I Hate Numbers: Simplifying Tax and Accounting

Community Interest Companies, or CICs, are designed for businesses that want to make a difference while still being commercially sustainable. In this episode of the I Hate Numbers podcast, we explain what a CIC is, why it exists, and when it makes sense to form one.We cover the key differences between CICs and charities, the rules you must follow, and how profits are managed. Whether you are starting a social enterprise or transitioning from a limited company, this episode gives you a clear understanding of how to use a CIC structure to do good and stay financially viable.Main Topics & DiscussionWhat Is a Community Interest Company?A Community Interest Company is a special type of limited company created for social enterprises that want to use their profits and assets for public good. It combines commercial flexibility with a social mission, allowing businesses to operate with purpose while remaining financially independent.Why Choose a CIC?Unlike charities, CICs can trade freely, pay staff, and make a profit, but their assets and surplus must primarily benefit the community. The structure gives credibility to organisations that want to attract funding or contracts while showing a clear commitment to social impact.Many founders choose a CIC when they want to balance doing good with maintaining control and the ability to generate income.How CICs Differ from CharitiesCharities are regulated by the Charity Commission, while CICs are overseen by the CIC Regulator. The main distinction lies in flexibility. CICs can pay directors and distribute limited dividends, whereas charities face tighter restrictions. CICs also have simpler reporting and governance requirements compared to registered charities.Legal Requirements and OversightEvery CIC must submit an annual community interest report, explaining how its activities benefit the community. It must also file accounts with Companies House and remain transparent about how profits are used. The regulator can reject or question applications if a business’s objectives do not clearly serve the public interest.When to Register as a CICRegistering as a CIC makes sense when your business has a clear social or community purpose but still operates commercially. It is ideal for projects that generate revenue while tackling social or environmental challenges. If your main focus is profit for private shareholders, a traditional limited company may be a better fit.Funding Opportunities for CICsCICs can access funding from ethical investors, social impact funds, and grants that are unavailable to standard limited companies. This makes them attractive to entrepreneurs who want to create measurable change while sustaining long-term growth.Common Pitfalls to AvoidRunning a CIC comes with responsibilities. Failing to submit community reports, misusing profits, or not keeping accurate records can lead to penalties or deregistration. Always keep clear documentation of decisions and spending to remain compliant and maintain public trust.Final ThoughtsCommunity Interest Companies offer a balanced way to combine purpose and profit. They provide the freedom to operate like a business while committing to social good. Understanding when and how to form one helps you stay compliant and credible. A well-managed CIC not only supports your mission but strengthens your long-term financial sustainability.Episode Timecodes [00:00:00] – Introduction: What is a CIC? [00:01:04] – Why CICs exist and their social purpose [00:02:30] – CICs versus...

Social enterprises are businesses that aim to make a difference while staying financially healthy. In this episode of the I Hate Numbers podcast, Mahmood explains how social enterprises can combine purpose and profit, create impact, and still run with the discipline of a commercial business. We explore what defines a social enterprise, how they operate, and what sets them apart from charities or traditional businesses.Main Topics & DiscussionWhat Is a Social Enterprise?A social enterprise is a business that exists to tackle social or environmental challenges. It trades in goods or services but reinvests the majority of its profits into its mission. It’s not a charity, nor is it purely commercial. Instead, it sits in the middle, using business tools to achieve social goals.Purpose Meets ProfitSocial enterprises prove that doing good and being profitable can go hand in hand. They create real impact while ensuring the business remains viable. The more successful the business, the more impact it can make. Profit is not the enemy of purpose. It’s what helps fund the mission and sustain the good work over the long term.Legal StructuresSocial enterprises can take different forms. The most common structures include Community Interest Companies (CICs), Companies Limited by Guarantee, and Co-operatives. Each structure defines how profits are distributed and how accountability is maintained. Choosing the right structure is key to balancing transparency, control, and long-term sustainability.Funding and Financial HealthUnlike charities that rely mainly on donations or grants, social enterprises trade their way to success. They may still receive grants or investment, but trading income keeps them independent and resilient. Sound financial planning and management are essential. Mahmood stresses the need for strong bookkeeping, cash flow monitoring, and reinvesting profits wisely.Challenges Social Enterprises FaceSocial enterprises face unique challenges. Balancing impact with income can be tricky. They must compete with commercial businesses while upholding ethical values. Access to funding can also be harder because investors look for returns, not just results. Despite this, the sense of purpose and community support keeps them moving forward.Impact and AccountabilitySocial enterprises must measure and report their impact. It’s not just about numbers but about demonstrating social value. Whether it’s job creation, community development, or environmental change, they need to show tangible results. Transparency builds trust with stakeholders and reinforces credibility with customers and funders alike.Examples of Social EnterprisesAcross the UK, social enterprises are thriving. Companies like The Big Issue and Divine Chocolate are powerful examples. They combine business models with strong missions. Each shows how profitability and social good can strengthen one another when purpose drives every decision.Common Mistakes to Avoid Neglecting financial planning or relying too much on grants. Losing sight of the core mission in pursuit of profit. Failing to measure or report social impact clearly. Choosing the wrong legal structure without considering long-term implications.Final ThoughtsSocial enterprises are proof that doing good can be profitable. With clear goals, financial control, and community focus, they can thrive and create lasting impact. Mahmood reminds us that purpose and profit are not opposites but partners in success. If...

VAT may seem simple in theory, but in practice it can feel like opening a tin without a ring pull. For VAT-registered businesses, invoices are the foundation of compliance. Get them wrong and you risk late payments, disputes, and HMRC penalties. Get them right, however, and you protect your cash flow, build credibility, and reduce stress.What Is a VAT Invoice?A VAT invoice is much more than a receipt. It is a legal document that proves VAT has been correctly applied and charged. Only VAT-registered businesses are allowed to issue VAT invoices, and these must be provided whether the supplies are standard or reduced rate. Importantly, you have 30 days from the tax point to issue one, and you must always keep copies for your records. HMRC expects every VAT-registered business to maintain a tidy audit trail.Why VAT Invoices Are EssentialFirst and foremost, VAT invoices keep you compliant. They demonstrate that VAT has been applied correctly, which protects you during audits and supports your customers in making their own claims.Secondly, they build trust. When invoices are clear and accurate, customers are more confident in working with you and disputes are avoided before they arise.Finally, VAT invoices play a huge role in your cash flow. Clear and accurate invoices speed up payments, and as we know, once cash flow dries up, businesses risk closure. Invoices done well are therefore not only about compliance but about survival.Mandatory Information for a VAT InvoiceThere are several items that must appear on every VAT invoice. You must include your VAT registration number, which identifies you as eligible to charge VAT. Each invoice also needs a unique and sequential number, with no gaps or duplicates—accounting software like Xero can handle this automatically.Both the date of supply and the date of issue must be shown clearly, as these may differ. Your business name and address should be present, as well as the customer’s details. Where appropriate, including the customer’s VAT number can also be useful.Perhaps most importantly, invoices must describe exactly what was supplied. Simply writing “services” is not acceptable; you must state what was provided, when, and how. Quantities, units, and pricing must be broken down line by line, with the VAT rate and net amount shown. The total VAT amount must be displayed separately, and the gross total including VAT should be clear and obvious. Even if the invoice is in dollars or euros, the VAT amount must always be shown in sterling.If discounts are offered, they should be explained in full, with the terms clearly applied. Missing any of these details could invalidate the invoice.Special Rules and Simplified InvoicesIn some cases, special rules apply. For example, if you use a margin scheme, you do not need to show VAT separately, but you must include the correct wording for the scheme. Businesses in Northern Ireland trading with the EU must include the customer’s VAT number with their country code. Retailers, on the other hand, are not normally required to issue VAT invoices to non-registered customers. Instead, for sales under £250, simplified invoices can be issued, which still require basic details such as your VAT number, date of supply, description of goods or services, VAT rate, and total payable.When issuing credit notes, always mirror the original invoice. Reference the original invoice number and clearly show any reductions, returns, or cancellations. This ensures transparency and protects both you and your customers.Electronic vs Paper InvoicesWhether paper or digital, both types of invoices carry the same legal weight. Many businesses still use paper invoices, but electronic invoicing is...

Business success doesn’t start with numbers, strategy, or sales—it starts with belief. If we don’t believe in ourselves, we hold back. If we do, we take action. Mahmood explains why self-belief is the foundation that drives progress and resilience in business.What Self-Belief in Business Really Means Trusting your decisions: Self-belief is about backing yourself, even when the path isn’t clear. It doesn’t mean ignoring advice but having the confidence to choose and move forward. Seeing challenges as opportunities: Instead of being paralysed by setbacks, self-belief helps us see them as lessons and stepping stones toward progress. Balancing realism and optimism: It’s not blind confidence. True self-belief comes from preparation, planning, and recognising our own ability to adapt.Why Self-Belief Shapes Success Decision-making becomes faster and clearer: When we believe in ourselves, we avoid second-guessing and keep momentum in our businesses. Resilience improves: Business is full of bumps, but self-belief ensures we bounce back rather than stall at the first sign of difficulty. Growth feels possible: With self-belief, we are more willing to set ambitious goals, pursue opportunities, and step outside our comfort zones.Building Stronger Self-Belief Start small and act: Confidence grows through action. Take small, consistent steps in your business to build momentum and proof that you can achieve results. Keep learning: Knowledge and preparation reduce fear. Whether through courses, mentors, or reading, ongoing learning strengthens self-belief. Track your wins: Reflecting on progress, no matter how small, reminds us of how far we’ve come and reinforces confidence for the future. Seek supportive voices: Surround yourself with people who encourage and challenge you, not those who sow doubt or negativity.Common Mistakes to Avoid Confusing self-belief with arrogance—one drives growth, the other creates blind spots. Thinking self-belief is fixed. It can be built and strengthened with consistent effort. Waiting for “perfect confidence” before acting. Action builds belief, not the other way around.Final ThoughtsSelf-belief is the unseen foundation of business success. It fuels our ability to take risks, bounce back, and keep growing. Without it, even the best strategy or advice can fall flat. With it, we unlock the confidence to plan, act, and profit.Episode Timecodes [00:00:00] – Introduction: Why self-belief is the hidden key [00:01:15] – Defining self-belief in business [00:03:20] – Why self-belief shapes success [00:06:05] – How to build stronger self-belief [00:09:10] – Mistakes and misconceptions [00:11:00] – Final thoughts and next stepsHost & Show InfoHost Name: Mahmood RezaAbout the Host: Mahmood is an accountant, tax...

In this episode of I Hate Numbers, we uncover why budgeting is not a straitjacket, but one of the most liberating tools you can use in business. Far from restricting you, a budget gives you clarity, control, and confidence. By the end of this episode, you’ll see budgeting in a whole new light. We share eight powerful advantages of budgeting that will help you reduce stress, improve decision-making, and move closer to your business goals. Episode Summary Budgeting gives your business direction and resilience. In this episode, we explore: Why clarity is the first gift of a budget. How budgeting keeps you in control of cash flow and costs. How goals and purpose are shaped and supported by budgeting. Why numbers + instinct = better decision making. How budgeting improves communication with your team. Why targets boost motivation and accountability. How budgeting reduces risks and flags problems early. Why achievement is more likely when you have a roadmap. Timestamps [00:00] – Why budgeting is misunderstood — and why it’s liberating, not restrictive. [00:01:03] – Advantage 1: Clarity – your business sat nav. [00:02:00] – Advantage 2: Control – your financial dashboard. [00:03:00] – Advantage 3: Purpose and goals – aligning money with mission. [00:04:00] – Advantage 4: Better decision making – blending instinct with numbers. [00:04:47] – Advantage 5: Communication – involving your team in the process. [00:05:30] – Advantage 6: Motivation – why targets inspire commitment. [00:05:50] – Advantage 7: Risk reduction – spotting red flags early. [00:06:37] – Advantage 8: Achievement – turning dreams into measurable results. [00:07:20] – Closing thoughts: Why budgeting is your financial roadmap. Links Mentioned in This Episode Order the book I Hate Numbers for more practical advice on budgeting. Visit the I Hate Numbers website for resources and guides. Call to Action If you enjoyed this episode, subscribe to the I Hate Numbers podcast on Apple Podcasts and leave us a review — it helps more business owners discover the show. Want personalised advice? Book a call with us today and let’s work together on your budget and business growth. You can also visit our website for tools and resources to plan better, save tax, and grow your business. Plan it. Do it. Profit.

In this episode of the I Hate Numbers podcast, we shine a light on a common but costly issue—Class 2 National Insurance wrongly charged by HMRC. Thousands of self-employed people and small business owners are impacted each year. We’ll explain why it happens, how it affects your state pension and benefits, and the exact steps you should take to put things right.Main Topics & Discussion What Class 2 NI Is: Class 2 National Insurance is a flat-rate weekly contribution (£3.45 in 2024–25) paid by the self-employed. It secures your entitlement to the state pension and certain benefits. While the cost is relatively small, missing payments can leave gaps in your record that affect your long-term financial security. Why HMRC Gets It Wrong: Errors often occur because of mismatched data across HMRC systems, mistakes in reporting self-employed profits, or discrepancies between your self-assessment and NI records. These issues can trigger incorrect charges, meaning you pay contributions you don’t actually owe. The Real Impact: Overpaying NI reduces your immediate cash flow, which is critical for self-employed individuals. On the flip side, if HMRC fails to charge you when it should, you may end up with gaps in your NI record, putting your future pension entitlement at risk. How to Check: The best defence is to stay proactive. Always log into your HMRC account to check your self-assessment details and compare them with your National Insurance contributions. Reviewing your pension record regularly helps you spot missing or extra payments early, avoiding problems later. Steps to Fix: If you think you’ve been wrongly charged, contact HMRC as soon as possible. Provide supporting documents, such as tax returns, profit and loss statements, or payment evidence. You can request corrections to your NI record or claim a refund for overpayments, but the process takes time, so early action is key.Common Mistakes to Avoid Assuming HMRC Is Always Right: Many taxpayers accept charges at face value, but HMRC systems are not flawless. Always double-check your notices and statements before paying. Ignoring Your Records: Failing to review your NI contributions and pension record regularly could mean years of unnoticed errors. By the time you claim your pension, it may be too late to fix. Not Reclaiming Refunds: If you don’t take action, you could lose money unnecessarily. HMRC does process refunds, but you must initiate the request and provide the right evidence.Final ThoughtsClass 2 National Insurance may look small on paper, but the consequences of getting it wrong are significant. Errors can drain your cash flow or leave gaps in your pension record. By checking your account, acting quickly, and challenging HMRC when necessary, you can save money and protect your future benefits. Proactivity pays off when it comes to NI.Episode Timecodes [00:00:00] – Introduction to Class 2 NI errors [00:01:20] – What Class 2 NI contributions cover [00:03:15] – Why HMRC often charges the wrong amounts [00:05:42] – The impact on pensions and benefits [00:07:30] – How to spot and check for errors [00:09:10] – Steps to fix HMRC...

Many people have unused space that could generate extra income. But before you start renting out your garage or driveway, you need to understand the tax implications. In this episode of the I Hate Numbers podcast, we explain how to keep it legal and tax-efficient while boosting your earnings.What You’ll Learn in This Episode The UK tax rules for renting out garages, driveways, and storage spaces. How much income you can earn tax-free under the property allowance. What records to keep and when you need to declare the income. Practical tips for staying compliant and avoiding HMRC problems.How Tax-Free Income WorksIf you rent out your garage, driveway, or storage space, HMRC treats this as property income. But the good news is that you can earn up to £1,000 tax-free under the property allowance. If your income stays within that limit, there’s nothing to report. Go over it, and you’ll need to declare it on your self-assessment tax return.Property Allowance Explained £1,000 property allowance applies to rental income, including garage and driveway rentals. No need to register or report income if you stay under £1,000. If you earn more, you can deduct either actual expenses or the £1,000 allowance.What Counts as Rental Income?Renting your driveway to a commuter or your garage for storage counts as taxable property income. Even if it’s casual or occasional, HMRC expects you to declare it if it exceeds the allowance. Payments from family members for genuine rent also count.When to Tell HMRCIf your total income from this activity is over £1,000 in the tax year, you need to inform HMRC and include it on your tax return. Failure to do so can lead to penalties, so track what you earn.Keeping Records Track all payments received. Keep agreements, even informal ones, in writing. Record any related expenses if you plan to claim them.Final ThoughtsRenting out unused space can be a smart way to boost your income, but don’t fall into the trap of ignoring tax rules. Use the property allowance wisely, keep good records, and stay compliant. It’s simple once you know the basics.Links Mentioned in This Episode 🔗 Book a CallEpisode Timecodes [00:00:00] – Intro: Earning from unused space [00:01:12] – How the property allowance works [00:02:34] – What counts as rental income [00:04:15] – Reporting requirements [00:05:20] – Record keeping tips [00:06:10] – Final takeaways🎧 Listen & Subscribe to I Hate NumbersEarn extra income without the tax stress. Listen on Apple Podcasts, share this episode, and subscribe for weekly tax and business tips. Plan it. Do it. Profit.Additional Links 🔗

Making Tax Digital for Income Tax may sound technical, but we break it down simply. In this episode, we share what MTD for ITSA is, who needs to comply, when it starts, and how to prepare effectively. If you’re a sole trader, landlord, or small business owner, this episode is essential listening.What You’ll Learn in This Episode What Making Tax Digital for Income Tax is and why it matters. Who must comply, who is exempt, and turnover thresholds. How to prepare with compatible software and proper bookkeeping. Practical steps to avoid fines, stress, and last-minute panic. Real examples of businesses affected by MTD.Making Tax Digital ExplainedMTD for Income Tax is HMRC’s plan to move tax reporting into the digital world. Instead of submitting one annual return, you’ll send four quarterly updates via approved software. It’s like switching from a paper diary to an online calendar—more visibility, fewer surprises, and closer monitoring of compliance.Who Must ComplyIf you are a sole trader or a landlord and your turnover exceeds £50,000 in 2024/25, you must join MTD from 6 April 2026. Turnover here means income before expenses. HMRC looks at the full amount coming in, not what you keep after costs.Practical Examples from the EpisodeHere are some real-life examples mentioned in the episode to show how MTD rules apply in practice: Deepak, a self-employed builder, has a turnover of £55,000 in 24/25. He must join MTD from April 2026. Sarah, a landlord renting three flats with gross rental income of £48,000 in 25/26, must join MTD from April 2027. Paul, a market trader with turnover of £52,000 in 24/25, is seasonal but still exceeds the threshold, so he must join in April 2026.Exemptions and ExceptionsNot everyone needs to join immediately. If your income is below £20,000, or you qualify based on age, disability, or location, you can apply for exemption. Exemption does not remove the requirement to file a self-assessment; it only exempts you from quarterly digital updates. For example, a freelance designer earning £14,000 per year is under the threshold and does not need to join MTD.Preparing for MTD Choose compatible software—Xero, QuickBooks, or FreeAgent are common options. (We recommend Xero as a Platinum partner.) Authorize the software to link with HMRC for quarterly updates. Decide who handles submissions—yourself or an accountant—and agree on fees upfront. Keep bookkeeping accurate and up to date; don’t wait until year-end. Consider joining voluntarily early to test the system and gain confidence, like Sebastian, who signed up early in 24/25 and felt stress-free by April 26.Benefits of Preparing EarlyEarly preparation reduces stress, avoids penalties, and gives better control of cash flow. You can see quarterly profits building, plan tax efficiently, and identify whether incorporating or other planning is beneficial. Avoid last-minute panic and get ahead of HMRC deadlines.Real Consequences of DelayLeopold set up his software a week before the first submission and struggled with data import, missed the submission, and faced unnecessary fines. Don’t be like Leopold—preparing early

Illegal dividends sound complicated, but we break them down in simple terms. In this episode, we share what counts as an illegal dividend, why they happen, and the steps you can take to avoid expensive problems. If you’re a company director or shareholder, this is essential listening.What You’ll Learn in This Episode What an illegal dividend is and why it matters. The tax consequences for the company and directors. How HMRC identifies illegal dividends. Practical steps to stay compliant and stress-free.Illegal Dividends ExplainedUnder the Companies Act 2006, dividends can only be paid from accumulated, realised profits. If your company doesn’t have enough retained profits, paying a dividend is unlawful—even if your bank account looks healthy. It’s a common mistake, especially when cash and profit are confused.Why Illegal Dividends Cause ProblemsThis isn’t just a technical breach—it can trigger serious tax consequences, increase insolvency risk, and create personal liability for directors. Think of it like driving without insurance. You may not get caught immediately, but if things go wrong, the impact can be huge.Tax Consequences for the CompanyIf an illegal dividend is treated as a director’s loan and not repaid within nine months of the year-end, HMRC charges an additional tax of 33.75% on the amount. This applies even if the company is making a loss. While the charge is refundable if repaid later, the wait is long and the cost can hurt cash flow.Tax Consequences for DirectorsDirectors can face extra tax on loans over £10,000, including a benefit-in-kind charge and Class 1A NIC. If the loan is written off, it’s treated as additional income and taxed accordingly. In liquidation, illegal dividends can make directors personally liable for repayment, creating serious financial risk.How HMRC Identifies Illegal DividendsHMRC uses digital filing and iXBRL-tagged accounts to check for inconsistencies between reserves and declared dividends. If your accounts show negative reserves but dividends paid out, expect questions. This is an easy red flag for HMRC systems.Steps to Stay Compliant Check retained profits before declaring dividends. Don’t confuse cash with profitability. Keep management accounts up to date using software like Xero. Consult your accountant if unsure. Repay unlawful dividends quickly if you make a mistake.Key TakeawaysIllegal dividends aren’t worth the risk. Review your dividend policy, maintain accurate records, and seek advice when in doubt. Avoid unnecessary tax charges and personal liability by staying compliant and proactive.Links Mentioned in This Episode 🔗 Book a CallEpisode Timecodes [00:00:00] – Intro: Why illegal dividends matter [00:01:00] – What is an illegal dividend? [00:02:13] – Why they create problems [00:03:09] – Tax consequences for companies [00:04:35] – Tax consequences for directors [00:06:25] – HMRC checks and red...

Trivial benefits are a great way to reward staff and directors without adding tax or National Insurance to the bill. In this episode of the I Hate Numbers podcast, we explain what trivial benefits are, the rules that must be followed, and how they can be used effectively in 2025. This is about giving without the tax sting.Main Topics & DiscussionWhat Are Trivial Benefits? Small gifts or perks given to employees that do not count as taxable income. Completely exempt from tax and National Insurance if all conditions are met. Can be given to both employees and directors, but with limits for directors.Key Conditions for Exemption Cost must not exceed £50 per benefit. Must not be cash or a cash voucher. Must not be a reward for work or performance. Must not be part of contractual entitlement.Annual Limit for Directors Directors of close companies (and their family members) have a total annual cap of £300 in trivial benefits. This means up to six separate £50 gifts per tax year.Examples of Trivial Benefits Flowers for a birthday. Gift card (non-cash) to celebrate a personal event. Meal out not linked to business performance. Small seasonal gifts like chocolates or wine.Common Mistakes to Avoid Exceeding the £50 limit – the whole benefit becomes taxable if this happens. Giving cash or cash vouchers – these are always taxable. Linking the benefit to performance or contractual terms.Final ThoughtsTrivial benefits are a simple, tax-efficient way to build goodwill with staff and directors. Staying within the rules ensures the gift remains tax-free, helping businesses to be generous without unwanted costs. Planning these benefits throughout the year can also make them more meaningful and spread the goodwill.Links Mentioned in This Episode Book a CallEpisode Timecodes [00:00:00] – Introduction to trivial benefits [00:01:12] – What trivial benefits are [00:02:08] – Rules for exemption [00:03:30] – Directors’ annual limits [00:04:22] – Examples [00:05:16] – Common mistakes [00:06:20] – Final adviceHost & Show InfoHost Name: Mahmood RezaAbout the Host: Mahmood is an accountant, tax expert, and founder of I Hate Numbers. With over 30 years of experience, he helps businesses make sense of tax and finances so they can grow with confidence.Podcast Website:https://www.ihatenumbers.co.uk/i-hate-numbers-podcast/🎧 Listen & Subscribe to I Hate NumbersStay tax smart all year...

In this episode of I Hate Numbers, we’re diving into five powerful tax-free health and welfare benefits that employers can offer to their team. Whether you run a small business, creative agency, or a social enterprise, these perks can boost morale, reduce stress, and keep you compliant — all without adding to your tax bill.From annual health check-ups to mental health counselling, you’ll learn how to implement these benefits, avoid benefit-in-kind traps, and make your workplace healthier without increasing payroll costs.Episode SummaryWe break down each of the five benefits, explaining how they work, the conditions you must follow, and why they’re a win-win for you and your employees. You’ll get practical examples, compliance tips, and a simple checklist to review and improve your current benefits package.Timestamps [00:00] – Introduction: Why health & welfare benefits matter and what “tax-free” really means. [00:00:39] – Benefit 1: Annual health check-ups – what’s included and what’s not. [00:01:40] – Benefit 2: Eye tests & glasses for screen use – how to stay compliant. [00:02:44] – Benefit 3: £500 towards recommended medical treatment – conditions & evidence needed. [00:03:41] – Benefit 4: Medical treatment while working overseas – rules & examples. [00:04:42] – Benefit 5: Mental health and welfare counselling – what’s covered and what’s excluded. [00:05:44] – Wrap-up: Why these benefits are more than “nice extras” and how to implement them. [00:06:49] – Closing thoughts: Support your team, save tax, and strengthen your recruitment strategy.Links Mentioned in This Episode Visit the I Hate Numbers website to book a diagnostic review session.Call to ActionIf you found value in this episode, make sure to subscribe to the I Hate Numbers podcast on Apple Podcasts and leave us a review — it helps more people find the show and benefit from these tips.You can also visit our website to explore resources, guides, and tools to help you plan, save tax, and grow your business.Plan it. Do it. Profit.

Property taxes can be confusing—especially when dealing with both UK and overseas rentals. In this episode of the I Hate Numbers podcast, Mahmood simplifies the rules for landlords, including how to report income, claim expenses, and avoid common mistakes that cost money.Main Topics & DiscussionUK Property Income Tax applies to rental income from UK property, regardless of where you live. Includes residential, commercial, furnished holiday lets, and even part of your home if rented. Must declare gross rents, allowable expenses, and profit on your tax return.Overseas Property Income UK residents pay tax on worldwide rental income. Double Taxation Relief may apply if tax is also paid abroad. Exchange rates must be considered when reporting foreign income.Allowable Expenses Deductible costs include repairs, letting agent fees, insurance, and utilities (if landlord-paid). Mortgage interest relief is restricted and subject to tax credit rules. Improvement costs are capital, not revenue, so not immediately deductible.Property Ownership Structures Rental profits are taxed on the legal owner(s). Joint ownership splits income for tax purposes. Using a company for property may offer tax advantages but adds complexity.Common Mistakes to Avoid Forgetting to declare overseas rental income. Mixing personal and rental expenses without evidence. Ignoring currency conversion rules. Missing out on capital allowances or reliefs for certain property types.Final ThoughtsTax on property income doesn’t have to be overwhelming. Understand what’s taxable, keep good records, and use reliefs wisely. Whether your property is in the UK or abroad, planning and compliance are key to keeping more of your money.Links Mentioned in This Episode 🔗 Book a CallEpisode Timecodes [00:00:00] – Intro: Why property tax rules matter [00:01:10] – UK property income explained [00:03:00] – Overseas property income & tax relief [00:05:15] – Allowable expenses landlords can claim [00:07:00] – Ownership structures & tax implications [00:09:00] – Common mistakes to avoid [00:10:30] – Final thoughts & next stepsHost & Show InfoHost Name: Mahmood RezaAbout the Host: Mahmood is an accountant, tax advisor, and founder of I Hate Numbers. With decades of experience helping landlords and businesses, he makes tax easier so you can focus on growth.Podcast Website:https://www.ihatenumbers.co.uk/i-hate-numbers-podcast/🎧 Listen &

Main Topics & DiscussionVAT Registration Triggers You must register when taxable turnover exceeds £90,000 in any rolling 12-month period. Also required if you expect turnover to exceed £90,000 in the next 30 days. Applies to sole traders, partnerships, CICs, and limited companies—even overseas businesses selling to UK customers.What Counts as Taxable Turnover? Includes standard-rated, reduced-rated, and zero-rated supplies. Also counts: free gifts, goods you use personally, barter services, reverse-charge services (like Google Ads), and certain construction work. Excludes exempt or outside-the-scope items like insurance or genuine donations.Deadlines and Late Registration Penalties Notify HMRC within 30 days of crossing the threshold. Registration date is the 1st day of the second month after exceeding the limit. Missing the deadline can mean penalties, interest, and paying VAT out of pocket.How to Register for VAT Go to gov.uk/register-for-vat with a Government Gateway account. Sole traders need NI number, UTR, photo ID, bank details, and estimated turnover. Companies need registration number, UTR, bank details, and estimated turnover. Decide on special schemes (e.g. flat rate) during registration.Voluntary VAT Registration You can register even before reaching £90,000. Benefits: reclaim input VAT, boost business credibility, prepare for Making Tax Digital. Drawback: must charge VAT to all taxable customers, including those who cannot reclaim it.Staying Compliant Keep proper VAT records and issue compliant invoices. Submit VAT returns on time via MTD-compliant software (like Xero). Maintain accurate bookkeeping for insights and compliance.Common Mistakes to Avoid Ignoring the rolling 12-month calculation. Forgetting to track taxable turnover inclusions. Assuming voluntary registration always works in your favour. Missing deadlines and failing to issue proper invoices.Final ThoughtsVAT registration is manageable when you understand the triggers and process. Whether mandatory or voluntary, take control, keep records, and use digital tools to stay compliant. And if you need help, support is available.Episode Timecodes [00:00:00] – Intro: Should you register for VAT? [00:00:43] – VAT registration rules and triggers [00:02:30] – What counts as taxable turnover? [00:04:00] – Deadlines and penalties [00:05:44] – How to register online [00:07:16] – Benefits of voluntary registration [00:08:00] – Staying compliant with records

National Insurance Contributions (NICs) work differently for company directors—and misunderstanding them can cost you. In this episode of the I Hate Numbers podcast, we walk through the 2025–26 rules, salary thresholds, and two key methods of NIC calculation. Whether you take a regular wage or one-off payments, knowing how to handle director NICs can save you money, reduce stress, and keep HMRC off your back.Main Topics & DiscussionHow Director NICs Differ From Regular Employees Directors have an annual earnings period, not weekly/monthly thresholds HMRC calculates NICs based on total annual earnings Irregular pay? No problem—NICs are smoothed out over the year Directors are not subject to minimum wage lawsTwo Methods for NIC Calculation1. Annual Earnings Method (Default) Works on cumulative pay vs. annual thresholds Ideal for directors taking irregular or one-off salary payments Flexible but may result in large NIC bills late in the year2. Alternative Method (Regular Earnings Basis) NICs calculated monthly like regular employees Ideal for steady monthly salaries Requires end-of-year reconciliation to ensure total NIC due is paid2025–26 NIC Thresholds & Rates Primary Threshold (Employee): £12,570 (NIC starts here) Upper Earnings Limit: £50,270 (NIC drops to 2% above this) Employer NIC Threshold: £5,000 (NIC starts here) Employee Rate: 8% (then 2%) | Employer Rate: 15%Choosing the Best MethodAnnual Method Best for flexible, irregular salary patterns Slower NIC buildup—good for cash flow May cause unpredictable deductionsAlternative Method Best for steady monthly salary (e.g. £1,200/month) Predictable deductions, easier budgeting Must reconcile at year-end; risk of surprises if ignoredSalary Planning OptionsOption 1: Pay £5,000 Salary No income tax, employee NICs, or employer NICs Doesn’t qualify as a state pension yearOption 2: Pay £12,570 Salary Full personal allowance used Triggers NICs but qualifies for state pension Check employment allowance rules if sole directorCommon Mistakes to Avoid Using annual method without tracking thresholds Forgetting year-end reconciliation under alternative method Assuming £5,000 salary qualifies for pension—it doesn’t Missing out on planning opportunities that reduce NIC and taxReal-World...

“Can you do it for exposure?” If you've heard that before, you’re not alone. Whether you’re a designer, coach, accountant, or small business owner, requests for free work are common—and controversial.In this episode of the I Hate Numbers podcast, we unpack when working for free makes sense, when it hurts your business, and how to navigate those tricky requests with professionalism and confidence.Main Topics & DiscussionWhen Saying Yes Might Make Sense Exposure & VisibilitySpeaking at industry events or collaborating with the right audience might open doors—if the value exchange is clear. Building a PortfolioWhen starting out or pivoting, unpaid projects can build credibility and act as proof of concept—but only as a short-term strategy. Passion Projects & VolunteeringSometimes, working for free aligns with your values. Whether it’s helping a charity or supporting a cause, do it for joy—not obligation.The Real Cost of Free Work Unpaid BillsExposure doesn’t cover rent or fund your business growth. Without income, your business becomes a very expensive hobby. Devaluation of Your WorkFree often signals low value. It affects how others see your expertise and sets a difficult precedent when you eventually want to charge. Burnout & ResentmentTaking on too many unpaid gigs leads to frustration, exhaustion, and a loss of motivation.5 Questions to Ask Before Saying Yes What do I get out of this? Am I choosing this, or being emotionally manipulated? Can they actually afford to pay me? Will this set a long-term precedent? What does my gut say?How to Say No Professionally “Thanks for thinking of me. I’d love to help, but I can’t take on unpaid work right now.” “If you have a budget in future, I’d be happy to chat.” “It wouldn’t be fair to my paying clients.”Be polite but firm. No need to apologise. Read your message aloud before sending.When Free Can Be Strategic Treat it like a marketing expense: proof of concept, brand visibility, or network building. Make sure it aligns with your long-term goals. Ask: “Would I pay for this opportunity if it weren’t free?”Real-World InsightMahmood shares how he’s worked for free through volunteering, guest speaking, and events—always with intention and clarity. Sometimes unpaid work brings real returns—but only when it's your choice, not an obligation.Final TakeawayFree work is a strategy, not a habit. Use it selectively. Stay in control. Your work deserves to be valued—financially and professionally.Links Mentioned in This Episode 🔗 I Hate Numbers YouTube Channel 📘  I

Thinking of starting your own business? Whether it's for freedom, profits, or making an impact, success begins with clarity and preparation. In this week's episode of the I Hate Numbers podcast, we explore how to start with success in mind—and avoid the common pitfalls that derail so many new businesses.Drawing from decades of real-world experience, Mahmood shares what it really takes to build a sustainable, profitable business—from defining your "why" to knowing your numbers.Main Topics & DiscussionKnow Your "Why"Your "why" is the foundation of your business. It's your motivation and direction. Whether it's freedom, profit, social impact, or personal pride—clarity here keeps you focused when challenges arise. Define Success On Your TermsSuccess looks different for everyone. Is it financial freedom, more time, job creation, or personal fulfilment? Define what success means to you—and how you'll know when you've arrived. Set SMART Goals & KPIsVague goals like "get more clients" don't cut it. Use SMART goals (Specific, Measurable, Achievable, Relevant, Time-bound) to set clear targets. Track progress with KPIs like: Income and profit targets Website traffic and conversions Client retention and churn ratesUnderstand Your CustomerBusiness success depends on knowing your customer. Who are they? What problems do they have? How does your product or service solve them?Remember the 7Ps of Marketing: Product, Price, Promotion, Place, Packaging, Positioning, PeopleKnow Your NumbersNumbers are your business compass. Get comfortable with: Digital bookkeeping (cloud accounting recommended) Budgets and cash flow forecasts Profit targets and pricing strategiesGood financial systems reduce stress and support smarter decisions. Leadership & Mindset MatterStarting a business is tough. Expect good days and bad. Success requires resilience, consistent action, and continuous learning. Good leadership is about making decisions, learning from mistakes, and staying focused. Real-World ExampleMahmood reflects on starting his own business 30 years ago—from a back bedroom to building I Hate Numbers. The lessons? Clarity, systems, knowing your numbers, and staying focused on your "why". Links Mentioned in This Episode 🔗 Cloud Accounting & Xero SupportEpisode Timecodes [00:00:00] – Introduction: Defining success in business [00:01:00] – The importance of knowing your "why" [00:02:38] – Defining success on your terms [00:03:18] – Setting SMART goals & KPIs [00:05:00] – Understanding your customer & the 7Ps [00:06:16] – Know your numbers: budgeting & cash flow [00:08:00] – Leadership, mindset & resilience...

The Hidden Tax Saving for Single Director CompaniesAre you a sole director of your own limited company? Do you follow the typical model—small salary, dividends, smart tax planning? If so, today's episode of the I Hate Numbers podcast is essential listening.Many think the Employment Allowance is off-limits for single director companies. But with the right setup and careful planning, you could unlock over £1100 in National Insurance savings for the 2025–26 tax year.We break down exactly how to stay legal, compliant, and cash smart—without falling foul of HMRC rules. Main Topics & DiscussionThe Rising Cost of Employers National Insurance (NI)From 6 April 2025, employers NI increased to 15%. The point at which NI kicks in—the Secondary Threshold—also dropped to £5,000. That means you pay NI sooner and at a higher rate.What is the Employment Allowance?The Employment Allowance lets eligible businesses reduce their employers NI bill by up to £10,500 (2025–26 figure). But single director companies usually can't claim—unless they meet specific conditions.Two Legal Options to Unlock the Allowance1. Hire an Additional Employee Real work must be performed Minimum wage rules apply One week's work at £97 or more qualifies Claiming the allowance saves around £1100 per year2. Restructure Director Roles Resign as company director Appoint a trusted person as director (e.g., spouse, partner) You remain an employee, not a director Triggers eligibility for the allowanceBoth methods are legal, provided the setup is genuine and properly documented. Essential Record-Keeping and Compliance Use reliable payroll software Submit claims via HMRC’s EPS service Keep payslips, employment contracts, board minutes Maintain proper Company House filings if changing director structureCostly Mistakes to Avoid Assuming you're ineligible without checking Faking employees to trigger the allowance Missing the claim deadline for the current tax yearReal-World ExampleA single director pays themselves £12,570. Without the Employment Allowance, they'd owe £1135 in employers NI. By meeting the conditions and claiming the allowance, that bill disappears—saving over £1100 annually.Links Mentioned in This Episode Webinar: How to Handle the Rise in Employers NI in April 2025 Book a Business Tax ChatEpisode Timecodes[00:00:00] – Introduction: Who this episode is for[00:01:17] – Rising employers NI and threshold changes[00:02:55] – What is the Employment Allowance?[00:04:00] – Option...

Let’s be honest—nobody looks forward to tax season. However, leaving your return until January could mean unnecessary stress, missed opportunities, or even money left on the table. Filing your 2024-25 tax return early, on the other hand, brings more than peace of mind. It gives you financial clarity, greater control, and even potential savings.In this week’s episode of the I Hate Numbers podcast, we share 10 powerful reasons why getting ahead of your tax obligations is one of the smartest financial moves you can make. Whether you're self-employed, a freelancer, or a landlord, early filing can seriously improve your business and personal finances.Main Topics & DiscussionWhat is Early Tax Filing and Why It MattersEarly filing means submitting your self-assessment tax return well before the 31st January 2026 deadline for the 2024-25 tax year. It’s optional, but it brings clarity, helps avoid last-minute chaos, and often leads to better tax decisions. 10 Reasons to File Your Tax Return Early1. Remove the Stress EarlyTax season doesn’t have to mean panic. Filing early clears the task from your to-do list and lets you enjoy the holiday season stress-free. 2. Know What You Owe HMRCEarly filing gives you a confirmed tax bill months in advance. No nasty surprises. No guessing. And plenty of time to budget or plan a repayment if needed. 3. Spread Tax Payments Through PAYEIf you owe under £3,000 and are in PAYE employment, you can file by 30 December 2025 and have HMRC collect the tax through your salary over 2026-27. It’s like an interest-free loan. 4. Get Tax Refunds SoonerIf you're owed money, early filing gets your refund processed faster. That cash could help your household budget or business capital immediately. 5. Reduce Your July Payment on AccountFiling before 31 July 2025 could reduce or eliminate your second payment on account. Perfect if income has dropped or business losses apply. 6. Prepare for Making Tax Digital (MTD)MTD starts April 2026 for sole traders and landlords earning over £50,000. Filing early lets you see if you're affected and gives time to prepare. 7. Manage Transition Profits2023-24 triggered a shift to fiscal-year accounting. Early filing helps manage any transition profits in 2024-25 and optimise tax reliefs over five years. 8. Prove Income for Loans or MortgagesEarly returns provide official proof of income (think SA302) needed for mortgage applications, loans, or other financial support. 9. Enable Better Tax PlanningThe earlier you file, the earlier you see where you can be more tax efficient. That could mean adjusting pensions, business structure, or income strategies. 10. Keep Your Accountant Happy (and Costs Lower)Avoid the January rush and build goodwill with your accountant. Many practices charge a premium for late submissions or may be fully booked. Real-World ExampleImagine you overpaid your tax or have losses to claim. Early filing could put money back in your pocket within weeks. Or if you're budgeting, knowing your January 2026 bill now means no scrambling for cash later. Key Tax Dates to Remember 6 April 2024: Start of the 2024-25 tax...

Voluntary VAT registration might sound crazy - why become an unpaid tax collector before you legally have to? But this proactive strategy could put thousands of pounds back in your pocket. This episode reveals when voluntary VAT registration makes sense and how it could benefit your growing business.We explore five compelling reasons to consider early registration, from reclaiming pre-registration VAT up to four years back, to improving cash flow and professional credibility. We also cover the real downsides - admin burden, pricing impacts, and when it could hurt your business. Whether you're approaching the £90K threshold or just starting out, this episode provides the framework to make an informed decision.Main Topics & DiscussionUnderstanding Voluntary VAT RegistrationUK businesses must register for VAT within 30 days of hitting £90,000 turnover over 12 months. Voluntary registration means choosing to register before you're legally required - taking control of timing and terms rather than being forced into it.Five Key Benefits of Voluntary RegistrationCash Injection from Pre-Registration Claims: Reclaim VAT on purchases made before registration. For goods/assets you still own, claim back up to four years. For services like accounting fees or website development, claim back six months prior. Keep proper VAT invoices as evidence.Improved Cash Flow: Reclaim VAT on laptops, software, and stock inventory. Over 30+ years, this has helped clients reclaim hundreds or thousands of pounds, making a real difference to cash flow.Professional Credibility: VAT registration signals you're serious and professional. Large clients may prefer working with VAT-registered suppliers, helping you land bigger contracts.Avoid Future Penalties: If you're growing, hitting £90K is often inevitable. Voluntary registration prevents missed deadlines, fines, penalties, and interest charges.Better Systems: Forces proper accounting and bookkeeping from day one, providing valuable business data for better decision-making.The Downsides to ConsiderPricing Impact: Adding 20% VAT may make you less competitive with consumers or non-VAT registered businesses. Options include absorbing costs, slight price increases, or targeting VAT-registered clients.Admin Burden: Making Tax Digital (April 2026) requires digital records, quarterly returns, and approved software. Proper cloud accounting setup makes this manageable."Intending Trader" RegistrationYou can register before making your first sale as an "intending trader," allowing VAT claims on startup costs before any revenue comes in.Who Should Consider ItAsk yourself: Planning fast growth? Buying from VAT-registered suppliers? Selling to VAT-registered businesses? Can you manage the admin? Yes to two or more questions means seriously consider it.The NumbersExample: £20,000 annual VAT-related purchases = £4,000 reclaimable VAT. If clients are VAT-registered, that £4K goes straight back to you. B2B businesses typically make more profit when VAT-registered.Links Mentioned in This EpisodeMaking Tax Digital podcast episodeMTD and Incorporation: Is It Time to Go Limited?a...

Are you a PAYE employee spending your own money to do your job without getting reimbursed? You could be missing out on money that's legally yours through tax relief claims. This episode of the I Hate Numbers podcast breaks down everything you need to know about claiming work expenses online using HMRC's updated system. We explore what qualifies for tax relief, walk through the new online claiming process, and provide essential evidence requirements to ensure your claims succeed. From travel expenses and professional subscriptions to working from home costs, we cover the most common claimable expenses with real-world examples. Whether you're new to expense claims or looking to catch up on backdated claims, this episode gives you the practical knowledge to recover money you're entitled to. If you're an employee who pays for work-related expenses out of your own pocket, this episode will help you understand your rights and navigate HMRC's requirements with confidence. Main Topics & Discussion Understanding Tax Relief on Work Expenses Tax relief is available for PAYE employees who pay for work-related expenses from their own pocket without reimbursement. The key criterion is that expenses must be "wholly, exclusively, and necessarily incurred in the course of your job." This excludes personal items like lunch or your normal daily commute, but covers expenses directly connected to your work duties. What You Can Claim - The Essential Checklist Travel and Mileage: You can claim for travel outside your usual commute, including meetings, site visits, or temporary work locations. When using your own car, claim mileage at statutory rates (45p per mile for first 10,000 miles, then 25p thereafter). Public transport ticket costs are also claimable, but remember - your normal commute to the office doesn't count. Professional Fees and Subscriptions: Payments to trade bodies, professional groups, or governing bodies that are work-related and appear on HMRC's approved list qualify for relief. This includes trade unions, professional networks, and industry-specific memberships. Working from Home Costs: When your employer requires you to work from home (not by choice), you can claim a proportion of household costs including heating, lighting, and broadband. The key is proving it's a job requirement, not just convenience. Tools, Uniforms, and Equipment: Specialist gear, work clothing, and tools that your employer hasn't provided may qualify. HMRC offers flat-rate claims for uniform maintenance and toolkits for approved occupations. The New Online Claiming Process HMRC's online service for expense claims has been updated and relaunched. If your total claim is £2,500 or less in a single tax year and you're not required to complete a self-assessment tax return, you can claim online at gov.uk/tax-relief-for-employees/travel-and-overnight-expenses. For claims over £2,500 or if you already complete self-assessment, use your tax return instead. Essential Evidence Requirements p...