Author: Glenn

In today’s competitive market, many businesses feel pressured to extend generous payment terms to win new contracts. However, offering long or risky credit arrangements can strain cash flow and expose you to unnecessary financial risk. The good news is that there are other, more sustainable ways to attract and retain valuable clients.

One effective strategy is to focus on value rather than price. You should emphasise the quality, reliability and consistency of your service. Clients are often willing to pay on standard terms if they see that your business delivers dependable results and reduces their own risks. Highlight testimonials, case studies, and evidence of past performance to reinforce this message.

Second, improve transparency in your proposals. Set out clear timelines, deliverables and support arrangements. Buyers are more likely to accept normal payment terms when they feel confident about what they are getting and when they will get it.

Third, consider flexible but controlled options such as staged payments or deposits. These can balance client confidence with your need for steady cash flow. For example, 30% on order, 40% on delivery, and 30% on completion is often easier for clients to manage than a lump sum.

Finally, build strong relationships. Personal trust remains one of the most powerful negotiating tools. When clients view you as a partner rather than just a supplier, they are less likely to demand extended credit. The aim is not to win contracts at any cost, but to win them on fair, sustainable terms that support both sides.

If your income exceeds £60,000 and you or your partner receive Child Benefit, you can now choose to pay the High Income Child Benefit Charge through your PAYE code instead of filing a Self-Assessment return; a simpler way to stay compliant while keeping your Child Benefit claim active.

The High Income Child Benefit Charge (HICBC) is a charge that applies to parents whose income exceeds £60,000 in a tax year and whose family receive Child Benefit. The charge is calculated at a rate of 1% of the full Child Benefit amount for every £200 of income between £60,000 and £80,000. Once income exceeds £80,000, the charge equals the full amount of Child Benefit received effectively removing any financial gain from claiming it.

Taxpayers now have the option to report their Child Benefit payments and pay the HICBC directly through their PAYE tax code, rather than filing a Self-Assessment tax return. This change was announced in the Autumn Statement 2024 and has recently been made available to eligible taxpayers.

The tax charge can be collected through PAYE if:

• the individual is not required to file a self-assessment tax return for any other reason (for example, if they are self-employed), and
• the payment arrangement is made before 31 January following the end of the relevant tax year.

If these conditions are not met, the HICBC must be paid through self-assessment instead.

Taxpayers can choose whether to continue receiving Child Benefit and pay the charge or opt out of receiving it to avoid the charge altogether. It is usually beneficial to claim Child Benefit as doing so can safeguard certain benefits and ensure your child receives a National Insurance number at age 16.

When a couple is separating or undergoing divorce proceedings, tax issues are often not the first thing on their minds. However, alongside the emotional challenges, it is important to understand the tax implications of divorce can have a significant impact.

Changes to the Capital Gains Tax (CGT) rules for divorcing couples took effect on 6 April 2023. These changes extended the period during which spouses and civil partners can make transfers between each other without triggering CGT. The no gain/no loss rule now lasts up to three years after they stop living together. Additionally, if the couple has a formal divorce agreement, there is no time limit for these transfers. Before this change, the no gain/no loss treatment only applied to disposals in the tax year of the separation.

There are also specific rules for people who continue to have a financial interest in their former family home after separating. These rules allow them to claim private residence relief (PRR) when the home is eventually sold, provided certain conditions are met.

During divorce proceedings, it is crucial to reach a fair financial agreement, if possible, as this can help avoid further legal complications. If an agreement cannot be reached, the court may step in to issue a "financial order." Both parties and their advisers should also carefully consider the future of the family home, any family businesses, and the potential Inheritance Tax consequences of the separation or divorce.

Waiting to be paid but still having to hand over VAT? The VAT Cash Accounting Scheme potentially lets you pay VAT only when your customer pays you, helping to ease cash flow pressures for small and medium-sized businesses.

This approach can offer significant benefits if your business offers extended credit terms to customers or regularly deals with bad debts. Rather than having to find the money to pay VAT on sales you have not yet been paid for, the scheme allows businesses to align VAT payments with actual cash received. For many small and medium-sized businesses, this can offer real breathing space and reduce the strain on working capital.

However, the scheme may not be as useful in all cases. If you are typically paid immediately at the point when you make a sale or if your business often reclaims more VAT than it pays out the scheme may offer little or no advantage. The same applies to businesses that make continuous supplies of services, where the VAT treatment might not align neatly with cash receipts.

If the scheme is not proving worthwhile, businesses can leave the scheme at the end of a VAT accounting period and return to the standard method of VAT accounting. However, for the right businesses the VAT Cash Accounting Scheme can offer significant benefits.

To join the scheme, a business must have a VAT taxable turnover of £1.35 million or less in the next 12 months. Once in the scheme, a business can continue using it until their turnover exceeds £1.6 million.

HMRC has issued a press release urging 18-23 year olds who have yet to claim their Child Trust Fund (CTF) cash to do so as soon as possible. According to HMRC, over 758,000 young adults in this age group have unclaimed funds, with the average savings pot estimated to be around £2,240.

Anyone who turned 18 on or after 1 September 2020 could have unclaimed money in a dormant CTF. Parents of children aged 18-23 should also check if their children have claimed the funds to which they are entitled.

Children born between 1 September 2002 and 2 January 2011 were eligible for a CTF account, with the government contributing an initial deposit, typically at least £250. These accounts were set up as long-term savings for newly born children.

HMRC’s Second Permanent Secretary and Deputy Chief Executive, said:

‘If you’re between 18 and 23, you could be sat on a savings payout and not even realise it. Just search ‘find my Child Trust Fund’ on GOV.UK to find your savings account today.’

More than 563,000 young people went online to find their CTF in the 12 months to August 2025. September 2024 was the busiest month when over 71,000 searches were submitted.

Approximately 6.3 million Child Trust Fund (CTF) accounts were created during the scheme's operation. If a parent or guardian was unable to open an account for their child, HMRC stepped in and set up a savings account on the child’s behalf.