Category: Uncategorized

Companies can prepare themselves for forthcoming National Insurance changes and free up valuable time to grow their businesses by turning to external payroll experts.

From April, employers’ National Insurance rates will increase from 13.8 per cent to 15 per cent and the employer National Insurance Contributions (NICs) threshold will drop from £9,100 to £5,000 annually which means more employers will become eligible to pay NICs.

The news has prompted many firms to turn to the likes of award-winning Rushden accountancy firm Elsby & Co for help and guidance.

Elsby & Co Payroll Portfolio Manager Katie Newman said: “We’ve provided numerous clients with budget calculations because these changes will mean it will cost them more to process payroll in terms of what they’re going to have to pay in terms of liabilities. We’ve been able to give our clients a good idea of how much more payroll is going to cost them and help them to budget from a company perspective.”

Another change on the horizon, which Elsby’s payroll team is helping clients to prepare for, is the move to make the payrolling of benefits compulsory from April 2026 which will do away with P11Ds. All payrolled benefits will have to be included on the Full Payment Submission sent to HMRC on or before each pay day and companies may have to amend their existing payroll system or keep a separate record of each benefit for auditing purposes.

Katie said: “Helping companies to manage changes like these is one of the reasons why so many businesses – from director-only businesses to large companies with more than 100 employees – ask us to manage their payroll service. We’re experts in the field, we know what changes are coming up and we help our clients to proactively manage those changes.”

“Businesses also want us to manage their payroll because we provide them with a comprehensive, risk-free, secure service which keeps them compliant with all the latest regulations. Essentially, we take away the stress and often hugely time-consuming task of administering payroll for companies, freeing up valuable time for them that they can use to focus on expanding their business further.”

Elsby’s payroll service includes the completion of weekly or monthly statutory forms for HMRC under the Real Time Information regime, customised payslips, summaries and analyses of staff costs, CIS returns, notifications of tax liabilities and the administration of incentive schemes, bonuses, ex-gratia and termination payments, PAYE, national insurance, statutory sick pay and statutory maternity pay.

For further information about Elsby & Co’s payroll service contact help@elsbyandco.co.uk or 01933 312950 or visit Payroll Services Northampton | Elsby & Co

An award-winning company which helps apprentices to develop successful accountancy careers has launched its latest recruitment drive to attract young talent to the sector.

Elsby & Co, based in Rushden, works with leading educational providers, such as Northampton College, First Intuition and Bedford College, to provide AAT apprenticeships for 16 and 18-year-olds, as well as graduate ACCA apprenticeships. Its apprentices study courses ranging from the AAT Level 2 Certificate in Accounting up to Level 7 which is equivalent to the Master’s degree level.

To encourage more young people to consider starting an Accounting apprenticeship it has launched its latest work experience recruitment programme for Year 12 students during National Apprenticeship Week which runs from February 10 to 16.

Elsby & Co Head of Operations Ann Phillips said: “We’re committed to training the next generation of accountants. Currently, our youngest apprentice is 16 and this is their first job while our most mature apprentice is 35 and has come to us after changing careers.

“Developing apprentices means that over time, our depth of expertise is strengthened and our employees know that they are valued. Ultimately, that feeds our vision of being the only accountant you’ll ever need and the only employer our staff will ever want. To achieve this, we’re always looking to develop our pipeline of potential apprentices which is why we’re launching our latest work experience recruitment period during National Apprenticeship Week.”

Elsby & Co looks at applications from Year 12 students and takes them through a screening and assessment process before hosting successful applicants towards the end of the summer term. During their week-long placement, the students work on a series of accounting-related activities to help them get a feel for the industry.

Ann added: “We treat this week as a trial and gain feedback from our team along the way so everyone has an input into our recruitment. That enables us to make offers of apprenticeships to those who have fitted in well here and want to work with us. We believe in recruiting for potential and developing from within. By investing time in students early, we help shape their careers while building a strong, engaged team for the future.”

Northampton College’s Carmel Hannigan, who works with Elsby & Co on its apprenticeship programme, said: “It is great to work with an employer like Elsby & Co, which has a training plan in place for their apprentices which provides them with the opportunity to gain experience in the business, to showcase the skills they have learned, while supporting their end point assessment.”

Year 12 students who are interested in applying for Elsby & Co’s work experience placement programme this summer should contact help@elsbyandco.co.uk.

To find out more about Elsby & Co, visit https://www.elsbyandco.co.uk/

If you’re worried about the cost to your business of the hike in employers’ NI from April 2025, the higher employment allowance (EA) might alleviate some of the pain. But will you qualify and are there any traps to avoid?

Employment allowance

The changes to the NI contribution thresholds and rate from April 2025 isn’t all doom and gloom for employers. Although employers’ NI will be levied at 15% on earnings over £416 per month, the employment allowance (EA) will reduce your annual bill by £10,500 for all eligible employers irrespective of size. This compares with the current £5,000 and more limited eligibility.

Claiming the EA

Once the EA is claimed (this can be done any time but usually on the first payroll submission to HMRC of each tax year), it is automatically deducted from your NI bill for each pay period until it is used up.

For example, if your employers’ NI liability from April 2025 is £1,000 per month, you wouldn’t pay anything until February 2026.

EA eligibility

Besides ineligible one-person companies and public bodies, businesses (not charities) undertaking more than 50% of their work in the public sector are excluded from the EA, except those providing IT, security or cleaning services.

Also excluded is someone employing an individual for personal, domestic or household work, e.g. an au pair or nanny, but it is available to those employing care workers ( yr.19, iss.20, pg.1 , see The next step ). Tip.  If a company whose only employee is a director takes on another employee who is paid at a rate exceeding £5,000 per tax year, the full EA is available for the entire year.

Multiple claimants?

It isn’t possible to split the EA, so where you run multiple PAYE schemes, e.g. for different departments or branches, you’ll have to choose which one receives it, i.e. the one with the largest employers’ NI liability. For corporate groups, where a connected company or charity has already used the EA, the employer is prohibited from making its own claim. Trap. Once connected, employers remain so for the whole tax year. As a quid pro quo, new joiners won’t be connected to a group until the start of the next tax year.

Winners and losers

The losers in the EA stakes are one-person companies who will need to pay NI on a director’s salary that’s in excess of £5,000 but won’t benefit from the enhanced EA. The EA also won’t offer much comfort to larger employers with low paid part-time staff. The winners are small employers who, having previously exhausted the current EA of £5,000 before the tax year end, may find their employers’ NI completely eliminated by the enhanced threshold of £10,500 in 2025/26. Tip.  Small employers could delay bonuses until after 5 April 2025 and save employers’ NI where the 2024/25 bill would otherwise exceed the £5,000 EA threshold (see The next step ).

Crunch the numbers from April 2025 to calculate the overall effect of the NI changes. Smaller employers could take advantage of the doubled EA from 2025 by deferring bonuses. Identify any connected employers to help plan how the EA is utilised to best effect. Claim the EA in the first pay period of 2025/26 to increase cash flow.

Content taken from www.tips-and-advice.co.uk – Tips & Advice Tax – Year 25 – Issue 06 – 11.12.2024

Founder of and Partner at Elsby & Co, Carl Elsby looks at management buy-outs as a route to consider when planning for the future.

Bosses who want to get the best for themselves and their companies when they sell their business should investigate employee succession plans, according to accountancy experts.

Rushden-based Elsby & Co has helped several firms to achieve successful employee succession plans – also known as management buyouts – during the past year. However, the award-winning accountancy business says that too often busy bosses fail to plan ahead when it comes to the sale of their company.

Co-founder and partner Carl Elsby said: “Most people do not plan ahead for the sale of their business then one day their hand is forced, either by unexpected circumstances or they decide they have had enough. Faced with a quick, unplanned sale, the buyers – if there are any – have the upper hand and may offer a deal that leaves business owners wondering why they spent so many years working so hard. It is far better to plan ahead, get your business ready for sale and then go through a structured sale process, hopefully getting a few people interested, so there is some competition. We have handled a number of these deals, often successfully, but it is a stressful and expensive process and these deals can fall through right at the end.”

There is another way which, in the right circumstances, can work like a dream – an employee succession plan.

“You get full value for your business, sell it to people you like and trust and in a timescale you want, plus the business you have worked so hard to create lives on,” said Carl. “Your trusted staff get to own it without borrowing any money or dipping into their savings. They start running it, allowing you to retire, they continue at the same level of earnings – plus inflation – and the surplus profits are used to fund the business purchase.”

As part of the process, the team at Elsby & Co puts together a financial plan and proposal to present to the buying team. “We have instigated several of these projects and are currently working on more,” said Carl. “Each case has gone through smoothly with no unpleasant negotiations, the seller has achieved the price they desired and all parties have been delighted with the outcomes.

“It is painless, simple and rewarding with great outcomes for everyone. If you are keen to secure your business succession plans and have trusted employees to whom you would  like to pass it on, we would be delighted to chat with you about the options and to help you to plan ahead for a successful outcome.”

Click here for further information on our Corporate Finance services or contact 01933 312950.

To hear more from Carl, connect with him on LinkedIn

Making Tax Digital for Income Tax is fast approaching! Here’s what you should know if you’re self-employed or a landlord…

What is MTD?

MTD is a government initiative from HM Revenue and Customs (HMRC), to use digital tools and software, to record and submit your tax information to HMRC on a more regular basis.

Why is it important for HMRC?

1. Accuracy: MTD will reduce errors in your tax returns and reduce the chance of income and tax being missed to reduce the HMRC Tax Gap.
2. Efficiency: It will save time with streamlined processes and will give HMRC more regular sight of your tax affairs and streamline Tax Administration.
3. Compliance: Stay up-to-date with the latest tax regulations and preparing for future changes.

Who does it apply to?

1. MTD ITSA will be mandatory for individuals (self-employed and landlords) with annual business or property income (income and not net profits) over the relevant thresholds below.
2. MTD ITSA will be based on your reported income from the previous year’s tax return.
3. MTD ITSA is NOT mandatory for those with income under the relevant thresholds, and also not currently mandatory for trading partnership but you can still choose opt in if you’d like to benefit from the digital system

Key Dates and thresholds:

1. April 2026: MTD ITSA will be mandated for self-employed businesses & landlords with income/turnover above £50,000 during the tax year to 5^th April 2025.
2. April 2027: MTD ITSA will be mandated for self-employed businesses & landlords with business turnover above £30,000 during the tax year to 5^th April 2026.
3. April 2028/29 (TBC): MTD ITSA will be mandated for self-employed businesses & landlords with business turnover above £20,000 during the tax year to 5^th April 2027 or 5^th April 2028.

What You Need to Do:

1. Get MTD-ready Software: Ensure your accounting software is compatible with MTD. You’ll need it for submitting your quarterly updates and annual tax return to HMRC.
2. Digitally Maintain Records: From 2026, your financial records must be stored digitally and submitted to HMRC via your software.
3. Quarterly Updates: Prepare to send quarterly updates in addition to an annual tax return (from 2026). These quarterly updates will reflect your income and expenses and be tied up with the usual tax return.
4. Speak to Your Accountant: Don’t leave it to the last minute. Ensure you’re fully prepared for MTD ITSA so you don’t face penalties and keep your tax filings smooth.

Future plans for other businesses

1. HMRC have stated that MTD for corporation tax will not be mandated before April 2026.
2. No timetable has yet been introduced for partnerships.

Remember to plan Ahead

As your trusted accountants, we are here to help guide you through the transition. Contact us today to ensure your tax affairs are MTD-ready and see whether you fall into the small area of people who may be exempt from MTD!

Email us today at help@elsbyandco.co.uk or give us a call on 01933 312950

New Year, New Financial Goals! Here’s How to Build a Solid Financial Plan for 2025.

As we enter 2025, it’s the perfect time to reflect on the past year and set your business up for success in the coming year. A solid financial plan is one of the most important steps you can take toward achieving your goals and ensuring your business continues to grow and thrive. Whether you’re a small business owner or overseeing a growing company with employees, having a clear financial strategy is essential.

In this blog, we’ll walk you through some key steps to build a financial plan that sets your business up for success in 2025.

1. Set Clear, Achievable Financial Goals

Start with defining specific financial objectives for the year. Your goals should be realistic and measurable to track your progress. Some common goals include:

• Increasing revenue by X%
• Reducing costs by X%
• Expanding into new markets or launching new products
• Improving cash flow and profit margins
• Strengthening your savings or emergency fund

Tip: Make sure your goals are S.M.A.R.T. — Specific, Measurable, Achievable, Relevant, and Time-bound.

2. Review and Update Your Budget

A detailed, realistic budget is the foundation of any successful financial plan. Take the time to assess last year’s budget, track income and expenses, and compare with what you projected. Based on the current financial climate and your goals, update your budget for the new year:

• Review fixed and variable costs: Can any costs be reduced or eliminated?
• Allocate for growth: If expansion or hiring is a goal, make sure to factor this in.
• Set aside money for taxes: Avoid surprises by allocating funds for tax liabilities.

Tip: Use accounting software to track your income and expenses. If you don’t already use one, consider transitioning to cloud accounting tools for easy real-time access.

3. Plan for Taxes and Compliance

Tax planning is crucial for every business. Take the time to review your tax obligations and find ways to minimize your liabilities. This includes:

• Staying updated on any tax law changes that may impact your business
• Identifying deductions you may qualify for (e.g., R&D credits, capital allowance claims)
• Ensuring your business is compliant with tax deadlines and filings

Tip: Set aside a separate fund for tax payments, so you’re prepared when tax season arrives.

4. Assess Cash Flow Management

Cash flow is the lifeblood of any business. Without strong cash flow management, even profitable companies can struggle. Key actions to improve cash flow include:

• Regularly monitoring your cash flow statements to identify potential shortfalls
• Streamlining invoicing and collections to reduce the days sales outstanding (DSO)
• Reviewing payment terms with suppliers and customers to improve cash flow cycles
• Setting up an emergency fund for unexpected expenses

Tip: Make sure your pricing strategy reflects your costs and profit margins so you’re not underselling your products or services.

5. Consider Financing and Investment Options

As your business grows, you may need additional capital to fund new projects, expand your team, or purchase equipment. Consider your financing options:

• Business loans or lines of credit
• Equity financing from investors or partners
• Self-funding or reinvesting profits

It’s also crucial to plan for any investments your business may need to make in technology, talent, or equipment.

Tip: Understand the pros and cons of each financing option. As your accountant, we can help you evaluate the best strategy for your business.

6. Focus on Profitability, Not Just Revenue

While increasing revenue is often the main focus, profitability is what will sustain your business in the long term. To improve profitability, consider:

• Reassessing pricing strategies to ensure you’re adequately covering costs and achieving your desired margin
• Evaluating your product or service offerings to eliminate low-margin or unprofitable lines
• Reducing inefficiencies in your operations to lower costs without sacrificing quality

Tip: Regularly review financial statements with your accountant to identify trends and opportunities for improvement.

7. Plan for Growth and Scalability

A business that doesn’t plan for growth will struggle to achieve it. Ensure your financial plan accounts for scalability, including:

• Identifying key areas where you can scale operations or improve efficiency
• Forecasting the costs and potential revenue of expansion plans
• Considering long-term investments in infrastructure or human resources to support growth

Tip: Set up a financial forecast to estimate the impact of growth initiatives on cash flow, profits, and other financial metrics.

8. Protect Your Business with Insurance and Risk Management

While growth is important, it’s equally critical to mitigate risks. Consider reviewing your business insurance policies to protect against potential threats, such as:

• Property damage
• Liability risks
• Employee injuries
• Cybersecurity breaches

A well-structured risk management strategy can help safeguard your business from unforeseen events that could derail your financial goals.

Tip: Speak with an insurance advisor to ensure you have adequate coverage, and review policies annually.

9. Monitor Your Financial Progress Regularly

A financial plan isn’t a one-and-done task. It requires ongoing monitoring to ensure you’re staying on track. Set up regular check-ins to review your financial performance:

• Track your revenue, expenses, and cash flow against your budget and forecasts
• Revisit your goals quarterly to make adjustments as needed
• Assess the effectiveness of your financial strategies and make improvements

Tip: As your accountant, we can help with ongoing financial analysis and guidance. Having an expert in your corner can save you time and money.

In Summary

Building a solid financial plan for 2025 requires clear goals, effective budgeting, tax planning, and continuous monitoring. As a business owner, staying proactive about your financial health will help you navigate challenges and seize opportunities. A well-thought-out plan is the key to long-term success.

At Elsby & Co, we are more than just number crunchers. We take the time to understand your business and provide personalized advisory services to help you meet your financial goals. Whether you need help with tax planning, cash flow management, or forecasting, our team is here to support your business every step of the way.

Let us help you build a financial plan that drives growth and success in 2025. Contact us today to discuss how we can assist you in achieving your business goals!

The Autumn Budget had many announcements, one of which unveiled a significant change in tax regulations that directly impact businesses and drivers of double cab pick-up trucks. Starting April 2025, these vehicles, when equipped with a payload capacity of one tonne or more, will be reclassified as passenger cars for tax purposes. This reclassification marks the end of their long-standing treatment as light commercial vehicles, leading to considerable tax and National Insurance implications for businesses and employees alike.

Let’s delve into the key changes, what they mean for business owners and drivers, and how you can prepare.

Key Changes and Timelines

The changes will take effect on the following dates:

• 1 April 2025: For Corporation Tax purposes, double cab pick-ups will be taxed as passenger cars.
• 6 April 2025: For Income Tax purposes, the same reclassification will apply to Benefit-in-Kind (BIK) and business profit deductions.

Under the current system, double cab pick-ups enjoy a flat BIK rate of approximately £3,960 annually. However, from April 2025, the BIK calculation will shift to align with the passenger car model, which is generally higher. This means increased tax liabilities for individuals using these vehicles for business purposes.

Implications for Capital Allowances and Business Deductions

The reclassification will also affect capital allowances and deductions. Here’s how:

• Purchases Before April 2025: Businesses can claim capital allowances under the existing commercial vehicle classification for double cab pick-ups purchased before this date.
• Purchases From April 2025: Vehicles will follow the capital allowance model for passenger cars, which offers less favorable tax treatment compared to light commercial vehicles.

This shift will reduce the tax advantages previously associated with these vehicles, impacting cash flow and profitability for businesses.

Transitional Arrangements for Existing Vehicles

To ease the transition, HMRC has introduced special provisions for businesses that already own or lease double cab pick-ups. These vehicles can continue to be taxed under the existing commercial vehicle framework until the earliest of the following:

• The vehicle is sold or disposed of
• The lease term ends 5 April 2029

This grace period provides a window for businesses to adapt to the new rules and plan for future vehicle acquisitions.

What This Means for Double Cab Pick-Up Drivers and Businesses

For drivers and businesses, the reclassification introduces significant financial considerations. Higher BIK rates and changes to deductions could lead to increased costs. It’s essential to:

• Review Current Assets: Assess the status of your double cab pick-ups and determine eligibility for transitional arrangements.
• Plan Future Investments: Factor in the new tax treatment when purchasing or leasing vehicles after April 2025.
• Seek Professional Advice: Consult with your accountant or tax advisor to understand the full implications for your business.

How We Can Help

At Elsby & Co, we understand that navigating tax changes can be challenging. Our team are ready to guide you through the upcoming reclassification of double cab pick-ups. From tax planning to financial forecasting, we can help you make informed decisions that align with your business goals.

Contact us today to learn more about these changes and how to optimize your business strategy. Let us help you stay ahead of the curve and ensure a seamless transition to the new tax framework.

Get in Touch Ready to plan for the future? Reach out to our team for tailored advice and support. Together, we’ll ensure your business thrives in the face of these regulatory changes.

Email us at help@elsbyandco.co.uk or give us a call on 10933 312950

You can also complete our online enquiry form and our team will get back to you as soon as they can – Get a Quote | Elsby & Co

It’s that time of year when thoughts turn to schmoozing customers and incentivising your workers with Christmas goodies. Choosing suitable gifts is easy, understanding the tax treatment less so. What’s to know?

HMRC plays Scrooge

Aside from the limited exemption from the benefits in kind rules which applies for annual staff events, including but not exclusively to Christmas parties, HMRC, like Scrooge, makes no special allowances for Christmas. However, there are general rules relating to staff and other business gifts that often come into play at Christmas.

Tax relief for staff gifts

Gifts are considered to be a form of business entertainment and as such are blocked by the same tax rule. However, there’s an exception.

Tip – The cost of staff gifts is tax deductible. What’s more, unlike the aforementioned exemption for employee events, there’s no cap on the amount you can spend and obtain a tax deduction for. However, this isn’t the whole story, the gift recipient’s tax position needs to be considered.

Trap – A gift that costs you in excess of £50 (including VAT and related costs, e.g. delivery charges, is taxable as a benefit in kind on the employee receiving it. This means you’ll hae to pay Class 1A NI at 13.8% (note that the increase in Class 1A to 15% won’t apply to benefits provided in 2023/24 even though it will be payable after that date). To prevent the employee having to meet the tax cost there’s a procedure which allows you to pick up the bill.

What about VAT?

There’s a school of thought that says you can’t reclaim VAT paid on the cost of staff gifts, but in our view that’s wrong. VAT can be reclaimed but the trouble is you must then account for VAT when you supply the gift to an employee. Assuming again that you don’t expect your employees to pick up the tax tab for a gift, you can either reclaim the VAT and account for it out of your pocket or not bother reclaiming the VAT in the first place.

Tip – You don’t have to account for VAT if the value of gifts to the same person within a twelve-month period doesn’t exceed £50.

Customer etc. gifts – tax deductions

With one exception, your business isn’t entitled to a tax deduction from its profits for the cost of gifts to customers, suppliers etc. is the same as that for gifts to employees. Therefore, you can reclaim the VAT but if the value of all gifts made to the same person exceeds £50 in a twelve-month period, VAT must be accounted for. For practical reasons this again means your business will have to pay it.

The cost of business gifts isn’t tax deductible other than where it relates to employees. Customer gifts costing up to £50 per accounting period can qualify for a deduction if they show advertising. VAT is reclaimable but if the value is greater than £50, you must account to HMRC for VAT as if it were a sale. This makes the position VAT neutral.

This information is taken from an article from Indicator – FL Memo Ltd. www.tips-and-advice.co.uk – Tips & Advice Tax – Year 25 – Issue 05 – 25.11.2024

Managing your own accounting as a freelancer or independent contractor can be a headache. From staying on top of tax changes to organizing your finances, it’s easy to feel overwhelmed. Outsourcing your accounting might just be the smartest move you can make—and here’s why:

1. Stay on Top of Tax Changes Without the Stress

The UK government is always updating tax rules, and this year’s budget brought even more changes for freelancers. Keeping up with new tax rates and allowances isn’t easy. An outsourced accountant handles all that for you, making sure you’re compliant while taking advantage of every deduction and allowance.

2. Save Money Compared to Hiring In-House

Hiring an in-house accountant is expensive—you’re paying a salary, benefits, and training. Outsourcing, on the other hand, gives you access to expert help when you need it, without the full-time cost. Whether it’s VAT returns or annual filings, you can scale services up or down as your needs change.

3. Get the Most Out of Tax Deductions

Freelancers often miss out on tax savings because they’re too busy or unaware of what they can claim. An accountant can spot every allowable expense, from home office costs to equipment write-offs, ensuring you keep more of your hard-earned money.

4. Free Up Your Time

Why spend hours wrestling with spreadsheets when you could be focusing on your clients or projects? Outsourcing your accounting lets you hand over the busywork—like reconciling accounts and managing receipts—so you can focus on growing your business.

5. Avoid Costly Penalties

Nobody wants to pay fines for late or incorrect tax filings. An outsourced accountant keeps you on track with deadlines and ensures accuracy, so you don’t have to worry about unexpected penalties.

6. Get Insights to Grow Your Business

A good accountant does more than file taxes. They’ll give you a clear picture of your finances, helping you make smarter decisions about spending, saving, and investing in your business.

7. Be Prepared for Audits

If HMRC comes knocking, you’ll want everything in order. An outsourced accountant ensures your records are organized, creating a solid audit trail that keeps you protected.

The Bottom Line

Outsourcing your accounting isn’t just about convenience—it’s about working smarter. You’ll save time, money, and stress while gaining expert advice that helps your business thrive.

Ready to ditch the spreadsheets and focus on what you love? Partner with an accounting firm that understands freelancers and small businesses—you’ll be glad you did!

Drop us an email at help@elsbyandco.co.uk 

A dynamic accountancy firm has been supporting clients through staff changes and providing business coaching as part of the highly personalised service it offers.

Elsby & Co, based in Rushden, is on a mission to be the only accountant its clients ever need – or will ever wish to consult – throughout the lifetime of their business and beyond.

As a result, it has developed a suite of services which greatly exceed those typically provided by traditional accountants so its clients can benefit from a truly bespoke offering.

Partner Carl Elsby said: “Many businesses only work with their accountants on end of year accounts but we’re keen to provide our clients with far more. We want to help them to grow and to support them throughout the life of their business and beyond.”

“We train our staff to always look for ways in which we can go the extra mile because we want to be confident that we’ve provided our clients with more benefit than cost. We can achieve this because our traditional accounting and advisory services are complemented by the support of our Business Hub and our staff working in corporate finance, estate planning and wealth management.”

In one case the Elsby team recently went into the workplace of one of its audit clients which was going through staff changes so they could offer them advice and give them hands-on support with their systems. The client also had the support of Elsby’s Business Hub which enabled it to fulfil roles while its staff changes took place.

In another example, Elsby’s Head of Operations, Ann Phillips, who is a highly experienced executive coach and management development specialist, provided coaching to another client’s management team. Elsby also supported the same client by taking on its financial director role while it is undergoing staff changes.

Carl said: “The first case is a testament to the fact that a client which would normally only use us for an audit has been able to benefit from our wider services as their business changes.”

“In the second example we were able to give our client specific advice and guidance relating to their industry which really helped them. We can do this because our expert team takes the time to understand our clients and their industries so we can support them as much as possible.

“In another example we were doing a tax return for a client which was quite straightforward. I think most accountants would have done just that without giving it any more thought, but we went on to examine the rules regarding state pension top-up through the client’s partner’s National Insurance contributions. The outcome was the client was able to reclaim more than £3,000 in state pension, going back several years, and was also able to increase her ongoing state pension by £800 per year.

“We can’t always deliver results like this, but we promise we’ll always be alert and look for ways of helping our clients. This is what sets us apart, and it’s amazing how many times we can find ways of helping clients because of this attitude.”

For further information, visit www.elsbyandco.co.uk  or contact 01933 312950.

The UK Budget yesterday, historically delivered by a female for the first time ever, marks Labour’s first budget since 2010. The focus of their Budget is aimed at rebuilding the economy, with significant immediate investments in public services, including a £22 billion boost for the NHS and a £6 billion boost in Education, achieved through additional funds raised from tax rises (mainly through a substantial amount of tax raised via an increase in Employers NIC rates to 15%) and through additional borrowing.

In line with previous Budgets, there were additional plans and upcoming changes that didn’t make the Chancellors speech, all included and tucked away within the full Budget Report – all resulting in a substantial and impactful budget.  Below is a summary of the key takeaways.

Personal Tax

As promised in the Labour manifesto, no changes were announced to the rates of Income Tax. In addition, the government will not extend the freeze to income tax thresholds. From April 2028, these personal tax thresholds will be uprated in line with inflation.

The government will increase the Lower Earnings Limit and the Small Profits Threshold for National Insurance contributions (NICs) by 1.7% for 2025/26 to £6,500 and £6,845 per annum respectively. For those paying voluntarily, the government will also increase Class 2 and Class 3 NICs rates by 1.7% for 2025/26. The main Class 2 rate will be £3.50 per week and the Class 3 rate will be £17.75 per week.

The government confirmed that the non-domicile regime will be abolished from 6 April 2025. Individuals who opt-in to the new residence-based regime will not pay UK tax on foreign income and gains for the first four years of tax residence. As part of the transition the Temporary Repatriation Facility will be extended to three years.

The government will not proceed with the reform to base the High Income Child Benefit Charge on household incomes as proposed by the previous government.

Capital Taxes

Capital Gains Tax

The lower rate of Capital Gains Tax (CGT) will be increased from 10% to 18% and the higher rate from 20% to 24% for disposals of non-residential assets made on or after 30 October 2024. The rates on residential property will be maintained at 18% and 24%.

The rate of CGT on assets qualifying for Business Asset Disposal Relief and Investors’ Relief will rise gradually to 14% from 6 April 2025 and to 18% from 6 April 2026.

The CGT rates currently applied to carried interest will be increased to 32% from April 2025 and carried interest will be taxed fully within the Income Tax framework from April 2026.

Inheritance Tax

The Nil Rate Band and Residence Nil Rate Band for Inheritance Tax (IHT) are currently frozen at £325,000 and £175,000 respectively until April 2028. The government is extending these threshold freezes for a further two years to April 2030.

The government will bring unused pension funds and death benefits payable from a pension into a person’s estate for inheritance tax purposes from 6 April 2027.

Agricultural Property Relief (APR) and Business Property Relief (BPR) will be reformed. From April 2026, the first £1 million of combined eligible agricultural and business assets attract 100% relief. The rate of relief on excess assets will be 50%. The government will also reduce the rate of BPR to 50% for shares designated as ‘not listed’ on the markets of a recognised stock exchange, such as AIM.

From 6 April 2025 the government will introduce a new residence based system for IHT, ending the use of offshore trusts to shelter assets from IHT.

Employment

From 6 April 2025 the rate of employers’ NICs will be increased by 1.2% to 15%. The per‑employee threshold at which employers start to pay NICs will be reduced from £9,100 per year to £5,000 per year.

The Employment Allowance currently allows businesses with employer NICs bills of £100,000 or less in the previous tax year to deduct £5,000 from their employer NICs bill. The amount of the Employment Allowance will be increased from £5,000 to £10,500 and the £100,000 threshold for eligibility will be removed. In addition, the government is extending the employer NICs relief for employers hiring qualifying veterans for a further year from 6 April 2025 until 5 April 2026.

The percentages for company car benefits will be increased for 2028/29 and 2029/30 as follows:

• Increase of 2% per year for zero emission and electric vehicles.
• Increase to 18% in 2028/29 and 19% in 2029/30 for cars with emissions of 1-50g of CO₂ per kilometre.
• Increase of 1% per year for all other vehicle bands.
• The maximum will also increase to 38% in 2028/29 and 39% in 2029/30.

The government will uprate the Van Benefit Charge and Car and Van Fuel Benefit Charges by CPI from 6 April 2025.

From April 2026, to tackle the significant levels of tax avoidance and fraud in the umbrella company market, the government will make recruitment agencies responsible for accounting for Pay As You Earn on payments made to workers that are supplied via umbrella companies. Where there is no agency, this responsibility will fall to the end client business.

From April 2025 the National Living Wage will increase to £12.21 per hour for all eligible employees and the National Minimum Wage for 18-20 year olds will increase to £10.00 per hour for all eligible workers.

Business

The government will extend the 100% First Year Allowances (FYA) for qualifying expenditure on zero-emission cars and the 100% FYA for qualifying expenditure on plant or machinery for electric vehicle chargepoints for a further year to 31 March 2026 for Corporation Tax purposes and 5 April 2026 for Income Tax purposes.

The government has published a Corporate Tax Roadmap. The Roadmap includes a commitment to cap the Corporation Tax Rate at 25%, maintain the Small Profits Rate and marginal relief at current rates and thresholds and maintain key features such as Full Expensing, the Annual Investment Allowance, R&D relief rates and the Patent Box.

For 2025/26, eligible retail, hospitality and leisure properties in England will receive 40% relief on their business rates liability. The small business multiplier will be frozen for 2025/26.

The rate of the Energy Profits Levy will be increased by 3% to 38% from 1 November 2024. The levy will continue to apply until 31 March 2030.

Other matters

Other announcements included:

• The higher rates of Stamp Duty Land Tax for purchases of additional dwellings will be increased from 3% to 5% from 31 October 2024.
• As previously announced, all education services and vocational training provided by a private school in the UK for a charge will be subject to VAT at the standard rate of 20% from 1 January 2025. This will also apply to boarding services provided by private schools. In addition, it is intended that private schools in England will no longer be eligible for charitable rate relief from business rates from April 2025.
• From 6 April 2025, the government will increase the late payment interest rate charged by HMRC on unpaid tax liabilities by 1.5%.