IM Bookkeeping Ltd

30/03/2026

From Tuesday, every sick day costs you money from day one. Here’s what else is changing this April 👇

Right, it’s that time of year again. A bunch of payroll and employment changes kick in from April, so here’s what you need to know – without the jargon.

💷 Your wage bill is going up
From 1 April, the National Living Wage rises to £12.71/hr (21+). That’s about £1,000 extra per year for each full-time employee on minimum wage. Rates for younger workers go up too: £10.85 for 18–20s, £8.00 for 16–17s and apprentices. Accommodation offset goes to £11.10/day.
Worth checking: are your supervisors and team leads now earning uncomfortably close to new starter rates? If so, it might be time to look at your pay bands.

🤒 Sick pay – this is the big one
From 6 April, SSP is payable from day one. The 3-day waiting period? Gone.
The lower earnings limit? Also gone – so everyone qualifies now. For lower earners, it’ll be 80% of average weekly earnings or £123.25/week, whichever is lower.
Bottom line: those odd sick days that used to cost you nothing will now hit the payroll. Have a look at your absence policy sooner rather than later.

👶 Family leave & statutory pay
SMP, SPP, SAP, ShPP, SPBP and SNCP all go up to £194.32/week. Eligibility threshold rises to £129/week.
Also new: Paternity Leave and Unpaid Parental Leave are now day-one rights – no more waiting period.

🏢 Employer NIC – same rate, bigger bill
Still 15%. Threshold still frozen at £5,000 (until 2031). Employment Allowance still £10,500. But as wages go up, more of your payroll falls above that threshold – so your NIC bill creeps up anyway. Factor it into your budget.

📋 Benefits in Kind
You can now voluntarily register to payroll most BIKs from April 2026. From April 2027 it becomes mandatory (except loans and accommodation). P11Ds still required for 2026/27 – but this is your window to get your systems ready.

🏠 Homeworking perks
Employer-paid home office equipment, eye tests and flu jabs are now tax and NIC exempt via payroll. On the flip side, employees can’t claim homeworking relief through their tax code anymore.

⚖️ New enforcement body
The Fair Work Agency launches in April. It brings minimum wage, holiday pay, SSP and agency worker enforcement all under one roof – with inspection and penalty powers. Getting payroll right matters more than ever.

📊 Tax thresholds – still frozen
Personal allowance £12,570, higher rate £50,270, additional rate £125,140 – all unchanged until at least 2028. Wages go up, thresholds don’t – more of your staff’s pay ends up in higher bands.

Any questions, give us a shout – that’s what we’re here for 👋

27/02/2026

💡 Employer Pension Contributions – Timing and Structure Matter

Many directors assume pension contributions are deductible when they’re recorded in the accounts.
In reality, for Corporation Tax purposes, employer pension contributions work on a PAID basis, not accrual basis.

👉 What does that mean?

✔️ The company only receives tax relief when the money physically leaves the business bank account.
✔️ The payment date determines the tax year it falls into.
✔️ The contribution must be processed correctly as an employer contribution, not a private or third-party payment.

⚠️ Remember: the Annual Allowance includes ALL pension contributions – employer, employee, workplace, SIPP, private and third party.
For higher earners, this requires proactive planning.

📌 As we approach year-end, timing becomes critical.
A delayed payment could mean a missed tax optimisation opportunity.

If you’re unsure:
– When to pay
– How to structure it properly
– What the optimal contribution level is

Let’s plan ahead. Smart tax strategy isn’t reactive — it’s intentional.

** SIPP: Self-Invested Personal Pension.

It’s a UK pension scheme that gives you control over how your pension is invested, instead of being restricted to a standard workplace fund.

20/02/2026

Making Tax Digital is expanding – and it’s not just for Ltd companies anymore.

Making Tax Digital (MTD) is HMRC’s system requiring businesses and landlords to keep digital records and submit tax updates using compatible software.

From April 2026, it will apply to self-employed individuals and landlords with gross income over £50,000.

Important:
This is based on income, not profit.

For example:
If your self-employment income is £30,000 (not profit!)
and your rental income is £25,000,

your total gross income is £55,000 — meaning you’ve crossed the threshold.

This will require quarterly digital submissions instead of one annual tax return.

If you have any questions about how this may affect you, please feel free to contact us.

24/12/2025

10/12/2025

‼️Something is creeping closer…

And no, it’s not Vecna — it’s your Self Assessment deadline.
52 days left. Don’t panic… yet. 😈

28/11/2025

Season’s Greetings! 🎄🎄🌲

It’s our favorite time of year, which means we’re out of the office from 24th December, chugging mugs of cocoa, stuffing our face with cookies, and attempting to fulfill our life-long goal of memorizing every single line of Love Actually. 🍿🍫
🎁🎁🎁🎁🎁🎁🎁🎁

We’ll be back in front of our computers on the 5th January 2026 and will respond to your message at that time. If you need immediate assistance, please send an email at [email protected] so that the other elves in this workshop can help you out.

Happy ho-ho-holidays! ❄️❄️❄️

27/11/2025

📢 Breaking News‼️

Autumn Budget 2025 – Key Tax Updates You Need to Know

The government has released this year’s Autumn Budget, and several changes will impact individuals, landlords, investors, and small business owners. Here’s a streamlined overview to help you stay ahead of the curve:

🔹 Tax thresholds frozen until 2031
Income tax and National Insurance bands remain locked, meaning more people will gradually be pushed into higher tax brackets due to wage inflation.

🔹 Dividend, savings and property income tax rates up by 2%
Those earning through investments, rental income or savings interest will see a higher tax bill from next year.

🔹 Cash ISA annual allowance cut to £12,000 (from 2027)
A significant shift that will affect savers looking to maximise tax-free interest.

🔹 Capital gains & employee-ownership reliefs scaled back
EOT-related capital gains relief drops from 100% to 50%, tightening long-standing incentives for business sales.

🔹 Salary sacrifice pension NI advantage reduced from 2029
Only the first £2,000 will remain NIC-free — contributions above this will attract standard National Insurance.

10/11/2025

New year, new challenges… and guess what? I’ve managed to get myself into another one! 😅

Yes, I’ve signed up again for Galloway’s “Get Me Out of Here 2025” – because if there’s one reason worth stepping out of my comfort zone (and maybe slightly losing my mind), it’s helping blind and partially sighted people! 👀💪

Galloway’s does amazing work – helping people who’ve lost their sight to rebuild their confidence, independence, and connection to the world.
And now it’s our turn to give a little something back! 🙌

So if you’d like to do something good (and maybe laugh a bit at me trying to survive this challenge 😄), please support me with a donation!
Every penny counts – and behind every smile, there’s your kindness making a difference.

👉 Please donate here: https://www.justgiving.com/page/ildiko-mokran--get-me-out-of-here-2025

Thank you for helping me help others – together we’ll prove that community spirit really can bring light into the darkest places! 💚

With gratitude and maybe slightly shaking knees,

Ildiko, the brave (or possibly just crazy?) participant of Galloway’s Get Me Out of Here 2025

08/08/2025

Most UK businesses encounter VAT (Value Added Tax), yet many are unsure about how it really works. In this short and practical guide, we explain the key points to help you navigate the rules with confidence.

📌 When is VAT registration required?

If your annual taxable turnover exceeds £90,000 (as of May 2024), you are legally required to register for VAT with HMRC.

Even if you’re under the threshold, voluntary registration might still be beneficial—especially if you’re eligible to reclaim VAT on your business expenses.

📊 What are the VAT rates?

There are three main VAT rates in the UK:
• 20% – Standard Rate
Applies to most goods and services (e.g. electronics, clothing, software, consultancy).
• 5% – Reduced Rate
Applies to certain items such as home energy, children’s car seats, and some household products.
• 0% – Zero Rate
Includes items like children’s clothes, some food products, books, and exported goods.

Important: Zero-rated doesn’t mean VAT registration isn’t needed—it just means you don’t charge VAT, but you can still reclaim VAT on your expenses.

🧮 What VAT accounting schemes are available?

HMRC offers several VAT accounting methods for businesses:
1. Standard Accounting – The traditional method: you pay VAT on sales and reclaim VAT on purchases.
2. Flat Rate Scheme – A simplified scheme for small businesses: you pay a fixed percentage of your total turnover as VAT.
3. Cash Accounting – You only account for VAT when payments are actually received or made.
4. Annual Accounting – You file one VAT return per year, with quarterly advance payments.

✅ VAT may seem complex at first, but with the right understanding of thresholds, rates, and accounting options, it becomes much easier to manage. At IM Bookkeeping, we’re here to guide you through it so you can focus on growing your business.

📩 Got questions or need help with VAT registration or filing?
Contact us anytime!
👉 www.imbookkeeping.co.uk | [email protected]