Designed for non-VAT registered businesses, we'll do your bank reconciling so you can relax knowing it's done right, and on time.

Bank reconciliation - non-VAT registered companies

A 12-month plan designed for new business owners who may want some extra guidance around business structure, accounting software setup and training, and more.

We will provide you with guidance and support on what you'll need to do to establish and commence running your new business

We can provide advice on the best business structure for your needs and take care of establishment and registrations

Set up your Xero file so it's optimised for you and give you initial training so you start off in the right way

Preparation of a budget tailored to your business and input into Xero so you can track how you're going

Starter Pack

We will help get your business officially incorporated

Company formation

Designed for sole trader businesses, we'll do your bank reconciling so you can relax knowing it's done right, and on time. Take one less task off your plate.

Bank reconciliation - sole trader businesses

A 12 month plan designed for established businesses. Additional support in the form of management accounts and time with your accountant

Completing quarterly management accounts tailored to your business requirements and aligned to your VAT quarters

Quarterly meetings with your accountant to chat business planning, strategy, or questions about your management accounts

Success pack

The initial setup of your Xero accounting software tailored to your business's needs, plus a one hour training session where you'll learn the best practices for bookkeeping and financial tracking.

Xero setup & training

We prepare your quarterly VAT returns ready for you to review and pay.

Prepare VAT

Before charging rent to your company for use of home costs, it's important to understand all the implications.

TAX  •  16 DECEMBER 2025  •  8 MIN READ

Learn how directors can claim homeworking costs through flat rates, actual expenses, or a formal rental agreement, and understanding the income tax and PPR implications of the rental method.

Use of Home Rental Agreement for Limited Companies

Many directors use their homes as part of running their limited companies, with HMRC providing several ways to account for this. Some approaches are straightforward, while others require more structure and evidence.

Before deciding how to handle the use of home, it's necessary to understand how each method works and the implications of choosing one approach over another. 

The three methods of claiming use of home expenses

Directors have three recognised methods for accounting for the company's use of their home. Each operates under different tax rules, and the choice affects the costs for both the company and the director.

HMRC allows companies to pay employees (including directors) a fixed £6 per week to cover the general costs of working from home if the business does not have an office or the employee’s job requires them to live far away from the office. No receipts are required, and no apportionment is needed, although the individual must be able to provide evidence that they work from home. 

This is the simplest method as it's exempt from personal income tax and is commonly used where the level of home use is modest.

2. Additional household costs (actual extra cost method)

With this method, the company can only reimburse the extra household running costs incurred by working from home. This includes a proportion of increased gas, electricity, and broadband use. It does not include fixed costs such as council tax, rent, mortgage interest, or insurance as these would be payable regardless of whether or not you from home. 

This method requires reasonable apportionment and evidence of additional utility costs.

Some directors opt to enter into a rental agreement with their company. This involves the company paying rent for the use of part of the home. 

This method can provide a more accurate reflection of the cost of dedicated space, but introduces different tax treatment and requires a more structured approach.

When a formal rental agreement is in place

A formal rental agreement is a structured arrangement where the company pays rent to the director for the use of part of their home. Once in place, it changes the tax treatment for both parties as HMRC no longer views the arrangement as an employee expense but as a landlord-tenant relationship.

Under this method, the director allows the company to use a specific part of their home and the company pays a "commercially reasonable" rent in return. 

Although HMRC does not explicitly require a written agreement, it is strongly advisable to have one. A written agreement provides clarity on the area being rented, the rent payable, and the basis of calculation, and strengthens the audit trail if queried.

Determining a "commercially reasonable" rent

HMRC expects the rent charged to reflect genuine business use. A common approach is to apportion household costs based on: 

The number of hours the space is used for business

The extent to which the company occupies the space

Alternatively, directors may benchmark the arrangement by considering local market rates for comparable office space, although most arrangements rely on the apportionment of existing household costs. 

The key point is that rent should be justifiable and not set artificially high. An inflated rent risks HMRC challenge, as it could be viewed as a disguised distribution rather than a genuine rental payment. 

Rent paid to the director is considered a deductible business expense for corporation tax purposes, provided the rent is commercial and the arrangement is properly documented.

This method can therefore create a more substantial company deduction compared to the flat-rate or additional-cost approaches, particularly where a dedicated workspace is used regularly by the business.

Impact of a formal rental agreement on the director's personal income

When the company pays rent to a director under a formal rental agreement, these payments are treated as property income. This means the director must declare the rent received on their Self Assessment tax return.  While the income is taxable, the director can claim a proportion of their household expenses as allowable deductions, reducing the taxable profit. 

The allowable expenses will depend on how much of the property is being rented to the company and for how long. In most cases, directors apportion these costs based on floor area and the number of hours the space is used for business. 

Broadband or telephone costs where the rented space contributes to usage

Only the relevant proportion can be claimed and directors should keep reasonable records to support the calculation. After deducting these expenses, the remaining rental profit is taxed at the director's marginal income tax rate. 

Income tax relief for the relevant proportion of mortgage interest is given at 20% in the tax computation rather than as a deduction from rental profit.

For higher-rate and additional-rate taxpayers, this can result in a noticeable tax change if the level of deductible expenses does not closely match the rent received or if mortgage interest forms a significant part of the expenses. For this reason, many rental agreements are structured so that the rental profit is modest, neutral, or largely absorbed by allowable expenses. 

Impact on Principal Private Residence (PPR) when the property is sold

Entering into a formal rental agreement brings an additional consideration that does not arise under the simpler home office expense methods: the potential impact on PPR relief when the property is eventually sold. 

Normally, PPR relief eliminates Capital Gains Tax (CGT) on the gain arising from the sale of a person's main home. However, HMRC can restrict this relief if any part of the property has been used exclusively for business purposes. The key point is that it is the use of the space that determines whether relief is restricted, not the rental agreement itself. A director does not lose PPR simply because rent is charged to the company. 

PPR becomes an issue only where a room or area is used wholly for business and has no domestic use at all. In that situation, HMRC may treat that portion of the property as outside the scope of the main residence exemption. Only the area used exclusively for business, and only for the period it was used that way, becomes potentially chargeable to CGT. The calculation is normally based on the proportion of the property's floor area and the length of time exclusive-use applied. 

In practice, most directors avoid exclusivity because it's unnecessary to justify a rental agreement. If a room is used for more than one purpose, PPR is normally preserved in full. Even occasional personal use is sufficient to prevent the room being classed as exclusively business-use. For this reason, accountants typically advise clients to maintain some domestic function in the room to ensure PPR relief remains fully available when the property is sold.

Other considerations before setting up a formal rental agreement

Before entering into a rental agreement with the company, directors should also consider practical and non-tax factors.

Mortgage and lender requirements: Some lenders require notification when part of a residential property is let, even to the director's own company.

Home insurance: Policies may require disclosure if the home is used partly for business purposes under a rental agreement

Lease or tenancy restrictions: Leasehold properties in particular may have clauses limiting subletting or commercial use

Record-keeping: Directors must retain evidence of rent payments and the basis of calculations to support both the company's deduction and their own allowable property expenses

It's also important to assess whether a rental agreement is beneficial in practice. For some, the rental income may produce a taxable profit if allowable expenses don't fully offset the rent, resulting in an income tax charge that reduces or eliminates the overall tax advantage.

A rental agreement tends to be most suitable where:

There is a dedicated workspace being used regularly by the company

Property-related running costs are significant

A higher level of commercial structure is desirable

The director is comfortable managing the ongoing administrative and tax obligations

Directors have 3 recognised ways to account for the company's use of their home, each suited to a different level of homeworking. The HMRC flat rate and the reimbursement of additional household costs are both relatively straightforward, low-risk options that work well where the home use is modest or informal.

A formal rental agreement offers a more structured approach and can reflect the cost of a dedicated workspace more accurately. However, it also introduces property income, apportionment of expenses, and the need to avoid exclusive business use if full PPR relief is to be preserved.

Choosing the right method depends on how the home is used, the level of associated costs, and the director's appetite for administration. Taking professional advice helps ensure the approach selected is commercially reasonable, compliant, and suitable for the director's wider tax position.

If you're looking for an accountant for your limited company who can help with not only this but your corporation taxes and accounting as a whole, get in touch or book a free consultation with one of our team.

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Using your home for your limited company: tax implications of a formal rental agreement

JUNOFEM's expansion shows how the right support helps medtech companies grow while staying true to their mission.

CUSTOMER STORY  •  3 DECEMBER 2025  •  6 MIN READ

Junofem's UK expansion story shows how the right financial support helps medtech companies grow smoothly while staying focused on their mission.

JUNOFEM - Taking Women's Health Innovation Further Afield

JUNOFEM began with a simple but powerful idea: women deserve better tools to understand and strengthen their pelvic floor. For too long, pelvic floor symptoms have been something many women quietly manage on their own, despite how common and disruptive they can be. JUNOFEM set out to change that by creating support that is clear, practical, and rooted in science. 

Their device,  femfit®, pairs soft, wearable technology with a guided three-month exercise programme, giving women real-time insight into their pelvic floor function.  femfit® offers clarity, helping women build strength with confidence and making a big impact on symptoms like urinary incontinence, pelvic pain, and pelvic organ prolapse. 

Driven by research expertise and a deep commitment to women's health, JUNOFEM is bringing a fresh and evidence-based approach to an area of wellbeing that deserves far more attention. As they expand internationally, their mission remains the same: to make effective pelvic floor support accessible to every woman who needs it. 

Expanding into the UK offered JUNOFEM a natural next step, with familiar clinical pathways and strong professional connections already in place. But moving a medtech business across borders comes with its own set of hurdles. The most immediate challenge was navigating the UK's regulatory landscape. Establishing JUNOFEM UK Ltd required a local bank account and UK-resident directors, and the process took far longer than expected. As a medical device company, they also needed to meet ongoing compliance requirements that differ from those in New Zealand. 

Operationally, growth brought new pressures. While their relationships with pelvic health physiotherapists provided a strong foundation, building partnerships with larger organisations, including private hospitals required more time and presence on the ground. At the same time JUNOFEM launched a new direct-to-consumer channel through their website and Amazon UK, a move full of promise but one that demands sustained investment and close oversight. 

Each of these steps reinforced how different the operational landscape can be when entering a new country, especially for a business committed to clinical quality and regulatory compliance. 

For JUNOFEM, having the right support during their UK expansion made a meaningful difference. As they expanded, they wanted their financial systems and compliance processes to be set up correctly from the start. Beany stepped in to make that side of growth simpler. With clear guidance, practical support, and a team who understood the nuances of operating across countries, Beany helped JUNOFEM find their feet here in the UK.

Questions were answered quickly, unfamiliar requirements were broken down in a straightforward way, and their day-to-day accounting became easier to manage. Beany also helped streamline their Xero setup and provided clarity around how their financial operations should work as the business grew.

This support meant peace of mind for JUNOFEM. Instead of getting caught up in administrative complexity, they were able to keep their attention on what matters most: delivering effective, evidence-based solutions that improve women's health. 

JUNOFEM's experience has highlighted a few lessons that can make expansion smoother for any growing business:

Understand the setup requirements early: Knowing what a new market expects (financially and operationally) helps avoid delays.

Build strong professional networks: The relationships you develop ahead of time often open the first doors when you enter a new country. 

Invest in good systems from the start: Clear processes and reliable financial tools make growth easier to manage. 

Choose partners who simplify what's unfamiliar: Having support in areas outside your expertise frees you to focus on your core mission. 

JUNOFEM is continuing to build its footprint in the UK, with a focus on reaching more women and strengthening connections across the healthcare sector. Their direct-to-consumer channel is developing steadily, and they plan to keep investing in this space as awareness grows. 
They're also exploring new opportunities to collaborate with larger organisations and broaden access to  femfit® across the country. As the business evolves, JUNOFEM's goal remains clear: to expand their reach while continuing to deliver effective, evidence-based support to women who need it. 

We're an online accountant for UK businesses. Our accounting package covers year-end compliance including end-of-year accounts and tax returns, tax minimisation, and unlimited support. We also provide additional services such as bookkeeping, VAT returns, payroll, management reports and more. ​

If you'd like to discuss your business' accounting and how we can help, book a call with one of our friendly team.

JUNOFEM - taking women's health innovation further afield

Customer story

Discover the most important changes for business owners from the 2025 Autumn Budget.

INDUSTRY NEWS  •  1 DECEMBER 2025  •  4 MIN READ

Learn how the UK Autumn Budget 2025 impacts you and your business - tax, minimum wage, digital record-keeping and more.

Key Points from the UK Autumn Budget 2025 for Business Owners

On 26 November 2025, Chancellor Rachel Reeves presented the UK's Autumn Budget to parliament.

For small business owners, company directors and sole traders, government budgets don't just make headlines. They directly affect your take-home income, cash flow and decisions that shape how you run your business.

The Autumn Budget 2025 sets out several important tax and compliance changes that will start to take effect from 2026 onwards. Below, we've summarised the key points relevant to UK business owners and what they could mean for your business in the months and years ahead.

National Living Wage increases from April 2026

The budget confirmed higher minimum pay rates from 1 April 2026:

For employees aged 21 and over: National Living Wage will rise by 4.1% (50p) to £12.71 per hour

For 18-20 year olds: the National Living Wage will increase by 8.5% to £10.85 per hour

If you employ staff on or near minimum wage, your payroll costs will rise from April 2026. This is especially relevant for labour-intensive businesses or those planning to recruit in the new year.

Employers should plan now to build these increases into their budgets, review pricing where necessary, and make sure growth plans still stack up under higher staffing costs.

Training for apprentices under the age of 25 will be free for SMEs in England.

For small business owners looking to grow their team in a cost-effective way, this significantly reduces the financial barrier to hiring and training younger staff. It could be a smart route for building skills in-house while managing payroll and training costs.

Dividend tax will increase from April 2026

The ordinary and upper dividend tax rates will increase by 2 percentage points from April 2026. This means that many company directors who take a large proportion of their income through dividends will see higher personal tax bills.

If you currently use a low salary and dividends as your main extraction strategy, this may no longer be as tax-efficient from 2026 onwards. For many directors, it may be worth reviewing how profit is taken out of the business ahead of the changes.

Savings and investment income tax will increase from April 2027

From April 2027, taxes on savings income and other investment income will also increase by 2 percentage points.

This will impact business owners who earn interest on savings, hold investment portfolios, or receive non-dividend investment income alongside their business earnings.

Salary sacrifice for pensions to change from 2029

The government has confirmed that National Insurance will apply to both employer and employee salary-sacrifice pension contributions above £2,000 per year from 2029.

Salary sacrifice has been a popular way for directors and employees to make tax-efficient pension contributions. This change will reduce the tax and National Insurance advantage for higher contributions made through sacrifice.

For business owners, it's worth reviewing long-term pension and remuneration strategies now. Alternative contribution methods or earlier planning may be more effective before the new rules take effect.

Making Tax Digital for Income Tax will still start in April 2026

Making Tax Digital (MTD) for Income Tax has not been delayed in the budget and is still moving ahead from April 2026. This will affect many sole traders, landlords, and individuals with business or property income.

Under MTD for Income Tax, you will be required to:

This is a major change in how self-employed people and landlords report their income, and it will significantly increase the importance of good bookkeeping and software systems.

If you're currently keeping manual records or only updating your accounts once a year, this change will require a big shift.

Read more: Making Tax Digital (2025 update)

The government has also confirmed that it's exploring and moving towards e-invoicing as part of its wider tax and reporting reforms. This is likely to come in from 2029.

This is expected to start with VAT-registered businesses and would involve invoices being created, approved and transmitted digitally in a standardised format.

Paper and PDF invoices will gradually be phased out

Digital, structured invoicing will become the norm

Businesses will need compatible software and systems in place

For small businesses, this is another sign that investing in proper accounting software is no longer optional. It is fast becoming essential.

Continued freeze on thresholds means higher tax for many people

Although headline tax rates have not changed much for salaries, income tax and National Insurance thresholds remain frozen until at least 2030. This means that as your income rises with inflation, more of it could be taxed at higher rates. Even if your business is only growing modestly, you could still end up paying more tax overall.

For both employees and directors, this can significantly affect take-home pay over time.

Increased focus on compliance and anti-avoidance

The government is investing more into HMRC's powers to tackle tax avoidance and non-compliance.

Stronger penalties for inaccurate reporting

Faster action against aggressive tax schemes

More data-sharing under digital reporting regimes

For small businesses this does not mean trouble, but it does mean that good record-keeping, correct reporting and sensible tax planning are more important than ever.

What these changes mean in practice for small business owners

All of this points to one clear theme - the way you pay yourself and run your finances may need to change.

Rethink whether dividends are still the best way to extract profits from the company

Adjust your savings and investment strategy ahead of the 2027 changes

Prepare for MTD and make sure your records are digital and in order

Switch to proper accounting and invoicing software (if you haven't already)

Improve your 2-3 year cash flow planning to account for higher taxes

 Business owners who plan early will be in a far stronger position than those who leave this until the last minute.

What the Autumn Budget 2025 means for small business owners

Industry news

Understand what cashflow forecasting is, why it matters, and how to get it right.

FINANCIAL LITERACY  •  24 NOVEMBER 2025  •  5 MIN READ

Understand what cashflow forecasting is, why it matters, and how to get it right. Includes forecasting methods, tools, and how to use your forecast effectively.

Cashflow Forecasting Explained

A cash flow forecast is a tool that helps you predict all cash movements in and out of your bank account over a set period of time.

It gives you visibility over when you might have cash available or when you might run short, by factoring in expected revenue, expenses and other financial activities.

In this guide, we'll cover the importance of forecasting and how to use your cash flow forecast to make business decisions.

It’s often easy to confuse cash flow with profit, but they’re not the same.

Profit is the difference between income and expenses, where cash flow is all about the timing of when cash actually enters and leaves your bank account.

If cash isn’t coming in at the right time or large bills are all due at once, even profitable businesses can run into trouble.

This is where a cashflow forecast is invaluable. 

A cash flow forecast records ALL money coming in and going out of your business, so it includes transactions that won’t be on a Profit and Loss (P&L) statement such as buying assets, repaying a loan, and paying taxes.

The pros and cons of cash flow forecasting

Cash flow is the lifeblood of the business. 

Having a clear forecast of when money is expected to flow in and out of your business gives you the ability to plan confidently even when the unexpected happens.

Like anything, there are always advantages and limitations.

Confidently assess whether you can afford new hires, equipment or investments

Identify periods where cash might run low and be prepared for it

Manage seasonality (highs and lows) with confidence

Secure funding - a forecast can strengthen your case when applying for loans or investment (it can even be a requirement for some banks)

Cash flow forecasts will almost certainly turn out wrong every year in some way. I’d bet that no business person has ever got to the end of the year and compared actual results to their forecast and thought ‘well done, a perfect match’.

The fact is life happens. Things can change that affect cash flow. The process of planning is far more important than the plan itself. The key is to treat it as a working tool, not a fixed plan.  You can update your cash flow forecast as the year progresses so you're prepared for these changes. Often having different scenarios can be helpful so you can see how your cash flow movements change under different circumstances and be well informed.

Depending on your level of skill, and the time and energy you have, there are three ways to prepare a forecast.

Go it alone - access the steps in our article on creating a cash flow forecast.

Lean on software - you can find cash flow forecasting software that links to your accounting software to cut down on manual data entry.

Get a professional to do it - this is a low-fuss way, but you should still be involved in the process by thinking through different scenarios and understanding what drives your business 

This forecast is for informational purposes only. The figures used are entirely made up and not at all reflective of a real business.

Effective forecasting isn’t just about plugging numbers into a spreadsheet.

Uses realistic assumptions and data based on past trends and future plans

Includes timing. Not just how much money, but when it comes in or goes out

Can be updated easily to reflect changes in your business

Is relevant to your business sales cycles, payment terms and seasonality

Factors in different scenarios so you’re prepared for the ‘what-ifs’ (keep reading for some examples)

Ultimately, a good forecast helps you make better decisions.

Once you have a cash flow forecast, you don’t just leave it there.

What is it telling you? What do you need to consider? What happens if you change something in the forecast?

Are there any months where your bank account is negative? - talk to your accountant to come up with the best solution for you to combat this.

Are there months with a surplus of cash? - You could pay down loans which don’t have an early-repayment penalty or save it for future months that are not cash flow positive.

Do you end the year with a cash surplus? - You could consider upgrading your assets or investing/saving the cash.

There can be a lot of ‘what ifs’ when it comes to running a business.

Play with the timing and amounts on your forecast to see how different scenarios impact your cash flow (tip: make a copy so you can still access the original).

Shutdown periods (e.g. over Christmas/New Year)

Comparing your forecast to actual cash flow movement

Xero (and other software providers) make it easy to see your actual cash inflows and outflows each month. 

Compare your forecast against actual figures.​

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