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Just Registered for VAT? You Can Claim Back VAT on Earlier Purchases

  You may be able to reclaim VAT on things you bought before you registered. Many new VAT-registered businesses miss this on their first return. How Far Back Can You Go? The time limit depends on what you bought. Goods: up to 4 years before your registration date. Services: up to 6 months before your registration date. Your effective registration date sets both windows. If HMRC backdates your registration, the earlier date applies. For example, say you register on 1 May 2026. Goods bought from 1 May 2022 may qualify. Services received from 1 November 2025 may qualify. The Goods Rule You must still own the goods when you register. The same applies to goods made from them. Stock you have already sold, scrapped or used up does not qualify. What Evidence Do You Need? You need a valid VAT invoice or receipt for each item. It must show the supplier's VAT number and the VAT charged. Without it, you cannot claim. Where Do You Claim? Claim the eligible VAT as input tax on your first VA...
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Thinking of Starting a Limited Company? Verify Your ID First

  Companies House will not accept a new company until every director has verified their identity. Sort your ID before you file anything. Why ID Comes First Identity verification became a legal requirement on 18 November 2025. For new companies, it is now part of incorporation. Companies House needs each director verified before it registers the company. Step 1: Verify Your Identity You have two routes. You can verify yourself online through GOV.UK One Login, which is free. Or you can use an authorised corporate service provider, such as an accountant. Verification gives you a personal code. Keep it safe, because you will need it for your application. A few small details can cause delays, such as a name that differs between your documents. Check that your details match before you start. Step 2: Have Your Company and Director Details Ready Gather your basic information before you submit the application. That includes your proposed company name, your registered office address and each...
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Government Grants for Small Businesses in 2026

  As a small business owner in 2026, accessing government grants can be a game-changer for growth and innovation. With various funding options available, understanding what’s on offer and how to apply is crucial. This blog highlights the key government grants for small businesses in the UK and how they can benefit you. What Are Business Grants? Business grants are financial awards provided by the government, local authorities, or private entities to help businesses grow or tackle specific challenges. Unlike loans, grants don’t need to be repaid, making them an attractive option for small businesses looking to scale or overcome obstacles. They can cover various areas, including research and development (R&D), workforce expansion, and sustainability projects. Key Business Grants in 2026 Several government grants are available to small businesses in 2026. Let’s explore some of the most relevant options. 1. Innovative Business Grants Innovation is crucial to business growth, and th...
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Working From Home? You Could Be Leaving Money Unclaimed

  Self-employed people have two ways to claim home working costs. The flat rate saves time. The actual cost method can claim more. Compare both before you file. Method 1: The Simplified Flat Rate HMRC sets a fixed monthly amount based on the hours you work from home. You do not calculate a share of your household bills. 25 to 50 hours a month: £10 per month 51 to 100 hours a month: £18 per month 101 or more hours a month: £26 per month You need at least 25 hours a month to use this method. Claim the correct rate for each month, not an average. The flat rate covers your heating, lighting and power. It does not cover phone or internet costs. You claim the business share of those separately. Method 2: The Actual Cost Method Here you claim the business share of your real home running costs. These include gas, electricity and water. You also claim the business share of your phone and broadband. You work out the share using a fair basis, such as the rooms and hours you use for work. ...
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Why Every Business Needs a Shareholders Agreement

  Starting a business with partners requires trust, but what happens when disagreements arise? Differences over profits, business decisions or ownership can quickly affect even the strongest partnerships. A shareholders agreement helps UK business owners avoid these problems by establishing clear rules from the beginning. Although it is not legally mandatory for most companies, it can provide valuable protection for shareholders. What Is a Shareholders Agreement? A shareholders agreement is a private legal contract outlining shareholders' rights, responsibilities and arrangements for managing their business. Unlike the Articles of Association, which Companies House makes publicly available, a shareholders agreement generally remains confidential. It allows shareholders to establish specific arrangements that reflect their business needs. Why Is a Shareholders Agreement Important? A properly drafted agreement helps protect shareholders and maintain business stability. Its main benef...
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Choosing the Flat Rate VAT Scheme Just Because It's Simpler? It Could Cost You More

  The Flat Rate Scheme reduces admin, but it can raise your VAT bill. If your business buys a lot of VAT-rated items, the standard scheme may leave you better off. How the Flat Rate Scheme Works You still charge customers VAT at the normal rate. You then pay HMRC a fixed percentage of your VAT-inclusive turnover. You do not calculate VAT on each purchase, which saves time. The Catch: The Percentage Ignores Your Costs HMRC sets your percentage based on your trade. Your actual spending does not change it. Under the standard scheme, you reclaim VAT on business purchases. Under the Flat Rate Scheme, you generally cannot. Your fixed percentage is meant to cover that gap. If your costs are high, it often does not. Who Loses Out Most Businesses that regularly buy stock, materials or equipment feel this most. Each purchase carries VAT you could normally recover. On the Flat Rate Scheme, you lose that recovery. There is one exception. You can reclaim VAT on a single capital asset costing £2...
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Could a Mansion Tax Apply to Your Property?

  The phrase “mansion tax” has gained attention in recent years whenever changes to property taxation are discussed. However, privately owned homes in the UK are not currently subject to a separate annual mansion tax. Instead, the government has announced the introduction of the High Value Council Tax Surcharge (HVCTS) from April 2028 , which could affect owners of high-value residential properties in England. What Is the High Value Council Tax Surcharge? The HVCTS is a new charge that will apply to qualifying residential properties valued at £2 million or more . The surcharge will operate alongside the existing council tax system rather than replacing it. This means affected homeowners will continue paying their normal council tax while also paying the additional charge. The proposed annual surcharge will depend on the property value: £2,500 for properties valued between £2 million and £2.5 million; £5,000 for properties valued between £2.5 million and £5 million; £7,500 for ...
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