you meet the eligibility criteria and have not yet claimed the allowance, you can backdate your claim to qualifying tax years for up to four years starting from 6 April 2020. This could provide a total tax saving of up to £1,260 for the tax years 2020-21, 2021-22, 2022-23, 2023-24, and the current 2024-25 tax year. If you apply now, you can backdate your claim, as well as for the current year. Applications for the allowance can be submitted online at GOV.UK.

Small businesses across the UK can now access streamlined support and advice through the newly launched Business Growth Service, designed to simplify and enhance the way SMEs engage with government resources.

Simplifying Support for SMEs

Navigating government support has often been a challenge for small and medium-sized enterprises (SMEs). In 2023, only 26% of UK SME employers sought external advice, reflecting the complexity of available resources. The Business Growth Service aims to address this by consolidating support into a single, user-friendly platform.

Launching in 2025, the service will offer:

• Revamped Web Interface: A modern, intuitive website for easy navigation.
• Collaborative Development: Built in partnership with businesses and local governments.
• Localised Delivery: Tailored support to meet regional business needs.

Inspired by successful international business models, this service is part of the government’s broader strategy to boost SMEs' growth, productivity, and economic impact.

Reducing Administrative Burdens

Small business owners spend over 33 hours each month on admin tasks. The new service seeks to cut through bureaucracy, freeing up time for entrepreneurs to focus on growth and innovation.

Government Commitment to SMEs

The Business and Trade Secretary reaffirmed the government's dedication to SMEs stating that:

"This government’s Plan for Change will deliver economic growth, and for that to succeed we need SMEs right across the country to be exporting, hiring, and expanding."

Additional Measures Supporting Small Businesses

The Business Growth Service complements other initiatives, including:

• Financial Support: Programmes like Start Up Loans and Enterprise Finance Guarantee continue to offer capital access.
• Late Payment Crackdown: Strengthened measures ensure prompt payments to small businesses, improving cash flow.
• Regulatory Simplification: Reducing red tape to create a more business-friendly environment.

Looking Ahead

The Business Growth Service is a step-change in SME support, promising a centralized, accessible resource hub to help businesses navigate challenges and seize opportunities.

As the launch approaches, SMEs are encouraged to engage with the service’s development to ensure it meets their needs and supports their ambitions.

Starting your own business is exciting but can be overwhelming if you’re not prepared. To help you navigate the journey, we’ve compiled a list of 10 key considerations that will set you up for success. Whether you’re launching a small business or a full-fledged enterprise, these steps will guide you toward building a solid foundation for your business dreams.

1. Define Your Business Idea

Before diving in, ensure your idea is viable. Ask yourself: What problem does my business solve? Who are my customers? Conduct market research to refine your offering and identify your unique selling point (USP).

2. Create a Business Plan

A solid business plan outlines your goals, target audience, financial projections, and operational strategies. This document not only serves as a roadmap but is also essential if you need to secure funding or investors.

3. Choose the Right Business Structure

Your legal structure—sole trader, partnership, or limited company—affects your tax obligations, personal liability, and regulatory requirements. Research which option aligns best with your vision.

4. Register Your Business

Ensure your business name is unique and not already registered. In the UK, you’ll need to register with HMRC or Companies House, depending on your chosen structure.

5. Understand Your Tax Obligations

Get familiar with taxes like Income Tax, Corporation Tax, and VAT. Keep accurate records and consider using accounting software or hiring an accountant to stay on top of deadlines and compliance.

6. Set a Realistic Budget

Financial planning is critical. Calculate your start-up costs, ongoing expenses, and expected revenue. Create a budget to ensure you’re financially prepared for the first 12 months of operation.

7. Open a Business Bank Account

Separate your personal and business finances. A dedicated business account simplifies accounting, helps with tax filing, and presents a more professional image to clients.

8. Build an Online Presence

In today’s digital age, having a strong online presence is non-negotiable. Create a professional website and set up social media profiles to showcase your products or services and engage with your audience.

9. Protect Your Business

Consider business insurance to protect against unexpected losses. Types include public liability, professional indemnity, and employer’s liability insurance if you plan to hire staff.

10. Comply with Legal and Regulatory Requirements

Depending on your industry, you may need specific licenses or permits. Also, ensure you adhere to health and safety regulations, data protection laws, and employment laws.

Conclusion: Set Yourself Up for Success

Starting a business can feel like a monumental task but breaking it down into these 10 key steps makes the process manageable. With careful planning and attention to detail, you can turn your entrepreneurial vision into a thriving reality.

Ready to take the first step? Give us a call, we can share the knowledge we have gained in supporting numerous businesses through the set-up process.

One of the most commonly used and valuable exemptions from Capital Gains Tax (CGT) is for the sale of a family home. Generally, there is no CGT on a property that has been used as your main family residence. However, an investment property that has never been used as your main home will not qualify. This relief is known as Private Residence Relief (PRR).

The rules change if you live abroad. Since April 2015, non-UK residents are subject to CGT on the sale of UK residential property. Only the portion of the gain made after 5 April 2015 is liable for tax. In certain situations, PRR may still apply if the property was the owner’s only or main residence.

If a UK non-resident sells UK residential property, they must submit a non-resident CGT (NRCGT) return and pay any CGT within 60 days of the sale. This return is required even if no CGT is due, or if there is a loss on the sale, and regardless of whether the taxpayer will report the sale on their self-assessment tax return.

There are penalties for not filing the NRCGT return on time or for failing to pay any tax owed by the deadline.

It is important to take the necessary steps to protect your land and property from fraud.

You are at a higher risk if:

• Your identity has been stolen
• You rent out your property
• You live abroad
• The property is empty
• The property is not mortgaged
• The property is not registered with HM Land Registry

HM Land Registry offers a free property alert service to help protect against fraud. This service monitors properties that might be at risk of fraudulent sale or mortgage. You can monitor up to ten properties through this service.

The alert service is available for any property in England or Wales registered with the Land Registry. Once you register, you will receive email alerts about specific activities on your properties, such as when a new mortgage is taken out, so you can act if needed.

For properties in Scotland or Northern Ireland, you will need to check different registers.