Prepare for Making Tax Digital Changes by digitalising your processes with the help of an expert bookkeeper.

If you’re a small business owner, sole trader or landlord, you’ve probably heard plenty of rumblings about the imminent and non-negotiable changes surrounding Making Tax Digital.

While, on the face of it, it does seem scary when words like “compliance” and “tax” are being wielded by HMRC, it doesn’t have to be.

In this blog post, our experts break down Making Tax Digital and what you need to do in order to be prepared for compliance when the time comes.


What is Making Tax Digital?

Despite the name, Making Tax Digital (or MTD) is not about tax. It’s about bookkeeping.

The government-led initiative centres on moving UK taxpayers’ records from spreadsheets and paper to a fully digitalised system. Introduced in April 2019, it has already gone through a few phases and currently applies to VAT-registered businesses. This is all set to change, however.

As of April 2026, MTD will be applied to Income Tax records for self-employed individuals and landlords with an income of over £50,000, which will require three key changes:

  1. Digital Record-Keeping: All transactions (income and outcome) must be kept digitally in an HMRC-approved software.
  2. Quarterly updates: Single annual returns are a thing of the past. Now, you must send quarterly updates on income and expenditure using an MTD-compliant software.
  3. Final Declaration: Once you’ve submitted all four quarterly updates in one year, you need to finalise your annualised income with a final declaration.

For those affected, MTD isn’t a tax change, but the mandating of digitalised bookkeeping using compliant software.


How a bookkeeper can help with MTD

No matter your threshold or when you’re affected, if you’re worried about the incoming changes to MTD for Income Tax, a bookkeeper can help.

The best way to keep your MTD experience stress-free is to get ahead of the changes by working with an expert bookkeeper to help make the transition to bookkeeping software.

Choosing the right software for you can be a lot to consider, but with Rosemary Bookkeeping, it doesn’t have to be hard. As accredited experts and approved partners with many leading MTD-compliant software like Xero, QuickBooks, Sage, FreeAgent and more, a Rosemary Bookkeeper can help you understand which software will be the best fit for you, get set up and transition to digital in time for the changes.

Or, to completely remove the stress from the equation, you can opt to outsource your bookkeeping to our experts completely, safe in the knowledge that we’ll ensure you stay compliant with MTD and other compliance requirements like AML, as well as keeping your books neat, correct and accounted for.


Want help with your bookkeeping?

If you’d benefit from expert advice, outsourcing and support in time to comply with the upcoming changes for MTD, contact your nearest Rosemary Bookkeeper today for a free, no-obligation quotation on a range of professional bookkeeping services.

Rosemary Bookkeeping is participating in the third annual Forget Me Knot Challenge to support Alzheimer’s Society. 

Alzheimer’s is commonly misunderstood as a natural part of ageing.

However, it is a deadly neurological disease that is currently the UK’s biggest killer, estimated to affect 1 in 2 people in the UK in their lifetime.

This year, ServiceMaster brands across the UK have once again partnered with the Alzheimer’s Society to help them provide help and hope to the 900,000+ people living with dementia in the UK.

Throughout 2025, we’re working closely with our friends at the Alzheimer’s Society to raise a further £10,000 as part of our commitment to supporting them in their cause.

And as part of our fundraising commitment, our businesses nationwide are again undertaking the Forget Me Knot Challenge.

But what is the Forget Me Knot Challenge? And how can you get involved?

This blog post has all the details.


What is the Forget Me Knot Challenge?

The Alzheimer’s Society is represented by the forget-me-not flower, long associated with Alzheimer’s and dementia due to its impact on memory loss.

The Forget Me Knot Challenge is a sponsored virtual relay in which staff and owners from our businesses across the UK run, walk, or cycle the equivalent total mileage between each of our businesses, tying them together and raising funds for Alzheimer’s Society: creating the Forget Me Knot.


How to support us

If you want to support us, please visit our Just Giving page to donate online.

Or, if you’re one of our customers, please feel free to speak to our staff about donating.

Thank you for all your support!

To stay up to date with how we’re doing, stay tuned to our blog and social media channels over the summer.


Need professional bookkeeping services?

Learn the value of a bookkeeper who cares by finding your nearest Rosemary Bookkeeping business for a free, no-obligation quote on our services today.

Rosemary Bookkeeping names Alzheimer’s Society as our Charity of the Year

We are thrilled to announce that Rosemary Bookkeeping has joined the rest of the ServiceMaster Brands UK family in pledging to raise £10,000 this year in support of our charity of the year, Alzheimer’s Society.

This blog post has all the details.


Our Charity of the Year

We have named Alzheimer’s Society our charity of the year.

And have thus pledged to raise £10,000 to go towards their work throughout 2025.

As part of its longstanding commitment as Dementia Friends, our sister brand Merry Maids UK has raised over £14,000 for Alzheimer’s Society through its annual nationwide Forget Me Knot Challenge Campaign over the last two years alongside supporting our staff and customers to have a better cleaning experience by ensuring every Merry Maids cleaner across the UK benefitted from specialist dementia training sessions to better support customers living with dementia across the nation.

This year, we’re kicking it up a notch.

With other brands from ServiceMaster Brands UK pitching in, we have pledged this year to raise £10,000 by opening the annual fundraising initiatives to all of our businesses across the UK.


What has dementia support meant to people?

To Merry Maids customers like this woman from Croydon, the support means her father can maintain his independence:

“My Dad is 93 and has got a serious heart condition and dementia,” she says.

“After a long stay in hospital and living with us for four months, he wanted to live independently,”

“He reluctantly accepted help and within a couple of weeks was looking forward to his visits by Merry Maids.”

“They are very caring and have a very soft spot for Dad,” she adds.

“Which makes my life as a carer easier.”

“Dad would never be without his Merry Maids, and they have made a huge difference to his enjoyment of life.”


Meg Foxhall, Community Fundraiser of Alzheimer’s Society, says:

“We are so grateful that Merry Maids chose Alzheimer’s Society as their Charity of the Year. Each hour people generously give to fundraise for us, every event they take part in, every pound they donate, they’re making a life-changing difference to people living with dementia.

“Alzheimer’s Society provides vital support to people living with dementia, funds groundbreaking research and campaigns to make dementia the priority it should be. Together, we will end the devastation caused by dementia.

“There are currently around a million people in the UK with dementia. But we simply can’t reach everyone without the continued support of our incredible fundraisers like Merry Maids.”


Discover the value of a bookkeeper who cares

If you would benefit from a professional and compassionate bookkeeping services from your local experts, find your nearest Rosemary Bookkeeping business today.

Everything you need to know about the new advisory fuel rates for company car users.

For any business, keeping track of your financials is vital.

So, keeping track of relevant legislation that will affect them is imperative.

On March 1st 2025, HMRC reviewed current Advisory Fuel Rates (AFR) for company car drivers claiming back fuel expenses from their employer.

In this blog post, our experts have compiled a guide on everything you need to know about the new Advisory Fuel Rates.


Who is affected by changing Advisory Fuel Rates?

Mileage rates and any changes apply in certain circumstances for employees who use company cars.

These rates only apply when:

Reimbursing employees for company car business travel:

According to guidance from HMRC, if the mileage rate you pay is lower than the AFR for the engine size and fuel type of the car, there will be no taxable profit and no Class 1a National Insurance to pay.

If your cars are more fuel efficient or the cost of business travel is higher than the AFR, you can use personalised rates to reflect your situation.

However, if your mileage payments are only for business travel or you pay rates higher than the advisory rates but cannot show that your fuel cost per mile is higher, there will be no fuel benefit charge.

Instead, you’ll have to treat any excess as taxable profit and earnings for Class 1 National Insurance purposes.

Employees repay the cost of the fuel for private travel:

If you correctly record all private travel mileage and use the correct rate (or higher) to calculate how much your employees repay you for fuel used for personal travel, there will be no fuel benefit charge.

You will also not need to use the advisory rates, where you can show that employees cover the total cost of private fuel by repaying at a lower mileage rate.


When are Advisory Fuel Rates changed?

Advisory Fuel Rates are subject to regular change. HMRC reviews rates quarterly.

The most recent review happened on the first of March.

They are reviewed on:

  • 1st March
  • 1st June
  • 1st September
  • 1st December

How changes are calculated

The changes made by HMRC reflect fuel and energy prices.

Previously, when reimbursing electric company car drivers, the rate used by many companies was based upon annual figures from the Department for Business, Energy & Industrial Strategy (BEIS) and the electrical energy consumption values from the Department for Transport (DfT).

Starting March 2023, HMRC also incorporated figures published by the Office for National Statistics (ONS) to inform electricity rates. From March 2024 onwards, they’ve utilised data from annual car sales volumes to businesses (Fleet Audits average for the last three years). This year, they’ve also included findings from the Department for Energy Security and Net Zero.

The Department for Energy Security and Net Zero updates its yearly electricity cost, measured in ‘pence per kilowatt hour,’ based on the quarterly Consumer Prices Index from the Office for National Statistics. This adjustment helps reflect any price changes every three months.


How are the new Advisory Fuel Rates calculated?

Advisory Fuel Rates are calculated when the mean miles per gallon (MPG) is taken from manufacturers’ information.

This considers annual sales to businesses (Fleet Audits average from 2021 to 2023 ).

For liquefied petroleum gas (LPG), the MPG used is 20% lower than for petrol due to lower volumetric energy density.

The ‘rates per mile’ are rounded to one decimal place.

The final advisory fuel rates are rounded to the nearest penny.

Rates per mile, which end in 0.5, are rounded to the nearest whole penny for the advisory fuel rate when the underlying unrounded figure ends in a number less than 0.5.

When the underlying unrounded figure ends in a number greater than 0.5, it is rounded to the nearest whole penny.

The DESNZ cost for pence per kilowatt hour is updated by the ONS consumer prices index for electricity.

This is to account for quarterly price variations.

Then, the value of the annual equivalent rate is calculated through the cost of electricity per mile for each model provided by the DfT and electricity price data from DESNZ and ONS.

A weighted average value of the electrical costs per mile for a fully electric car is then calculated using company car sales data across the last three years.

The advisory fuel rates are worked out from the fuel prices in these tables.

Hybrid cars are treated as petrol or diesel cars for advisory fuel rates.


How have Advisory Fuel Rates Changed?

The key changes as of March 2025 include a 1p increase for petrol vehicles with engine sizes between 1401cc and 2000cc and for diesel vehicles up to 1600cc, with no change to other petrol or diesel rates. Likewise, the advisory electricity rate for fully electric cars remains at 7p per mile.

Petrol:

Rates for petrol cars have increased by 1p for petrol vehicles with engine sizes between 1401cc and 2000cc.

Engine size (cc) Mean MPG Fuel price (per litre) Fuel price (per gallon) Rate per mile Advisory fuel rate
Up to 1400 51 138.7 pence 630.7 pence 12.4 pence 12 pence
1401 to 2000 42.3 138.7 pence 630.7 pence 14.9 pence 15 pence
Over 2000 27.1 138.7 pence 630.7 pence 23.3 pence 23 pence

Diesel:

Diesel rates have also increased by 1p for vehicles up to 1600cc. 

Engine size (cc) Mean MPG Fuel price (per litre) Fuel price (per gallon) Rate per mile Advisory fuel rate
Up to 1600 56.9 146.1 pence 664.3 pence 11.7 pence 12 pence
1601 to 2000 49.3 146.1 pence 664.3 pence 13.5 pence 13 pence
Over 2000 38 146.1 pence 664.3 pence 17.5 pence 17 pence

LPG:

Engine size (cc) Mean MPG Fuel price (per litre) Fuel price (per gallon) Rate per mile Advisory fuel rate
Up to 1400 40.8 98.3 pence 446.9 pence 10.9 pence 11 pence
1401 to 2000 33.8 98.3 pence 446.9 pence 13.2 pence 13 pence
Over 2000 21.7 98.3 pence 446.9 pence 20.6 pence 21 pence

Electric:

From 1 March 2025, the advisory electric rate for fully electric cars is 7 pence per mile.

Electrical efficiency — miles per kilowatt-hour Domestic electricity cost (per kilowatt-hour) Rate per mile Advisory electric rate
3.57 25.24 pence 7.06 pence 7 pence

Is it all a bit much?

With legislation changing regularly, keeping track of expenses as a small business can be difficult.

And with fuel rates changing three times a year, it can feel impossible to get a handle on what to do and when.

At Rosemary Bookkeeping, we are on top of all current legislation and are experts in ensuring you know which way is up with your business financials.

By contacting your local expert, you benefit from regular advice and support on all the latest changes to AFR and much more, as well as bespoke and professional management of your bookkeeping needs.

To see how outsourcing your books to your friendly local bookkeeping service could help you, find your nearest Rosemary Bookkeeping business or call 0345 862 0072 today.

Tools of the trade that will save you time and effort in bookkeeping.

As a small business owner, your time is gold dust.

And with so much to do, your bookkeeping is a chore that takes up that valuable time.

But, bookkeeping is not something you can skip out on, particularly with the growing need to keep a digital record.

Luckily, there are many tools on hand that small business owners can use to make bookkeeping easier.

At Rosemary Bookkeeping, we know there’s a lot to consider. What works for one business may be the wrong fit for another.

That’s why we’re breaking down the tools of the trade so you can figure out what bookkeeping aids work for you.


Quickbooks

If you’re researching, you might’ve noticed that many small businesses use QuickBooks Online.

But what makes it so good?

Pros: 
  • Scalable
  • Commonly used by professionals (including us!)
  • Integrates with 3rd party systems and Quickbooks Payroll
  • Cloud-based and available on mobile
  • Easy to use: All features are accessible through a central dashboard
  • Has a plethora of online resources to give you the support you need
  • 30-day trial
  • 4 Subscription plans that vary in price for business size, but can be upgraded as your business grows
  • More advanced plans offer more advanced features, though most small businesses will find the Simple Start Programme (£14/m.o) will suffice
  • Customisable options with mobile app
Cons: 
  • Requires an upgrade for additional users
  • Can suffer from syncing problems with banks and credit cards

Xero

Another popular accounting tool, Xero is rapidly growing into a bookkeeping giant. And like QuickBooks, Xero is designed to grow with your business across its different subscription options.

It also integrates with hundreds of third-party business solutions, many of which you may already use, like Gusto, for payroll.

Here’s the full lowdown:

Pros:
  • Cloud-based and available on mobile
  • 3rd party payroll integration through Gusto and app marketplace
  • Integration with 3rd party services allows online payment collection
  • Simple inventory management
Cons:
  • Limited customer service and reporting
  • Fees charged for ACH payments

FreeAgent

Another cloud-based software, as a FreeAgent partner, we recommend it for freelancers, consultants, and project-based businesses.

Pros:
  • Cloud-based and available on mobile
  • Doesn’t limit transactions behind a paywall
  • Supports unlimited users, clients, invoices and transactions for one monthly price
  • Ideal for keeping track of billable hours and expenses
  • Runs fully RTI-compliant payroll
  • Allows you to create and send estimates and invoices
  • Uses personalised Tax Timeline of upcoming deadlines and amounts due, cash flow, and profitability
  • Files VAT, RTI payroll and Self Assessment tax returns directly to HMRC (ideal for sole traders and limited companies)
Cons:
  • App development and compatibility for Android is lacking, but underway
  • Tax Timeline doesn’t offer a comparison of year-on-year comparison

Sage

Sage is one of the bigger brands, and it’s been around a lot longer than most.

Sage Business Cloud Accounting is specifically geared towards the needs of small to medium-sized corporations and offers two plans for small business owners.

However, it has been described as overly complex and difficult to use.

Here are the pros and cons:

Pros:
  • Cloud-based and available on mobile
  • Offers a free trial or demo before buying
  • Offers invoicing, expense management and reporting, as well as the creation of quotes, estimates, tracking, and inventory management
  • Provides monthly, quarterly, and annual financial reports and reports. These include balance sheets and income/cash flow statements
  • Produces comparison of financial statements, e.g. year-to-year.
  • Many features are preset  and ready for the user to make management streamlined, but also offer multiple customisation opportunities
  • Offers capabilities for budgeting or cash flow forecasting, job costing, auditing, and automated workflows, as well as industry-specific features.
  • Uses a central dashboard to access information and data in one place
  • Link your credit cards and bank accounts
  • Integrates with third-party apps
Cons:
  • Difficult to use and set up. May need a Sage expert to support you. (Luckily, we are!)
  • Features can be complicated to use and need expert support
  • Homepage can become cluttered if not customised
  • Geared towards larger businesses.
  • Lack of documentation and support, often necessitating further support

How Rosemary Bookkeeping helps your business

Each online bookkeeping aid offers something different, with both strengths and weaknesses.

And many can be difficult to use without the right support.

At Rosemary Bookkeeping, we work with accounting tools and offer bespoke support to get the most out of each software.

By regularly consulting your local Rosemary bookkeeper, you’ll be able to receive support specially tailored to you and your business, and we can take care of your bookkeeping for you.

From helping you choose the right software to use, software supply, training and data migration to a complete outsourced bookkeeping service – we can help.

Whether you’re just starting or looking to hire a bookkeeper to support your growth, the best bookkeeping tool for any small business is still a Rosemary Bookkeeper.

To take your first step towards stress-free bookkeeping, find your nearest Rosemary Bookkeeping branch to schedule a free, no-obligation consultation with your local expert today.

The owner of Rosemary Bookkeeping in Stratford is celebrating after winning the award for Rookie of the Year at ServiceMaster Live!

‘ServiceMaster Live!’, which took place this May, was a gathering of franchisees from across the ServiceMaster Ltd. Franchise network that allowed franchisees to network and celebrate each other’s successes over the past few years.

Part of this was an awards ceremony, held at the close of the event which saw many franchisees recognised for their excellent work over the particularly difficult period since the start of the COVID-19 pandemic.

One of these franchisees was none other than Rosemary Bookkeeping’s own Mohammad Hossain, who began his Rosemary journey at the beginning of 2021 after the early lockdowns caused him to take a step back and reconsider his career. Up until this point, Mohammad had been amassing a plethora of skills and experience within the bookkeeping and accounts sector – but decided that it was finally time to put them to good use in running his own business.

When we interviewed Mohammad in early May he told us of his aspirations at this time to grow his business through franchising:

“I wanted to be independent and be out on my own as I was very confident in the skills, knowledge and expertise I had in accounting and services like payroll, VAT, and CIS. I was fully confident that I can run my own business. But I knew it would be difficult for me to do this on my own without any kind of support to help me strengthen and grow the business. So, I decided not to go alone and to go with a franchise that could give me all the support I needed to grow.”

And grow Mohammad has, as evidenced by his winning Rosemary Rookie of the Year at ServiceMaster Live! This award is given to a franchisee in a new business who has successfully implemented the Rosemary model to substantially grow their business, build their local reputation and constantly improve their skills.

As a shining star of our network and a newer franchisee, Mohammad was the perfect candidate for such an award. “It is no wonder Mohammad has won Rookie of the year,” says Rosemary Bookkeeping Marketing Manager Victoria Taylor. “He has so much energy and enthusiasm for growing his Rosemary Bookkeeping Business and providing a highly valuable service to his clients, I am sure this is just the start of what will be an outstanding journey.

His award has also galvanised Mohammad to keep growing and develop further. “It feels wonderful to win Rookie of the Year 2021,” he says. “I feel grateful and inspired. But I attribute this success to the whole Rosemary Team, who have worked work to help me achieve this honour. Having a great award like this award is now inspiring me to set a new ambitious target for the future, and a business plan to achieve it.”

We would once again like to congratulate Mohammad on his award and look forward to working towards what is sure to be a certain and bright future with him.

If, like Mohammad, you would like to begin a franchising journey with us to grow your very own successful bookkeeping business, give our friendly franchise sales team a call on 0116 275 9005, or fill out a contact form today.

Written by Tom Page, Digital Content Writer

With the New Year upon us, there are many things to consider for small business owners across the UK, including the imminent January Self-Assessment Tax Return. At Rosemary Bookkeeping, we understand that the process of keeping up with your books and finances can be challenging and daunting for many, especially with so many other things to think about and juggle.

So, why not make a new year’s resolution now: Don’t struggle alone, get help from the professionals. Rosemary Bookkeeping provides expert financial and bookkeeping advice and support to businesses of all sizes across the United Kingdom.

How we can help

Put simply, bookkeeping is the day-to-day process of accumulating, categorizing, and recording financial transactions. It is a foundation of your finances, providing vital information for reports, financial statements and tax returns. The main role of bookkeeping is to keep all financial transactions record up to date in a proper and systematic manner. Bookkeepers are responsible for a number of tasks like:

  • Data entry
  • Balancing bank ledgers
  • Preparing bank reconciliations
  • Tracking income and expenses
  • VAT returns
  • Maintaining the general ledger
  • And sometimes completing payroll and also producing monthly Profit & Loss reports.

Couldn’t I just hire an accountant?

If you are struggling to manage your finances, your first thought might be to look into hiring an accountant. Whilst there are some clear similarities between the role of an accountant and a bookkeeper, there are some key distinctions that can make quite the difference.

The role of accounting is more to provide a picture of the actual profitability, trends, cash flow and other key financial indicators. In general, bookkeepers produce the data, and accountants review and interpret reports providing insights into the business although an experienced bookkeeper can assist with this too.

In this instance, bookkeepers like Rosemary are here to provide more practical support in taking care of your books and finances for you. Leaving your books to us means that they are maintained monthly by qualified professionals with expert financial knowledge so that you can focus your attention on more important things like the actual day-to-day running of your business, and maintaining a healthy work-life balance.

Outsourcing your books to Rosemary means:

  • Your books are done regularly – so you can see what is going on in your business
  • You don’t have to spend your valuable time doing the books – so you can do things more beneficial to your financial income
  • Paying less than you would for an accountant
  • You don’t need to hire any additional staff. You only pay for the work done
  • You don’t have to do a job you loath

If you need help with your bookkeeping, you can trust Rosemary Bookkeeping. It’s what we do. To find out more about our services, or to chat with our experts give us a call on 0345 862 0072, or find your nearest Rosemary Bookkeeping business here.

Client Problem:

  • Struggling to keep up with their Bookkeeping from Jan 2020 since their 20 years long standing Bookkeeper left suddenly
  • The books were left unreconciled
  • VAT had not been accounted properly
  • Covid-19 hed left them short staffed and unable to keep the records updated
  • Huge backlog needed clearing

How we helped

The clients accountant advised them to find a bookkeeper who could handle the bookkeeping backlog.

They also needed a bookkeeper who was able to understand their unique (rarely used) Bookkeeping system and attend their office a minimum of two days a week.

Following the initial enquiry in July 2021, we called immediately so that we could discuss and assess the current situation. We had a long conversation with the client about his business and bookkeeping system so we could get a good understanding of the business and what was required. We subsequently met office with his accountant to put the full process in place.

We took on the specialist Bookkeeping System, which was very complicated and used for; order processing, stock management, disputes issues, bank transaction with several banks, PayPal, Co credit Card, 4 personal credit cards, 5 different loans, HP, eBay+Amazon+Client web sales and purchase issues, bank factoring matters.

The benefit

  • We have relieved the pressure from HMRC & the Accountant for VAT submission and payment
  • The back log was sorted gradually along with the bank reconciliation which was a great help to prepare VAT return for Sep 2021
  • Final Accounts preparation for Year End 31 March 2021 has also begun

If you are not totally happy with your current bookkeeper or are falling behind doing your books yourself, get in touch with Rosemary Bookkeeping Stratford and see how Mohammad can help, call 0208 077 2029 or request a call back.

In light of what’s happening in the world, it’s always nice to hear some positive news, and we’ve got some to share for the local businesses of Stratford. A new bookkeeper is in town, Mohammad Hossain has started his own business in the Stratford area and he looks forward to helping businesses to get back on their feet in the coming months through help with their bookkeeping requirements.

“I decided on a Rosemary Bookkeeping business because I wanted to do my part in helping local businesses with their bookkeeping during and after the pandemic”, said Mohammad.

Mohammad has spent most of his professional working time as a Chartered Certified Accountant and also as a Bookkeeper for a number of Accounting and Audit Firms in London covering various small and medium corporations and in 2020 he decided it was time for a change. He decided to look into owning his own Bookkeeping business because this is the aspect of enthusiasm for his previous roles he most enjoyed. That’s why he came across the Rosemary Bookkeeping and thought it would be a great opportunity to join a national network of bookkeepers to have the help needed from the brand and other business owners.

All of the bookkeepers in the Rosemary Bookkeeping network thrive on helping businesses with their bookkeeping in order to give them more time to grow their business, and Mohammad is no different.

“I’m really pleased to welcome Mohammad to our Rosemary Bookkeeping Network. With all the experience, fantastic attitude and strive to develop his business Mohammad is a great addition to our network of bookkeepers and will be a great support and asset for local Stratford companies. I’m very excited to work with Mohammad and follow his journey to thrive.”, said Nina Ostasz, Rosemary Bookkeeping Brand Manager.