Not all VAT-free sales are the same. Understanding the key difference between zero-rated and VAT-exempt supplies could save your business money and prevent costly VAT mistakes.

It's important to understand the distinction between zero-rated and VAT-exempt supplies. While both may appear similar, because no VAT is charged on the sale, the implications for businesses are very different.

If a supply is exempt from VAT, it means no VAT is charged to the customer, and no output VAT is due. However, the downside for businesses is that they cannot reclaim any input VAT (i.e., VAT paid on purchases or expenses related to the exempt activity). This can make exempt activities more expensive to provide, particularly for businesses that incur significant VAT on costs.

Common examples of VAT-exempt supplies include:

• Insurance
• Finance and credit
• Education and training
• Fundraising events run by charities
• Health and welfare services
• Postal services
• Betting and gaming
• Subscriptions to membership organisations
• Selling, leasing, and letting of commercial land and buildings (though this exemption can be waived under certain conditions)

There are exceptions and detailed rules in most of these examples cited above. Whether a supply qualifies as being VAT exempt may depend on how it's structured and who is receiving the service.

Make regular gifts from your income and avoid inheritance tax. If structured properly, surplus income gifts can support loved ones and stay outside your estate without the seven-year survival rule.

Wealthier individuals can benefit from a lesser-known but highly effective IHT exemption for gifts made out of surplus income. This is particularly useful for structured, recurring gifts such as grandparents helping with school fees or contributing to a child's living expenses.

These gifts may be fully exempt from inheritance tax if they meet three key conditions:

1. They form part of the transferor’s normal expenditure,
2. They are made out of the transferor’s income, and
3. The transferor retains enough income to maintain their usual standard of living.

If these criteria are met, the gifts are immediately exempt, they do not require the donor to survive seven years, as is the case with potentially exempt transfers (PETs).

It’s important to note that part of a gift may qualify under this exemption, while the remaining portion may be chargeable or exempt under another rule. However, these rules do not apply to certain types of transfers, including:

• Transfers on death or on the ending of a qualifying interest in possession in a trust,
• Certain deemed PETs under Finance Act 1986,
• Transfers made by close companies,
• Premiums on life insurance policies linked to annuities,
• Transfers of capital assets unless those assets were bought with income specifically for gifting.

The exemption does not override the gift with reservation rules, meaning if the donor retains a benefit from the gifted asset (e.g., continues to live in a gifted property rent-free), the gift may still be treated as part of their estate for IHT purposes.

To take advantage of the income-based exemption, careful consideration has to be given to ensure that these payments form part of the transferor’s normal expenditure and is made out of income and not out of capital. The transferor must also ensure that they are left with enough income for them to maintain their normal standard of living after giving any gifts. HMRC may request evidence such as bank statements, income records, and written intentions to support a claim for this exemption. 

The UK government has officially concluded its involvement with NatWest Group, formerly known as the Royal Bank of Scotland (RBS), by selling its remaining shares. This move ends nearly 17 years of public ownership that began during the 2008 financial crisis.

In 2008 and 2009, the government injected £45.5 billion into RBS to stabilise the bank, which at the time was one of the largest in the world, with over 40 million customers and operations in more than 50 countries. This intervention was deemed necessary to protect the UK economy and financial system from collapse, safeguarding millions of savers, businesses, and jobs.

Economic Secretary to the Treasury, Emma Reynolds, highlighted that bringing NatWest fully back into private ownership is a significant milestone for the UK banking sector post-financial crisis. She noted that the current government halted a planned retail share sale, which could have cost taxpayers hundreds of millions, opting instead to sell shares at market value to prioritise taxpayer interests.

To date, £35 billion has been returned to the Exchequer through share sales, dividends, and fees. While this is approximately £10.5 billion less than the original support provided, the Office for Budget Responsibility has indicated that the cost of inaction would have been far greater, potentially devastating people's savings, mortgages, and livelihoods, and undermining confidence in the UK's financial system.

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.

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.