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SPRING 2025 NEWSLETTER

March 12, 20255 min read

Welcome to this quarter’s newsletter, packed with practical tips and updates to help your business thrive.  We have chosen to highlight a wide selection of ideas as well as some practical pointers.  As always, if you would like to discuss any of the items mentioned below, please use the contact information at the foot of the newsletter.

With best wishes,

Niall and the ODA Probusiness team.

ACCOUNTS MANAGEMENT & REPORTING IDEAS:

Optimising Payment Processes with Advanced Solutions

To enhance payment efficiency and streamline financial transactions, we’re highlighting two powerful tools: WISE Banking and MODULR.

    • WISE Banking: facilitates transparent and cost-effective international fund transfers, perfect for global transactions.
    • MODULAR: manages complex payment flows with ease. This flexible platform ensures reliability and efficiency, saving you time and boosting customer satisfaction.

Both solutions are designed for seamless integration with cloud-based accounting and payroll software, improving accuracy and efficiency.

Leveraging Management Reporting for Strategic Decision-Making

Utilisation of management reporting tools within your accounting software is essential for informed business analysis:

    • Enhanced Financial Decision-Making: Real-time financial reports provide critical insights into business performance.
    • Improved Accuracy and Compliance: Automated reporting minimises errors and ensures regulatory adherence.
    • Strategic Cash Flow Management: Comprehensive reports facilitate effective monitoring of financial flows.
    • Data-Driven Forecasting: Historical data and trend analysis support strategic planning and budgeting.

We can help configure customised reports tailored to your specific business requirements, enabling you to derive actionable insights from your financial data.

TECHNICAL & PRACTICAL UPDATES:

Key Updates on Tax and National Insurance Regulations

    • National Insurance: from April 6th, the Employer’s National Insurance rate will increase to 15%. The Employment Allowance will be raised to £10,500, subject to eligibility criteria. The Employee National Insurance rate remains at 8%.
    • Director’s National Insurance: Ensure compliance with the special scheme for optimised contributions.
    • End of Tax Year Planning: With the conclusion of the tax year on April 5th, we advise reviewing your tax liabilities and considering strategic financial planning, including pension contributions.
    • Making Tax Digital for Income Tax Self-Assessment (MTD for ITSA): This is a biggy. From April 2026 HMRC are going to launch their quarterly reporting for sole traders and landlords again. Initially it’s taxpayers with qualifying income exceeding £50,000 who will be required to comply from April 2026, and those with income exceeding £30,000 from April 2027. We can of course offer guidance on preparing for these changes.

Making Tax Digital (MTD) is a significant shift in how individuals and businesses in the UK manage their tax affairs. Here’s a breakdown of its effects on landlords and the self-employed:

Key Changes and Effects:

    • Digital Record-Keeping:
        • MTD mandates the use of compatible software to maintain digital records of income and expenses. This replaces traditional paper-based methods or basic spreadsheets.
    • Quarterly Submissions:
        • Instead of a single annual Self-Assessment return, those affected will need to submit quarterly updates to HMRC. This means providing summaries of income and expenses four times a year.
    • Final Declaration:
        • At the end of the tax year, a final declaration will still be required to finalize income and tax calculations.
    • Phased Implementation:
        • The rollout of MTD for Income Tax Self-Assessment (ITSA) is being phased:
          • From 6 April 2026: Those with annual business or property income exceeding £50,000 must comply.
            • From 6 April 2027: Those with income exceeding £30,000 must comply.
    • Impact on Landlords:
      • Landlords will need to adapt to digital record-keeping and quarterly reporting. This requires choosing and implementing compatible software.
        • It affects landlords based on their property income, so even those with smaller portfolios may be included.
    • Impact on the Self-Employed:
      • Self-employed individuals face similar requirements: digital record-keeping and quarterly submissions.
        • This aims to provide HMRC with more real-time information and potentially reduce errors.

Landlords and self-employed individuals should begin to prepare for these changes by familiarising themselves with MTD compatible software and understanding the new reporting procedures.

Landlord Financial Management

We provide comprehensive support for our landlord clients, including the provision of Excel templates and recommendations for efficient financial management tools, such as https://www.usehammock.com/.

Professional Financial Guidance and Consultation

We are committed to providing expert financial guidance and supporting your business growth. Why not contact us to schedule a consultation and discuss how we can support your business.

MEET THE TEAM:

Nas Bashir – Nas is the newest addition to our team, and is a qualified accountant and member of ACCA. He has recently become a father and is loving every moment. When he is not accounting, he is cooking after recently discovering a love for all things culinary.

Lory Baker – Lory  has joined our team as a Trainee Accountant, she will be studying towards becoming a Chartered Accountant under the watchful eye of our reporting manager, Erik.

When out of the office, she spends her time hiking in the countryside and enjoying nature’s offerings. 

 

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