Author: Glenn

Employers must report pay and deductions correctly to HMRC, but errors can usually be fixed in your next FPS.

Employers need to use payroll software or other payroll services to record employees pay, deductions and national insurance contributions on or before each payday. They also need to consider other deductions such as pension contributions and student loan payments.

These payments are reported to HMRC in real time using a Full Payment Submission (FPS). This submission contains all relevant information for each employee.

If you have made a mistake with an employee’s pay or deductions this can usually be corrected by updating the year-to-date figures in your next regular FPS.

HMRC’s guidance also states that you can correct mistakes by submitting an additional FPS before your next regular FPS is due. You would need to:

• update the ‘this pay period’ figures with the difference between what you originally reported and the correct figures
• correct the year-to-date figures
• put the same payment date as the original FPS
• put the same pay frequency as the original FPS
• put ‘H – Correction to earlier submission’ in the ‘Late reporting reason’ field

If you need to correct an employee’s National Insurance deductions, the action required will depend on whether the mistake occurred in this tax year or earlier tax years. There are also different actions that may be required to fix a mistake with an employee’s student loan repayments, again depending what tax year the mistake relates to.

Many business owners see their bank overdraft as a flexible safety net. When cash runs short, the temptation is to ask the bank for a higher limit to keep things moving. While this can provide breathing space in the short term, relying on overdrafts to cover trading losses is one of the riskiest financial strategies a business can adopt.

The key problem is that an overdraft is designed for temporary cash flow fluctuations, not for funding ongoing losses. If sales are falling, margins are shrinking, or costs are out of control, borrowing more simply masks the underlying issues. Instead of addressing the root causes, the business is kicking the problem down the road.

Increased overdrafts also come at a cost. Interest rates on overdrafts are typically higher than other forms of borrowing, and banks may also charge arrangement fees. Over time, these costs eat further into already fragile cash reserves, worsening the loss cycle rather than solving it.

There is also the risk that the bank will eventually say no. If the overdraft has been repeatedly extended and the business still cannot show a plan for recovery, lenders may lose confidence. This can result in the overdraft being frozen or called in, leaving the company without working capital and at risk of insolvency.

A safer approach is to treat persistent overdraft use as a warning signal. It should prompt a review of pricing, overheads, and profitability, and may require fresh equity, restructuring, or a long-term loan if borrowing is genuinely part of the solution. Using overdrafts to fund losses may buy time, but without decisive action, it is rarely a path to recovery.

In every market, businesses face competition. Some competitors may be larger, others may have deeper pockets, but gaining a competitive advantage is not always about size or spending power. It is about finding ways to stand out, deliver value, and build loyalty in ways that others cannot easily copy.

The starting point is understanding what your customers really want. Many businesses assume they know, but without asking directly, they risk focusing on the wrong things. Regular feedback, surveys, and conversations with clients can reveal needs that are not currently being met. Meeting those needs better than your rivals can quickly become a strong differentiator.

Another route to advantage is efficiency. Streamlining operations, adopting smarter technology, or cutting wasted time and cost can enable a business to deliver faster or at a lower price without reducing quality. Even modest savings can provide extra flexibility when pricing against competitors.

Brand and reputation also play a vital role. Trust is hard to win and easy to lose. Businesses that consistently keep promises, communicate clearly, and support their customers when problems arise often enjoy loyalty that competitors cannot buy. A strong reputation can be worth more than any marketing campaign.

Finally, innovation should not be overlooked. This does not always mean launching new products. It can mean packaging existing services differently, offering subscription or fixed-fee pricing, or providing added advice alongside the core offering. Small changes that make the customer’s life easier can be the difference between being a supplier and being a trusted partner.

Competitive advantage is rarely achieved through one big step. It comes from a series of consistent, customer-focused improvements that, taken together, make the business the obvious choice in a crowded market.

Company directors have a legal duty to act responsibly and in the best interests of their business. If a director fails to meet these responsibilities, they can face disqualification from acting as a company director for up to 15 years.

Disqualification can result from ‘unfit conduct,’ which includes actions such as trading while insolvent, failing to maintain proper accounting records, neglecting to submit statutory accounts to Companies House, not paying taxes or using company money or assets for personal benefit. It can also occur if a director is subject to bankruptcy or a Debt Relief Order.

The disqualification process typically begins when The Insolvency Service investigates a company involved in insolvency proceedings or responds to complaints. If misconduct is suspected, the director will be informed in writing and given the option to either defend the case in court or voluntarily accept a disqualification through a formal disqualification undertaking. Other authorities including Companies House, the courts or a company insolvency practitioner can also initiate disqualification proceedings.

Once disqualified, an individual cannot be involved in forming, marketing or running a company or be a director of any company registered in the UK or an overseas company that has connections with the UK. Breaking these rules can lead to a fine or imprisonment. Disqualified directors are listed on public registers maintained by Companies House and The Insolvency Service.

If a call from your bank feels suspicious, just hang up and dial 159 to be connected safely to your bank’s fraud team.

The 159 helpline was launched in September 2021. The helpline is designed to help consumers quickly and safely reconnect with their bank when they receive a suspicious or unexpected call about a financial matter. 159 now works for over 99% of UK retail bank customers, providing an extra layer of protection against phone scams.

If you receive a call that feels off, hang up and dial 159. This short code cannot be spoofed or imitated, unlike many regular phone numbers. It connects you directly to your bank’s fraud team, helping you verify the legitimacy of any request before acting.

The memorable number, with the digits forming a diagonal on the keypad "159", has already been used over 800,000 times since its launch. It works with most major UK banks, including Bank of Scotland, Barclays, First Direct, Halifax, HSBC, Lloyds, NatWest, Royal Bank of Scotland, Santander, Monzo, Starling and Virgin Money.

There are ongoing plans to expand and enhance the service including a proposal for having Ofcom designate 159 as a mandatory “Type A” number, like 999 or 111.

If you receive a call purporting to be from your bank that is concerning, calling 159 is a fast, secure way to protect yourself and your finances.