I Hate Numbers: Simplifying Tax and Accounting

In this episode of the I Hate Numbers podcast, we focus on a topic that affects millions of employees across the UK — claiming tax relief online. If you pay for work-related costs out of your own pocket and your employer does not reimburse you, you may be entitled to tax relief.

However, if you do not claim it, that money simply stays with HMRC. And we would rather see it where it belongs — in your bank account.
Who This Episode Is For

Employees in studios, theatres, galleries, or offices
Workers paying for professional costs themselves
Anyone unsure whether they can claim tax relief
Employees who have never claimed before


What Is Employment Expense Tax Relief?

Employment expense tax relief allows employees to reduce their taxable income when they personally pay for costs that are required for their job and are not reimbursed by their employer.

The key rule is simple. The expense must be wholly, exclusively, and necessary for your job. In plain English, it must be something you would not have spent money on unless your work required it.
What Expenses Can You Claim?

Work-Related Travel

You may be able to claim mileage or public transport costs for business journeys that are not your normal commute. This includes travel to meetings, rehearsals, performances, or visiting suppliers.
Professional Fees and Subscriptions

If you pay for memberships or subscriptions that are relevant to your role — such as trade bodies or unions approved by HMRC — these costs may qualify for tax relief.
Working From Home

If your employer requires you to work from home, you may be able to claim a portion of household running costs. Choosing to work from home for convenience does not qualify.
Uniforms, Tools, and Specialist Equipment

Costs for uniforms, costumes, tools, or specialist equipment required for your role may qualify. Everyday clothing, even if only worn at work, does not.
How the Tax Relief Works

Tax relief does not mean HMRC refunds the full cost of the expense. Instead, your taxable income is reduced.

For example, if you spend £200 on professional subscriptions and pay tax at 20%, you receive £40 back through reduced tax. It works like a mini personal allowance.
How to Claim Tax Relief Online

HMRC’s online expense claim form is now available again and can be used if:
Your total claim is £2,500 or less per tax year
You do not complete a self-assessment tax return


If your claim exceeds £2,500, or you already file a tax return, the claim must be made through your self-assessment.

You can access HMRC’s online service via the official government website:

🔗 Claim tax relief for job expenses – GOV.UK
What Evidence Do You Need?

HMRC expects evidence to support your claim, so good record-keeping is essential.
Receipts or bank statements for subscriptions and equipment
Mileage logs showing dates, distances, and reasons for travel
Employment contracts or emails confirming required home working


For some flat-rate expenses, such as uniforms in approved occupations, receipts are not required.
Can You Backdate Claims?

Yes. You can backdate claims for up to four tax years. This means you may be able to recover tax you overpaid in previous years, provided you have the records to support the claim.
Common Mistakes to Avoid

Claiming for ordinary commuting
Claiming everyday clothing
Not keeping...

Being a social enterprise or Community Interest Company does not mean tax obligations disappear. In this episode, we walk through the real tax position for CICs, clearing up misunderstandings that regularly catch directors out. We cover corporation tax, VAT, payroll, grants, and how structure affects your tax exposure.
What Is a Community Interest Company?

A Community Interest Company is a special type of limited company created to serve the community. It sits between a traditional profit-making business and a charity. While the purpose is social or environmental, CICs are still companies and remain firmly within the UK tax system.
Corporation Tax and CICs

CICs pay corporation tax just like any other limited company. If trading income exceeds allowable expenses, the resulting surplus is taxable. Being values-led or not-for-profit does not remove this obligation.

Corporation tax rates currently range from 19% for profits up to £50,000, rising to 25% for profits over £250,000, with marginal relief applying in between. Making a surplus is not a failure — it shows sustainability. What matters is how that surplus is managed and reinvested.
VAT: A Common CIC Trap

VAT frequently causes problems for Community Interest Companies. Grants and donations are usually outside the scope of VAT and do not count toward the registration threshold. However, income from selling goods or services does.

If taxable turnover exceeds £90,000 over a rolling 12-month period, VAT registration becomes mandatory. Profitability is irrelevant. Voluntary registration may be possible, but charging VAT to non-VAT-registered communities can create real cost pressures.

Digital systems such as Xero cloud accounting help track turnover accurately and reduce the risk of missing VAT thresholds.
Employing Staff and PAYE

Once a CIC employs staff, PAYE applies. This includes registering as an employer, operating payroll, deducting tax and National Insurance, and paying employer contributions.

From April 2025, employer National Insurance applies once earnings exceed £5,000 per year, charged at 15%. Employment Allowance may reduce the impact, but payroll obligations remain.
Freelancers, Contractors, and Risk

CICs using freelancers must assess employment status correctly. The engager is responsible for determining whether someone is genuinely self-employed. This is based on control, substitution, and equipment — not personal preference.
CIC Structure: Shares vs Guarantee

CICs can be limited by guarantee or by shares. Guarantee-based CICs have members and reinvest all surpluses. Share-based CICs may pay dividends, but these are capped by regulation and are never tax-deductible.

The structure chosen affects profit distribution, funding options, and long-term strategy.
Grants and Tax Treatment

Grants are a major income source for many CICs. Most grants are restricted income and recognised in line with project delivery. Unused funds are deferred rather than treated as profit.

Grants usually fall outside VAT, unless linked to specific service delivery. While grants themselves may not be taxable, any surplus generated can still create tax implications.
Practical Tax Planning Tips

Keep Clear Records

Accurate records from day one reduce risk and stress. Cloud accounting provides visibility and control.
Plan for Tax Bills

If a surplus arises, setting aside funds early avoids last-minute pressure. Tax is a sign of success, not failure.
Understand Your Obligations

Corporation tax, VAT, PAYE, Companies House...

Social enterprises often get misunderstood. Some people think they are charities in disguise, while others assume they are not real businesses. In this episode of I Hate Numbers, we break down what social enterprises really are, how they operate, and how they successfully combine purpose with profit. We explore the most common UK social enterprise models, how they differ from charities and traditional companies, and what you should consider if you are thinking of starting, running, or advising one.
What Is a Social Enterprise?
A social enterprise is a business that exists to solve a social, environmental, or community problem while still making money. Profit is not the enemy. Instead, profits are reinvested to support the organisation’s mission rather than simply enriching shareholders. Unlike charities, social enterprises trade commercially. They sell goods and services, employ staff, pay taxes, and face the same commercial pressures as any other business.
Social Enterprises vs Charities
Charities usually rely on grants, donations, and fundraising. Social enterprises rely primarily on trading income. While charities focus on public benefit, social enterprises focus on sustainability through commercial activity. A charity is not automatically a social enterprise, and a social enterprise is not necessarily a charity. The structure you choose matters.
Community Interest Companies (CICs)
Community Interest Companies are one of the most popular social enterprise structures in the UK. They are designed for organisations that want to make profits but lock those profits and assets into community benefit.
Key CIC Features
A clear community purpose must be demonstrated at registration
An asset lock protects profits and assets for community use
Can be limited by guarantee or by shares
May pay limited dividends if structured correctly

CICs often sit between traditional companies and charities, making them a flexible and popular choice.
Co-operatives and Community Benefit Societies
Co-operatives operate on democratic principles. Members have equal voting rights, and profits are shared or reinvested for collective benefit. Community Benefit Societies are regulated by the Financial Conduct Authority and are often used for community shops, renewable energy projects, and local initiatives. They can raise funds through community shares and embed democracy into their structure.
Can a Private Company Be a Social Enterprise?
Yes, a standard limited company can operate as a social enterprise. However, without an asset lock or legal obligation, trust must be built through transparency and genuine reinvestment of profits. Where social impact is central, we usually recommend using a structure that legally protects the mission.
Charitable Incorporated Organisations (CIOs)
CIOs are charities with legal status and limited liability. They are regulated by the Charity Commission and can access tax reliefs such as Gift Aid and business rates relief. They take longer to set up and carry greater trustee responsibilities, but they suit organisations with purely charitable objectives.
Choosing the Right Structure
Choosing the right structure starts with your purpose. You should consider who you help, how you generate income, whether you need investment, and how much control or restriction you are comfortable with. In many cases, organisations start as CICs and later convert to charities once the model is proven.
Key Takeaways
Social enterprises are not soft or fluffy. They are commercial, disciplined, and...

Community Interest Companies, often shortened to CICs, are designed for businesses that want to make a positive social impact while still operating commercially. In this episode of the I Hate Numbers podcast, we explain how CICs work, why they exist, and when they are the right structure for a business that wants purpose alongside profit.
What Is a Community Interest Company?
A Community Interest Company is a limited company created specifically for social enterprises. It allows a business to trade, earn income, and pay staff while ensuring that profits and assets are used primarily for the benefit of the community. Unlike charities, CICs are not restricted to grant funding and donations. They can sell goods and services in the same way as a standard company, making them a flexible option for organisations that want sustainability as well as impact.
Why CICs Exist
CICs were introduced to fill the gap between traditional companies and charities. Many organisations want to do good without the heavy regulation of charitable status or the perception that profit is the main driver. The CIC structure provides reassurance to customers, funders, and stakeholders that the business is genuinely focused on community benefit rather than private gain.
The Community Interest Test
To become a CIC, a business must pass the community interest test. This means clearly demonstrating that its activities benefit a defined community rather than a small group of individuals. The test is reviewed by the CIC Regulator and helps ensure that the structure is used correctly and not as a branding or tax shortcut.
Asset Lock and Profit Restrictions
One of the defining features of a CIC is the asset lock. This prevents assets and profits from being freely distributed to shareholders.
How the Asset Lock Works
The asset lock ensures that, if the company is sold or wound up, its assets must continue to be used for community benefit. This protects the original purpose of the business.
Dividend and Profit Limits
CICs can pay dividends, but they are capped. This allows investors to receive a return while ensuring that the majority of profits are reinvested into the community.
CICs Compared to Charities
While charities benefit from tax reliefs, they are tightly regulated and restricted in how they trade. CICs offer more commercial freedom, but without charitable tax exemptions. This makes CICs suitable for social enterprises that want trading income, flexibility, and transparency.
Reporting and Compliance
CICs must file annual accounts like any limited company. In addition, they must submit a Community Interest Report explaining how the business has benefited the community. This added layer of reporting builds trust and accountability with stakeholders.
When a CIC Makes Sense
A CIC may be suitable if your business has a clear social mission, wants to trade commercially, and needs to demonstrate credibility and accountability. However, it is not the right choice for every organisation, so understanding the long-term implications is essential.
Final Thoughts
Community Interest Companies offer a practical way to combine purpose with profit. When structured correctly, they allow businesses to grow while staying aligned with their social objectives. If you are considering a CIC and want to explore whether it is right for your situation, you can book a call with us to talk it through.
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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
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Until next time, plan it, do it, and profit.