CGI Accountants

21/06/2026

Imagine receiving a letter from HMRC accusing you of undeclared sales and warning of penalties of up to 100% of the tax involved.

That’s exactly what happened in one case we dealt with.

HMRC’s letter alleged that the recipient may have been involved in what is known as Electronic Sales Suppression (ESS) where sales are allegedly removed or altered before being reported for tax purposes.

The letter warned of:

⚠️ Full compliance investigation
⚠️ Interest and penalties
⚠️ Potential civil or criminal action

Naturally, the client was concerned.

After reviewing the facts, we established that this related to a business that had actually been sold several years earlier.

Our view was that HMRC had likely obtained information from the till provider and linked the till system to the individual who originally registered it despite no longer owning or operating the business.

Once the position was explained and the evidence reviewed the matter became much clearer.

The lesson?

HMRC is increasingly obtaining information directly from third parties, including software providers and digital platforms. While this data can be useful it doesn’t always tell the full story.

Receiving a letter from HMRC does not automatically mean you’ve done anything wrong.

Before making disclosures, admissions or assumptions, make sure you understand exactly why HMRC has contacted you and what evidence they are relying on.

21/06/2026

One of our clients underwent a HMRC National Minimum Wage compliance enquiry.

This wasn’t just simply a request for payroll records. After communication back and forth HMRC

✅ Visited the business premises
✅ Interviewed employees directly
✅ Wrote to members of staff (including former) independently
✅ Reviewed payroll records, bank statements and rotas
✅ Requested extensive documentation covering multiple pay periods

For many employers this level of scrutiny would be daunting.

After completing their enquiry

✔️ No underpayments identified
✔️ No penalties issued
✔️ No enforcement action taken
✔️ Case closed

National Minimum Wage compliance checks are becoming increasingly detailed and many employers are surprised by the extent HMRC go to during an enquiry

Good record keeping, compliant payroll procedures and professional representation can make a significant difference when dealing with HMRC.

We’re pleased to have supported our client throughout the process and helped bring the matter to a successful conclusion.

19/06/2026

💡 “Can I pay my spouse through my business to save tax?”

Yes, you can but it has to be done properly.

A spouse can be paid a salary if they’re genuinely working in the business but the pay must be reasonable for the work they actually do. If HMRC believes the salary isn’t justified they can disallow the expense and raise additional tax, interest and penalties.

The same applies to shares. It’s perfectly legitimate for a spouse to own shares and receive dividends but those shares must carry genuine ownership rights and not exist solely to divert income.

There is nothing wrong with involving your spouse in your business. In fact, it can be a very tax-efficient strategy when structured correctly. The key is ensuring there is real substance behind the arrangement.

A quick conversation before making changes can save a lot of time, tax and stress later if HMRC comes asking questions.

📞 CGI Accountants
Helping business owners stay tax-efficient and HMRC-compliant.

19/06/2026

A little reminder that not every HMRC enquiry ends badly.

A client recently went through a national minimum wage compliance check with HMRC.

The issue? staff food benefits had been included in pay calculations. HMRC’s position is that these benefits don’t count towards national minimum wage calculations even though they have a real value to employees.

Once the matter was identified, the employee was reimbursed immediately and the records were updated.

Today, HMRC confirmed:

✅ No penalty
✅ No enforcement action
✅ No public naming and shaming
✅ Case closed

The important lesson here is that many compliance issues aren’t caused by employers trying to underpay staff. Often, they’re caused by technical rules that most business owners have never even heard of.

18/06/2026

IMPORTANT UPDATE FOR LIMITED COMPANIES

There has been a lot of discussion about the upcoming Companies House reforms, particularly around whether small companies’ profit and loss accounts would become publicly available.

Companies House has now confirmed that while small companies and micro-entities will be required to submit a profit and loss account as part of their accounts filing from April 2028, there will be an option to prevent this information from being published on the public register.

In summary, profit and loss accounts will still need to be filed with Companies House, but businesses will be able to opt out of having this information displayed publicly. Accounts will also need to be filed digitally using approved software and abridged accounts will no
longer be available.

This should come as welcome news for many business
owners who were concerned about competitors being able to view their turnover and profit figures online.

We will continue to keep clients updated as further guidance is released by Companies House.

If you have any questions about how these changes may affect your business, feel free to get in touch.

02/06/2026

I’ve got a £28,000 tax bill and no money to pay it.”

Then comes the next line:

“My accountant never told me.”

But let’s be honest.

In most cases, the problem isn’t that nobody told you.

It’s that the money was already spent.

✅ The new car
✅ The holiday
✅ The home improvements
✅ The personal withdrawals
✅ The lifestyle upgrade

Then January arrives and reality catches up

Your accountant can:

✔ Estimate your tax bill
✔ Send projections
✔ Tell you how much to set aside
✔ Remind you throughout the year

What they can’t do:

❌ Stop you spending the money
❌ Control your bank transfers
❌ Force you to keep a tax reserve

A successful business isn’t measured by turnover alone.

Revenue is vanity.
Profit is sanity.
Cash flow is reality.

The businesses that grow sustainably don’t treat the company bank account like a personal ATM.

They budget for:

• Tax
• Staff costs
• Reinvestment
• Emergencies
• Growth

And then pay themselves from what’s left.

As accountants, we can provide the numbers, forecasts and advice but financial discipline has to come from the business owner.

Sometimes the uncomfortable truth is the most valuable lesson

31/05/2026

📬 Received a letter like this from HMRC?

You're not alone.

We're seeing an increasing number of taxpayers receiving letters from HMRC regarding potential rental income from property.

In many cases, HMRC has identified information suggesting a property may have been rented out and is asking the taxpayer to confirm whether rental income has been received and reported.

Receiving a letter does not automatically mean you've done anything wrong, however it is important you understand your position and respond appropriately.

If you've:

✅ Let out a property in the past
✅ Recently become a landlord
✅ Inherited a property that has been rented
✅ Received a letter from HMRC and aren't sure what to do next

CGI Accountants can help review your circumstances and deal with HMRC on your behalf.

📞 If you've received a similar letter, get in touch before responding.

31/05/2026

Running a business is hard enough without worrying about your statutory compliance responsibilities.

Here at CGI Accountants, we help business owners stay on top of these duties so they can focus on what they do best.

✅ Friendly advice
✅ Fixed-fee services
✅ Local, professional and approachable

If you're looking for an accountant who speaks your language and takes the stress out of compliance, get in touch today

📞 Message us directly to see how we can help your business grow.

Call now to connect with business.

28/01/2024

*Self assessment*

As we are approaching the 31st January deadline there will be many who struggle to understand payments on account.

When you complete your self-assessment, HMRC will calculate your tax liability. This will include how much tax you owe, class 2 & 4 national insurance contributions and any student loan repayments owed.
If the total bill is over £1000, then HMRC will also ask you to pay something called a 'payment on account' (POA).
POA are advanced payments for your next tax bill.
HMRC will assume you will make the same taxable profit as the amount submitted and ask you to pay 100% of the liability for the tax and NIC due in advance over 2 installments.
You will pay 50% of it by 31/01 and the other 50% by 31/07. If there's any balance to pay when you complete your self-assessment for that year, you'll pay that by the following 31/01 as well as the first payment on account for the following year.
Student loan repayments aren't included in POA so you'll need to pay that on top.
The first year is always the trickiest but it does work out.

25/03/2023

The blessed month of the year is here once again.

The holiest month of the Islamic year, Ramadan focuses on fasting not just from food and drink, but also negative thoughts, negative speech and bad habits.

“O you who believe! Fasting is prescribed to you as it was prescribed to those before you. so that you may learn self-restraint. Quran 2:183”

We wish all who are celebrating a truly blessed and peaceful Ramadhan from the CGI team.

🌙