Author: Glenn

Why cash flow matters
Profit is important, but cash pays wages, suppliers and loan repayments. Even strong businesses can struggle if money arrives late. A few disciplined habits around invoicing and collections can shorten the time it takes to get paid, reduce borrowing costs, and create headroom for growth.

Set clear expectations upfront
Agree payment terms in writing before work starts, including due dates, late payment interest, and accepted payment methods. Send a simple welcome note that restates these terms, introduces your invoice format, and gives a named contact for queries. Clarity at the beginning prevents disputes later.

Invoice fast, invoice accurately
Raise invoices as soon as a milestone is met or goods are delivered. Include purchase order numbers, full descriptions, and your bank details. Errors cause delays, so use templates and a final pre-send check. Where practical, take deposits for bespoke work and split larger projects into staged invoices.

Make paying effortless
Offer more than one way to pay, for example bank transfer and card. Add a payment link on every invoice and email. Encourage direct debit for recurring fees, which reduces admin and failed payments. If customers require supplier onboarding, complete it early so nothing blocks the first invoice.

Adopt a calm, consistent credit control rhythm
Create a weekly timetable for reminders, starting a few days before the due date. Use friendly wording, provide the invoice again, and ask if there are any problems processing payment. Escalate politely after set intervals and log every contact. Consistency, not confrontation, gets results.

Know when to escalate
Pause further work if terms are exceeded, agree payment plans for good customers in temporary difficulty, and consider professional recovery for persistent issues. Good cash flow is built on clear processes, dependable follow-up, and the confidence to hold the line.

A management buyout keeps the business in familiar hands. The team that already understands customers, systems, and culture steps into ownership, which reduces disruption and protects service quality. For founders, a management buyout allows a planned transition with clear handover milestones and an agreed role after completion if required. This continuity reassures clients, employees, lenders, and suppliers, and helps the company maintain momentum during and after the deal.

Compared with a trade sale, the process is usually more focused and confidential. The buyer group already knows the business, so diligence can be more efficient, with fewer surprises and a smoother negotiation. Pricing can be structured to reflect real performance, for example through staged payments linked to agreed targets, which helps both sides feel that the value is fair and achievable.

Ownership aligns incentives across the team. Managers become investors in outcomes, not only delivery, which encourages sharper decisions on margins, cash flow, and growth priorities. Equity participation helps retain key people and can support a wider share scheme, building a performance culture that rewards contribution. The result is often a more agile business with clear accountability and faster execution.

Funding can be tailored to the business. A mix of bank debt, vendor financing, and private investment can be designed to suit cash generation and risk appetite. Earn outs and warranties can protect both seller and buyer. With the right preparation, including robust management information and tidy legal housekeeping, a management buyout can deliver a clean exit for the owner and a confident new chapter for the team.

HMRC’s Time to Pay lets eligible taxpayers spread tax bills over time, avoiding immediate enforcement. 

If you owe tax to HMRC, you may be able to set up an online ‘Time to Pay’ payment plan depending on the type of tax debt and your circumstances. For self-assessment, you can create a payment plan online if you’ve filed your latest tax return, owe £30,000 or less, are within 60 days of the deadline and have no other debts or payment plans with HMRC.

For employers’ PAYE contributions, online payment plans are available if you’ve missed a payment deadline, owe £100,000 or less, aim to repay within 12 months and have no other debts with HMRC. Additionally, all due PAYE and Construction Industry Scheme (CIS) submissions must be filed.

If you owe VAT, you could set up a payment plan online if you missed the deadline, owe £100,000 or less, intend to pay within 12 months, have filed all tax returns and the debt relates to an accounting period starting in 2023 or later. Businesses on the Cash Accounting Scheme, Annual Accounting Scheme or those making payments on account are not eligible to set up a plan online.

For Simple Assessment debts, online payment plans are possible if you owe between £32 and £50,000, have no other debts with HMRC, and can pay it off within 36 months.

If you are not eligible for an online plan, you must contact HMRC directly. They will ask for details about your income, expenses, other tax liabilities, and any savings or assets, which they may expect you to use toward your debt.

HMRC will offer taxpayers the option of extra time to pay if they think they genuinely cannot pay in full but will be able to pay in the future. If HMRC do not think that more time will help, then they can require immediate payment of a tax bill and start enforcement action if payment is not forthcoming.

HMRC requires businesses to maintain accurate VAT records to ensure correct tax payments. While all businesses must retain general records (such as invoices, bank statements, and receipts), a key requirement under the Making Tax Digital for VAT initiative is keeping specific VAT records digitally.

Businesses must maintain digital records of VAT charged and paid, including:

• The VAT on all goods and services that are sold (supplies made) and purchased (supplies received).
• The time and value of each supply (excluding VAT).
• Any adjustments made to VAT returns.
• Reverse charge transactions.
• VAT accounting schemes used.
• Daily gross takings when using a retail scheme.
• Items where VAT has been reclaimed for Flat Rate Scheme users.
• Total sales and VAT on those sales for those trading in gold and using the Gold Accounting Scheme.

Digital records must be kept using compatible software or spreadsheets that can connect directly with HMRC systems. Where multiple software tools are used, they must be linked digitally, manual transfer of data or ‘copy and paste’ is not allowed. Digital links can include formulas in spreadsheets, imports/exports of XML or CSV files, or uploading/downloading data.

Businesses must start keeping records from the moment they register for VAT and retain them for at least 6 years (10 years if using certain VAT schemes). Exemptions apply only to specific entities, like government departments or those eligible for an exemption from keeping digital records.

Banks must now give 90 days’ notice before closing accounts, giving customers more time to respond.

Since April 2026, new government rules strengthen protections for individuals and small businesses at risk of unfair bank account closures. Under the legislation, banks and payment service providers are required to give at least 90 days’ written notice before closing an account or terminating a payment service, commonly known as debanking. A significant increase from the previous 2-month limit.

Banks are also required to provide a clear explanation for the closure, allowing customers to challenge the decision including through the Financial Ombudsman Service. These changes are designed to protect customers, particularly small businesses, who have often found their accounts shut down without notice or reason, leaving them unable to operate or seek alternatives.

The new rules form part of the government’s wider Plan for Change, aimed at delivering economic security and supporting growth. The rules came into force for relevant new contracts agreed from 28 April 2026 onwards and also apply to the termination of basic personal bank accounts.

There are exceptions in cases where closure is necessary to comply with financial crime laws. Existing protections which prohibit a bank from discriminating against a UK consumer based on political opinions or beliefs remain in place.