Advice on choosing accounting software, online pricing is placed under the spotlight, and a warning for seasonal sellers
Today’s blog post gives small business owners advice on choosing an accounting system which fits their business needs, the CMA crack down on how retailers set online prices, and HMRC give a stark warning for Christmas seasonal sellers.
Choosing the Right Accounting System for Your Business
For many sole traders and small business owners, reviewing their accounting system only happens when something forces the issue. For instance, many sole traders are currently looking at whether their accounting system meets the requirements for Making Tax Digital for Income Tax.
However, even without a regulatory change, reviewing your accounting systems can yield benefits. The right system can save you time, reduce errors and give you better insight into your business’s finances.
Here are some practical points to consider.
1. Identify Your Needs
Think about what you or your team handle most often. Is it invoicing, logging expenses, monitoring cash flow, or perhaps tracking stock or projects.
You might only need some basic income and expense recording. On the other hand, features like invoice reminders, payment links in invoices, or job costing could be useful to you.
It’s often easier to start by listing your everyday tasks before you look at what software can do.
2. Consider Cost, but Think in Terms of Value
The cheapest option is not always the most effective if it slows you down. A slightly higher monthly fee could be worth it if it saves you work and time.
Ease of use can add a lot of value, too. Simple screens, clear menus and good support can all make day-to-day bookkeeping much less of a chore.
3. Automation and Integrations
Modern software can take care of many repetitive tasks. For instance, importing bank transactions, sending reminders, capturing invoice and receipt details can all be done by software.
If you use e-commerce platforms, job management tools or card payment services, software that can connect to them can save you time by eliminating the need to enter information twice.
4. Planning for Growth
If you expect your business to grow, consider whether the system can grow with you. Some entry-level tools are perfect for start-ups but become limiting once staff, stock or more complex invoicing are involved.
5. Plan for the Switch
Changing accounting systems can be disruptive; however, many platforms offer setup wizards, data import tools and clear guidance that can make the transition easier than you might expect. Choosing to switch at the start of a new financial year can make the process a lot smoother, too.
Choosing the right accounting system is not just about compliance or day-to-day record keeping – it’s an opportunity to make your business run more smoothly and give yourself clearer insight into its financial health.
If you would like help reviewing your current accounting system or recommending options that would suit your business, please feel free to contact us at any time. We would be happy to help you!
CMA Launches Major Consumer Protection Drive on Online Pricing
The Competition and Markets Authority (CMA) has announced a number of actions it is taking to improve price transparency and tackle misleading online sales practices. This is the first major use of its new powers under the Digital Markets, Competition and Consumers Act 2024 (DMCCA), which came into force earlier this year.
The CMA has conducted a cross-economy review of more than 400 businesses in 19 sectors. The review highlighted concerns in 14 sectors, particularly around drip pricing and the use of misleading countdown timers.
Focus on online pricing practices
The CMA has opened investigations into eight named businesses due to concerns about a lack of transparency over additional fees, the use of misleading time-limited offers and automatically opting customers into optional charges.
The businesses under investigation are StubHub, viagogo, AA Driving School, BSM Driving School, Gold’s Gym, Wayfair, Appliances Direct and Marks Electrical. At this stage, the CMA has not reached any conclusions as to whether consumer law has been breached.
These investigations are the first to use the CMA’s strengthened consumer enforcement powers. These new powers allow the CMA to determine breaches itself rather than going through the courts. Where appropriate, the CMA can impose fines of up to 10% of global turnover and order compensation be paid to affected consumers.
Wider compliance concerns across the economy
Based on their compliance review, the CMA is also sending advisory letters to 100 businesses across a wide range of consumer-facing industries, including travel, transport, homeware, fitness, event tickets, delivery services, fashion and online voucher providers.
These letters put the recipient businesses on notice to review their pricing and sales practices and bring them into line with the law and the CMA’s guidance.
The CMA has said it will continue to engage with these businesses and may take further enforcement action if problems persist.
New guidance on price transparency
Alongside this enforcement activity, the CMA has published finalised guidance to help businesses understand and comply with the rules on price transparency.
While the DMCCA introduces new obligations, many forms of drip pricing have been prohibited for years under earlier consumer protection legislation. These include failing to include compulsory charges in the headline price or introducing unavoidable fees only at checkout.
The new guidance aims to clarify expectations around transparent pricing, the presentation of fees, the use of sales claims and other online selling practices.
Next steps
There is no fixed legal deadline for the CMA to conclude its investigations. Cases may lead to formal findings of unlawful conduct, remedies or, in some instances, closure without further action.
Given the scale of the review and the strength of the CMA’s new powers, further enforcement activity seems likely.
If you sell to customers online, it may be worth treating this as an opportune time to review your pricing information to ensure it complies with the new guidance.
To review the price transparency guidance, see: https://www.gov.uk/government/publications/price-transparency-cma209
HMRC Reminds Seasonal Sellers to Check Tax Obligations
As the festive season approaches, HM Revenue & Customs (HMRC) is urging anyone who earns money from Christmas crafts, seasonal market stalls, or selling festive items to check whether they need to report their earnings for last year.
HMRC’s “Help for Hustles” campaign highlights the importance of understanding when extra income becomes taxable.
While selling personal belongings from a clear-out generally does not need to be reported, making or selling items for profit – such as handmade decorations, upcycled furniture or running a seasonal market stall – may be subject to tax.
What You Need to Know
Anyone who earned more than £1,000 from side hustles in the 2024-2025 tax year will need to:
- Register for Self Assessment as a sole trader.
- File a tax return.
- Pay any tax due by 31 January 2026.
The £1,000 threshold applies to all trading income combined. For example, someone earning £600 from craft sales and £500 from content creation would need to register, as their total income exceeds the threshold.
If you would like personalised advice on whether you need to file a tax return, please give us a call. We would be happy to help you!
Stop! Think Fraud Campaign Launched
The National Cyber Security Centre (NCSC) has launched a campaign to help individuals and small businesses stay secure online.
With the festive season approaching, including the Black Friday sales, the potential for scams increases. For instance, scammers may claim that an offer is only available for a limited time or that products are scarce in order to manipulate people into acting quickly without thinking. Delivery scams are also popular.
Data from the City of London Police suggests that around £11.8 million was lost last year, between 1 November 2024 and 31 January 2025, to online shopping fraud.
How Can You and Your Staff Stay Safe?
The campaign encourages you to take the following four precautions:
- Check that the shop is legitimate.
- Secure your important online accounts, using two-step verification where possible.
- Check out and pay securely.
- Beware of delivery scams. Check a request is genuine by contacting the organisation directly.
To review the campaign advice in full, see: https://www.ncsc.gov.uk/news/stay-alert-to-holiday-shopping-cyber-scams