By Katie Business News • Tax 0 Comments

Check your state pension entitlement

HMRC have developed an app that can help people prepare for their retirement.  Individuals can use the app to check their State Pension Forecast, allowing them to:

  • see their State Pension age;
  • view their forecast State Pension amounts based on potential contributions; and
  • view how much their State Pension would currently be worth, based on National Insurance contributions to date.

The app can also be used to check National Insurance contribution (NIC) years, and view any gaps in your record, including how many weeks you have paid and how much you need to pay for it to become a full qualifying year.  If you have any NIC ‘gap years’, you may be able to make voluntary payments online or through the HMRC app.  Note that you have until 5 April 2025 to make up any gap years since 2006/07. Contributions made prior to 5 April 2025 will be at the Class 3 voluntary NI rate of £15.85 per week (£824.20 p.a.) which will provide an additional £342.86 a year State pension – a pretty good return! From 6 April 2025 it will only be possible to go back 6 years.

Need more information?

At A&C Chartered Accountants, we’re not just accountants; we’re your partners in success. Based in Manchester, our experienced team handles everything from managing limited company and sole trader accounts to expertly navigating tax returns. Beyond financials, we play a crucial role in driving your business’s growth, strategically steering it towards success with confidence and clarity.

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By Katie Business News • Tax 0 Comments

Agricultural and business property relief: budget update

Changes to inheritance tax were announced in the Budget that have caused consternation and resulted in protests by farmers and business owners across the UK. What exactly is changing and what could this mean for you?

What are agricultural and business property relief?

Agricultural property relief (APR) is a type of inheritance tax relief that helps reduce the amount of tax that is paid when farmland is being passed down to the next generation. Currently, the relief has no financial limit, meaning that regardless of the value of the farmland, it could be passed on with no inheritance tax payable.

Business property relief (BPR) is similar but relates to business assets included in a person’s estate. Again, this relief currently applies without any financial limit to the relief.

Clearly, both reliefs have played an important role in families being able to pass on agricultural and business assets without having to worry about inheritance tax.

What changed in the budget?

Based on the Autumn Budget announcement, there will be a new £1 million limit where 100% relief will be given. The relief will then reduce to 50% on the value that exceeds £1 million.

It is important to note that the £1 million allowance is a combined one for APR and BPR purposes. An estate that has both qualifying business and agricultural assets will only have a single £1 million allowance to use.

In addition, (quoted) shares that are designated as “not listed” on the markets of recognised stock exchanges, such as AIM, will only ever get 50% relief regardless of whether they would otherwise qualify as agricultural or business assets.

When will the change take effect?

The intention is that this change will take effect from 6 April 2026. So, these changes do not take immediate effect and mean that there could be some scope for planning or transferring of assets that will minimise your exposure to inheritance tax when the new limits come into force.

If I have agricultural assets valued at more than £1 million, will I have to pay inheritance tax?

Not necessarily. Inheritance tax is calculated by first deducting any reliefs (such as APR and BPR) and then deducting any allowances that apply. Each individual has a nil rate allowance, currently £325,000, and there is a residence nil-rate band limit of £175,000.

What should I do now?

If your estate is likely to be subject to inheritance tax, then it can pay to consider using some estate planning strategies to reduce your exposure to inheritance tax. As a starting point, it is a good idea to assess the current value and makeup of your estate, including assets such as properties, shares, and businesses.

Please get in touch with us if you would like any help with doing this, or if you would like to discuss whether there are any estate planning strategies that are open to you. We would be happy to help you!

Need more information?

Our team works hard to ensure they create smart and effective tax-efficient solutions for our clients.

If you want to learn about how our inheritance tax advisors can help, or simply want some advice you can trust, then please don’t hesitate to contact us. You can fill out a form below or call us on 0161 962 1855.

By Katie Business News 0 Comments

Paying employees early before Christmas

Some employers need to pay their employees earlier than usual in December. This can be for several reasons, such as businesses closing during the festive period and needing to pay workers earlier than normal. As in earlier years HMRC have announced that they have relaxed the RTI (Real Time Information) reporting obligations.

If you do pay early over the Christmas period, you must report your normal or contractual payment date on your Full Payment Submission (FPS). For example: if you pay on 20 December but your normal payment date is 31 December, please report the payment date as 31 December. The FPS would need to be sent on or before 31 December.

Doing this will help to protect your employees’ eligibility for income-based benefits such as Universal Credit, as an early payment could affect current and future entitlements.

Need more information?

At A&C Chartered Accountants, we’re not just accountants; we’re your partners in success. Based in Manchester, our experienced team handles everything from managing limited company and sole trader accounts to expertly navigating tax returns. Beyond financials, we play a crucial role in driving your business’s growth, strategically steering it towards success with confidence and clarity.

CONTACT US TODAY

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By Katie Business News • Tax 0 Comments

Extension of First-Year Allowances for Zero-Emission Cars and Electric Vehicle Charging Points

Extension of First-Year Allowances for Zero-Emission Cars and Electric Vehicle Charging Points

The UK government has announced the extension of first-year allowances (FYAs) for businesses investing in zero-emission cars and electric vehicle (EV) charging points. These allowances enable businesses to deduct 100% of the cost of qualifying investments from their taxable profits in the year of purchase.

Key Points:

  1. Zero-Emission Cars
    Businesses can continue claiming the 100% FYA on zero-emission cars purchased for business use. To qualify, the vehicle must meet specific CO₂ emissions criteria and be brand new.
  2. EV Charging Points
    The allowance also applies to investments in EV charging points, encouraging businesses to support the shift to electric vehicles by installing infrastructure.
  3. Timeframe
    The extension applies to qualifying expenditures made until 31 March 2025 for companies and 5 April 2025 for individuals or unincorporated businesses.
  4. Business Benefits
    This incentive supports environmentally friendly investments, reduces tax bills, and aligns with the government’s net-zero goals.

For more details on eligibility and how to claim, visit the UK Government website.

Need more information?

At A&C Chartered Accountants, we’re not just accountants; we’re your partners in success. Based in Manchester, our experienced team handles everything from managing limited company and sole trader accounts to expertly navigating tax returns. Beyond financials, we play a crucial role in driving your business’s growth, strategically steering it towards success with confidence and clarity.

CONTACT US TODAY

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By Katie Business News • Tax 0 Comments

Double-Cab Shake-Up: New Tax Rules for Pick-Ups from April 2025

The UK government is changing the game for double cab pick-ups with new tax rules coming into force on 6 April 2025. Historically, these vehicles have been treated as vans if they could carry a payload of 1,000kg or more, giving businesses favourable tax benefits. But this approach is shifting, following a landmark court case.

What’s Changing?

  • Up to 5 April 2025: Double cab pick-ups have been classified as vans based on payload weight, aligning with VAT definitions. This provided tax advantages for Benefits in Kind (BIK) and capital allowances. However, the Coca-Cola case (Payne & Ors v HMRC) exposed inconsistencies in how these vehicles were assessed.
  • From 6 April 2025: Classification will depend on whether the vehicle is primarily built for carrying goods or passengers. This decision will be based on a detailed construction and suitability assessment, moving away from simple payload weight rules.

Transitional Relief

If your business purchases, leases, or orders a double cab pick-up before 6 April 2025, you can continue using the old tax treatment until 5 April 2029 or until the vehicle is sold or the lease expires, whichever comes first.

What This Means for Your Business

These changes aim to clarify vehicle classifications and align taxation more consistently. However, they could affect your tax liabilities, especially regarding BIK and capital allowances. It’s a good time to review your fleet and plan ahead.

Need help navigating the new rules? You can read more about it here. A&C Chartered Accountants is here to guide you through these changes and optimise your tax position. Get in touch with us today!

By Katie Business News 0 Comments

Significant changes proposed to workers’ rights

The government published the Employment Rights Bill in October, which is intended to help deliver economic security and growth to businesses, workers and communities across the UK.

The bill will bring forward 28 individual employment reforms, from ending exploitative zero hours contracts and fire and rehire practices to establishing day one rights for paternity, parental and bereavement leave for millions of workers. Statutory sick pay will also be strengthened, removing the lower earnings limit for all workers and cutting out the waiting period before sick pay kicks in. The existing two-year qualifying period for protections from unfair dismissal will be removed, ensuring that all workers have a right to these protections from day one on the job.

The government will also consult on a new statutory probation period for companies’ new hires. This will allow for a proper assessment of an employee’s suitability to a role as well as reassuring employees that they have rights from day one.

The bill will end exploitative zero hours contracts, following research that shows 84% of zero hours workers would rather have guaranteed hours. They, along with those on low hours contracts, will now have the right to a guaranteed hours contract if they work regular hours over a defined period, giving them security of earnings whilst allowing people to remain on zero hours contracts where they prefer to.

The bill will also:

  • Change the law to make flexible working the default for all, unless the employer can prove it’s unreasonable;
  • Set a clear standard for employers by establishing a new right to bereavement leave;
  • Deliver stronger protections for pregnant women and new mothers returning to work, including protection from dismissal whilst pregnant, on maternity leave and within six months of returning to work;
  • Tackle low pay by accounting for cost of living when setting the Minimum Wage and remove discriminatory age bands; and
  • Establish a new Fair Work Agency that will bring together different government enforcement bodies, enforce holiday pay for the first time and strengthen statutory sick pay.

An Impact Assessment for the bill has been published suggesting the measures will impose a direct cost on business of up to £5 billion a year. It suggests that these costs are relatively modest since they estimate that the uplift in wage bill for employers in lower-paid sectors would be 1.5% at most. However, it also found that several of the measures will have a disproportionate impact on small and micro employers.

The government has launched consultations on 4 areas of the proposed legislation, which will be incorporated as amendments to the bill in the early part of 2025. In the meantime, the bill is at committee stage in Parliament, where it is being given a detailed examination.

Employers should prepare by looking at how the bill will affect their employment procedures and budgeting for any increased costs.

Need more information?

At A&C Chartered Accountants, we’re not just accountants; we’re your partners in success. Based in Manchester, our experienced team handles everything from managing limited company and sole trader accounts to expertly navigating tax returns. Beyond financials, we play a crucial role in driving your business’s growth, strategically steering it towards success with confidence and clarity.

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By Katie Business News 0 Comments

Chancellor pushes for e-invoicing

Could that help or hinder your business?

As part of a series of announcements made in recent weeks by the Chancellor, the government is making a push for greater use of electronic invoicing (e-invoicing).

HM Revenue and Customs (HMRC) will soon launch a consultation on encouraging the wider use of e-invoicing, with the goal of simplifying business transactions and reducing administrative burdens but perhaps especially, reducing errors in tax returns so that HMRC can ‘close the tax gap’.

While there are clearly advantages for HMRC in businesses using e-invoices, it’s also fair to say that they can benefit businesses too.

Benefits of e-invoicing for businesses:

  • Improved cash flow: E-invoicing accelerates payment times by automating the invoice approval process, making it easier for businesses to receive payments quickly.
  • Reduced errors: Automated processes can help minimise the risks of manual entry errors in invoices, which can lead to payment delays or disputes.
  • Increased productivity: With fewer administrative tasks, businesses can save time and focus on other essential areas, such as growth and customer service.
  • Tax compliance: E-invoicing can help businesses keep accurate tax records, making it easier to complete tax returns and avoid discrepancies that may lead to penalties.

How could you take advantage of e-invoicing?

While the consultation is yet to launch, there’s no reason you couldn’t give some thought to moving over to an e-invoicing system now.

To do this, you could explore the options available. Many software providers offer affordable solutions tailored to SMEs that work with your existing accounting software. You may find that the software you already use can do e-invoicing for you.

If you need any help with e-invoicing or setting up your accounting software, please just give us a call and we would be happy to help you out.

Need more information?

At A&C Chartered Accountants, we’re not just accountants; we’re your partners in success. Based in Manchester, our experienced team handles everything from managing limited company and sole trader accounts to expertly navigating tax returns. Beyond financials, we play a crucial role in driving your business’s growth, strategically steering it towards success with confidence and clarity.

CONTACT US TODAY

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By Katie Business News • Tax 0 Comments

What Does the Latest Budget Mean for Your Business?

On 30th October 2024, Rachel Reeves made history as the first female Chancellor of the Exchequer to deliver a Budget speech. The occasion was significant on many levels, but as the speech concluded, it left mixed feelings among business owners. While the Budget had its silver linings for workers, many businesses will face new financial challenges.

Addressing the Public Finance Deficit

From the outset, the Chancellor addressed the difficult decisions ahead, pointing to the £22 billion deficit in public finances left by the previous government. Despite these challenges, the Budget perhaps didn’t feel as taxing as we may have feared. The main revenue-raising measure, an increase in Employers’ National Insurance (NI), was no surprise, having been signalled well in advance.

Stability for Workers, Challenges for Businesses

For employees, the Budget maintained the status quo, with no increases to income tax, national insurance, or VAT. The previous government’s freeze on personal allowances and tax rate bands remains, which means as wages rise, more income could be taxed at higher rates through ‘fiscal drag.’ However, from 2028-29, the Chancellor has pledged to index personal tax thresholds to inflation once more, a small win for taxpayers down the line.

Businesses, on the other hand, have been hit harder, mainly due to the rise in Employers’ NI contributions and an increase in minimum wage rates.

Retail, Hospitality, and Leisure – A Mixed Bag of Support

Retail, hospitality, and leisure (RHL) businesses saw some targeted relief, including a 40% discount on business rates, capped at £110,000 per business, alongside a freeze on the small business multiplier in 2025-26. Looking forward, the government plans to establish permanently reduced tax rates for RHL properties by 2026-27, which could provide long-term relief to these sectors.

New Opportunities for Contracts and Public Services

On a positive note, the Budget also announced investments in public services and home building, which could open doors for contracts and opportunities across various sectors.

How Will the Budget Impact Your Business?

If you’re wondering how these changes might affect your business, especially around payroll costs and tax planning, get in touch with A&C Chartered Accountants. We’re here to offer clear guidance and personalised advice, ensuring your business is well-prepared and equipped for the financial landscape ahead.

Need more information?

At A&C Chartered Accountants, we’re not just accountants; we’re your partners in success. Based in Manchester, our experienced team handles everything from managing limited company and sole trader accounts to expertly navigating tax returns. Beyond financials, we play a crucial role in driving your business’s growth, strategically steering it towards success with confidence and clarity.

CONTACT US TODAY

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By Katie Business News 0 Comments

Autumn 2024 Budget at a glance

In the lead-up to Labour’s first Budget, the new Chancellor introduced sweeping reforms. Though these measures may bring challenges for some, they reflect a bold approach to addressing the UK’s critical need for infrastructure and essential services funding. Recent Budgets have relied heavily on band freezes – a subtle but effective tax rise. While IHT bands remain frozen, income tax bands will finally unfreeze, though not without a few more years of stealth tax revenues added by previous policies.

Significant changes were also made to longstanding IHT reliefs: Agricultural Property and Business Reliefs are now capped at £1 million and halved above that amount. As predicted, inherited pensions will also face IHT from April 2027. Capital Gains Tax (CGT) rates are aligned with higher residential property rates, and the Business Asset Disposal Relief (BADR) rate will phase up gradually, bringing it closer to the main CGT rate. Employers, too, will face an increase in National Insurance, marking a shift from Labour’s earlier stance against such hikes.

 

Please find below a round up of the key highlights of budget:

 

National Living Wage

    • Minimum wages will increase from April 2025, with the rate for those over 21 rising from £11.44 to £12.21 an hour.
    • Rates for 18 to 20-year-olds will go from £8.60 to £10, and apprenticeship wages will increase from £6.40 to £7.55.
    • The government aims to work towards a unified adult minimum wage over time.

Employers’ National Insurance Contributions

      • Employers’ National Insurance contributions will rise from 13.8% to 15% starting April 2025.
      • The threshold for paying NI will be reduced from £9,100 to £5,000, while the employment allowance for smaller businesses will increase from £5,000 to £10,500.
      • Employee NI, VAT, and income tax rates remain unchanged, with personal tax thresholds set to align with inflation from 2028-29.

Business Asset Disposal Relief (BADR)

    • BADR will stay at 10% for the rest of this year, increasing to 14% in 2025/26 and 18% from 2026/27.
    • The lifetime limit for BADR remains at £1 million.

Capital Gains Tax (CGT)

    • CGT rates have risen, with the lower rate increasing from 10% to 18% and the higher rate from 20% to 24%, applicable immediately.
    • Rates on the sale of second residential properties will remain consistent at 18% and 24%.

Inheritance Tax (IHT)

    • IHT threshold freezes will continue for another two years, until 2030.
    • Inherited pensions will enter the IHT net starting April 2027.

Electric Vehicles (EVs)

    • Existing company car tax incentives for EVs will remain in place until 2028.
    • The differential for EVs in Vehicle Excise Duty rates will increase from April 2025.

Non-Dom Tax Regime

    • The non-dom tax status will be abolished, effective from April 2025, with domicile-based tax replaced by a residence-based system, aimed at internationally competitive arrangements for temporary UK residents.
    • This measure is expected to generate £12.7 billion in revenue over five years.

Stamp Duty on Second Homes

    • Stamp Duty for second homes will increase from 3% to 5%.

Private Schools

    • Private school fees will incur VAT from January 2025, and business rates relief will be removed from April 2025.

State Pensions

    • The state pension will see a 4.1% increase in 2025-26, following the government’s commitment to the triple lock policy.

Need more information?

We offer a wide range of services which are unique to your businesses who are just getting going! Our team of chartered accountants have a wealth of experience in a broad range of sectors, from construction and property to the charity sector. Our team work hard to ensure they create smart and effective tax-efficient solutions for start-ups to optimise growth and help them succeed. If you want to learn more about how the team can help or simply want some start-up advice from a trusted accountant do hesitate to contact us. For more information please do hesitate to contact us on 0161 962 1855. Alternatively you can email us using the form below and we will contact you as soon as possible.

Our fantastic team at A&C Chartered Accountants are here to help.

By Katie Sustainability 0 Comments

Sustainability for SMEs in the UK: How Small Businesses Can Save Money and Help the Environment

Sustainability for SMEs in the UK: How Small Businesses Can Save Money and Help the Environment

Sustainability is no longer a trend or a luxury for big corporations – it’s becoming a vital part of running a successful business, regardless of size. For small and medium-sized enterprises (SMEs) in the UK, adopting sustainable practices can seem daunting, but it doesn’t have to be. By making small changes, you can reduce costs, increase efficiency, and improve your reputation, all while doing your part for the planet.

At A&C Chartered Accountants, we’re passionate about helping SMEs like yours embrace sustainability in a way that makes financial sense. In this blog, we’ll show you how sustainability can boost your bottom line and offer practical steps you can take to get started.

Why Sustainability Matters for UK SMEs

In today’s business environment, sustainability is more than just a nice-to-have. Consumers are more environmentally conscious than ever, with many choosing to support businesses that align with their values. In fact, a survey by Deloitte found that 32% of UK consumers are highly engaged with adopting a more sustainable lifestyle, and 61% have cut back on single-use plastics. This shift in consumer behaviour is a big opportunity for SMEs to stand out in a competitive market.

Beyond customer appeal, sustainability can also improve your business operations. Simple actions like reducing energy use or sourcing locally can lower costs. Plus, government incentives such as tax reliefs for energy-efficient equipment make going green even more attractive for SMEs.

So, how can you start building sustainability into your business model?

1. Reduce Energy Costs by Boosting Efficiency

Energy efficiency is one of the quickest and easiest ways to cut costs while reducing your carbon footprint. Simple steps like switching to LED lighting, reducing paper use, and installing smart meters to monitor energy consumption can make a big difference. Smart meters not only help you track energy usage but can also highlight where you’re wasting energy, allowing you to take targeted action.

Bonus Tip: Access Green Tax Relief

The UK government offers tax reliefs to businesses that invest in energy-saving technologies through the Enhanced Capital Allowance (ECA) scheme. This means that your SME could claim 100% of the cost of eligible equipment against taxable profits in the first year. At A&C Chartered Accountants, we can help you identify qualifying purchases and make the most of this scheme.

2. Partner with Sustainable Suppliers

Your business is only as sustainable as the supply chain it relies on. One of the best ways to lower your environmental impact is to work with local, sustainable suppliers. By reducing transportation distances and sourcing eco-friendly materials, you’ll not only reduce carbon emissions but also enhance your brand’s green credentials in the eyes of your customers.

Bonus Tip: The Power of Local

Supporting local businesses doesn’t just help the environment – it also fosters community relationships, often leading to long-term partnerships and potentially better deals. It’s a win-win for your business and the planet.

3. Minimise Waste and Maximise Profits

Waste reduction isn’t just about being eco-friendly – it can also be a great way to boost your profits. Many UK businesses are now finding innovative ways to recycle, repurpose, or even sell materials they would have previously thrown away. This not only reduces waste disposal costs but can also open up new revenue streams.

At A&C Chartered Accountants, we help SMEs explore ways to reduce waste and turn it into profit. Whether it’s reviewing your current processes or finding suppliers who can reuse your waste materials, we can provide the financial guidance to help you make it work.

4. Sustainable Financial Management

To truly embed sustainability into your business, it’s important to track the financial impact of your efforts. Sustainable financial management involves regularly reviewing your operations to ensure that they are both environmentally and financially sustainable. This could include anything from reducing unnecessary spending on energy to setting up an efficient payroll system that minimises paper usage.

Our sustainability accounting services at A&C Chartered Accountants can help you measure the financial benefits of your sustainable practices. We’ll guide you in making informed decisions that not only reduce your carbon footprint but also improve your profitability.

5. Embrace Digital Transformation

Going paperless is one of the easiest and most impactful steps a small business can take to reduce its environmental impact. By adopting cloud-based accounting software like Xero, you can manage your finances efficiently while eliminating the need for paper-based records. At A&C Chartered Accountants, we’re proud to have achieved Xero Platinum status, and we can guide you through the process of digitising your accounting, payroll, and other financial processes.

Cloud solutions not only help you cut down on waste but also improve collaboration, allow real-time financial tracking, and give you access to valuable insights that can drive better decision-making.

How A&C Chartered Accountants Can Help You Achieve Sustainability

At A&C Chartered Accountants, we believe that sustainability should be accessible to every business, regardless of size. We work closely with SMEs to identify practical, affordable steps to become more sustainable while improving profitability. Our tailored services include:

  • Sustainability Accounting: We’ll help you track and measure the financial impact of sustainable practices on your business.
  • Green Tax Advice: We’ll make sure you’re taking advantage of every tax relief and incentive available to your business.
  • Financial Planning for Sustainability: We’ll help you plan your finances with sustainability in mind, ensuring that every decision you make benefits both the planet and your bottom line.

By working with A&C Chartered Accountants, you can build a sustainable future for your business while improving your financial health. Whether you’re just getting started on your sustainability journey or looking to take your efforts to the next level, we’re here to support you every step of the way.

Conclusion: Make Sustainability Part of Your Business Strategy Today

Sustainability isn’t just good for the environment – it’s good for business. By making small, strategic changes, your SME can reduce costs, attract more customers, and access valuable government incentives. At A&C Chartered Accountants, we’re here to help UK SMEs like yours navigate the path to sustainability.

Ready to make sustainability part of your business strategy? Contact us today to schedule a consultation with our Sustainability Lead, Katie, and find out how we can help you create a greener, more profitable future.

Need more information?

At A&C Chartered Accountants, we’re not just accountants; we’re your partners in success. Based in Manchester, our experienced team handles everything from managing limited company and sole trader accounts to expertly navigating tax returns. Beyond financials, we play a crucial role in driving your business’s growth, strategically steering it towards success with confidence and clarity.

CONTACT US TODAY

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By Katie Business Advice • Business News 0 Comments

New Rules on Tips, Gratuities and Service Charges

If you have a business where your staff receive tips, gratuities and service charges (“tips”) there are important changes in force from 1 October 2024.

The Employment (Allocation of Tips) Act 2023, effective from October 2024, ensures that tips, gratuities, and service charges are distributed fairly and transparently among workers, including eligible agency staff. This law responds to the rise in tipping via card payments, which often become the legal property of employers. The new legislation aims to ensure that workers, especially in the hospitality sector, receive 100% of tips paid by card. Additionally, tips cannot count towards the National Minimum Wage, and a statutory Code of Practice guides employers in fair distribution.

By law, employers must:

  • Pass tips to employees without deductions, except for tax and National Insurance.
  • Distribute tips fairly and transparently, following the Code of Practice.
  • Maintain a written policy on tips and keep proper records.

Employers are required to ensure that tips are shared equitably among workers and to regularly review their tipping policies to ensure compliance with the law.

What is covered by the Tips Act?

It applies to all “qualifying tips, gratuities and service charges”, and applies to the full amount paid by the customer.

  • Tips / Gratuities: spontaneous payments offered by the customer, either by cash or card payment.
  • Service Charges: amounts added to a customer’s bill before it is presented to them, often a percentage.

It is important to note that tips paid directly to workers are only ‘qualifying’ tips if they are subject to the employer’s control, such as where the policy is for all tips to be shared amongst all workers.

The Tips Act applies to all employer-received tips and certain worker-received tips. Not all tips fall within the scope of the Tips Act and are covered by the Code. For example, if a worker receives and keeps a cash tip, with no employer control or involvement, the tip is out of scope for the Tips Act and the Code.

Tipping apps are a grey area, but where this involves operating according to an employer’s instructions (as is often the case) then this will fall within the scope of the Tips Act. Employers will also not be off the hook if an independent tronc operator is used. To maintain a fair allocation of tips, an employer must act to rectify a situation if it becomes aware of an independent tronc operator acting in an unfair or improper manner, otherwise an employer may be liable for claims against it.

Fair allocation and payment

Employers must ensure that the total amount of the qualifying tips, gratuities and service charges is allocated fairly between the workers. This means 100% must be paid less deductions that are required under tax law.

In the majority of cases, the fair allocation must then be paid to the workers no later than the end of the month following the month in which the tip/gratuity/service charge was paid by the customer. For example a tip left on 15 July must be paid by 31 August at the latest. There are some variations to this for where an independent tronc operator manages the tips, tips are paid to eligible agency workers, and non-public places of business.

What is a fair allocation?

Along with the Tips Act, a statutory Code of Practice on Tipping has been introduced setting out the principles of fairness and transparency to which employers must have regard. Failure to comply with the Code will be admissible in evidence at an employment tribunal and the tribunal will have to take it into account.

The Code sets out some key principles and suggestions:

  • There may be reasons to have different proportions for different workers.
  • All workers involved in the service should be considered, including agency workers.
  • There should be a clear and objective set of factors set by the employer, such as the role, payment, hours worked, performance, seniority, length of service or customer intentions.
  • Employers should avoid indirect or unintentional discrimination.
  • It may be helpful to consult the workers and review the approach regularly.

What else does the Tips Act require?

Written Policy

Employers are required to have a written policy on tipping where tips/gratuities/service charges are paid on more than an occasional and exceptional basis. The policy should set out written guidelines and the factors for determining the fair allocation and made available to all workers.

Record keeping

Where tipping is on more than an occasional and exceptional basis, employers must keep records of how every tip has been dealt with and must keep this information for three years. Note that workers have a right to request this information over the period during which they worked for the employer during that timeframe.

Non-statutory Guidance

A guidance note has also been published on 27 September, which gives helpful guidance to support the new Tips Act. This includes:

  • Agency workers: Employers must take agency workers into account when considering the distribution of tips. Agency workers may not always receive an equal share of tips in comparison to an organisation’s own employees depending on the particular circumstances, however they should not be unduly disadvantaged as a result of their employment status.
  • Multiple sites of operation: Employers should not pool tips received across multiple sites or branches.
  • Scope of workers: All workers directly involved in providing a service to customers should be considered.

 

Please do contact us if you require more information.

By Katie Case Studies 0 Comments

Client Spotlight: How A&C Helped Bubble Panda Grow with Business Ratio Analysis and Personalised Support

A&C Chartered Accountants, one of the things we love most is watching our clients grow from humble beginnings to thriving businesses. Bubble Panda, an innovative business providing bubble tea and related products, is a shining example of that. We’ve been fortunate enough to work with Bubble Panda from its start-up phase, collaborating closely with their director, Scott, and are delighted to have supported him for over 10 years.

About Bubble Panda

Bubble Panda is a fast-growing brand specialising in bubble tea, offering a wide range of delicious, refreshing beverages that have captured the hearts of bubble tea lovers. Since its inception, the company has worked tirelessly to build its reputation and develop a loyal customer base, delivering quality products that stand out in the competitive market.

Our Partnership with Bubble Panda

At A&C Chartered Accountants, we’ve been with Bubble Panda since the very beginning. We understand the unique challenges that come with starting and growing a business, and we’ve been there every step of the way to provide Scott and his team with the financial support and guidance they need.

One of the standout services we provided to Bubble Panda was a business ratio analysis. This in-depth analysis helped Scott better understand the financial health of his company, offering insights into profitability, liquidity, and operational efficiency. Scott appreciated the clarity it brought to decision-making and found it invaluable in planning for the future. This service is part of what makes A&C Chartered Accountants different – offering more than just standard accounting, but also helping clients gain real financial insight into their business.

How We Support Bubble Panda:

  • Payroll Services:
    As Bubble Panda has grown, so has their team. We handle their payroll, ensuring employees are paid accurately and on time, with all necessary compliance matters managed smoothly.
  • Tax Support:
    In addition to managing payroll, we also handle Scott’s personal tax returns, ensuring his finances are efficiently managed, compliant, and optimised for any potential tax savings. Our tailored approach helps Scott stay on top of both his business and personal financial obligations, giving him peace of mind.
  • In-Person Support:
    Much like with other valued clients, our team enjoys meeting Scott regularly to offer in-person financial guidance and support tailored to his needs. These face-to-face meetings allow us to provide proactive advice and make sure all aspects of Scott’s business and personal finances are aligned for success.
  • Business Advisory:
    We performed a detailed business ratio analysis for Bubble Panda, which Scott found extremely useful for gaining a deeper understanding of his business’s performance. This analysis helped identify areas of strength and potential growth, allowing Scott to make data-driven decisions that contribute to Bubble Panda’s ongoing success.

Client Testimonial

Scott, the director of Bubble Panda, shared his experience working with A&C Chartered Accountants:

“I have been working with Paul and his team for over 10 years, and he has transformed the way I manage my business accounts. Before working with A&C, producing my accounts was always a laborious and stressful process, however now that everything has been explained and we have migrated to the Xero cloud accounting platform, managing my accounts is much quicker and easier. Paul also completes an annual review with me each year to review my figures and areas to focus on within my business. Thank you A&C for all of your help and hard work to date!”

A&C Chartered Accountants – Partnering for Growth

At A&C Chartered Accountants, we take pride in the strong relationships we’ve built with businesses like Bubble Panda. Watching them grow from a start-up to a successful brand has been incredibly rewarding. Our tailored financial services and close working relationship with Scott have helped Bubble Panda navigate the ups and downs of business growth with confidence.

We look forward to continuing to support Scott and his team as Bubble Panda continues to thrive.

By Katie Case Studies 0 Comments

Client Spotlight: Supporting After the Bell School Support Ltd with Their Growing Educational Services

After The Bell  School Support provides schools with a unique outlet for students with SEMH needs. By combining physical exercise, non-contact boxing, and breathwork, they create a space for students to manage stress and anxiety while developing emotional control. This powerful approach helps students prepare for better learning outcomes.

To continue delivering this vital service, Neema, the owner of After The Bell School Support, needed a reliable accounting partner who could expertly manage his personal finances, ensuring full compliance while allowing him to focus on his passion.

 

The Solution: A&C Chartered Accountants

At A&C Chartered Accountants, we took the pressure off Neema by managing his personal tax return and accounts with exceptional attention to detail. With complex tax regulations and financial responsibilities, we understand how crucial it is for individuals like Neema to have their personal taxes handled professionally and accurately. Our team made sure every detail was meticulously reviewed, ensuring compliance while maximising any potential savings.

Our dedicated service means Neema doesn’t have to worry about the intricacies of tax filing, giving him the freedom to fully dedicate his time and energy to supporting schools and students.

Client Testimonial:

Neema, the owner of After The Bell School Support, shared his experience:

 

“Selina and Paul were incredibly helpful. We spoke at length about all aspects of the accounts procedure and afterwards I had a much better understanding of how everything worked. Glad to be working with them and very happy to have them on side. Also, seems like a great working atmosphere, really friendly staff and good people all round.”

 

The Impact:

With A&C Chartered Accountants managing his personal tax return, Neema has peace of mind knowing that every aspect is being handled with expertise. He no longer needs to navigate complex tax laws on his own, giving him more time to focus on the vital work After The Bell School Support does for students. Our personalised, high-quality service gives Neema the confidence that his finances are in the best hands possible.

By Katie Business News • Tax 0 Comments

Beware of “Bed and Breakfast” Anti-Avoidance Rules: An Ethical Approach

With potential Capital Gains Tax (CGT) changes on the horizon, many investors are thinking about realising gains on their investments before the budget announcement on 30 October 2024. However, if you plan to repurchase the same investments afterwards, it’s crucial to understand the “bed and breakfast” anti-avoidance rules to ensure you’re acting within both the spirit and letter of the law.

These rules prevent individuals from realising a capital gain, selling shares, and then repurchasing the same shares within 30 days to create an artificial tax advantage. If this happens, the shares bought back will be matched with those sold, and the capital gain you’re trying to realise could be negated, as the base cost of the shares would remain the same.

For example, if you bought 1,000 shares in Company A for £2 per share several years ago and sell them on 29 October 2024 for £4.50 a share, you’d realise a gain of £2,500. This gain may be covered by your 2024/25 annual CGT exemption if it hasn’t been used yet. However, if you repurchase the same shares on 5 November 2024 for £4.45 per share, you’d instead generate a £50 capital loss, and the base cost of the shares would remain at £2 per share due to the 30-day rule. This eliminates any tax advantage that would have come from manipulating the timing of transactions.

To avoid any unintended consequences, and in keeping with ethical tax planning, it’s better to consider alternative strategies, such as purchasing different shares or using your ISA or pension fund, where CGT does not apply. For couples, another ethical option could be for your spouse to purchase the shares (“bed and spousing”) without exploiting loopholes.

We always encourage responsible and ethical financial strategies that comply fully with UK tax law. If you’re concerned about CGT changes or want to discuss ethical ways to manage your investments, get in touch with our team for expert guidance.

By Katie Business News • Tax 0 Comments

Check your State Pension entitlement

The current State Pension is £11,502 per year and is expected to rise to around £12,000 for the 2025/26 tax year. To put this into perspective, at today’s annuity rates, it would cost over £300,000 to purchase an index-linked annuity starting at £12,000 a year. This highlights the importance of maximising your State Pension entitlement.

To receive the full State Pension, you need 35 qualifying years of National Insurance (NI) contributions. If you have missing years, you may be wondering if it’s worth topping up voluntary Class 3 NI contributions. This decision is financial, but the breakeven period is relatively short—approximately three years for employees, and even less for self-employed individuals who can pay Class 2 contributions for missing years. Additionally, if you weren’t working due to raising children, you may be eligible for NI credits to help fill in those gaps.

For employees, making Class 3 contributions costs £824.20 or £907.40 per year for missing years, which can result in an extra £302.86 annually in State Pension. For the self-employed, Class 2 contributions cost just £179.40 per year for each missing year and provide the same £302.86 annual pension increase.

While normally you can only go back six years to make up missing contributions, there is a current opportunity to fill in gaps going back as far as 2006/07. The deadline for this extended carry-back is 5 April 2025, so if you’re looking to maximise your pension, now is a good time to review your records.

At A&C Chartered Accountants, we can help you navigate the complexities of your pension contributions and determine whether topping up your National Insurance is the right move for your financial future. Get in touch if you’d like to discuss your options.

Need more information?

At A&C Chartered Accountants, we’re not just accountants; we’re your partners in success. Based in Manchester, our experienced team handles everything from managing limited company and sole trader accounts to expertly navigating tax returns. Beyond financials, we play a crucial role in driving your business’s growth, strategically steering it towards success with confidence and clarity.

CONTACT US TODAY

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By Katie Business News • Tax 0 Comments

Many Over 55s Can Still Withdraw 25% of Their Pension Fund Tax-Free

Under the current pension rules, many people over the age of 55 can withdraw up to 25% of their pension savings tax-free. However, the Finance Act 2023 set a cap on the tax-free amount at £268,275, unless the individual has applied for protection at a higher threshold. Recently, there have been rumours that this tax-free limit may be reduced further, with a suggested new cap of £100,000. These rumours have led to a surge in pension withdrawals as individuals seek to take advantage of the current rules before any changes are made.

It’s important to remember that there are anti-avoidance rules in place to prevent pension lump sum “recycling.” These rules limit how much of the withdrawn lump sum can be reinvested into a pension fund within a 12-month period. If a lump sum of more than £7,500 is withdrawn in a single year and subsequent pension contributions increase by more than 30% of that lump sum, the amount will be treated as an unauthorised payment. This could result in a tax charge of 40%.

With potential changes looming, now may be the time to review your pension strategy. At A&C Chartered Accountants, we can help guide you through the complexities of pension withdrawals and tax implications to ensure you make the most of your retirement savings while avoiding unnecessary penalties.

By Katie Business News • Tax 0 Comments

Should You Bring Forward Asset Disposals Before Budget Day?

With potential changes to Capital Gains Tax (CGT) on the horizon, many taxpayers are considering bringing forward their asset disposals to take advantage of the current rates. Although CGT changes typically take effect from 6 April, there have been instances of mid-year changes in the past, which is causing some concern.

It’s important to note that the disposal date for CGT purposes is the date when contracts are unconditionally exchanged. However, be aware that anti-forestalling legislation may be introduced to prevent artificially bringing forward disposal dates to sidestep any new rules.

There’s still time to sell listed investments before the budget announcement, but for assets such as businesses or property, the process generally takes longer unless a buyer is already lined up. If you’re considering selling assets ahead of any potential changes, we recommend acting sooner rather than later.

We can guide you through the implications of any upcoming CGT changes and help you make informed decisions regarding asset disposals. If you’d like to discuss your options, get in touch with us today.

Need more information?

At A&C Chartered Accountants, we’re not just accountants; we’re your partners in success. Based in Manchester, our experienced team handles everything from managing limited company and sole trader accounts to expertly navigating tax returns. Beyond financials, we play a crucial role in driving your business’s growth, strategically steering it towards success with confidence and clarity.

CONTACT US TODAY

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By Katie Sustainability 0 Comments

How SMEs Can Create a Decarbonisation Plan to Drive Success and Sustainability

As the world shifts towards a low-carbon economy, businesses of all sizes are under increasing pressure to reduce their carbon footprints. For small and medium-sized enterprises (SMEs), decarbonisation might seem like a daunting task, but it’s an essential step toward future-proofing your business, improving efficiency, and contributing to a healthier planet.

At A&C Chartered Accountants, we believe that decarbonisation isn’t just for big corporations. SMEs play a critical role in the global economy, and with the right plan, they can lead the charge toward a more sustainable future. So, how can your SME develop an effective decarbonisation plan?

1. Understand Your Carbon Footprint

The first step in decarbonising your business is understanding where your carbon emissions come from. This is known as your carbon footprint and typically falls into three categories:

  • Scope 1: Direct emissions from sources owned or controlled by your business (e.g., company vehicles, on-site fuel combustion).
  • Scope 2: Indirect emissions from the generation of purchased energy (e.g., electricity).
  • Scope 3: Other indirect emissions from your value chain (e.g., suppliers, product use, waste).

To create a decarbonisation plan, you’ll need to assess all three scopes and pinpoint where the bulk of your emissions come from. While some SMEs may find it challenging to measure Scope 3 emissions, focusing on Scope 1 and 2 is a great start.

2. Set Clear, Measurable Goals

Once you have a clear picture of your carbon footprint, the next step is to set decarbonisation goals. These should be specific, measurable, and aligned with national and international targets, such as the UK’s goal to achieve net zero emissions by 2050.

Some examples of decarbonisation goals include:

  • Reducing energy consumption by a certain percentage over a set period.
  • Transitioning to 100% renewable energy within the next five years.
  • Reducing company vehicle emissions by introducing electric vehicles (EVs).

Setting realistic and time-bound goals will help you stay on track and make your decarbonisation journey more manageable.

3. Implement Energy-Efficient Practices

One of the most effective ways SMEs can decarbonise is by improving energy efficiency. There are several simple yet impactful measures your business can take, such as:

  • Upgrading lighting to energy-efficient LED bulbs.
  • Insulating your premises to reduce heat loss.
  • Installing smart meters to monitor and reduce energy consumption.
  • Switching to energy-efficient equipment (e.g., office appliances, heating systems).

Even small changes can lead to significant reductions in your carbon emissions—and your energy bills.

4. Embrace Renewable Energy

Transitioning to renewable energy is a key part of any decarbonisation plan. SMEs can switch to a renewable energy supplier or consider installing on-site renewable energy sources, such as solar panels, wind turbines, or heat pumps.

If installation is not feasible, choosing a green energy tariff ensures that the energy you purchase comes from renewable sources, which can dramatically reduce your Scope 2 emissions.

5. Engage Your Supply Chain

Decarbonisation doesn’t stop with your own business—it extends to your supply chain. Collaborating with suppliers to ensure they are adopting sustainable practices is crucial, particularly when it comes to reducing Scope 3 emissions.

Ask suppliers about their own decarbonisation efforts, consider working with low-carbon suppliers, and promote transparency throughout your supply chain to help reduce the carbon impact of the products and services you use.

6. Monitor and Report Progress

Decarbonisation is an ongoing process. Regularly monitoring and reporting on your progress helps you stay accountable and adapt your strategy as needed. Many businesses use key performance indicators (KPIs) to track their emissions reductions, and you can include this in your annual reports to show clients and stakeholders your commitment to sustainability.

Additionally, reporting on your progress is a great way to engage your team, customers, and suppliers in your decarbonisation efforts, ensuring that sustainability becomes part of your company culture.

7. Offset Where Necessary

While the goal is to reduce emissions as much as possible, there may be some unavoidable carbon emissions that can’t be eliminated immediately. In these cases, SMEs can consider carbon offsetting, which involves investing in projects that remove or reduce emissions elsewhere, such as tree planting or renewable energy initiatives.

However, it’s important to note that offsetting should complement, not replace, your direct emissions reduction efforts.

The Benefits of Decarbonising Your SME

Reducing your carbon footprint isn’t just about meeting regulatory requirements—it can have significant business benefits:

  • Cost Savings: Energy-efficient practices and renewable energy can reduce your utility bills, while improving resource efficiency can cut operational costs.
  • Enhanced Brand Image: Consumers are increasingly choosing businesses that prioritise sustainability, helping you build a stronger, more loyal customer base.
  • Access to Green Funding: Many investors are now focusing on green businesses. Decarbonising your SME could make you eligible for grants, loans, or other sustainable financing options.
  • Future-Proofing: As more regulations emerge around carbon emissions, being ahead of the curve will ensure your business remains compliant and competitive.

At A&C Chartered Accountants, we understand the challenges SMEs face when developing a decarbonisation plan, but we also know the incredible opportunities it presents. Our team is here to guide you through each step of the process—from assessing your carbon footprint to creating a sustainable, cost-effective plan that benefits both your business and the planet.

Contact us today to learn more about how we can help your SME decarbonise and thrive in a low-carbon economy.

Need more information?

At A&C Chartered Accountants, we’re not just accountants; we’re your partners in success. Based in Manchester, our experienced team handles everything from managing limited company and sole trader accounts to expertly navigating tax returns. Beyond financials, we play a crucial role in driving your business’s growth, strategically steering it towards success with confidence and clarity.

CONTACT US TODAY

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By Katie Business News • Tax 0 Comments

Possible Changes to Capital Gains Tax in the October Budget: What to Expect

With the October budget approaching, many are speculating about potential changes to Capital Gains Tax (CGT), which could have a significant impact on business owners, entrepreneurs, and investors alike. One of the most talked-about possibilities is the alignment of CGT rates with income tax rates – a move reminiscent of the regime under Gordon Brown when he served as chancellor. Given Rachel Reeves’ admiration for Gordon Brown’s approach, we might also see a return to taper relief, which could benefit long-term investments.

At A&C Chartered Accountants, we’re keeping a close eye on the possibility of the reintroduction of Business Asset Taper Relief. This could reduce the effective CGT rate to as low as 10% after 10 years of ownership, encouraging long-term investment and entrepreneurship. However, it’s crucial to remember that any relief could come with stricter conditions, especially if the government tightens eligibility criteria further. Many business owners are hoping that Business Asset Disposal Relief (BADR) – or something similar – is retained, to continue incentivising entrepreneurship and growth.

In addition to these potential changes, there may be further restrictions on Private Residence Relief or adjustments to Hold Over Relief for transfers into and out of trusts. Another controversial change to watch out for is the possible removal of the CGT-free uplift to probate value on death, as previously suggested by the now-defunct Office of Tax Simplification (OTS). This change could mean beneficiaries inherit the deceased’s original CGT base cost, rather than the current probate value – potentially leading to larger tax liabilities upon the sale of inherited assets.

As we await the budget announcement, our team at A&C Chartered Accountants will continue to monitor the situation closely, ensuring we provide up-to-date advice to help you navigate any changes. If you’re concerned about how these potential CGT reforms could affect you or your business, get in touch with us to discuss tailored strategies to mitigate your capital gains tax liabilities.

Need more information?

At A&C Chartered Accountants, we’re not just accountants; we’re your partners in success. Based in Manchester, our experienced team handles everything from managing limited company and sole trader accounts to expertly navigating tax returns. Beyond financials, we play a crucial role in driving your business’s growth, strategically steering it towards success with confidence and clarity.

CONTACT US TODAY

See what our clients say

By Katie Business News • Sustainability 0 Comments

A&C Chartered Accountants earns ‘Good Business Charter’ accreditation showcasing commitment to sustainability

A&C Chartered Accountants, an independent accounting and business advisory firm with offices in Manchester, is proud to announce its accreditation by the Good Business Charter (GBC), further reinforcing our commitment to responsible business practices and sustainable growth.

This notable recognition reflects our dedication to ethical business conduct across all aspects of our work. The GBC accreditation is awarded to businesses that meet ten key components, which focus on critical areas such as employee welfare, environmental impact, and fair treatment of clients and suppliers. By embracing all ten principles, A&C Chartered Accountants ensures that we not only grow our business but do so responsibly, staying true to our values and long-term goals.

Katie Hoszowskyj, Sustainability Lead at A&C Chartered Accountants, expressed her thoughts on this achievement: “Securing the Good Business Charter accreditation is a proud moment for us. It underscores our commitment to putting people, clients, and our community at the heart of what we do. This accreditation reflects our efforts to create a diverse, inclusive, and safe work environment that fosters personal growth and development for everyone at A&C Chartered Accountants.”

For over a decade, A&C Chartered Accountants has been dedicated to operating as a responsible business. We have a dedicated internal team that assesses our environmental footprint and continually implements measures that help us become more sustainable. Our responsible business journey involves encouraging sustainable practices, being accountable for our environmental and social impact, and promoting these principles to our team, clients, and community.

Our sustainability framework is centred around three pillars: reducing environmental impact, enhancing social responsibility, and upholding ethical governance. As we grow, we recognise the need for sustainable expansion, making strategic decisions that benefit not only our business but also the environment and the people we serve.

The ten components of the Good Business Charter that we are committed to are:

  1. Real Living Wage – We pay all our employees a wage that reflects the cost of living, not just the government minimum.
  2. Fairer Hours and Contracts – We ensure secure, stable employment by providing guaranteed hours and avoiding exploitative contracts.
  3. Employee Well-being – We prioritise the mental and physical health of our employees, ensuring they feel supported and valued.
  4. Employee Representation – We give our employees a voice, encouraging open communication and feedback within the business.
  5. Diversity and Inclusion – We promote an inclusive workplace where diversity is celebrated, and everyone is treated with respect and fairness.
  6. Environmental Responsibility – We are committed to reducing our environmental impact, actively working towards more sustainable practices.
  7. Paying Fair Tax – We pay the taxes we owe and commit to full transparency in our tax affairs.
  8. Commitment to Customers – We always act in the best interest of our clients, delivering high-quality services with integrity.
  9. Ethical Sourcing – We ensure our suppliers uphold high ethical standards and that our supply chain reflects our values.
  10. Prompt Payment – We adhere to the Prompt Payment Code, ensuring we pay our suppliers on time and maintain strong relationships.

Achieving GBC status aligns with our wider responsible business goals, having also signed up to the Prompt Payment Code earlier this year. Additionally, A&C Chartered Accountants is proud to be part of a growing group of UK businesses that voluntarily pay the real Living Wage, ensuring that all our staff are paid fairly for their contributions.

Katie Hoszowskyj added, “We believe in working together towards a sustainable future. Whether it’s reducing our plastic usage or aligning our efforts with the UN Sustainable Development Goals, we are committed to transparency and consistency across all our operations. Our partnerships with charities further cement our dedication to social responsibility and giving back to the communities we serve.”

This accreditation by the Good Business Charter marks a pivotal moment in A&C Chartered Accountants’ sustainability journey. As we continue to grow, we remain focused on making responsible decisions, driving profit with purpose, and holding ourselves accountable to our sustainability objectives. Our strategic framework will guide us in fostering a fair, ethical, and inclusive culture, while making sustainable choices at every step.

By Katie Business Advice • Business News • Sustainability 0 Comments

Reducing Your SME’s Carbon Footprint in Manchester: A Guide to Bee Net Zero

Manchester is a city known for its innovation, community spirit, and commitment to sustainability. In recent years, Manchester has set ambitious goals to reduce its carbon emissions, and SMEs are a vital part of that journey. Whether you’re a small business owner in retail, manufacturing, or services, reducing your carbon footprint isn’t just about playing your part in tackling climate change—it’s about future-proofing your business, saving costs, and joining a growing movement of environmentally conscious enterprises.

A&C Chartered Accountants is proud to support Manchester SMEs on their sustainability journey, and one of the key initiatives driving change in the region is Bee Net Zero.

What Is Bee Net Zero?

Bee Net Zero is a collaborative initiative designed to help businesses across Greater Manchester reach net zero carbon emissions by 2038—12 years ahead of the UK’s national target. Spearheaded by the Greater Manchester Combined Authority, in partnership with leading organisations like The Growth Company and Manchester’s business community, the Bee Net Zero initiative provides practical resources and guidance to help local businesses, including SMEs, reduce their carbon footprints.

For SMEs in Manchester, this initiative represents an incredible opportunity to lead the charge in decarbonisation while benefiting from the resources and support that Bee Net Zero provides.

Why Should Manchester SMEs Care About Their Carbon Footprint?

For many small businesses, reducing carbon emissions might feel like a challenge, but it brings significant rewards. Here’s why tackling your carbon footprint matters:

  • Meet Customer Expectations: Consumers and clients are increasingly seeking out businesses that prioritise sustainability. By actively reducing your carbon footprint, your SME can attract a new wave of eco-conscious customers.
  • Stay Ahead of Regulation: With more stringent climate legislation on the horizon, reducing your carbon emissions now means your business will be ahead of the curve when it comes to future compliance requirements.
  • Improve Efficiency & Cut Costs: Lowering your carbon emissions often goes hand-in-hand with improving efficiency. From cutting down on energy use to reducing waste, these changes can have a direct impact on your bottom line.
  • Join the Manchester Movement: By getting involved in initiatives like Bee Net Zero, you’ll be part of a wider community of businesses all working towards a common goal—making Manchester one of the greenest cities in the UK.

How to Start Measuring Your SME’s Carbon Footprint

Before you can reduce your carbon footprint, you need to know where you stand. This begins with calculating the carbon emissions your business generates. The main sources of emissions for most SMEs come from:

  • Energy consumption (electricity, heating, and cooling)
  • Business travel (vehicle emissions, flights, public transport)
  • Supply chain emissions (goods and services purchased)
  • Waste production (waste sent to landfill, recycling)

By gathering data on your energy usage, travel habits, and waste, you can begin to understand your current impact and set measurable goals to reduce emissions. Many Manchester-based businesses are already taking these steps as part of the Bee Net Zero initiative, using free tools and resources provided to track their emissions.

Bee Net Zero: Helping Manchester’s SMEs Lead the Way

The Bee Net Zero initiative offers a range of support services tailored to SMEs, including:

  1. Carbon Footprint Calculators: Bee Net Zero provides businesses with access to tools that help calculate their current carbon footprint, giving you a clear starting point for improvement.
  2. Energy Efficiency Guidance: Through the initiative, SMEs can access energy audits to identify opportunities to improve energy efficiency, reduce waste, and cut down on costs.
  3. Support for Renewable Energy Adoption: Transitioning to renewable energy is one of the most effective ways to decarbonise. Bee Net Zero connects businesses with suppliers and advisors to help switch to renewable energy sources, like solar power, at a manageable cost.
  4. Sustainability Grants & Funding: There are grants and financial incentives available to SMEs that are serious about reducing their carbon footprints. Bee Net Zero partners with organisations that provide financial support to help cover the costs of energy-efficient upgrades and renewable energy installations.
  5. Collaboration Opportunities: Bee Net Zero encourages collaboration across sectors, enabling businesses to share best practices, network, and create partnerships with like-minded organisations.

The Road to Net Zero: Practical Steps for Your SME

If you’re an SME in Manchester, there’s never been a better time to commit to reducing your carbon footprint. Here are some practical steps to get started:

1. Perform an Energy Audit

Identify where your business is using the most energy. This could be lighting, heating, or specific equipment. Once you’ve pinpointed the biggest energy drains, you can take steps to reduce consumption by upgrading to more energy-efficient systems or changing your habits.

2. Transition to Green Energy

Switching to a renewable energy provider is one of the simplest and most impactful ways to reduce your carbon emissions. Many suppliers now offer affordable green energy tariffs that are accessible to SMEs.

3. Encourage Sustainable Transport

Reduce business travel emissions by encouraging the use of public transport, carpooling, or even investing in electric vehicles for your company fleet.

4. Minimise Waste

Implement recycling schemes, reduce packaging, and find ways to repurpose materials within your supply chain. Waste management is a significant part of reducing your overall carbon footprint.

5. Engage Your Team

Sustainability works best when it’s embedded in your company culture. Educate your employees about the importance of reducing emissions and create a workplace that supports sustainable practices—whether that’s through reducing office waste or promoting energy-efficient behaviour.

Need more information?

At A&C Chartered Accountants, we’re not just accountants; we’re your partners in success. Based in Manchester, our experienced team handles everything from managing limited company and sole trader accounts to expertly navigating tax returns. Beyond financials, we play a crucial role in driving your business’s growth, strategically steering it towards success with confidence and clarity.

CONTACT US TODAY

See what our clients say

By Katie Business Advice 0 Comments

Tax-Free Childcare: How Employers Can Offer Nursery Benefits

ax-Free Childcare: How Employers Can Offer Nursery Benefits and Save

With childcare costs continually rising, many UK employers are now providing workplace nurseries or crèche facilities as a tax-free benefit. This can be a highly attractive perk, helping businesses attract and retain valuable staff. Larger employers may set up an on-site nursery, but for smaller companies, partnering with local childcare providers is often more practical and cost-effective.

Tax-Free Childcare Benefits for Employers

Offering tax-free childcare benefits can significantly reduce costs for employees while giving employers a competitive edge in attracting talent. When structured correctly, these childcare schemes can be completely tax-free, but to qualify, businesses must meet HMRC’s key conditions.

1. Financial Responsibility for Tax-Free Childcare

For your nursery provision to be tax-exempt, HMRC requires that employers take an active role in the financing of childcare. This includes covering a proportion of the costs and sharing the responsibility for any financial losses. Simply paying a set fee per child is unlikely to meet the strict requirements for tax-free childcare benefits.

2. Employer Involvement in Nursery Management

To maintain tax-free status, employers must also play a direct role in managing the nursery. This could involve appointing nursery staff or being actively involved in day-to-day decision-making, such as allocating childcare places. Minimal involvement or rubber-stamping decisions won’t meet HMRC’s guidelines for tax exemption.

HMRC Checks on Childcare Schemes

Recently, HMRC has started closely monitoring employer-provided childcare schemes to ensure they meet tax exemption rules. Some third-party intermediaries offer childcare services under salary-sacrifice arrangements but fail to involve employers sufficiently. Without active financial and managerial involvement, employers risk losing the tax-free status of these benefits.

If you are unsure whether your current childcare scheme qualifies for tax exemption, A&C Chartered Accountants can provide expert guidance to help you navigate HMRC’s regulations.

Alternatives for the Self-Employed

For the self-employed or employees whose companies don’t provide nursery facilities, a government tax-free childcare account is a great alternative. This scheme allows eligible parents to save 20% on their childcare costs, making it an appealing option for those not covered by employer-provided childcare benefits.

Contact A&C Chartered Accountants today for more information on tax-free childcare schemes and to ensure your arrangements are fully compliant with HMRC’s regulations

Need more information?

At A&C Chartered Accountants, we’re not just accountants; we’re your partners in success. Based in Manchester, our experienced team handles everything from managing limited company and sole trader accounts to expertly navigating tax returns. Beyond financials, we play a crucial role in driving your business’s growth, strategically steering it towards success with confidence and clarity.

CONTACT US TODAY

See what our clients say