August 21 Newsletter

August 11, 2021

Business Update


Finding the Right Advisor for Your Business





Partnering with the right accountant or bookkeeper can make a massive difference to your small business. If you don't believe us, here are two hard-hitting facts that back up this statement:


A UK survey of 1,500 small businesses found that those with an advisor work an average of 6 hours less every week than those without.

During the 2020 pandemic, businesses that thrived would consult professionals like accountants and bookkeepers before making important business decisions.


The question remains then, how do you find the right one for your business? Here are 3 steps to take.


Step 1: Know what your needs are


Many business owners tend to get stuck with an accountant that isn't the best fit for them because they don't really know what they need from them. Before you start your search, really think about your business. What systems and processes do you need help with? Do you just need compliance services or more of a business advisor who can support you as you grow?


Step 2: Know what you want from your accountant or advisor


Now you know what you need from your accountant (in terms of services), you should start thinking about what's most important to you. What industry do they need to be a specialist in? Do you prefer a certain size of business or client portfolio? Will you prefer to have face-to-face meetings or a lot of contact? Do you want an accountant who's savvy with cloud computing? 



When you know exactly what you want from your accountant, beyond just the service, you will be far more successful in your search.


Step 3: Take the time to research and test


Finding the right fit takes time and patience. Think of it as a puzzle. Each piece you pick up is a candidate and you have to figure out where it goes and if it even fits. 


Meet with the potential advisors that you're considering. Do they really understand the specifics of your business or industry? Do they seem proactive, not just in saving you money but helping you grow your business? Are they excited about working with you? What does your intuition tell you about them?


This is an incredibly important decision to make so take your time with it. 


Now is the time to find the right advisor


It's going to be another difficult year for many small businesses, so this makes having the right accountant or bookkeeper even more important. Make sure to give yourself the best chance of success by finding the right one for your business now. 




Accounting Update


Basic inheritance tax issues for families


This is a topic that we are often asked about so hopefully this will be useful.


What are the IHT (Inheritance Tax) thresholds?


The basic IHT Nil Rate band is £325,000 and in the 2021 budget it was frozen until at least April 2026.  The nil rate band covers the estate and any gifts in the last seven years of life.


Is the Nil Rate Band a single lifetime allowance?


No, the nil rate band refreshes every seven years.  An individual with assets in excess of the nil rate bank should consider giving sooner rather than later, as it maximises the chances of surviving the seven years.


Are there any other thresholds?


There is a residential nil rate band , this allows a person on their death to leave their house to a direct (lineal) descendant and get another £175,000 as well as the nil rate band, so the theoretical maximum is £500,000 per individual.


What is meant by a direct descendant?


This is typically a child, grandchild or other lineal descendant (this includes a step-child or an adopted child); or

A husband, wife or civil partner of a lineal descendant (including their widow, widower or surviving civil partner).


How does IHT work between spouses?


Your allowances effectively double to a maximum of £1,000,000 (£500,000 each for the nil rate band and residential nil rate band).


What is a spousal exemption?


It is possible to transfer both of the allowances on death to the surviving spouse, so there is no IHT on the first death and the full £1m can be used on the second death (subject to the restrictions on the residential nil rate band)


When is IHT due and who pays it?


On a death estate, it’s due within 6 months of the end of the month of death.  Normally an estate is dealt with by a solicitor, but it is possible for the family to deal with it, if they have sufficient knowledge.  It’s basically due from the estate, so payments to beneficiaries would be settled after the tax has been settled.



Sometimes there isn’t enough cash in the estate to pay the IHT, for example if the value is mainly in bricks and mortar, it is possible to pay in instalments over 10 years if this is the case.  This means that the house won’t need to be sold to pay the tax.







App of the month

Crezco

Cardless, contactless payments, just scan and go


No Fees

No delays

No cards


This app is a no-brainer for me, connect it to Xero and your customers can pay you very quickly using either the QR code or the link on the invoices, this will then reconcile in Xero and mark the invoice as paid.


Crezco uses open banking to make the payment of your sales invoices even easier than before


Team News

We are very excited to introduce a new team member, Michelle.  Michelle has worked in accountancy practices for over 10 years and brings lots of experience with her.  Most importantly Michelle loves animals and looks after a dog (Laz), 4 cats, 3 hens, one cockerel and five rabbits. Please feel free to pop in and see us in the office.  We are in every day apart from ‘work from home’ Fridays! 


And, of course if there is anything you would like to discuss we are also available for video calls / phone calls (01908 751 972).


Keep safe and well,





Katherine, David, Ben and Michelle

By David Adderson July 4, 2025
Inclusion is desirable, yet it is complex. In this two-part blog, we begin to unravel the challenges of increasing needs in education and diminishing resources. In this article, Dr Anita Devi explores some of the many challenges Educators in England currently face. Her intent is to extend perceptual thinking from problem to solution. In Part 2, Katherine Robertson will unpick some of the financial levers for consideration. I have worked in the education sector for a fair few decades now. Am I showing my age? Possibly, but also my experience and out of that experience is born wisdom. Wisdom is applied knowledge with the benefit of lived experience and hindsight. To broaden our thinking, I have decided to focus on three areas: Rising needs in the classroom – ensuring each child receives an educational experience that is progressive, whilst meeting their needs Less is more – applying a structured and systematic approach to providing support for special educational needs and disability (SEND) Commissioning with purpose – intentionally involving others, when needed. Since the increase in needs always outmatches the rise in resource funding, sadly we will always be in a deficit. This is not about being despondent, but hopeful through responsive and creative solutions. In many life situations, we face elements of the unknown and so we put in place checks and balances to ensure we maintain stability. If our own personal finances were continuously in the red, we would be faced with three options: Reduce spending Increase income Look for alternatives In the education world whilst options 1 and 2 may be possible to some degree, it is restricted and ultimately option 3 has been our default; especially if we are to adhere to the core principles of The Salamanca Statement (1994) and more closely to home, The Children and Families’ Act 2014. Rising need in the classroom Those who lead on inclusion and /or SEND need to simplify systems to ensure those learners who require additional and adaptive provision receive it. I have expanded more on this in a July 2023 booklet, which you can download here . If as a leader, you understand the fundamentals of an inclusive provision framework, you can reduce the paper trail to make it purposeful, without compromising on keeping a diligent paper trail of evidence. This will also ensure you know whether what is in place is having an impact or not. SEND: It is time to lead differently . Less is more There are a number of core decisions to be made when additional provision is put in place. For example, in or out of the classroom? How long is the defined additional support required and most importantly what is the expected outcome from the additional support? For far too long, we have assumed the ‘forever’ model when it comes to interventions or additional support. We have often omitted to discern short-term from long-term, as well as factor in the negative impact of too many interventions simultaneously. Short-term interventions, if assessed and targeted well can (in many instances) provide the learner with new skills and/or increased independence. This is a desirable outcome, as none of us is truly seeking to create a dependency model. Equally, administering too many interventions simultaneously takes away from the exploratory nature of interventions i.e. what’s working and what needs to change. We have indeed moved away from the ‘medical model’, however, some of the basic principles still need to be considered. In response to a medical condition, a doctor would not prescribe multiple medications or remedies simultaneously. Due care and consideration would be given to the negative interactive impact of one solution upon another. We need to apply a similar approach to inclusion and SEND. This is not denying that a child may have multiple needs, but sometimes it is about focusing on one thing at a time. Commissioning with Purpose This has been a bugbear of mine since 2018 , if not before! As a previous SEND Advisory Teacher, I was always intentional about ‘adding value’ to what is already in place in any setting. As a previous Senior Leader / SENCO, I was always intentional about securing services that provided ‘value for money’. I’ve worked with The Audit Commission on this and The National Audit Office, not to mention Business Managers and local authorities. I would also encourage readers to explore their ‘decommissioning process’. As a long-standing Education Change Consultant, my team & I always write our exit plans before we go into support. This is regardless of whether we are working in the UK or overseas. I am continuously amazed how many schools/colleges rely on the same service for years, even if there is no impact evidence of change through the input they are buying in. Over the years, training head teachers at national conferences, I have always advocated ‘procurement with precision’. Even at local authority level, I think provision would be better if Porter’s Forces were applied during the annual review of an EHCP in regard to placement choices, especially non-maintained Independent schools (NMIs). Supplier power through exuberant price hikes, in a time when there is a shortage of places, is both immoral and financially unsustainable. This is just the start of the conversation, but with a few systemic tweaks – schools and colleges can begin to look differently at provision. Still meeting the needs of children and young people but reducing the strain on financial resources and human manpower. Do get in touch if you would like to find out more. Author: Dr Anita Devi dr. h.c. Dr Anita Devi , leading SEND specialist, and Katherine Robertson , strategic finance expert, have joined forces to offer a new advisory service for schools and colleges . This service is designed to provide strategic financial governance of SEND provision, focusing on efficiency, effectiveness, and value for money . We help you explore financially sustainable solutions that support early intervention, improve outcomes, and make the most of every pound spent, without compromising on quality. If you're ready to rethink how SEND resources are used in your setting, contact us for a preliminary conversation at SEND_Finance@youtopia.co.uk 📢 And keep an eye out for our upcoming blog
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