Category: Business

How Company Car Tax Bands Work and What You Will Pay

Posted on by Rida Ahmed

In the UK, most company cars (and vans) used for private purposes fall under benefit-in-kind taxation. The value is calculated using the vehicle’s list price, while the applicable percentage is determined through tax bands for company cars, which are based on CO₂ emissions and the type of fuel used. 

In practice, HMRC publishes percentage bands for each tax year – you multiply the car’s list price by the relevant percentage to get the taxable benefit. Low-emission vehicles attract much lower percentages, while high-emission cars top out at 37%. The taxable value is further reduced if the employee pays anything towards the cost, uses the car only part-time, or has a car has low CO₂ emissions.

How Compay Car Tax Bands Are Calculated

Benefit calculation

The BIK rate is a percentage of the car’s original list price (including VAT and options). HMRC sets the percentage in the CO₂ band. For example, a petrol/diesel car emitting 145 g/km might be taxed at 35% of its list price, whereas a new electric car is taxed at only a few percent.

Emission bands:

Cars are grouped by CO₂ emissions (g/km) and, for hybrids/plug-ins, by their electric-only range. Each band has a set percentage. Lower bands (cleaner cars) pay less tax. The table below summarises the 2025/26 and 2026/27 company car tax rates. (From April 6, 2026 new rates apply.)

CO₂ emissions (g/km) & electric range2025/26 rate (%)2026/27 rate (%)
Zero emission (fully electric)3 %4 %
1–50 (≥130 mile EV range)3 %4 %
1–50 (70–129 mile range)6 %7 %
1–50 (40–69 mile range)9 %10 %
1–50 (30–39 mile range)13 %14 %
1–50 (<30 mile range)15 %16 %
51–5416 %17 %
55–5917 %18 %
60–6418 %19 %
65–6919 %20 %
70–7420 %21 %
≥75 (all higher bands)21 %–37 %21 %–37 %

Table: Company car BIK rates for tax years 2025/26 and 2026/27 by CO₂ emissions and electric range.

Why Electric Cars Have the Lowest Tax Rates

Fully electric cars sit at the lowest end of the tax scale.

For the 2025/26 tax year, the rate is 3%. This increases slightly to 4% in 2026/27.

Plug-in hybrids with a long electric range (130+ miles) follow the same pattern. This makes them a strong option for reducing overall tax liability.

Also Read: VAT on Car Hire in the UK – What Businesses Need to Know

How Plug-in Hybrids and Mid-Range Cars Are Changing

Other plug-in hybrids are also seeing small increases. Each band rises by 1 percentage point depending on electric range.

For example:

  • 70–129 miles range → slight increase
  • 40–69 miles range → slight increase
  • Below 30 miles range → higher tax compared to longer-range models

Cars with moderate emissions (51–74 g/km) also move up by 1%.

  • A car emitting 65–69 g/km increases from 19% to 20%

Higher emissions continue to push vehicles into more expensive brackets.

When These Changes Came Into Effect

The updated rates apply from:

  • April 2025 (2025/26 tax year)
  • April 2026 (2026/27 tax year)

These changes form part of a gradual shift rather than a sudden increase.

What to Expect in the Coming Years

Tax rates for electric vehicles will rise slowly over time.

Planned increases include:

Even with these changes, electric cars will remain the most tax-efficient option.

Get Free Consultation
Phone
Call Anytime 0203 883 4777
Get Free Consultation

The Highest Tax Rates for Petrol and Diesel Cars

Petrol and diesel vehicles continue to sit at the top end of the tax scale.

  • The maximum rate remains at 37%
  • This applies once emissions go above 160 g/km

In simple terms, the higher the emissions, the higher the tax.

How it works

The employee’s taxable benefit is calculated by:

  1. This is the car’s list price, which includes any accessories and VAT.
  2. Applying the appropriate percentage from the table above.
  3. Multiplying by the employee’s income tax rate (e.g., 20% or 40%) to find the tax due.

Example: A £30,000 car with 0 g/km CO₂ (electric) has a 3% BIK in 2025/26. The taxable benefit is 3% of £30,000 = £900. A 20% taxpayer would pay £180 in tax (20% of £900).

Special cases:

  • If you pay something towards the car’s cost (e.g., contribute to the lease or petrol), such payment reduces the taxable value.
  • Part-time availability (less than 15 hours/week) also reduces the taxable benefit.
  • Employer-provided fuel for private use is a separate charge: free petrol/diesel triggers a fuel benefit (using a fixed multiplier × BIK%). For 2026/27 the fuel multiplier is £29,200 (up from £28,200). Electric charging at home is treated differently and generally has no fuel benefit charge if no fuel is given.

Staying up to date:

HMRC guidance is updated each year. For example, HMRC’s table (Appendix 2) was updated in April 2026 to include the new 4% EV rate. Always check the latest GOV.UK guidance or use HMRC’s online calculator to estimate your specific tax.

Read: 5 VAT Strategies For Car Garages To Use In 2026

Key Points on Low-Emission Vehicles

  • Electric cars (0 g/km) enjoy very low tax. From April 2026, their BIK rate is 4%, up from 3% previously. The charge is based on list price, not fuel costs.
  • Plug-in hybrids are taxed by their declared CO₂ and electric range. A PHEV with a 100 miles range might pay 10–14%, whereas the same model with only 30 miles would pay 14–16%. The ranges and rates are in the table above.
  • Future changes: The government has signalled that EVBIK will rise by 2% each year until 2029. This was confirmed in the 2024 Autumn Budget. Consequently, the BIK rates for even very clean cars will gradually increase – though they will remain much lower than for fossil-fuel cars.

How We Help Businesses Manage Tax on Company Cars

At Apex Accountants, we help businesses and employees navigate company car taxation and other benefits. Our services include:

  • Tax planning for company cars: Advice on choosing cars, salary sacrifice schemes, and calculating company car BIK to minimise tax costs.
  • Payroll and Benefits administration: Managing P11D returns, payroll adjustments and ensuring the correct reporting of car benefits.
  • Company tax and VAT advice: Ensuring employer expenses and deductions (leasing, maintenance) are handled correctly.
  • Employee benefits consulting: Structuring car and fuel benefits packages that meet business needs and compliance requirements.

Whether you’re an employer arranging a fleet or an employee reviewing your company car deal, our experts can clarify the rules and optimise your tax position.

Get Free Consultation
Phone
Call Anytime 0203 883 4777
Get Free Consultation

FAQs About Tax on Company Cars

When do car tax rates change? 

Company car BIK rates update every tax year (6 April). Recent uprating occurred in April 2025 and April 2026. The rates are normally set in Budget or tax announcements and then published by HMRC.

How do I know which CO₂ figure to use for my car? 

HMRC gives tables in terms of grams per km under the WLTP (new) or NEDC (old) test cycles. Use the official CO₂ figure from the manufacturer’s spec. (When in doubt, HMRC’s calculator or your payroll department will use the correct value.)

What about tax on fuel costs? 

If your employer pays for your private fuel, a separate fuel benefit charge applies. The car fuel multiplier is £29,200 for 2026/27. Electric charge at home generally isn’t taxed as fuel.

Can I reduce my car tax? 

Yes. Paying a contribution toward the car’s value or insurance reduces the taxable benefit. Taking a cheaper car or an older car (with a lower list price) also lowers the overall tax.

Where can I find official information about tax on cars and other vehicles?

All rates and rules are published on GOV.UK. See HMRC’s Company car Benefit— appropriate percentage tables for each year and HMRC guides on company car tax.

Pitch Deck Tax Points For Business Services Providers To Reassure SEIS Investors

Posted on by Nida Umair

Early-stage business services companies face two key challenges when raising capital under the Seed Enterprise Investment Scheme (SEIS), especially when presenting the pitch deck tax points: 

  1. Convincing investors of the commercial potential of what may be seen as a “slow growth” trade.
  2. Demonstrating that the tax incentives which reduce investor risk are credible, compliant and clearly explained.

For a successful pitch deck for investors, you must address both. Clear, well-structured tax messaging gives investors confidence that they will receive relief and that you (the founder) understand compliance. 

As the UK government statistics show, in the year 2023-24, SEIS investment rose to £242 million—up 51% on the previous year—after SEIS limits were expanded in April 2023.

Why tax messaging matters for business services providers

Business services companies often compete with higher-risk, high-growth tech firms for the attention of seed investors. Tax reliefs available via SEIS help level the playing field by offsetting risk. 

Some key data and insights:

  • According to the British Business Bank guidance, businesses under SEIS must be UK-based, trading for less than three years, have assets below £350k and have fewer than 25 employees.
  • HMRC statistics show that after the SEIS reforms in April 2023 the number of companies raising under SEIS in 2023-24 rose to 2,290 (from 1,835 in 2022-23) and the amount raised was £242 m (from £160 m) – an increase of 51%.

What this means for your pitch deck tax points:

  • Investors will expect a clear explanation of how they benefit from tax relief.
  • They will expect clear proof that your business meets the SEIS eligibility criteria.
  • You must link funding use, growth potential and exit strategy through the lens of tax relief.
  • If your business service model looks relatively low growth, the tax story becomes even more critical.

Key Tax Reliefs For Investors

When investors review your deck, they quickly scan for familiar reliefs and ask themselves “what’s my real risk”. 

Here are the reliefs you must present clearly.

Relief Details
Income Tax Relief Investors can claim 50% income tax relief on investments up to £200,000 in a tax year.
Capital Gains Tax (CGT) Exemption If the shares are held for at least three years and the company qualifies, gains on disposal are exempt from CGT.
CGT Reinvestment Relief Gains from other assets reinvested into SEIS-eligible shares may get relief on 50% of the gain (subject to conditions).
Loss Relief If the investment fails, the net loss (after income tax relief) can be offset against income tax or CGT.

Why each of these matters

  • Income tax relief halves the investor’s upfront cost, reducing downside.
  • CGT exemption gives the promise of a tax-free upside on exit — very attractive.
  • Reinvestment relief offers further flexibility and enhances appeal to serial investors.
  • Loss relief reduces real downside, which is crucial for higher-risk seed stages.

In your deck, include worked examples (e.g., “£20,000 invested → £10,000 net cost after relief”) so investors can visualise the benefit.

What To Include in Your Pitch Deck Tax Points

To reassure SEIS investors, your pitch deck should include a tax-focused section with these slides:

Eligibility & Compliance Slide

  • Confirm your company meets SEIS criteria: UK-based, <3 years trading, <25 employees, assets < £350k.
  • Show that your business is not in an excluded trade (e.g., property development, finance).
  • State whether you have or will apply for HMRC Advance Assurance.

Investor Tax Benefits Slide

  • List the tax reliefs for investors (income tax, CGT exemption, reinvestment relief, loss relief).
  • Provide a simple table or bullet list with numbers.
  • Include a worked example to show net cost, best-case and downside scenarios.

Round Structure Slide

  • Show how much you are raising, how much falls under SEIS, and if there is an EIS follow-on.
  • Clarify that SEIS shares will be first and that you will comply with the “risk-to-capital” condition.

Use of Funds Slide

  • Break down how the SEIS funds will be spent (e.g., hires, marketing, technology).
  • Confirm funds will be used within 3 years.
  • Link each spend category to growth/margin improvement.

Risk-to-Capital & Exit Slide

  • Acknowledge that the investment is high-risk.
  • Explain likely exit routes (trade sale, acquisition, dividend flow) and tax implications.
  • Show a plausible exit scenario with tax-free gain + downside scenario with loss relief.

By including these slides, you demonstrate to investors that you have thought through tax risk, compliance, and returns — not just the business model.

Research Insights & Market Outlook

For business services providers in particular, the following research-based points strengthen your tax-message credibility:

  • The recent SEIS statistics show 71% of companies raising under SEIS in 2023-24 raised over £50,000, and about 45% over £100,000; around 19% raised over £150,000.
  • Geographic spread is still heavily biased, as London and South East companies accounted for 65% of SEIS investment in 2023-24.
  • A commentary from London Business School points to high churn among UK start-ups and an environment where tax-incentivised investment schemes (like SEIS) help compensate for growth-stage funding bottlenecks.
  • The legal commentary outlines that SEIS reliefs are subject to strict compliance and can be withdrawn if conditions (such as three-year holding or qualifying trade) are breached.

Implications for your pitch deck:

  • Demonstrate you understand and will manage compliance risk.
  • If you are not based in London/South East, highlight your regional advantage or mitigation of typical locational investor bias.
  • Show that you are offering a credible funding size (e.g., >£50k) and that investors will get the same relief mechanics others are seeing.

Seven Tax-Point Checklist for Your Pitch Deck

Use this internal checklist to make sure you cover relevant tax points that reassure investors:

  1. The company meets SEIS qualifying criteria (trade, size, assets, age).
  2. Investor reliefs clearly stated (income, CGT, reinvestment, loss).
  3. Worked numerical example of investment net cost + upside/downside.
  4. Round structure detailed: SEIS amount, timeline, and EIS follow-on if any.
  5. Use of funds aligned to growth, spend categories, and the three-year rule.
  6. Risk-to-capital statement: high risk, illiquid, founders hold equity.
  7. Exit scenarios with tax treatment: best case (tax-free gains) + failure case (loss relief).

If you cover all seven, your tax story will be robust and investor-friendly.

How Our SEIS services For Business Service Providers Can Help

We support business services providers in building pitch decks and tax structuring for SEIS. Our services include:

SEIS eligibility & compliance review

  • Check trade, size, assets, and company history against HMRC rules.
  • Assess if your business is “service provider” eligible and free from exclusion risk.

Tax-point pitch deck drafting

  • Create tax slides aligned with investor expectations.
  • Develop worked examples of relief and exits to include in your deck.

Advance assurance & application support

  • Assist with the HMRC Advance Assurance application and documentation.
  • Guide you through SEIS3 form issuance and investor tax relief claims.

Round structuring & modelling

  • Define SEIS vs EIS sequencing, share structure, and valuation impact.
  • Model investor outcomes under different exit scenarios (success & failure).

Ongoing compliance and records

  • Monitor your spend, ensure you meet the three-year holding rule, and track relief.
  • Prepare for future fundraising without jeopardising early investor relief.

Conclusion

For UK business services providers raising seed capital, the tax story is not a nice-to-have—it is a key component of your investor pitch.

Well-explained SEIS reliefs reduce investor-perceived risk, enhance net returns, and position you competitively against tech-heavy peers. The statistics show more companies are using SEIS and raising meaningful sums; you must match the investor’s expectation for clarity, compliance, and tax-outcome description.

Building a successful pitch deck for investors with structured tax slides (eligibility, reliefs, round structure, use of funds, and exit treatment) demonstrates you take the investor’s tax position seriously, not just the business case. With this approach, you strengthen both credibility and fundraising potential.If you want specialist support, Apex Accountants provides SEIS services for business services providers, including pitch-deck tax wording, advance assurance applications, investor modelling, and full SEIS compliance. You can contact our team today for expert guidance on making your SEIS raise investor-ready.

Key Considerations for Corporation Tax for Business Services Providers in 2026

Posted on by Farazia Gillani

As we move into 2026, understanding the impact of corporation tax for business services providers is crucial. For businesses offering services such as consulting, IT services, marketing, and facility management, corporation tax rates can significantly affect financial planning and growth strategies. 

In this article, we’ll break down the key tax rates and explain how they apply to service businesses in the UK, providing insights into planning and compliance strategies.

Corporation Tax Rates For Service Businesses in 2026

In 2026, the UK’s corporation tax system will continue to operate under the following rates, effective from 1 April 2025:

These rates will remain unchanged for the financial year starting 1 April 2026. However, it’s important for business owners to be aware of how these thresholds can impact their tax liabilities and planning decisions.

Key Points to Remember:

  • Profits up to £50,000 are taxed at 19%.
  • Profits over £250,000 are taxed at 25%.
  • For profits between £50,000 and £250,000, a marginal relief applies to reduce the effective tax rate between 19% and 25%.

These thresholds and corporation tax rates for service businesses affect how providers calculate their tax liability and how they should plan for tax payments, investment, and growth strategies.

Why These Rates Matter for Business Services Providers

If you’re running a business in the service sector, whether you’re offering consulting, IT services, or facility management, these corporation tax rates directly impact your financials. Here’s why:

Taxable Profits For Business Services Providers: 

Taxable profits for business services providers are calculated by deducting allowable business expenses from your total income. This includes costs such as staff wages, office supplies, marketing expenses, and any other legitimate business costs.

Profit Growth Considerations For Businesses: 

Many service-based businesses don’t have large upfront capital investments, unlike manufacturing firms. This means that most service firms, especially small or start-up companies, are more likely to benefit from the small profit rate if their profits stay below £50,000.

Service Firms Profit Margins: 

Service firms often operate with higher margins, meaning that once you start scaling, crossing the £50,000 threshold can push your tax rate into the marginal relief zone. This is where tax planning becomes crucial to minimise the effective rate and ensure you’re making the most of the available tax reliefs.

Common Scenarios and What to Watch

Below are some typical scenarios and tax considerations for service businesses in the UK:

  1. Start-up Service Firms
    • Profits remain below £50,000: You will be taxed at the 19% small profits rate.
    • Strategy: Keep a close eye on profit levels, as even small increases could push your business into the marginal relief range.
  2. Growing Firms
    • Profits increase between £50,000 and £250,000: Marginal relief applies, which results in an effective tax rate between 19% and 25%.
    • Strategy: As your company approaches the £50,000 threshold, it’s essential to start planning for potential tax increases and explore how marginal relief can benefit you.
  3. Established Providers
    • Profits exceed £250,000: You will be taxed at the full 25% rate.
    • Strategy: At this level, aggressive tax planning may be needed to mitigate the tax burden, including investing in capital allowances or considering profit-shifting strategies.
  4. Group/Associated Companies
    • If you operate multiple service lines under separate companies or as part of a larger group, the £50,000 and £250,000 profit thresholds may be split between entities.
    • Strategy: Review your group structure and ensure you’re maximising tax efficiency across companies.
  5. Accounting-Period Mismatch
    • If your accounting period doesn’t align exactly with the tax year, different rates may apply during the year.
    • Strategy: Ensure your tax advisors are aware of any mismatches to avoid miscalculating your corporation tax.

Strategic Considerations for Service Businesses

To manage your corporation tax obligations effectively, consider the following strategies:

  • Review Your Company Structure:

If you operate multiple service lines under separate entities, it may be beneficial to keep each entity’s profits below the £50,000 threshold to benefit from the 19% tax rate.

  • Track Profit Growth Carefully:

Monitor your company’s financial performance to anticipate when your profits might exceed £50,000. The marginal relief is essential for optimising the tax rate for businesses with profits between £50,000 and £250,000.

  • Plan Expenses and Investment:

Service businesses can reduce taxable profits by investing in allowable expenses. For example, paying for employee training, upgrading IT infrastructure, or investing in energy-efficient equipment can help lower your profit before tax.

  • Keep Clear Records of Associated Companies:

If you have multiple companies in a group, it’s crucial to track their relationships and profits carefully. The thresholds for the small profits rate and main rate can be divided among associated companies.

  • Invest in Tangible Assets (if applicable):

Service companies with significant capital expenditure (e.g., buying property or expensive equipment) should explore allowances, such as capital allowances, that may reduce taxable profits.

How We Help With Corporation Tax For Business Services Providers in 2026

At Apex Accountants, we provide comprehensive services to help business services providers navigate corporation tax:

  • Tax-Planning Advice: We can guide you on how to structure your company to minimise tax and maximise growth opportunities.
  • Profit Forecasting: We help you forecast profits and identify when you may cross thresholds (£50k/£250k), ensuring proactive tax management.
  • Preparation and Filing of Tax Returns: Our team offers complete service for preparing and filing corporation tax returns (CT600) and computations.
  • Review of Associated Company Status: Our team assesses your company group structure and how the thresholds for corporation tax rates apply.
  • Ongoing Compliance Monitoring: As your business grows, we’ll monitor your tax status to keep you compliant with changing regulations.

Conclusion

Corporation tax in 2026 will continue to operate with a 19% rate for profits up to £50,000 and 25% for profits exceeding £250,000. For service businesses, understanding where your profits fall within these thresholds is essential to managing your tax efficiently. With careful tax planning and timely action, you can reduce your tax burden and optimise growth.

Let Apex Accountants assist you with tailored tax strategies that align with your business goals. Contact us today to discuss your corporation tax position.

Frequently Asked Questions (FAQs)

What is the corporation tax rate for companies with profits under £50,000?

The corporation tax rate for companies with profits under £50,000 is 19%. This rate applies to small firms or start-ups with lower profit margins, offering a more tax-friendly environment for growth.

What rate applies if profits are over £250,000?

If your company’s profits exceed £250,000, the corporation tax rate is 25%. This is the main rate applicable to larger businesses, impacting firms with significant profit generation.

How does marginal relief work?

Marginal relief applies to companies with profits between £50,000 and £250,000, gradually reducing the effective tax rate from 25% to 19%. This helps businesses avoid a sharp tax increase when their profits rise.

Does the rate change in April 2026?

There are no announced changes to corporation tax rates in April 2026. The existing rates of 19% for small profits and 25% for profits over £250,000 will remain in place.

What counts as taxable profits for a service firm?

For service businesses, taxable profits include income from services, investment income, and chargeable gains, after subtracting allowable expenses such as wages, office supplies, and other operating costs.

Are there different rules for manufacturing businesses?

While the basic corporation tax rate structure remains the same, manufacturing businesses may qualify for additional tax reliefs or allowances related to capital investment, unlike service businesses that typically have fewer capital expenses.

What if I have multiple companies in a group?

If you have multiple companies in a group, the small profits rate and main rate thresholds may be divided among them. This requires careful planning to ensure each company remains tax-efficient.

When must I file and pay corporation tax?

Corporation tax returns must be filed using the CT600 form within nine months and one day after your accounting period ends. Payment must be made by the same deadline to avoid penalties.

Can service-business firms invest to reduce taxable profits?

Yes, service firms can reduce taxable profits by making legitimate business investments and claiming allowable expenses. This includes items such as office upgrades, staff training, and equipment purchases that support business operations.

What are the risks of overlooking the thresholds?

Overlooking profit thresholds can result in paying more tax than necessary or missing out on marginal relief. It may also lead to penalties for inaccurate filings or misreporting profit levels, which could affect cash flow.

2026 Strategic Growth Strategies for Business Services Providers in UK

Posted on by Nida Umair

As we look towards 2026, business services firms in the UK are entering a period of transformation. With market conditions continuing to evolve, it’s crucial to adopt strategic growth strategies for business services providers that leverage their strengths, adapt to challenges, and position them for long-term success. 

In this article, we’ll explore the strategies that can help business services firms thrive in the coming years, focusing on sustainable growth, operational excellence, and the adoption of new technologies.

What Clients and Businesses Are Concerned About

Business services providers and their clients are facing several key concerns as they move into 2026:

  • Revenue Growth Amid Cost Pressures: With rising operational costs and margin squeeze, firms need to find ways to maintain or grow revenue.
  • Technology Adoption: Firms want to embrace new technologies but worry about potential disruptions to service delivery.
  • Talent Acquisition: Finding the right people to deliver services effectively is a constant challenge.
  • Tax and Compliance Changes: Keeping up with shifting regulations and tax changes remains a top priority for firms to stay compliant and avoid penalties.
  • Financial Support: Businesses are seeking financial solutions and advisory services to guide them through uncertain times.

Addressing these concerns will be crucial for business services firms looking to stay competitive and achieve growth.

Market Insights for 2026

Looking ahead, there are several trends that will influence business services firms in the UK:

  • Cautious Optimism: UK firms are generally optimistic about 2026, with growth expected to be driven by new business, export opportunities, and innovation.
  • Technology Adoption: With the rise of digital transformation, AI, and automation, firms are increasingly adopting technology to enhance efficiency and client service.
  • Global Expansion: UK businesses are searching for opportunities beyond domestic borders, with international expansion on the agenda.
  • Regulatory Changes: New tax, data protection, and AI regulations are expected to impact businesses in the coming years, making compliance a key focus.

These insights highlight the importance of adopting a forward-thinking strategy that embraces change while ensuring operational efficiency of business services firms.

Key Growth Strategies For Business Services Providers 

Here are actionable strategies that can help business services firms position themselves for growth in 2026:

1. Define Your Growth Agenda

Set clear targets for revenue, margins, and service offerings. It’s important to focus on high-value clients rather than volume-based growth. By targeting the right clients and services, firms can build a more sustainable business model that can weather market fluctuations.

2. Strengthen Service Delivery and Operational Capability

To drive growth, it’s essential to continuously improve service delivery. This can be done by:

  • Mapping out key processes to identify inefficiencies and areas for improvement.
  • Leveraging data and analytics to track performance and client satisfaction.
  • Adopting automation to reduce manual tasks and improve accuracy.

Working on the operational efficiency of business services firms can reduce costs and enhance service quality, which will drive client satisfaction and loyalty.

3. Embrace Technology and Digital Enablement

2026 will see technology playing a central role in driving growth. To stay competitive, firms should:

  • Invest in technology to enhance service delivery and improve client experiences.
  • Implement AI-driven tools to streamline processes, improve decision-making, and stay ahead of regulatory compliance.
  • Use cloud-based platforms and automation to improve efficiency and scalability.

By embracing technology, business services firms can position themselves as innovative leaders in the market.

4. Develop New Services and Markets

To stay competitive, firms should look beyond their existing service offerings and explore new opportunities. This could involve:

  • Identifying new sectors or geographic markets to expand into.
  • Offering new service models such as subscription-based services or value-added advisory.
  • Differentiating services to stand out in a crowded market.

Developing new services allows firms to diversify their revenue streams and remain adaptable to market changes.

5. Focus on Client-Centric Growth

To build long-term growth, business services firms must focus on deepening client relationships. This can be achieved by:

  • Actively seeking client feedback to understand their evolving needs.
  • Offering tailored solutions that address specific client pain points.
  • Providing value-added services, such as strategic advisory, that go beyond basic service offerings.

By putting clients at the centre of their strategy, firms can build stronger, more loyal relationships, which will contribute to sustainable growth.

6. Manage Risk and Compliance

Risk management is an essential part of any growth strategy. Firms should:

  • Stay ahead of regulatory changes and ensure they are fully compliant with tax, data, and industry-specific regulations.
  • Monitor external risks, such as economic shifts or changes in government policy, to adjust strategies accordingly.
  • Implement strong internal controls to mitigate financial and operational risks.

By managing risk effectively, firms can avoid potential setbacks and continue to focus on growth.

How Our Expertly Crafted Growth Plan For Service Businesses Can Help You

At Apex Accountants, we understand the unique challenges faced by service businesses. Our expertly crafted growth plan is designed to address the specific needs of your business, ensuring you can scale effectively and manage the complexities of financial planning, compliance, and operational efficiency. 

Here’s how we can help:

  • Accounting and Bookkeeping: We provide accurate and timely financial management, allowing you to focus on growing your business.
  • Tax Advisory Services: Our experts can help you navigate complex tax regulations and provide strategic tax planning advice.
  • Financial Support and Cash Flow Forecasting: We help businesses plan for future growth by providing detailed financial forecasts and cash flow management.
  • Business Process Review: We offer consulting services to help you streamline operations, reduce inefficiencies, and improve profitability.
  • Technology Advisory: We assist firms in adopting the right technologies, from automation tools to AI solutions, to improve service delivery and operational efficiency.
  • International Expansion Support: Our team can guide you through the process of expanding into new markets, ensuring compliance and maximising opportunities.

Why Choose Apex Accountants

At Apex Accountants, we understand the unique challenges faced by business services firms. Our team brings over 20 years of experience in helping firms navigate the complexities of tax, accounting, and business strategy. 

We offer tailored solutions that not only meet your immediate needs but also help you draft a successful growth plan for service businesses. With our support, you can focus on growing your business while we take care of the financial and compliance aspects.

Conclusion

As business services firms look ahead to 2026, growth is possible with the right strategies in place. By focusing on service delivery, embracing technology, exploring new markets, and staying client-focused, firms can position themselves for success in a rapidly changing landscape. The time to act is now, and with the right support, your firm can thrive in 2026 and beyond. If you’re ready to take the next step, get in touch with Apex Accountants today to discuss how we can help you achieve your growth goals.

Sustainable Business Growth for Artisan Workshops Without Losing Craft Identity

Posted on by Maliha Javaid

Artisan workshops bring creativity, heritage, and individuality into the UK’s economy, but sustaining growth can be a complex journey. Many makers reach a stage where passion alone is not enough to expand. Costs rise, demand becomes unpredictable, and the challenge of managing staff, tax, and compliance begins to weigh heavily. Achieving business growth for artisan workshops requires more than skilled craftsmanship. It needs structured planning, financial clarity, and strategies that protect authenticity while building stability. With the right guidance, artisan enterprises can scale without losing their identity. At Apex Accountants, we provide the support and expertise to help workshops grow with confidence while staying true to their craft.

Challenges of Scaling Craft Workshops

Growth for artisan businesses is rarely straightforward. Makers often highlight:

  • Maintaining authenticity: High volumes can force standardisation, weakening the handmade feel.
  • Pricing pressures: Balancing rising costs against customer willingness to pay.
  • Role changes: Owners shifting from makers to managers.
  • Cashflow gaps: Seasonal or irregular income complicating long-term planning.
  • Regulatory burdens: VAT registration, Making Tax Digital, corporation tax, and payroll compliance are creating added strain.

These challenges highlight why artisan business growth requires careful financial planning.

Growth Strategies with Financial Focus

UK artisans can expand while preserving authenticity by pairing creativity with sound financial strategy. This means going beyond day-to-day bookkeeping and focusing on broader planning:

  • Scenario planning: Budgets and forecasts—built on conservative, moderate, and ambitious assumptions—help balance investment with sustainable income.
  • Bookkeeping discipline: Accurate records highlight profitable products and protect margins.
  • Correct pricing: Monitoring labour and material costs supports fair, sustainable pricing.
  • Cash flow tactics: Practical ways to manage liquidity include requesting deposits for custom orders, setting aside reserves during busy seasons, and using the Annual Investment Allowance (AIA) for tools.
  • Funding support: Grants, R&D tax relief, and even crowdfunding provide resources for reinvestment in eco-friendly materials and digital platforms.
  • Staff management: Payroll and pension services make hiring and team expansion less stressful.

By tracking simple performance measures—such as average order value, material cost percentage, and customer acquisition costs—makers gain clearer insight into where their workshops are thriving and where adjustments are needed. With the right financial structure, scaling craft workshops becomes realistic without losing authenticity.

Accounting and Tax Support for Artisan Workshops in UK

Apex Accountants provides tailored services that support artisan business growth in the UK:

  • Virtual CFO services: Strategic financial direction without a full-time hire.
  • Cloud accounting: Real-time reporting and digital compliance.
  • Tax planning: Guidance on VAT, corporation tax, and structuring for growth.
  • Payroll and pensions: Smooth administration when expanding teams.
  • Bookkeeping: Clear cost tracking through busy and quiet seasons.
  • HMRC support: Expert handling of audits, investigations, or subsidy reporting.

Case Study: Scaling Sustainably in the UK

One artisan pottery studio in Northern England grew its sales by introducing workshops and online orders. With Apex Accountants managing bookkeeping, VAT, and payroll, the owners avoided administrative overload. They could focus on production quality, while forecasting and tax planning prepared the business for expansion into new markets. This shows how professional financial support allows artisans to grow without losing authenticity.

How Apex Accountants Support Business Growth for Artisan Workshops

Scaling artisan workshops is more than increasing production capacity. It involves building a financial foundation that supports long-term stability without losing authenticity. Many makers struggle with cashflow gaps, unexpected tax bills, or compliance with complex regulations. That is where Apex Accountants step in.

We provide end-to-end financial services tailored to the artisan sector. This includes support with corporation tax, VAT registration, payroll, and pensions, as well as guidance on R&D tax relief and capital allowances for reinvestment in new tools or sustainable methods. Our Virtual CFO services give artisans access to strategic financial planning without the cost of a full-time executive.

By combining cloud accounting, bookkeeping, and tax planning, we help workshops stay organised, forecast with confidence, and prepare for growth. With Apex Accountants, artisan business growth becomes achievable, sustainable, and aligned with the values that make handmade products unique.

Conclusion

Artisan businesses in the UK face the challenge of expanding while preserving the individuality that makes their craft special. Growth requires more than creativity; it also depends on financial discipline, smart planning, and a clear view of future opportunities. With professional support, workshops can manage tax responsibilities, stay compliant, and prepare for the next stage of their journey without sacrificing authenticity.

At Apex Accountants, we bring tailored expertise to guide artisans through every step of their development. Whether it’s tax planning, payroll, pensions, or Virtual CFO services, our role is to provide clarity and confidence in financial decisions. By working closely with artisans, we help transform passion into sustainable success, ensuring that every workshop can flourish while staying true to its craft.

4 Reasons Why IT Businesses Should Look For Outsourcing

Posted on by Rana Zubair

Technology has made it much easier for businesses to operate on a global scale. Whether you’re just starting out as an entrepreneur or have been in business for a long time, you will probably have to deal with some form of tech at some point. Outsourcing core business processes comes with its own set of upsides and downsides, which is why it’s important for business owners to understand the benefits and drawbacks before making any final decisions on the matter.

What is Outsourcing?

Outsourcing is the practice of transferring certain business processes to outside suppliers. This can help companies save costs and increase efficiency by focusing on their core competencies while offloading non-core tasks to specialists. When you outsource, you’re hiring someone outside of your company — often a company or an individual located in another country — to perform a specific task. Outsourcing is a popular trend among IT businesses to hire someone who specialises in a certain field.

4 reasons why you should consider outsourcing your core business processes

Reduced Costs: With outsourcing, you don’t have to hire a full-time employee to manage and maintain yourIT systems. Instead, you can hire a company to do it on a per-job basis. This way, you only pay for what you need and don’t have to pay for benefits or a full-time salary.

A Variety of Expertise: When you outsource, you have access to professionals who have years of experience in a specific field. For example, you can find companies that specialise in IT infrastructure management and use them to help you create a robust and reliable system.

Flexibility: Outsourcing allows you to scale back or ramp up your contracts whenever necessary. Often, outsourcing companies offer short-term contracts that allow you to work with the flexibility to change your needs at any given time.

Expert Insight: If you don’t have in-house experts who can provide advice and recommendations, outsourcing is a great way to get expert insight.

There are drawbacks of outsourcing as well. When you outsource, you have to go outside of your company to find experts. However, when you bring in outside companies or individuals, you lose the ability to build real and meaningful relationships. It’s important for business owners to maintain a level of empathy for their customers. Outsourcing also means giving up control over the systems that you’re using. You don’t have any control over the infrastructure that you’ve hired someone to manage. You don’t have any control over the systems that are used to host your data. You don’t have any control over the people who are working inside of your organisation. Unfortunately, outsourcing comes with a high degree of uncertainty. It’s almost impossible to predict how much you’ll pay for outsourcing services. You don’t know how long your projects will take or how much they’ll cost. You don’t know if you’ll be able to find a company that’s willing to work with your budget.

HMRC and tax implications of outsourcing:

Outsourcing is seen very carefully by HMRC in terms of IR35 and employed / self-employed scenario. If the contractor is under IR35, the contractor will be deemed as an employee of the company. HMRC has suggested a to0l which could be helpful to decide the employed / self-employed status of an individual.

Final Thoughts:

The world has become more and more connected, and it has never been easier to outsource your business’s IT needs. Technology makes it possible to hire experts from around the world and have them manage your data and systems without ever having to meet in person. Technology is also making it easier to hire experts from countries where the cost of living is lower than in the UK. There are a lot of advantages to outsourcing. While outsourcing has its benefits, it also comes with some drawbacks. It can be harder to develop real relationships with outsourced experts. Furthermore, the costs can be unpredictable, and it may be
difficult to hire people from countries where living costs are lower.

 

Next Step:

Book a free consultation now.

Income excluded from a property business

Posted on by Mohsin Khan

HMRC publishes a list of income streams that are excluded from a UK property business. The list includes fishing concerns, hotels and guest houses, tied premises, caravan sites, lodgers and tenants in your own home, extra services to tenants and letting surplus trade accommodation. In most cases the income from these activities will be taxed as income of a trade and not as property income.

In addition, there are certain receipts that can arise out of the use of land, and which are specifically excluded by statute from a rental business. These include yearly interest, income from the occupation of woodlands managed on a commercial basis, income from mines and quarries and income from farming and market gardening.

There is also a £1,000 property income allowance that applies to income from property (including foreign property). If a taxpayer’s annual gross property income is £1,000 or less the amount is exempt from tax and does not need to be reported on a tax return.

Source: HM Revenue & Customs Sun, 28 Nov 2021 00:00:00 +0100

Dividend tax increase announced

Posted on by Rana Zubair

The 1,25% increase in NIC contributions from April 2022 will be mirrored by a similar increase in the tax charge on dividends. From April 2022, the dividend tax increases will apply as follows:

  • Basic rate taxpayers will see an increase from the present 7.5% to 8.75%.
  • Higher rate taxpayers will see an increase from 32.5% to 33.75%.
  • Additional rate taxpayers will see an increase from 38.1% to 39.35%.

This change will apply UK-wide. It will be scored at the Budget and legislated for in the next Finance Bill.

Dividend tax is charged on taxable dividend income an individual receives that falls outside of the personal allowance (£12,570 in 2021-22) and the dividend allowance (£2,000 in 2021-22). Taxable dividend income excludes, for example, dividends on assets held in ISAs.

Affected basic rate taxpayers are expected to pay, on average, an additional £150 on their dividend income in 2022-2314 . Affected higher rate taxpayers are expected to pay, on average, an additional £403 on their dividend income in 2022-23. Additional and higher rate taxpayers are expected to contribute over 70 per cent of the revenue from this increase in 2022-23.

Source: HM Revenue & Customs Wed, 08 Sep 2021 00:00:00 +0100

Post cessation receipts and payments

Posted on by Rana Zubair

There are special rules for the taxation of post-cessation receipts and expenses after a trade has ceased. These provisions also apply to professions and vocations as they apply to trades.

Tax relief may be available for post-cessation expenses of a trade, although expenses still have to satisfy the wholly and exclusively test and be revenue in nature in order to qualify for relief. In order to be an allowable post-cessation expense, the trade must have ceased and the expense would have been deductible in calculating the trading profits. Post-cessation expenses must be set against post-cessation receipts arising in the same period as the expense before any other method of relief can be considered.

There are a number of different ways in which post-cessation expenses can be relieved These depend on the person incurring the expenditure and the type of expenditure incurred. An expense specifically relating to the cessation itself is not an allowable expense.

Source: HM Revenue & Customs Tue, 17 Aug 2021 00:00:00 +0100
Book a Free Consultation