It’s that time of year again!

Paula Veysey Smith • 5 January 2019

Yes, it’s that time of year again! The decorations are down, left overs gone and kids about to go back to school. We all knuckle down and get back to work with new resolve and resolution; for us in the accounting world that couldn’t be more true as . . . . . . . . the 31st January looms!! If December is about goodwill to all men (and women) then January is about good income to the tax man (and woman)!


Tax returns, and payments, are due in by the 31st January – and as I have said before, this is not a target but a deadline! Please don’t wait till 11:59pm on Thursday 31st January 2019 because it is likely that the HMRC systems will already be down. I am pleased to say that the clients I look after are well trained, most returns filed and those not will be very shortly. This is one of the joys of employing the services of a professional; we know what we are doing and when we need to get it done by!


So, I thought I’d answer three questions I’m often asked about personal tax:


1. Why does the tax year end on the 5th April?


Good question. This actually dates back to 1582 when Pope Gregory XIII ordered a change in the calendar from the Julian which had been used since 42BC. To cut a long story short, it wasn’t until 1752 that the British caught up with all the changes and until this year our tax year started on the 25th March which was the old New Year’s Day. In order to ensure no loss of income the Treasury decided to still run a 365 day year, and adjusting for a leap year brought the new tax year end to the 5th April . . . and this date has remained unchanged ever since!


2. What are payments on account?


This is the most asked question! Basically, when your tax bill is over £1, 000 (with some exceptions) you will have to make a payment on account towards your next years tax. This is usually half of the amount of tax that you are due to pay. The other half is due on the 31st July. What this means is that when you make you next return the following January you should have paid most if not all of you tax for the year if your income has stayed relatively stable. You will have to pay any balance of tax you owe and of course the first payment of account for the following year. You are able to apply to reduce payments on account if your income has reduced but be careful – if your tax bill hasn’t gone down and you haven’t paid the correct payments on account you could be charged interest by The Revenue.


3. Do I still need to complete a self assessment tax return?


This is always a good question to ask. There are very good reasons why you may need to complete a return as a one off, for example, capital gains tax. It is relatively simple to both apply to make a return and also inform HMRC when it is no longer relevant. Another example would be if you were self employed but then went back into employment. The self assessment tax return is basically a year end summary of your earnings and the tax you have paid; if you receive income from difference sources then you will need to complete a return. So if you are employed but rent property you will need to complete a return, and that is also the same for a company director as you may receive income from dividends. However, it is always good to check whether you still need to complete a return and if not make HMRC aware. I would say that if you’re earnings are only through PAYE employment you should not also be completing a return but if you are not sure please seek assistance of a professional.


Self assessment tax is complex and with the help of a professional you will be able to not only to complete your return on time but also maximize all the tax reliefs available. Please do contact us if you are still struggling with your return; we will be able to complete this for you and you may be pleasantly surprised with some of the tax reliefs you didn’t know you were able to claim.


Paula

S is for Specific

by Paula Veysey-Smith • 3 May 2026
Your New Year’s resolutions haven’t failed, they just need a sharper edge. Here's how one simple shift can change everything. “We make New Year's resolutions — let's call them goals. But they can be a bit vague. The way to make them happen is to actually define them better.” It's that time of year when those bold January intentions have quietly faded into the background. "Get fit." "Lose weight." "Grow my business." Sound familiar? You're not alone — and more importantly, you haven't failed. Your resolutions just need a better framework.

MTD for Income Tax Is Here: What It Means for You

by Paula Veysey-Smith • 13 April 2026
HMRC’s new system Making Tax Digital for Income Tax Self-Assessment has now arrived! This isn’t just a regulatory update. It’s a shift in how your records are kept, how often you report, and what you will need to do throughout the year. What’s changing for you: Under MTD for Income Tax, if you’re a sole trader or landlord within scope: You’ll need to keep digital records Quarterly updates will need to be digitally submitted to HMRC An End of Period Statement (EOPS) will need to filed A Final Declaration will be needed to finalise your tax position for the year In short: instead of one annual deadline, your tax reporting becomes a year-round process. Why using compliant bookkeeping software is now essential? To meet MTD requirements, HMRC requires fully digital record keeping and submissions . Manual spreadsheets alone are no longer sufficient You’ll need to use MTD-compliant bookkeeping software Sending your accountant paper records or incomplete information will cause delays The upside (it’s not just compliance) While MTD is mandatory, it also brings real benefits: Clear visibility of your tax position throughout the year Better cash flow planning Fewer surprises at year-end What support do you need to navigate this new system? The support of qualified accounting professionals is now more necessary than ever. We don’t expect you to navigate this alone and here’s how MPower Accounting can ensure that you not only comply with, but thrive under, this new reporting requirement. We’ll help you choose and set up the right software We work with trusted platforms such as Xero, QuickBooks, FreeAgent and others. We’ll recommend what fits your business best and get everything set up correctly. We’ll ensure you stay compliant Review your records regularly Submit your quarterly updates accurately and on time Handle all year-end submissions We’ll take the stress off your shoulders With the right system in place: Your records stay up to date automatically We can spot issues early You avoid last-minute pressure and surprises All we’ll need from you to make MTD work smoothly, is access to your chosen bookkeeping software, regular uploaded receipts so we can keep records current and a little of your time when there are questions. The more up-to-date your records are, the more value and proactive advice, we can provide. Your role is simple but important. Letting us take the strain of compliance will save you time and cause significantly less stress, enabling you to focus on what is important, that is running your business successfully. Next steps If you haven’t already: Speak to us about getting set up on MTD-compliant software Let us review your current bookkeeping process Make sure you’re ready for quarterly reporting

Why Cheap, Outsourced Bookkeeping Could Cost Your Business More

by Paula Veysey-Smith • 24 March 2026
When choosing an accountant, it’s natural to be drawn to lower fees. However, if your accountant outsources bookkeeping, especially overseas, it can lead to hidden risks, poorer service and long-term costs for your business. Here’s what you need to consider: Service Quality May Be Lower Higher risk of errors, misclassified transactions, and inaccurate reports Bookkeeping completed less regularly, usually only at key deadlines, eg, VAT quarter No dedicated bookkeeper which can be contacted Less Ongoing Support Little to no ongoing support from UK based accountant Less control and oversight from your accountant Slow response to queries and issues taking longer to resolve Cheap Fees Can Lead to Higher Costs You may pay more later to fix errors or redo work Risk of fines or penalties due to late or incorrect filings Your time being wasted with identifying errors and chasing a response Impact on Your Business Inaccurate financial data makes it harder to make confident decisions Delays can affect cash flow planning and reporting deadlines Frustration and lack of trust in your financial information and accountant What to Look For Instead Accountants who have UK based in house bookkeepers Clear communication and quick response times Consistent, reliable handling of your financial records Continued support and advice through the whole year Key Takeaway The cheapest option isn’t always the best value Investing in quality bookkeeping saves time, reduces risk, and gives you peace of mind The MPower team is proudly based in the UK, with every member carefully selected for their expertise and experience. Our role goes beyond simply completing bookkeeping tasks—we provide valuable insights and practical suggestions based on your financial data. We believe in building strong, partner-like relationships with our clients. That means we’re here for you all year round, whether you have a quick query or need deeper insight from your numbers to support better business decisions. We have welcomed many new clients to our portfolio who, initially enticed by the cheaper rate, have become disillusioned and disappointed with their existing out-sourcing accountants. Understanding that cheap is not the best option, they have thrived with the support and availability our team provide. Choosing the right accountant is about more than price, it’s about ensuring your business has accurate, timely financial information you can depend on and the support of an accountant who is readily available, at any time of the year. This is the service that MPower strives to provide, to any and every client!
Woman in blue sweater smiles while working on laptop at desk with headphones.

New Year Resolutions for a Stronger and more Successful Business

by Paula Veysey-Smith • 5 January 2026
As accountants, January is when we see optimism at its highest and inboxes at their fullest. A new year brings fresh energy, new goals, and the promise that this will be the year that your business really moves forward. But as the month moves on and realities hit, the elation and determination to press on with these new goals starts to fade and often die completely. The difference between a resolution that sticks and one that doesn’t is simple: clarity , practicality , and consistency . So instead of vague promises like “earn more” or “work less,” here are some realistic New Year’s resolutions that can genuinely help you build a stronger, more sustainable business. 1. Get Clear on Your Numbers (Not Just Your Turnover) One of the most powerful resolutions you can make is to truly understand your financial position. Turnover alone doesn’t tell the full story. Profit, cash flow, and margins matter far more. Ask yourself: Which services or products are most profitable? Where is cash getting stuck? What costs could be reduced without harming quality? Commit to reviewing your numbers monthly, not just at year-end. Confidence grows when decisions are backed by facts, not guesswork. 2. Improve Cash Flow, Not Just Sales Many businesses fail while still “making money” on paper. Cash flow is the lifeblood of your business. This year, resolve to: Invoice promptly and clearly Review payment terms Chase overdue payments consistently (and professionally) Small changes here can dramatically reduce stress and give you more freedom to plan ahead. 3. Price for Value, Not Fear A common issue I see is business owners under pricing, and resisting rate increases, because they fear losing customers. The result? Long hours, high pressure, and limited reward. A strong New Year resolution is to: Review your pricing Understand your true costs Charge in line with the value you deliver The right clients respect fair pricing. Better pricing attracts better clients. 4. Build Systems That Save Time If everything depends on you or a small team, your business will always feel heavy. Systems create breathing space. Resolve to: Document key processes Automate where possible Use software to reduce manual tasks Time saved can be reinvested in growth, strategy, or simply enjoying life outside the business. 5. Invest in Support (You Don’t Have to Do It Alone) Whether it’s professional advice, bookkeeping support, or mentoring, the most successful business owners know when to ask for help. This year, consider: Delegating tasks that drain your energy Seeking advice before problems escalate Surrounding yourself with people who both support, and challenge, you Support isn’t a cost—it’s an investment. 6. Protect Your Energy and Wellbeing Burnout helps no one. A business that relies on exhaustion is not sustainable. Make a resolution to: Set realistic boundaries Take proper breaks Define what “success” looks like for you, not just your business A healthy business owner makes better decisions and builds stronger businesses. Final Thought New Year’s resolutions don’t need to be dramatic to be effective. Small, intentional changes, applied consistently, create the biggest impact over time. This year, focus less on perfection and more on progress. Build a business that supports your life, not one that consumes it. If you’d like help turning your resolutions into practical actions, contact us NOW —it’s one of the smartest business decisions you can make. At MPOWER we work with business owners to provide clear direction from the numbers and strategies for success. Here’s to a calmer, clearer, and more confident year ahead.
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