Yes, you can have a relaxing holiday if you’re self-employed. Here’s how

Manage client expectations

If you have regular customers or clients that you work for ensure that you tell them well in advance of your holiday

Change your emails a few weeks before your holiday to show the dates you are away. This is a good way of managing client expectations and prompts clients to get in touch if they have any urgent work they want you to do before you go

If work or enquiries are coming in just before you take your break be honest with your customers. Tell them that you are about to go on holiday, but you will make their work a priority when you get back

Sort out your cashflow

Make sure that as much work is invoiced in advance of your break – this will help to manage your cashflow while you are away.

If you use a bookkeeping package, such as Xero, and you send regular invoices to your customers make sure that you set up the automated repeating invoices. This means that invoices will still be sent, even if you are away.

Spend time chasing people who owe you money. Again, this will help your cashflow while you are away as these people should pay you during your holiday.

Take care of your admin

If you are running your own payroll, even if it’s only for you, make sure your Full Payment Submissions (FPS) are up-to-date with HMRC. The last thing you want is to come home to a fine, because you’ve missed the FPS deadline.

If you can, use a telephone answering service/virtual PA. You can divert your calls to this third-party service who can answer your calls using your business name and field any enquiries. This does take a bit of set up time so don’t leave it until the last minute.

If you are signed up for lots of automated emails, such as news alerts, consider switching them off before you go away. There is nothing worse than coming back to a full inbox.

Remember to change your voicemail message to say you are away and when you’ll be back. Sometimes it’s worth telling people you’ll be back a day or two later than you actually are, so you can have a couple of days catching up in peace.

Finally, put on your out-of-office reply on your e-mails, switch off your mobile and enjoy a well-earned rest!

Breaking even – checking the numbers

In previous newsfeeds we have described how you can calculate the level of turnover you need to create in order to meet all your costs whether they be fixed costs (rent, rates etc.,) or variable costs (goods you need to buy to convert into goods you sell).

For example, if your fixed costs are £50,000 per annum and your variable costs are 25% of your turnover, the annual turnover you need to breakeven will be £200,000. The formula is:

Annual fixed costs divided by 25 (the gross profit)

Bereavement Support Payment

The amount of Bereavement Support Payment you can claim will depend on your relationship to the person who died and when you make your claim.

Your payments will be paid into your bank, building society or credit union account.

If you were married or in a registered civil partnership with the person who died

If you were receiving Child Benefit when your partner died (or did not get it but were entitled to it), you will get the higher rate.

This is made up of:

a first payment of £3,500;

Tax codes for employees

The P9X form is used to notify employers of the tax codes to use for employees. The latest version of the form has been published and shows the tax codes to use from 6 April 2023. The form states that the basic personal allowance for the tax year starting 6 April 2023 will, as expected, be £12,570 (£12,570 in 2022-23) and this means that the tax code for emergency use will remain at 1257L.

The basic rate limit will be £37,700 (£37,700 in 2022-23) except for those defined as Scottish taxpayers

Properties not let at commercial rates

There are special rules where a property is let at less than a commercial rate or isn’t let on commercial terms. These rules also apply if a property is occupied rent free or at less than a commercial rate, for example, a property is occupied by a family member at a reduced or nil rent.

In these circumstances, HMRC can take the view that unless the landlord charges a full market rent for a property and imposes normal market lease conditions, it is unlikely that the expenses of the property are