M Zaidi & Co - Chartered Accountants and Registered Auditors

Selling VATable goods and courses from the same UK business? Don’t overlook partial exemption.

When a business makes both taxable and VAT-exempt supplies, it may not be able to recover all the VAT incurred on shared business costs.

That can make otherwise routine expenses more expensive — including:

✔️ Marketing and advertising
✔️ Software and subscriptions
✔️ Professional services
✔️ Office and operating costs
✔️ Equipment and other overheads

And there’s another important point: not every course or training service is automatically VAT-exempt. The VAT treatment depends on the nature of the education or training and whether the relevant exemption conditions are satisfied.

A proper VAT review should look at your taxable and exempt income, how costs are allocated, your partial exemption calculation and whether the de minimis rules apply.

The objective isn't simply to reclaim more VAT — it’s to make sure your business is recovering everything it is legitimately entitled to recover, without getting the VAT treatment wrong.

If your business sells both goods and courses, is your current VAT structure quietly reducing your margins?

Zaidi & Co can help you review your VAT position and identify potential areas of concern.

📞 0208 767 2300
📧 [email protected]
🌐 www.zaidiandco.co.uk

Rising fuel prices can quickly put pressure on SME margins. ⛽📈

With global tensions creating further uncertainty in energy markets, businesses that rely heavily on vehicles and business travel may face higher operating costs.

For some SMEs, switching to electric vehicles (EVs) could be worth considering—not simply as an environmental decision, but as part of a wider cost and tax strategy.

Depending on the vehicle and how it is used, businesses may need to consider:

✔️ Vehicle purchase or leasing costs
✔️ Electricity versus fuel costs
✔️ Capital allowances and tax treatment
✔️ Benefit-in-kind implications for company cars
✔️ Charging and mileage expenses
✔️ The impact on overall cash flow

However, an EV isn't automatically the right choice for every business. The numbers should be assessed based on your vehicle requirements, mileage, financing arrangements and tax position.

At Zaidi & Co, we help SMEs look beyond individual expenses and assess the wider financial impact of business decisions—helping you plan for uncertainty while protecting cash flow and profitability.

📞 0208 767 2300
📧 [email protected]
🌐 www.zaidiandco.co.uk

UK employers need to stay ahead of the changing employment law landscape.

The Employment Rights Act 2025 is being introduced in stages throughout 2026 and 2027, bringing significant changes to employment rights and employer responsibilities.

Some reforms are already in force, including changes affecting:

✔️ Statutory Sick Pay
✔️ Paternity and parental leave
✔️ Bereaved partner's paternity leave
✔️ Whistleblowing protections

Further reforms are expected to affect areas such as unfair dismissal, harassment, flexible working and zero-hours contracts.

For employers, compliance isn't just about reacting when a new rule comes into force. It's important to review your employment policies, contracts, payroll processes and employee records in advance.

At Zaidi & Co, we support employers with payroll, Auto Enrolment, employee records and wider business compliance, helping you keep your processes aligned as requirements change.

Not sure whether your payroll and employment processes are ready? Speak to our team.

📞 0208 767 2300
📧 [email protected]
🌐 www.zaidiandco.co.uk

Sole traders and landlords earning over £50,000 — is your MTD registration up to date? ⚠️

HMRC is planning to automatically enrol eligible taxpayers into Making Tax Digital (MTD) from September, following low uptake among those required to make their first quarterly submission.

If you haven't registered yet, don't wait for HMRC to enrol you automatically.

MTD requires affected businesses and landlords to keep digital records and submit quarterly updates to HMRC. Getting your systems ready now can help you avoid last-minute compliance issues.

You should review:

✔️ Whether you fall within the MTD income threshold
✔️ Whether you're registered correctly
✔️ Whether your bookkeeping system is MTD-compatible
✔️ Whether your quarterly reporting process is ready
✔️ How the rules apply to your rental or self-employed income

At Zaidi & Co, we help sole traders and landlords understand their MTD obligations, set up compliant systems, and stay on top of their tax reporting.

Don't wait for HMRC to make the decision for you. Get prepared now.

📞 0208 767 2300
📧 [email protected]
🌐 www.zaidiandco.co.uk

Dentists: not all dental income is automatically VAT-exempt.

🦷 Routine qualifying dental treatment is generally VAT-exempt when provided for healthcare purposes.

✨ Purely cosmetic treatments may be subject to 20% VAT.

⚠️ If your practice has a mix of NHS, private, cosmetic, or separately supplied products, the VAT treatment can differ.

Getting the classification wrong can affect your VAT returns, pricing and profitability.

Zaidi & Co supports dentists with specialist tax, VAT and accounting advice.

📞 +44 20 8767 2300
📧 [email protected]
🌐 zaidiandco.co.uk

Cybersecurity is no longer just an IT concern—it's a key part of good business management.

According to the National Cyber Security Centre (NCSC), 43% of UK small businesses experienced a cyber breach or attack in 2025. The financial, operational, and reputational impact can be significant, especially for SMEs.

To help businesses improve their cyber resilience, NCSC-assured Cyber Advisors are offering FREE 30-minute consultations, providing practical guidance on implementing Cyber Essentials—the UK's recognised baseline for cybersecurity.

Improving your cyber resilience can help you:

✔️ Reduce the risk of cyber attacks
✔️ Protect sensitive business and customer data
✔️ Strengthen internal controls and compliance
✔️ Build trust with customers and stakeholders

At Zaidi & Co, we understand that protecting a business goes beyond managing the numbers. Through our business advisory services, we help clients strengthen internal controls, improve compliance, manage business risks, and build a more resilient organisation for long-term success.

📞 0208 767 2300
📧 [email protected]
🌐 www.zaidiandco.co.uk

Many sole traders assume that once their tax return has been filed, they've claimed everything they're entitled to.

In reality, that's not always the case.

We've seen business owners overpay tax simply because expenses weren't recorded correctly, valuable tax reliefs were overlooked, or there was no proactive tax planning throughout the year.

In one recent case, a freelancer recovered £4,200 in missed tax relief—not because they earned more, but because their records were reviewed properly and their tax position was assessed strategically.

A professional tax review can help identify:

✔️ Unclaimed allowable business expenses
✔️ Missed tax reliefs and deductions
✔️ Inefficient record-keeping practices
✔️ Opportunities to improve tax efficiency going forward

The result isn't just potential tax savings. It's better financial visibility, less time spent on administration, and greater confidence that you're not paying more tax than necessary.

If you're self-employed, don't assume your current approach is the most tax-efficient. A review today could uncover opportunities you've been missing for years.

At Zaidi & Co, we help sole traders and freelancers optimise their tax position, stay compliant with HMRC, and keep more of what they earn.

📞 0208 767 2300
📧 [email protected]
🌐 www.zaidiandco.co.uk

HMRC is increasing its focus on tackling tax fraud and improving compliance across the UK.

Recent figures show that during the 2025/26 tax year:

📊 170,992 reports of suspected tax fraud and evasion were received by HMRC.
💷 £1.4 million was paid to eligible whistleblowers whose information helped recover unpaid tax.

These figures highlight a clear message: HMRC is placing greater emphasis on identifying non-compliance.

Now is the time to make sure your business is meeting its tax obligations by:

✔️ Keeping accurate financial records
✔️ Filing tax returns correctly and on time
✔️ Maintaining compliant bookkeeping and payroll records
✔️ Seeking professional advice before issues become costly

Good tax compliance isn't just about avoiding penalties—it's about protecting your business, strengthening financial controls, and giving you confidence that your affairs are in order.

Whether you need support with Corporation Tax, VAT, Self Assessment, Payroll, Bookkeeping, or HMRC enquiries, Zaidi & Co is here to help you stay compliant and plan with confidence.

📞 0208 767 2300
📧 [email protected]
🌐 www.zaidiandco.co.uk

Don't let an important HMRC deadline catch you out this August.

Here are the key dates every business owner should have in their diary:

📅 7 August
✔️ VAT Return deadline (quarter ending 30 June)
✔️ First Making Tax Digital (MTD) for Income Tax quarterly update due for eligible taxpayers

📅 19 August
✔️ PAYE, National Insurance Contributions (NIC) and Construction Industry Scheme (CIS) payment deadline

📅 22 August
✔️ Electronic payment deadline for PAYE and Class 1 National Insurance Contributions

Missing these deadlines could lead to interest charges, penalties, and unnecessary compliance issues. Planning ahead helps keep your business running smoothly and ensures you stay on the right side of HMRC.

At Zaidi & Co, we help businesses stay compliant with HMRC, manage tax obligations efficiently, and never miss an important deadline.

📞 0208 767 2300
📧 [email protected]
🌐 www.zaidiandco.co.uk

Many SMEs focus on one number above all else: profit.

But here's the reality—profitable businesses can still run into financial trouble if they don't have enough cash available to meet their day-to-day obligations.

Growing sales often bring increased working capital demands. Cash can become tied up in:

✔️ Late-paying customers (debtors)
✔️ Higher stock and inventory levels
✔️ VAT and PAYE liabilities
✔️ Supplier payment terms
✔️ Unexpected operating expenses

That's why cash flow management is just as important as profitability.

Understanding your cash conversion cycle, monitoring debtor days, forecasting future cash requirements, and managing working capital effectively can make the difference between sustainable growth and unnecessary financial pressure.

At Zaidi & Co, we help SMEs move beyond compliance by providing proactive financial insights, cash flow forecasting, and strategic advice that supports long-term business growth—not just year-end accounts.

📞 0208 767 2300
📧 [email protected]
🌐 www.zaidiandco.co.uk