The Budget 2025 confirmed that landlords will face increased income tax on their property income from April 2027. This change forms part of a broader plan to raise revenue and tighten rules on property ownership.
It follows several years of reforms that have already reduced profit margins for many landlords. These upcoming changes also sit alongside the shift to Making Tax Digital, which will require digital record-keeping for landlords within the income thresholds.
This update offers a clear overview of what is changing and how organised bookkeeping, supported by MTD-ready systems, can help you plan.
Property income tax rates will rise in 2027
The Chancellor announced that income tax on property income will increase by two percentage points from April 2027. The new rates will be:
22% for basic rate taxpayers
42% for higher-rate taxpayers
47% for additional rate taxpayers
For many landlords, these increases create another reduction in net returns. The OBR expects rental prices to rise, with typical rents in England predicted to increase by £20 to £25 per month.
For landlords who will soon be required to keep digital records under Making Tax Digital for Income Tax, keeping them updated will become even more critical. This helps you monitor how these higher tax rates affect your overall position.
Why this matters for landlords
The rise follows earlier changes to Mortgage Interest Relief and Stamp Duty, both of which raised the cost of holding rental property. The Office for Budget Responsibility noted that these measures have reduced landlord returns over the past decade.
It also warned that a long-term decline in rental supply could push rents higher if tenant demand continues.
For landlords with tight margins, even small changes in costs or taxes can shift long-term plans. Clear, accurate and digital bookkeeping helps you understand these shifts early. This is especially important as MTD introduces quarterly updates and stronger expectations for real-time record-keeping.
New High Value Council Tax Surcharge
Budget 2025 introduced an annual surcharge on residential properties valued at over £2 million. This will begin in April 2028 and will be based on 2026 valuations.
The surcharge will be banded:
£2,500 per year at the lower end
Up to £7,500 for properties above £5 million
This charge applies to property owners, not council taxpayers, which means landlords will see additional yearly costs. If you hold high-value property, accurate valuations and clear digital records will help ensure the correct surcharge is applied and correctly reported in your MTD submissions when required.
Reaction from industry bodies
Industry groups have raised concerns about the impact on both landlords and tenants. The NRLA has warned that the changes could reduce the number of available rental homes at a time when demand remains high.
Forecasts show that the UK will need close to one million new rental homes by 2031. Rising taxes, higher costs and increased compliance requirements may make it harder for landlords to keep properties in the private rented sector.
With MTD on the horizon, the need for organised, digital and up-to-date financial records will only grow.
What this means for your bookkeeping
New tax rates, added surcharges and the gradual introduction of Making Tax Digital mean that clean, accurate bookkeeping has never been more critical. Having organised digital records will help you understand the impact of rising costs and prepare early.
Here are a few practical steps to consider:
Review your rental income and expenses to understand your current margin
Keep digital records updated so you can model the impact of higher tax rates
Track property costs such as repairs, mortgage interest and fees
Store valuation documents securely for future council tax surcharge checks
Plan for cash flow changes from 2027 to 2028 and how they link to quarterly MTD reporting
Good information helps you manage change with confidence. It also gives you a clearer view when deciding whether to adjust rents, reinvest, or review parts of your portfolio.
How Rosemary Bookkeeping can support landlords
These changes create more pressure on already stretched margins. A structured and digital-first bookkeeping approach helps you stay in control.
Your local Rosemary Bookkeeper can help you:
Maintain clean and accurate property income records
Prepare for changes to tax and surcharges
Keep digital records organised for future MTD requirements
Track rising costs in a consistent and straightforward way
If you want support preparing your records or planning for the new rules, we are here to help.
Find your nearest Rosemary Bookkeeper today.
https://rosemarybooks.co.uk/wp-content/uploads/2025/11/Landlord-Tax.jpg10801080Tim Marshallhttps://rosemarybooks.co.uk/wp-content/uploads/2026/09/Rosemary-Bookkeeping-Teri-Cotta-Logo-white-1030x331.pngTim Marshall2025-12-01 08:00:122025-11-27 15:01:07Budget 2025: What the Income Tax Rise Means for Landlords
We have made a list and checked it twice of festive expenses that you may claim back as business expenses.
Christmas time can be a busy and expensive time for many businesses, big or small.
But with the January Self-Assessment Tax Return deadline looming, here are some festive expenses that you might not have thought about reclaiming.
Decking the Halls
You may not know that you can claim back decorations such as Christmas trees, tinsel, and wreaths as tax-deductible business expenses by recording them as office running costs. However, this does not apply to employees working from home, as HMRC considers these items to be for personal enjoyment rather than office-related use.
A Christmas Party
You may be eligible to reclaim expenses for a Christmas party, but this depends on who attended and the cost incurred.
If the event is open to all employees and costs less than £150, it will be entirely taxable, regardless of the number of people in your organisation.
You cannot claim expenses if clients or associates attend an event, as HMRC classifies this as business entertainment for corporation tax and VAT purposes. Additionally, if an event is not open to all employees, it will not be eligible for claims either.
Therefore, when inviting clients or associates to a Christmas event, ensure you allocate sufficient funds to cover their expenses, as you will not be able to claim any tax relief or recover any VAT on these costs.
It’s important to record this in your financial records and add the costs back when calculating your profit for tax purposes. However, this applies only if the cost per person for the Christmas party, including VAT, does not exceed £150. If it does exceed this amount, it will be considered a taxable benefit.
Presents
Since it is Christmas, you may consider buying gifts for your staff or clients.
When giving gifts to clients, you can record these expenses as business costs, as long as they adhere to the appropriate guidelines to avoid any implications of bribery.
You don’t have to pay tax on a benefit for your employee if all of the following apply:
It costs you £50 or less to provide
Cannot give cash or a cash voucher
It is not a reward for their efforts or performance.
It is not included in the terms of their contract.
This is known as a ‘trivial benefit’. You don’t need to pay tax or National Insurance, or let HM Revenue and Customs (HMRC) know.
More guidance and information on gifts for staff can be found on the HMRC website.
https://rosemarybooks.co.uk/wp-content/uploads/2024/11/RB-Festive-Expenses-You-Can-Claim-Back.jpg800800Yopphttps://rosemarybooks.co.uk/wp-content/uploads/2026/09/Rosemary-Bookkeeping-Teri-Cotta-Logo-white-1030x331.pngYopp2025-11-21 08:35:092025-11-21 11:12:50Festive Expenses You Can Claim Back
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:
Digital Record-Keeping: All transactions (income and outcome) must be kept digitally in an HMRC-approved software.
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.
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.
https://rosemarybooks.co.uk/wp-content/uploads/2025/08/Brand-Thumbnails-and-Graphics-800x800-7.png800800Yopphttps://rosemarybooks.co.uk/wp-content/uploads/2026/09/Rosemary-Bookkeeping-Teri-Cotta-Logo-white-1030x331.pngYopp2025-08-29 13:11:372025-08-29 13:18:33Boost Your Financial Awareness: Digitalise Your Bookkeeping for Making Tax Digital
Alongside playing a game of (Not) Top Trumps (see full video), the two dive into discussions of the best ways to capitalise on networking events like FAB, Bobby’s plans for Rosemary, and the evolution of the bookkeeping industry.
In this blog post, we’ve transcribed the highlights of their conversation, but you can watch the full interview here.
(Note: Some quotes have been slightly tweaked for clarity and ease of reading.)
Aaron: Bobby, first of all, tell people who you are, why you’re here and what you want to talk about.
Bobby: “My name is Bobby Garland. I am the Brand Leader for Rosemary Bookkeeping. I’m relatively new to the accounting industry. I’m just a couple of years in, but I have lots of experience working with SMBs on business growth and collaboration plans and things like that.”
And relatively new in this new role as well?
“Yeah, my role at Rosemary Bookkeeping started in January, and it’s a franchise network. I’m the Brand Leader, so I help support the whole network and take it in the direction I think will benefit the whole accounting community.”
So, Bobby, what are you looking forward to on day two of FAB?
“I want to spend a bit more time on the HMRC stand. When we’re looking at things like Making Tax Digital coming into fruition, I feel like everybody’s got over this paranoia of ‘Will it, won’t it?’ We’re in the home run now, they’re sending letters out. I feel like we’re locked in. So, I think it’s their time to shine. Some of their speakers have been really, really good, really engaging. I feel like they’ve brought their A game this year.”
How do you ensure, from any event, that you act on it? What are your key tips?
“Step one is definitely to learn something. I always look at the speakers and pick out a non-negotiable. And then I’ll write something down: just one thing to do the next day. Whether that’s rolling something out to my network of bookkeepers, or going and having a demo booked in.”
“I’ve booked three demos yesterday, just from walking around. You’ve got new players in the game, like Mimo. I was talking to them, and was like, I’m just gonna book a demo. It’s great chatting to them here. But sitting down and having dedicated time is better. If you do it while you are here, you’ll commit to it. My meeting with them is next week, and I’ll attend that and get something from it. My diary next week is jammed, with just demos. I think that’s how you’re gonna get something out of these things: committing to something later date.”
You are in a unique position where you’ve got twenty different bookkeepers, and that’s growing, right? You’ve got X amount of differing pain points to solve. What are the key pain points you are looking to fix?
“Yeah, so one of the things that I think I’m passionate about with the Rosemary Bookkeeping Network is flexibility. Because with new or existing franchise partners, they’re all in different places. You’ve got some who are just one-man operations and have been going for a year. You’ve got others who have been going for 15 years and have employees and a couple of offices, so sometimes there isn’t a one-size-fits-all solution, and if we’re rolling something out across the network, I’ve got to make sure that it’s fit for purpose for everybody”.
“So, I really love something scalable, that can be relatively inexpensive to start with, but is happy to grow. And those sorts of solutions are ones that I keep an eye out for. Because they’ll benefit everybody, and that’s ultimately one of the priorities of my job: servicing and supporting everybody in the network equally.”
I completely understand that you want to be flexible and make sure it’s right for the purpose, but how do you keep on top of that? What’s your pro tip? Because a tech stack, when it’s just one for each category, is hard work. So, trying to keep it on top of all of that, what’s your secret there?
“I’ve sat in a lot of demos the last couple of weeks. Starting in the role in January, that’s something that I’ve prioritised because when I worked at QuickBooks and worked with accountants on software and even before that, working in marketing and business development roles, one of the things that I was always keen on was to be a functional expert.”
“I’m not a bookkeeper. I’ve got no qualifications around that, cards on the table, but I could use QuickBooks. And I felt that that was important when working with my accountants then. And this is no different, working with my Rosemary bookkeepers, I’m not going to be able to deal with the bookkeeping, but it’s important I understand how it works. We’re looking at AML software at the moment, getting under the skin of that, and I love it because I love learning about new stuff, new tech, new everything.”
It’s problem-solving.
“Yeah. I think you get far more out of it if you immerse yourself in it. Sometimes I can go a little down the rabbit hole, but that functional learning is key. I don’t want to just be somebody who’s talking about it. I want to be able to pick it up and show somebody. My aim is that all of my bookkeepers, for example, would be able to use it a million times better than me, but at the starting point, I can explain it and show them.”
“Even though I’m not a bookkeeper. I’m a functional expert to a degree. Don’t trust me to do your books though! [laughs].”
But credit to you, because we’ve done videos and product demos and all sorts together in the past, and one thing I admire about you is that you get your hands dirty, get involved in the product and kick the tires.
You were the first to say, ‘This doesn’t do this, have I missed something here?’ Because you were questioning, am I the problem, or is it the software? And I think that’s something that, in your role, is really important.
“I get a bit passionate because I see something, and it doesn’t quite do what I want it to, and I’m like, ‘Well, why doesn’t it do that? And should it?’ And then you go round in circles, and you’ve got to think about everybody in many different positions. But for me, immersing in it is the only way you’d uncover those issues.”
“And credit to software companies. It is a challenge because they’re not bookkeepers either. So, some of the best innovations come from people in the industry using the software. You can see some of the software created by accountants and bookkeepers, they stand out because they’re using it day-to-day.”
“And I think leveraging that information, whatever software company you are, is essential to success and leveraging the experience so people who will use it every day.”
We all love the big shinies, the big new feature releases. We were talking off air, weren’t we? Apron is releasing the new–
“The new card, yeah.”
We love that. And that’s an amazing thing to celebrate. But actually, some of the best work they’ve done lately is those little, tiny workflow changes, which are game-changing for the people using and relying on it daily.
“The number of times I’ve had a bookkeeper, or an accountant come up to me and they’re like, ‘Oh my God, do you know what my favourite feature is?’ And they say it, and I’m like, ‘Does it do that? Show me.’ And sometimes we miss that, especially those of us who aren’t bookkeepers or accountants, and we need to listen to that sort of feedback, so we know what the priorities are. Otherwise, how else are we going to learn?”
“But that happens all the time. I love it, though, because you learn something new. The best bit is that an accountant or bookkeeper tells me that, and then I go and find another accountant or bookkeeper, and I go, ‘I tell you what, have you seen this?’ And they’re like, ‘No. Oh my God, that’s amazing.’ I’m like,’ Yeah, I found that.’ [laughs]”
So, obviously, you’re passionate about this industry. What do you love most about it?
“I’ve worked in lots of industries. When I’ve done marketing, I worked with SMBs across all different industry verticals. Now that I only work within the accounting industry, the thing I notice is that it’s so collaborative. Everybody gets on, and I think that’s because it’s such a necessary service that there’s obviously competition, but accountants are far more likely to sit down and help each other than ignore each other. If one’s got a problem – and I saw it outside when we were queuing to get in, and one accountant was chatting to another about year end and how busy they were in January and then one’s telling the other like, ‘I’ve done this, you should think about that’ – and I think that’s brilliant.”
“Collaboration and partnership, in my career, are big priorities. I read it the other day, and you must have heard this: ‘If you want to go fast, go alone. If you want to go far, go together.’ And I love that. That is ingrained in me as a person. And I see that all the time in this industry, above other industries, and I’ve worked in a lot of others.”
And there was a chance that you could have left the industry, and you decided this is the industry you want to stay in. So, that must say something.
“Definitely. And I’ve been dedicated to this industry for, in my eyes, a relatively short period, two or three years now. But I’ve made so many connections and friends. Even just coming here today, the number of people I’ve seen who stopped me to say hello, I’ve really loved keeping those connections going.”
So, that’s what you love about the industry. What would you change about the industry?
“That’s… that’s a tough one. I think pace. I do think that accountants and bookkeepers, rightly so, are relatively risk-averse. And I think that’s fair to say, and that’s not a detriment to any of them, but they should be. I’d want my accountant to be risk-averse.”
“But I think sometimes when it comes to things like Making Tax Digital for income tax coming in and new software and efficiencies, we can err strongly on the side of caution. And I’m not saying throw the baby out with the bath water, but it would be good if we had more risk-takers, to give it a go and see it through. But it’s their business, so I get it. So many accountants are self-made, so I understand why they don’t.”
“In my time at QuickBooks and at Rosemary, working with my franchise partners, I want to be super supportive, so it doesn’t blow up in people’s faces. Nobody wants that. But try those little things, try something new. That’s the one bit of advice.”
Exactly, and it’s that disruptive mentality, isn’t it? Sometimes we feel like we shouldn’t disrupt. But that little bit of disruption won’t stop the whole industry, will it?
“Absolutely. And it doesn’t need to be changing everything.”
Little tiny steps.
“A hundred per cent. If you made a 1% change every day, that adds up. It is tiny, tiny steps. So, yes. That would be the thing. But I think that’s coming.”
“Even in the few years I’ve worked directly in the industry, you see a change. And I think it is a testament to guys like you who lead from the front. And you are seeing more people putting themselves out there, doing podcasts and talking and things like that.”
Sharing the knowledge, right?
“Yeah. Yeah, definitely. So, I think it is happening.”
If we got you a time machine, think about something you are using today. It could be an app, a piece of software, or a gadget. What piece of technology would you love to take back 12 months and say, ‘You should be using this now.’
“Chat GPT, I have doubled down on things like that in the last couple of months, and it has transformed my life. I think it’s such a useful assistant. It’s not replacing anything.”
It’s a brainstorming tool, isn’t it?
“I love, like I said earlier, collaboration and some of my best ideas come when chatting with someone, and they evolve in a conversation. But I work remotely, and the franchise partners I deal with are all over the UK. So, I’m not necessarily with someone every day. I don’t work in an office. So, Chat GPT is really helpful when I’m trying to brainstorm.”
I don’t know if you’ve seen some of the videos we’ve done on the training, but now it’s evolved to watching your screen and being contextualised on your screen, so you’re thinking about the training point of view, you have that app on the screen.
It’s telling you, ‘If I need to reconcile this or I need to do this, or I need to add this transaction,’ it can go, ‘Oh, go up here, click that. See this box here? Make sure you put it in there. No, no. I wouldn’t use that date. And it’s watching you do what you’re doing, giving that constant feedback. It is very, very, very scary, but very, very good.
“It’s terrifying. Don’t think about it too much.”
So, we’ve gone back 12 months, let’s go forward 12. How do you think AI is going to impact the accounting industry?
“I think the more and more it’s integrated, the more it’ll get used. Intuit Assist is a great example of that. You’ve got Jax with Xero, in the accounting world. Once they’re properly there, then I think that will accelerate everything.”
“I am slightly – not worried – excited and terrified of where all this will be in two years. So, it’s exciting times, and I think it’s in addition to your brain. It’s not instead of your brain.”
Well, that’s where we add value as bookkeepers and accountants, right?
“The other thing I think is massive about the accounting industry is that it isn’t about numbers. It’s about people.”
100%.
“It’s a people industry, and nothing’s going to change that. If you could spend more time with people, and AI is doing some of these monotonous things for you, it gives you time to have that coffee with your client that you couldn’t before, or go out to that networking event and meet new clients. Those are the things you want to do. I don’t know about you, but I love spending time with people; the more of that I can do, the better.”
Awesome. So, this is your opportunity. Plug, plug and plug away. And tell the people where they can find you and what you’re all about.
“Rosemary Bookkeeping is a franchise network. I’m the Brand Leader of it. What I’m looking to do with the brand is develop it so that we can partner with accountants. MTD for income tax is coming; accountants are going to need help. And I honestly believe bookkeepers are the answer. Ami Copeland talked about it at Engager Labs, collaboration is key. They’re not in competition with each other, so I’m looking for accountants who are looking for help that the Rosemary Bookkeeping network can help with, and we’re across the whole country.”
“I look after and know them all personally. I’m really excited about that, and hopefully working with some people I already know and maybe some new people as well. I’m really excited to be part of the network.”
It’s been great. Thank you for coming on.
“I really appreciate it. Thank you.”
Need help with your bookkeeping?
By contacting the professionals, you receive personal and expert support on all aspects of bookkeeping.
We love bookkeeping, but we know it’s not for everyone. So, leave the stress behind by leaving your books to the experts today.
Find your nearest Rosemary Bookkeeping business today to see how we can support you ahead of the new tax year.
https://rosemarybooks.co.uk/wp-content/uploads/2025/05/FMK-2024-Graphics-52.png800800Yopphttps://rosemarybooks.co.uk/wp-content/uploads/2026/09/Rosemary-Bookkeeping-Teri-Cotta-Logo-white-1030x331.pngYopp2025-05-14 15:08:172025-08-29 13:15:48Rosemary Bookkeeping Brand Leader talks the future of bookkeeping
MTD (Making Tax Digital) is a government initiative to digitalise the UK tax system.
Introduced in 2019, developments at the beginning of the 2022 tax year saw MTD extend to include VAT for businesses.
With VAT return deadlines looming, many businesses have difficulty understanding MTD and its implications.
At Rosemary Bookkeeping, our experts are well-versed in online systems and financial processes.
That’s why we’re here to share everything you need to know about MTD for the new tax year.
Refresher: What is MTD?
MTD has two core components:
Replacement of paper-based records
MTD requires businesses and organisations (including those with property-based incomes) to keep digital accounting records.
Using compatible software to submit tax returns and updates to HMRC
The government will remove the current online tax services when businesses register for MTD.
They will require businesses and organisations to use software which is compliant with their API (Application Program Interfaces) to submit relevant updates and returns to HMRC.
MTD Timeline
1st April 2019: MTD has been in place since this date for the majority of VAT-registered businesses above the tax threshold of £85’000+ turnover. These included partnerships, sole traders, limited companies, non-UK businesses registered for UK VAT, and charities and trusts.
1st October 2019: There was a six-month deferred start date to support more complex businesses.
1st April 2022: MTD became mandatory for all VAT-registered businesses and organisations.
Upcoming Implementations
Making Tax Digital was initially scheduled to become mandatory for income tax in April 2024. However, in December 2022, the timeline for compliance was revised.
Starting from 6 April 2026, those with an annual gross income exceeding £50,000 from self-employment and property letting will be required to comply.
From 6 April 2027, the rules will apply to individuals with an annual gross income of over £30,000 but less than £50,000 from self-employment and property letting.
Lastly, from 6 April 2028, the compliance will extend to those earning between £20,000 and £30,000 from self-employment and property letting.
Eligibility for MTD
Even if you aren’t legally obligated, you have the option to voluntarily follow the MTD rules if you choose to do so.
To identify individuals who need to comply with the MTD regulations starting in April 2026, HMRC will first review all self-assessment tax returns submitted for the 2024/25 tax year.
Consequently, if you file your tax return for that year by the deadline of 31 January 2026 and your income from self-employment and/or rental income surpasses £50,000, you can expect to receive a notification letter from HMRC in February 2026 informing you of your obligation to comply with MTD beginning 6 April 2026.
The coming changes and how they affect your business
MTD legislation already means you must have completed your ITSA through MTD-compatible software.
If you were not already doing so, you’re now required to keep digital tax records and submit this information to HMRC through an MTD-compatible software when conducting your self-assessment tax returns.
Exceptions
If your business has received an MTD exemption, it will still be in effect.
These can be caused by factors such as:
Age, a disability or where you live
You object to using computers on religious grounds
Any other reason why it’s not reasonable or practical
To check if you are eligible or apply for exemption from MTD, you can find guidance on how to do so via the HMRC website.
It can reduce or even eliminate paper-based or manual tax processes. This allows you greater accuracy in tax returns and reduces time spent on administration. It also gives you more time to maximise your business opportunities, productivity and profitability.
If you opt to use cloud-based software, you’ll see in real-time what is happening in your books and have better control over your finances, allowing you to stay up-to-date and make informed business decisions.
Using compliant digital software means submitting information to HMRC is far simpler and less stressful.
Some accounting software links directly to your bank account. Further reducing the ‘paperwork’ and time spent filing taxes.
Digital software provides you with real-time management information so you can see how your business is performing.
So, if you have not already done so, you need to start weighing your options for MTD-compliant software.
Why now?
The new financial year is the best time to reset how you manage your books.
This period is notably less disruptive, as things are changing already.
By introducing new systems to work smarter, you keep your business information secure and make things easier to manage going forward.
How Rosemary Bookkeeping can help
We understand that making the jump to digital can be scary and daunting.
But, it’s not as bad as it seems – especially with the help of an expert bookkeeping service like Rosemary Bookkeeping.
Expertise
The benefit of changing to MTD is that we’ve had around four years of experience working with it.
With a professional bookkeeper from Rosemary Bookkeeping to help you, making your tax digital is simple.
We have been operating MTD for VAT submissions since its inception in 2019 and know its processes inside and out.
Going digital may be a scary prospect. Using a bookkeeper, your tax may be digital, but your bookkeeping experience isn’t.
Software Support
We will assist if you need to acclimate to the software or do the work for you.
We also send generated returns directly from the software, so you have a well-kept and organised backlog of your records.
Our bookkeeping experts are trained to work digitally using MTD-compliant software like Xero, QuickBooks and Sage and are a real-life human presence that can reassure and guide you through the process, so you’re not going it alone.
As Rosemary Bookkeeping is well-versed in MTD and online services, we can advise which software would be best for you and often offer competitive prices for software subscriptions.
Additionally, we offer an online exchange of documents, so you’ll be able to upload photos or scans of documents so that we can process them on the bookkeeping software.
We also use Apps like AutoEntry or Hubdoc, which not only attach documents directly to the record on the software but also automate some bookkeeping processes – saving you valuable time and money.
Struggling with your bookkeeping?
The new tax year is a busy and stressful time, particularly hot on the heels of January Self-Assessment tax return deadlines.
We also know that keeping track of your finances isn’t easy, especially when also trying to figure out MTD legislation and new software.
If you had a stressful time sorting your ITSA, the new tax year that swiftly follows may be a real cause for concern.
By contacting the professionals, you receive personal and expert support on all aspects of bookkeeping.
We love bookkeeping, but we know it’s not for everyone. So, leave the stress behind by leaving your books to the experts today.
Find your nearest Rosemary Bookkeeping business today to see how we can support you ahead of the new tax year.
https://rosemarybooks.co.uk/wp-content/uploads/2023/03/MTD-for-new-tax-year.jpg800800Yopphttps://rosemarybooks.co.uk/wp-content/uploads/2026/09/Rosemary-Bookkeeping-Teri-Cotta-Logo-white-1030x331.pngYopp2025-03-23 16:15:352025-08-29 13:15:11MTD for the new tax year
Meet Dean Kokshun, the bookkeeping expert opening a new Rosemary Bookkeeping business in Croydon.
In need of a bookkeeper in Croydon?
Rosemary Bookkeeping has expanded its expert bookkeeping services into Croydon and the surrounding areas for the first time under the expert supervision of Dean Kokshun.
Dean’s expertise in bookkeeping is unparalleled.
He holds multiple prestigious qualifications and decades of experience supporting him in helping business owners with their bookkeeping needs.
Who is Dean Kokshun?
Dean’s journey in accountancy began in 1985.
This began with him joining the bookkeeping and external audit departments of KPMG Mauritius – then known as Peat Marwick.
He then qualified with the ACCA in the UK in 1993.
Dean was later admitted as a member in 1996 and achieved fellowship (FCCA) status in 2001.
As a qualified accountant, he has held senior positions within small UK accountancy practices, accumulating 30 years of experience.
Throughout his career, Dean has excelled in external auditing of small to medium-sized entities, financial reporting, and management reporting.
This has taken him across diverse industry sectors, including retail, services, manufacturing, hospitality, and investment.
Outside of his professional life, family caring duties and social commitments, Dean loves to relax and recharge by spending time out in nature.
Whether it is” a stroll in the local parks and gardens, exploring the countryside or enjoying the serenity of the coastline,” Dean has “a deep fascination with the beauty of the natural world and appreciates the simplicity and tranquillity that nature offers.”
“I also enjoy various individual and team sports, but if I must pick one which I practice the most, it has to be badminton,” he says.
Expertise
Dean’s extensive background and experience in accountancy have also provided him with a comprehensive understanding of the intricacies of financial reporting and external auditing.
Moreover, having worked with businesses in various sectors and clients in the UK and EU, he has developed a versatile skill set in navigating different accounting systems and processes.
His expertise in preparing financial statements following the UK GAAP and conducting external audits for small to medium-sized companies has equally equipped him with “a keen eye for detail and a commitment to compliance,” he says.
This experience has provided Dean insight and directly informs his approach to providing professional bookkeeping services for local businesses in Croydon and its surrounding areas.
Bookkeeping in Croydon
Drawing on his deep familiarity with the London Borough of Croydon, where he has lived since 1987, Dean is uniquely positioned to understand the local business landscape.
His decision to enter the bookkeeping industry stems from his passion for numbers and problem-solving.
“With 30 years of experience at the senior level in accountancy practices, I want to leverage my skills to provide essential financial services to businesses in my local area, Dean says.”
“The bookkeeping industry allows me to combine my expertise with the opportunity to support businesses in maintaining accurate financial records, ultimately contributing to their business success,” he adds.
“My commitment to delivering excellence in bookkeeping services aims to provide local businesses in Croydon and its surrounding areas with the support they need with their books and records.”
Furthermore, with the introduction of Making Tax Digital (MTD) for Income Tax by HM Revenue and Customs (HMRC) from 6 April 2026, bookkeepers will play a crucial role in helping businesses navigate the new system as they will be responsible for maintaining accurate and up-to-date financial records, ensuring that the data is entered correctly into the MTD-compliant software, and submitting quarterly updates to HMRC.
Dean’s clients in Croydon can expect a comprehensive range of bespoke bookkeeping services tailored to their unique needs.
Timely preparation of periodic and annual management reports
Coordinating with accountants and external auditors
Providing reports and information to prepare (and audit) year-end financial statements and tax returns
Provide support with their books and records and assist and ensure compliance with filing obligations with HM Revenue and Customs.
The beginning of a beautiful friendship
Dean says his adaptable nature and passion for learning have prepared him to embrace his new business.
“I believe that my strong work ethic, effective communication skills, and dedication to finding solutions to complex problems will contribute to the success of the venture, ensuring that clients receive high-quality and tailored bookkeeping services,” he says.
“I’m excited to bring this wealth of expertise to my franchise business, eager to provide top-notch bookkeeping services to the local businesses in Croydon and its surrounding areas, helping business owners with their books, saving them time and money and allowing them to focus on the things they do best – like running their businesses.”
As the area undergoes urban regeneration and economic growth, Dean promises to be a key player in supporting businesses to thrive amidst these positive changes.
In line with the Croydon Council’s four-year business plan, he envisions expanding his portfolio of clients and contributing to the economic opportunities flourishing in the area.
“My commitment is to stay attuned to the evolving needs of the local business community, providing exceptional bookkeeping services and contributing to the economic vibrancy of Croydon and its surrounding areas.”
Yasmin Chaudhari, Commercial Marketing Manager for ServiceMaster Brands UK, says,
“We’re so excited to have Dean join the Rosemary Bookkeeping network as we expand our services to the local businesses of Croydon and surrounding areas.”
“Dean joins us with a wealth of experience in finance, and we wish Dean all the best with his new venture with Rosemary Bookkeeping.”
“For businesses based within Croydon looking for smarter ways to manage their books, maximise their investments and get the support they need to scale up their businesses, it’s your lucky day!”
Need a bookkeeper?
If you’re in Croydon and the surrounding area and need support on your bookkeeping, contact Dean on 0208 191 2958.
https://rosemarybooks.co.uk/wp-content/uploads/2024/02/Say-hello-to-the-new-Rosemary-Bookkeeping-Business-in-Croydon.jpg800600Yopphttps://rosemarybooks.co.uk/wp-content/uploads/2026/09/Rosemary-Bookkeeping-Teri-Cotta-Logo-white-1030x331.pngYopp2024-02-28 09:53:162024-05-17 16:25:24Say hello to the new Rosemary Bookkeeping Business in Croydon
https://rosemarybooks.co.uk/wp-content/uploads/2023/07/Rosemary-Bookkeeping-Important-Bookkeeping-Dates-August-2023.jpg450800Yopphttps://rosemarybooks.co.uk/wp-content/uploads/2026/09/Rosemary-Bookkeeping-Teri-Cotta-Logo-white-1030x331.pngYopp2023-07-31 16:38:192023-07-31 16:51:30Important bookkeeping dates you need to know this August
What is tax payment interest and how has it changed?
With March in full swing, two changes are in effect surrounding the interest of tax repayment.
Tax interest rates, enforced by HMRC, are set in legislation and linked to the Bank of England base rates.
There are two rates:
Late payment interest
Repayment interest
Why are late payments and repayments different?
These two rates are separate to remain in line with the policy of other tax authorities worldwide.
According to HMRC, it compares favourably with the commercial practice for interest charged on loans or overdrafts and interest paid on deposits.
What are the changes to tax payment interest?
In early February, the Bank of England’s Monetary Policy Committee met and voted to raise interest rates to 4%.
A move which they hope will tackle rising inflation pressures.
This is the tenth vote following which the committee has increased interest rates.
The changes, enacted on 13th February for quarterly instalment payments and 21st February for non-quarterly instalments payments, make rates their highest since November 2008.
This means the late payment interest rate applied to the taxes HMRC charges interest on increases to 6.50%. An increase of 0.5%.
Meanwhile, the repayment interest rates increased by 0.5% to 3%.
This repayment rate is set at the Bank Rate minus 1%, with a 0.5% lower limit.
What is the lower limit?
According to HMRC, the lower limit for repayment interest ensures taxpayers still get 0.5%, even when the base rate fell to 0.1%.
Repayment interest will be paid at 0.5% until the Bank of England raises the base rate above 1.5%. It will then increase with the base rate.
Late payment has been set at base rate plus 2.5%
Need help managing the numbers?
With rates changing all the time, it can be hard to keep track.
At Rosemary Bookkeeping, we are on top of all current legislation and are experts in ensuring you know which way is up regarding your business financials.
By contacting your local expert, you benefit from regular advice on the latest tax changes.
As well as bespoke and professional management of your bookkeeping needs.
Know what tax rates are and how to avoid them, trust your local expert.
For most, this is deducted automatically from wages, pensions and savings. But people and businesses with other income must report said income in a tax return. This includes COVID-19 grants and support payments.
How do I know if I need to file a tax return?
By now, no matter the size of your business, you should have registered for your tax return self-assessment, if during the last tax year (6th April 2021 to 5th April 2022) you were self-employed as a sole trader that earned more than £1,000 (before subtracting tax-relief deductions) or if you were a partner in a business partnership.
If you’re unsure of whether this applies to you, HMRC provides a self-assessment eligibility calculator, so that you can see if you need to file a tax return for 2021-2022.
Why do I have to pay?
Tax returns are not voluntary, and have to be completed no matter what.
As a new business and did not send an online return last year, allow extra time (up to 20 working days) as you’ll need to register first.
You’ll need to register through the HMRC website, but there are different ways to register if you’re:
It makes much more sense to stay on top of these things as they go, so even if you don’t need to submit or pay for the last tax year, it makes sense to get registered now so you are prepared for next year.
Furthermore, you should keep records as current as you can. For self-employed business owners especially, if your books are up to date, you will have a better understanding of the financial standing of your business.
This means you will be able to put money away for the self-assessment at the end of the year.
‘Payments on Account’:
There is also usually a following secondary payment on 31st July to make advanced payments. These are known more commonly as ‘Payments on Account’, which are advance payments towards your tax bill that are made twice a year. Usually on 31st January and 31st July.
What are the deadlines I need to know?
The deadline to register for the last tax year passed on 5th October 2022, and paper tax returns should have been submitted by 31st October 2022.
However, if you haven’t done so already, you can still submit your tax return online and pay the tax you owe to HMRC, as the deadline for both of these requirements is midnight on the 31st of January 2023.
Instances in which the deadline is different:
HMRC may have written to you to give different deadlines. In this case, your assigned deadline applies.
If you are eligible, you may have submitted your return in time for 30th December 2022.
In such cases, HMRC will automatically collect tax from your wages and pension and must receive a paper tax return by 31st January 2023 if you are a trustee of a registered pension scheme or a non-resident company.
Please note that in this case, you cannot send a return online.
If your partnership’s accounting date is between 1st February and 5th April and one of your partners is a limited company, the deadline for returns is different.
Online: 12 months from the accounting date.
Paper: 9 months from the accounting date.
Late payment penalties
Perhaps the most obvious reason to stay on top of this process, is that there are fines for lack of payment.
If your tax return is up to three months late, you will have to pay a late filing penalty of £100. If it is later, or you pay your tax bill late, you will have to pay more and will be charged further interest on late payments.
You can appeal these penalties if you have a reasonable excuse such as:
The death of a partner or close relative – provided this was shortly before the tax return or payment deadline.
Fire, flood or theft that prevented you from making the deadline.
Serious or life-threatening illness.
Postal delays that you could not have predicted.
Computer software failure just before the preparation of your online return.
It’s better to make your payments whilst you have time, rather than suddenly come to find you have to shell out even more for overdue tax returns in the new year.
How Rosemary Bookkeeping can help
There’s a lot to account for when figuring out your tax return payments, and not much time left to sort it before the new year. Your friendly, local Rosemary Bookkeeper can help.
Outsourcing your books to Rosemary means:
You receive expert help and support properly and promptly pay your tax return for January 2023
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
No additional staff. You only pay for the work done
You don’t have to do a job you loath
Want help with your January self-assessment tax return?
Leaving your assessment to Rosemary leaves you with a clear mind and the space to spend your holidays free of worry, and get on with doing the business you love.
https://rosemarybooks.co.uk/wp-content/uploads/2021/11/self-assessment-tax.jpg800800Yopphttps://rosemarybooks.co.uk/wp-content/uploads/2026/09/Rosemary-Bookkeeping-Teri-Cotta-Logo-white-1030x331.pngYopp2022-12-02 17:07:522022-12-02 17:07:52Sort your self-assessment tax now for Jan 2023
Bookkeeping is tricky. Especially for small businesses, when you are juggling a million other things. So, it’s understandable that you want to ease the burden of this task any way you can. Nowadays we can turn to technology to solve most of our problems, and bookkeeping is no exception. You may have even seen adverts praising digital bookkeeping aids. Popular software like Xero and Quickbooks promise to make bookkeeping easy, help you track and manage expenses and stay on top of taxes. But how true is this?
What bookkeeping software does
Quickbooks promises three major things:
The ability to stay on top of taxes
The ability to track and manage expenses
Keeping data that allows for ‘no-nonsense’ payroll
This technology is all designed around one central premise: streamlining your bookkeeping experience. Everything bookkeeping software do is about using technology to save you time.
The bottom line is, using online software depends on you. Your ability to use this software depends on how much you know about bookkeeping and how up to date you are with recent legislative changes etc. For example, Quickbooks and Xero both rely on the use of VAT codes. But they do not provide support on what these are, and how to use them. For all their data and efficiency, they do not help much if you don’t know a lot about bookkeeping. As a result, relying on this software means taking a big risk depending on how much you know. If you are not confident with your books, you would still be better off using a bookkeeper.
What a bookkeeper does better
Having a personal bookkeeper involves all the benefits of bookkeeping software and more. They help you keep on top of your VAT returns, payroll and tax obligations. A bookkeeper also helps you track and manage your expenses, produces debtor and creditor reports to help with your cash flow and daily management of your business. They provide you with industry-specific knowledge and help you make more educated business decisions. This means you receive support all year round with any bookkeeping queries you might have. With a bookkeeper, you are not reliant on technology. QuickBooks and Xero are fantastic tools that can automate a big part of the bookkeeping process, but when it comes to technology, errors made by automated systems cannot be avoided and need somebody with experience and knowledge to check if the entries and codes are correct. Using a bookkeeper allows you not to be reliant on the software and automatic data entry. A bookkeeper also assures that your business is compliant, you meet all the deadlines, and your information is archived properly. Thanks to this you can avoid costly mistakes, save time and money. knowing that your business finances are in good hands.
https://rosemarybooks.co.uk/wp-content/uploads/2020/11/going-digital-is-vital-for-survival-blog-RB.jpg10801080Yopphttps://rosemarybooks.co.uk/wp-content/uploads/2026/09/Rosemary-Bookkeeping-Teri-Cotta-Logo-white-1030x331.pngYopp2022-03-16 10:32:142022-10-25 14:17:18Bookkeeping is more than software
With 2022 now underway, here is your reminder of some important dates for the rest of this financial year.
January 2022:
January has various important dates to remember.
There are two different monthly deadlines for sending off your payments for CIS, NICs and PAYE to HMRC. The postal deadline is 19th January, and the deadline for electronic payments is 22nd January. These payment dates for CIS, NICs, and PAYE then repeat monthly for the remainder of this financial year.
31st January is an important date to remember for various reasons. It is the deadline for filing your Self-Assessment tax return form for the tax year that ended in April 2021. However, due to the difficulties may have faced as a result of COVID-19, HMRC has waived late fee filing penalties for Self-Assessment Tax Returns.
If you have been unable to file your return by the 31st January deadline you will not receive a fine, permitting that you file online by 28th February. Anyone who cannot pay their Self-Assessment tax by the 31st January deadline will not receive a late payment penalty if they pay tax in full, or set up a Time to Pay arrangement by 1st April. However, interest will be payable from 1st February as usual, so it is still better to pay on time where possible.
January 31st is also the deadline by which you need to have filed your 2020/21 Capital Gains Tax, and if your company has a January 2021 year-end, you will also need to have filed your Corporation Tax by this date. Furthermore, the 31st is the date by which you need to have finalised the balancing payment of tax for 2019-2020, and the first payment of Account for Income Tax for 2021-2022.
February 2022:
The first date to remember in this month is 1st February, as it is the due date for paying Corporation Tax for the period that ended 30th April 2021.
If your business uses vehicles, the deadline for submitting Car P46 for the financial quarter ending 5th January 2022 is 2nd February. Following this, the VAT Tax Return and payments deadline for the accounting quarter period ending 31st December 2021 is 7th February. As with January, the monthly postal and electronic deadlines for the payment of CIS, NICs, and PAYE to HMRC are the 19th and 22nd respectively.
Finally, the due date to file for Corporation Tax for companies with a 28th February 2021 year-end is 28th February. Remember this is also now the final date you can now file your Jan Self-Assessment tax return online without receiving a fine.
March 2022:
1st March is both the new AFR (Advisory Fuel Rates) day for company car users and the due date for the payment of Corporation Tax for the period that ended 31st May 2021.
The 7th of March is the deadline for VAT Returns and payments of the accounting quarter that ended on 31st January 2022. For large companies with the year-end of 31st March 2022 and 31st December 2022, the due date for Corporation Tax quarterly instalments is 14th March.
Following this are the monthly postal and electronic deadlines for the payment of CIS, NICs, and PAYE on the 19th and 22nd of March. The filing date for companies with 31st March 2021 as a year-end round off the month on 31st March.
April 2022:
April is the end of the current 2021/2022 financial year. It begins with the due date for payment of Corporation Tax (for the period that ended 30th June 2021) on the 1st of April.
Then, the current tax year ends on the 5th of April, and the 2022/2023 tax year begins the following day on the 6th of April. Also on the 6th, IR35 comes into force in the private sector.
19th April is a busy day this year. Firstly, automatic interest is charged where PAYE Tax, Class 1 NI, CIS and/or Student Loans are not paid by this date, so make sure you have these paid up to date well in advance. Furthermore, PAYE quarterly payments are also due for small employers for periods 6th January 2021 – 5th April 2021.
19th April is also the deadline for employers’ final PAYE return to be submitted online for 2020/2021.
Finally, on 30th April, corporation Tax Returns need to be filed by companies with 30th April 2021 as a year-end.
Need help with your bookkeeping?
That’s all for the current tax year in 2022.
If all of this seems like a lot of work to remember, you can leave your bookkeeping to the professionals by letting us handle your books for you.
Entrusting your bookkeeping to Rosemary means:
· We keep track of your deadlines for you
· We know when your Tax return needs to be filed by
· We can keep track of your CIS payments
To find out more about our services and find out how Rosemary Bookkeeping can help you, call 0345 862 0072, or find your nearest Rosemary Bookkeeper today.
https://rosemarybooks.co.uk/wp-content/uploads/2022/01/important-dates-RB.jpg800800Yopphttps://rosemarybooks.co.uk/wp-content/uploads/2026/09/Rosemary-Bookkeeping-Teri-Cotta-Logo-white-1030x331.pngYopp2022-01-24 11:41:332023-07-31 16:26:52Important Dates for the New Year: Jan – April 2022
Inflation rates are projected to reach highs of 4% before the end of this year. This could have a big impact if you own and run a small business. Here’s what you need to know:
British inflation has hit decade highs, caused by a combination of factors including COVID-19, Brexit, rising energy and fuel prices, higher costs of raw materials and goods in factories, and higher bills in restaurants and hotels. In October, the UK Office for National Statistics reported that inflation had hit 4.2%, a 1.1% increase from September – a significantly bigger increase than had been predicted by experts.
So what does this mean for small business owners?
Well, this could have a number of knock-on effects that small business owners should be aware of, including:
A rising in costs of labour to compensate for increasing inflation
Rising costs of products and services
Labour shortages and supply chain issues
This will only be exacerbated by The Bank of England’s inconsistency on the topic of interest rate rises. As this is the mechanism used to control inflation, this will make more money more expensive to borrow – which would further reduce demand. This, in tandem with a fixed supply, means that price increases slow down, and businesses are faced with decision of whether or not to lower prices in order to maintain sales, or raise them to maintain profit (and risk losing customers).
So what can you do?
Unfortunately, the current situation leaves businesses with a dilemma and a bit of a no-win scenario. This will only change when either demand reduces or supply chains resume normal service. Meaning that, at present, the solution is in finding a balance between increasing costs and maintaining profits.
If you find the prospect of managing your finances in this difficult time daunting, why not contact Rosemary Bookkeeping? We can take care of your books for you and help you manage your finances. Hiring a professional bookkeeping service like Rosemary can greatly benefit you as we are able to help with tracking the cost and profit in your business.
Outsourcing your books to Rosemary also 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
To outsource your books today, and receive financial advice from our experts, give us a call on 0345 862 0072, or find your nearest Rosemary Bookkeeping business here.
If you own a small business and are approaching the holidays worrying how you’re going to manage your books, why not make these tips part of your New Year’s resolution?
The prospect of maintaining your books can be a daunting one for many small business owners. Juggling a steadily growing pile of receipts and invoices can certainly start to feel like quite the balancing act. But not to worry, we are here to help alleviate any anxiety about managing your books. Simply follow these tips to stay on top of your finances:
Keep personal and business finances separate
Have separate bank accounts when you are running your own business, by separating out the two, you will be able to avoid any messy mix-ups in your finances.
Don’t get rid of receipts and invoices
In a small business, nothing should go to waste. Make sure that you and your staff receipts and/or invoices for any and all expenditure, and attach them to expenses claims. To be safe, keep all records for at least six years.
Maintain filing system
These records should be simple and easily organised. Sales invoices should be raised and filed in order, and purchases should follow a system that is logical to you.
Keep your time similarly organised
Working closely with a plan or schedule can help you to best stay on top of your finances. Allotting diarised time to reconcile your bank accounts or update records will mean that it becomes part of your routine, and this can help it to feel like less of a chore. It also means that it doesn’t become forgotten amongst all of the other things you have to do.
Be sure to raise sales invoices quickly and file your paperwork on time. You may be able to remember what happened last week, but not last month or the month before.
Stay on track of petty cash
In the same vain, you should be keeping receipts for your petty cash, and reconciling amounts regularly. Keeping a keen eye on your cash will help to reduce the risk of loss or theft.
Bank payments quickly
Once you have these cash or cheque payments it is important to stay on top of them and get them in the bank fast – even if they might feel old school. By doing this, you will reduce the risk of losing them or spending them quickly. Plus, the quicker they are in the bank, the better your cash flow.
Chasing debtors
Slow payers can cause real harm to your business, and damage your cash flow. Set a clear policy for chasing up debtors. You aren’t loaning money, so your clients need to pay.
Plan ahead by putting money aside
Putting money aside, perhaps in another account, will mean there are extra funds available in the event that you need them. There will always be future expenditures, such as VAT, so be sure to be prepared by planning ahead.
Learn the basics
It’s true that you should always have a professional handle your finances for you, but knowing the basics can help you a lot from day to day. If you would like to learn more about finances and bookkeeping, you can find a lot of useful information and tips on our news page – under the bookkeeping tab.
Trust the professionals
The best way to manage your finances is to enlist the help of a professional. Managing your books can be difficult, especially when trying to manage it alongside everything else you need to do as a small business. Outsourcing your bookkeeping to Rosemary means that your books are maintained regularly, but you don’t have to spend your valuable time doing them yourself. You also won’t need to hire any additional staff – you only pay for the work done – and a bookkeeper is cheaper than an accountant!
If you think it’s time to outsource your bookkeeping, get in touch with Rosemary Bookkeeping, or find your nearest branch here.
https://rosemarybooks.co.uk/wp-content/uploads/2021/12/useful-bookkeeping-tips-for-small-business-owners.jpg800800Yopphttps://rosemarybooks.co.uk/wp-content/uploads/2026/09/Rosemary-Bookkeeping-Teri-Cotta-Logo-white-1030x331.pngYopp2021-12-01 10:57:202022-10-25 14:18:57Ten useful bookkeeping tips for small business owners
The Holiday season approaches – a very busy time for most businesses. Whilst it may be easy to get carried away with festivities or Christmas rushes, don’t forget that you can carry out your self-assessment months in advance.
By now, whether you are self-employed, a partnership, or neither, you should have registered for your tax return self-assessment. The deadline for the assessment may be the end of January next year, but we are just about to head into a very busy period for most businesses, and that time will be gone in a flash. So, it’s well worth getting a head-start on the process now.
‘But I simply don’t have time!’ you say. This winter period is a busy one for businesses the world over, so the temptation to put off that January tax return is a strong and understandable one. Unfortunately, it is not an option. Tax returns are not voluntary, and have to be completed no matter what. Luckily there is still plenty of time before that rush period really starts, so you still have the option to get it done now, early doors. Plus, it makes much more sense to stay on top of these things as they go, and keep your records as current as you can. For self-employed business owners especially, if your books are up to date, you will have a better understanding of the financial standing of your business. This means you will be able to put money away for the self-assessment at the end of the year.
There are instances in which the deadline is different:
If you are eligible, you can submit your online return by 30th December 2021, provided you want HMRC to automatically collect tax from your wages and pension.
In this case, HMRC must receive a paper tax return by 31st January 2022 if you are a trustee of a registered pension scheme or a non-resident company. Please note that in this case, you cannot send a return online.
HMRC may also write or email to give you a different deadline. More details can be found on their website.
Partnership returns if you have a company as a partner.
If your partnership’s accounting date is between 1st February and 5th April and one of your partner’s is a limited company, the deadline for returns is different.
Online: 12 months from the accounting date.
Paper: 9 months from the accounting date.
Late payment penalties:
Perhaps the most obvious reason to stay on top of this process, is that there are fines for lack of payment. If your tax return is up to three months late, you will have to pay a late filing penalty of £100. If it is later, or you pay your tax bill late, you will have to pay more and will be charged further interest on late payments. This amount can be estimated on the HMRC website.
You can appeal these penalties if you have a reasonable excuse such as:
The death of a partner or close relative – provided this was shortly before the tax return or payment deadline.
Fire, flood or theft that has prevented you from making the deadline.
Serious or life-threatening illness.
Postal delays that you could not have predicted.
Computer software failure just before the preparation of your online return.
But for the sake of tardiness, these fines are not worth the risk. It would be better to make sure of your payments whilst you have time, rather than suddenly come to find you have to shell out even more for overdue tax returns in the new year.
And if absolutely none of this has convinced you that it’s best to pay early, and the idea of sorting out your own tax returns this Christmas makes you say ‘Bah Humbug’, then don’t worry. We’ll do it for you!
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)
A bookkeeper is cheaper than an accountant (who doesn’t like to be cost-effective?)
Outsourcing means no additional staff (you only pay for the work done)
You don’t have to do a job you loath
Leaving your assessment to Rosemary leaves you with a clear mind and the space to spend your holidays free of worry, and getting on with doing business you love.
If you think it’s time to outsource your bookkeeping, get in touch with Rosemary Bookkeeping, it’s what we do best.
https://rosemarybooks.co.uk/wp-content/uploads/2021/11/self-assessment-tax.jpg800800Yopphttps://rosemarybooks.co.uk/wp-content/uploads/2026/09/Rosemary-Bookkeeping-Teri-Cotta-Logo-white-1030x331.pngYopp2021-11-15 10:13:512022-10-25 14:23:08January Self-Assessment Tax Return: Why leave it till the Last Minute?
From 1 October 2021, a new reduced interim VAT rate of 12.5% will be introduced for hospitality, holiday accommodation/attractions and it will stay in place until 31 March 2022. It replaces the current temporary reduced rate of 5% for these sectors.
This reduction in VAT is intended to boost trade immediately for hotels, B&B’s, cafes, pubs, restaurants, cinemas, zoos and theme parks to name but a few.
The reduced rate of VAT will apply to:
Hot/cold food and non-alcoholic beverages for consumption on the business premises, for example, cafes, restaurants and pubs. Cold takeaway food continues to be subject to VAT at 20% or 0% under the existing rules.
Hot takeaway food and hot takeaway non-alcoholic drinks.
Sleeping accommodation such as hotels and similar establishments, holiday accommodation, caravan and tent pitch fees and associated families
Admissions to theatres, shows, fairs, concerts, museums, zoos, cinemas, exhibitions and similar cultural events and facilities. If a business charges admission fees that are currently exempt then that will take precedence and the admission will not qualify for the reduced rate. The reduced rate does not apply to admission to sporting events.
From 1 October 2021, all eligible businesses should apply the interim VAT rate of 12.5% on takings of supplies made of the goods and services listed above and on issued invoices until 31 March 2022.
Care will need to be taken where goods and services were supplied prior to 1 October 2021 but invoiced after 1 October 2021, and vice versa.
For example, in some circumstances, if a business has received a payment or deposit before 15 July 2020 but supplies the goods or services after 15 July 2020, then the business can choose to charge and account for VAT at 5% by issuing a credit note within 45 days of the rate change.
Flat Rate Scheme Changes
HMRC have updated the flat rate percentages to take account of the new reduced rate for VAT.
As of 15 July 2020 until 30 September 2021 the following sector rates apply:
Catering 4.5% (reduced from 12.5%)
Hotels 0% (reduced from 10.5%)
Pubs 1% (reduced from 6.5%)
From 1 October 2021 until 31 March 2022 the following sector rates apply:
Catering 8.5% (interim VAT rate)
Hotels 5.5% (interim VAT rate)
Pubs 4% (interim VAT rate)
Businesses that operate outside of the hospitality, holiday accommodation and attraction sectors may also be impacted by the VAT rate change if they make purchases from these sectors.
You’ll be able to apply the new VAT code in QuickBooks, Xero and other software after 1st October 2021.
Further detailed guidance can be found on the gov.uk websites HERE and HERE.
https://rosemarybooks.co.uk/wp-content/uploads/2021/01/VAT.jpg800800Tim Marshallhttps://rosemarybooks.co.uk/wp-content/uploads/2026/09/Rosemary-Bookkeeping-Teri-Cotta-Logo-white-1030x331.pngTim Marshall2021-09-27 14:46:032021-09-27 14:46:03VAT changes for hospitality and tourism sector
Are you unsure of what you can reclaim VAT on? Here we’ve explained what you can and cannot reclaim any VAT on:
As a business, you can usually claim back any VAT you have paid on goods and services bought for business use, for which you have a valid VAT receipt. Remember, no receipt, no reclaim!
If the item you buy is also for personal use, you can only claim back a proportion of the VAT paid, only the actual business element of this item, mobile phone bills are a good example. You might use your mobile 60% for work and 40% for personal, in which case you can only claim back the VAT on the 60% of the purchase price and plan. You need to ensure that you have adequate records to support your VAT reclaim which shows how you calculated the business use percentage.
It’s usually a good idea to have separate phone bills for personal and business use, this way it’s easier when claiming back any VAT.
A Valid VAT Receipt
A valid VAT receipt includes the following:
Name, Address and VAT number of the supplier
Your name and address
The date
A description of the goods or services
The cost before VAT
The separate VAT amount
The total amount that contains the VAT.
Having said that, many VAT receipts are actually a shorter version, simply containing the total amount paid, the seller’s name and VAT number. To work out any VAT quickly this website is very helpful – http://www.vatcalculator.co.uk/ . This is the amount you can reclaim.
Can you claim the VAT back on items brought in the EU?
Do you buy goods from the EU?
You can’t claim for goods bought in EU countries, although you may be able to reclaim VAT paid via the electronic cross-border refund system. You can reclaim VAT on products and services bought during the refund period, plus VAT on goods imported to Britain during the same timescale.
You can’t claim for VAT that has been invoiced incorrectly, where VAT has been levied on sending goods to another member state or exported items outside the EU.
Things you cannot reclaim VAT for
You can’t reclaim VAT on insurance, salaries, PAYE, postage, bank interest or business entertainment. However, VAT on entertainment for overseas customers can on occasions be reclaimed when that entertainment is very basic.
You can’t claim for anything you’ve bought specifically for personal use, or the products and services your business uses from VAT-exempt supplies. Also items you buy under VAT second-hand margin schemes and business assets transferred to you as a going concern are also exempt from VAT reclaim.
Not registered for VAT?
When your business isn’t registered for VAT, you don’t have to charge VAT to your customers, however, you also can’t claim any VAT back. That’s why so many smaller businesses try to stay under the VAT radar, under the registration limit (the current threshold is £83,000 – see https://www.gov.uk/vat-registration/when-to-register for further details) . Charging VAT to a customer who isn’t registered for VAT means they’ll have to cover this cost as well.
What about VAT post-Brexit?
Domestic VAT rules remain the same following the end of the Brexit transition period, however, VAT rules relating to imports and exports have changed.
Prior to Brexit and during the transition period, the UK was part of a regime called the EU VAT Regime, which meant that a UK business didn’t have to register for VAT in each EU country. Now though, as of 1st January 2021 Great Britain now has to treat EU countries like they do countries outside of the EU.
It can get very confusing so we’d suggest taking a look at this article by Sage explaining this in a bit more detail.
https://rosemarybooks.co.uk/wp-content/uploads/2021/05/VAT-blog.jpg800800Tim Marshallhttps://rosemarybooks.co.uk/wp-content/uploads/2026/09/Rosemary-Bookkeeping-Teri-Cotta-Logo-white-1030x331.pngTim Marshall2021-05-07 13:11:372024-11-25 13:57:50What can you claim back VAT on?
The UK exited the EU VAT regime, Customs Union and Single Market from 1 January 2021. This means the loss of a range of compliance simplifications and the imposition of customs declarations, goods regulations, services and import VAT.
In this article HERE you can find an outline of the major changes affecting VAT treatment after the UK leaving the EU.
If you import goods into Great Britain from outside the UK or from outside the EU to Northern Ireland you may have to pay import VAT on goods. For supplies of services from outside the UK you must account for VAT under the reverse charge procedure.
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