Uncategorised Archives - Simply Balanced Solutions

Motor expenses you can claim if you are self-employed

SBSAdmin — Wed, 09 Apr 2025 08:07:51 +0000

If you’re self-employed and use your own car to make business journeys, then you can claim expenses to help reduce your tax bill. Unfortunately like a lot of things to do with HMRC, it can be complicated. But don’t worry, we’re here to help! Let’s get started.

When are motor expenses classified as “allowable expenses”?

An expense is allowed as a deduction only if it is “wholly and exclusively” for business purposes. This means a journey to a temporary work place (e.g., to a client’s premises) can be claimed, but it doesn’t include: • Normal travel from home to work • Private travel • Mixed journeys: e.g., if you go to the supermarket for your weekly shop and happen to pick up some stationery for work, you can’t claim this.

Calculating motor expenses

There are two ways of working out motor expenses if you’re self-employed (assuming that you own your car): 1) The Mileage Method: A fixed-rate for each mile travelled on business – these are fixed rates set by HMRC that you claim to cover all expenses related to your vehicle. 2) The Actual Cost Method: Actual expenses using detailed records – this allows you to claim the proportion of all motor expenses that relate to your business. Let’s take a look at each in more detail.

The mileage method

You can only use the mileage method if you meet the following criteria: • You don’t claim any other costs for running that car (e.g., insurance, MOT, servicing etc). • You use HMRC’s AMAP (Approved Mileage Allowance payments) rate that applies to the vehicle you are claiming for. This could be a car, van or motorbike. You can’t claim a penny more. • Once you have decided to use this method, you must carry on until you change car.

The full-cost method

If you’re not eligible to use the mileage method, then you can use the alternative full-cost method. To do this, you must keep a record of everything you spend on your vehicle through the year (e.g., petrol, tyres, MOT etc), and work out the proportion of the costs that relate to the business use. You may also be able to claim capital allowances on the business proportion of the initial cost of the vehicle. How do I work out the business proportion? Keep a log of all journeys. There are lots of apps you can use to make it easier – QuickBooks Online has one built in! When it’s time to do your accounts, work out how many of the miles were business related, and this will give you the proportion of your total motor expenses that you can claim. For example, in January you drove 600 miles and 300 of them were for business. You can claim 50% of any vehicle expenses and petrol that month. The mileage method sounds so much easier, why wouldn’t I use that? The mileage rates from HRMC are one size fits all, so if you have a gas guzzling vehicle that’s a bit older and needs repairs, then you might be better to use the full-cost method.

Top tip:

Remember to keep mileage records even if you don’t think you do many miles – those trips to the post office can add up, and its worth claiming them to reduce your tax bill. Need advice on the best method for you? Get in touch! We’re here to help.

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Payment on account: a guide for the self-employed

SBSAdmin — Wed, 09 Apr 2025 08:06:43 +0000

Self-assessments and payment on account can cause a lot of angst if you’re self-employed. The annual rush to get your tax return submitted on time coupled with unexpected tax bills is far from fun. Payment on account is a commonly misunderstood part of the self-assessment process. It was developed by HMRC to help self-employed people spread out their tax bill. (This is HMRC trying to be helpful, although it may not feel like it the first time it happens to you!). Payments on account are tax payments made twice yearly by self-employed individuals so that you don’t have to find it all in one go for the 31st January.

Does payment on account apply to me?

If you owe more than £1,000 in tax and less than 80% of your income tax is collected at source (e.g., through PAYE), then HMRC will require you to make payments on account. For example, if your tax bill for the 2018 to 2019 tax year was £2,000, then you will pay two instalments of £1,000.

When do I need to pay?

You make two payments each year: • By 31st January: during the tax year in question • By 31st July: after the tax year end By paying in two instalments, you spread the cost of your tax bill – a bit like paying monthly if you are an employee.

How does HMRC know how much I need to pay?

Payments on account are calculated based on your previous year’s tax bill. If you owed £2,000 for the 2018 – 2019 tax year, you will need to make two payments on account of £1,000 for the 2019 – 2020 tax year. If you know you are going to pay too much in tax (for example, you are winding your business down), you can apply to HMRC to have the payments reduced. Though be warned -if you reduce the payments too much, then you could be charged interest and penalties by HMRC. If it turns out that you should have paid more tax in the year, then you will need to make a balancing payment on 31st January and future payments on account will be adjusted. For example, if it turns out that your tax bill for the year is £2,500 and you have already paid £2,000, a balancing payment of £500 will be due on 31st January. And your future payments on account will then be increased to £1,250.

Making payments on account for the first time

This can be a nasty surprise if you haven’t prepared for it as you will be expected to pay all the tax for the previous tax year, and the first payment on account all in one go. Using the figures in the above example, that would mean a bill of £3,000 (£2,000 for 2018/2019 and £1,000 payment on account for 2019/2020). It’s one reason to do your tax return as soon as possible so you have time to save for the bill if you hadn’t expected it.

Top tips:

If you complete your tax return early, you won’t pay tax any earlier but you will know how much you have to pay so you can budget. And, if you are due a refund you will receive this earlier. If you can’t afford your bill, the sooner you contact HMRC the better. If you owe less than £10,000, you might be able to set up a Time to Pay Arrangement online. This lets you pay your self-assessment tax bill in instalments. Keep an eye on your profit through the year and try to put money aside to pay your tax bill. A good rule of thumb is saving 20% of profit then you should have more than enough to pay your bill. If it turns out you owe less, you will have a nice little bonus to spend. Need help completing your tax return or understanding payments on account? Get in touch. We’re here to help.

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5 benefits of cloud accounting software for business

SBSAdmin — Wed, 09 Apr 2025 08:04:24 +0000

More and more business owners are turning to cloud accounting software to manage their business finances.

Cutting edge technology is perhaps not what first springs to mind when you think of bookkeepers, we do tend to be a cautious bunch. But most of us are now embracing the power of the cloud when it comes to accounts. It’s simply brilliant.

If you want your business to work smarter and faster, cloud accounting offers a host of benefits to help you work with greater efficiency.

5 benefits of cloud accounting

1. You can access it from anywhere Cloud accounting software means that you can log into your business accounts anywhere with an internet connection. No more worrying about keeping spreadsheets up to date! You can raise invoices on the go and receive your hard-earned cash more quickly.

2. Keep track of your numbers in real time Most banks will link to your accounting software, giving you a real time view of your business finances and access to a variety of useful reports. No more waiting for bank statements to arrive.

3. Easy collaboration with your bookkeeper With cloud accounting, your bookkeeper can log in and access your business finances at any time – helping you to work together with ease. As well as saving time, there’ll be no more sending spreadsheets or back-ups – your bookkeeper will have everything they need readily to hand.

4. Updated and secure With cloud accounting software, your data is saved on a secure cloud server and regularly backed up to give you complete peace of mind. There’s no need to worry about your data being hacked or compromised – it’s all taken care of for you.

5. Save time with automation Cloud accounting software can be linked to a number of handy apps to save you time. One of our favourites is AutoEntry – you can just snap receipts while you are out and about, your bookkeeper can then process them for you. No more rummaging around looking for paperwork.

QuickBooks or Xero?

We’re often asked which cloud accounting software is best. At Simply Balanced Solutions, we like working with QuickBooks and Xero but the choice is yours. Each has its pros and cons. We like to compare it to whether you’re an Apple or Samsung person – the difference is often simply down to personal preference.

Top Tips:

Cloud accounting software has many brilliant benefits, but like anything it pays to do your research. Here’s a few little reminders we like to share with our clients:

• Cloud accountancy packages have a monthly fee which can add up to more than a one-off fee • If the wi-fi goes down, you can’t access your accounts • Relies on all those accessing it to have secure passwords • There are lots of different packages for each software – don’t pay for features you won’t use (you can always upgrade if you need it in the future)

How can we help you?

Our friendly team of QuickBooks and Xero certified advisers can help you get the most from either software package. We can show you product demos, plus share discount codes to save you money. Or, if you already use accounting software and would like to get more from your current package, book a training session and we’ll get you up and running.

Sound good?

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Reverse Charge VAT for the Construction industry

SBSAdmin — Wed, 09 Apr 2025 08:03:12 +0000

From 1st March 2021 VAT is changing within the construction industry It has been brought in to cut down on VAT fraud in the construction sector.

Who does it affect?

The new rules apply to contractors and subcontractors within the Construction Industry Scheme (CIS) who are VAT registered. Under the new rules when a subcontractor supplies services that fall within CIS to a contractor, who is not the end-user, the sub-contractor will no longer charge VAT. Instead, it will be the contractor’s responsibility to declare the input and output VAT on their VAT return. VAT will only be charged to and paid by the end-user customer. If you are not VAT registered it doesn’t apply to you! What do you need to do?

Subcontractors

If you provide services that fall under CIS, you will need to: Get a confirmation that your customer is an end-user, if they are then you will invoice with VAT as normal. If customer is not an end-user then you will need confirmation from them and the reverse charge will apply. Both QuickBooks and Xero have specific VAT codes for this so make sure you select them. From 1st of March you will need to inform customers that the reverse charge VAT has been applied and that they are responsible for declaring the VAT under the reverse charge mechanism. An example of wording that could be used on the invoice is: Customer to account to HMRC for the reverse charge output tax on the VAT exclusive price of items marked ‘reverse charge’ at the relevant VAT rate as shown above. An example invoice can be found here Sample invoice You could set up a new Invoice template in your accounts software so the wording automatically appears.

Contractors

If you buy services that fall within CIS, you will need to speak to your subcontractors to confirm that you are a contractor and not an end user and therefore they will no longer charge you VAT. Your subcontractors VAT will now need to be included on your VAT return – it goes in the sales and purchase VAT boxes so cancel each other out on the return so it won’t cost you anything! If we do your bookkeeping, we will deal with all of this for you. Just submit your paperwork as normal. HMRC have produced useful flow charts to help decide if the reverse charge applies to a transaction: Subcontractor flowchart Contractor Flowchart Links to detailed information the guidance from HMRC can be found below, it is quite long so be warned. How to Use Domestic reverse charge Domestic Reverse Charge Procedure (VAT notice 735) As always we are here to help so if you have any questions please get in touch.

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VAT Deferred due to Covid-19

SBSAdmin — Wed, 09 Apr 2025 07:51:32 +0000

Did you take advantage of the option to defer paying VAT as part of the Government support to businesses during the Coronavirus Crisis? At the time you didn’t have to do anything, you just didn’t have to pay the VAT due until March 2021. As we are now approaching this deadline HMRC has published guidance on how and when to pay including the option of paying by installments.

If you deferred VAT payments due between 20th March and 30th June 2020 and still have payments to make you have 3 options:

pay the deferred VAT in full, on or before 31st March 2021
Join the VAT deferral new payment scheme – the online service is open between 23rd February and 21st June 2021
contact HMRC on 0800 024 1222 by 30th June if you need extra help to pay

You may be charged interest or a penalty if you don’t pay the deferred VAT amount in full by 31st March 2021 or opt into the new payment scheme by 21st June 2021.

The VAT deferral period covered vat returns ending:

February 2020
March 2020
April 2020
May 2020 – for payment on account customers and certain non-standard tax periods only, in addition to the above periods.

If you want to join the new scheme, you will be able to do so from 23rd February up to and including 21st June 2021. If you are on the VAT Annual Accounting Scheme or the VAT Payment on Account Scheme, you will be invited to join the new payment scheme later in March 2021.

To use the online service to sign up to the new payment scheme you must join the scheme yourself, agents cannot do this for you. You have to pay the first installment when you join, and you must be up to date with all other subsequent returns.

The number of installments available is determined by when you join the scheme (the maximum number of installments below includes the first payment that you will make when you join the scheme):

Before you join the scheme, you will need to:

create your own Government Gateway account if you don’t already have one.
submit any outstanding VAT returns from the last 4 years – otherwise, you will not be able to join the scheme
correct errors on your VAT returns as soon as possible
make sure you know how you much you owe, including the amount you originally deferred and how much you may have already paid.

You will not be able to use the online service if:

you do not have a UK bank account
cannot pay by Direct Debit
have dual signatories on your account

The full guidance from HMRC can be read here

Sadly, we can’t set up the deferral payments for you, but we can help you figure out how much you owe.

If you have any questions, please don’t hesitate to get in touch, as always we are here to help!

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Christmas parties and gifts – what can I claim?

SBSAdmin — Wed, 09 Apr 2025 07:50:06 +0000

It’s that time of year again – Christmas! Every year we get asked questions about the rules for entertaining & gifts for clients and staff so that you stay on the right side of HMRC. As always if you any questions please get in touch before you buy gifts etc. that way we can help prevent any nasty surprises with a gift becoming taxable or disallowed. Staff Christmas parties Its been a long year everyone deserves a night out and staff parties are often seen as a good way of rewarding staff and celebrating. As always there are rules you need to remember Christmas parties can be a great tax-free benefit for employees as long as you follow the rules . . . .

The party must be open to all employees, or to all at a particular location.
The total cost of all staff parties or functions within a year must not exceed £150 per head. So if you have a summer BBQ and a Christmas party the total you spend for both must be £150 or less. If you spend £80 on the Xmas party and £80 on the summer BBQ then one will be taxable.

Key points to remember:

The cost per head includes partners or guests of employees attending so be sure to include in the head count when calculating – this means you can spend more!
The £150 includes VAT, as well as any costs such as transport or accommodation provided
If you go over £150 then it becomes taxable, and your employee will pay tax on it through P11ds
If you are VAT registered, we will claim the VAT back

To help us out let us know how many attend your party so we can check if it meets the tax free criteria. Client entertaining Sadly client entertaining is never an allowable deduction for tax purposes even though it feels like it should be as everyone does it – VAT cannot be reclaimed. Remember that if clients are invited to the Christmas party, you cannot reclaim all the VAT incurred and must apportion the costs between the members of staff and clients. Gifts and rewards Everyone likes to receive presents and it’s a nice way to say thank you to staff and customers. Client or customer gifts Business gifts are allowable as a tax deduction if they meet the following criteria::

The total cost of gifts to any one individual over a 12-month period does not exceed £50.
The gift carries a clear advert for the business.
The gift is not food, drink, tobacco, or exchangeable vouchers.

You can still pay for these items through the business, but we won’t claim the VAT back and they will be disallowed when your corporation tax is being calculated. So, feel free to buy gifts for clients but remember the rules. Christmas bonus for staff If you are giving staff cash gifts and bonuses, then they are treated as normal pay and are subject to tax and NI through the payroll as if they were additional salary. Gifts to staff Gifts are in many cases can be treated as exempt if they cost less than £50. This is on the grounds that the cash equivalent of the benefit taxable on the employee is so trivial that it would not be worth pursuing. Using the trivial benefit exemption gifts can be provided to employees as often as you like during the year provided…

The cost of providing the gift does not exceed £50 per benefit (or average of £50 per employee if provided to a group of employees and it is not possible to calculate the exact cost per person)
The gift is not in reward for service or performance
The gift is not cash or cash voucher – this is confusing as it can be a gift voucher e.g. John Lewis or Amazon

Directors Directors can benefit from the trivial benefit exemption but there is a limit of £300 per director per year. It must be paid for direct from the business account not reimbursed. Anything over these limits will need to be declared on a P11d and staff will be taxed on them which will take away some of the goodwill the gift is meant to create. As always if you need more advice or have any questions please get in touch alison@simplybalancedsolutions.co.uk

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Increases to minimum wage rates 2023

SBSAdmin — Wed, 09 Apr 2025 07:47:06 +0000

As we near the end of the tax year, it’s important that employers (and employees) are aware of the increases in minimum wage and benefits that come into effect from 1 April 2023.

National Minimum Wage (NMW)

NMW is the minimum hourly rate that employers must pay to workers aged between 16 & 222 – it applies to full-time, part-time, casual and agency workers. It also applies to some apprentices.

If apprentices are aged under 19 or 19 or over and in the first year of their apprenticeship, then the apprenticeship rate applies instead.

The national Living wage (NLW) is the minimum hourly rate that must be paid to workers aged over 23. The age this applies is dropping to 21 from April 2024.

The rates which will apply from 1 April 2023 are as follows:

Statutory pay

Some of the rates of stator pay are also increasing.

For example, the statutory sick pay rate will increase to £109.40 per week, up from £99.35. Adoption, maternity, paternity, shared parental, and parental bereavement pay will increase to £172.48 per week, up from £156.66.

These increases are good news for employees, but employers need to prepare for these increased costs at a time when all costs are rising.

If you are a client of ours, we will automatically apply the increased rates.

If you need help with running payroll, get in touch.

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Tax Tips for Self-Employed Beauty Professionals: What Can You Claim?

Rumana Jeffreys — Tue, 08 Apr 2025 07:49:43 +0000

Running a beauty business is more than just making people look good—it also means managing your money, tracking expenses, and submitting accurate tax returns to HMRC.

If you’re a self-employed hairdresser, lash technician, nail tech, or makeup artist, the good news is:
👉 You can claim a wide range of business expenses to reduce your tax bill—as long as they’re allowable and properly recorded.

In this blog post, we’ll break down the most common tax-deductible expenses for beauty professionals in the UK, plus some pro tips to keep you compliant and ready for Making Tax Digital (MTD ITSA).

💄 What Are “Allowable Expenses”?

Allowable expenses are costs you incur “wholly and exclusively” for running your business.
By deducting them from your income, you reduce the profit HMRC taxes you on—which lowers your tax bill.

📌 Important: You must keep records and receipts for everything you claim.

✅ Common Tax-Deductible Expenses for Beauty Professionals

Products and Consumables

Shampoo, conditioner, hair colour

Lashes, glue, wax, cotton pads

Makeup kits, brushes, disposables

Nail polishes, gels, files, and remover

🧾 Keep supplier receipts and note which products are used for treatments vs retail sales.

Tools and Equipment

Hairdryers, clippers, straighteners

Lash beds, trolleys, chairs, mirrors

Makeup lights, ring lights, stools

Nail lamps and manicure tables

🛠️ If it lasts longer than a year, it may count as capital expenditure—ask your bookkeeper how to treat it.

Training and Education

Accredited courses (e.g. lash extensions, brow lamination)

CPD workshops and industry seminars

Certification renewals

🎓 Claim only if it’s directly related to your existing services—not brand new qualifications.

Uniform and PPE

Branded tunics or aprons

Gloves, masks, sanitising sprays

Towels and disposable bed covers

👚 Everyday clothing (even if “only worn at work”) is not claimable—uniforms must have a logo or be specific to the role.

Marketing and Advertising

Website hosting and design

Social media ads (Instagram, Facebook)

Printed leaflets, loyalty cards, signage

Photography and branding shoots

📣 Promoting your services = valid expense. Just keep digital invoices and campaign reports.

Salon Rent or Mobile Costs

Studio/salon chair rental

Mobile travel (fuel, parking, business mileage)

Client refreshments or hospitality

🚗 If you’re mobile, track your mileage with software like QuickBooks Self-Employed or FreeAgent.

Software and Admin Tools

Booking apps (e.g. Fresha, Treatwell)

Accounting software (e.g. QuickBooks, Xero)

Canva, Zoom, scheduling tools

💻 These subscriptions are claimable if used for your business.

Phone and Internet

A portion of your mobile phone bill
Wi-Fi if working from home

👀 What You Can’t Claim

🚫 Everyday clothes (even if worn at work)
🚫 Hair or beauty treatments for yourself
🚫 Non-business meals or leisure travel
🚫 Courses that teach you new, unrelated skills

📅 Get Ready for Making Tax Digital (MTD)

From April 2026, self-employed professionals earning over £50,000/year will be required to:

Keep digital records

Submit quarterly income updates

Use HMRC-approved software

✨ Final Tips for Tax Success

✅ Keep every receipt (paper or digital)
✅ Record your income and expenses monthly
✅ Use MTD-compliant software to stay organised
✅ Work with a bookkeeper who understands the beauty industry

💬 Need Help with Your Beauty Business Bookkeeping?

At Simply Balanced Solutions, we specialise in bookkeeping for:

Hairdressers (freelance & salon-based)

Lash & brow techs

Nail techs and MUAs

Mobile and home-based beauty pros

Let us help you stay compliant, get ready for MTD, and keep more of what you earn.

Beauty is your business. Numbers are ours.

The post Tax Tips for Self-Employed Beauty Professionals: What Can You Claim? appeared first on Simply Balanced Solutions.

Why Your Business Needs a Bookkeeping Firm and an Accountant

Rumana Jeffreys — Mon, 07 Apr 2025 18:24:02 +0000

If you’re running a small business or working for yourself—whether as a tradesperson, consultant, or beauty professional—you probably already have an accountant.

But here’s the question most business owners don’t ask:

👉 Should you also have a bookkeeping firm?

The answer is a confident yes—and here’s why.

In this post, we’ll break down four key reasons why having both a bookkeeper and an accountant can help you save time, stay compliant, and run a more successful business.

🔍 1. Bookkeepers Give You Real-Time Financial Clarity

Accountants usually step in at year-end or tax time. Bookkeepers are there every month.

A dedicated bookkeeping firm keeps your records updated all year round—tracking:

Income

Expenses

Receipts

Bank transactions

VAT (if registered)

This gives you a clear view of your cash flow and profitability, not just once a year but all the time. It also means your accountant gets accurate, organised numbers—making their job easier and more efficient.

📌 Think of your bookkeeper as the foundation. Your accountant builds on top of it.

💡 2. You’ll Make Smarter Business Decisions

With monthly or quarterly reports from your bookkeeper, you’ll be able to:

See what’s really making you money

Spot where costs are creeping up

Plan for quiet seasons

Know when you can afford to invest or hire

Instead of relying on your bank balance or gut feeling, you’re making decisions based on real numbers—helping your business grow with confidence.

⚖️ 3. You’ll Avoid Errors, Penalties, and HMRC Headaches

With Making Tax Digital for Income Tax (MTD ITSA) coming soon, it’s more important than ever to keep digital records and submit accurate data.

A bookkeeper helps you:

Stay compliant with MTD rules

Record everything correctly and on time

Keep digital backups of receipts

Avoid fines for missed deadlines or inaccurate submissions

Your accountant will thank you—and you’ll sleep better knowing you’re fully compliant.

💷 4. It’s Cost-Effective (and Saves Time for Your Accountant)

When a bookkeeper keeps everything tidy throughout the year, your accountant doesn’t need to:

Chase you for missing documents

Fix errors in your records

Spend hours on admin

That means they can focus on the high-value stuff—like tax planning, profit strategies, and financial advice.

And in many cases?
✅ You’ll actually save money on accounting fees because they’re working from clean, organised data.

👥 Bookkeeper + Accountant = The Dream Team

To sum it up:
Your bookkeeper manages the day-to-day.
Your accountant handles the strategy and compliance.

Together, they help your business stay:
✅ Organised
✅ Profitable
✅ HMRC-compliant

📞 Need Help with Bookkeeping in Clanfield or Hampshire?

At Simply Balanced Solutions, we specialise in working alongside accountants to support:

Self-employed tradesmen

Consultants & freelancers

Hairdressers and beauty professionals

We’ll help you stay compliant, stress-free, and focused on running your business—not drowning in admin.

The post Why Your Business Needs a Bookkeeping Firm and an Accountant appeared first on Simply Balanced Solutions.

Bookkeeping Basics for Builders: 5 Mistakes That Cost You Money

Rumana Jeffreys — Sun, 06 Apr 2025 18:12:37 +0000

If you’re a self-employed builder, you’re probably no stranger to long days, tight deadlines, and chasing up payments. But when it comes to bookkeeping, it’s easy for the paperwork to pile up—and cost you money without you even realising it.

In this post, we’re breaking down 5 common bookkeeping mistakes builders make—and how to avoid them, so you can protect your profits, stay HMRC-compliant, and grow your business with confidence.

❌ Mistake 1: Mixing Business and Personal Expenses

Why it’s a problem:

Using one bank account for both business and personal spending makes it hard to track your income and claim allowable expenses. It also raises red flags with HMRC.

Solution:
✅ Open a separate business bank account and use it only for materials, fuel, tools, subcontractor payments, and other work-related costs. This makes bookkeeping cleaner—and tax returns easier.

❌ Mistake 2: Not Keeping Digital Records (Especially with MTD Coming)

Why it’s a problem:
With Making Tax Digital for Income Tax (MTD ITSA) starting in 2026 for those

earning over £50,000, you’ll be required to submit quarterly digital tax returns and use compatible software.

Waiting until the last minute to go digital can lead to fines, confusion, or expensive mistakes.

Solution:
✅ Start using MTD-compliant software like QuickBooks, Xero or FreeAgent now, so you’re ready well before the deadline. It’ll save you hours and improve accuracy.

❌ Mistake 3: Ignoring the Construction Industry Scheme (CIS)

Why it’s a problem:
If you’re a subcontractor and not tracking CIS deductions correctly, you could be missing out on tax refunds. If you’re a contractor and not submitting CIS returns, you risk penalties.

Solution:
✅ Work with a bookkeeper who understands CIS rules. They’ll ensure your payments, deductions, and monthly returns are properly managed—so you don’t pay more tax than necessary.

❌ Mistake 4: Losing Receipts and Missing Out on Tax-Deductible Expenses

Why it’s a problem:
Every time you forget to log a purchase (like tools, fuel, work boots, or parking fees), you’re paying more tax than you should. Over a year, that adds up to thousands.

Solution:
✅ Use your accounting app to snap and save receipts on the go. Most software will even auto-match it to your bank transaction—no paperwork, no stress.

❌ Mistake 5: Only Looking at Your Numbers Once a Year

Why it’s a problem:
If you’re only reviewing your income and expenses when it’s time to submit your Self Assessment, you’re running blind. You could be:

Underselling your services

Missing signs of cash flow problems

Overspending on materials or subcontractors

Solution:
✅ Review your books monthly. Better yet, get a bookkeeping firm to keep everything updated in real time so you always know where your money’s going.

🛠️ Your Bookkeeping Doesn’t Have to Be a Headache

At Simply Balanced Solutions, we help builders, electricians, plumbers and other tradespeople:

Go digital

Stay on top of CIS

Track expenses properly

Submit returns on time

Get ready for MTD

We speak your language—no jargon, no judgment.

📞 Book Your Free 15-Minute Call

Need help with bookkeeping, software setup or MTD compliance?
👉 Contact us now for a free consultation

Your tools earn you money. Your books help you keep it.
Avoiding these 5 mistakes can mean the difference between a stressful tax bill—and a healthy, profitable trade business.

Ready to get it sorted? We’re here to help.

The post Bookkeeping Basics for Builders: 5 Mistakes That Cost You Money appeared first on Simply Balanced Solutions.

Tax Rates and Allowances 2025/2026

Rumana Jeffreys — Sat, 05 Apr 2025 17:40:13 +0000

As the new tax year commences in April 2025, several significant changes have been introduced that will impact businesses across the UK. At Simply Balanced Solutions, your trusted bookkeeping partner in Clanfield, Hampshire, we aim to keep you informed and prepared. Here’s a breakdown of the key updates:

Income Tax Rates and Thresholds

The income tax rates for England remain unchanged for the 2025/26 tax year:

Personal Allowance:£12,570

Basic Rate (20%):£12,571 to £50,270

Higher Rate (40%):£50,271 to £125,140

Additional Rate (45%):Over £125,140

Other tax rates and allowances 2025/2026 can be found on the GOV.UK website.

Minimum Wage Increases

Effective from 1st April 2025, the National Minimum Wage and National Living Wage rates have increased:

National Living Wage (21 and over):£12.21 per hour

Ages 18–20:£10.00 per hour

Under 18s and Apprentices:£7.55 per hour

These adjustments represent significant increases, particularly for younger workers and apprentices.

Employer National Insurance Contributions

From 6th April 2025, employers face notable changes to National Insurance contributions:

Increased Rate:The employer NIC rate has risen from 13.8% to 15%.

Lowered Threshold:Employers now start paying NICs on employee earnings above £5,000 per year, down from the previous £9,100 threshold.

These changes mean that employers will incur higher NIC costs, even for lower-paid employees.

Employment Allowance Enhancements

To alleviate some of the increased NIC burden, the Employment Allowance has been increased:

This change allows more businesses to benefit from reduced NIC liabilities.

Making Tax Digital (MTD) for Income Tax Self-Assessment

While not immediate, it’s crucial to prepare for the upcoming MTD requirements:

Effective Date:From April 2026, self-employed individuals and landlords with income over £50,000 will need to comply with MTD for Income Tax Self-Assessment.

Early adoption of compatible digital record-keeping systems is advisable to ensure a smooth transition.

Stay Ahead with Simply Balanced Solutions

The April 2025 tax changes bring both challenges and opportunities for UK businesses. Proactive planning and informed decision-making are key to navigating these updates effectively.

At Simply Balanced Solutions, we are committed to supporting businesses in Clanfield and the surrounding Hampshire area with expert bookkeeping and tax advisory services.

Contact us today to discuss how these changes may affect your business.

New Allowance:£10,500 per year, up from £5,000.

Eligibility Expansion:The previous restriction disallowing employers with NIC bills over £100,000 from claiming the allowance has been removed.

The post Tax Rates and Allowances 2025/2026 appeared first on Simply Balanced Solutions.

Why Self-Employed Workers in Hampshire Are Switching to Digital Bookkeeping

Rumana Jeffreys — Fri, 04 Apr 2025 17:23:43 +0000

If you’re self-employed in Hampshire—whether you’re a builder in Clanfield, a consultant in Petersfield, or a hairdresser in Waterlooville—digital bookkeeping is no longer just a “nice to have.” It’s becoming essential.

Thanks to the UK government’s Making Tax Digital (MTD) initiative, big changes are coming for how sole traders manage their finances. And with the MTD for Income Tax Self Assessment (MTD ITSA) deadline approaching, thousands of self-employed professionals across Hampshire are making the switch to digital bookkeeping software.

In this article, we break down why more local business owners are going digital, and how it could save you time, money, and hassle in the long run.

What Is Digital Bookkeeping?

Digital bookkeeping means recording your income and expenses using software like QuickBooks, Xero, or FreeAgent, instead of paper ledgers or spreadsheets.

These tools allow you to:

Log transactions in real-time

Connect your bank account for automatic updates

Track VAT and income tax

Send invoices and get paid faster

Stay compliant with HMRC’s Making Tax Digital requirements.

If you’re still using notebooks or Excel sheets, you might find yourself overwhelmed—or worse, non-compliant—once MTD ITSA becomes mandatory.

What Is Making Tax Digital for Income Tax (MTD ITSA)?

Starting from April 2026, all sole traders and landlords earning over £50,000 per year will be required to:

Keep digital records

Use MTD-compliant software

Submit quarterly updatesto HMRC instead of just one yearly return

By April 2027, this will extend to those earning over £30,000. That includes plumbers, electricians, decorators, salon owners, lash techs, mobile beauticians, and more—right here in Hampshire.

Why Local Self-Employed Workers Are Making the Switch

Here’s why many of your fellow tradespeople, consultants, and beauty professionals in Hampshire are ditching old-school methods:

✅ 1. Stay Ahead of Legal Changes

With the MTD deadline approaching, switching early gives you time to adapt—without stress or penalties.

✅ 2. Save Hours Each Month

Manual bookkeeping takes time. Digital tools automate everything from expense tracking to invoicing.

✅ 3. Keep HMRC Happy

Avoid fines, errors, or missed deadlines. MTD-compliant software keeps you on the right side of tax rules.

✅ 4. Run Your Business Smarter

Real-time financial insights help you make better decisions—whether you’re pricing your services or planning for growth.

✅ 5. Easier Support From Your Bookkeeper

Sharing access to your cloud-based records makes it faster and easier for your accountant to help you—without the shoebox of receipts!

Ready to Go Digital? We Can Help.

At Simply Balanced Solutions in Clanfield, we specialise in helping self-employed professionals like you get set up with the right tools and support.

Whether you’re:

A self-employed rooferin Havant

A freelance hairdresserin Horndean

A business consultantworking remotely across Hampshire

We’ll help you:

Choose the right MTD-compatible software

Migrate from your current system

Keep your records clean, compliant, and ready for HMRC
Free Consultation Offer
If you’re self-employed and not yet ready for MTD, we’re offering free 15-minute consultations to help you understand your options and make a plan.
👉 Contact us now to book a call

Switching to digital bookkeeping isn’t just about compliance—it’s about running a smarter business. The sooner you make the move, the more control you’ll have over your finances and your future.

Don’t wait until the last minute. Join the growing number of self-employed workers in Hampshire who are making the switch—and getting ahead.

The post Why Self-Employed Workers in Hampshire Are Switching to Digital Bookkeeping appeared first on Simply Balanced Solutions.

Tax Rates and Allowances 2025/2026

Rumana Jeffreys — Thu, 03 Apr 2025 17:44:47 +0000

Tax Rates and Allowances 2025/2026

Income Tax Rates and Thresholds

The income tax rates for England remain unchanged for the 2025/26 tax year:

Personal Allowance: £12,570
Basic Rate (20%): £12,571 to £50,270
Higher Rate (40%): £50,271 to £125,140
Additional Rate (45%): Over £125,140

Other tax rates and allowances 2025/2026 can be found on the GOV.UK website.

Minimum Wage Increases

Effective from 1st April 2025, the National Minimum Wage and National Living Wage rates have increased:

National Living Wage (21 and over): £12.21 per hour
Ages 18–20: £10.00 per hour
Under 18s and Apprentices: £7.55 per hour

These adjustments represent significant increases, particularly for younger workers and apprentices.

Employer National Insurance Contributions

From 6th April 2025, employers face notable changes to National Insurance contributions:

Increased Rate: The employer NIC rate has risen from 13.8% to 15%.
Lowered Threshold: Employers now start paying NICs on employee earnings above £5,000 per year, down from the previous £9,100 threshold.

These changes mean that employers will incur higher NIC costs, even for lower-paid employees.

Employment Allowance Enhancements

To alleviate some of the increased NIC burden, the Employment Allowance has been increased:

New Allowance: £10,500 per year, up from £5,000.
Eligibility Expansion: The previous restriction disallowing employers with NIC bills over £100,000 from claiming the allowance has been removed.

This change allows more businesses to benefit from reduced NIC liabilities.

Making Tax Digital (MTD) for Income Tax Self-Assessment

While not immediate, it’s crucial to prepare for the upcoming MTD requirements:

Effective Date: From April 2026, self-employed individuals and landlords with income over £50,000 will need to comply with MTD for Income Tax Self-Assessment.

Early adoption of compatible digital record-keeping systems is advisable to ensure a smooth transition.

Stay Ahead with Simply Balanced Solutions

The April 2025 tax changes bring both challenges and opportunities for UK businesses. Proactive planning and informed decision-making are key to navigating these updates effectively.

At Simply Balanced Solutions, we are committed to supporting businesses in Clanfield and the surrounding Hampshire area with expert bookkeeping and tax advisory services.

Contact us today to discuss how these changes may affect your business.

The post Tax Rates and Allowances 2025/2026 appeared first on Simply Balanced Solutions.