Expanding into international markets can be a game-changer for UK small businesses, opening up new revenue streams and increasing business resilience. With the right knowledge and support, even small firms can successfully sell their products and services abroad. The UK government offers various resources to help businesses navigate the complexities of exporting.

Why Exporting Matters for Small Businesses

Exporting allows businesses to diversify their customer base, reduce dependency on the domestic market, and increase profitability. The UK has strong trade links with Europe, the United States, and emerging economies, providing numerous opportunities for businesses to grow.

However, international trade comes with challenges, including understanding customs regulations, dealing with fluctuating exchange rates, and adapting products to different markets. That’s where government support comes in.

Government Support for Exporting

The Department for Business and Trade (DBT) provides extensive resources to help small businesses start or expand their export operations, including:

• Export Academy – A free training programme designed to help businesses understand the basics of international trade.
• UK Export Finance (UKEF) – Provides financial support such as export insurance, loans, and guarantees to protect against non-payment risks.
• Market Research and Guidance – Access to information on demand for products in different countries, cultural considerations, and regulatory requirements.

Steps to Start Exporting

1. Identify Your Target Markets – Research countries where there is demand for your product or service.
2. Understand Customs and Compliance – Each country has its own regulations for imports, and businesses must comply with local laws.
3. Consider Logistics and Shipping – Work with freight forwarders or couriers who specialise in international shipping.
4. Adapt to Local Preferences – Modifying packaging, pricing, or marketing strategies to suit the target audience can enhance success.
5. Use Trade Shows and Networking – Attending international trade fairs can help you connect with potential buyers and distributors.

With the right support and careful planning, small businesses can leverage international markets to achieve long-term success.

Cash flow is the backbone of any small business, yet late payments continue to be a major challenge for entrepreneurs across the UK. According to the Federation of Small Businesses (FSB), around 50,000 businesses close annually due to cash flow problems caused by overdue invoices. To help combat this issue, the UK government has set up the Small Business Commissioner (SBC) to support businesses in tackling late payment disputes and improving payment practices.

Why Late Payments Are a Problem

Late payments can cause severe disruptions to business operations, affecting your ability to pay employees, invest in growth, and maintain supplier relationships. Delays in receiving funds can lead to increased borrowing, higher interest payments, and unnecessary stress for business owners. Worse still, chasing unpaid invoices can be time-consuming and frustrating.

How the Small Business Commissioner Can Help

The SBC is an independent public body that provides free support and advice to small businesses dealing with late payment issues. Services include:

• Advisory Services – Guidance on how to prevent and manage late payments.
• Complaint Resolution – Assisting small businesses in resolving disputes with larger firms over unpaid invoices.
• Webinars and Educational Resources – Free workshops, webinars, and guidance on improving payment practices.

Practical Steps to Avoid Late Payments

To protect your business from cash flow disruptions caused by late payments, consider these strategies:

1. Set Clear Payment Terms – Ensure that all contracts specify payment deadlines, late payment penalties, and accepted payment methods.
2. Invoice Promptly – Send invoices as soon as work is completed, or goods are delivered and follow up promptly.
3. Use Digital Invoicing and Payment Tracking – Tools like QuickBooks, Xero, or Sage can automate reminders and track payments efficiently.
4. Charge Late Payment Interest – Under the Late Payment of Commercial Debts Act, businesses can charge interest on overdue payments.
5. Seek Mediation or Legal Action – If payment disputes escalate, consider mediation through the SBC or taking legal action.

By implementing proactive measures and utilising available support, small businesses can reduce the impact of late payments and maintain a stable financial position.

Your tax code determines how much tax is deducted from your pay. While 1257L is the most common, different letters and numbers can affect how much you owe. From marriage allowance to emergency codes, here’s how to decode what HMRC assigns you.

Your tax code is basically a set of letters and numbers that show whether you are entitled to the annual tax-free personal allowance (the amount you can earn without paying tax). These codes are updated each year and help your employer figure out how much tax to take off your pay.

For the current and next tax years, the standard personal allowance is £12,570, and if you are entitled to this, your tax code will likely be 1257L. This is the most common code and applies to people with one job, no untaxed income, and no taxable benefits like a company car.

But tax codes are not always that straightforward. There are all sorts of other letters and numbers that might pop up. For example, if you are claiming the marriage allowance, your code might have an "M" in it. If you are paying tax at the Scottish rates, your code will start with an "S." And if your personal allowance gets reduced for some reason, like unpaid tax or income adjustments, your code will change accordingly.

Then there are the emergency tax codes—W1 or M1—which are used when someone starts a new job and does not have a P45 yet. These codes mean your tax will be calculated based on just that specific pay period, rather than your full income.

If you spot a 'K' at the start of your tax code, it means deductions (for things like company benefits, state pension, or previous tax owed) are greater than your personal allowance. Your tax deduction won’t be more than half of your pay or pension.

From 6 April 2025, the remittance basis of taxation will be scrapped in favour of a residence-based system. A new 4-year Foreign Income and Gains regime offers tax relief for new arrivals, while transitional measures aim to ease the shift. Here’s what’s changing.

Effective from 6 April 2025, the remittance basis of taxation for non-UK domiciled individuals will be replaced by a simplified, residence-based tax regime.

Additionally, the government will introduce a 4-year Foreign Income and Gains (FIG) regime. Under this regime, individuals newly arriving in the UK who choose to participate will receive full relief (100%) on foreign income and gains during their first four years of UK tax residence, provided they have not been UK tax resident in any of the preceding 10 consecutive years.

As a transitional measure for Capital Gains Tax (CGT) purposes, individuals who have previously used the remittance basis will have the option to rebase personally held foreign assets to their value as of 5 April 2017, provided certain conditions are met.

Furthermore, Overseas Workday Relief will be extended to cover a 4-year period, in line with the new 4-year FIG regime. This change will eliminate the need for individuals using this relief to keep their employment income offshore. From 6 April 2025, the maximum amount of Overseas Workday Relief that can be claimed annually will be the lesser of £300,000 or 30% of the individual's net employment income.

A new Temporary Repatriation Facility (TRF) will also be introduced from April 2025 for a 3-year period. This facility will allow individuals who have previously been taxed on the remittance basis to designate and remit foreign income and gains that arose prior to the reform, at a reduced rate. This includes foreign income and gains held within trust structures that have not been attributed. The TRF will offer a rate of 12% for the first 2 years, and 15% in the final year of its operation.

From 6 April 2025, employers will face a 1.2% rise in National Insurance contributions, alongside a lower NICs threshold. However, an increased Employment Allowance aims to ease the burden for small businesses. Here’s what you need to prepare for these key changes.

The main rate of secondary Class 1 NICs will rise by 1.2%, from 13.8% to 15%. This increase will also apply to the employer rates for Class 1A and Class 1B NICs.

In addition, the Class 1 NICs secondary threshold—the point at which employers begin to pay NICs—will be lowered from £9,100 to £5,000 per year, effective from 6 April 2025. This reduced threshold will remain in place until 5 April 2028. After this period, the secondary Class 1 NICs threshold will be adjusted annually in line with the Consumer Price Index (CPI).

To help support small businesses in adapting to these changes, the Employment Allowance will increase from £5,000 to £10,500. The Employment Allowance allows eligible employers to reduce their NICs liability. Currently, this allowance is available only to employers with NIC liabilities of under £100,000.

The £100,000 threshold for the Employment Allowance will also be removed, allowing all eligible small businesses to benefit from the increased rate. According to government figures, this change means that approximately 865,000 employers will pay no NICs in the coming year. These changes take effect from April 2025. An employer can claim less than the maximum if this covers their total Class 1 NICs bill.