Adroit Accountax

You probably left R&D tax relief unclaimed last year.

Here is the check:
Step 1 — Does your work qualify?
Find one project where you did not know at the start whether it would work technically. That uncertainty is what HMRC is looking for. One project is enough.

Step 2 — What costs count?
Staff time: salary × the percentage spent on that work.
Subcontractors: 65% of what you paid them.
Software licences used in the process.

Step 3 — What is it worth?
Add up your qualifying costs. Multiply by 186%.
Apply your corporation tax rate.
At 19%, that is 35p back for every £1 of qualifying spend.

Three things to do before you file:
→ Check the last two accounting periods — both are claimable.
→ Submit the Additional Information Form before the CT600.
→ Raise it with your accountant now, not after the deadline.

Rolling 12-month income check — do this now:

1. Add up your gross income for each of the last 12 calendar months.

2. If the total exceeds £90,000 — you must register within 30 days of the month you crossed it.

3. If you crossed it last month and have not registered — do it today at gov.uk/register-for-vat.

If you have not yet crossed it but will within the next 30 days — register now voluntarily.

You can reclaim VAT on equipment, software, and professional fees back to your registration date.

When registering, tick the Flat Rate Scheme box on the same VAT1 form if your annual taxable turnover will be under £150,000.

Check the HMRC FRS sector rate for your trade — many service businesses pay 12–14.5% while charging clients 20%.

The difference is yours to keep.

Follow for weekly contractor and service business tax steps.

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Your extraction structure is costing you £2,000–£8,000 every year. Here's why and how to fix it.

Most directors extract one way. Usually salary only. That's not optimized. You're overpaying.

Here's the math:
Extracting £50,000/year?
Current (salary only): £14,000 cost

NI: £8,000
Tax: £6,000
Optimized (salary + dividend): £12,000 cost

Salary: £12,000
Dividend: £38,000

You're leaving £2,000 on the table.
Why: You didn't check profit, consider NI thresholds, or calculate which route was cheaper.

How to fix it (15 minutes):

-Check your profit (pull YTD accounts)
-Decide extraction amount
-Calculate both routes (salary-only vs. salary + dividend)

Choose the cheaper option

Your three extraction options:
Salary: When you need cash now OR no profit
Dividend: When you have profit AND extracting £10k+
Director loan: Emergency bridge funding only

Next step: Book an extraction review. We'll model your numbers and show you exactly how much you're leaving on the table.

Drop a comment if you have questions about your situation.

Quick question for limited company directors: Have you ever just taken cash from your company account without formally documenting it?

If yes, you've just created what HMRC calls a "director loan"—and there are specific rules.

Here's the key: Director loans need to be repaid within 9 months of your company year-end. If not, HMRC charges you Section 455 tax—that's 33.75% on the outstanding balance.

Real example: You withdraw £30k in July. By April 30th the following year (9 months post year-end), if it's not repaid, you owe 33.75% x £30k = £10,125 in additional tax. Plus you still owe the £30k.

The better way: There are three clean extraction routes that don't trigger director loan rules: salary, dividends (if your company has profit), and genuine business expense reimbursements.

If you've got overdrawn director loans sitting in your accounts right now, now's the time to address it.

Drop a comment if you want to chat about options.

Don't get blindsided by corporation tax this March 31st.

Here's the 7-step check to know exactly what you owe and whether you've set aside enough cash:

The problem: Most directors calculate corporation tax on March 31st and panic when they realize they haven't reserved enough.

The solution: Do this quarterly instead.

Step 1: Check your YTD profit (pull management accounts)
Step 2: Adjust for tax items (add back depreciation, subtract capital allowances)
Step 3: Calculate your tax (profit × your rate: 19% if ≤£50k, 25% if ≥£250k, marginal relief applies)
Step 4: Compare to cash reserved
Step 5: If shortfall, adjust your drawings

By the time March 31st arrives, you'll already know your position. No surprises. No panic.

Hey there—this is a question we get asked all the time: My company made £100k profit, but there's no cash left. Where did it go?

The answer: Corporation tax. Your company owes tax on profit (not cash), and if you haven't reserved cash for it, you're in for a surprise.

Here's how it works: 19% tax rate if profit is under £50k | 25% if over £250k. So on £100k profit, you're looking at £25k owed to HMRC (at the higher rate).

The key lesson: Reserve cash for corporation tax before you draw salary, dividends, or anything else. Most directors wait until March 31st to think about this—by then, it's too late.

If you're experiencing this right now, drop a comment. Let's talk about how to fix it for next year.