Author: Glenn

The new rules will allow companies to raise more capital under the following schemes although investors will need to factor in reduced VCT Income Tax relief when assessing opportunities.

The Venture Capital Trusts (VCT) and Enterprise Investment Scheme (EIS) are designed to encourage private investment into trading companies. Both schemes help support business growth while at the same time encouraging individuals to fund these companies.

A number of changes to the schemes were announced at Budget 2025 and will apply from 6 April 2026.

The main changes are as follows:

• Gross assets limits: Companies’ gross assets will increase for EIS and VCT eligibility to £30 million immediately before the share issue (from £15 million) and £35 million immediately after the issue (from £16 million).
• Annual investment limits: Companies will be able to raise up to £10 million annually (from £5 million) and £20 million for knowledge-intensive companies (from £10 million).
• Lifetime investment limits: Companies’ lifetime limit will increase to £24 million (from £12 million), and £40 million for knowledge-intensive companies (from £20 million).
• VCT Income Tax relief: The rate of Income Tax relief for individuals investing in VCTs will reduce from 30% to 20%.

These increases in annual, lifetime and gross assets apply only to qualifying companies that are not registered in Northern Ireland and are not engaged in trading goods, or in the generation, transmission, distribution, supply, wholesale trade, or cross-border exchange of electricity. These companies remain eligible under the current scheme limits.

These changes are designed to encourage larger investments into qualifying companies. Investors should be aware of the reduced VCT Income Tax relief available and ensure that investments still remain worthwhile.

Many businesses regard their overheads as fixed, predictable, and largely outside their control. In reality, an overhead audit often uncovers costs that have risen quietly, services that are no longer used, and processes that have gone unchallenged for far too long. Carrying out a structured review of overheads can make a surprising difference to cash flow, operational efficiency, and long-term resilience.

The first step is gathering recurring costs in one place. Software subscriptions, insurance, utility bills, telecoms, outsourced services, and routine maintenance contracts tend to increase gradually, which means individual changes can slip by unnoticed. When everything is viewed together, patterns become easier to spot. It is common to find duplicated tools, unused licences, or outdated service packages still being paid for out of habit rather than need.

Contract renewals deserve close attention. Many suppliers rely on the fact that clients rarely challenge terms once a service becomes familiar. Automatic renewals can lock a business into pricing or packages that no longer represent value. Reviewing renewal dates and comparing alternatives ahead of time allows the business to renegotiate, downscale, or switch suppliers before costs escalate.

An overhead audit also helps ensure that spending aligns with current operations. If the business has expanded, streamlined, shifted to remote work, or adopted new technology, its overhead structure may no longer make sense. Processes that once required manual effort might now be automated. Support services that were essential during one phase of growth may be unnecessary now. Questioning each cost in the context of how the business operates today often reveals opportunities to both reduce spend and improve workflow.

Energy usage is another area where even small steps can create meaningful savings. Reviewing tariffs, checking meter accuracy, and adopting simple efficiency measures can help stabilise costs in a market where prices move unpredictably. An audit encourages the business to think proactively, rather than reacting only when bills rise sharply.

Beyond savings, the audit strengthens planning. Once overheads are clearly understood, financial forecasting becomes more accurate and decisions around pricing, investment, and staffing become more grounded. The business gains a clearer view of its baseline costs and can respond more confidently to changes in trading conditions.

A regular overhead audit is not about cutting costs for the sake of it. It is about ensuring the business is not held back by waste, habits, or outdated commitments. By reviewing overheads with purpose and structure, a business can improve efficiency, protect cash flow, and build a more stable foundation for growth.

Accountants often see the impact that excess stock has on a business long before the business owner realises what is happening. Over-stocking drains cash, fills storage space, increases waste, and restricts flexibility at key moments. Many business owners still treat high stock levels as a sign of strength, yet in practice it is one of the most common and avoidable pressures on working capital. By helping clients understand how to optimise their stock, accountants can add real value and improve day-to-day decision making.

A good starting point is a closer look at demand patterns. Businesses often order based on habit rather than evidence, and assumptions can easily take on a life of their own. When accountants analyse twelve to twenty-four months of sales data, they usually uncover clear patterns that are not reflected in current ordering behaviour. Seasonal products, slow movers, and steady sellers all behave differently, and understanding these rhythms allows stock levels to align more closely with what customers actually buy.

Accountants also encourage clients to question their reliance on supplier discounts. Bulk deals appear attractive but often hide significant costs. Extra stock ties up cash that could be better used elsewhere and increases storage and handling expenses. A simple comparison between the real carrying cost of excess stock and the financial benefit of a discount often shows that smaller, more regular orders provide better value in the long run. Price per unit is only one part of the equation.

Introducing minimum and maximum stock levels is another practical step. Minimum levels act as early warning points for reordering, and maximum levels help prevent shelves from filling with more than the business can sensibly sell. These controls do not need to be complicated. A straightforward spreadsheet or low-cost stock system can support regular monthly reviews. As conditions change, these levels can be adjusted so the business remains agile and avoids relying on outdated assumptions.

Lead times are another area where accountants frequently help clients identify unnecessary buffers. Many businesses carry more stock than they need because they believe suppliers will take longer to deliver than they actually do. Reviewing real lead times against assumed ones often reveals opportunities to reduce stock safely. When decisions are based on accurate data rather than instinct, clients gain confidence to hold less stock without risking service levels.

Stock ageing reports are equally valuable. They show which items have been sitting unsold for too long. Once slow movers are identified, clients can take action through promotions or clearance activity to release cash and create space for faster-moving lines. Even modest reductions can make a meaningful difference to cash flow.

Finally, accountants highlight the benefits of simple cloud-based stock tools. Even the most basic systems offer alerts, clearer visibility, and easier tracking, which supports more precise ordering without adding unnecessary complexity.

By providing this guidance, accountants help clients reduce waste, free up working capital, and run more responsive operations. Optimised stock levels lead to better decisions, improved resilience, and a healthier overall business.

The rules that govern who pays Income Tax in Scotland is determined by whether an individual is considered a Scottish taxpayer. For most people, determining Scottish taxpayer status is straightforward. Individuals who live in Scotland are considered Scottish taxpayers, while those who live elsewhere in the UK are not.

If a taxpayer has homes in both Scotland and elsewhere in the UK, HMRC guidance is used to determine their main home for Scottish Income Tax purposes. Those without a permanent home who regularly stay in Scotland, such as offshore workers or hotel residents, may also be liable for SRIT.

If a person moves to or from Scotland during a tax year, their tax liability is determined by where they spent the majority of that year. Scottish taxpayer status applies to the entire tax year and cannot be split.

Those defined as Scottish taxpayers are liable to pay the Scottish Rate of Income Tax (SRIT) on their non-savings and non-dividend income.

Employees with a second job, third job or more may be able to defer or delay paying Class 1 National Insurance on their additional employment. This deferment can be requested when Class 1 National Insurance contributions are being paid to more than one employer.

If you have 2 jobs, over the tax year you’ll need to earn:

• £967 or more per week from one job over the tax year.
• £242 or more per week in your second job

If you have more than 2 jobs, over the tax year you’ll need to earn:

• £1,209 or more per week from 2 of those jobs
• £242 or more per week in your other jobs

This deferral could result in NIC deductions at a reduced rate of 2% on your weekly earnings between £242 and £967 in one of your jobs, instead of the standard rate of 8%.

If you are allowed to defer, HMRC will inform you which employer is your main one for full Class 1 National Insurance contributions and which employers you can pay at the reduced 2% rate, sending those employers a certificate of deferment. HMRC does not share information about your other jobs with your employers.

HMRC will check if you have paid enough National Insurance at the end of the tax year and will write to you if you owe anything.