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  • Cash Basis for Self Assessment: What Happens When You Switch?

    Cash Basis for Self Assessment: What Happens When You Switch?
    2026/11/08
    Cash basis for Self Assessment determines when self-employed income and allowable expenses are recorded for tax. If you invoice a customer before they pay, or switch from traditional accounting to cash basis, the timing can affect the profit reported on your tax return. For sole traders, freelancers and small business owners, understanding these rules helps prevent double-counting income, missing expenses and making avoidable tax mistakes. We explain how cash basis works, why HMRC made it the default for most eligible businesses, and what transitional adjustments mean when you change accounting methods. About This Episode Cash basis accounting sounds technical, but the underlying idea is straightforward: record money when it comes in and allowable business costs when they are paid. We look at how this differs from traditional accounting, why the distinction matters for Self Assessment and what happens when an established business changes accounting methods. We also explain the purpose of transitional adjustments, using practical examples involving unpaid invoices, supplier bills and business expenses. Why This Matters The accounting method you use affects when income and expenses appear in your tax calculations. For example, you might complete a job in March but not receive payment until May. Depending on your accounting method, that income could fall into different tax years. This matters because the timing of taxable profits can influence your tax bill, cash flow and financial planning. It also matters when switching methods. Without the correct adjustments, income could potentially be taxed twice, or an expense might be deducted twice or missed altogether. Key Points From This Episode Cash basis generally records business income when received and allowable expenses when paid.Traditional accounting records income when earned and expenses when incurred.Cash basis became the default for most eligible self-employed businesses from 6 April 2024.Switching accounting methods can require transitional adjustments.Unpaid invoices, supplier bills, stock and advance payments can affect the calculation.Good bookkeeping remains essential, whichever accounting method you use.The simplest accounting method is not necessarily the most suitable for every business. Cash Basis vs Traditional Accounting The main difference between cash basis and traditional accounting is when you recognise income and expenses. Cash Basis: When the Money Changes Hands Under cash basis accounting, income is generally recorded when payment is received, while allowable business expenses are recorded when payment is made. Imagine you complete work and send an invoice in March. Your customer does not pay until May. Under cash basis, the income is normally recognised in May because that is when you receive the money. Now imagine receiving a supplier's bill in March but paying it in June. The allowable expense would generally be recorded when you make that payment in June. For many self-employed people, this reflects how they naturally think about their finances: money coming in and money going out. Traditional Accounting: When Income Is Earned Traditional accounting, also called accruals accounting, looks at when the underlying business activity happens. Income is generally recorded when it is earned, even if the customer pays later. Expenses are generally recorded when they are incurred, even if payment happens in a different period. Neither method automatically makes a business more profitable. They measure the timing of business activity differently. For a wider explanation of how the two methods affect reported profit, see our episode Cash Profits Explained: Cash Basis, Traditional Accounting and Tax. Why HMRC Changed the Cash Basis Rules From the 2024/25 tax year, cash basis became the default method of calculating trading profits for most eligible sole traders and partnerships without corporate partners. The intention was to simplify tax reporting by making it easier for businesses to calculate taxable profits using money received and allowable payments made. For freelancers, sole traders and small business owners, that can make the process feel more natural. However, the change also raises an important practical question. What happens if your business previously used traditional accounting and now moves to cash basis? That is where transitional adjustments become relevant. Transitional Adjustments: What Happens When You Switch? A transitional adjustment is not a new tax or a penalty. It is a way of ensuring that income and allowable expenses are dealt with properly when a business moves between accounting methods. The principle is simple: income should not be taxed twice, and expenses should not be claimed twice or missed altogether. Example: An Invoice That Has Already Been Taxed Imagine you completed work for a customer and included the income in your taxable profits under traditional accounting. At the end of that accounting period, ...
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    7 分
  • Creative Business Mindset: Value Your Work, Profit and Boundaries

    Creative Business Mindset: Value Your Work, Profit and Boundaries
    2026/09/20
    Creative business mindset matters when your art, talent or creative practice starts moving beyond a passion project. You do not need to sacrifice your artistic soul, but you do need to value your work, understand profit, track your costs and set clear boundaries. In this episode, we look at why artists and creatives sometimes resist business thinking, why that resistance can lead to undercharging and overworking, and how a healthier business mindset can help you build a more sustainable creative career. About this episode Many creatives feel uncomfortable thinking like business owners. Business can sound like something for suits, spreadsheets and corporates, not artists, performers, writers, musicians or makers. However, creative work can still be a professional service. Treating it as a business does not mean losing your artistic identity. It means building the structure that allows your creative practice to survive, grow and support you properly. In this episode, we explore three mindset shifts that help creatives move forward: putting value on your work, understanding that profit is not a bad thing, and recognising the real costs behind your creativity. We also look at the importance of boundaries, especially when free work, discounts and exposure deals start appearing. Why this matters If you see your creative work as “just a hobby”, it becomes harder to charge properly. You may feel guilty asking for money. You may accept low prices, say yes too quickly, or overlook the time, materials and energy behind your work. That can create a cycle of undercharging and overworking. It can also make it harder to invest in better tools, marketing, training, studio space, support or future creative development. A stronger creative business mindset helps you protect both your income and your passion. “Profit is the thing that powers your creative practice.” Key points from this episode Your creative work has value Creative people often struggle to put a price on their talent. You may enjoy the work, care deeply about the impact, or feel awkward charging for something that comes naturally to you. However, payment is not a favour. It is an exchange. Your creative work brings value, joy, meaning, impact and experience to the person receiving it. Just as we expect to pay a skilled plumber, designer, adviser or specialist, creative skill should also be recognised and paid for. Profit is not a bad thing Many artists and creatives say they are not in it for the money. That may be true, but every sustainable creative practice still needs profit. Profit helps you recover your costs, reward yourself fairly, build reserves, invest in the future and reduce financial stress. Without profit, your creative work becomes harder to sustain. Our episode on What Is Profit? gives a useful next step if you want to understand the role profit plays in business survival and growth. You need to know your creative costs Charging £200 may sound fine until you consider the full cost of producing the work. Serena’s example shows why this matters. If an artist spends money on supplies and many hours creating a piece, the final price may look far weaker once materials, time and overheads are included. Creative costs can include materials, studio space, software, equipment, travel, marketing, promotion and the time spent speaking to clients or preparing the work. When these costs are ignored, pricing becomes guesswork. A simple starting point is to write down the costs involved in your creative process. It does not matter whether you use software, a spreadsheet or a notebook. What matters is that the costs stop slipping under the radar. Boundaries protect your creative practice As a creative, it can be tempting to say yes to every opportunity. Free gigs, exposure deals, discounts and underpriced commissions can all feel useful in the moment. However, saying yes too often can lead to burnout. It can also reinforce the idea that your work is low value. Before agreeing to a discount or unpaid opportunity, pause. Ask whether the offer matches your worth, whether it helps your business, and whether it respects the time and materials needed to deliver quality. Our episode on Unpaid Creative Work expands on this idea and helps you decide when free work is strategy and when it becomes a problem. A simple mindset shift for creatives The key shift is this: stop seeing your creative work as separate from business. You can care about impact and still charge properly. You can protect your artistic DNA and still understand costs. You can love the work and still make a profit. You can say no and still be generous, collaborative and professional. Thinking like a business owner is not about becoming less creative. It is about giving your creativity the structure it needs to continue. Questions to ask yourself Do I treat my creative work as a professional service?Do I feel guilty charging for my work?Do I know the real cost of producing what I create?...
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    7 分
  • Mandatory Payrolling of Benefits in Kind: What Employers Need to Know

    Mandatory Payrolling of Benefits in Kind: What Employers Need to Know
    2026/10/04
    Mandatory payrolling of benefits in kind will change how employers report taxable employee benefits, how payroll systems handle those benefits, and when tax and Class 1A National Insurance liabilities are paid. Instead of relying mainly on year-end P11D reporting, more benefits will be reported through payroll in real time. In this episode, we explain what payrolling benefits means, why HMRC is moving in this direction, how the phased timetable works, what it means for P11Ds and cash flow, and what employers should start reviewing now. About this episode Many employers provide benefits to employees. These can include private medical insurance, company cars, gym memberships and certain expense payments. Those benefits can create a tax liability. Traditionally, many benefits were reported after the end of the tax year using a P11D. HMRC would then adjust the employee’s tax code so the tax could be collected later. Mandatory payrolling of benefits in kind changes that process. Instead of waiting until the year-end, the taxable value of the benefit is processed through payroll during the year. That means tax is collected closer to the time the benefit is received. Why this matters This is one of the most significant payroll reporting changes employers have seen for many years. The long-term aim is to make reporting more real time, reduce year-end paperwork, cut down on later tax code adjustments and make tax deductions more predictable for employees. However, employers still need to prepare carefully. Payroll systems, reporting processes, internal controls, employee communication and cash flow forecasts may all need reviewing before the changes become mandatory. “Good planning today avoids unnecessary pressure tomorrow.” Key points from this episode What is payrolling of benefits? Payrolling benefits means including the taxable value of a benefit in payroll during the tax year. For example, if an employee receives private medical insurance worth £800 a year and is paid monthly, the taxable value may be spread across the year. Approximately £67 would be added to taxable pay each month for income tax purposes. The employee is taxed as the year progresses, rather than waiting for a later tax code adjustment after a P11D has been submitted. When will mandatory payrolling start? HMRC is introducing mandatory payrolling in stages. Current HMRC guidance says the phased introduction starts from 6 April 2027. The first phase applies to company cars, car fuel, vans, van fuel and medical benefits. Most other in-scope benefits are expected to become mandatory from April 2028. Taxable cheap loans and living accommodation continue to have special treatment. These areas can still be payrolled voluntarily, but they are not part of the same mandatory timetable. Because the rules are still developing, employers should check the latest HMRC guidance before taking action. Why is HMRC making this change? The move is part of a wider shift towards real-time reporting. HMRC wants tax to be reported and collected closer to the point when the income or benefit is received. This should reduce later tax code changes, make deductions more predictable and align benefits reporting more closely with modern payroll systems. For employees, this may mean fewer unexpected tax surprises. For employers, it should eventually mean fewer year-end forms, but only once systems and processes are ready. What happens to Class 1A National Insurance? Employers need to pay close attention to Class 1A National Insurance. At the moment, many employers calculate Class 1A National Insurance annually through the P11D and P11D(b) process. Payment is usually made after the tax year has ended. Under mandatory payrolling, the associated Class 1A National Insurance will move into payroll reporting. The total liability may not necessarily change, but the timing certainly does. That timing difference matters because it can affect cash flow. Why cash flow planning matters Some employers currently hold on to money until the annual Class 1A National Insurance payment becomes due. With real-time reporting, that delay is reduced. Liabilities arise earlier, so cash flow forecasts may need to be updated. For businesses with strong cash reserves, the impact may be modest. For seasonal businesses, charities, smaller organisations and creative enterprises with fluctuating income, earlier payments can be more noticeable. Our episode on Cash Flow Management Tips is a useful next step if you want to strengthen your cash flow planning before new payroll timing creates pressure. What happens to P11D forms? One of the biggest long-term outcomes is the gradual decline of traditional P11D reporting. Where benefits are payrolled, separate P11D reporting will generally no longer be required for those benefits. This should reduce paperwork and simplify year-end compliance. However, P11Ds and P11D(b)s may still be needed for exceptions, such as certain loans and accommodation ...
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    8 分
  • Financial Planning for Not-for-Profits: Mission, Money and Better Decisions

    Financial Planning for Not-for-Profits: Mission, Money and Better Decisions
    2026/10/11
    Financial planning for not-for-profits is not about turning a mission-led organisation into a private commercial business. It is about giving charities, community organisations, social enterprises and voluntary organisations the tools, information and confidence to make better decisions. Good budgeting, forecasting, monitoring and reporting help you use resources wisely, protect your mission and continue delivering the impact that matters most. About this episode In this episode, we look at why financial planning matters for not-for-profits and how organisations can benefit by combining the best from both the private and not-for-profit worlds. There can sometimes be a misunderstanding between the private sector and the not-for-profit sector. The private sector may be seen as purely driven by profit, while charities and voluntary organisations may be seen as focused only on community, public benefit and social impact. Those differences exist, but there is also common ground. Both sectors have goals. Both need leadership, management, good decisions and responsible use of resources. That is where financial planning becomes so important. Why this matters Some not-for-profit organisations worry that using business-style financial practices means moving away from their core values. That does not need to be the case. Budgets, forecasts, management accounts and financial reports are simply tools. What matters is how those tools are used. When used well, they help not-for-profits spot financial pressure earlier, understand where resources are being used, make stronger decisions and direct more energy towards the activities that create the greatest impact. “Good financial habits are simply tools. What matters is how you deploy and how you use those tools.” Key points from this episode Financial planning protects the mission Financial planning does not replace your mission. It helps protect it. A charity, community organisation, social enterprise or not-for-profit can use budgeting, forecasting, monitoring and financial reporting without changing its underlying purpose. In fact, those tools can make the mission stronger. If you can see financial problems developing early, you have more time to respond. If you understand where resources are creating the most impact, you can make better choices about where money, time and people should go. Your financial reports are like an instrument panel The episode uses the example of a pilot and an aircraft instrument panel. Before every flight, a pilot checks fuel levels, speed, altitude, weather conditions and navigation systems. The instrument panel does not fly the aircraft. The pilot does. However, without that information, flying becomes more difficult and more risky. The same idea applies to not-for-profit organisations. Budgets, cash flow forecasts, management accounts and financial reports are your instrument panel. They show where you are, help you understand what is happening and support better decisions about what to do next. They do not replace leadership, experience or judgement. They support them. Financial information is for everyone One common myth is that finance is only for finance people. That is not true. Trustees need financial information. Managers need it. Project leaders need it. In many cases, volunteers also benefit from understanding the basics. Financial knowledge is not about becoming an accountant. It is about understanding enough to make informed decisions. Useful questions include: Can we afford this project?Is this programme sustainable?What happens if funding reduces?How much financial reserve do we have?What risks do we need to plan for?What resources are our projects consuming? These questions help organisations avoid unpleasant surprises and make better choices. Use private-sector tools without copying blindly Not-for-profits can learn from private-sector financial practices, but that does not mean copying everything without thought. A simple overlay can create problems if it does not fit the organisation. Every charity has its own mission. Every social enterprise serves a particular purpose. Every community organisation has its own context. The goal is to take useful practices and adapt them to your needs. Good budgeting, forecasting, regular financial reviews and clear reporting are not just commercial values. They are good management practices. When adapted properly, they help not-for-profits become more resilient, more effective and better equipped to serve their communities. Passion and planning need each other The strongest not-for-profits often combine passion with planning. They combine purpose with practical financial management. They understand that passion and money are not enemies. Without a clear mission, money lacks purpose. Without good financial management, even the strongest mission can struggle to survive. That is why financial planning for not-for-profits matters. It provides clarity, improves decision-making, ...
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    8 分
  • Closing a Dormant Company Bank Account: Tax and Filing Risks

    Closing a Dormant Company Bank Account: Tax and Filing Risks
    2026/10/25
    Closing a dormant company bank account may seem straightforward once your limited company has stopped trading. However, withdrawing the remaining money or closing the account without planning can create tax, accounting and compliance problems. Bank interest may affect dormant status, outstanding bills still need paying, and the way you withdraw funds can determine the tax treatment. In this episode, we explain what HMRC and Companies House mean by dormant, why timing matters, how director's loans and dividends are treated, and what to check before closing your company's bank account. About this episode Many company directors assume that when trading stops, their company automatically becomes dormant. Unfortunately, it is not always that simple. HMRC and Companies House use different tests for dormancy. Meanwhile, the company may still have cash in its bank account, outstanding liabilities or continuing filing obligations. We look at the practical decisions involved in managing a dormant company bank account, including whether to leave money in the business, how to deal with remaining cash and why withdrawing everything immediately can create problems. The aim is to help you avoid unnecessary complications and make informed decisions before taking action. What does dormant actually mean? One of the biggest misunderstandings is assuming that a company becomes dormant as soon as it stops trading. For HMRC, dormancy for Corporation Tax generally means the company is no longer trading and has no other taxable income. Companies House uses a different test. A company is normally dormant for Companies House purposes when it has no significant accounting transactions during the financial year, apart from certain permitted exceptions. This distinction matters because a company may have stopped selling products or providing services but still be carrying out transactions that affect its reporting position. For a fuller explanation, see our Dormant Company Accounts guide. Bank interest can affect dormant status A bank account holding money after trading stops can create an unexpected problem: interest. Even a small amount of interest is income. For HMRC purposes, receiving bank interest can mean the company is no longer considered dormant for Corporation Tax. It is important to check whether your company bank account earns interest and whether any interest has already been credited. A non-interest-bearing account may help avoid future interest income. However, moving money between accounts can itself create accounting transactions relevant to Companies House dormancy. It is worth checking both sets of rules before making changes. You should also consider whether giving up interest is financially worthwhile. Dormant companies still have filing obligations Stopping trading does not mean your limited company disappears. While the company remains registered, you will normally still need to deal with Companies House requirements, including: Filing an annual confirmation statement.Submitting annual accounts, with dormant accounts available where the company qualifies.Maintaining appropriate company records.Keeping registered office and company information up to date. Failure to meet the relevant filing obligations can lead to penalties or other enforcement action. Dormancy changes the reporting requirements that apply. It does not automatically remove your administrative responsibilities. Why closing your company bank account too early can cause problems Imagine that your company has stopped trading and still has money in its bank account. You decide to transfer the entire balance out and close the account. A few weeks later, an accountancy bill arrives. Then there is a Companies House fee or an outstanding Corporation Tax payment. The company still owes money but no longer has funds available to settle its obligations. You may find yourself putting money back into the business simply to pay bills that could have been anticipated. Before withdrawing the remaining balance, review all known and reasonably expected liabilities. Settle what is due and plan for any future costs. However, do not confuse closing the bank account too early with leaving it open after the company is dissolved. When a company is being formally struck off, remaining assets and bank balances must be dealt with before dissolution. Money left in the account can pass to the Crown. How can you take money out of a dormant company? Once outstanding liabilities have been identified, you can consider how the remaining funds should be treated. There is no single approach that works for every company. The correct treatment depends on the company's financial position, accounting records and circumstances. Repaying a director's loan If you previously lent money to your company, the company may owe you money through your director's loan account. Repaying a genuine outstanding loan balance can be a straightforward way of returning money you previously provided to...
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    7 分
  • Tax Refund Deadlines: Can You Still Claim Money Back from HMRC?

    Tax Refund Deadlines: Can You Still Claim Money Back from HMRC?
    2026/10/18
    Tax refund deadlines can determine whether you are still able to claim money back from HMRC. If you have overpaid tax, missed an allowable expense or discovered an error in a previous return, you may be entitled to a refund. However, there is no single deadline covering every situation. PAYE, Self Assessment, VAT and Corporation Tax have different procedures and time limits. In this episode, we explain why those differences matter, when correcting a return may be possible, how overpayment relief can sometimes help, and why checking sooner could save you from losing money you might otherwise have reclaimed. About this episode When we talk about tax, most people immediately think about how much they owe HMRC. We do not always think about the money HMRC might owe us. Yet tax overpayments can affect employees, business owners, freelancers and organisations in the not-for-profit sector. The question is whether you can still claim that money back. Unfortunately, the answer is not always a straightforward yes or no. Different taxes have different rules. The correct procedure also depends on why the overpayment happened, when it happened and whether the normal deadline for making a correction or claim has passed. We look at why tax refund deadlines matter and why it is important not to assume that a deadline you have heard about applies to your circumstances. Why tax refund deadlines matter One of the biggest mistakes we see is leaving a possible tax refund until later. You may discover that you paid too much tax, forgot an expense or missed a relief you could have claimed. It is tempting to put the paperwork aside, especially when you are busy running your business or dealing with everyday life. However, waiting can restrict your options. A correction that might have been straightforward earlier could become more complicated once the normal deadline has passed. “The actual deadline depends on what's happening and what tax is actually involved.” Different taxes have different refund rules PAYE tax refunds If you are employed and pay Income Tax through PAYE, HMRC may identify an overpayment through its tax calculations. For example, an incorrect tax code may mean too much Income Tax has been deducted from your salary. In some circumstances, HMRC will calculate the overpayment and explain how you can receive a refund. However, you should not assume every mistake will be identified automatically. Check your tax code, review your payslips and make sure your employment and income details are correct. You can also use the HMRC tax refund guidance to find the appropriate route for your circumstances. Self Assessment tax refund deadlines If you complete a Self Assessment tax return, the process can be different. Imagine submitting your return and discovering six months later that you forgot to include an allowable business expense. You may be able to amend the original return and correct the mistake. However, the opportunity to amend a return does not last indefinitely. Under normal HMRC rules, you can amend a Self Assessment return within 12 months of the filing deadline, although special circumstances can affect the applicable date. Missing that amendment window does not automatically mean every possibility of recovering an overpayment has disappeared. Other procedures may apply, depending on the situation. Our episode on Self Assessment Tax Returns provides useful background on preparing returns, reporting income and claiming allowable expenses. VAT refund deadlines VAT has its own correction procedures and time limits. A business might discover that too much VAT was accounted for on a previous return or that eligible input VAT was not claimed. Correcting the position depends on the nature of the mistake, the relevant accounting period and the amount involved. HMRC normally applies time limits to VAT error corrections, and the procedure can differ according to the size and type of error. If you identify an incorrect VAT return, investigate it promptly instead of assuming you can make an adjustment whenever you choose. Corporation Tax refunds Companies can also discover errors or missed claims after submitting a Corporation Tax return. As with Self Assessment, there is a normal window for amending a return. Other claim routes may sometimes be available after that window, but they have conditions and deadlines of their own. The important point is to check which procedure applies to your company rather than assuming the rules are identical to those for personal tax returns or VAT. What happens if you miss a tax refund deadline? Missing the normal deadline does not always mean your money is lost. In some circumstances, overpayment relief may provide another route for claiming tax that was paid unnecessarily. However, overpayment relief is not an automatic entitlement. It has its own eligibility conditions, exclusions and time limits. That means it should be treated as a possible alternative rather than a reason to ...
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    5 分
  • Autumn Budget 2026 for Small Businesses: Tax, Wages and MTD

    Autumn Budget 2026 for Small Businesses: Tax, Wages and MTD
    2026/11/01
    The Autumn Budget 2026 brings important changes for small businesses, freelancers, sole traders, landlords, charities and not-for-profit organisations. From Making Tax Digital and higher minimum wages to the trading allowance, mileage rates and business tax reliefs, these announcements could affect how you report income, pay tax and manage cash flow. Understanding the changes now will help you prepare for new deadlines, review your costs and make better financial decisions. About This Episode What does the Autumn Budget 2026 actually mean for your business? We cut through the political headlines and focus on the practical measures that matter to smaller organisations. We look at changes to tax reporting, the cost of employing people, support for freelancers, business investment and the rules affecting landlords and business owners planning for the future. The aim is to help you understand what has been announced, when the changes are expected and which actions deserve your attention. Why This Matters Budget announcements are not simply about tax rates. They can change the amount of cash you need, the records you must maintain and the decisions you make about employing people or investing in your business. Some changes take effect in April 2027. Others will not arrive until 2029. That distinction matters because good financial planning starts before a new rule becomes compulsory. Whether you run a business, work for yourself or manage a community organisation, understanding these changes gives you time to prepare instead of reacting when a deadline arrives. Key Points From This Episode Making Tax Digital for Income Tax continues to expand in April 2027.Self Assessment payments on account are expected to become more frequent from April 2029.HMRC is investing in additional compliance officers.National Living Wage and National Minimum Wage rates increase from April 2027.The trading allowance rises from £1,000 to £3,000 from April 2027.Changes to property income, savings income and Capital Gains Tax could affect future planning.New mileage and capital allowance rules may influence business investment decisions.Qualifying retail, hospitality and leisure businesses in England will receive additional business rates support. What the Autumn Budget 2026 Means for Your Business Making Tax Digital Expands in April 2027 Making Tax Digital for Income Tax is moving into its next phase. From 6 April 2027, sole traders and landlords with qualifying income above £30,000, based on their 2025–26 income, will generally need to use the system unless an exemption applies. Qualifying income means gross income from self-employment and property before expenses, rather than taxable profit. Those affected will need compatible software to maintain digital records and submit quarterly updates to HMRC. The Budget also provides a penalty easement for people required to join in April 2027. They will not receive late-submission penalty points for their first four quarterly updates in 2027–28. However, the updates must still be submitted, and this does not remove other filing or payment obligations. If you currently rely on paper records or spreadsheets, now is the time to consider how your bookkeeping system will need to change. Compatible software, including suitable bridging software, can help with the transition. For a practical explanation of the reporting process, see our episode on Making Tax Digital Quarterly Updates: What to Send and When. More Frequent Self Assessment Tax Payments Another significant change concerns how some people pay Income Tax through Self Assessment. Currently, many taxpayers make payments on account in January and July, followed by any balancing payment. From April 2029, the government intends to replace this approach for affected taxpayers with smaller, more frequent payments during the year in which income is earned. The precise frequency has not yet been finalised. The intention is to spread tax payments across the year, potentially making large tax bills easier to manage. However, more frequent payments could also change how businesses manage their working capital and cash reserves. The practical lesson is to start thinking about tax as an ongoing cash flow commitment, rather than something to deal with only when a large payment becomes due. Our guide to How to Budget for Your Tax Bill When You're Self-Employed explains why setting money aside regularly makes tax bills easier to manage. HMRC Compliance Checks Are Increasing The Budget includes funding for an additional 670 HMRC compliance officers by 2029–30, on top of earlier commitments to recruit 5,500 additional officers. This signals a continued focus on tax compliance, accurate reporting and identifying errors in tax returns. For businesses, it reinforces the importance of maintaining reliable financial records. Good bookkeeping helps you explain transactions, support tax returns and respond to questions. It also gives you more reliable...
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    9 分
  • Creative Business Setbacks: Using the Grief Cycle to Adapt and Grow

    Creative Business Setbacks: Using the Grief Cycle to Adapt and Grow
    2026/08/30
    Creative business setbacks can feel deeply personal. Losing a client, seeing a project fail, struggling with cash flow, facing lower bookings or watching your industry change can all create an emotional reaction. In this episode, we use the Kubler-Ross grief cycle as a practical business lens for freelancers, artists and creative business owners. The aim is not to treat business setbacks as medical grief, but to help you recognise emotional stages such as denial, anger, bargaining, self-doubt and acceptance, so you can adapt and keep moving forward.About this episodeThe Kubler-Ross grief cycle was originally used to describe emotional stages after loss. In this episode, we apply that model to the creative business journey. For creatives, setbacks often carry extra emotional weight. Your work is personal. Your ideas, skills and reputation are tied closely to what you create. When a client leaves, a commission is cancelled, funding disappears, or your market changes, it can feel like a rejection of you as well as the work. We break the grief cycle down stage by stage, using creative examples, so you can recognise what is happening, avoid getting stuck, and respond with clearer action.Why this mattersRunning a creative business is not only about talent. It is also about resilience, adaptability and financial awareness. If you ignore a setback, it can delay action. If you stay angry, it can drain your energy. If you bargain your worth away, it can damage your income. If self-doubt takes over, it can stop you from seeing the next step. Recognising these stages helps you respond instead of react. It gives you a way to pause, understand what you are feeling, and choose a practical way forward.“The key takeaway, don’t get stuck. Keep moving forward, learn, adapt, and grow.”Key points from this episodeDenial can delay actionDenial is often the first reaction when something goes wrong. You may tell yourself that a cancelled commission is just a one-off, that work will pick up soon, or that nothing really needs to change. That reaction is understandable, but it can be risky. If your industry is shifting, your audience is changing, or your income stream is weakening, waiting too long can make the problem worse. The sooner we recognise reality, the sooner we can adapt. That might mean exploring digital platforms, testing new revenue streams, changing how we showcase work, or reviewing where clients are coming from.Anger can be useful if it is channelledCreative work is personal. When your business is disrupted, it can feel like a personal attack. A musician earning very little through streaming platforms may understandably feel frustrated. An artist dealing with a cancelled project may feel unfairly treated. That anger is real, but staying there too long can lead to burnout and emotional strain. Used well, anger can drive change. It can push you to rethink how you distribute work, raise awareness, improve your offer, or take more control of your creative business model.Bargaining can lead to poor decisionsBargaining is the “what if I try this?” stage. For a freelance photographer, that may mean dropping prices when bookings fall. For a performer, it may mean accepting unpaid work because it promises profile or exposure. Sometimes a change in offer or pricing may be sensible. However, if you bargain away your worth without a clear strategy, you can end up exhausted with very little financial gain. This connects closely with how we think about unpaid creative work. Our episode on Getting Paid on Time is a useful next step if you want to protect your income and payment habits.Self-doubt does not mean failureThe low point of the cycle can be difficult. A theatre company that loses funding may feel defeated. A designer with no clients may start questioning their career. A creative business owner may wonder whether they are good enough. That does not mean you have failed. It means something needs attention. Taking a step back, seeking mentorship, reviewing your numbers, exploring new income streams and asking for support can help you move from self-doubt into action. Our episode on How to cope with business failure gives wider support for handling business setbacks without letting them define you.Acceptance means adapting, not giving upAcceptance does not mean you agree with everything that has happened. It does not mean giving up either. It means recognising the reality of your situation and choosing your next move. An independent filmmaker may test short-form content. A painter may explore digital commissions. A creative business owner may rethink how people consume, buy or engage with their work. Creativity is about adaptability. Once we accept what has changed, we can look for new paths instead of staying stuck in old assumptions.How creatives can use the grief cycle in businessThe grief cycle gives you a way to name what may be happening emotionally during business change. Ask yourself:Am I ignoring ...
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    6 分