The UK Tax and Accounting Podcast from I Hate Numbers:

Understanding the Role of National Insurance in Your UK State Pension is key to making informed decisions about your financial future. National Insurance is used to calculate your State Pension and affects how much you receive.

Getting the full State Pension means you must have paid or been credited with at least 10 years of National Insurance contributions. Furthermore, if you do not have the full 10 years, you may still be eligible for a reduced amount.

National Insurance is a tax that UK workers pay to contribute to the country's social security system. It is paid by employees through PAYE or paid directly if you are self-employed. The amount of National Insurance you pay is based on your earnings, and there are different rates depending on your income.

The State Pension is a payment that the UK government provides to people who have reached the age of retirement. Moreover, the amount of your State Pension depends on your National Insurance contributions. The more National Insurance you pay, the more you get in State Pension benefits. Worth noting that the current State Pension age is 66, but will increase to 68 by 2046.

Where there are gaps in your National Insurance record, you may be able to pay to fill them in. Do this by making voluntary National Insurance contributions. Given that, top up your National Insurance contributions to increase your State Pension benefits. Moreover, make voluntary contributions if you are employed, self-employed, or not working.

Get a State Pension forecast which will tell you how much State Pension you may get. Apply for a National Insurance statement from HM Revenue and Customs to check if your record has gaps.

Why not take advantage of my I Hate Numbers channel – with exclusive weekly video content to help you reach and exceed those all-important targets. Don’t forget to subscribe, so that you can join countless others who have achieved huge successes by following my tips and tutorials. Together, we’ll make the numbers work for your business!

And if you’re still feeling lost or don’t know where to start, I Hate Numbers and our team at Numbers Know How will help get your business through these trying times and into a bright future ahead.

So, what are you waiting for?  Get in touch with us to help make your life easier and stress free. Contact us if you need help figuring out and sorting your numbers, creating your future financial story plans, your tax , payroll and other accounting and business matters

Beating procrastination is a common theme in business. Procrastination is a common problem that affects many businesses, but it doesn't have to be a bad thing. In this week's podcast, I look at

• Firstly, what procrastination is
• Secondly why it happens
• Thirdly, how to reduce it
• Finally talk about the positive side of procrastination.

Procrastination is the tendency to avoid or delay necessary tasks or decision-making. It often comes from fear of failure, lack of motivation or interest in the task, or simply too many distractions. Procrastination can also be caused by negative self-talk from believing you can’t do the task or won’t make good decisions with it. In business settings, procrastinating on tasks can lead to missed deadlines and decreased productivity.

There are several reasons why people procrastinate. Common reasons include

• fear of failure
• lack of motivation and interest in the task at hand
• perfectionism (striving for unrealistic goals)
• anxiety about making decisions
• believing that you don’t have enough time to complete tasks in a timely manner.

There are several ways to reduce procrastination in your business and increase productivity so that tasks will get done on time. One strategy is breaking down large projects into smaller steps that are easier to manage and complete within a reasonable amount of time. Setting specific deadlines for yourself and others involved in the project can help as well. Reducing distractions such as emails and social media can also be helpful in avoiding procrastination. Finally, rewarding yourself with small incentives after each task can help motivate you to continue working on them until they are completed.

Procrastinating has negative consequences such as missed deadlines or decreased productivity.  However,  it doesn’t always have to be viewed as a bad thing. Taking time out of your day to step away from work can give you a chance to reflect on what needs to be accomplished.  Furthermore, you come up with creative solutions for problems you may encounter while completing tasks. Additionally, taking a break can give you a chance to clear your head.  When you return back to work your mind is better focused than before giving you more energy when tackling long-term projects or difficult tasks. Lastly, having an accountability partner who checks up on your progress consistently can encourage you stay on track with your goals and tasks throughout the day.  This stops you becoming distracted by other activities or projects instead of finishing what needs to be done first before starting something new.

Overall, Beating procrastination in your business is key for any successful business owner or entrepreneur. You gain valuable insights into how well your company is performing financially.  As a measure of true financial success, it lags behind profit.

The I Hate Numbers podcast covers a range of topics to help serious business owners thrive, let alone survive.  From financial storytelling to tax, and more!  Every episode provides actionable advice from me, business finance coach, accountant and educator. Subscribe to keep in touch, contact me if you want my help for your business

Are you a small business owner, social enterprise or organisation passionate about change? Managing your finances can be a lot of work, trust me.  Finally, there’s software that makes keeping track of your cash flow and financial planning easier: Numbers Know How.

When comparing sales turnover vs profit, it is easy to give turnover more importance than it deserves. A growing sales figure can tell us useful things about a business, but it does not automatically mean the business is financially successful.

Turnover tells us the value of the goods and services we sell. Profit tells us what remains after we account for the relevant costs. Cash tells us something different again, because money arriving in the bank may not match the sales made during the same period.

In this episode, we look at what sales turnover actually means, how we measure it, why it is useful and why turnover can become a vanity metric when we use it as the main measure of business success.

People sometimes dismiss turnover as vanity.

There is some truth in that, particularly when somebody uses sales alone to judge whether a business is successful.

However, turnover is still an important business number.

It helps us understand the level of activity in the business, provides a reference point for profitability, supports pricing decisions and can help us measure how efficiently customers pay us.

The problem is not turnover itself. Problems arise when we expect turnover to tell us something it cannot.

If you want the basic definition first, see our guide to turnover in business.

Sales turnover is the total financial value of the goods and services we supply to customers over a particular period.

For example, imagine a retailer sells 100 calculators at £10 each.

The sales turnover is:

100 × £10 = £1,000

The same principle applies if you sell services rather than products.

If you sell your time, expertise or intellectual property, the value of those services contributes to your turnover.

We can measure turnover across different periods, including days, weeks, months, quarters and years.

This is one of the most important distinctions.

Sales turnover is not simply the amount of money that appears in the bank.

Suppose you provide £1,000 of goods to a business customer and give them 30 days to pay.

You have made the sale, but the cash may not arrive until the following month.

If a trade discount reduces the final selling value to £900, that adjusted amount becomes the relevant sales value. When the customer later pays £900 into the bank, the payment does not suddenly create the turnover. It simply collects money from a sale you made earlier.

Payment providers can make the distinction even clearer.

If you make a sale and the payment provider deducts a transaction fee before sending the remaining money to your bank, the amount received into the bank is not necessarily the same as the value of the sale.

This is why we need to understand turnover and cash separately.

For more on that distinction, see How Different Is Cash to Profits?.

Turnover and profit answer different questions.

Turnover asks: how much did we sell?

Profit asks: what did we make after accounting for the relevant costs?

A business can generate impressive turnover and still make very little profit.

Equally, a product with lower sales value may generate more profit than another product if producing and delivering it costs much less.

That is why turnover alone cannot tell us whether a business is financially successful.

If you need the profit foundation, see What Is Profit? Gross Profit and Net Profit Explained.

MeasureWhat it tells us

Turnover

The value of goods and services we sell.

Profit

What remains after we account for the relevant business costs.

Cash

The money actually flowing into and out of the business.

These numbers are connected, but they are not interchangeable.

A sale can increase turnover without immediately increasing cash. Higher turnover can also fail to increase profit if the additional sales are expensive to produce or deliver.

Looking at all three gives us a much stronger picture of business performance.

If turnover does not measure financial success on its own, why bother tracking it?

Because it gives us an important reference point.

Turnover tells us the financial value of what the business is selling.

Tracking that figure over time can help us see whether sales are increasing, falling or remaining relatively stable.

We need turnover to calculate several important profit measures.

Without knowing the value of sales, we cannot properly understand margins or how much profit those sales generate.

Sales turnover gives us a useful reference point when assessing whether our pricing works.

We recover the cost of supplying goods or services through the prices customers pay. Looking at turnover alongside costs and profit helps us judge whether those prices make financial sense.

If you offer customers credit, turnover can also help us measure how efficiently we collect money.

One useful measure is receivables days, which is simply a way of asking:

How long, on average, are we waiting for customers to pay us?

The turnover figure provides an important reference point for that calculation.

Turnover is also a useful starting point when planning ahead.

If your accounting system records sales properly when you raise invoices or deliver work, you can monitor sales patterns and use that information when building forecasts and business plans.

Turnover becomes vanity when we treat a large sales number as proof of financial success.

A business owner might proudly say the business has reached £500,000 or £1 million of turnover.

But that number alone does not tell us what the business owner actually made from it.

We still need to consider the costs of generating those sales.

Those costs might include manufacturing, staff, freelancers, marketing, distribution, payment charges, professional fees and other business expenses.

Once we account for those costs, the profit may tell a very different story.

That is why the size of the sales number should never be confused with the quality of the business.

Turnover belongs in the picture, but it should not dominate it.

For financial success, profit and cash are generally much more revealing.

Profit tells us whether the business creates financial value after costs.

Cash shows us whether that value translates into money the business can actually use.

Turnover helps explain where those numbers start, but it does not tell the whole financial story.

If financial terminology sometimes feels unnecessarily complicated, our guide to Understanding Financial Terminology explains several common terms in plain English.

Sales turnover is the total value a business generates from selling goods and services over a particular period.

In everyday UK business language, people often use turnover and revenue to describe income generated from normal business sales. The exact terminology can depend on the context.

Turnover measures the value of sales. Profit measures what remains after we account for the relevant costs.

A business may make a sale today but receive payment later. Turnover relates to the sale, while cash relates to when money actually moves into or out of the business.

Yes. A business can generate large sales but still make little profit if producing, delivering and supporting those sales costs too much.

Turnover helps us monitor sales activity, calculate profitability, assess pricing, measure customer payment performance and support financial planning.

• 00:00 - Why turnover is more than vanity
• 01:27 - What business turnover means
• 01:47 - Defining sales turnover
• 02:35 - How we measure turnover
• 03:18 - Credit terms, discounts and the timing of turnover
• 03:56 - Why bank receipts are not turnover
• 04:46 - Why turnover is useful
• 05:15 - Profitability, pricing and customer payments
• 06:22 - Why cash and turnover are different
• 06:44 - Turnover versus profit and financial success
• 08:04 - Final takeaway

• What Is Turnover in Business?
• What Is Profit? Gross Profit and Net Profit Explained
• How Different Is Cash to Profits?
• Understanding Financial Terminology

Sales turnover matters, but we need to understand it in context.

It tells us how much we are selling and gives us an important reference point for pricing, profitability, customer payments and financial planning.

However, turnover is not the same as profit, and it is not the same as cash.

A bigger sales figure does not automatically mean a stronger business.

Use turnover to understand activity. Look at profit to understand what the business makes. Then use cash to understand what money the business actually has available.

Together, those numbers give us a much clearer picture of financial success.

Plan it, Do it, Profit.

If you want to explore your sales, profit, cash flow and other business numbers, use our free online business calculators.

If you need help understanding your turnover, profitability, cash flow or wider business finances, you can contact us for an initial chat.

You can also watch more practical finance and business support on the I Hate Numbers YouTube channel, or listen and follow on Apple Podcasts.

📘 Book

https://www.ihatenumbers.co.uk/i-hate-numbers-book/

🎧 Podcast

https://www.ihatenumbers.co.uk/i-hate-numbers-podcast/

🌐 Website

https://www.ihatenumbers.co.uk

When should you investigate variances is a massive part of financial management.  it's also this week's I Hate Numbers podcast episode.

If you're thinking, what's a variance, well that's the difference between where you expected to be financially (budget) and where you actually are.  Time, money and your energy is limited so you need to know when it is worth investigating a variance.  This is all part of a system called management by exception, react and correct when things differ from your expectations.

There are five factors for you take on board as to When should you investigate variances.

• Firstly, how large is your variance?   How material is it?  For example, a £100 overspend may be significant to your business, a drop in the ocean to others.
• Secondly, consider controllability.  Can you control this, for example does it arise from external factors, are these fixed costs?
• Thirdly, how accurate and realistic is your Financial Story Plan, Budget as some would call it.  Has there been a conscious effort to accurately forecast resources required?
• Fourthly, cost-benefit.  How much time and money will need to be invested in investigating this variance compared with any potential savings resulting from identifying any underlying problems?
• Finally, consider whether the variance is a one-off or is a pattern and more regular.

When should you investigate variances is the first step before you dive in to get your insights.  Those insights are showing you how well your financial performance is doing against your financial forecasts.  Knowing when to take a closer look, needs you to have an easy-to-use framework as part of your decision-making process.

The I Hate Numbers podcast covers a range of topics to help serious business owners thrive, let alone survive.  From financial storytelling to tax, and more!  Every episode provides actionable advice from me, business finance coach, accountant and educator. Subscribe to keep in touch, contact me if you want my help for your business

Are you a small business owner, social enterprise or organisation passionate about change? Managing your finances can be a lot of work, trust me.  Finally, there’s software that makes keeping track of your cash flow and financial planning easier: Numbers Know How.

Gaining Financial Controls for your business can be difficult and often rather daunting. Moreover, having the right approach and finance controls in place is essential to keep ahead of any financial issues that may arise.

This week’s podcast looks at PAWAD.  This is a five-step approach on how to set up and use effective Financial Controls for your business. The benefits of having Financial Control are many,

• Firstly, whether you are on track to reach your goals.
• Secondly, you stay in control of your business.
• Thirdly, Stress, anxiety and uncertainty is replaced by calm, clarity and focus
• Fourthly, greater visibility about where your money is going.
• Fifthly, what your money is being used for

Furthermore, a healthy bottom line!

What is PAWAD I hear you ask, great question, hear is a little taste,

• P is for Plan
• A is for Actual
• W is for Why
• A is for Action
• D is for Do

Listen to find out more

Operating any kind of business without having effective and impactful Financial Controls for your Business leads to financial problems down the line.  I don’t want that for you. So, whether you’re just getting started with developing good practices or already have basic controls set up, listen to get more insight.

The I Hate Numbers podcast isn’t just about Financial Controls, financial storytelling, and financial performance though.  Other topics are covered, for example, cash flow management, budgeting, forecasting, tax, accounts, and more! Every episode provides actionable advice from me, Business Finance coach, accountant and educator who explains that stuff in an easy and no-nonsense way.

Are you a small business owner, social enterprise or organisation passionate about change? Managing your finances can be a lot of work, trust me.  Finally, there’s software that makes keeping track of your cash flow and financial planning easier: Numbers Know How.

It helps you stay organised so you can focus on what matters to you, the creative work and the impactful change. Take a step away from the chaos with fast setup & easy navigation – numbers just got real…for the better! Get organised & make sense of it all with Numbers Know How today!

Grab your FREE cashflow guide Make your own Future Cash Story Plan with Numbers Know How.  Get in touch with us to help make your life easier and stress-free. Contact us if you need help figuring out and sorting your numbers, creating your future financial story plans, your tax, payroll and other accounting and business matters.

Are you ready to have an easier and more rewarding relationship with your numbers?  My book, I Hate Numbers helps you get there.

This book will show you how to have a rewarding, productive relationship with numbers and your business.  Furthermore, my book will help with that battle between the ears, that all business owners experience.

Achieving your targets is this week's I Hate Numbers podcast.  A target is a goal that has specific criteria for success.  Furthermore, reaching it means you have got where you wanted to, it’s pat on the back time.

Targets are an integral part of achieving your goals and objectives. Furthermore, they help your business progress.  Embrace the idea of targets, it is joyful,

Having a target gives you something tangible that you can strive towards, helping push the progress of your projects . As well as providing an end point, having a target also encourages ambition; by setting concrete goals, it motivates us to work harder towards reaching them.

Achieving your targets means breaking down each goal into smaller steps or milestones.  This has so many upsides,

• Firstly, planning, management and control becomes easier
• Secondly, it reinforces the fact that success is made up of small wins (and losses!)
• Thirdly, your stress and anxiety reduces, who wouldn't want that

The I Hate Numbers podcast isn’t just about target setting, financial storytelling, and financial performance though.  Other topics are covered, for example, cash flow management, budgeting, forecasting, tax, accounts, and more! Every episode provides actionable advice from me, Business Finance coach, accountant and educator who explains that stuff in an easy and no-nonsense way.

Are you a small business owner, social enterprise or organisation passionate about change? Managing your finances can be a lot of work, trust me.  Finally, there’s software that makes keeping track of your cash flow and financial planning easier: Numbers Know How.

It helps you stay organised so you can focus on what matters to you, the creative work and the impactful change. Take a step away from the chaos with fast setup & easy navigation – numbers just got real…for the better! Get organised & make sense of it all with Numbers Know How today!

Effective KPIs help you understand how your business is really performing. Good key performance indicators do more than track sales. They help you monitor cash flow, profit, working capital, customer behaviour, operational speed and quality. In this episode, we look at 10 practical KPIs that can help you measure business performance in challenging times and keep control when things are going well.

Business performance needs to be measured. Without clear numbers, it is much harder to know whether the business is healthy, where problems are building and what needs attention.

This episode builds on the idea that measuring performance is not just about looking at turnover. Revenue can be useful, but it does not show the full picture. Cash flow, profit, costs, risk, customer behaviour and quality all matter.

The focus here is on 10 effective KPIs that can be used in difficult trading conditions and in stronger periods. When times are challenging, these measures help you stay alert. When things are going well, they help you avoid becoming complacent.

KPIs, or key performance indicators, help turn business activity into useful information.

They show whether the business is moving in the right direction, whether cash is under pressure, whether customers are paying on time, whether margins are strong enough and whether operational issues are starting to affect performance.

Effective KPIs also combine financial and non-financial measures. Financial KPIs show what is happening with money. Non-financial KPIs add context by looking at customers, service quality, speed and activity.

For the wider profit foundation, see What Is Profit? Gross Profit and Net Profit Explained.

Cash flow is one of the most important KPIs for any business.

Cash keeps the business going. It pays suppliers, staff, running costs and the people who depend on the business. A useful measure is the amount of operating cash available after allowing for money that should be set aside, such as tax collected on behalf of others.

A practical target from the episode is to aim for a cash buffer that could cover around three months of operating costs. This should be treated as a planning benchmark rather than a fixed rule, but it gives the business a useful safety target.

The receivables collection period shows how long customers take to pay after invoices are issued.

The shorter the waiting time, the healthier the cash flow position usually is. If customers take too long to pay, the business may have to fund wages, suppliers and overheads while waiting for cash to arrive.

This KPI links closely to credit control and getting paid on time. It helps show whether customer payment behaviour is supporting or damaging the business.

The payables payment period measures how long the business takes to pay suppliers.

This is the other side of the working capital cycle. It helps show how supplier payment timing affects cash. Paying too quickly can create cash pressure, while paying too slowly can damage supplier relationships.

The aim is not to delay payment unfairly. The aim is to understand the timing of money moving in and out of the business.

Inventory turn shows how quickly stock moves through the business.

For product-based businesses, this means understanding how long stock sits before being sold. For service businesses, a similar idea applies to work in progress: work that has started but has not yet been completed, invoiced or converted into cash.

Slow-moving stock or slow work in progress can tie up money and increase pressure on cash flow.

The working capital cycle brings customer payments, stock or work in progress, and supplier payments together.

It shows how long the business has to finance the gap between doing the work, holding stock or work in progress, waiting for customers to pay and paying suppliers.

A shorter working capital cycle usually means less pressure on business cash. A longer cycle can mean the business needs more money tied up just to keep operating.

For a deeper look at performance measures and ratios, see Using Financial Ratios in Business.

Gross margin measures how much is left from sales after direct costs.

This matters because gross profit helps cover the operating costs of the business. If gross margins are weak, the business may sell more but still struggle to make enough money to cover overheads and generate profit.

Tracking gross margin as a percentage can make it easier to spot whether pricing, direct costs or product/service mix need attention.

Break-even is the point where the business covers its costs but does not yet make a profit.

Knowing the break-even point helps with pricing, sales targets and planning. It shows the level of sales or activity needed before profit starts.

Anything above break-even moves the business into profit. Anything below break-even creates a loss. That makes break-even a useful KPI for planning and decision-making.

The conversion ratio shows how many leads, enquiries or website visits turn into actual business.

If conversion is strong, marketing and sales activity are working well together. If conversion is weak or falling, something may need attention. The issue could be pricing, communication, follow-up, the offer, the sales process or the type of leads being attracted.

This is a useful non-financial KPI because it connects customer interest with real business results.

Customer lifetime value looks at the value a customer brings from the time they become a customer until the time they leave.

This can be measured through sales value, profit contribution, repeat work and customer retention. If customer lifetime value is falling, it may suggest that customers are leaving too quickly, spending less or becoming less profitable.

Understanding this KPI can help with pricing, service quality, retention and marketing decisions.

Throughput looks at the time between being commissioned to do work and delivering the final product or service.

The shorter and smoother the process, the quicker the business can invoice, serve customers and take on more work. Long delays can affect cash flow, service standards and customer satisfaction.

Quality is also important. Complaints, feedback and customer comments can show whether standards are slipping. A lack of complaints does not always mean everything is fine. It may mean customers are not being asked for honest feedback.

Financial KPIs are essential, but they do not show the full picture on their own.

Cash flow, gross margin, break-even and working capital help explain financial performance. However, conversion rates, customer lifetime value, throughput and quality help explain what is happening behind the numbers.

A strong KPI set should include both. That gives a more rounded view of the business and helps avoid relying on one headline number.

KPIs work best when they are reviewed regularly and acted on.

It is not enough to calculate a number once and forget about it. Effective KPIs should help you ask better questions:

• Is cash strong enough to support the business?
• Are customers paying quickly enough?
• Is too much money tied up in stock or work in progress?
• Are margins healthy?
• How much activity is needed to break even?
• Are enquiries turning into paying customers?
• Are customers staying and generating enough value?
• Is work being delivered quickly and at the right quality?

These questions help business owners move from simply recording numbers to using them for decisions.

Effective KPIs are key performance indicators that help you understand whether the business is performing well. They should measure important areas such as cash flow, profit, working capital, customers, operations and quality.

A business should track KPIs because they help show progress, highlight problems early and support better decisions. Without useful KPIs, it is harder to know what is working and what needs attention.

No. Financial KPIs are important, but non-financial KPIs complete the picture. Conversion rates, customer feedback, throughput and customer lifetime value can explain what is happening behind the financial results.

KPIs should be reviewed regularly. The timing depends on the business, but cash flow, customer payments, margins and sales activity usually need more frequent attention than once a year.

• 00:00 – Building on business performance measurement
• 01:26 – Operating cash flow and why cash matters
• 02:31 – Working capital cycle and credit trading
• 03:33 – Receivables collection period
• 04:18 – Payables payment period
• 04:39 – Inventory turn and work in progress
• 05:32 – Gross margins and gross profit
• 06:11 – Break-even point
• 07:31 – Conversion ratio and non-financial KPIs
• 08:10 – Customer lifetime value
• 08:50 – Throughput and delivery speed
• 09:56 – Quality, complaints and feedback

• What Is Profit? Gross Profit and Net Profit Explained
• Using Financial Ratios in Business
• Understanding Your Financial Statements

Effective KPIs help you see what is really happening in your business. Turnover alone does not tell the full story. Cash flow, working capital, gross margin, break-even, customer value, conversion, throughput and quality all help build a clearer picture.

The right KPIs give you early warning signs, better control and more confidence when making decisions.

Plan it, Do it, Profit.

The I Hate Numbers podcast helps business owners understand profit, cash flow, pricing, costs, tax and financial performance in a practical way. We simplify business finance so you can make better decisions and feel more confident with your numbers.

If you need help choosing the right KPIs, understanding your financial performance or improving your profit and cash flow, you can contact us for an initial chat.

You can also watch more practical finance and tax support on the I Hate Numbers YouTube channel, or listen and follow on Apple Podcasts.

📘 Book

https://www.ihatenumbers.co.uk/i-hate-numbers-book/

🎧 Podcast

https://www.ihatenumbers.co.uk/i-hate-numbers-podcast/

🌐 Website

https://www.ihatenumbers.co.uk

Are you a business owner or manager looking for ways to measure the performance of your business? If so, then this video has all the answers you need! Watching it will teach you how to identify your business goals, choose the right metrics and collect and analyze data in order to accurately measure your business performance.

At its core, measuring performance is about making sure your business reaches its Northern Star, achieving your desired outcomes. To do this, you need to have a clear understanding of what your goals are and what success looks like. This means identifying both financial and non-financial goals such as increasing revenue, improving customer satisfaction, or gaining market share.

Once you have identified your goals, the next step is to select specific metrics that help measure progress towards them. These should be SMART goals, (Specific, Measurable, Achievable, Relevant and Time-bound). Example metrics include customer retention rate, churn rate or employee engagement scores.

Finally, collecting data on your chosen metrics,  furthermore analyzing that data is a big deal when measuring performance.

• This can involve tracking financial data such as sales figures or costs incurred over time
• Conducting surveys in order to assess customer satisfaction levels
• Analysing internal process data related to efficiency gains or productivity improvements.

So if you want tips on how businesses should measure performance effectively, don't miss out on this podcast. Listen to find out more.

The I Hate Numbers podcast isn’t just about financial performance though.  Other topics are covered, for example cash flow management, budgeting, forecasting, tax, accounts, and more! Every episode provides actionable advice from me, Business Finance coach, accountant and educator who explains that stuff in an easy and no nonsense way.

Are you a small business owner, social enterprise or organisation passionate about change? Managing your finances can be a lot of work, trust me.  Finally, there’s software that makes keeping track of your cash flow and financial planning easier: Numbers Know How. It helps you stay organised so you can focus on what matters to you; the creative work and the impactful change. Take a step away from the chaos with fast setup & easy navigation – numbers just got real…for the better! Get organised & make sense of it all with Numbers Know How today!

Tax return mistakes are easy to make when you are dealing with unfamiliar rules, missing information and a deadline at the same time.

Some mistakes mean you pay too little and have to correct the position later. Others mean you pay more tax than necessary because you forgot a valid claim or relief.

In this episode, we look at five areas that regularly cause problems: student loans, the High Income Child Benefit Charge, self-employed expenses, working from home and Gift Aid.

Preparing your own tax return can feel daunting.

You are bringing together different sources of income, expenses, deductions and personal information, often using terminology you may only see once a year.

So forgetting something is not unusual.

These tax return mistakes usually happen because something has been overlooked, misunderstood or based on rules that have since changed.

The important thing is to understand the areas that commonly get missed and check them before you submit.

If you need the wider foundation first, see our guide to Self Assessment tax returns.

If you have a student or postgraduate loan, do not assume that PAYE has automatically dealt with everything.

If you complete a Self Assessment return and your repayments are due, the student loan information forms part of that calculation.

The current system includes Plan 1, Plan 2, Plan 4, Plan 5 and Postgraduate Loans.

Yes, there still is no Plan 3.

The repayment threshold depends on the plan you are on, and those thresholds can change between tax years.

If you are self-employed, HMRC calculates the repayment through Self Assessment using your annual income.

If you are both employed and self-employed, repayments already taken through PAYE are taken into account when HMRC calculates what remains due.

So check which plan you are on and make sure the student loan section of the return is correct.

The High Income Child Benefit Charge is another area that can easily get overlooked.

It can apply where you or your partner receive Child Benefit and one of you has adjusted net income above the relevant threshold.

For tax years from 2024/25 onwards, the charge starts when adjusted net income is over £60,000.

Once adjusted net income reaches £80,000, the charge is equivalent to the full amount of Child Benefit received.

If both partners are above the threshold, responsibility normally falls on the partner with the higher adjusted net income.

It is adjusted net income that matters, not simply your headline salary or business turnover.

If you are dealing with the charge through Self Assessment, make sure the relevant information has not been left out.

Paying tax on more profit than necessary is also a mistake.

If you are self-employed, allowable business expenses reduce the profit on which your tax calculation is based.

Typical costs may include things such as software, professional fees, advertising, business travel, office costs and other expenses connected with running the business.

However, do not fall into the opposite trap and assume that anything vaguely connected with work can automatically be claimed.

If a cost has both business and personal use, you can generally claim only the business element.

For example, if you use your mobile phone for both personal and business calls, you need a reasonable way to identify the business proportion.

Good bookkeeping makes this much easier because you are not trying to reconstruct twelve months of spending when the tax return deadline arrives.

This is a good example of why tax return mistakes can work both ways. You can underpay tax by leaving something out, but you can also overpay by failing to claim expenses you are entitled to.

This area has changed significantly since the original episode was recorded.

The old COVID-era working-from-home rules should not simply be carried forward into a current tax return.

From 6 April 2026, employees cannot claim tax relief for working-from-home expenses for the 2026/27 tax year.

Claims for some earlier tax years may still be possible if you met the rules that applied at the time.

The position is different if you are self-employed.

Self-employed people may still be able to claim the business proportion of eligible household costs when working from home.

Depending on your circumstances, you may calculate the actual business cost or use simplified expenses.

The key point is to apply the rules that match both your employment status and the tax year concerned.

Gift Aid can affect your tax position in more than one way.

When you make an eligible Gift Aid donation, the charity can normally reclaim basic-rate tax on that donation.

If you are a higher-rate taxpayer, you may also be able to claim additional tax relief through Self Assessment.

But there is another side to the rule.

You need to have paid enough Income Tax or Capital Gains Tax to cover the tax that the charity reclaims through Gift Aid.

If the charity claims more tax than you have paid, HMRC may ask you to make up the difference.

So do not simply tick the Gift Aid box and forget about it.

Keep a record of your donations and make sure the tax position supports the declaration you made.

The five tax return mistakes above cover very different parts of Self Assessment, which is why a final review before submission matters.

Finding a mistake after filing does not automatically mean disaster.

You can normally amend a Self Assessment return within 12 months of the filing deadline.

If that amendment window has passed, different rules apply depending on whether you have underpaid or overpaid tax.

For example, overpayment relief may be available for up to four years after the end of the relevant tax year.

The important thing is to deal with the mistake once you become aware of it rather than hoping it disappears.

1. Check your student loan position. Confirm the plan and any repayments already deducted.
2. Review Child Benefit. Check whether the High Income Child Benefit Charge applies.
3. Review your business expenses. Make sure you have included allowable costs without claiming personal spending.
4. Check working-from-home rules for the correct tax year. Do not rely on old COVID-era guidance.
5. Review Gift Aid donations. Check both the relief available and whether you paid enough tax to support the declaration.
6. Read through the completed return. Look for missing income, unexpected figures and anything that does not make sense.

A few extra minutes checking the return can save a lot more time later.

Common tax return mistakes include forgetting student loans, missing the High Income Child Benefit Charge, overlooking allowable expenses, applying outdated working-from-home rules and failing to deal with Gift Aid correctly.

If you are due to make student or postgraduate loan repayments and complete a Self Assessment return, the relevant loan information needs to be included so HMRC can calculate the repayment correctly.

No. You can claim allowable business expenses. If a cost has both personal and business use, you generally claim only the business part.

Not for the 2026/27 tax year. From 6 April 2026, employees cannot claim working-from-home tax relief for the current tax year. Earlier eligible tax years are subject to the rules that applied at the time.

If you pay tax above the basic rate, Gift Aid donations may allow you to claim additional relief. You must also have paid enough Income Tax or Capital Gains Tax to cover the amount reclaimed by the charity.

Yes. You can normally amend the return within 12 months of the Self Assessment filing deadline. Other routes may be available after that period depending on the type of correction required.

• 00:00 - Five common tax return mistakes
• 01:08 - Mistake 1: student loans
• 03:12 - Mistake 2: High Income Child Benefit Charge
• 04:39 - Mistake 3: self-employed expenses
• 05:21 - Mistake 4: working-from-home expenses
• 06:03 - Mistake 5: Gift Aid
• 07:12 - Five areas to check before submitting

• Self Assessment Tax Returns
• Personal Tax Return Explained
• 7 Benefits of Filing Your Tax Return Early

Most tax return mistakes are easier to fix before you press submit.

Check the areas that are easy to forget, especially student loans, Child Benefit, business expenses, working-from-home costs and Gift Aid.

Do not rely on tax rules you remember from several years ago. Thresholds, reliefs and reporting requirements change.

Use good records, review the numbers and ask questions when something does not look right.

Getting the return correct is not about becoming a tax expert.

It is about knowing where the common traps are and checking them before they become a problem.

Plan it, Do it, Profit.

If you want help understanding your tax, profit and other business numbers, use our free online business calculators.

If you need help reviewing your Self Assessment, correcting a tax return or understanding what you need to declare, you can contact us for an initial chat.

You can also watch more practical finance and tax support on the I Hate Numbers YouTube channel, or listen and follow on Apple Podcasts.

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Are you looking for some help with Tax and Business Financial Planning? It can be intimidating to figure out on your own, don't struggle alone. My I Hate Numbers podcast is here to make it easier for you.

When building a business financial plan, tax must be considered. Tax is an expense just like any other, so it’s essential for us to consider the amount, as well as all the various variables that come with it. Furthermore, not doing so could lead to major problems down the line if we ignore tax considerations.

Fortunately, this weeks I Hate Numbers podcast covers the approach you need to make when dealing with Tax and Business Financial Planning

The I Hate Numbers podcast isn’t just about taxes though.  Other topics are covered, for example cash flow management, budgeting, forecasting, debt management and more! Every episode provides actionable advice from experienced professionals who explains complicated concepts in an easy-to-understand way.

I understand that dealing with finances can feel overwhelming at times but don’t let that stop you from taking control of your finances! Tune into my I Hate Numbers podcast today where we provide vital information plus practical advice in a fun way!

It's vital that you consider tax as part of your business financial plan. You gain a lot to be gained by understanding the taxes involved and considering the timing and attitude to tax in your business.  You can ensure that you're making sound decisions for the future of your company. If you need help with this process, please don't hesitate to contact me. I'd be happy to advise you on how to build a solid financial foundation for your business.