Just Balance Accounting Ltd

15/07/2026

💷 Is your Director's Loan Account (DLA) in the red? Don't ignore it!

Many business owners don't realise that an overdrawn Director's Loan Account can lead to unexpected tax bills and costly consequences.

If your DLA isn't repaid within the required timescales, your company could face additional (very high) tax charges, and there may even be personal tax implications depending on the circumstances.

The good news is that with regular bookkeeping and a little forward planning, these issues can often be avoided before they become a problem.

Not sure where your Director's Loan Account stands? Now is a great time to check your records and get expert advice. A quick review today could save you money tomorrow.

Have questions about your DLA? Drop them in the comments or send us a message—we're happy to help.

02/07/2026

If your income is over £35,000, any Winter Fuel Payment you receive will be recovered through your tax.

If you’d prefer not to receive the payment, you can opt out.

Opt out by:
• 18 September 2026 (phone)
• 20 September 2026 (online)

You can opt back in if your circumstances change.

Find out more: https://ow.ly/ybAs50Zizw5

01/07/2026

🚨 Things That Can Trigger an HMRC Tax Inspection 🚨

While HMRC can investigate any taxpayer at random, certain issues can increase the likelihood of an inspection:

✅ Large fluctuations in income or profits compared to previous years

✅ Consistently hovering below the vat threshold

✅ Entering Rounded figures on the tax return

✅ Consistently reporting losses while continuing to trade

✅ Late tax returns or repeated filing errors

✅ Significant discrepancies between declared income and lifestyle
spending

✅ Unusually high business expenses or deductions for your industry

✅ Cash-intensive businesses where income can be harder to verify

✅ Information received from third parties that doesn't match your tax return

✅ Industry-specific compliance campaigns targeting certain sectors

The good news? Keeping accurate records, filing on time, and ensuring your tax returns are correct can significantly reduce the risk of problems with HMRC.

If you're unsure whether your records are compliant, professional advice can help give you peace of mind. Call Today 0161 399 0598

09/06/2026

📢 **Important Update for Small Companies and Micro-Entities**

The government has announced that from **1 April 2028**, small companies and micro-entities will be required to file **profit and loss accounts** with Companies House. Following strong lobbying from the small business community, there will be an option to **opt out of public disclosure**.

Other key changes include:

✅ No requirement for small companies to file a directors' report as part of the annual report and accounts.

✅ Abridged accounts will be abolished.

✅ All companies will be required to file accounts using commercial software.

Further details will be released in due course. There is **no action required at this time**, and we will keep you updated as more information becomes available.

05/06/2026

01/06/2026

This month’s Tax Tip 👇

💷 Avoid the High-Income Child Benefit Charge (HICB)

Yes, there are legal ways to reduce it, but it depends on your partner’s adjusted net income, not just being a higher-rate taxpayer.

The High-Income Child Benefit Charge only starts when one partner’s adjusted net income is over £60,000, and it is fully clawed back at £80,000. The charge is 1% of Child Benefit for every £200 over £60,000.

The main legitimate options are:

✅ Increase pension contributions or use salary sacrifice pension contributions to reduce adjusted net income.

✅ Make Gift Aid donations, as the grossed-up amount can reduce adjusted net income.

✅ Check whether taxable benefits, bonuses, dividends, rental income or self-employment profits push income over the threshold.

✅ Continue claiming Child Benefit but consider opting out of payments if the charge would fully apply, so the claimant can still protect National Insurance credits and the child’s NI number record.

Avoid anything artificial — HMRC will look at the highest earner’s adjusted net income. Best approach is to calculate it properly first using HMRC’s Child Benefit tax calculator.

22/05/2026

🚗 New Mileage Allowance Rates Announced 🚗

In a positive move (at last) the chancellor has increased the approved mileage rate for personal car use for business trips — the first increase in more than 15 years!!

In a brief speech, Chancellor Rachel Reeves addressed the challenges facing businesses following the Iran war and the closure of the Strait of Hormuz, which has led to soaring petrol and diesel prices.

To help support workers and businesses, the tax-free mileage allowance will increase by 10p per mile, backdated to 6 April 2026.

✅ Cars and vans will rise from 45p to 55p per mile for the first 10,000 business miles

✅ 25p per mile will apply over 10,000 miles

✅ No changes to motorcycle rates

HMRC has confirmed the new approved mileage rates will apply for the 2026–2027 tax year.

This marks the first increase since April 2011 and will benefit many people who rely on driving for work, from care workers to plumbers.

21/05/2026

⚠️ HMRC Update on Repayment requests ⚠️

02/05/2026

🎁 Gifts to Customers – What’s Allowed? 🎁

Did you know that certain customer gifts can qualify as an allowable business expense for tax purposes?

To qualify, the gift must meet ALL of the following conditions:

✅ It includes a clear and conspicuous advertisement for your business
✅ The total cost is under £50 per customer per year
✅ It is not food, drink, to***co, or vouchers

Some great examples of allowable customer gifts include branded:

☕ Mugs
🖊️ Pens
📅 Calendars

A well-chosen branded gift can help promote your business while staying tax efficient.

15/04/2026

💸 Improving Cashflow in Your Business 💸
Cashflow is the lifeblood of any business – and managing it well can be the difference between surviving and thriving. Here are some practical ways to stay in control:

Sales

• Review customer payment terms – don’t let them run too long
• Offer prompt payment discounts (e.g. 5% for early payment)
• Invoice immediately – automate where possible
• Handle bad debts early – consider payment plans
• Chase outstanding invoices consistently (use auto reminders)
• Trades? Take deposits and staged payments

Purchases

• Negotiate longer payment terms with suppliers
• Increase your credit limits
• Push for better pricing

Profit & Loss

• Can you increase your prices?
• Move from weekly PAYE to monthly
• Pay subscriptions annually instead of monthly
• Review overheads – cut what you don’t need
⚠️ Be careful not to reduce efficiency

Balance Sheet

• Sell unused assets
• Check if too much cash is being taken out by owners/shareholders

Refinancing

• Use short-term options (overdrafts, credit cards) wisely
• Consolidate loans for better rates
• Extend repayment terms where possible

Cash Flow Forecasting – DO IT!!

This is essential. It helps you spot problems early and stay ahead.
Final Point: Using bookkeeping software makes all of this far easier and more effective.