Working capital refers to the day-to-day funds a business uses to manage its operations. It is the difference between current assets (such as cash, stock, and trade debtors) and current liabilities (such as trade creditors and short-term loans). Efficient working capital management is crucial for the smooth running of any business. But where does this money actually come from?

There are two main types of funding for working capital: internal and external.

Internal sources come from within the business. Profits retained after tax can be reinvested to support stock purchases, fund short-term customer credit, or settle supplier bills. Delaying payments to suppliers (without harming relationships) can also ease pressure on cash flow, as can encouraging faster customer payments. Managing stock levels carefully to avoid tying up funds in excess inventory is another way businesses internally finance working capital needs.

However, not all businesses have the luxury of strong retained profits or optimal cash flow. This is where external sources come into play.

Bank overdrafts are a common short-term solution. They offer flexible access to funds, often with interest charged only on the amount used. Overdrafts are useful for bridging short-term cash flow gaps but can become costly if used for extended periods.

Trade credit from suppliers is another widely used form of funding. By offering payment terms of 30 to 90 days, suppliers effectively finance part of a business’s working capital.

Invoice finance, including factoring and invoice discounting, allows businesses to release cash tied up in unpaid invoices. A lender advances a percentage of the invoice value upfront, improving cash flow while awaiting customer payment.

Short-term loans and revolving credit facilities are also available. These may come from banks or alternative lenders and can provide structured funding with fixed repayment schedules.

The right mix of funding depends on the nature of the business, the industry it operates in, and its financial health.

From 6 April 2025, non-doms face a major shift as the remittance basis is replaced by the Foreign Income and Gains (FIG) regime, now determined by UK tax residence, not domicile. Reporting obligations have expanded significantly.

Under the new rules, nearly all UK-resident individuals must report their foreign income and gains to HMRC, regardless of whether they had previously claimed remittance basis or are claiming relief under the FIG regime.

Former remittance basis users not eligible for the new FIG relief will now be taxed on newly arising foreign income and gains in the same way as other UK residents. However, they will still be taxed on any pre-6 April 2025 FIG that is remitted to the UK.

A key feature of the new regime is the 4-year FIG exemption, available to new UK residents who have not been UK tax resident in any of the 10 preceding tax years. These individuals can opt to receive full tax relief on their FIG for up to four years. Claims must be made through a Self-Assessment return, with deadlines falling on 31 January in the second tax year after the relevant claim year.

Importantly, claims can be made selectively in any of the four years but must include quantified figures for income and gains otherwise, tax will be due at standard rates. An individual’s ability to qualify for the 4-year FIG regime will be determined by whether they are UK resident under the Statutory Residence Test (SRT).

Employing family members can work well, but it does not mean you can skip the rules. HMRC expects full compliance on pay, tax, pensions, and working conditions—just as with any other employee.

When a new employee is added to the payroll it is the employers' responsibility to ensure they meet the employees’ rights and deduct the correct amount of tax from their salary. This includes any employees who are family members.

HMRC’s guidance is clear that if you hire family members you must:

• avoid special treatment in terms of pay, promotion and working conditions;
• make sure tax and National Insurance contributions are still paid;
• follow working time regulations for younger family members;
• have employer’s liability insurance that covers any young family members; and
• check if you need to provide them with a workplace pension scheme.

It is possible to employ young people if they are 13 or over but there are special rules about how long they can work and what jobs they can do. Young workers and apprentices have different minimum wage rates from adult workers for the National Minimum Wage.

There are different rules if you take on volunteers or voluntary staff, but the employer is responsible for health and safety and must give inductions and proper training for the 'job' at hand.

Certain company changes—like a new registered address, email, or director—must be reported to Companies House promptly. Failure to update records risks penalties and non-compliance with UK company law.

These include the following:

Updating the registered office address

If you change your company’s registered office, you are required to notify Companies House. Note that the new address must remain within the same part of the UK where your company was initially registered. For instance, a company incorporated in England and Wales must maintain its registered address within those regions.

Your company’s new address will only be officially changed once Companies House has registered the update. Once this is done, they will automatically inform HMRC.

Changing the registered email address

If you need to update your company's official email address, this involves a separate process. To change a registered email address a request should be made at https://find-and-update.company-information.service.gov.uk/registered-email-address

Other changes that require notification

You should inform HMRC if there are updates to your contact information, business name, or if you appoint an accountant or tax adviser.

You must also notify Companies House within 14 days of any changes involving:

• Company directors or their personal details
• Individuals with significant control (PSC)
• The address where you keep your records, and which records you keep
• Appointment or resignation of company secretaries

Finally, if you issue new shares, Companies House must be notified within a month.

You can report these changes using the Companies House online service or by submitting the appropriate paper forms.

Employees using company fuel for private journeys can sidestep a hefty benefit charge by repaying the full private fuel cost to their employer by 6 July 2025. Miss the deadline, and tax becomes unavoidable.

This repayment process is known as "making good," and requires the employee to repay the employer for private fuel no later than 6 July following the end of the tax year. For the 2024–25 tax year, the repayment must be completed by 6 July 2025.

If the repayment is not made by the deadline, the employee becomes liable for the car fuel benefit charge. This charge is calculated based on the vehicle’s CO2 emissions and the car fuel benefit multiplier. The charge applies regardless of the actual amount of private fuel used, making it potentially costly for employees who only use a small amount of fuel for private journeys, such as commuting.

To avoid the tax, the employee must fully repay the employer for all private fuel used during the year, including fuel used to travel to and from work. Accurate record-keeping is essential, as HMRC will only accept that no benefit has arisen if the full cost is repaid by the deadline. In many cases, repaying the private fuel cost can be more financially beneficial than paying the fuel benefit charge.