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What is a Director’s Loan?

Thu, 12 Jun 2025 10:53:59 GMT

A director’s loan is when you, as the company director, make personal funds available to your limited company or borrow funds for personal use other than salaries, dividends, or repayment of expenses, provided the loan value is 10% less than the company’s net assets.

Taking these funds isn’t straightforward, as it may result in additional tax consequences if not properly managed. For this reason, directors using this loan must understand and consider associated tax responsibilities to comply with tax laws and the Companies Act whilst keeping the company financially stable.

What is a Director’s Loan Account (DLA)?

A Director’s Loan Account (DLA), a.k.a. Director’s Current Account (DCA), is a ledger of transactions between a director and a company, including the record of money owing in each direction (director to company or vice versa). Every director who uses this type of loan is required by law to have a DLA. The DLA would usually contain the following types of transactions;

The money a director borrows from the company for personal use, using company money or card.
The money a director lends to the company in the form of start-up costs, settles debts on behalf of the company, or funds company growth.
Loan details granted during the year, especially larger ones.
Interest rate (mainly at the commercial rate).
The primary condition of the loan.
Any director’s loan repaid or written off.

Difference Between Borrowing and Repaying

A director’s loan can go both ways. If necessary, you can lend your personal funds to the company, but the most frequent situation is when a director’s lending account is overdrawn. Withdrawing funds from the company puts the DLA balance in negative or in a debit position.

On the other hand, the DLA records the loan repayment as a credit balance, a negative number that either reduces the director’s debts or creates a balance owed to them. Generally, your goal should be to have the account in credit or zero.

When is Tax Payable? (s455 Tax)

Tax could be payable on the director’s loan, depending on when it’s repaid. The loan can be tax-free if the loan value doesn’t exceed £10,000 and is paid back within nine months and one day after your business's fiscal year ends. Note that this is also the same date the company’s corporation tax is due. Failure to repay within this window attracts a tax charge known as Section 455 corporation tax, computed at 33.75% of the remaining amount on the DLA. Also, remember that only loan advances, not the entire loan balance, are subject to S455 tax.

For example, if the total loan increased from £12,000 the previous year to £14,000 this year, you would only pay the S455 tax on the difference (£2,000) rather than the entire £14,000. Thankfully, the S455 tax is refundable should you clear the DLA, but it’s a time-consuming process that only happens nine months after the accounting period you paid off the loan.

What Happens When the Loan Isn’t Repaid on Time?

The standard window for a director’s loan repayment is nine months and one day before the company’s financial year-end to avoid penalties and possible HMRC scrutiny. A default in repayment triggers a S455 tax with further non-refundable interest charged until the S455 corporation tax is paid or the loan is fully repaid.

This is a measure to prevent directors from abusing the loan. HMRC monitors overdrawn accounts and can impose an income tax and national insurance on the value if they discover that your loan is a salary.

P.S: A director may withdraw funds from the DLA if there is a balance without incurring any tax obligations, like a regular bank account. But if the balance is overdrawn, a tax problem is inevitable.

Interest on Loans and Benefit in Kind Rules

A director's loan may attract interest if the company or the director decides to do so, but there are no set rules for negotiation. The amount of interest that applies is entirely discretionary for either party. However, discounted rates lower than the HMRC’s official rate (ORI) will be classified as a benefit-in-kind, and the difference will be subject to taxation. In addition, if the loan exceeds £10,000 during the tax year, a benefit-in-kind tax charge will apply unless the director is already paying the recommended interest.

The BIK must be reflected in the P11D forms, after which the company pays Class 1A Employer’s National Insurance pegged at 13.8% on the entire loan. This rate will increase to 15% for the 2025-26 tax year. The director, in turn, includes the cash value equivalent of the loan in the self-assessment tax return.

How to Avoid Problems

The crucial part of a director’s loan is keeping accurate records. All borrowings, repayments, and interest charges, including regular updates to reflect the account’s current status, must be logged to ensure transparency and compliance. An overdrawn DLA is a warning indicator for the viability of your business and to HMRC. Any persistently negative figure signals financial mismanagement and could draw unnecessary attention from tax officials, possibly resulting in legal action. To avoid these problems, have a sound repayment plan when you borrow, one that guarantees your payback obligations. You can also get help from a tax accountant with establishing and administering a DLA to navigate the complexities of the loan rules, paperwork, and best practice.

Is Local Knowledge Needed for a Director’s Loan?

Of course. The director’s loan requires indigenous knowledge as it can greatly impact reporting a company’s financial standing in the UK or elsewhere. Its effects extend beyond transactions to financial statements, altering balance sheets and possibly influencing tax obligations.

Managing director’s loan requires adherence to the Companies Act of 2006 . And breaking such rules may result in severe penalties, such as HMRC classifying the loan as an unlawful dividend, and additional obligations and penalties may arise from such dividends. Getting professional guidance from a Leicester-based accounting expert, like Bloom Accounting, is strongly advised to manage these issues and ensure your company stays protected.

Wrap Up

The DLA can be cumbersome for a company director to comprehend. Taking out funds from limited companies is an entirely different situation from sole traders and partnerships, where the act and procedure is straightforward.

While a director’s loan offers a flexible and accessible way to obtain funds, its laws can be stringent and expensive, hence not a reliable withdrawal option you can regularly use to obtain cash for personal use. Contact Bloom Accounting for additional information on managing a director’s loan; our experts will happily answer your enquiries.

How to File a Confirmation Statement for Companies House

Mon, 07 Apr 2025 12:42:45 GMT

Running a limited company in the UK comes with its fair share of admin, and one of the key filings you cannot afford to ignore is the Confirmation Statement. Think of it as your company’s annual check-in with Companies House, a quick but crucial way to confirm that your business details are up to date.

But how do you file it? Do you need an accountant? And what happens if you miss the deadline?

We’ll break it down for you.

What is a Confirmation Statement, and why do you need one?

A Confirmation Statement is a legally required document that all UK limited companies must file at least once a year with Companies House. It is not about financials, so there’s no need to dig through your invoices and receipts. It is just a way to confirm that your company’s information is correct. This includes:

Company name and registration number
Registered office address
Directors and company secretary details
People with Significant Control
Shareholder details for companies with shares
SIC code

Failing to file it on time can lead to fines and even strike-off proceedings, meaning your company could be forcibly closed.

How to File a Confirmation Statement

You have two options: online or by post.

Filing Online

Log in to your Companies House WebFiling account.
Enter your authentication code, a unique six-character code that Companies House provides when you set up your company.
Review your company details and update any changes.
Pay the filing fee, which is £34 if done online.
Submit your Confirmation Statement and receive an email confirmation.

Filing by Paper

Download and print form CS01 from the Companies House website.
Fill it in manually with your company details.
Write a cheque for the £62 filing fee.
Post it to Companies House and wait for confirmation.

Deadlines and Costs

When is it due? Every twelve months from either your incorporation date or the date of your last Confirmation Statement.

Cost £34 online or £62 by post.

Late filing. There is no automatic penalty, but your company could be struck off if ignored for too long.

Do I Need an Accountant for This

Filing a Confirmation Statement is usually straightforward. However, if your company has multiple directors, complex share structures, or significant changes, it’s a good idea to have an accountant review everything.

Even when it seems simple, many business owners prefer to hand it over to their accountant to avoid potential issues down the line.

Even a small mistake can lead to compliance headaches, and nobody wants that!

What a Confirmation Statement Looks Like

A Confirmation Statement is essentially a snapshot of your company’s records. It includes:

Basic company details
Shareholder information
Register of significant control
SIC codes
Statement of capital, if applicable

Is a Confirmation Statement the same as an annual return? The Confirmation Statement took the place of the annual return in 2016, making it the new requirement for updating company details with Companies House. It is simpler and only requires you to confirm details instead of resubmitting them every year.

What Happens If You Do Not File

Ignoring your Confirmation Statement is not a great idea. If you miss the deadline:

Your company may be struck off the register.
You could face legal consequences if done intentionally.
You will struggle with banking, contracts, and compliance issues.

Got it wrong? You can correct a Confirmation Statement by submitting another CS01 form for free within fourteen days of filing.

Failing to file your Confirmation Statement is a serious matter. Not only is it a criminal offence, but it also exposes company directors or LLP-designated members to personal financial penalties.

In England and Wales, the penalty can be as high as £500 or one-tenth of level 4 on the standard scale (£2,500), whichever is greater. Worse still, continued non-compliance can trigger daily default fines, compounding the financial burden.

For businesses in Scotland or Northern Ireland, the fine could soar to level 5 on the standard scale, with daily fines of up to one-tenth of level 5 (£5,000) for continued neglect.

Here’s the breakdown of the standard scale for fines under the Sentencing Act 2020:

Level 1 fine : £200
Level 2 fine : £500
Level 3 fine : £1,000
Level 4 fine : £2,500
Level 5 fine : £5,000

This penalty structure remains in place until the overdue Confirmation Statement is filed. Failure to pay these fines may result in Companies House taking steps to strike off and dissolve your company altogether.

In addition to the legal and financial consequences, late filings tarnish your company’s public image. When your filing is overdue, it will be displayed on the Companies House register, along with any late filing notices. This creates a negative impression of your company, making potential clients, suppliers, and investors question its reliability and management practices.

Document Certification and Other Forms

Some documents may need certification before submission to Companies House. This usually applies if you are sending copies of official documents such as a passport or ID.

Who Can Certify Documents for Companies House?

Solicitors
Accountants
Notary Publics
Chartered Secretaries

Other forms you might need:

DS01 form : To dissolve or close your company
SH01 form : To update share capital information

Final Thoughts

Filing a Confirmation Statement may seem straightforward, but even the smallest slip-up can snowball into bigger problems. If you'd rather not deal with the details and leave it to the experts, Bloom Accounting has you covered. We will take care of everything, ensuring your filings are accurate, on time, and hassle-free. Reach out to our Leicester-based team today, and let us handle the compliance while you focus on growing your business.

How to Switch from Sole Trader to Limited Company in the UK

Tue, 28 Jan 2025 16:23:58 GMT

If you’re thinking of making the switch from sole trader to a limited company then follow these 'simple' steps from our expert limited company accounting team to guarantee a smooth changeover.

1. Choose Your Company Name

Choose a unique name for your limited company. Check that it isn’t already registered with Companies House to avoid any issues. The rules are different compared to that of a sole trader — you cannot have the same name as another limited company.

2. Register Your Limited Company

You can register your limited company online through Companies House or with the help of an accountant. It is a straight forward process with most applications approved by Companies House within 24 hours.

During registration, you will need:

A registered office address (A registered office is a legal requirement for any UK limited company)
at least one Standard Industrial Classification (SIC) code to describe the company’s main business activity.
at least one director and one shareholder
details of every person with significant control (PSC)
articles of association (All UK limited companies require articles of association. The articles set out the rules for running the company, which must be abided by company directors at all times).

3. Set Up a Business Bank Account

Open a separate business bank account for your limited company. This ensures that your business finances are kept distinct from your personal finances.

As the money belongs to the company and not the directors, limited companies should have separate accounts in the company name.

Even if your previous sole trader and limited company have the same business name, it is crucial that a new separate bank account is created in the company name, failure to do so could lead to nasty tax implications.

4. Inform HMRC

Notify HMRC : Contact HMRC by calling their Self-Assessment helpline at 0300 200 3310 or send a letter. Inform them that you are no longer operating as a sole trader.

File Your Final Self-Assessment Return : Submit the final self-assessment tax return for your sole trader business, marking it as the last year of trading.

It is important to note that as a director of a limited company it is rather likely that you will be receiving salary and dividends from the limited company, therefore this would need to be reported on future self assessment tax returns and therefore you should not close down your self assessment account with HMRC when ceasing the sole trader business
Register for Corporation Tax : After registering your limited company, HMRC will automatically register the company for Corporation Tax.

5. Register for Other Taxes

As mentioned above, there is a strong likelihood that salaries will be paid from the limited company, therefore the company will need to register as an employer and set up PAYE.

There may also be a need to register the company for VAT or transfer the existing VAT registration from the sole trader.

6. Transfer Assets and Liabilities

Depending on your sole trader business, you may need to transfer assets such as, property, machinery, equipment, stock etc.) from your sole trader business to your limited company. Determine how to handle any outstanding debts, ensuring the transition is seamless.

It is worth mentioning that transferring assets on incoporation can be a complicated process for some businesses and can have Capital Gains Tax (CGT) implications. We advise speaking to an expert accountant to avoid any costly issues.

7. Notify Your Customers and Suppliers

Update your clients and suppliers about your change in business structure. Make sure to revise your invoices, contracts, and payment details to reflect your new company name and structure.

8. Update Your Insurance

Review and update your business insurance policies to reflect your new limited company status. This may involve changing liability coverage or adjusting terms for employees.

9. Maintain Proper Accounting and Records

Set up an accounting system that complies with company tax regulations. Keep detailed and accurate records to ensure you meet all legal obligations and file taxes on time.

By following these steps, you can make a smooth transition from sole trader to limited company in the UK. If you want a reliable and expert accountant to assist you in this process, then get in touch with Bloom Accountants, we have decades of experience and specialise in limited company accounting, and can help you move from Sole Trader to Limited Company with ease.

How to decide if we’re the accountants for you

Thu, 27 Jul 2023 08:38:54 GMT

No one ever really tells you how to pick an accountant. One of the most important things to research is their values. Knowing what an accounting firm values tells you so much about the kind of people you’re going to work with and the relationship you’ll be entering into.

If you’re looking for your first accountant, location may seem like the most sensible search criteria. But in a digital world, geography doesn’t need to be the deciding factor. Many accountants operate online and work with clients all over the country.

If you’re looking to switch accountants, a firm’s service offering may play into the decision. You might be looking for help with a specific service your existing accountant doesn’t provide.

Let’s say you find a bunch of accounting firms in the right location offering the services you know you need. Then what? How do you choose between all the options?

This is where values come in, and why they’re so important.

Values are important in all relationships. In any partnership you enter into, each partner will bring their own set of values to the table. When those values match, a partnership has strong foundations.

It’s the same in professional relationships. The best accountant for you is one that shares your values. They’ll care about the same fundamental things you care about, and place importance on the same principles you do.

At Bloom, family is the most important value

My main reason for starting a business was flexibility and freedom. To know if I need to drop something at a moment’s notice I could afford to, without any hassle or grief. To have the opportunity and ability to be more present in my children’s lives, especially as they are growing up. To be able to do the daily school run, and be around for them. I know I wouldn’t have that level of flexibility and opportunity had I continued working in the corporate world.

In the fast-paced world we live in, it's all too easy to get swept up in the daily rat race, chasing after money and success. And I get it, I've been there too. But what I've come to realise is how easily this pursuit can blur our focus on what truly matters in life. The never-ending grind might bring short-term gains, but it can also mean losing out on precious moments with family, friends, and the things that ignite our passions.

At Bloom, we've embraced the importance of striking a balance that lets us achieve our goals without sacrificing the joys and meaningful connections that make life truly worthwhile. Beyond just crunching numbers and dealing with spreadsheets, our mission is to help our clients build thriving businesses that cherish what's genuinely important in their lives. It's about finding success without losing sight of the things that bring us true enjoyment and happiness.

A life-changing experience within my family completely shifted my outlook on both business and life. Honestly, it shouldn't have taken such a drastic event to open my eyes to the significance of making time for the people who truly matter. But it did, and it was a wake-up call that taught me a crucial lesson. Now, I wholeheartedly understand the value of cherishing moments with our loved ones and ensuring they remain a priority in our busy lives. It's a lesson I carry with me every day, and it's at the core of how I approach my work and personal life.

My mission is to help business owners find the same freedom and flexibility without having to go through a big wake up call or life-altering event.

At Bloom we don’t hope for balance to eventually happen. We help our clients create it. We make sure they can fulfil their ambition of running a successful business without missing out on the important things in life.

Our values

At Bloom, our values are at the heart of everything we do. They're the foundation of our culture, driving our daily actions – how we behave, the choices we make, and how we work with and treat others.

What our values mean in more detail

Be present

At Bloom, family is THE most important value and they come first before everything else.
We support our staff, clients, colleagues and whoever may need our help.
Our mantra: enjoy doing what you love doing and who you love doing it with - treasure those memories and have no regrets! Live your life.
We build good relationships with our clients, based on mutual respect and appreciation.

Change lives

We help business owners’ get their lives back and free them from the shackles of their business.
We make a difference to our clients, staff, colleagues, those linked to our business and those who are not.
We strive to make an impact and change the lives of those less fortunate.
We want to leave a legacy by helping business owners to build a business that they can be proud of and one that impacts lives.

Own it

We treat our clients' business as though it is our own business.
We do everything with 100% transparency. We will always be honest and fair and expect our clients to be too - we don’t do dodgy!
We will always deliver on the promise - we will never go back on our word and will always do what we said we would.
We expect integrity and honesty from our clients too.

Ambitiously dedicated

Be ambitious and aim high - believe it's possible. No negative mindset.
We’re completely dedicated to helping our clients achieve their business and personal goals as their trusted adviser.
We’re innovative, always looking to deliver better and constantly improving ourselves and our service.

Be memorable

We provide an exceptional 5 star service to our clients - we aim to WOW.
We recognise and celebrate our wins and our clients and have fun along the way!
We want our clients to enjoy the process and feel like running a business is fun and rewarding. We celebrate their milestones with them.

Think we might be a good match?

Now you know a little more about us, visit our how we work page to see the services we provide and how we can help you free up some time.

Maybe you already have a strong gut feeling we’re your kind of people, and you want to skip straight to a conversation. You can do that here .

We look forward to hearing about the things you hold most dear, and helping you build a successful business that honours them, not holds you back from them.

How property investors Mr & Mrs Hanif saved over £3m in taxes despite a big change in government tax rules

Tue, 04 Jul 2023 08:50:46 GMT

Buy-to-let property investors Mr & Mrs Hanif had three major goals for their property income:

To provide for a fulfilling lifestyle
To save up for their daughter’s further education.
To provide financial security for their family’s future

Both husband and wife had been building up their property portfolios since 2002, and with a review each year, they were confidently operating through the most tax efficient structure…

…until 2017.

A government tax change would mean a reduction in the couple’s disposable income and a devastating increase in tax

Prior to 2017, you could deduct finance costs, like mortgage interest from your rental income.

In 2017 HMRC started phasing out the finance costs you could deduct over a 4 year period, and simultaneously introduced a new relief called “tax credit”.

These tax credits, which came into full effect from April 2020, meant that landlords could no longer deduct any of their mortgage interest from their rental income when calculating their taxable profit. Instead, landlords would receive a 20% tax relief on mortgage interest payments.

Sounds fair - right?

The problem is, as the couple’s portfolio increased to 20+ properties over the next couple of years, the additional income tax was crushing them.

Mr and Mrs Imran’s property partnership held £4.8m of property in a mixed residential portfolio, mortgaged and generating £285,000 of gross rents per annum. With mortgage interest of £95,000 per year and other costs, the net profit was around £100,000 per year.

The change in tax relief for the finance costs meant that the profit would be pushed from £100,000 to £195,000 pa, into the additional (45%) rate band, and then only allow a 20% tax credit on the mortgage interest, costing approximately £21,000 more in tax each year.

Mr and Mrs Hanif were desperate to find a way to save some tax. Anybody would be.

Taking all things into account, it was decided that the best solution for the Hanif’s would be to incorporate the partnership.

As it was a relatively new rule, we carried out research, attended property tax seminars and spoke to similar property tax experts in the field.

Mr and Mrs Hanif had been a client of ours since 2014, after becoming increasingly frustrated by the lack of communication and support from their previous accountants.

At Bloom, our mission is to help young families run successful businesses without compromising their families and their lives.

Your goal of saving for your children’s education may not be important to every accountant. But it is of the utmost importance to us.

We didn’t set out to be traditional thinking accountants. We believe in family first. Which is why it was so important to us to understand everything we could about the new legislation, and put the Hanif family back in a position of control.

We found a series of steps could be taken to potentially wipe out these additional tax costs for the couple - but they would have to be carried out meticulously.

The end result would be to transfer all current properties held individually into a limited company structure.

Caution was needed because:

Typically the sale of an asset from an individual that is connected to the limited company would incur stamp duty.
In addition, the same transaction potentially would give rise to capital gains tax.

At the time, they held approximately 23 properties, so the stamp duty and capital gains tax implications would be huge - we’re talking hundreds of thousands of pounds.

We would need to form a partnership, run it for a few years and then incorporate the partnership into a limited company. With certain tax reliefs available this would completely mitigate the stamp duty and capital gains tax.

Once incorporated, the company could be structured in such a way that would give the inheritance tax protection they so desperately sought for their young daughter.

Overall, the couple gained a £400k directors loan account, and saved over £3m in taxes across stamp duty, capital gains tax, income tax and inheritance tax.

We advised that a full accounting system be installed so that we all had full transparency over the figures, and this would aid the incorporation process. In addition, it would help in the future as each property’ s profitability would be able to be analysed in meticulous detail.

We worked closely with Mr and Mrs Hanif, ensuring all the correct information for each property was collected, including getting the properties professionally valued.

Incorporating the partnership resulted in HUGE tax savings for Mr and Mrs Imran:

There was an added benefit in the creation of a credit directors loan account of £410,000. This meant that the couple had the potential to draw down £410k from the company completely tax free!

The couple saved over £3m in taxes across stamp duty, capital gains tax, income tax and inheritance tax.

Mr and Mrs Hanif were absolutely over the moon that we were able to save so much money. This money could be used to fund their current lifestyle - take the ski holidays they so loved and go on adventures. It would provide for their daughters future and also the future of their business - investing in more properties.

Work with accountants who will look at every possibility to protect the things you care about

Every business owner's goals and circumstances are different.

Although you may not need a property incorporation, tax legislation in itself is huge and not a burden to carry on your own.

The good news is, there are tax saving opportunities out there. You just need an accountant you can trust to look at all the possible legal avenues.

We’re chartered tax advisers and have the skill and expertise to help clients save as much as tax possible - look into our tax diagnostic service to see how we could help you.

Most importantly, we know what family means. If you’re feeling like the balance is off and you need support to be able to prioritise the most important things in life - Bloom accounting is designed for you.

How Mrs Brighton saved £13,500 per year in income tax by changing the share structure of her business

Wed, 07 Jun 2023 09:07:21 GMT

Relatively new to running her own healthcare business, Mrs Brighton didn’t realise she was paying excessive amounts of income tax. She and her husband hoped to retire to their newly-built house in Africa, but money was slipping through the net that could have been going towards retirement.

Feeling frustrated about how much tax she was paying, Mrs Brighton sought our trusted accounting advice to shed some light on what was going on. We soon found a simple tweak could give her enormous savings.

As a new entrepreneur, Mrs Brighton wasn’t aware certain actions could have big tax implications.

After a career working as a nurse and caregiver, Mrs Brighton decided to switch her focus in 2018, setting up her own business providing high-quality in-home healthcare. It was soon generating good revenue, but this success wasn’t reflected in her take-home pay.

Unaware of the tax implications, she was drawing on company funds to make up her salary and dividends.

As an inexperienced business owner, it was an understandable mistake to assume the money earnt was hers. It was her company after all, so she believed she could take it as and when she pleased. However, it meant she wasn’t taking money out in the most tax-efficient way.

The way she accessed her salary triggered excessive amounts of tax to be paid. She needed to find a way of drawing money from the business while minimising tax exposure.

With the idea of retirement slipping further away with each tax payment, Mrs Brighton felt confused and deflated.

When she came to us, we sat down with Mrs Brighton and listened to her challenges and problems. It was understandable she was frustrated; she was putting long hours into the business, not just coordinating her team, but also doing a lot of the care work itself.

To examine where Mrs Brighton could save on income tax, we first had to lay the groundwork.

The financial health of a business can be thought of like a garden, with bookkeeping as the primary maintenance. Making sure you have clear, clean books is like cutting down the overgrowth, allowing you to then see where further work needs to be done.

In other words, only once your accounts are in order can you see what’s really going on in the business. After talking to Mrs Brighton, the first thing we did was introduce her to our bespoke Virtual Finance Office where we got her accounting systems and books cleaned up and up to date.

Her confusion transformed into confidence.

Now able to see the financial health of her business at any point in time, this newfound clarity over her business numbers gave Mrs Brighton peace of mind.

It meant she could make key decisions backed up by clear data; decisions which allowed her to free up her time.

Now it was time to examine how she could extract money from the business while paying minimal tax.

One change to the share structure gave colossal savings.

Discovering Mrs Brighton’s husband had a major role in the operations of the business, we advised her to gift half of her shares to Mr Brighton for the tax benefit it would provide.

The savings were drastic:

Mr and Mrs Brighton now paid £3,000 each in income tax. When they came to us, they were paying £16,500.

It meant a tax saving of £13,500 per year, giving at least £82,500 savings over the next 5 years.

In addition to paying her husband a modest salary, it meant Mr and Mrs Brighton could now extract £100,000 per annum and with paying a minimal level of income tax.

Mr and Mrs Brighton went from worrying about their retirement plans to feeling grateful and relieved.

Now reaping the rewards they deserve from their business, they have more income to spend on their retirement home and personal needs.

Before, Mrs Brighton felt stretched thin, spending most of her time working in the business instead of working on it. Now, she’s able to take a step back and make decisions that allow her to spend time doing what she does best.

You deserve trusted accounting support that gives you the same confidence and clarity.

Running a business is challenging, and even the best entrepreneurs make many mistakes along the way. Bringing on board trusted accounting support helps minimise those errors quickly, saving time, money and taking the weight of running a business off your shoulders.

As chartered tax advisors and accountants, we’re here to provide that expert support so you have time to prioritise the most important things in life.

Whether you’re working towards retirement or want to spend more time with family as your kids grow up, you deserve the freedom and time to spend where it matters most .

If you’d like to find out how our family-centred accounting could support your business, especially if you run a care agenc y , book your Business Breakthrough Session to get started.

B1G1 giving – 20,000 impacts and counting

Tue, 02 May 2023 10:54:25 GMT

Bloom’s partnership with B1G1 began in January 2021, and so far we have created over 20,000 impacts across the globe.

How Buy1Give1 works

Founded in 2007 in Singapore by Masami Sato, B1G1 has since grown into a global initiative with more than 2,700 purpose driven businesses and individuals as members.

B1G1’s mission is simple but powerful: to create a world where giving is a part of everyday business and personal transactions. B1G1 achieves this by enabling businesses to embed giving into their daily operations, and by providing a platform for individuals to give to causes that they care about.

Their charitable giving model is based on the idea of “micro-giving,” which means that small amounts of money can make a big impact. The company works with a network of carefully vetted and trusted giving projects in various parts of the world. These projects focus on a wide range of issues such as education, health, poverty, environment, and more.

Each of the projects can be selected to directly support one or more of the UN Sustainable Development Goals, so it’s easy to align them with your business goals and values.

Bloom’s support for the Sustainable Development Goals

Bloom has chosen UN SDG’s 3: Good Health and Well-Being, 6: Clean Water and Sanitation and 11: Sustainable Cities and Communities as the goals to focus on, however we donate to such a wonderful variety of projects that no goal misses out!

How Bloom gives

At Bloom our mission is to change lives. To make life better for our customers, teams and their families by the work we do...and also to make life better for people we may never meet, and in places we may never travel to.

Just by doing what we normally do together, your business and ours, you’ll also automatically be helping others in wonderful ways. For example:

When a new client signs up with us we will feed school children in Kenya on their behalf for 30 days.
When we file a set of accounts within three months of a year end we'll give 365 days of life-saving clean water to vulnerable people in Ethiopia on their beha lf.
When a client's self assessment tax return is submitted we'll plant a tree on their behalf to improve the enviroment.
And, if you aren't yet a client we'll give 365 days of vitamin supplements to prevent child blindness on your behalf when we get together for a meeting.

We then send each client a Certificate of Gratitude, detailing the impacts they have created by just doing business with us.

Your giving possibilities are endless with B1G1! Interested in joining the initiative? Check out the steps below.

Start giving in four steps

1. Create your B1G1 account

First, you can simply create your account based on your company size. As you begin your giving journey, you can set your giving budget by allocating a percentage of your revenue or simply a fixed amount to start with. Now, you are ready to start creating great impacts. There is an ongoing administration fee each month to be part of B1G1, but the charitable giving amount is flexible and down to you.

2. Select the causes you care about

Just like an online store, you can easily filter and search for projects that match your preferences. From providing a meal to conserving the rainforest, you can find hundreds of tangible opportunities with project costs starting from just one cent. Your impact budget can be spread across many projects to help solve many important issues.

3. Choose a business trigger

Select a core business activity ⎯ such as a sale of a product, interaction with a customer or a special milestone ⎯ and link a specific impact to the activity. You can create multiple Giving Stories and update them periodically, and even automate your Giving Stories by creating automations with the apps you use in your business.

4. Engage your team

B1G1’s Impact Tokens are a great way for your company to let your team members choose the impacts they want to create as well. And the impacts created by your team can also be included in your company’s impact counters so that you can share the progress you’re making collectively as a team. You can also share you team’s achievements on your social media channels, too.

Do get in touch if you have any questions about B1G1 – we’d love to help! Simply contact us on 0116 326 3131 or email hello@bloomaccounting.co.uk .

32 Ways To Get The Maximum Value Out Of Your Business

Mon, 30 Aug 2021 13:17:30 GMT

A question I get asked all the time is: ‘What can I take out of my business?’ and ‘how do I save more tax?’ Well, the quick answer is, ‘there’s up to 32 ways to get value out of your business, tax efficiently.’ Yep, that’s a lot of ways.

But the truth is, not all these 32 ways will be relevant to you and your business, and it’s likely that you’ll already be doing a few of them. But how do you know if you’re maximising every opportunity you could be, to improve your life, your families and your employees?

Value Extracting Tax Diagnostic Review

Well, we have a tax diagnostic review service that will do exactly that for you.

In our Value Extracting Tax Diagnostic review we will analyse your business and personal circumstances against the 32 ways, to identify all the ways you can tax efficiently put things through the business, or take value out of the business, benefitting you, your family and even your employees.

Every business owner can extract loads of value from their business, you just need to know what is relevant for you.

Let’s have a chat

If you’d like to review how much value you’re getting from your business, we’d love to speak to you, book in a call & let’s have a chat .

You’re Not Getting The Tax Advice You Need

Thu, 25 Mar 2021 12:35:35 GMT

There’s an unspoken truth when it comes to tax advice: for business owners, there’s a complete lack of transparency from advisors over what tax advice actually is. This means as a business owner:

... you don’t know what to expect from your accountant

... you don’t know if you are getting all the advice you need

But isn’t ‘really’ anyone’s fault.

Tax advice is an incredibly complex area that hasn’t been set out as a universally defined and priced service before. Like say, bookkeeping. If you need bookkeeping, your accountant will ask you several questions about your business and give you a price based on the requirements of delivery.

Tax advice shouldn’t be any different but currently it is. Well it was until now….

Three Types of Tax Service

We’ve devised a way to define our tax services to make them completely transparent and clear for our customers, and us too!

Our Tax Services are broken down into three areas:

Tax compliance

Helping you pay the right amount of tax that’s due; your year-end accounts and tax return.

Tax advice

Delivery of specific work or planning to improve your tax position, to make a future saving, or get cash back into your business e.g. making an R&D Tax Claim

Tax consultancy

Reviewing your overall affairs & motives and applying tax legislation to their situation, to see where you may benefit from advice in the future.

Most accountants will have a tax compliance service that is priced or built into their accountancy package services; with tax advice delivered and charged for as and when a situation arises.

Tax consultancy though? This is a bit of an unknown. But it’s where the most value sits for you as a business owner. Find out more about our tax consultancy services below.

Our Tax Services

At Bloom we aim to be completely transparent with our pricing and recognise that as with accountancy services, the individual tax requirements of a business are very different.

At each stage of a business’ lifecycle, there are different tax service options to consider, to make sure you are paying the most efficient amount of tax.

Find out more about our tax diagnostic service here .

Like What You See?

If you’d like to have a chat with us about our tax services and find more about what you could be doing, book a call below at a time that suits .