About us
Imagine a world where your accounting and tax data does more than just fulfill compliance requirements—it becomes a catalyst for growth and efficiency in your business. At Elevation Financial, we understand that no one knows your business better than you do. That’s why we’re here to complement your expertise, not replace it. By leveraging cutting-edge technology, like custom-built Power Apps, we transform your financials into actionable insights, tailor-made to fit the unique contours of your business.
We’re committed to adding value at every level—strategically, to sharpen your vision; at management level, to optimize resource allocation; and operationally, to streamline processes.
We see your numbers as a tool, not just a task, identifying opportunities for efficiency and growth that align with your deep understanding of your business. With us, your financial data isn’t just processed; it’s harnessed to empower you to make swift, informed decisions that drive your business forward.
our services
Accounting Services
Our accounting services are empowered by technology, offering more than just record-keeping. By implementing robust software solutions, we automate and streamline processes such as payroll, invoicing, and asset management.
Our use of real-time data analytics aids in providing a comprehensive view of your financial health, helping foresee challenges and opportunities. Our approach not only ensures compliance and accuracy but also equips businesses with the tools to drive efficiency and growth.
Taxation Services
At Elevation Financial, we harness cutting-edge technology to redefine tax services. Our use of advanced software not only ensures accuracy but also provides predictive insights into tax obligations and potential savings.
We integrate AI-driven analytics to tailor tax strategies that are not only compliant but optimised for future tax scenarios. This foresight enables our clients to plan better and act proactively, making financial decisions that are informed and strategic.
Business Advisory Services
Leveraging our technological capabilities, our business advisory services go beyond traditional consulting. We employ sophisticated modeling tools to simulate various business scenarios, providing insights that help in making informed strategic decisions.
Our foresight, supported by data-driven projections and market analysis, positions us uniquely to advise on potential risks and opportunities. This proactive approach aids clients in navigating complex business landscapes with confidence and clarity.
Blog
7 Accounting and Tax Mistakes Entrepreneurs Should Avoid to Save Time and Money
At Elevation Financial, we know all too well that running a business comes with many financial responsibilities, especially when it comes to accounting and taxes. Through experience, we have identified these seven accounting tips and the mistakes you should be careful to avoid:
1. Mixing Personal and Business Finances
One of the most common and problematic mistakes is blurring the lines between personal and business finances. Don’t mistake your business bank account for your personal funding. This can lead to inaccurate records and tax reporting issues. It is vital to maintain separate bank accounts and credit cards for your business and personal use. Keeping these finances segregated will simplify bookkeeping, improve tax reporting accuracy, and provide a clear picture of your business’s financial health.
2. Neglecting Regular Bookkeeping (Beans must be counted and allocated)
We all get busy ensuring there are beans to count, however, failing to keep up-to-date and organised financial records is a common mistake. Failure in this area can result in inaccurate reporting, missed payments, and blown deadlines. Make it a habit to record all financial transactions, including sales, expenses, and cash flow. Don’t worry – user friendly accounting software can help streamline this process and keep you on track. You focus on your business, and we’ll make sure the admin is all in order.
3. Missing Tax Deadlines
“In this world, nothing can be certain, except death and taxes” – Benjamin Franklin.
Procrastination and missing important tax deadlines can result in hefty penalties from HMRC. Stay on top of monthly (PAYE), quarterly (VAT), and annual filing deadlines. Set up reminders well in advance and consider working with a tax professional to ensure timely compliance. Part of our service to our clients is ensuring they are reminded regularly about up and coming deadlines.
4. Failing to Register for VAT on Time
The business is gaining traction, and the revenue line is climbing but many entrepreneurs overlook registering for VAT when their turnover reaches the threshold. This can lead to backdated VAT payments and potential fines. Monitor your turnover and register promptly when you approach the VAT threshold.
5. Not Claiming Eligible Tax Deductions
At Elevation Financial, and a personal favourite of mine is uncovering unclaimed eligible tax deductions for our clients. Overlooking legitimate tax deductions means paying more tax than necessary. Familiarise yourself with allowable business expenses and keep meticulous records. Common deductions include office supplies, travel expenses, and certain vehicle costs. Consider consulting with an accountant to maximise your eligible deductions.
6. Poor Record-Keeping for Expenses
Often you, the entrepreneur, are so busy producing the beans, you forget to claim the costs of the beanstalk. Failing to keep proper documentation for business expenses can lead to denied deductions and tax issues. Maintain organised records of all receipts and invoices. Consider using expense tracking apps or software to simplify this process.
7. DIY Approach to Complex Tax Matters
While it’s tempting to handle everything yourself, complex tax matters often require professional expertise. Trying to navigate intricate tax laws without proper knowledge can lead to costly mistakes. For tasks like tax planning, VAT returns, exit strategies and year-end accounts, consider engaging a qualified accountant. Elevation Financial are able to support businesses over a certain size with a fractional CFO ensuring close attention is being paid to all these areas on an ongoing basis.
By avoiding these common mistakes, you can maintain better financial health, ensure tax compliance, and focus more energy on growing and scaling your business. Remember, when in doubt, seeking professional advice from a qualified accountant or tax specialist, is more often than not, a wise investment.
Free Consultation
At Elevation Financial we are always available to have an initial conversation or consultation about how we can help, likewise if you have a difficult situation and need a quick second opinion, we’re happy to help where we can.
Avoid costly tax and accounting mistakes as an entrepreneur. Learn about key financial errors and tips to protect your business.
How the UK budget affects you and your business
Chancellor Rachel Reeves delivered the first Budget of the new Labour Government after 14 years of Conservative rule. The overriding message was one of investment.
While tax rises were anticipated, changes will have a significant impact on businesses and individuals. The main tax measures effecting our clients in their businesses and individual capacities are summarised as follows:
BUSINESS TAX
National Insurance Contributions
National Insurance Contributions (NICs) for employers is set to rise.
- From April 2025, employers’ NICs will increase from 13.8 per cent to 15 per cent.
- The threshold at which employer NICs become payable will fall from £9,100 to £5,000.
Corporate Tax Roadmap
- Keep the existing R&D, patent box and intangible assets tax regimes.
- Keep the headline rate of UK CT at 25 per cent.
- Maintain the existing CT small profits rate of 19 per cent.
- Maintain the existing core capital allowances regimes with full expensing and the £1m annual investment allowance, which can provide valuable tax deductions for certain types of capital expenditure.
Business Rates
There will be two permanent lower rates of business rates for retail, hospitality and leisure properties and in the short-term there will be a 40 per cent relief for 2025/26 up to a cap of £110,000 per business.
Sales to Employee Ownership Trusts (EOTs)
Persons selling private trading companies to EOTs can benefit from a capital gains tax exemption if various conditions are satisfied. Various changes are proposed to the regime, including:
- The former owners cannot retain control of the company post-sale to an EOT,
- The trustees of an EOT must be UK resident
- The EOT conditions must continue for a longer period for the tax reliefs not to be lost.
PERSONAL TAX
Capital Gains Tax (CGT)
Several CGT changes have been announced as follows:
- The CGT rate for Investors’ Relief, which applies in similar circumstances to BADR but where the investor is unconnected with the business, will increase in line with the BADR rates with effect from 30 October the rates of CGT have increased from the current rates of 10 per cent (basic rate taxpayers) and 20 per cent (higher and additional rate taxpayers) to 18 per cent and 24 per cent respectively.
- The rates for selling second properties remain at 18 per cent and 24 per cent respectively.
- The CGT rate for Business Asset Disposal Relief (BADR) (previously Entrepreneurs Relief), which applies to lifetime gains of £1m on certain disposals by employees and directors in their unlisted businesses, will continue. However, the tax rate will increase from the current 10 per cent to 14 per cent for disposals made on or after 6 April 2025 and from 14 per cent to 18 per cent for disposals made on or after 6 April 2026. This means an increase of up to £80,000 for those entrepreneurs planning to sell their businesses after April 2026.
- The CGT rate for Investors’ Relief, which applies in similar circumstances to BADR but where the investor is unconnected with the business, will increase in line with the BADR rates.
Carried Interest Changes
Carried interest gains made by investment managers will from 6 April 2025 be subject to CGT at a new flat rate of 32 per cent (rather than at 18 per cent or 28 per cent under the previous system).
This is a temporary measure, as the Government intends to consult further on a revised tax regime for carried interest from April 2026. The proposal is that qualifying carried interest will then be treated as trading profits and subject to Income Tax and NICs. However, the amount of “qualifying” carried interest subject to tax will be adjusted by applying a multiplier resulting in an effective tax rate at 34.1 per cent including NICs.
Inheritance Tax (IHT) Changes
A variety of changes will be made to IHT as follows:
- Business (and Agricultural) property relief will change from 6 April 2026. The existing 100 per cent rates of relief will continue for the first £1m of combined agricultural and business property. Thereafter, the rate of relief will be 50%, which translates to an effective 20% IHT expense. Many family businesses, trusts and estates will now have to plan for IHT liabilities on business and agricultural property.
- An effective IHT rate of 20 per cent will also be levied on shares in companies on the Alternative Investment Market. Therse shares were previously exempt from IHT (when held for at least 2 years). The new £1m business property relief allowance will not apply to AIM shares.
- Pension funds and death benefits payable from a pension into a person’s estate will be brought into a person’s estate for IHT purposes from 6 April 2027.
- Extension of the freeze on the standard tax-free allowance (£325,000) and residence nil-rate band (£175,000) until 2030.
Income Tax
Income tax rates will not increase, and income tax rate thresholds will be “unfrozen” and will begin to rise in line with inflation from April 2028.
Non-Domiciled Individuals
The Government will proceed with abolishing the non-dom tax regime with effect from 6 April 2025 and it will replace it with a residence-based regime.
In summary:
- Individuals who have not been resident in the UK for the previous 10 years will not pay UK tax on foreign income and gains (FIG) for the first four years of tax residence even if such FIG is remitted to the UK.
- There will be a temporary repatriation facility applying for three years to encourage individuals who previously claimed the remittance basis to remit existing pre-6 April 2025 foreign income and gains to the UK at reduced tax rates of 12 per cent rising to 15 per cent from 6 April 2027.
- For CGT purposes qualifying individuals will be able to rebase personally held foreign assets to 5 April 2017 on a disposal where certain conditions are met.
- A new residence-based system for inheritance tax will apply from April 2025. Inheritance tax will be due on a person’s worldwide assets on their death if they have been UK tax resident for 10 UK tax years out of the prior 20 tax years and there will be a “tail-provision” which will keep such persons within the scope of UK IHT on worldwide assets for a period after leaving the UK.
- The Overseas Workday Relief which can exempt from UK tax employment income from non-UK duties will be reformed and extended to four years although the amount claimed annually will be limited.
VAT on Independent School Fees
Education and board and lodging supplied by independent schools will be subject to VAT at the standard rate of 20 per cent from 1 January 2025.
Fees received by independent schools from 29 July 2024 for terms commencing from 1 January 2025 are also subject to VAT due to anti-forestalling provisions.
Stamp Duty Land Tax
The rates of SDLT which apply to property purchases in England and Northern Ireland where a buyer is an individual and already owns another residential property and to corporate buyers, are being increased by 2 per cent. Therefore, the additional rate will now be 5 per cent. This translates to the fact that a top rate of 17 per cent SDLT (or 19 per cent for non-resident purchasers) applies to the purchase price exceeding £1.5m.
The higher rate of SDLT which may be applied to purchases of residential properties worth more than £500,000 by companies for non-commercial purposes, is to be increased from a flat rate of 15 per cent to a flat rate of 17 per cent.
The new rates of SDLT will apply to all purchases where contracts were exchanged after midnight on 30 October 2024. Transactions which exchanged contracts before midnight on 30 October 2024 and which complete before 1 April 2025 will continue to benefit from the old rates where certain conditions are satisfied.
TESTIMONIALS
‘Advisory, cashflow forecasts and the monthly meeting are my Elevation favourites – all part of our monthly package’
Saneah Dolley
BlueCloud Digital
‘Craig and his team work hard to make all things accounting as simple as possible so we can get on with running our business’
James Durrant
DD Publishing Ltd.
Talk to us
Let us at Elevation Financial work alongside you, enhancing what you’ve built with a strategic edge and operational excellence. Together, we’ll not just meet your business objectives; we’ll exceed them, elevating your business to new heights of profitability and value.