Cottons Library

“A goal without a plan is just a wish.” ― Antoine de Saint-Exupéry Choosing to start up a new business is both an exciting and challenging endeavour. It may come as no surprise that a large number of start-up businesses fail due to poor planning.

As a business owner, managing chaos could be one of your daily duties. For every business which relies on a website or app, though, this enters a new realm amidst the realisation that your website or app is down.

At Cottons, we have noticed an increase in clients receiving cold calls, automated messages or voicemails from scammers impersonating HMRC. Clients are told that they are under investigation for non-payment of taxes and that they are to call a number to discuss this matter further. On calling this number they are then instructed to pass […]

It has been a busy 2018 for the team at Cottons. Over the past 12 months, we’ve been busy keeping you up-to-date on the latest changes in legislation, how we can help you save even more money, our offices celebrating anniversaries and even the appointment of a new Partner.

On Thursday 29th November, our accountants in London joined forces with the London Metropolitan University Accelerator programme to talk about how start-ups can get things right when they’re setting up their businesses. Starting Up Right At Cottons we understand that start-ups can often spend many hours deliberating over their concepts, visions and values but give […]

We all like to receive gifts but are you aware that there are also tax breaks when giving gifts too!

With over a week passing since the budget and its finance bill now published the dust is starting to settle on The Chancellor’s latest announcements. In reflecting on these there is one group of individuals which could have more reason than others to feel more than hard done by, landlords.

Famously, the retail sector is burdened with more administrative duties than many others. From the recording of transactions to managing inventories, when it comes to retail there’s a lot of data to be recorded

The team from Cottons braced the cold winds, ice cold water and copious amounts of mud to take part in this year's Winter Wolf Run at Stanford Hall. Facing the challenge There are four Wolf Runs throughout the year, each being a 10k run with a set of obstacles designed to challenge even the fittest […]

Chancellor Philip Hammond presented his second Autumn Budget on Monday 29 October 2018. In his speech, he stated that ‘austerity is coming to an end – but discipline will remain’. He also promised a ‘double deal dividend’ if the Brexit negotiations are successful but stated that there may be a full-scale Spring Budget in 2019 […]

Cottons are delighted to announce that we are the latest accountancy firm to gain inclusion on Handpicked Accountants, an exclusive network of the very best accountants in the UK. Launched in 2017 by the professional services company Begbies Traynor, Handpicked Accountants aims to connect individuals and small business owners with trusted local accountants. At Cottons, […]

In 2017 Amazon almost halved its declared UK corporation tax bill. It went from £7.4m in 2016 to £4.5m and understandably left many SMEs frustrated, particularly those in the retail sector. At Cottons, we can’t quite influence the fairness of the tax system but we are able to help an independent retailer keep their tax […]

Despite all our best efforts, criminals are targeting SMEs with increasingly clever email scams. Businesses need to be incredibly cautious when making payments to suppliers and to be especially aware if they receive new bank details to pay to. We have recently been contacted by several businesses who have fallen foul of an email invoice […]

We are delighted to announce that we have helped one of our clients secure a £250,000 tax refund using the Research and Development(R&D) Tax Relief scheme.

Since our article at the end of last year, HMRC have extended the deadline before the childcare voucher scheme is closed to new entrants. Rather than the scheme closing at the end of March 2018, HMRC extended this to 30 September 2018. Hence the good news is that although becoming tight there is still just […]

One of the benefits from the Research and Development (R&D) tax relief is that it provides support not only for profitable companies but also those companies who may also be struggling to make ends meet.

As many businesses have discovered, growth not only takes a strong vision but also a clear business strategy. The difficulty in building this strategy occurs in navigating an ever-changing financial environment.

Small business owners are often required to wear many hats, overseeing a range of tasks from project management to customer service and everything in between. The multitude of responsibilities for those at the helm of SMEs can be time-consuming and often overwhelming.

VAT: Flat Rate vs Standard Rate Schemes Value Added Tax is a sum of tax paid against the value of an item. The VAT figure is added to the cost of most commercial transactions and it’s become so familiar that it often gets overlooked.

Making Tax Digital (MTD) is a government initiative to revolutionise the tax system in the UK and bring it crashing into the 21st century.

With many of us in holiday mode throughout July, you could be forgiven for thinking that things may be slightly calmer at Cottons but, it’s the precise opposite.

Our accountants in London have gained a reputation for the go to when it comes to accounting for Estate Agents in the city. Here’s why…

Between fines and catch up bills, if you haven’t enrolled your staff yet but should have then you need to get moving. Here’s what you need to know.

Since its beginnings as a small accountancy firm in based in Daventry, Cottons Chartered Accountants has grown and now supports hundreds of businesses across the Midlands and the South with 4 branches and over 70 staff.

When it comes to selecting an accountancy firm, businesses can feel a little overwhelmed by the range of choice presented on the local market. It is easy to be intimidated by approaching a larger accounting firm.

Did you know that soon, PILONs could be a thing of the past? No, not Pylons as for now we’ll still need those for carrying our electricity. What we mean here are PILONs, aka Payments in Lieu of Notice or, the amount of money some employees are given in exchange for not working their notice […]

On Sunday 1st July 2018, Cottons Chartered Accountants were proud to sponsor Daventry’s Cycle Sportive, an event designed to get the entire community out on their bikes at the same time as supporting Cancer Research UK and the MacMillan Cancer Trust.

It’s been a busy month here at Cottons, We’re moving forward with our app, Making Tax Digital initiatives, local partnerships & events and staff development. What’s more, we are adding new members to our team as our firm continues to grow.

Our property tax experts have put together this definitive list of all recent changes to property taxes and given advice on how to manage them.

On Tuesday 5th June, Will Smart, a Partner from our Northampton branch, attended the first Leamington Landlord and Investor event put on by Newman Property Experts.

Why business owners need to face up to the challenge of Mobile and Smartphone growth

Our accountants have been in London for one year now, here’s the story of the latest office in the Cottons Chartered Accountants network.

It is with great pride that today we can reveal that Emma Reid, former senior accountant at our Rugby branch, has accepted a promotion to become a Partner at our firm.

In Britain, where we are often subjected to four seasons in one day, we could all be forgiven for wanting to see the back of clouds for good. However, there’s a new cloud on the scene and it’s one that business owners need to embrace…

“Open banking” is a new directive which was introduced in the UK in January. It  has the potential to fundamentally change the way companies manage their finances, access capital and make strategic decisions.

Do you claim for business mileage – and spend hours Googling the places you’ve visited to work out the miles you’ve covered?

Never lose a receipt again; use the free receipt management App from proactive Cottons Accountants 

We have launched a powerful new app to save you time and money. Here’s everything you need to know.

Our Rugby office is 10 years old this month and we couldn’t be prouder of what has been  achieved in that time.

The Annual Tax on Enveloped Dwellings, ATED for short is one of the newest taxes having been introduced in 2013 and applies where companies hold residential property within a limited company or limited partnership.

On April 6th the amount small businesses have to contribute to their employee’s pensions is increasing.

A comprehensive summary of the Spring Statement 2018.

The Chancellor Philip Hammond presented his first Spring Statement on Tuesday 13 March 2018.  In his speech he provided an update on the economy and responded to the Office for Budget Responsibility forecasts. In addition he launched consultations on various aspects of the tax system.

2018’s Spring Statement is expected to be very different. Here are the reasons behind the changes and our predictions.

No matter the size of your business, you will need to comply and be aware of the new regulations set out under GDPR. Here are 5 steps to ensure your small business is compliant.

It’s widely known and well documented that the UK and Europe are preparing for the largest data protection overhaul in decades: GDPR. What’s less apparent however, is exactly what small businesses need to do. What changes do they need to make to which parts of their systems and processes? And where do they go for […]

The General Data Protection Regulation (GDPR) is a new regulation which will take effect from 25th May 2018. It is being introduced to strengthen data privacy for individuals across the EU.

Budgets and forecasts are the business equivalent of Satnavs. If you don’t know what to aim for and what your goals are it will be impossible to reach your end destination.

It is common for ambitious businesses to require capital or debt financing in order to help them grow their top line revenues prior to them becoming profitable. Since the financial crisis, it has become even harder for SME businesses to access debt finance and growth capital. However, over the last decade, a plethora of different […]

In 2017 we assisted a client in achieving an important round of funding in record time! We’re now pleased to update that the management buyout we helped to shape is in the final stages of the payment plan with the seller.

Cottons Chartered Accountants are proud members of VPG (VAT Practitioners Group), a national organisation of people who specialise in VAT.

Cottons Chartered Accountants are proud members of VPG (VAT Practitioners Group), a national organisation of people who specialise in VAT.

Here at Cottons Chartered Accountants, we understand what it is like to be a small business.

The VAT Implications of food are not straightforward to say the least. Whilst the food and hospitality industries are like all other businesses in that they must become VAT registered once their annual turnover reaches £85,000, the specifics of whether food sales are VATable and at what rate can be a minefield.

The new calendar year is a great time to take stock of your finances. Reviewing your finances in January and February provides sufficient time before the end of the tax year, at the beginning of April, in order to make sure that you are fully utilising all of the tax reliefs which are available to […]

Reviewing your finances throughout the year provides sufficient time before the end of the tax year, at the beginning of April, in order to make sure that you are fully utilising all of the tax reliefs which are available to you.

Many small business owners work in the present, a space which is fast-moving and always evolving.

2017 has been an extremely exciting year for Cottons Chartered Accountants. We’ve seen extensive growth with new offices and staff, continued client success and even a brand-new website.

As always, it’s been a busy month here at Cottons! We’ve been training our employees, raising money for charity and as it’s December there’s been a lot of festive fun!

There have been recent changes to the requirements of any charity account reports signed on or after the 1st December, therefore some charity accounting obligations have been affected.

Whilst costs relating to entertaining staff and clients are a common cost of doing business, and are perfectly valid to include within your profit and loss account, only certain associated expenditure will be allowed to be deductible for corporation tax and VAT purposes.

You may already be aware of the recent first-tier tribunal case involving Brabners LLP, in which the firm lost their appeal against an assessment from HMRC for Output VAT not collected on recharged local authority search fees.

It’s been another busy month here at Cottons! The company is buzzing with new vacancies, new technologies and new clients. Here’s what’s been going on in detail…

If you pay for registered childcare, then you might be already using or be eligible to apply for childcare vouchers, but the world of tax-free childcare is undergoing its most significant change since they were first introduced into the tax system back in 1989.

Directors can pay themselves from their limited companies either in the form of dividends or salary but following changes in 2016/17 to the treatment of dividends, they now need to give a bit more upfront consideration and attention to which they pick so that they are able to remunerate themselves within the most tax efficient […]

After much speculation around what will be announced the Chancellor delivered his Autumn Budget to Parliament on 22nd November 2017. Here is an overview of the key announcements.

Sometimes it feels like high street banks don’t care too much about small businesses, consultants or freelancers. However, here at Cottons we do! And we’re always on the hunt to helpful solutions that will help our clients manage their money in a simple, more efficient way.

We’re proud to welcome back Will Smart! Will is returning to Cottons as a partner and will be based at the Northampton branch.

Under the Pensions Act 2008, every employer in the UK must put certain staff into a pension scheme and contribute towards it; this is called ‘automatic enrolment’, or more commonly, ‘auto-enrolment’. If you employ at least one person, then you are an employer and you have certain legal duties in line with this legislation.

On a chilly November morning ten of our bravest (or craziest…) employees took on the elements as they tackled the Winter Wolf Run; one of the toughest obstacle course races Britain has to offer.

Self Assessment – New Payment Deadlines HMRC recently announced new payment deadlines for anyone paying their Self Assessment tax liability.

The final quarter of the calendar is packed with events and increased demands which subsequently cause many employers to require seasonal staff in addition to their usual workforce. Seasonal workers are often employed on a short-term basis tasked with fulfilling their duties in a small window of time, this means that the way they are paid […]

It’s been an exciting month here at Cottons with everything from one of our staff achieving the highest global Corporate Finance and Advice exam score, to our new London branch embracing local currency. Here’s what’s been going on in detail…

Recent findings indicate that 46% of UK small businesses are not knowledgeable about tax relief that is available from the Government.

HM Revenue & Customs recently disclosed that they have won 22 of 26 tax avoidance cases taken to court between 2016 and 2017.

In the wake of the credit crunch bank lending to businesses became almost more of a holy grail than an everyday option, however, nearly a decade on from the crash, as the economy continues to stabilise, banks are becoming more open again.

When considering the characteristics of a good accountant, adjectives such as rational and logical often crop up but it takes a lot more than patience and numerical skills to make an exceptional number cruncher.

There are currently three different rates of value added tax which apply to most commercial enterprises; standard, reduced and zero.

Value Added Tax, aka VAT, is excised on the sale of most goods and services. VAT, most commonly charged at 20%, is added to the cost of goods or services.

On July 20th our very own Lisa Malone set off on a gruelling cycle that would take her from Daventry to Paris. Cycling as part of the Daventry Cycle Club Lisa raised over £1,000 for Cancer Research. The Ride Cycling with another 38 members, Lisa describes how they rode through ‘hills, potholes and French traffic’ to reach their […]

After moving to Chestnut Field House in 2013, Cottons Chartered Accountants in Rugby have now acquired ownership of the property following a six-figure funding deal with Royal Bank of Scotland. The move further cements the well-established branch’s presence in the area ensuring it’s prepared for more growth in the future still. Business Development If you have been keeping […]

For most businesses, there will come a time when an injection of funds is required, but in such a fast-paced, metamorphic business landscape, it’s no surprise that the financial world favours immediacy. So how can a business get the finance it needs? What are the options? And how can it get organised to ensure it […]

Sourcing funding can be difficult when you are trying to run a business simultaneously. Further to their time-consuming nature, funding procedures have been made more troublesome still by economic austerity which has made funding for businesses, and start-ups in particular, harder to obtain. However, a well thought out business, with the right personnel in the […]

In February 2009 doctors didn’t think James Golding would make it through the night. 8 years on, in June 2017, James, broke the world record for most miles cycled in 7 days: that’s the equivalent of London to Paris every day if you didn’t know. Here’s the truly inspiring story of James, a man we […]

The advent of digital media has brought challenges and opportunity in equal measure. As we continue to make technological advancements, the way we conduct business must develop accordingly. The Office for National Statistics reported that 83% of British businesses had internet access and an online presence. However, it appears that HM Revenue & Customs has left […]

In their most recent bulletin, the Office for National Statistics reported a 15% increase in self-employment since April 2017. This brings the total figure of self-employed Britons to a substantial 4.8 million, and in austere times this freelance workforce has been the mainspring of British economic growth. Some experts attribute this dramatic hike in self-employment to the […]

Not only have Cottons Chartered Accountants launched a new Tax and Accounting Drop In Surgery, we are now also running regular and informative sessions on hot topics for businesses of all sizes. On Wednesday 12th of July we launched the first in this series at a co-working space near our London office, gathering small business owners and freelancers to […]

At Cottons Chartered Accountants we have the solution for businesses who are a bit under the weather. We have launched a drop-in surgery for business troubles and we’re taking it on the road. We have teams of tax advisors and accountants in London, Northampton, Daventry, and Rugby and our new tax and accounting drop-in surgery will be coming to […]

Cottons Chartered Accountants are proud to announce that in 2017 we have assisted a client in achieving an important round of funding in record time. Our client, a household name in the manufacturing industry with a turnover over £1.5m, came to us for advice as the company began to go through a change in ownership. Business […]

4 in 5 businesses that could be claiming R&D Tax Credits are not. This could be attributed to a lack of understanding among the small business community of which businesses are actually eligible for the relief. Contrary to popular belief the HMRC Research and Development Tax Credit scheme, one of the most lucrative tax relief systems […]

Hot on the heels of our move to a new, larger home in Northampton, Cottons Chartered Accountants are pleased to announce, we have further expanded to London. In a move which sees the introduction of new Associate Partner, Oliver Warne ACA, the brand will now be focusing on growing a presence in The Capital, extending our tax, accounting and audit […]

The way businesses operate in the digital age is changing. Companies are offering workers fluid options like remote working and flexi-time and, in this fast changing economy, businesses who have recognised this already are proving most ductile as the millennial workforce become core. As an extension of this workers are furthermore opting to offer their […]

Over the last couple of years, the amount of tax free dividends available to small business owners and freelancers with Ltd Companies has reduced significantly. The reduction, which has seen the amount of dividends which can be extracted from a company without tax free go from £30k to just £2k (starting April 2018), has left some business owners […]

After starting out in Daventry, Cottons Chartered Accountants moved to Northampton in 1991. The Northampton branch is now our brand flagship with three out of seven of our partners and more than twenty staff working there. Unsurprisingly our growth in the area has meant that we have had to move premises over the years and last month saw […]

Incorporating a Limited Company and operating the new legal entity can bring with it many advantages, however, there are compliance obligations that you must be aware of to ensure you that your business is organised and stays on the right side of HMRC and Companies House. New companies who are not compliant run a risk of being fined by […]

Once you have decided a Limited Company is the way forward for your business you need to incorporate the new entity at Companies House. Naming Your Company Your business will need a name. Ideally this will be the same as that you trade under but does not have to be. Be careful not to trade […]

Every individual in the UK who is eligible to receive a salary can earn a certain amount of money before they start paying tax. This is called the Personal Allowance, eligibility is normally subject to an individual having a National Insurance Number. The Basics Whether your income is from employment, self-employment or property you will […]