I Hate Numbers: Simplifying Tax and Accounting

We all have habits in business. Some help us move forward, while others quietly hold us back. In this episode of the I Hate Numbers podcast, we explore four common bad business habits and, more importantly, what we can do to break them. These habits may feel helpful in the short term, especially when cash is tight or pressure is high. However, over time they can damage profitability, confidence, and long-term growth. Bad Habit One: The Pricing Trap Underpricing is one of the most common traps business owners fall into, particularly in the early stages. Discounting heavily or working for less than your value often leads to burnout and poor cashflow. Sustainable businesses price for value, not fear. Getting pricing right allows us to grow, reinvest, and serve clients properly. Bad Habit Two: Doing Everything Yourself Trying to do everything alone may feel sensible at first, but it quickly becomes a growth blocker. Time spent on low-value tasks is time taken away from strategy, sales, and leadership. Delegation is not a loss of control. It is a deliberate decision to focus on what matters most in the business. Bad Habit Three: Always Choosing the Cheapest Option Choosing based purely on price rather than value often leads to poor outcomes. Cheap solutions can result in wasted time, repeated work, and missed opportunities. The right support, systems, and advice pay for themselves over time. Bad Habit Four: Avoiding Financial Advice Avoiding professional advice is a habit that quietly costs businesses money. Tax efficiency, cashflow planning, and structure are areas where expert guidance makes a real difference. Good advice is not an expense. It is an investment in clarity, confidence, and long-term success. Key Takeaways Breaking bad habits starts with awareness. Small changes around pricing, delegation, decision-making, and financial support can significantly improve profitability and peace of mind. Listen & Take the Next Step 🎧 Listen to the I Hate Numbers podcast for more practical business and tax insights. 📺 Watch our videos on the I Hate Numbers YouTube channel. 📘 Learn more with our book, I Hate Numbers, packed with practical advice on business, finance, and tax. 📞 If you want personalised support, book a call with us and let’s see how we can help. Until next time, plan it, do it, and profit.

Procrastination gets a bad reputation. However, in this episode of the I Hate Numbers podcast, we take a different view. We explore why procrastination happens, when it holds us back, and how it can sometimes support better thinking, creativity, and decision-making. Rethinking Procrastination We have all delayed important tasks, even when we know better. Procrastination is usually framed as a weakness or a lack of discipline. However, we challenge that assumption. Instead of guilt, we look at understanding what procrastination is really telling us and how it can sometimes work in our favour. What Procrastination Really Is Procrastination is not laziness. It is a self-regulation issue where we delay action despite knowing there may be consequences. For many creative business owners, it shows up as distraction, avoidance, or over-preparing instead of starting. We explain how procrastination often reflects emotional responses rather than poor work ethic. Once we recognise that, it becomes easier to manage rather than fight it. Why We Procrastinate Procrastination usually has clear causes. Fear of failure can make starting feel overwhelming. Perfectionism can stop progress before it begins. Feeling overloaded with ideas or lacking motivation can also keep us stuck. By identifying which of these applies, we gain control. Awareness is the first step towards changing behaviour. When Procrastination Can Be Useful Not all delay is bad. Sometimes stepping away allows our subconscious to process information. This can lead to better decisions and stronger ideas when we return to the task. Procrastination can also act as a filter. If we keep avoiding something, it may be a signal that the task is not as urgent or important as we think. How We Manage Unhelpful Procrastination When procrastination becomes a barrier, simple strategies help. Breaking work into small steps reduces overwhelm. Starting with just five minutes often builds momentum. Time-blocking work and rest helps maintain focus. Reducing distractions is equally important. Fewer interruptions make it easier to move from intention to action. Keeping Finances from Becoming a Distraction When financial admin adds stress, it fuels procrastination. Using the right tools can remove friction and free up mental space, allowing us to focus on creative and strategic work rather than avoiding it. Key Takeaways Procrastination is not always the enemy. Used wisely, it can support creativity and better decisions. The key is understanding why we delay and responding with practical strategies rather than guilt. Next time procrastination shows up, we encourage you to pause and ask whether it is avoidance or incubation. The answer can change how you move forward. Listen & Take the Next Step If this episode resonated, explore more...

Attitude plays a critical role in the outcomes we achieve in life and in business. In this episode of the I Hate Numbers podcast, we explore how mindset, beliefs, and internal narrative influence decision-making, confidence, and long-term success. A strong mindset shapes behaviour, improves resilience, and supports better business performance. What This Episode Covers In this episode, we look at how our thoughts and internal dialogue drive what we do. We discuss why improving business results is not only about numbers or strategy, but also about how we think about ourselves and our business journey. Fixed Mindset vs Growth Mindset We explain two major mindset groups—those who believe their ability is fixed, and those who believe ability can develop through effort, coaching, and learning. One mindset restricts progress, and the other encourages improvement, possibility, and stronger results. Why Attitude Shapes Behaviour Attitude drives behaviour. If we believe a task is achievable, we are more likely to push through challenges. If we believe failure defines us, we retreat. We discuss how attitude influences motivation, problem-solving, and decision-making in everyday business operations. Business Confidence and Belief Having confidence in your skills improves communication, price-setting, delegation, and leadership. A negative attitude affects growth, sales, and customer interaction. This episode shows how reframing beliefs can boost performance and reduce anxiety. Emotions and Decision-Making We highlight how emotional states affect business management. Stress and uncertainty can lead to poor decisions or inactivity. Awareness helps build control and better outcomes. Seeing Obstacles as Growth Business comes with setbacks. Mindset determines whether setbacks become learning opportunities or stopping points. A growth attitude promotes resilience and long-term success. Episode Timecodes Final Thoughts Your attitude is a key business asset. Changing mindset changes outcomes. Building belief, developing confidence, and working on internal dialogue will strengthen business results and improve resilience. We encourage business owners to reflect honestly on their own thinking habits and challenge limiting beliefs. Listen & Subscribe Stay in control of your business journey and support your mindset growth. Listen weekly on Apple Podcasts and share this episode with someone who needs it. Listen & Subscribe on Apple Podcasts Book a Call If you want guidance, business planning support, or mindset improvement strategies, book a call with us. Book a Call Additional Links I Hate Numbers YouTube ChannelBuy the I Hate Numbers BookPodcast Website

Why Getting Paid on Time Matters Late payments don’t just cause frustration — they damage your cashflow, restrict growth, and can force unnecessary borrowing. By tightening up your payment processes, you protect your business and create healthier financial habits. Clear Terms Make a Big Difference Before any work begins, agree on: This sets expectations early and reduces misunderstandings later on. Use Digital Tools to Speed Up Payments Digital systems make invoicing smoother and faster. We recommend using modern accounting software such as Xero. It helps you: Be Clear, Be Direct, Be Consistent Customers respond better when communication is firm, polite, and regular. Keep to your procedures — don’t let overdue invoices linger. Before the Due Date On the Due Date After Payment Becomes Late How to Reduce Future Problems Here are steps that help prevent late payments altogether: Final Thoughts Getting paid on time is not about chasing — it’s about setting the right procedures. With clear communication, good systems, and strong boundaries, you protect your cashflow and strengthen your business. Useful Links Xero Implementation & SupportBook a Call with I Hate NumbersI Hate Numbers YouTube Channel Be sure to follow and subscribe to the I Hate Numbers podcast for weekly episodes that help you plan it, do it, and profit.

Money can strengthen a relationship or strain it, depending on how we handle it. In this episode of the I Hate Numbers podcast, we explore why couples often struggle when talking about money and what we can do to reduce stress, improve communication, and build financial trust together. Why Money Creates Tension in Relationships Money is deeply emotional. It connects to safety, identity, habits, fear and upbringing. When two people come together, they often bring different money stories, expectations and comfort levels about spending, saving and risk. Without awareness and open conversation, these differences can easily lead to misunderstandings and conflict. We often see couples avoiding money discussions because they worry about judgment or triggering an argument. But silence usually makes things worse. The longer things remain unspoken, the bigger the financial and emotional gap becomes. The Impact of Upbringing and Money Mindsets The way we think about money is shaped long before adulthood. Childhood experiences, parental attitudes and cultural influences form the habits we carry into relationships. Some people grow up with scarcity thinking, others with confidence, and some with avoidance behaviours. Understanding where our partner’s mindset comes from is a powerful way to reduce conflict. We stop assuming and start empathising. Talking About Money Without Triggering Conflict Healthy relationships rely on open and honest communication. This includes choosing the right time to talk about money and keeping discussions neutral and forward-looking. Instead of focusing on past mistakes, we focus on shared goals and what matters to both partners. Asking questions such as “What does financial security look like to you?” reveals expectations and gives couples a stronger foundation to work from. How to Build a Shared Money Plan Financial teamwork starts with shared goals. These could include buying a home, reducing debt, improving financial stability or planning major life events. Once goals are clear, couples can decide on practical steps such as budgeting, tracking expenses or setting spending boundaries. Transparency is key. Both partners should understand the full financial picture. Whether you use joint accounts, separate accounts or a hybrid approach, clarity and agreement are what matter. Financial Independence Within a Relationship It’s important for each partner to maintain some personal financial independence. This avoids the feeling of being monitored or restricted. A balance of shared and individual responsibility supports both autonomy and teamwork. When to Seek Professional Help If money arguments recur or feel overwhelming, involving a neutral professional can be transformative. A financial coach or advisor provides structure, clarity and a roadmap, removing the emotional heat from the conversation and helping both partners align. Final Thoughts Money does not need to divide couples. When we understand each other’s habits, communicate openly and align around shared goals, money becomes a tool for connection instead of conflict. Strong financial teamwork leads to stronger relationships. Links Mentioned in This Episode Book a CallWatch on YouTubeI Hate Numbers Podcast

Identity verification is the legal process of confirming that a person or organisation is who they say they are. It helps prevent fraud, tax evasion, money laundering, terrorist financing, and abuse of financial systems. Businesses must prove that clients are legitimate before providing services — especially when risk is higher. When Identity Checks Are Required These checks are not optional. Failure to verify identity can lead to penalties, account freezes, investigations, reputational damage, and criminal consequences. Acceptable Proof of ID & Address Proof isn't just a name written in an email — it must be documented. Typical verification includes: In some cases, enhanced checks (E-KYC) are required — such as source of funds, ownership structure, or AML screening. Risk-Based Assessment Matters Not all clients have the same level of risk. Businesses should apply stronger verification when: Good record-keeping protects you. Compliance is not just a legal obligation — it's a financial safeguard. Record Keeping Requirements Keep ID documents securely for a minimum of five years. Store clean digital audit trails in accounting systems, encrypted drives, or secure cloud platforms. Never hold data informally in WhatsApp chats or desktop folders. Consequences of Getting It Wrong If identity verification fails or is ignored, businesses risk: Preventing risk is cheaper than fixing mistakes later. Episode Timecodes 00:00:0000:01:3200:03:1800:05:0200:06:4400:09:11 🎧 Listen & Subscribe Stay in control of compliance and finance — follow the podcast and never miss an update. Listen on Apple Podcasts 🔗 Additional Links Book a CallYouTube ChannelI Hate Numbers Book

E-invoicing is not just a digital nicety, it is becoming central to how modern businesses keep cash flowing and stay compliant. In this episode of I Hate Numbers, we explain what e-invoicing means, why larger customers and public sector buyers increasingly expect it, and how adopting it can reduce errors, speed up payments, and simplify bookkeeping. Why E-Invoicing Matters E-invoices remove manual rekeying, eliminate lost PDFs, and cut the back and forth that delays payment. They improve accuracy and create a clear, auditable trail that makes life easier at tax time. For businesses supplying VAT-registered customers, being able to send structured data rather than free-form PDFs means customers can process invoices automatically, improving your chance of being paid faster. Practical Benefits We cover the practical benefits: faster approvals from customers, fewer disputes about amounts or dates, smoother integration with cloud accounting systems, and a stronger position when bidding for larger contracts. E-invoicing also reduces duplicate payments and speeds up reconciliations, which helps your cash flow and frees your team from low-value admin tasks. Standards and Compliance There are different e-invoicing standards around the world, and larger buyers are increasingly requiring structured invoices. Check the requirements of your major customers and public sector buyers before you select a provider. Understanding the required data fields and VAT treatments will prevent problems later. How to Get Started Start by choosing a provider or using the e-invoicing options inside your cloud accounting package. Map the invoice data fields, run tests, and communicate the change to customers. We recommend a short pilot, perhaps with a handful of customers, to iron out any issues before rolling out the change company-wide. Make sure staff are trained and that you keep backups of your invoices and settings. Common Pitfalls to Avoid Partial adoption can cause confusion, so decide early how you will handle customers who cannot accept structured invoices. Ensure your internal processes match the structured data fields, and confirm how your software handles varying currencies, VAT rates, and line-item details. Always test end-to-end before switching fully to avoid missed payments and data mismatches. Final Thoughts E-invoicing is a practical win for any business that wants to reduce admin, speed up payments, and improve auditability. If you are still sending manual invoices, now is the time to plan the move. Small steps, a short pilot and clear communication with customers will make the switch painless and worthwhile. Episode Timecodes [00:00:00] – Introduction [00:01:10] – What e-invoicing is and why it matters [00:03:05] – Benefits: accuracy, speed, and cashflow [00:05:00] – Standards and compliance considerations [00:06:40] – How to get started, step by step [00:08:20] – Common pitfalls to avoid [00:09:30] – Final thoughts and next steps Host & Show Info Host Name: Mahmood Reza About the Host: We are the team behind I Hate Numbers. As accountants and business coaches, we help organisations simplify finance, improve cash flow, and adopt efficient systems. Podcast Website:https://www.ihatenumbers.co.uk/i-hate-numbers-podcast/🎧 Listen & Subscribe Find more episodes on Apple Podcasts, and subscribe for...

In this episode of the I Hate Numbers podcast, we explore a tax trap that affects countless landlords and property investors. Preparing a property before tenants move in brings real costs, but HMRC applies strict rules on what you can and cannot claim. We explain those rules in plain English, highlight common mistakes, and show how to protect your cash flow and stay compliant. When Your Property Business Really Starts Your property business officially begins on the day your first tenant moves in and rent starts. That date matters because any spending before then is treated as pre-commencement expenditure. HMRC will only allow these costs if they meet three criteria: If all three conditions are met, the expense is treated as if it occurred on day one of the rental business. Understanding Revenue vs Capital This is the core of the tax decision. Revenue expenses repair or maintain the property without improving it. Examples include: Capital expenses improve or upgrade the property. These include: Revenue costs reduce your rental profits now. Capital costs only reduce capital gains tax in the future. Examples That Show the Difference If you treat dry rot or replace rotten timbers, HMRC sees it as a repair. If you convert a loft or add an extra bathroom, that improves the property’s overall value and is treated as capital. Understanding the difference prevents costly mistakes when completing your tax return. Why Record Keeping Matters HMRC expects clear records: invoices, breakdowns, and evidence of work carried out. Mixed invoices are a common issue. If repairs and improvements are bundled into one amount, HMRC may block the full claim. Ask contractors for itemised invoices, and take before-and-after photos to strengthen your position. Avoiding Common Mistakes Landlords often run into trouble for reasons such as: If you have multiple rental properties, allowable repair costs from one property can still reduce overall rental profits across your portfolio. Episode Timecodes [00:00:00] Introduction [00:00:42] Understanding pre-letting costs [00:01:27] When a property business starts [00:02:00] The three tests for pre-commencement expenses [00:03:00] Revenue vs capital explained [00:04:12] Examples from real situations [00:05:00] What you can and cannot deduct [00:06:09] Record keeping and documentation [00:07:12] Mixed invoices and challenges [00:07:57] Accounting basis considerations [00:08:36] Impact on portfolios and holiday lets [00:09:18] Summary and next steps Final Thoughts Understanding pre-let expenditure rules helps you avoid HMRC issues and protects your cash flow. The clearer your records and the more accurate your classifications, the smoother your tax return becomes. If you want personalised support reviewing your property costs, we can help with a detailed tax diagnostic review. Additional Links Buy the I Hate Numbers Book

Introduction: Understanding Fuel Benefits Fuel benefits can look attractive on the surface—free fuel for your company car sounds great, right? However, the hidden tax costs can outweigh the perks. In this episode of the I Hate Numbers podcast, we break down how company car fuel benefits work, why they can become expensive tax traps, and how to decide whether it’s really worth it. Main Topics & Discussion The Myth of “Free” Fuel Many business owners assume that having their company cover private fuel costs is a tax-efficient perk. However, the reality is that HMRC applies a significant benefit-in-kind tax to fuel provided for personal use. This means both the company and the employee could face unexpected costs at the end of the year. How HMRC Calculates the Tax The tax on company car fuel is based on a set “fuel benefit charge.” This combines a fixed amount (currently £27,800 for the 2025/26 tax year) multiplied by the car’s CO₂ percentage band. For example, if your car’s rate is 25%, the taxable benefit is £6,950. This amount is added to your personal income for tax purposes—meaning you’ll pay tax as if you’d earned that money. Why It’s Rarely Worth It In most cases, the actual cost of fuel you receive is lower than the tax you’ll pay on it. Even though it seems like “free” fuel, you could easily lose hundreds or even thousands of pounds more in tax. The company also pays 15% Class 1A National Insurance on the taxable amount, adding to the total expense. A Simple Test: Is It Worth Keeping the Fuel Perk? Here’s an easy way to check. Calculate how much personal fuel your company covers annually and compare it to the fuel benefit tax charge. If the tax bill is higher, you’re better off reimbursing the company for personal mileage instead of accepting the “free” fuel benefit. Alternative Approaches That Save Tax There are smarter ways to handle fuel costs without falling into the tax trap. For example, you can: Record Keeping and Compliance HMRC requires accurate mileage logs to prove business use. Digital mileage apps or GPS-enabled records make this simple and protect you during potential audits. Keeping proper logs ensures you only pay tax on what’s necessary—and stay compliant without the admin stress. Key Takeaway Fuel perks often turn into expensive tax traps. The “free” fuel you get might actually cost you more than paying for it personally. With careful planning and the right approach, you can avoid unnecessary tax and keep your finances in better shape. Episode Timecodes Host & Show Info Host Name: Mahmood Reza About the Host: We’re accountants, educators, and financial coaches on a mission to make business and tax easier to understand. For over 30 years, I Hate Numbers has helped businesses plan smarter, save tax, and achieve long-term success. Podcast Website:

Owning a business can be rewarding, but it can also feel lonely. In this episode of the I Hate Numbers podcast, we open up about the challenges entrepreneurs face behind the scenes. We explore how isolation affects decision-making, motivation, and mental health—and how you can tackle it head-on with the right mindset and support network. Why Business Ownership Can Feel Lonely When you’re the one making all the decisions, carrying the risks, and keeping everything moving, the weight can feel heavy. Many business owners struggle to find people who truly understand their pressures. Employees, friends, and even family might not grasp the stakes involved. This emotional load often builds quietly until it starts affecting confidence and productivity. The Emotional Toll of Isolation Loneliness doesn’t always show up as sadness—it often looks like overworking, indecision, or self-doubt. We discuss how isolation can lead to burnout and how acknowledging it is the first step to overcoming it. Recognising these emotions allows you to regain perspective and avoid reacting from a place of fatigue or frustration. The Power of Connection and Community Connection is a vital part of business success. Building relationships with peers, mentors, and other business owners helps you gain insights, share ideas, and stay grounded. Joining professional networks or mastermind groups can reduce the emotional burden of entrepreneurship and remind you that you’re not alone on this journey. Practical Strategies to Overcome Loneliness Reframing the Entrepreneurial Journey Being a business owner doesn’t mean going it alone. Collaboration and communication are strengths, not weaknesses. We highlight stories of entrepreneurs who turned isolation into opportunity by embracing connection and building communities around shared goals. Final Thoughts The lonely road of business ownership doesn’t have to stay lonely. By recognising the signs of isolation and taking active steps to stay connected, you can build a more sustainable and fulfilling business journey. Remember—success isn’t only about numbers; it’s also about people, purpose, and wellbeing. Episode Timecodes Host & Show Info Host Name: Mahmood Reza About the Host: We’re accountants, finance educators, and business coaches at I Hate Numbers. With over 30 years of experience helping businesses grow sustainably, we’re on a mission to make finance simple, approachable, and empowering for every entrepreneur. Podcast Website: https://www.ihatenumbers.co.uk/i-hate-numbers-podcast/ 🎧 Listen & Subscribe to I Hate Numbers Don’t miss future episodes designed to simplify tax, business planning, and financial confidence. Listen on

Working for free might sound like a good way to gain exposure, experience, or opportunities. However, it can also lead to burnout, undervaluing your work, and setting the wrong expectations. In this episode, we talk about how to make the right call and ensure your time and skills are respected. When Working for Free Might Make Sense There are times when working for free can make strategic sense — such as for charities, community causes, or trusted partners. These opportunities can align with your values, offer meaningful exposure, or help you test new services. However, they should always be intentional and clearly defined. The Hidden Costs of Free Work Working for free often costs more than you think. Beyond lost income, it uses up valuable time, energy, and resources that could be invested in paid opportunities. It can also train clients to undervalue your services and expect unpaid support in the future. Setting Boundaries and Saying No We all want to help others, but saying yes to every unpaid request isn’t sustainable. Clear boundaries protect your time and reinforce your professional worth. Learn to differentiate between genuine collaborations and situations where your generosity is being taken for granted. Alternatives to Working for Free If you want to support someone or gain visibility, there are smarter ways to do it. You could offer a discounted rate, limit your contribution, or agree on an exchange of services. Always set terms in writing, even if no money changes hands, to ensure mutual respect and clarity. Final Thoughts Working for free can sometimes open doors, but it’s rarely the foundation of a successful business. Every hour you give away should have a purpose. Ask yourself what the long-term benefit is and whether it aligns with your goals. Ultimately, valuing your time is key to building credibility and financial stability. Episode Timecodes Host & Show Info Host Name: Mahmood Reza About the Host: We are accountants, business finance coaches, and the team behind I Hate Numbers. With decades of experience helping businesses stay profitable and confident, we simplify finance, tax, and planning so you can make smarter decisions and achieve long-term success. Podcast Website: https://www.ihatenumbers.co.uk/i-hate-numbers-podcast/ 🎧 Listen & Subscribe to I Hate Numbers Join us on Apple Podcasts for weekly episodes that help you master business finance and mindset. Listen, rate, and subscribe to support the show! 🎧 Listen on Apple Podcasts Additional Links Buy the I Hate Numbers BookVisit the I Hate Numbers YouTube ChannelBook a Call with Us

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 & Discussion What 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 Charities Charities 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 Oversight Every 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 CIC Registering 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 CICs CICs 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 Avoid Running 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 Thoughts Community 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

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 & Discussion What 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 Profit Social 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 Structures Social 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 Health Unlike 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 Face Social 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 Accountability Social 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 Enterprises Across 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 Final Thoughts Social 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 Essential First 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 Invoice There 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 Invoices In 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 Invoices Whether 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:Seeing challenges as opportunities:Balancing realism and optimism: Why Self-Belief Shapes Success Decision-making becomes faster and clearer:Resilience improves:Growth feels possible: Building Stronger Self-Belief Start small and act:Keep learning:Track your wins:Seek supportive voices: Common Mistakes to Avoid Final Thoughts Self-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 Host & Show Info Host Name: Mahmood Reza About the Host: Mahmood is an accountant, tax expert, and founder of I Hate Numbers. With over 30 years of experience, he helps businesses simplify numbers, strengthen strategy, and grow with confidence. Podcast Website: https://www.ihatenumbers.co.uk/i-hate-numbers-podcast/ 🎧 Listen & Subscribe to I Hate Numbers Ready to strengthen your mindset and build confidence in...

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: Timestamps Links Mentioned in This Episode I Hate NumbersI Hate Numbers website 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: Why HMRC Gets It Wrong: The Real Impact: How to Check: Steps to Fix: Common Mistakes to Avoid Assuming HMRC Is Always Right: Ignoring Your Records: Not Reclaiming Refunds: Final Thoughts Class 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

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 How Tax-Free Income Works If 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 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 HMRC If 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 Final Thoughts Renting 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 Call Episode Timecodes 🎧 Listen & Subscribe to I Hate Numbers Earn 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 Making Tax Digital Explained MTD 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 Comply If 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 Episode Here are some real-life examples mentioned in the episode to show how MTD rules apply in practice: Exemptions and Exceptions Not 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 Benefits of Preparing Early Early 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 Delay Leopold 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 is key. Key Takeaways Sole traders and landlords with turnover above the thresholds must prepare for MTD for Income Tax. Don’t wait for HMRC letters—take control early, choose the right software, maintain accurate records, and seek advice if needed. Early action keeps you compliant, confident, and stress-free.

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 Illegal Dividends Explained Under 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 Problems This 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 Company If 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 Directors Directors 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 Dividends HMRC 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 Key Takeaways Illegal 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 Call Episode Timecodes