Changes to planning rules for housebuilders, review of whether to pay a bonus as a salary or dividend, and tech guidance from the NCSC
There’s good news for small to medium-sized housebuilders as the government aim to change planning rules to reduce red tape, we weigh up the pros and cons of paying yourself a bonus as part of a salary or dividend, and we share top tech guidance from the NCSC.
Changes to Planning Rules Could Make Life Easier for Small Housebuilders
The government has set out new plans aimed at helping small and medium-sized housebuilders get projects moving faster and with fewer hurdles. For housebuilders that have found themselves stuck in a slow, expensive planning process for a small site, these changes might be of interest.
What’s Changing?
Right now, building a site of 10 homes can involve the same level of planning red tape as a site with 100. That’s long been a frustration for smaller developers, and it’s one of the things this package of reforms is trying to fix.
The proposals include plans for small developments (up to nine homes) to benefit from faster decisions made by planning officers, rather than going through a full planning committee. Some of the biodiversity requirements will also be simplified, which should reduce costs and paperwork.
For slightly bigger sites (10 to 49 homes), there’s a new middle category being proposed. These ‘medium’ sites may be exempt from things like the Building Safety Levy and will face more straightforward rules around biodiversity and other requirements.
What Else Is on Offer?
The government has also announced further support it intends to provide to make it easier for smaller firms to access land and finance. Plans include:
- More land being released specifically for small and medium builders through Homes England.
- A new National Housing Delivery Fund to support long-term finance options.
- £100 million in SME Accelerator Loans from the Home Building Fund, aimed at helping small firms grow and invest.
- A pilot project in Bristol, Sheffield and Lewisham to unlock small, awkward bits of land that often get overlooked, with a focus on delivering affordable homes.
There’s also extra funding for councils to speed up environmental assessments and to support innovation in small site delivery, and a consultation on reforming planning committees has also been announced.
What Does This Mean for You?
If you’re running a small building firm or planning a development on a modest site, you may be able to look forward to:
- Applications going through more quickly, especially for smaller projects.
- Some costs and regulatory barriers easing, particularly around biodiversity and safety levies.
- More realistic opportunities to bring smaller or trickier plots into use, including ones that previously didn’t stack up financially.
Of course, a lot still depends on how these changes are rolled out locally and whether the promised funding and support are easy to access in practice.
What You Might Want to Do Next
It could be a good time to review any sites you’ve written off in the past – some may become more viable if planning becomes less of a slog.
Take a look at where you currently stand financially, particularly in terms of your access to finance for development projects. You might want to:
- Review your existing borrowing or credit arrangements.
- Assess whether you’ll need additional finance to get a project moving.
- Look at your eligibility and readiness to apply for schemes like the SME Accelerator Loans.
The idea is to make sure you’re in a good position to move quickly as and when funding opportunities open up – for example, by having updated accounts, a clear business plan, or some potentially viable sites in mind. The new funding routes may move fast or be competitive, so being prepared could make a difference.
If you’d like a second opinion on how these changes might affect your business or some help reviewing your financial position, feel free to get in touch and we’d be happy to have a chat.
See: https://www.gov.uk/government/news/government-backs-sme-builders-to-get-britain-building
Bonus as Salary or Dividend: Which Pays Off?
If you run your own company, you might have the option to take a bonus either as salary or as a dividend. But which one leaves you better off?
The answer depends on several factors: how much profit your company has, your existing income, the current rates of tax and National Insurance, and whether you’re taking advantage of available allowances.
Salary: Pros and Cons
Taking a bonus as salary means it’s taxed through PAYE, with income tax and National Insurance deducted at source. It can boost your pension contributions and improve borrowing power (e.g. for mortgages), but it may also push you into a higher tax band.
Dividend: Pros and Cons
Dividends aren’t subject to National Insurance and are often a more tax-efficient way of taking money out of a company. However, they can only be paid from company profits after corporation tax. Also, the tax-free dividend allowance has now been reduced to £500, so more of the dividend is now taxable than in the past.
So, which is better?
It depends. Sometimes it makes sense to mix both to strike the right balance between tax efficiency and personal financial goals.
We use tailored calculations and up-to-date tools to help clients compare the actual take-home pay of different options. What works best for one director-shareholder might not be right for another.
If you’re thinking about taking a bonus, we can help you work out the most tax-efficient way to do it, based on your company’s situation and your personal plans.
Get in touch if you’d like us to run the numbers for you.
Why You Shouldn’t Ignore Old Tech: New Guidance from the NCSC
The National Cyber Security Centre (NCSC) has released new guidance on how to properly retire old digital systems and devices – a process known as decommissioning. The guidance is aimed at IT teams, but there are useful takeaways for any small business that uses computers, software or online systems.
Why this matters
With so many demands on our time, it can be easy to leave old laptops or devices lying around when they’re no longer needed. But old tech can quietly become a security risk. It might still hold sensitive information or give someone a way into your systems without you realising it.
The NCSC says that getting rid of old systems safely is just as important as setting them up in the first place.
What should you do?
Here are some key tips from the guidance:
- Don’t wait until the end: Plan ahead. If you’re buying new systems or changing software, think about how and when you’ll stop using the old one.
- Keep track of what you use: Make a basic list of your computers, software and devices. This helps you stay in control, especially if you’ve tried out different tools over the years.
- Back up your data: Before getting rid of any computer or online service, save a full copy of the important data. This includes documents, emails, passwords, and anything you might need to recover later.
- Wipe data properly: If you’re planning to sell, donate, or throw away an old device, make sure you clear all data first. A factory reset often isn’t enough. Look up how to securely wipe a device or ask someone to do it for you.
- Check it’s really gone: If you’ve used someone else to help dispose of a device, ask for proof it was wiped properly. If you’ve done it yourself, keep a note of what you did and when – that may help if you encounter problems in the future.
Final thought
You don’t need to be a tech expert to take simple steps that protect your business. The NCSC’s guidance is a good reminder that old systems aren’t just clutter – they can be a risk if they’re not dealt with properly.
If you’re not sure where to start, make a list of the tech you use now, and think about what’s no longer needed. That’s often the first and most important step.
You can find more detail on the NCSC website if you’d like to explore further.