Over the past few years and certainly since the pandemic, employers have begun to understand the importance of supporting their team in ways that make their work/life balance better. Not so long ago, workers might feel appreciated when given a company car or health insurance, now more are looking for elements including paid leave, flexible work arrangements and, increasingly, wellness programmes.

Mental health is certainly high up on the agenda and something every employer needs to take seriously. According to data from health benefits provider, Simplyhealth, one in nine UK workers took time off due to mental health reasons in the past year and over a quarter (27%) of those affected were off for more than two weeks. The figures show that 11% of working adults reported taking sick leave for mental health-related issues – the third most common cause of sickness absence, after minor illnesses (23%) and muscle or joint pain (12%).

First aid provision in the workplace has been mandatory for 45 years, with the Health and Safety (First Aid) Regulations 1981 requiring employers to provide ‘adequate and appropriate equipment, facilities and personnel’ to ensure their employees receive immediate attention if they are injured or taken ill at work.

Now, many businesses are also supporting team members to become mental health first aiders, so they are ready to identify, understand and support someone who may be experiencing a mental health problem’.

At Lewis & Co, we’ve noticed a number of new businesses setting up locally, such as wellbeing coaches – some offering mental health first aid courses – and others providing mindfulness coaching or perhaps yoga or menopause support in the workplace. All of these are fairly new business types and we are here, as ever, to support entrepreneurs like this with their tax and accounts, as they provide their vital services in the workplace.

When it comes to employers, there is an opportunity to benefit from tax relief on employee benefits in kind (BIKs) by deducting the cost of these benefits from their taxable profits, thus helping to lower the employer’s Corporation Tax liability. HMRC does then state that these benefits must be ‘wholly and exclusively’ for the employer’s trade or profession to qualify for tax relief. Understandably, this does leave many business owners confused as to what BIKs they can claim tax relief on and we are here to help with any of those queries.

If you’ve got any questions at all, then please do contact us on 01892 513515 or info@lewisandco.biz

HMRC has announced that the tax relief currently available to employees who are required to work from home will be withdrawn from 6 April 2026. At present, employees can claim a flat-rate deduction of £6 per week (or the actual additional costs if they can provide evidence). From 2026, this relief will no longer be available, unless the employer reimburses the expenses directly.

Currently, employees who are required to work from home and incur extra costs, such as increased utility bills, can currently claim tax relief.

During the pandemic, the Government temporarily relaxed the rules for 2020/21 and 2021/22, allowing anyone working from home because of Covid-19 restrictions to claim the relief. Since then, hybrid and remote working has become more common.

Recent Government checks discovered that over half of claims were made by employees who weren’t eligible. This was because PAYE tax code adjustments were incorrectly carried forward from the pandemic years; or hybrid workers assuming that choosing to work from home qualified them for relief, when the rules only apply where homeworking is a contractual requirement.

From 6 April next year, employees will no longer be able to claim tax relief on homeworking expenses, unless their employer reimburses the costs.

Employers will still be able to reimburse genuine homeworking costs tax-free, so it may be worth reviewing your company’s homeworking policies ahead of the change.

Do get in touch with our team at Lewis & Co, if you’ve got any question: 01892 513515.

While Making Tax Digital (MTD) is getting closer, HMRC is still currently accepting paper tax returns. In fact, figures released in February show 304,000 paper tax returns were filed (2.64% of returns) in 2025.

People who still prefer to submit a paper tax return are required to abide by an earlier deadline than those who file online – and that date, Friday 31 October, is fast approaching.

However, this process potentially still requires a certain amount of digital interaction; not so long ago, HMRC would routinely send out a hard copy tax return to those wanting to submit it this way. A few years ago, this system changed and taxpayers now need to download a blank version of the tax return online. However, if they don’t have access to the Internet, they can call HMRC to request one.

If you are struggling with this 31 October deadline, then give Lewis & Co a call on tel: 01892 513515. Our team can help you to get everything in order to either be prepared for the October date or, alternatively, help to move you over to a digital tax return.

In the 2024 Autumn Budget, the Chancellor, Rachel Reeves, confirmed that the low rate of Benefit In Kind (BIK) tax on company cars would remain low to further encourage companies to adopt electric cars within their businesses.

Currently, BIK tax for zero-emission vehicles is 3% (this increased from 2% in April 2025) and it is set to rise to 5% in 2028-2029 and to 9% in 2029-2030. However, this is still substantially lower than for petrol or diesel cars, which could typically be 20% and above. In fact, for vehicles with emissions of 51g/km CO2 and over, rates will increase to 38% in 2028-29 and 39% in 2029-30.

In a further attempt to incentivise the use of electric cars, company car tax rates for hybrid and ICE cars are also set to rise, with the rate for cars with emissions of 1 – 50g/km of CO2, including hybrid vehicles, rising to 18% in 2028-29 and 19% in 2029-30.

In the UK, a BIK refers to a non-cash benefit provided by an employer to an employee. These are perks or benefits given in addition to salary and they often have a monetary value. HMRC considers many of these benefits as taxable, which should be reported. In addition to company cars, BIK examples include private medical insurance, season ticket loans and gym memberships paid by an employer.

Company car tax is not just dependent on fuel type and CO2 emissions but also the car’s value (if you have a more expensive car, you will pay more tax) and your income tax band.

You may decide to buy a car personally or continue using your current car. Clients then ask us if they can save up all their fuel receipts and add them to their expenses? However, you can’t do this, as included in those will likely be plenty of times you used your car for personal use.

As the owner – and an employee of your limited company – you can currently claim 45p per mile for each trip taken for business, in the same way sole traders account for their business miles. This essentially covers your fuel and any wear and tear on your vehicle. You can claim 45p for the first 10,000 miles and then, after that, the allowance drops to 25p per mile.

If you do opt to buy your car through your limited company, then it is treated as it would be as any asset you buy and you can claim the cost of the car against your business through Capital Allowances.

You may, alternatively, decide to lease a car through your limited company. In which case, you can put down your lease payments through your business as an expense. However, CO2 emissions still play their part. If the car you lease is over 50g/km in CO2 emissions, you can only claim 85% of the lease payments.

It’s worth remembering that the above only applies to company cars; vans, lorries and trucks are treated in the same way as plant and machinery. The rationale for this is that there are many jobs which can’t be done efficiently without a van, so you can claim the full value of the van through your limited company accounts.

Also, if you are a sole trader, you can’t purchase a car through your business, as there is no legal difference between you and your business.

If you are unsure how to account for your vehicle within your business, then do call our team at Lewis & Co on 01892 513515.

Companies House has announced that, from 18 November 2025, all company directors and people with significant control (PSCs) will be legally required to verify their identity under the Economic Crime and Corporate Transparency Act 2023. This requirement is part of wider reforms to help prevent ‘the misuse of UK companies’.

This date (18 November) marks the start of a transition year where all directors must verify their identity, before filing their company’s next confirmation statement. For example, if your company’s confirmation statement is due on 31 March 2026, all directors must be verified by that date.

You’ll need to provide the personal code and a verification statement for each director on the confirmation statement. If you do not do this, your company will not be able to submit the filing. If you’re a director of multiple companies, you’ll need to do this for each company separately, using the same personal code each time.

Also, from 18 November, you’ll need to provide identity verification details to incorporate a new company or be appointed to an existing company.

If you are a client of Lewis & Co, as an Authorised Corporate Service Provider (ACSP), we can verify your identity on your behalf.

Identity verification requirements for limited partnerships, corporate directors of companies, corporate members of Limited Liability Partnerships (LLPs) and officers of corporate PSCs, will be introduced at a later date.

Details outlining how to verify your identity as either a company director can be found here: https://www.gov.uk/guidance/verify-your-identity-for-companies-house

Here in the UK, we love a viral food sensation – whether that’s Dubai chocolate, hot honey, matcha or anything ‘smashed – while ‘foodies’ are always on the look out for the latest world cuisine to try.

Nearby Tunbridge Wells has recently seen Vietnamese street food arrive with the opening of the chain Pho, while Mexcellent is also fairly new in town, offering ‘authentic Mexican and Latin food’. Due to open soon is Kochi, which focuses on the latest TikTok sensation, Japanese souffle pancakes!

Opening a restaurant is a big decision for any potential business owner but, nowadays, there are a variety of different ways paths to achieving that. One way that a food operator can ‘test the market’ is by partnering with an established business that has a kitchen, such as a pub. Again, in Tunbridge Wells, Roddyburger – which has run from a site in Camden Road for a number of years – started from a pub kitchen.

On the company’s website, owner Richard Oddy explains: “The pandemic and lockdown came out of the blue and I found myself with a job and without access to a good burger. So, after a bit of investigation, I approached a local pub what was closed, rented their kitchen and set about creating the best possible burgers.”

More recently, Korean food has arrived in Tunbridge Wells, thanks to Korean Street Baguette, created in the kitchen of The Prince of Wales Pub in the centre of town. Here people can enjoy delicious Korean dishes, including crispy fried chicken and traditional rice bowls known as bibimbaps. While, also on offer are the company’s original baguettes.

Korean Street Baguette began life selling through apps including Deliveroo, Just Eat and Uber Eats and many food businesses start like this from what are sometimes known as ‘ghost kitchens’ (with no physical dining space). Food apps typically ask for a percentage of each sale but, in return, businesses benefit from marketing and deliveries and can, of course, take this into account when setting prices

Alternatively, we’ve seen other food businesses begin trading from vans – with the flexibility to move from regular pitches in towns to providing food options at festivals and fetes. Again, this can be a good way of ‘testing the water’ locally before taking the plunge to launch a physical restaurant (with its associated costs). Other entrepreneurs run restaurant experiences in their own homes – such as Sofia’s Columbian Kitchen in Tunbridge Wells and Crows Nest Supper Club in Crowborough.

Buying into a franchise is another way of launching a food business and it comes with the support and guidance of an established brand. McDonald’s, Subway, Burger King, Creams, Kokoro, German Doner Kebab and Costa, for example, are all high street brands run by individual business owners.

The British Franchise Association states: “Starting a business is inherently risky, but franchising significantly reduces these risks. With a success rate of over 95% for new franchisees, compared to just 60% for independent startups, franchising provides a safer route to business ownership.”

Here at Lewis & Co we have worked with a number of food franchisees over the years – helping them to secure their particular franchise and supporting them as they build their business.

Some franchisees take over an existing franchise operation – rather than launching a new site – and, in this case, we can help with some initial due diligence, such as understanding the previous years’ accounts and highlight any discrepancies or aspects that might need questioning.

We also provide our accountancy services to a number of other food-related businesses, including the Earl Grey Tearooms, just along the road from us in Southborough. They offer delicious coffee and hot chocolate, as well as tea and stunning cakes, among other treats. We also work with a number of pubs and restaurants, a local butcher and a fish and chip shop, as well as some street food and outside catering businesses.

If you run a food business of any kind and would like some help with your accounts – because you’ve simply got a lot on your plate – we’d love to hear from you; tel: 01892 513515 or email: info@lewisandco.biz

 

While the pandemic had many downsides, it did remind us of the beautiful holiday locations here in the UK and, while airports are busy again, it seems we are still finding the time for a staycation. According to a recent survey by Holiday Cottages, 61% of respondents said they were ‘more likely to go on a staycation than previously’ and 49% confirmed they’re ‘definitely intending’ to go on one in the next year.

Apparently, the types of staycation which are popular currently are ones where dogs can come too or where a group of people enjoy a break together under one roof – whether that’s a hen weekend or a multi-generational break, perhaps to celebrate an anniversary.

Here at Lewis & Co, we boast a number of clients who own holiday homes, which they let out. There are special tax rules for rental income from properties that quality as furnished holiday lettings (FHL) and we can support clients in that situation.

If you let properties that qualify as FHLs:

• You can claim Capital Gains Tax reliefs for traders (Business Asset Rollover Relief, relief for gifts of business assets and relief for loans to traders).
• You’re entitled to plant and machinery capital allowances for items such as furniture, equipment and fixtures.
• The profits count as earnings for pension purposes.

To benefit from these rules, you need to work out the profit or loss from your FHLs separately from any other rental business.

The property must be available for letting as furnished holiday accommodation letting for at least 210 days in the year; and it must be let commercially as furnished holiday accommodation to the public for at least 105 days in the year. Also, it cannot be let to the same person for more than 31 consecutive days.

If your holiday let meets the criteria to be a FHL, HMRC will potentially allow you additional tax benefits compared with traditional residential landlords. Again, we can talk you through these benefits, as well as VAT implications and what sort of business the holiday let should sit within – sole trader, limited company etc.

That said, international tourism is booming again and, according to Which, the best destinations to visit in 2025 include Nuuk in Greenland, Ghana, Singapore, Cape Town and Saudi Arabia.

We count several independent travel agents among our clients. While they are busy making sure their clients travel to some amazing destinations, we are there supporting them to keep their finances running smoothly. Again, our experience in this area means we are well positioned to advise clients who own this type of business.

Here in Kent and Sussex, good weather – and we’ve had lots of sunshine recently – always brings a boost for the hospitality sector. If you’re in the pub or restaurant trade, you’ll also need an accountant by your side who understands your business. At Lewis & Co, we’ve been working with hospitality businesses for nearly 40 years and we’d love to talk to you about how we can support you.

If you’ve got any questions at all, please do contact us on 01892 513515.

If you’re a sole trader, then your second payments on account deadline is on the horizon – Thursday 31 July this year – when you are expected to pay half of your estimated tax for the 2024/2025 tax bill. This figure, which appears on your most recent tax statement (which you can access online) is based on the profit you reported in your 2023/2024 tax return.

If you are worried about the looming bill, there is a way to potentially reduce it. When calculating your Payments on Account (POA) – which are payments made towards your following year’s tax and NI contributions – your tax bill will have been divided in half.

If you have been organised enough to have already submitted your accounts for 2024/2025 and you know that you had less self-employed income during that period than in the previous 12 months, it is possible to approach HMRC and ask them to reduce your payments on account. If you strongly suspect that you didn’t make as much profit that year – perhaps due to a change in your circumstances – then it’s worth getting those accounts sorted out now.

You do need to be sure of your numbers; if you simply approach HMRC and have reduced them too much, you could face interest charges and even a penalty.

If you file your accounts online, there is a section ‘reduce my payments on account’.

It’s important to note that you do need to tell HMRC that you’d like to reduce your payments on account – don’t just send them less money by 31 July or assume that they have checked what you’ve already submitted post-April this year. If you don’t get in touch, it will simply show up that there is an amount outstanding and you’ll be charged interest.

If you’ve got any questions at all, then please do contact us on 01892 513515 or info@lewisandco.biz

 

A common discussion we’re having with clients recently is that their business is going well and making money but their outgoings are continuing to increase – such as fuel and utility bills and the rising costs associated with employing people. We also hear that cash flow is causing our clients problems, effected by issues such as their invoices not being paid promptly. This means that some are struggling to pay their self-assessment tax, corporate tax and/or VAT bills on time.

While we can certainly help our clients with their business planning and finding strategies to tackle tight cash flow, we can’t approach HMRC on their behalf to talk about any troubles they are having paying their tax bills.

We know that some clients are concerned that, while HMRC was quite understanding about late payments etc during the pandemic, their attitude might have changed. However, if you do have problems and you speak with HMRC, they are usually understanding and will suggest payment plans, known as Time to Pay (TTP) arrangements, to help you manage any tax debts through instalments.

We would usually recommend that you make that phone call as HMRC can’t assist you with your particular situation if they don’t know about it.

Interestingly, HMRC reports that over 90% of its TTP arrangements are completed successfully – which is a positive thought when times seem tough.

A TTP arrangement allows individuals and businesses to spread their tax payments over time. These plans are tailored to your financial situation and can cover various taxes, including Self Assessment, VAT, PAYE and Corporation Tax. They can also include penalties and interest.

Some payment plans can be set up online, without contacting HMRC directly; and you may be eligible to set up a payment plan online if you meet specific criteria:

Self Assessment
You can set up a payment plan online if you:
• Have filed your latest tax return.
• Owe £30,000 or less.
• Are within 60 days of the payment deadline.
• Do not have any other payment plans or debts with HMRC.

PAYE
If you owe tax from PAYE, you can set up a payment plan online if you:
• Have missed the deadline to pay an employer PAYE bill.
• Owe £100,000 or less.
• Plan to pay your debt off within the next 12 months.
• Have debts that are five years old or less.
• Do not have any other payment plans or debts with HMRC.
• Have sent any employers’ PAYE submissions and Construction Industry Scheme (CIS) returns that are due.

VAT
You can set up a payment plan online if you:
• Have missed the deadline to pay a VAT bill.
• Owe £100,000 or less.
• Plan to pay your debt off within the next 12 months.
• Have a debt for an accounting period that started in 2023 or later.
• Do not have any other payment plans or debts with HMRC.
• Have filed all your tax returns.

Interest accrues from the due date, until the debt is fully paid. However, setting up a TTP arrangement can help you avoid or reduce late payment penalties.

TTP plans are flexible; if your financial circumstances change, you could think about increasing your payments if your situation improves or, having had a conversation with HMRC, you could potentially look at reducing them if your situation worsens.

If you’ve got any questions at all, then get in touch on: 01892 513515.

The sun has been shining here in ‘the garden of England’ recently and, when that’s the case, there are many of us who probably think ‘wouldn’t it be nice to work outside’. Of course, that idea often passes once the rain starts to appear again.

Here at Lewis & Co, we support businesses working across many different sectors, including quite a few limited companies and sole traders who do indeed work outside – including gardeners involved with anything from mowing lawns and general maintenance, to landscape gardens and people who provide services including new driveways, patios, decking and fencing. We also have some tree surgeons on our list.

How these clients approach their work is varied. Some have been involved with gardening, for instance, for many years, while others have come to it as a side-hustle type venture, maybe during the pandemic, or have even retired from their long-time careers and are now earning some extra cash.

As with any business, it’s important to keep proper records, which can be time-consuming if you have a number of customers. While some gardeners might actually use the equipment provided by the homeowner, such as their lawnmower, others, such as tree surgeons might need to invest in quite heavy machinery.

Any smaller pieces of equipment and tools you might use within your working day can be claimed as allowance expenses. It might be that you only need some larger pieces of equipment occasionally and you can claim for renting or leasing items like this – maybe a crane or a woodchipper. When it comes to larger pieces of equipment, such as a lawn mower, then these will typically be listed as capital allowances and we can advise you on that.

If you need specialist work clothing – such as eyewear, hardhats or steel-toe capped boots – these would be included as allowable expenses.

If you are working in a garden, it’s sensible to have public liability insurance and the cost of that is typically covered as an allowable expense. You can also claim for your business mileage between clients, parking fees and vehicle repairs/maintenance.

It goes without saying that any business that is primarily based outside will face the challenges of British weather and the seasons, which will lead to cash flow variations throughout the year. At Lewis & Co, we can help you to structure a business plan that takes into account these seasonal variations.

If you work outside and would like to talk to an accountancy firm which understands your business, give us a call on: 01892 513515 or email: info@lewisandco.biz