Frequently Asked Questions

Do you have question? We’re here to help!

Find answers to our most frequently asked questions, quick tips, and advice on all things accounting below.
Can’t find what you are looking for? Get in touch with us directly, the Not Just Numbers team is ready to help! Contact us here.


I have a new employee – what do I need to do?

The employer should complete this form:
Please ask your employee to complete this form:

My employee is off sick - what do I need to do?

If you have any sick leave, please email a copy of the sick note to, and confirm the first full day of sickness and also the actual return to work date, if the employee has now returned to work.

My employee has resigned - what do I need to do?

  • Their last day of service
  • Details of any holiday pay due to employee
  • The number of days/hours holiday to be paid

PAYE Direct Debit

How do I set up a direct debit to HMRC for PAYE:
The system that allows you to pay your PAYE by direct debit is now live.
To set this up, sign into your business tax account, and under PAYE for employers select “set up a Direct Debit”.



We cannot set this up for you, but if you need any assistance with this, please do let us know.
Just to highlight that the payment may be taken from your account after the due date where that falls on a non-working day. HMRC will backdate the payment to the due date, but in the meantime your account may show overdue payments/late payment penalties or interest. HMRC will remove these as long as the direct debit is collected on time. 

Not Just Numbers Training Platform

What is Not Just Numbers training platform?

We have partnered with Mellor Financial Management to develop a training platform that meets the needs of our clients. It’s an interactive, online training platform which can be accessed at any time.
The aim of the platform is to give you confidence when looking at your numbers and to enable you to have more effective conversations about where you are and where you’d like to be!
You can learn at your pace and dip back in any time you need a refresher.

How do I access it?

Access the Not Just Numbers finance training platform on the following link for clients of Not Just Numbers.
Please email for the access code for the platform

Why should I spend time going through the training?

The platform has been built to be interactive and easy to use, so you can fit the training in and around all your other commitments. You can do the training in bite sized chunks (20 minutes here and there) or you can dive right in and complete it all in one go.
Don’t just take our word for how useful the platform is though … please see the following video from the platform’s creator, Martin Mellor.

Director’s Loan Accounts

How does a Director's Loan Account operate?

Put simply, a director’s loan is when you take money from your company that is in excess of:
  • a salary, dividend or expense repayment due to you.
  • money you’ve previously paid into or loaned the company.
It is money that you as Director borrow from your company and will eventually have to repay unless the excess can be covered by a dividend. Bear in mind that a dividend can only be declared if there are sufficient profits after Corporation Tax to support it. Tax planning of when the dividends are declared also must be taken into consideration.
A Director’s loan must be repaid within nine months and one day of the company’s year-end and any unpaid balance at that time will be subject to a 33.75 per cent corporation tax charge (known as S455 tax).
The loan account balance must be shown on the company’s corporation tax return (CT600) and the S455 tax is payable nine months and one day from the end of the relevant accounting period.
Any loan over £10,000 will also be personally taxed and needs to be recorded as a Benefit in Kind.
Tax paid by the company is usually temporary and can be reclaimed from HMRC once the loan has been repaid in full, however, this can be a lengthy process.
The use of a Directors Loan can be helpful in respect of tax planning but needs to be carefully considered.  

Are their consequences to having an overdrawn DLA?


Why does a credit note not appear in the bank reconciliation when I have pushed it through to Xero?

Overpayments and credit notes both need to be paid off to the bank accounts for them to appear in the bank reconciliation.

To do this go into either bills to pay or invoices, click into the credit note to open it up and complete the bottom line of the screenshot below. Enter the date it was refunded and enter the bank account it was paid to in the “paid from” section, then click add refund.

Why can’t I use the “Office Equipment” Code when I have purchased a mouse mat?

Office Equipment is used for Fixed Assets only (as are all the 700 account codes in Xero).

To be classed as a fixed asset it firstly has to be over a certain value (usually over £100.00 for small companies) and secondly it has to be a tool for your job. There are other factors but those are the main two. If you need help or clarification on where to code something in Xero, please do ask.

Why do I need to reconcile my bank on Xero with my statements from the bank when I have a bank feed running?

Unfortunately glitches do sometimes occur in the bank feeds which occasionally result in duplicated transactions or missed items so it is always a good idea to check that the balance in Xero matches the actual statement every month.

What are trivial benefits?

‘Trivial’ benefits are those that:

  • cost the employer £50 or less to provide;
  • are not cash or a cash voucher;
  • are not a reward for work or performance; and
  • the employee is not contractually entitled to
  • Directors of ‘close’ companies

You can’t receive trivial benefits worth more than £300 in a tax year if you’re the director of a ‘close’ company.

A close company is a limited company that’s run by 5 or fewer shareholders.

Remember that ‘Trivial’ benefits in kind provided to employees and directors do not need to be reported on form P11d. 

Can we still be paid £6 a week for working from home?

During the COVID pandemic the government relaxed the conditions to enable those working from home to be paid £6 a week tax free by their employer, or, where that was not paid by the employer, they could claim relief for £6 a week against their employment income for a tax refund from HMRC. Those relaxed rules applied for 2020/21 and 2021/22. Many employers and employees may not be aware that from 6 April 2022 the rules reverted to the strict statutory position. Employees can claim tax relief if they have to work from home under a homeworking agreement, for example because:

  • their job requires them to live far away from the office,
  • their employer does not have an office, or
  • the office is closed every Friday and employees are required to work from home that day.

Tax relief cannot be claimed if the employee chooses to work from home.

What is 0% rated for VAT versus VAT Exempt?

When recording your transactions within Xero it is important to make the distinction between zero rated items and exempt items for VAT purposes. Although neither will have VAT charged on them they are treated very differently for the purpose of the VAT calculation. Not using the correct rate will mean that the figure declared for the value of the purchases (box 7 on your VAT return) will not be accurate.

Goods and services which are categorised as 0% or zero-rated VAT are still taxable goods, but the rate of VAT charged is 0%.

Goods and services that fall into the zero-rated VAT category include:

  • Food (with some exceptions)
  • Advertising services for charities
  • Children’s clothes and footwear
  • Books and newspapers
  • Most travel costs, such as train or air fares (not taxis)
  • VAT exempt goods and services are not taxable, and no VAT can be charged on them.

Goods and services that fall into the exempt VAT category include:

  • Education services
  • Parking
  • All services provided by a post office, such as postage and stamps
  • Insurance and other financial services
  • Bank charges
  • Membership subscriptions to professional bodies

Can I purchase an electric car through my business?

The benefits all depend on the type of finance (and it gets more complex by the week as dealerships bring out new products!) so to keep it simple –

Lease rental – probably the cheapest way of doing it but you don’t own the car. You will put your lease payments through each month and get Corporation Tax relief on the payments. You will be able to claim 50% of the VAT on the lease payments and if you take a maintenance deal, then 100% VAT of the cost of that each month is claimable on that part. You hand the car back at the end of the term and get a new one.

Lease Purchase (Business PCP)  – this is where it gets trickier! The bigger the balloon payment at the end the more HMRC think you will never own it so if you go down this road, keep the balloon payment smaller which will make It more expensive per month, but as with buying the car on Hire Purchase, the car will belong to you at the end of the term so you can offset 100% of the cost of the car against Corporation Tax in year 1. The car will sit on your balance sheet as an asset and the finance outstanding will show as a liability.

Hire Purchase – same tax rules as Lease Purchase but the monthly payments are much higher as you don’t get the balloon payment.

On top of that, the car has to be brand new.

There will be a benefit in kind which must be reported before July each year on a P11d benefits and expenses form. The benefit on a 100% electric car (not hybrid) is currently 2% of list price so if the car is say £40k list price (not what you pay for it but the manufacturers list price) then the benefit in kind would be £800 – so 20% tax on that would be £160 per annum. The company will then have to pay Class 1A National Insurance at 13.8% = £110.40 by 22nd July each year.

You can buy a charging point via the company too and get capital allowances on it.

The best way of claiming for charging is to claim the 9p (as at 1st March 2024) per business mile back from the company. All other running costs and insurance will be paid from the business.

How do I add a VAT only invoice to Xero?

What is the difference between cash and accrual VAT schemes?


What’s a balance sheet and why is it called that?

A balance Sheet is a snapshot of your assets and liabilities on a given date. If you are a limited company then you’ll need to include a balance sheet in the accounts you have to submit annually to Companies House and HMRC.

A balance sheet has two sides that equal each other. One side is the total of your assets minus your liabilities. The other is the equity (shares) in the business plus the profits it has earned up to the balance sheet date.

Is positive cash flow the same as profit?

Quite simply, no. Cash flow is only a way of recording the movement of money. Your business could be making a loss even if it has a positive cash flow. For example, a bank loan boosts your cash flow with extra funds but not your profit. Profit is what’s left after deducting your expenses from your revenue. Business expenses can include things you don’t actually pay for, like the depreciation of assets.

How can I improve my Cashflow?

Ten tips to improve cashflow:

  1. Make sure customers pay you on time

Always invoice customers as soon as a job is complete.  Set out your payment terms, encourage customers to pay early, such as half up front, think about letting customers pay in instalments, offer discounts for prompt payment. Consider conducting credit checks on customers – this could help you avoid bad debts from unpaid bills.

  1. Decide when to pay suppliers

Your suppliers’ payment terms may be flexible and it is always worth asking.  You might be able to negotiate terms that better suit your cash flow. Check whether suppliers offer payments on account, for example, where you settle your outstanding bills at the end of each month.

  1. Cut your running costs

Try and strip out unnecessary expenses, i.e. try using less electricity for lighting or cutting water consumption Driving more efficiently reduces fuel bills and extends the life of vehicles.

  1. Think about your staffing levels

If you have employees, one way to improve cash flow is to review working patterns. Flexible working hours and rotas can help you spread staff costs. If you pay commissions or bonuses to staff, think about restructuring these to support your cashflow.

  1. Raise your prices

Review your pricing structure, especially if your costs have risen. A negative cash flow shows that your expenses are higher than your income – it might be because you aren’t charging enough. Look at areas like your markup on materials and profit margin to see if they need adjusting. Charging more is often the most successful method of how to improve cash flow

  1. Keep an eye on your stock

Too much stock sitting on shelves or in a warehouse is wasted money until it is used. Think about ‘just in time’ stock replenishment, where you only buy stock when you actually need it. Beware of supply delivery delays as they could force you to make more expensive last-minute stock purchases. Buying frequently used stock when you have funds, and before you need it, is a tried and tested way to control your small business cashflow.

  1. Look at your equipment and vehicles

Capital expenditures for assets like equipment, tools and vehicles can be a drain on cash flow The cost of ‘big ticket’ items can be spread over several years by leasing assets Hire purchase contracts also spread the cost and you will still own the asset at the end of the contract.

  1. Think about invoice factoring

Invoice factoring is where you sell your unpaid sales invoices to a company that collects the money. Your business then receives money due on your invoices direct from the factoring company, although you’ll be charged a commission for doing this. Invoice factoring could be a great way to remove the hassle of chasing payments.

  1. Carry out cash flow forecasting

Forecasting when you expect to receive money and pay bills improves cash flow. Identify your sales trends, seasonality for example. Forecasting helps to plan for months when you receive less income. Look at your upcoming expenses and patterns of spending – this can make it easier to have money ready when the bills come in.

  1. Put spare cash into interest-earning accounts

A positive cash flow means you could have surplus money waiting to be used. Put any spare money to work in savings accounts for your business Look at transferring funds to deposit accounts that pay interest, the interest you earn improves your cash flow.


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Not Just Numbers Ltd
5 Carrwood Park
Selby Road
LS15 4LG