Author: Glenn

Kau Media Group (KMG) Ltd. sought to enforce two post-termination employment restriction (PTRs) contained in a contract of employment to restrict Mr. Hart, a former employee, from working for his proposed new employer, MiSmile Media Ltd. (MML).

Mr. Hart had worked for KMG from November 2020 to late 2024 as an Account Director. From 2021, the defendant became Account Director for MML, a longstanding client of KMG. On the 19th of September 2024, Mr. Hart informed Mr. Khokhar of KMG that he had since taken a job at MML despite being offered more favourable terms, having been approached by the CEO of MML. Mr. Khokhar however made it clear that taking such a job was against the terms of Mr. Hart’s contract.

On the 25th of September 2024, Mr. Hart inaccurately told the claimant he had already signed a contract with MML, before proceedings were started on the 13th of December 2024. The High Court however concluded that KMG did not establish that the PTRs were enforceable with respect to confidentiality and refused the application for injunctive relief on the grounds of ‘restraint of trade’.

The onus was on KMG to demonstrate that the PTRs were reasonable, protected its legitimate business interests, and that any restrictions were commensurate with the benefits secured under the contract. Even though the services provided by MML and KMG were overtly identical, making them potential competitors, the work involved did not comprise a core part of KMG’s dental sector business and thus MML was not effectively in direct competition with KMG. Settled case law has established that legitimate interest does not cover “the skill, experience, know-how, and general knowledge" acquired by an employee, in order to rely on this interest, KMG should have demonstrated ‘objective’ knowledge.

Thus, before incorporating or seeking to enforce any PTRs, ensure that any PTR relied upon is reasonable between the parties, protects the company’s legitimate business interests, and does not venture beyond these demarcations, or else the PTR may be rendered void and unenforceable.

1 May 2025 – Due date for corporation tax due for the year ended 30 July 2024.

19 May 2025 – PAYE and NIC deductions due for month ended 5 May 2025. (If you pay your tax electronically the due date is 22 May 2025).

19 May 2025 – Filing deadline for the CIS300 monthly return for the month ended 5 May 2025.

19 May 2025 – CIS tax deducted for the month ended 5 May 2025 is payable by today.

31 May 2025 – Ensure all employees have been given their P60s for the 2024/25 tax year.

1 June 2025 – Due date for corporation tax due for the year ended 31 August 2024.

19 June 2025 – PAYE and NIC deductions due for month ended 5 June 2025. (If you pay your tax electronically the due date is 22 June 2025).

19 June 2025 – Filing deadline for the CIS300 monthly return for the month ended 5 June 2025.

19 June 2025 – CIS tax deducted for the month ended 5 June 2025 is payable by today.

Gross profit is one of the clearest indicators of how well your business is performing. It’s the amount left after deducting the cost of goods sold (COGS) from your sales revenue. Managing your gross profit returns well is crucial because it directly affects your bottom line and helps you understand whether you’re pricing correctly, controlling costs, and making enough to cover your overheads.

What Exactly Is Gross Profit?

Let’s start with the basics. Gross profit = Sales – Cost of Goods Sold. It doesn’t include things like rent, wages (unless they’re directly related to producing the goods), marketing, or admin costs. This figure tells you how much you’re making on the actual product or service before general running costs are factored in.

A healthy gross profit gives you the buffer to pay your bills, reinvest, or take a wage. Poor gross profit might mean your pricing is too low, your suppliers are charging too much, or your operations aren’t efficient.

Why It Matters

Many businesses keep an eye on sales and bank balances, but gross profit tells a deeper story. You might be selling a lot, but if your margins are tight, you could still be in financial trouble. Regularly checking your gross profit margin (usually shown as a percentage) gives you early warning signs if things start slipping.

Improving Gross Profit

There are several ways to manage and improve your gross profit returns:

• Review Pricing: Are your prices competitive and profitable? Don’t undersell your value.
• Reduce COGS: Negotiate with suppliers, buy in bulk where sensible, or streamline production.
• Control Waste: In retail or food businesses, waste is a silent profit killer. Keep a close eye on stock control.
• Focus on Bestsellers: Promote your highest-margin products or services more heavily.

Regular Monitoring Is Key

You should be reviewing gross profit monthly at least. Use accounting software or simple spreadsheets to track changes and spot trends. If you see margins slipping, act quickly. The sooner you fix it, the better your long-term prospects.

Supply line interruptions can be a nightmare for any business. Whether it’s a delay in deliveries, a shortage of materials, or problems with international shipping, things can grind to a halt fast. But with a bit of planning and a calm approach, you can keep things ticking over and reduce the impact.

1. Know your supply chain inside out

The first step is understanding exactly where your goods are coming from and how they get to you. Who are the suppliers? Are they reliant on overseas shipping? Do they have a history of delays? Map it all out so you can spot weak points before they become full-blown problems.

2. Build strong relationships with suppliers

Good relationships matter. If you’ve got a solid connection with your supplier, they’re far more likely to keep you in the loop if issues arise. It also makes it easier to negotiate alternatives or push your order to the top of the queue when things go wrong.

3. Keep a buffer stock if you can

Holding a bit of extra stock can be a lifesaver, especially for critical items. It might tie up a bit of cash, but it gives you breathing space if something doesn’t arrive on time. It’s all about balance – enough to cover a delay, but not so much that it eats into your profits.

4. Have a Plan B (and maybe a Plan C)

Diversify your supply sources where possible. If one supplier can’t deliver, having an alternative ready can mean the difference between a minor hiccup and a major crisis. Even just knowing who else you could call on helps you react quicker.

5. Stay informed and flexible

Keep an eye on news that might affect supply chains – like strikes, border issues, or economic changes. The sooner you know something’s up, the quicker you can respond. And stay flexible. Can you switch to a different product? Delay a launch? Being adaptable is key.

Final thoughts

Supply line interruptions aren’t always avoidable, but they don’t have to derail your business. With a bit of foresight and some strong backup plans, you can weather the storm and keep moving forward – even if the lorries aren’t.

If you're facing financial difficulties and owe tax, HMRC’s Time to Pay service may offer breathing space. From self-assessment to PAYE and VAT, eligible individuals and businesses can spread payments and avoid immediate enforcement.

Businesses and self-employed individuals experiencing financial challenges and with outstanding tax liabilities may qualify for support through HMRC's Time to Pay service. This service helps with unpaid taxes, duties, penalties, or surcharges that cannot currently be paid.

Self-assessment taxpayers with liabilities of up to £30,000 can use the online Time to Pay service to arrange instalment payments for their tax bills. This service is available without needing to speak directly to an HMRC advisor and can be accessed within 60 days of the payment deadline.

To be eligible for the online service, taxpayers must meet the following conditions:

• No outstanding tax returns
• No other unpaid tax debts
• No existing HMRC payment plans

The self-serve option is also available for qualifying PAYE and VAT debts up to £100,000. For taxpayers who don’t qualify for the online option, alternative payment plans can be arranged, typically tailored to the individual’s or business's specific situation and liabilities. These plans allow for debt repayment in instalments over an agreed period.

HMRC generally provides extended payment terms if they believe the taxpayer cannot pay in full immediately but will be able to do so in the future. If HMRC determines that additional time won’t resolve the issue, they may require immediate payment and begin enforcement actions if the debt remains unpaid.