Here’s how to work out your tax residence status, what it means for your tax bill, and how to avoid being taxed twice on the same income.

Understanding UK tax residency

A general rule of thumb is that if you spend 183 or more days in the UK in a given tax year, you are a UK tax resident – no questions asked.

But even if you spend less time here, you can still be caught by the Automatic UK Tests.

• The Home Test: If you have a UK home available for 91 days or more in a row and you spend at least 30 days in it, you could be classed as a resident. This applies if it’s your only home, or if you have an overseas home but spend fewer than 30 days a year in it.
• The Full-Time Work Test: If you work full-time in the UK over a 365-day period that overlaps with the tax year, this can also make you a resident. To trigger this, more than 75% of your ‘substantial’ work days (days where you work more than 3 hours) must be spent in the UK.

If none of these tests give a clear answer, HMRC uses the ‘Sufficient Ties’ test.

This looks at your connections to the UK – such as family living here, available accommodation, or work, and weighs them against the number of days you’ve spent in the country.

It works on a sliding scale – the more ties you have, the fewer days you can spend in the UK before you are classed as a resident.

Paying UK tax while freelancing abroad

If you find that you are in fact considered a UK tax resident, you most likely need to pay UK tax on all your income.

This rule applies even if some of your freelance income comes from clients based in other countries.

You’ll have to declare worldwide income through your Self Assessment.

Paying tax in another country

On the other hand, if you’re not considered a UK tax resident, then you’ll probably only need to pay UK tax on the portion of your income you earn in the UK.

You’ll still need to pay tax on your foreign income to the local tax authorities, though, so make sure you’ve done your homework and understand the tax rules for that country.

Conducting thorough research into the country you’re planning to move to is also just a generally good idea, as it will allow you to take advantage of any unique marketing points, and also connect with potential new clients.

If you’re feeling a little lost, an accountant can help simplify the different tax rules for you, and they can also help when it comes time to submit your returns.

Avoiding double taxation

If you pay tax in another country, you may be able to offset this against your UK tax return, so you don’t end up paying tax on the same money twice.

This is possible if the other country has a double-taxation agreement with the UK.

To make sure you have all the information you need (and pay the right tax to the right authority), it’s imperative that you keep detailed and accurate freelancing records.

Bookkeeping is the practice of recording all your transactions (coming in, going out, and moving from one part of your business to another) to help you stay on top of your finances and see where you’re earning.

It not only keeps you compliant but also gives you clarity and control over your freelance career.

Key things freelancers should consider before travelling

Keeping good records

Good bookkeeping software streamlines your record-keeping while you’re on the move, saving you valuable time (which you’ll no doubt need when travelling).

Online accounting is entirely remote based too, meaning you can access your records anywhere you have an internet connection – ideal for digital nomads who don’t want to stay in one place for too long.

Permission to work

It’s also worth looking into your destination’s visa and work permit rules before you go, since “remote work” doesn’t automatically mean you’re allowed to freelance there long-term. Some countries require a specific digital nomad visa, even if you’re only working for UK or other overseas clients.

Track your travel

Keep a record of your travel dates too. Since UK tax residency often comes down to day counts, knowing exactly when you entered and left the UK (and other countries) will make it much easier to work out your status if HMRC ever asks.

Communications

You’ll also want to make sure you maintain good communication with clients while on your travels, as some may feel more comfortable if they know your general whereabouts and current time zone.

And hire an accountant!

And lastly, don’t hesitate to contact an accountant if anything feels unclear – even if you’re travelling.

They’ll be able to help you work out exactly what you owe (and where), and also ensure you’re being as tax-efficient as possible.

 
Find more help in our online accounting hub, and learn more about how to find the right accountant for your business.

The post Freelancing and Travel – Do I Still Have To Pay Tax in the UK? appeared first on The Cheap Accountants.

Many business owners either don’t know what to ask or feel awkward asking “stupid” questions. Here’s the thing, though: there are no stupid questions when it comes to accounting – especially when it’s your money at stake.

It’s also easy to get a bit complacent once you have an accountant, thinking they’ll just take care of everything for you.

Don’t fall into this trap.

Instead, you want to try and maintain an active role in the management of your business’s finances.

As a starting point, we’ll look at some of the best questions to ask your accountant to make sure you stay in the loop and on top of everything.

Is my current business structure tax efficient?

Your business structure is simply a way of classifying the legal status of your business for tax purposes.

For example, operating as a sole trader means there’s no legal distinction between you and your business. A limited company, on the other hand, is a separate legal entity.

Choosing the right business structure is perhaps the most important decision you’ll make, impacting how the business operates, as well as how much tax you need to pay.

Choosing what’s best for you depends on your individual circumstances.

For example, if you’re a sole trader with a high profit margin, it may be more tax-efficient to switch to a limited company so you can pay yourself a mixture of salary and dividends.

An accountant can take away the stress and break down the pros and cons based on your specific circumstances. They’ll also look at things like whether you have a high or low risk business for liability purposes.

If it turns out you do need to switch, they can walk you through the process.

What taxes do I need to pay?

The simple answer is, it depends.

Your accountant will make you aware of all your tax obligations, which vary depending on your business structure. So it’s a good question to ask.

As an example, sole traders pay Income Tax on their self-employed income, whereas in a limited company, the profits stay in the business until you pay them to yourself (e.g. in the form of a tax-efficient salary if you’re a company director). You can also pay yourself in dividends, if there’s available profit within your business.

Evidently, it can all get a bit convoluted, which is why having an accountant on hand is so helpful!

Do I need to register for VAT?

Value Added Tax (VAT) is a type of sales tax on all products and services deemed non-essential by HMRC.

If you’re a business owner, you only need to worry about it when your VAT taxable turnover reaches the £90,000 registration threshold in any 12-month period.

Now, some businesses choose to register for VAT voluntarily (to either start reclaiming it or simply to boost the business’s reputation), but be sure to speak to your accountant before making a decision on this.

What financial records do I need to keep?

Good record keeping is essential – both for HMRC compliance and managing your business.

Your records will generally show every transaction that happens in the business, and this allows you to track your spending.

At a minimum, you’ll need to keep records of your:

• Business expenses
• PAYE records (wages, tax, and National Insurance deductions)
• VAT records
• Financial documents (balance sheets, cash flow statements, and forecasts)

With Making Tax Digital (MTD) slowly being rolled out, it’s more important than ever to start keeping digital records using special purpose-built software.

Records also need to be kept for a specific period of time after submission, and your accountant can advise you on how long exactly, as it’s different for everyone.

How can I make my business grow?

First and foremost, you’ll want to set clear and actionable goals for yourself in both the short and long term.

Plan ahead (especially in the early days), and make sure you understand all of your tax obligations so you don’t get caught out.

It’s important to remember that a good accountant is more than just a tool to help you stay compliant.

They can also give input on things like cash flow management, tax efficiency, and your overall growth strategy.

Are there any upcoming changes I should know about?

Tax laws and regulations are constantly changing.

For example, the standard multiplier for business rates has decreased from 55.5p to 48p in 2026/27, and the minimum rate per hour for employees 21 or older has increased from £12.21 to £12.71.

These changes were announced as part of the 2025 Autumn Budget.

It’s part of your accountant’s job to keep you informed, but there’s no harm in asking directly if there’s anything you’re unsure about.

 
Find more help in our online accounting hub, and learn more about how to find the right accountant for your business.

The post Questions to Ask Your Accountant appeared first on The Cheap Accountants.

Not only do you want to try and find the right person, but you should also make doubly sure that you actually need to be hiring someone new in the first place – especially if you’re a small business where every penny matters.

If you do decide you need to hire someone, you need to consider things like where to find your candidates, how much you want to pay them, and if you want to offer any perks.

We’ll break all of this down for you, and even explain what to do if a candidate makes a counter offer.

Identify the need for a new hire

It can sometimes be obvious that you need to begin the process of finding someone new. For example, if a previous employee hands in their notice.

For smaller businesses this can difficult to avoid, and talent retention can be a struggle if you’re up against bigger companies offering higher salaries. This means you may have to face the reality that people will come and go – at least until you grow your business to a point where you can offer clear progression.

Other times, it’s less obvious that you need to take on new staff.

You may just notice that your workload is getting a bit much, or that employees are missing deadlines. These can be indicators that it’s time to start looking for help.

It’s important to think about the long-term. If work is heavy at the moment because of a specific deadline or project, but this isn’t expected to last, then it may be better (and more cost-efficient) to outsource instead.

If that isn’t the case, and it’s busy around the clock – it’s time to look for your new hire.

Define the role clearly

Once you’ve decided you need to recruit, write up a clear job description which can be used to help advertise the role. This should outline things like:

• Key responsibilities
• Required skills and qualifications
• Experience level

You’ll also want to explain the reporting structure, as well as what success might look like in the role.

Lastly, if there are any particular benefits or perks to working in your business, be sure to list these too, as they may help entice potential candidates. An example might be free parking, or a catered lunch.

Determine salary and employment terms

The next thing to do is undertake some market research into average salary levels for the kind of job you’re looking to fill.

You’ll need to decide on the following:

• Salary range
• Benefits and incentives
• Working hours and flexibility
• Contract type (e.g. full-time, part-time, temporary, or freelance)

Again, if your resources are limited then you may need to place more emphasis on something like flexibility in order to still appear like an attractive option.

Choose where to advertise the role

Conduct more research and figure out which channels or sites will allow you to reach your target demographic.

Examples include job boards like Indeed, professional networks like LinkedIn, recruitment agencies, social media, and of course your own company website so that people can apply directly.

Internal referrals can be another good option given that an employee is unlikely to risk their reputation by referring someone who isn’t a good fit.

Conduct interviews

After drawing up a shortlist of suitable candidates, looking for both technical ability and also cultural fit, you can start the process of interviewing them.

Try to prepare structured interview questions, and in the interview itself, assess such things as the candidate’s skills and experience, problem-solving ability, and their alignment with your company’s values.

Don’t be afraid to hold multiple interview stages if necessary, and do your due diligence as an employer: contact previous employers or professional references, confirm the candidate’s employment history, etc.

You really don’t want to get this decision wrong, so feel free to take your time.

Make an offer

Think you’ve found the one?

Great.

Make them your best possible offer, including things like the salary, start date, and contract details.

Now, when you interview somebody for a job vacancy and offer them the role, they might sometimes respond with a counter offer, so be prepared to negotiate.

Their counter offer could be regarding hours, location, or responsibilities – but let’s be real: it’s usually about pay.

This may have always been their intention, and now that they know you’re interested in hiring them, they feel emboldened enough to try their luck.

Ultimately, it’ll be up to you to decide whether it’s worth it. You could come to an agreement with them. Say, for example, they’re asking for £5k more; you might agree, once they’ve completed their probation period.

Onboard the new employee

All that’s left is to provide a structured induction for your new hire, introducing them to the team and company processes. If it’s your first hire, make sure you’re registered for PAYE, and you understand how payroll works (when it comes to deducting things like NI and income tax).

Reiterate your expectations of them and even set some early goals to get things started.

Of course, you should also make yourself available to offer support and guidance during the early stages.

Before you know it, they’ll be part of the team!

 
Find more help in our online accounting hub, and learn more about how to find the right accountant for your business.

The post How to Recruit Someone to Your Business appeared first on The Cheap Accountants.

Failure to comply can result in content being pulled from the platform or even a permanent ban, so the impact can be significant if you’re a small business looking to invest in social media or influencer marketing.

We’ll look at what the latest guidelines mean for you, and how you might even capitalise on them. Let’s jump in.

What are TikTok’s content guidelines?

TikTok’s policies reflect the requirements of the European Digital Services Act, which is in place for Very Large Online Platforms (VLOPs) with over 45 million monthly users in the EU.

We’ll cover the three main areas one by one, starting with the most timely.

AI-generated content

So-called “deepfakes” are facing the strongest crackdown. In short, all AI-generated content (including images, audio, and video) must be clearly labelled to avoid confusion.

Deepfakes are media generated by AI to depict someone saying or doing something they never actually did. For example, a deepfake will clone a celebrity or politician and then use this to manipulate their audience.

If your business does use AI-generated content, you must indicate this by applying the label “AI-generated content”. This not only safeguards you against compliance violations, but also builds trust with your audience.

LIVE streaming

Creators are expected to take responsibility for their content, making sure it adheres to strict advertising standards when promoting products and/or services in real-time.

For example, much like with AI-generated content, ads and sponsors must now be labelled or demarcated in some way.

There are also strict rules around what you can and can’t advertise, too. For example, you’re usually prohibited from promoting high-risk, age-restricted goods – like tobacco or adult services. Advertising alcohol also comes with strict rules that include age-gating and business authorisation.

Eligibility to go live has also become stricter, with only users aged 18 and above being allowed to do this and monetise streams.

What this means for you is extra due diligence when working with any creators or influencers, including ensuring they are 18 or older, and following TikTok’s guidelines.

Transparency and safety

The responsibilities creators have also include taking care around misinformation and trends that TikTok deems unsafe or even harmful, such as misleading health or financial advice.

Increased responsibility also means increased accountability, and as the business running the campaign, the buck ultimately stops with you. Vet potential partners, and only work with people who are eligible and demonstrate compliance.

What your marketing team needs to know

Let’s look at some numbers.

• Upwards of 30 million people in the UK now use TikTok
• Over two-thirds (67%) of UK brands run influencer marketing campaigns on the platform

As such, compliance with the new rules shouldn’t just be treated as a formality; it can actually give you a strategic advantage over your competitors, allowing you to grow your reach and ultimately expand your client base.

Finding your target audience

Running a social media page of any kind will require a time investment in order to make it worthwhile, and so you want to ensure you’re on the same platform as the people who would be interested in what you have to offer.

This is where it’s useful to consider whether or not your business even needs a TikTok account. Otherwise, you simply won’t see the results you want.

Adapting to the rules

Every business needs some kind of niche to stand out in an increasingly competitive marketplace, but simply positioning yourself as trustworthy and responsible may in fact achieve the same outcome, as many creators will be slow to adapt to these new changes.

To be on the safe side, start incorporating AI disclosure and LIVE safety requirements into marketing campaigns, briefs, and contracts for potential partners.

This will also future proof your campaigns, setting you up for long-term success.

 
Find more help in our online accounting hub, and learn more about how to find the right accountant for your business.

The post Everything Small Businesses Need to Know About TikTok’s Guidelines appeared first on The Cheap Accountants.

You might even need to complete one if you’re employed – for example, because you get money from property which is separate to your employment income.

In this article, we’ll take a look at the different options available for sending a tax return, and also explore Making Tax Digital (MTD) Income Tax.

Filing your tax return using a paper form or online

There are different ways you can file your tax return and pay what you owe, including:

• Online
• Via paper form

Filing your tax return online is the most common method – and in some cases this is mandatory, especially with everything becoming digitalised. But in some cases you can still file a paper return.

When do I need to submit my tax return?

There’s often lots of noise around the deadline for submitting your online return (which is 31st January), but the deadline for submitting a paper return is earlier and must be received by HMRC by 31st October.

Do I need to register before I can send a tax return?

Yes, you’ll always need to register before sending a tax return.

If you’re a sole trader or partnership

If you’re a sole trader or part of a partnership, then the onus is on you to make sure you’re paying the correct amount of tax and National Insurance on your self-employed earnings.

The deadline to register for Self Assessment is 5th October in your second tax year of business.

Thankfully, sole traders can earn up to £1,000 tax-free before they need to register and start sending tax returns to HMRC. This is known as the trading allowance.

If you run a limited company

Limited companies, on the other hand, need to pay Corporation Tax.

Most choose to register for Corporation Tax when they first incorporate the business with Companies House. If you do decide to defer it then you’ll need to register for tax within 3 months of starting to trade.

Does the way I submit my tax return affect when I need to pay the bill?

It can, yes – because the kind of tax return you must send determines what kind of tax you owe and the deadline for paying it.

For example, if you need to complete a Self Assessment then the deadline for paying your bill is 31st January (following the tax year it relates to).

Corporation Tax must be paid by 9 months and 1 day after the end of your company’s accounting period.

Making Tax Digital (MTD)

Now, if you’re used to sending a Self Assessment to report self-employed or landlord income, Making Tax Digital is something you really need to familiarise yourself with – and possibly start preparing for.

In simple terms, it’s a government-led initiative to try and modernise the tax system, while also minimising mistakes in the process. It’s already been rolled out for all VAT-registered businesses, and now it’s being rolled out in phases for MTD Income Tax.

MTD IT will replace the traditional Self Assessment, so instead of an annual tax return you’ll send HMRC smaller, quarterly updates on MTD compatible software, followed by a ‘Final Submission’ by 31st January each year.

You’ll need to follow MTD IT rules by:

• April 2026 if you earn more than £50,000 from self-employment and/or property
• April 2027 for those earning more than £30,000 in the 2025/26 tax year
• And April 2028 for those earning £20,000 in the 2026/27 tax year

An accountant can help make sure you’re complying with the MTD rules, so don’t worry if you’re a bit confused!

What happens if I miss a payment to HMRC?

You’ll incur an automatic fine if you miss a payment, and it gets worse the longer you leave it. Interest is also charged on top of penalties for any late payments. So, if you can’t pay, get in touch with HMRC immediately – as you could prevent this by setting up a Time to Pay arrangement.

If you need help with any of this, don’t hesitate to hire an accountant who will be able to walk you through the process and ensure you’re operating in the most tax-efficient way possible.

 
Find more help in our online accounting hub, and learn more about how to find the right accountant for your business.

The post How to Complete a Tax Return appeared first on The Cheap Accountants.

CV and portfolio building

Your curriculum vitae and portfolio are both valuable ongoing resources showing what you’ve done, and therefore what you’re capable of. Continuously building on this shows potential clients all the ways in which you can add value through your services, with evidence based on real examples to showcase your work.

This might not always be so simple though, especially in the early days of your freelance careeer, during quieter spells, or if you’ve been working with clients under non-disclosure agreements.

Doing the work on a voluntary basis will allow you to show-off your problem-solving talents without fighting for the work first – hopefully helping you secure the job as a paid gig next time round.

It’s also a great way to test run brand new skills if you are in the process of a complete career transformation without being tied to any long-term employee contracts.

Making contacts

Volunteering in your chosen field means you are opening the door to a whole new world of contacts and opportunities you might otherwise miss.

You’ll be connecting with the right people and gaining access to resources which could help you get ahead.

Volunteer work is also great practice for networking, enabling you to hone in on your interpersonal and communication skills. It will stand you in good stead for future interviews and client meetings! You might even connect with someone who becomes a valuable mentor on your journey.

Employability

It’s common knowledge that the skills gap is still a prominent problem throughout the UK. Extra-curricular work towards learning and adopting new skills can help you stand out from the crowd.

Along with developing your skillset, taking up volunteering work demonstrates willingness, initiative, motivation and a drive to succeed. These are all extremely attractive qualities to prospective employees or clients who will be sifting through applicants or pitches.

Boosting confidence

CV building, contact making and employability are less important to the well-versed retiree who is simply looking to spend their time constructively. However, confidence boosting is vital to almost everybody as great self-esteem contributes to a healthy mind and positive productivity.

A survey by Reach Skills showed that more than one in three volunteers do it to increase their confidence levels and we salute them! Satisfaction, pride, sense of purpose and confidence in your own capabilities are all key ingredients to a happy well-rounded person, and staying motivated.

Good karma

As well as ticking lots of boxes for those of you still working your way up the career ladder, volunteer work will also allow you to rack up some serious good karma points.

If nothing else, altruistic acts of kindness make you feel all fuzzy inside and will give growing businesses the helping hand they need to succeed and we all know that feels, right?

Getting the most out of your volunteering experience

Taking a hiatus from money-making can be nerve-racking, so it’s important you get the most out of your volunteer experience. Be proactive in getting involved and go above and beyond what’s expected of you. Remember, it’s only temporary and one day these skills could be earning you a pretty penny.

If you feel like you aren’t getting enough out of the experience then speak up because volunteer work has to be a mutually beneficial process.

Lastly – ask questions. Be inquisitive to absorb the absolute most out of the situation and the people in it. Wring it dry!

 
Check out our accounting support hub for more help and resources, or to ask a tax question.

The post Will Volunteering Work Help My Freelance Career? appeared first on The Cheap Accountants.

This is where good financial planning and management come into play, helping to give your business a solid foundation as you look to establish yourself in the market.

In this article, we’ll share some of the best things you can do in the beginning to set yourself up for continued success.

Grab a notepad and pen, and let’s get started.

Do your homework

It can be tempting to just dive in headfirst once you have a business idea you’re happy with. But take a moment to consider how much you actually know about the market you’re looking to enter.

Do you know the ins and outs, or do you have more of a working knowledge?

If it’s the latter, you might want to rectify that before you get up and running. Conducting research into your chosen field shouldn’t just be a formality, though, or an exercise in ticking boxes.

Carrying out good market research and analysis is a sound business practice that can pay dividends in the long run – hopefully literally, if you’re running a limited company!

As well as giving you a good idea of what your operational costs are likely to come in at, early and ongoing market research will help you with things like:

• Setting fees and prices
• Understanding who your nearest competitors are
• What your customer is looking for from you, which will give you a better chance of securing work

Track your spending

Two words: cash flow.

This is super important to understand, but it’s also tricky for new businesses just starting out.

Again, your first impulse might be to cut to the chase and start spending right away, and this actually makes a good amount of sense. You obviously need to invest in your business if you want it to grow, right?

Yes, but you also have to be smart about it. If you miscalculate and then can’t pay your new suppliers on time then you might be out favour before you’ve even had a chance to make a good go of it.

Thankfully, good bookkeeping software can help with this, allowing you to track your spending and use short and long-term forecasting to work out when clients need to pay, so you can pay your own bills on time.

Once you have a cash flow forecast, you can then build in a buffer zone to give yourself a bit of breathing room.

Understand your tax obligations

Now, before you start to nod off, make sure you know what you owe.

The best starting point to this is deciding on a legal business structure. The way you set yourself up, for example as a sole trader or director of a limited company, affect the type of tax you need to pay as well as the deadline to pay it.

Failing to pay the correct amount (or type) of tax can result in hefty fines from HMRC, and no one wants that.

Some of the types of taxes you might need to pay include Income Tax, Corporation Tax, employer’s National Insurance, and VAT.

Being aware of these means you’re in a position to plan ahead, which brings us back to the importance of cash flow forecasting!

Set clear goals

If you want to hit a target, you first need to aim at one. That may go without saying, but it bears repeating.

So, using all the knowledge gained from conducting thorough market research, as well as from your cash flow forecasting, you should try and pinpoint exactly what you want to achieve with your business in both the near and distant future.

This ensures you are constantly improving and making progress, which helps to support long-term growth.

The bit that lots of startups struggle with is the fact that everyone’s goal is “make money”. Looking at all the facts and figures can help you make things a bit more clear cut. For example, “take on one client and bill this amount by this date”.

Leverage technology

If you’re starting a business today, you simply can’t afford to ignore the digital tools and platforms available to you.

Technology can and should create savings, representing a valuable return on investment.

For example, if you’re starting up in retail, you should familiarise yourself with Electronic Points of Sale (EPOS), and perhaps even inventory management systems if you really want to make your life easier.

More generally, you should look at ways you can market your business on social media platforms like Instagram and TikTok, as this is a great way to expand your reach (and hopefully your customer base).

Every business will of course be different in this regard, so find your unique selling point and get creative.

We know it’s not easy taking your first steps in business formation, but put in the effort with financial planning and you’ll reap the rewards.

If you’re unsure about any of this, don’t hesitate to get in touch with an accountant, who will be able to simplify everything and walk you through the whole process.

Find more help in our online accounting hub, and learn more about how to find the right accountant for your business.

The post Top Tips for Financial Planning in the Early Days appeared first on The Cheap Accountants.

In fact, finding reliable guidance is key no matter what stage your business is at, because scaling and growing are every bit as crucial as the launch itself.

There are certainly lots of places you can explore to find this support; friends and family; business loans; grants, crowdfunding campaigns; investment – just to name a few. Another option you could explore is becoming part of a business incubator programme.

In this blog post, we’ll look at what these business development programmes are, and what support you can access.

What is a start-up business incubator?

Business incubators are support programmes designed to help fledgling entrepreneurs or start-up owners access all kinds of invaluable resources, from money to advice. They can often help open doors for new business owners, providing guidance and opportunities.

Types of business incubator can vary, with lots of different programmes designed to nurture specific industries and sectors. This is important to remember when deciding on the right incubator for your business.

In general, however, start-up incubators can help facilitate anything from access to office space and financial support resources, to expert workshops and introductions to investors and mentors.

What does a business incubator usually offer?

The precise nature of support a business incubator provides depends largely on what issues that particular programme sets out to solve, but some issues or obstacles which are universal for business start-ups, no matter what their niche or specialty.

So, whilst some business incubator programmes might include additional support for a specific industry, there are some general themes such as the offer of training and workspace.

Low-cost working spaces

Organisers of an incubator programme will often provide new business owners with access to discounted co-working spaces. This helps keep your initial operating costs down, and can even help you to expand your network in the process.

Education and training

Workshops, training, and various educational sessions are an integral part of business incubation. They can provide fantastic opportunities to learn from those who have been there before.

Access to a network of mentors

Being part of an incubator programme will often put you in touch with mentors from a variety of business backgrounds.

Research into the issues entrepreneurs face revealed some aspects of running a business can be more complicated than new business owners expected, so a mentor can help you approach new situations or plan ahead for them.

Routes into potential funding

Participating in an incubator programme can help a business look appealing to prospective investors. In some programmes you might also have access to funding options such as grants, loan schemes, and even investors willing to offer financial support as you start up.

Relationships with other start-up business owners

You will meet other entrepreneurs along the way and build your network of contacts and friends. These sorts of relationships should never be underestimated in the world of business!

Discounted rates for services

This isn’t a given with all incubator initiatives, but some do provide access to discounts on various services, such as accountancy or legal support, for example.

How does a business incubator programme typically work?

Business incubators are there to encourage entrepreneurialism, so they’re often offered by universities to graduating students looking to take the next step. You can also find schemes through local councils, government departments, or other business groups such as the Chamber of Commerce.

It’s always worth researching in detail precisely what a particular incubator programme is offering to its participants so you can make sure you’re enrolling in one right for you. Think about where your start up needs support or what guidance it needs most, then decide which incubator(s) you’d like to apply for.

Top tip: Read testimonials and case studies or reach out to past programme participants to glean some insight into how they found a programme. This will give you a good steer on how it might benefit your own business.

Do I have to apply to be part of a business incubator?

Yes, in order to take part in a business incubator programme, you will need to go through an application process. This will usually involve an interview stage.

Can I be involved with more than one incubator at a time?

This will be at the discretion of the programme organisers. Some will permit you to be involved with multiple incubators simultaneously, while others might stipulate you aren’t. Whether or not this is a good idea depends very much on you and your needs!

How much does a business incubator cost?

A lot of business incubators are free to use, because they’re often funded by government or commercial initiatives of some sort. There are other similar accelerator initiatives that might charge things like services fees, or ask for stakes in your start-up, but where non-profit incubators are concerned this isn’t standard practice.

How long is a business incubator programme?

There’s no one-size-fits-all answer to this question because the duration of business incubators varies massively. As a rough guideline: these types of programmes can range between anything from a couple of months to four or five years.

What is worth noting here is that once you’re accepted onto a programme, you will be expected to invest the necessary time into it—something you’ll need to consider before committing to anything.

 
Find more help and advice for start-up businesses in our online hub, and find answers to tax questions to help you get started.

The post Can a Business Incubator Help My Start-up? appeared first on The Cheap Accountants.

What is the sugar tax?

The sugar tax – or the Soft Drinks Industry Levy (SDIL) to use its proper name – is a tax on pre-packaged drinks that contain added sugar.

It aims to function as a kind of deterrent, encouraging drink manufacturers to reformulate high-sugar beverages in order to avoid paying the tax.

What does the sugar tax apply to?
There are also certain exemptions to be aware of though, so the sugar tax won’t apply to:

• Drinks with less than 5g of total sugar per 100ml
• Pure fruit and vegetable juices
• Alcohol-free beer and wine
• Powdered drinks

Pre-packaged milk-based drinks like bottled milkshakes and coffees are technically exempt for now, but this is also set to change from January 2028, including for plant-based alternatives (such as oat milk) with added sugar.

What this doesn’t include, however, are “open cup” milkshakes and coffees prepared in places like cafés, bars or restaurants.

Who pays the Soft Drinks Industry Levy?

The sugar tax applies to manufacturers and importers of pre-packaged sugary drinks, meaning retailers don’t pay the tax directly. That doesn’t mean they won’t feel the effects though, and any business selling sugary drinks is likely to deal with higher costs from their suppliers as a result.

Smaller manufacturers (who produce less than one million litres of drinks above the threshold per year) are exempt from having to pay the tax.

How much is the sugar tax?

The tax basically works on a two-tier system, with the rate of tax depending on the exact amount of sugar contained within each drink.

The levy currently applies to drinks with added sugar that contain more than 5g of total sugar per 100ml. For 2026/27 the sugar tax rate is:

• £1.94 per 10 litres of any drink which has between 5g and 8g of sugar per 100ml
• £2.59 per 10 litres of any drink which has 8g or more of sugar per 100ml

From January 2028, though, the minimum threshold for the lower rate of sugar tax will be lowered from 5g of total sugar per 100ml to 4.5g of total sugar per 100ml. Manufacturers will need to reduce sugar levels by this date if they wish to avoid paying the tax.

How will the changes impact my business?

If you’re a manufacturer the you pretty much have two options: reformulate your product so its sugar content is below the lower threshold, or accept that you’ll have to pay the tax. Either way, the cost is high, and so you’ll likely have to pass it on to customers by way of higher prices.

Companies that choose to pay the tax could spend up to £259,000 a year depending on what tier they’re in.

Sugar tax and smaller retailers

If you’re a small business that sells pre-packaged sugary drinks, you could find yourself being charged a lot more by your supplier. This means you may find yourself having to raise prices in order to try and offset the cost without eating into your own profits.

A bigger chain like Starbucks or Costa is more equipped to deal with higher taxes, whereas independent operators with a select number of locations are more likely to struggle with tighter cashflow.

It’s well worth chatting to an accountant about this. They’ll walk you through the process and also ensure you’re operating in the most tax-efficient way possible, claiming everything you’re entitled to.

 
Find more help in our online accounting hub, and learn more about how to find the right accountant for your business.

The post How Will the Sugar Tax Impact My Business? appeared first on The Cheap Accountants.

This rupture certainly isn’t helped by the many misconceptions surrounding the concept of outsourcing.

In this article, we want to clear a few things up by presenting some of the most common myths about outsourcing, then busting them with the facts so you can decide how outsourcing might help your business.

The myth: Outsourcing means you lose control of project management

Some people find the idea of working with external parties who aren’t part of the in-house team overwhelming.

You can see your colleagues sitting right in front of you. Why would you outsource to someone who might not even be working the same timezone?

For some, this suggests nothing but a loss of control.

The truth

Often, one of the most productive things you can do for your business as an owner or manager is open the door to others more proficiently skilled. Even if they are working six hours ahead or behind, from the comfort of their own home.

With technology working its magic, remote project management and collaboration between geographically distant teams in and external to the business has never been easier.

With the right systems in place, great communication, and the odd tool to help you out here and there, those you’re outsourcing to will simply become an extension of the team.

The myth: Outsourcing is something only big companies can afford

Plenty of business owners see outsourcing as a luxury that only big companies with lots of resources can afford. They see the cost of outsourced work as an added expense on top of the regular salaries and overheads – but what about ditching tradition?

The truth

Outsourcing skills or services can actually be a great way to spend more sensibly and help budgets stretch further.

For example: rather than employing a full-time marketing social media exec to write a couple of social media posts per week, dissolve the role in favour of a freelancer or agency who can do the same, for a fraction of the cost. Plus, you don’t need to pay any employer’s contributions for them.

The myth: Outsourcing causes risks with data and cyber security

Far too often we see businesses shying away from outsourcing due to fears around cyber-attacks and data breaching. We hear you, and you’re right to be concerned about the online security of your business, especially when working with external parties. Just don’t let that be what puts you off outsourcing.

The truth

Sure, if you’re not careful, working with external parties can compromise your data, but this is why contracts are useful. A freelancer or contractor is no more likely to result in a data protection breach than an employee.

The myth: Outsourced work isn’t as high quality as in-house work

Some believe that the best work can only be done by those operating from inside the business. Employers can find it difficult to process the idea that external professionals can do just as good a job as an employee.

The truth

Recruitment is important! This is how you hire, or use the services of, good people who are dedicated to doing the job well. People are motivated in different ways, so one employee might be just as switched on as the next freelancer.

When you outsource to somebody, you’re buying into a specific, fine-tuned skillet that’s been honed. Their expertise can take you to the next level.

Sometimes, full-time employees can become generalists spread thinly, with fingers in a number of pies. The experts you outsource to, however, are masters of their craft. Plus, they’re well-versed in getting to know a business’s brand, tone of voice, culture and identity at super-speed.

Wondering how outsourcing skills might impact your business finances? Use our handy tool to ask a tax-related question for free and let our experts give you a (generous) nudge in the right direction.

The post Dispelling Common Myths About Outsourcing appeared first on The Cheap Accountants.