An extension of the Making Tax Digital programme, the benefits of being in nature and a £2billion grant for new housing
Today we talk about the extension of the Making Tax Digital to encompass small businesses, as Easter approaches we discuss the benefits of being in nature and good news as £2billion is pledged for new housing.
Making Tax Digital for Income Tax regime extended to smaller businesses
The Spring Statement announced that Making Tax Digital for Income Tax (MTD for IT) regime will be further extended to smaller businesses.
Read on to see how and when your business might be affected.
What is MTD for IT?
Making Tax Digital for Income Tax (MTD for IT) is a government initiative that requires self-employed individuals and landlords with income over a certain limit to keep digital records and submit quarterly tax updates to HM Revenue and Customs (HMRC) using compatible software.
Who does MTD for IT apply to?
These rules are mandatory and come into effect from 6 April 2026 for sole traders and property landlords who generated trade and rental income of more than £50,000 in the 2024/25 tax year.
This income threshold will then drop so that sole traders and property landlords with income of more than £30,000 in the 2025/26 tax year will be brought into MTD for IT from 6 April 2027.
The Spring Statement has now confirmed that this threshold will be reduced further so that sole traders and property landlords with income over £20,000 in 2026/27 will have to comply with the rules from 6 April 2028.
MTD for IT will also affect how tax returns are submitted
It has also now been confirmed that if you are required to use MTD for IT, your end-of-year tax return must also be submitted using MTD-compatible software. It won’t be possible to use a free HMRC online service.
What can you do?
This may be a big adjustment in the way you keep your accounting records. Please feel free to get in touch if so. We would be happy to provide advice, recommendations and training, if needed, so that you can meet this new requirement with the minimum hassle and stress.
Could Embracing the Great Outdoors Add to Your Business Success?
With the Easter holidays fast approaching, children and their families in Cornwall are being encouraged to embrace the great outdoors through Wild Wellbeing workshops. Organised by Natural England in collaboration with the NHS Cornwall Mental Health Support Team, Cornwall Wildlife Trust, and the National Trust, these workshops are designed to promote mental wellbeing by fostering a deeper connection with nature.
This initiative aligns with growing research showing that time spent in nature can have profound effects on mental and physical health. But while these workshops are targeted at children and their families, the benefits of nature are just as relevant for business owners.
The Business Benefits of Being in Nature
Running a business can be stressful, with long hours, financial pressures, and the ever-present demands of managing employees and customers. However, incorporating nature into your daily routine and business practices can have a transformative impact on your wellbeing and productivity. Here’s how:
- Boosts Mental Clarity and Creativity: There are studies that indicate that spending time in nature can help improve cognitive function and creativity. A walk in a green space could help clear your mind, allowing you to approach business challenges with fresh perspectives and innovative solutions.
- Reduces Stress and Enhances Wellbeing: Studies have also found that being in nature seems to help lower cortisol levels, the hormone associated with stress. Whether it’s a short break outside or a weekend retreat in the countryside, finding a way to give yourself regular exposure to green spaces could help you manage stress more effectively.
- Encourages Mindful Leadership: The NHS Five Ways to Wellbeing initiative—Connect, Take Notice, Be Active, Keep Learning, and Give—aligns well with principles of effective business leadership. Taking notice of your surroundings, practicing gratitude, and fostering meaningful connections with colleagues can lead to a more positive and productive work environment.
How Business Owners Can Incorporate Nature Into Their Routine
If you’re looking to integrate the benefits of nature into your business lifestyle, here are a few practical ideas:
- Outdoor Meetings: Instead of holding every meeting in a boardroom, take a walking meeting in a nearby park. Fresh air and movement can lead to more engaged discussions and creative problem-solving.
- Workplace Green Spaces: If possible, create a green space within your office environment—whether it’s indoor plants, a small garden, or an outdoor seating area.
- Encourage Outdoor Breaks: Encourage employees (and yourself) to step outside for breaks, even if it’s just for a few minutes to reset and recharge.
- Team Retreats in Nature: Consider organising team-building activities in natural settings, such as hiking trips, wellness retreats, or conservation volunteering days.
- Flexible Working for Outdoor Time: If you have the flexibility, schedule work-from-home days where you can work in a garden or take advantage of natural surroundings.
A Natural Path to Business Success
Embracing nature isn’t just about personal wellbeing—it’s also about fostering a positive and sustainable business culture. By making small but intentional changes, you can enhance your own productivity and create a healthier, happier workplace for your team.
So, as Cornwall’s children head outdoors to connect with nature in the holidays, why not take inspiration and explore how the natural world can support your business journey?
Lessons for Business Owners from Ant Middleton’s Director Ban
The recent disqualification of television personality Ant Middleton and his wife, Emilie Middleton, as company directors provides valuable lessons for business owners. Their company, Sway and Starting Limited, failed to pay over £1 million in taxes, despite receiving more than £4.5 million in income. The company eventually went into liquidation, with a significant overdrawn director’s loan account.
This case highlights key financial and legal responsibilities that business owners should keep in mind to avoid similar issues.
1. The Importance of Paying Taxes on Time
A key issue in this case was the failure to pay VAT and corporation tax, despite the company having sufficient income. It probably goes without saying that meeting tax obligations is an essential part of running a business, and as this case shows, failing to do so can lead to penalties and restrictions on future directorships.
Lesson: Ensure that tax liabilities are calculated correctly and paid on time. Working with a qualified accountant or tax advisor can help keep your business compliant.
2. Manage Director’s Loans Responsibly
The company’s financial difficulties were compounded by a substantial director’s loan account that added to the financial strain of the business.
Lesson: If you take money out of your business as a director’s loan, ensure that the amount does not put the business under financial strain and that it is properly recorded, repaid in a timely manner and is in line with legal and tax requirements.
3. Understanding Director Responsibilities
As directors, Ant and Emilie Middleton had a duty to ensure the company met its financial obligations. Their disqualification highlights the importance of understanding and fulfilling these responsibilities.
Lesson: Directors should be aware of their legal obligations and ensure they act in the best interest of the company. This isn’t something you have to tackle on your own. Professional advice and training from firms such as ours can help in navigating these duties effectively.
4. The Importance of Sound Financial Management
The company had strong revenue figures, but it appears that the finances were mismanaged. This can happen even unintentionally in a business where there’s a lack of information or discussion about the finances. Taking proactive steps to manage business finances effectively can help avoid difficulties in the future.
Lesson: As a director, you need to make sure that detailed financial records are kept. Regularly reviewing financial reports will help you to see how the business’ finances are doing and spend funds responsibly. Establishing strong financial controls so that you don’t overspend can support long-term success.
Final Thoughts
This situation serves as a reminder of the importance of financial responsibility and regulatory compliance in business. By maintaining good financial practices, meeting tax obligations, and understanding director responsibilities, business owners can help ensure the smooth running of their companies.
If you need any help with your responsibilities as a director, or would like assistance with a financial system that provides you with the information you need to better manage your business, please get in touch. We would be happy to help you!
£2 billion Grant Funding for 18,000 New Social and Affordable Homes
Construction sector businesses welcomed the announcement made by the Chancellor and Deputy Prime Minister that the government will be making a £2 billion investment for the building of 18,000 new social and affordable homes.
Sites available for development in Manchester and Liverpool may be the first to benefit from the funding, the majority of which will be spent in 2026/27. Projects being helped by the funding will need to have started by March 2027 and finish by June 2029.
The investment is an initial step ahead of more long-term investment that is currently being planned. The government has said they will set out the full funding for 2026/27 and beyond at the Spending Review later in the year.