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12 things we’ve learned in 12 years

12 things we've learned in 12 years

It’s been 12 years since we started running our own accountancy practice and we’ve learned some lessons along the way. We hope we can inspire other people to launch their own business and we hope, above anything to provide our ongoing support and encouragement to those who wish to be entrepreneurs themselves in 2025. 

 

1) People are everything 

When Murray launched Alexander Knight & Co in 2012, he was swiftly followed into his new practice by some loyal and respected former colleagues who were able to bring their already considerable knowledge, skills and positivity to our new venture. Since then we have assembled a first-class team and it is no exaggeration to say that they are the bedrock of our success so far. Investing in good people is always good for your business.

2) Clients are (also!) everything

One of the biggest things we are proud of is the loyalty of our clients. Many clients have been with us from day one – and we are grateful and thankful for their loyalty. By placing our clients’ needs first – and understanding their mindsets as individual entrepreneurs -we’ve been able to support them and grow with them and we’ve seen their businesses flourish. Look after your clients!

3) Entrepreneurs truly are the backbone of our economy

Despite the seemingly endless attacks on businesses from various Governments down the years and an increasingly cumbersome tax system we know more than most that entrepreneurs are the real superstars of the economy. We will continue to promote their best interests and always advocate to make it easier to do business in the UK.

4) You have to take some risks to get rewards

Taking risks is essential for entrepreneurs because success often lies in seizing new opportunities. Without taking risks you might end up missing out on the rewards that can follow. Not every risk you take will pay off but you’ll be proud of the ones that do – and you’ll learn from the ones that don’t.

5) Every business has ups and downs

Changes in the economy, changes in personnel, changes in technology, fierce competition are just a handful of the many reasons why every business has challenging times. Everybody that runs a business will agree that it’s not all plain sailing. Stick with it and be resilient!

6) Consider the wider community

Not only are small, medium and large companies creating jobs but they are also investing in their community, raising funds for charities and doing their best to help the environment. Many firms now (just like us) have a formal ESG policy in place and even though the economy is challenging, all these businesses (and our clients) put a huge amount of effort into helping others. It’s a side of business that not everyone sees.

7) Trusted relationships are key to growth

We’ve got many trusted relationships locally, nationally and globally which help us grow, develop and support our business. It’s really important to maintain trust with your clients, customers and professional network. Keep doing a good job time after time!

8) Work/life balance is essential

Life as a business owner can be stressful at times. Taking care of your mental and physical health is really important. Not only do you need to be fit and healthy to run the business effectively you also need to balance work with family life and other hobbies and pursuits. You will be a much more effective business owner if you’re not just all ‘work, work, work’!

9) Office environment is important

When we first launched, our office was perfectly suited to a small team but we always had ambitions to secure some premises that better suited our people, culture and clients. Moving to Grade A office space with room to grow in the heart of Hale in 2018 was a great move for us. Moving location can be a really positive step in your business if you get it right.

10) Branding, PR and marketing are vital

Being able to differentiate our brand from other accountants from day one has been really valuable as we’ve developed our business. We have always strived to make sure we retain a distinct and consistent identity so that we’re memorable and stand out in a crowded market. Investing in your brand is hugely important for your business success.

11)  Take advice, advice and more advice

Taking advice from those you trust and respect including your friends and family is essential to get a rounded perspective on your business. You can never assume to have all the answers and you can always learn from someone else.

12) Enjoy it!

Running a business is a thrilling thing to do and if you run one, you’ll probably never want to go back and work for anyone else again. Enjoy it!

Murray Patt

 

 

“Setting up on my own was one of the best business decisions I’ve ever made. Drawing on my own experience as a business owner is really valuable when supporting our entrepreneurial clients. I would wholeheartedly encourage anyone to take the leap!” 

 

 

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Coffee with Murray Patt…

We went to lively Altrincham-based California, the gourmet coffee shop on Oxford Road. The familiar clink of cups and the morning buzz are all around as we settled down with Murray to discuss the Chancellor’s latest Budget…

 

Q: Murray, is this one of your ‘go-to places’ then?

Murray: There’s plenty of choice in Altrincham and Hale and this is certainly high on our list as a decent place to have a coffee with clients, contacts or just to come along and think about business.

In my experience, they serve decent freshly roasted coffee and have an excellent brunch menu using locally sourced ingredients.

Q: Murray, let’s talk about the latest Budget. It seems like it’s packed with changes for business owners. What’s your overall take?

Murray: Absolutely. A lot of what we’d heard whispers about actually made it through – especially the increased national insurance contributions expected from businesses. It’s clear the Chancellor is looking to bridge the funding gap that exists, and this Budget seems to expect SMEs to contribute a fair bit more to support future investments. It’s going to be tough for many.

Q: Let’s talk NIC first. What are the main changes there?

Murray: Definitely an area to get on top of if you run a business. Starting in April 2025, Employers’ National Insurance Contributions (NIC) will go up to 15%. Plus, the threshold at which you start paying Employers’ NIC is dropping from £9,100 to £5,000, meaning a lot more of your employees’ earnings will be subject to NIC.

On the plus side, they’ve raised the Employment Allowance to £10,500, which should ease the burden for smaller businesses. But overall, for most SMEs, this NIC change is going to hit hard – higher contributions on a lower threshold means increased outgoings, just when everyone’s trying to keep costs down.

Q: And on top of that, there’s an increase in minimum wages?

Murray: Yes, both the National Living Wage and the National Minimum Wage are rising. It’s good news for employees, but it adds more financial pressure on employers. Many SMEs, which are already stretched, are going to feel this acutely, especially those in sectors like retail and hospitality. With rising wages and NIC changes, it’s a one-two punch for a lot of small business owners.

Q: What about entrepreneurs thinking of exiting their businesses? Are there any changes there?

Murray: There is indeed a window of opportunity to consider. The Business Asset Disposal Relief (BADR) rates are going up next April, so entrepreneurs considering an exit should note this. Until the 5th of April 2025, BADR rates remain at 10% although the standard rate of capital gains tax has increased from 20% to 24%. From 5th April 2024 the BADR rate increases to 14%, with a further increase to 18% for the 2026-27 tax year. I expect to see a rise in business sales as people aim to secure the current lower rates.

If you’re planning to exit soon, it might be worth accelerating those plans to lock in the better tax treatment while you can. But of course, careful planning here is essential and this is where our team can help.

Q: And I hear pensions are also being impacted? What’s the story there?

Murray: That’s right – this is a big one. The Chancellor has introduced an Inheritance Tax (IHT) on pension death benefits. So, if pension benefits are passed into an estate, they’ll be subject to IHT, which could significantly impact retirement and estate planning. Pensions were often seen as a tax-efficient way to pass on wealth, but this change means you may need to rethink that strategy.

It’s a complex area, and it’ll be crucial to look at how you’re structuring your pension and estate plans moving forward. We work with a range of financial advisers and can point people in the right direction for specific advice in this regard.

Q: With all these changes, any last thoughts for entrepreneurs and small business owners?

Murray: The key takeaway is that proactive planning will be more important than ever. The NIC and wage changes mean that managing cash flow and costs is going to be a big focus.

If you’re thinking of selling a business or planning for retirement, this Budget brings in some time-sensitive considerations. It’s worth sitting down with us to navigate the changes and make the most of any remaining opportunities – like the current BADR rates – before they disappear.

Navigating the latest Budget will be challenging for many business owners, but with the right planning, businesses can weather the changes and keep moving forward and our team is ready to guide our clients.

 

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Are electric cars for directors of limited companies worth it?

Time to go electric? 

Company cars have historically been deeply unfashionable. Before electric cars, most company directors and employees found that they were better off buying a car personally and then claiming the associated expenses.

Concern for the environment was the reason why a more punitive tax regime was introduced. Tax was tethered to the value of the car and its CO2 emissions.

However, with car manufacturers introducing more varieties of electric vehicle, at different price-points, could the trend be turning full-circle?

Improvements in electric vehicles (EVs) has reignited the debate on company cars, and whilst there are tax changes for 2025-26, an electric company car may be a great solution.

New tax legislation for electric company cars in 2025-26:

  • Benefit-in-Kind (BIK) tax for pure electric vehicles remains highly favourable. In 2025-26, drivers of pure electric company cars will benefit from a very modest 3% BIK tax rate
  • Hybrid vehicles with CO2 emissions between 1-50g/km and an electric range of over 70-129 miles will see a 6% BIK rate for 2025/26. This could be an interesting option for those company car drivers who do not wish to completely walk-away from either petrol or diesel.
  • For other hybrid vehicles the BIK tax rates vary depending on their specific emission levels and electric ranges.
  • For 2026, the BIK rates for pure electric vehicles will rise incrementally by 1% each year, reaching 5% in 2027/28. Hybrid vehicles will also see a similar increase in BIK rates. Despite these increases, electric & hybrid vehicles will remain a highly tax-efficient choice compared to their petrol or diesel counterparts.
  • Road tax is to be payable on electric & hybrid vehicles from 2025 onwards. Whilst rates are still to be confirmed they will be from £190 per annum.
  • Charging infrastructure. 100% first-year capital allowances for installing charging points is available until 2025, although this tax relief may be extended. This makes it easier for companies to support their employees’ shift to electric driving.

Renaissance of the company car?

With these tax advantages in place a continued rise in the demand for electric & hybrid vehicles in the business world is likely. More socially responsible fleet managers may see this as an opportunity to electrify their fleets, contributing to their sustainability goals while taking advantage of significant tax savings.

As the UK accelerates its shift towards electric mobility, with more charging points being installed across the country and continued improvements in the range and affordability of electric vehicles, we could see a true renaissance of the company car.

For a review of your company car tax status or that of your existing fleet, call us on (0161) 980 8788 or email murray@alexanderknightaccountants.co.uk 

 

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Are you braced for the impact of tax rises?

As concerns grow about imminent tax rises, Murray Patt of Hale-based accountants Alexander Knight & Co, takes a look at possible areas that could be targeted by Rachel Reeves  (the Chancellor) and the ‘new’ Government.

As children return to school for the new term there are plenty of parents worried about the impact of VAT on future school fees. Recently the Chancellor confirmed that this 20% levy will be introduced, together with legislation to prevent those looking to pay early and avoid the levy, as the Government seeks to implement a key manifesto pledge.

Even those not affected by VAT on private school fees are anxious about the prospect of handing more money over to the taxman from elsewhere.

It’s no secret that changes have been promised and are actively being planned but the key question is exactly where will they seek to raise revenue? Here are some possible areas:

  • Removal of tax breaks

The removal of certain tax breaks looks increasingly likely. Politically, it is a safer move than simply hiking up existing taxes. We are keeping a close eye on what is commonly referred to as ‘business asset disposal relief’ (formerly known as ‘entrepreneurs’ relief’) which reduces the rate of capital gains tax on disposals of businesses or business assets from 20% to 10%. Another area under threat could be Research and Development (R&D) tax credits which have been helpful for innovative companies over the past few years.

  • Freezing of thresholds

The freezing of tax thresholds means that people will pay more tax.

Simply put, earning more money tips you into a higher tax band and a higher income means a higher proportion that can be taxed.

  • Introduction of additional income tax thresholds

The Government may consider introducing an additional rate of income tax, perhaps on earnings over £250,000. Currently this is taxed at 45%.

  • More tax for landlords?

The sale of property by landlords could possibly be targeted as a revenue stream. Landlords with buy-to-let portfolios are already offloading stock at record levels as they seek to minimise the risk to their investments.

  • Inheritance Tax

This hugely unpopular tax for swathes of the population doesn’t look like disappearing. In fact, there is likely to be significant reform in this area which will presumably be aimed at raising tax revenues not reducing them.

  • Firmer enforcement

Labour has already pledged to provide HMRC with 5,000 more staff to help reduce what it calls the ‘tax gap’. We already expect to see compliance enforcement activity increased over the next five years with SME’s targeted first, much to the frustration of business owners.

As the rumour mill continues to swirl, we are ruling out nothing.  We will support our clients to limit the amount of tax they pay whilst being compliant with ever changing legislation in every way we can.

If you run a business and want to make sure you are optimising all the available tax reliefs and need support navigating future tax rises contact Murray Patt on (0161) 980 8788 or email murray@alexanderknightacccountants.co.uk

 

 

 

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Two new recruits for Alexander Knight & Co.

We’d like to say a huge welcome to Jack Wareham and Jacqui Reece who have now joined our team! We are delighted they have joined our office in Hale as we continue to recruit talented people to our growing team. 

Jack is a recent graduate with a First Class Honours Degree in Accounting & Finance from University of Liverpool and joins colleagues in our Audit and Accounts team. Jacqui is an experienced payroll professional and will be supporting our clients with their requirements. You can read more about them on our team page here.

Murray Patt, founder of Alexander Knight & Co, said:

We are delighted to be growing our team with the addition of two fantastic professionals. Both of our new colleagues have already made a positive impact on our team and our clients and we are looking forward to supporting them both in their careers at Alexander Knight & Co.

 

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IDT appoints Alexander Knight & Co as accountants

We are delighted to welcome aboard Warrington-based IDT Support Solutions Ltd (IDT) as a new client.

IDT offers flexible IT support, efficient IT project delivery with expert consultation and solutions. They can act as a client’s IT department or supplement an existing IT function. In both cases, they aim to create long-term partnerships that add value through a combination of high-quality day to day support and well-considered strategic advice.

At Alexander Knight & Co we use them as our IT department, having worked with them for a number of years.

IDT was founded in 1997 by Colin Hepplestone, who is still heavily involved in day to day matters and the strategic direction of the business.

The firm has grown progressively from two people to an established team with big ideas.

Colin Hepplestone, managing director of IDT, said:

“We are delighted to appoint Alexander Knight & Co as our new accountants. We are impressed with their track record of working with information technology companies like ourselves and the fact they share our growth oriented and client focused approach to business.”

 

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Congratulations to Alexander Knight & Co colleagues!

Alastair Tough and Jack Crowther of Alexander Knight & Co accountants in Hale

We are delighted to share the news that our colleagues Jack Crowther and Alastair Tough have both passed their final ACA exams and are now qualified Chartered Accountants.

This means they have demonstrated the skills and expertise required in exams and practical work over a sustained period and have been approved by our industry regulatory body, the ICAEW, to practice as Chartered Accountants.

Both colleagues have been with us since the very start of their professional training. Jack joined us straight from his A-levels as an apprentice and Alastair arrived following his degree from the University of Warwick.

Since then, we have been pleased to support and fund them in gaining their professional qualifications which has enabled them to flourish in their career at Alexander Knight & Co and undertake first class work for our client base of business owners and entrepreneurs.

Alison Spier, who oversees HR and training at Alexander Knight & Co, said:

“We are delighted with Jack and Alastair’s achievements and proud to have supported them every step of the way. We are committed to developing the next generation of accountancy talent and we continue to invest in our team and our clients.

“We’d like to congratulate Jack and Alastair on achieving ACA status and we are confident they will continue to develop as leading accountancy professionals here at Alexander Knight & Co.”

 

Murray Patt, founder of Alexander Knight & Co, added:

“It is extremely pleasing to see two colleagues get recognised in this way and approved by the ICAEW. Accountancy qualifications in England & Wales are the most prestigious in the world and we are proud of their work and will continue to support them here as we develop and grow our practice.”

 

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Alexander Knight & Co attends the MGI Europe 2024 Conference in Warsaw.

MGI Worldwide Conference 2024 in Warsaw Poland

We were delighted to attend the recent MGI Europe 2024 Conference held in Warsaw, Poland.

This year’s European Conference attracted 73 delegates from 48 European firms, including participants from the UK, China, and Mauritius. 

Building on the success of previous events, the conference offered a dynamic mix of knowledge-sharing sessions and exciting social activities, both indoors and outdoors.

The agenda placed a strong emphasis on nurturing employee well-being and fostering a positive and supportive workplace culture.

We also heard from Poland’s former Finance Minister and Deputy Prime Minister, on economic and political developments , and as usual, there were also lots of interesting social activities with plenty of opportunities for networking and chatting with fellow members.

In a fun twist, six teams of delegates competed in a scavenger hunt through Warsaw’s charming old town, culminating in a delightful evening of Chopin’s piano music and a tasting of Polish cuisine and vodka.

Can you spot Murray Patt?

WATCH the video produced about the Conference featuring Murray Patt:

MGI Worldwide is a top 20 ranked global accounting network and association with over 8,000 professionals, accountants and tax experts in some 400 locations in almost 100 countries around the world.

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Two Alexander Knight & Co clients achieve prestigious ‘Sunday Times Hundred 2024’ status

Alexander Knight & Co is thrilled to see that two of our clients, Think Hire and Open Communication Partners, have been recognised among the top 100 fastest growing companies in the UK by The Sunday Times.

This achievement highlights our commitment to supporting fast-growing, ambitious businesses and cements our reputation as the advisors of choice for entrepreneurs.

We are proud that of only 7 companies from Greater Manchester who made the top 100 list of the Sunday Times Hundred 2024  – two of them are clients of our practice.

Think Hire

Think Hire, based in Oldham, secured the impressive 30th position on the full list with a growth rate of 130.17 percent. Their innovative solutions and dedication to excellence have propelled them to new heights in the industry. We have had the pleasure of working closely with Think Hire, providing the financial and strategic accountancy guidance necessary to support their rapid expansion as it looks to build on its turnover of £6.5m.

Open Communication Partners 

Open Communication Partners, headquartered in Manchester, claimed the 33rd spot on the full list with a remarkable growth rate of 124.41 percent. Its commitment to delivering top-notch communication, data and marketing solutions has set them apart in a competitive market. We are proud to have played a part in the journey, offering expert advice and accountancy services tailored to their needs as the company continues to evolve and build upon its latest reported turnover of £29.5m.

Accountants for entrepreneurs

The inclusion of our clients Think Hire and Open Communication Partners in The Sunday Times Hundred 2024 is certainly a testament to the hard work and dedication of their management teams and their people. It also underscores the value of our partnership with them.

At Alexander Knight & Co, we are dedicated to helping businesses achieve their full potential through our comprehensive accounting and advisory services.

Murray Patt, founder of Alexander Knight & Co, said:

“We are incredibly proud of Think Hire and Open Communication Partners for their outstanding growth and success. Their inclusion in The Sunday Times Hundred 2024 is a well-deserved recognition of their hard work and innovation. At Alexander Knight & Co, we strive to provide the best possible support for our clients, and it’s hugely gratifying to see their success stories unfold.”

Looking ahead

As we celebrate the success of Think Hire and Open Communication Partners, we remain committed to fostering the growth of all our clients.

Our goal is to continue being the trusted advisors for fast-growing, ambitious companies across the UK. We believe that with the right guidance and support, there are no limits to what our clients can achieve.

Congratulations to Think Hire and Open Communication Partners, and here’s to many more years of shared success and growth!

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Collaboration is key

Alexander Knight & Co is a member of MGI Worldwide, a Top 20 international accounting network of independent audit, accounting, tax, legal, and consulting firms, which brings together the expertise of over 8,000 professionals in some 400 locations around the world.

Our membership enables us to keep abreast of important new developments, while providing a seamless international service to any of our clients looking for support abroad.

Joining the network has undoubtedly bolstered our international trade links and has enabled us to collaborate with accountancy firms in other jurisdictions.

Multiple companies headquartered in Canada, Sweden, USA, Germany, Holland, Greece, Denmark, Switzerland, Malaysia and Singapore have appointed our team to support them with a number of specialist services that we provide including Audit, Tax and Advisory.

Our UK-based practice has even picked up an award for our work relating to the clients of MGI Worldwide members. At the 2023 MGI UK & Ireland conference for partners & managers, which was held recently in Edinburgh, Scotland our team collected the award for ‘International Client Experience of the Year 2023’.

We were very pleased to have developed our international links and delighted to have won this award. It’s great recognition for our staff who are providing a fantastic service for our clients headquartered in the UK and abroad.

Case study

A good example of international collaboration is our positive relationship with fellow MGI Worldwide member Revideco AB based in Sweden.

Its team reached out to us to assist one of their clients who needed some UK specific advice relating to a subsidiary in England. The Revideco team has offices in Stockholm, Skellefteå, Sundsvall and Göteborg. Revideco are authorised accountants and auditors and have provided accounting, audit and consultancy services in Sweden since 1994.  

As a result of the introduction by partners at Revideco we were able to assist a Cheshire-based company which manufactures and retails all-natural supplements for dogs, in its annual Audit requirements. We were delighted to have been appointed by the client to undertake this activity and we are pleased that the relationship has developed positively.

“We are pleased with the relationship we have created with Alexander Knight & Co in the United Kingdom and it is pleasing to see that through our membership of MGI Worldwide we are able to identify high quality collaboration partners who can assist our clients with UK accountancy requirements.”
Antti Niemi
Partner, Revideco AB
"We are delighted to have been referred by our MGI Worldwide colleagues in Sweden. It’s a really good example of how likeminded accountants from different jurisdictions can operate effectively and develop strong and trusted relationships through the association. We would like to thank the Revideco team. We are looking forward to developing our professional relationship even more in 2024 and beyond."
Murray Patt of Alexander Knight & Co.
Murray Patt
Founder, Alexander Knight & Co
"Alexander Knight & Co shows the true value of being part of the MGI Worldwide global network. Clients want a ‘safe pair of hands’ they can trust and access as needed, wherever they choose to do business. This collaboration is a prime example of how two firms can work together seamlessly, providing high-quality support and advice to international clients in the UK."
Maxine Brock
Chief Marketing Officer, MGI Worldwide

TALK TO US ABOUT OUR INTERNATIONAL ACCOUNTANCY WORK

If you are an international company that operates subsidiary companies in the UK we are perfectly placed to advise on accounting, tax and advisory work that is required to be undertaken.
Contact Murray Patt now
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