Hi Reader,

STOP BEING YOUR CLIENTS' FREE BANK — AND MAKE SURE THE MONEY YOU DO EARN ACTUALLY LANDS IN YOUR POCKET.

Last month we mapped out the next 90 days of your cashflow.

This month, we're tightening the other end: getting paid faster, paying yourself smarter, and sorting your books before it becomes someone else's problem.

💷 GET PAID ON TIME — EVERY TIME

The truth is, cashflow kills more young businesses than lack of ideas or effort. And the biggest culprit?

Customers who treat you like an interest-free lender. You can fix this with a simple "get paid" system:

• Put your terms everywhere. Add clear payment terms (e.g. “14 days from invoice date”) to proposals, contracts, and invoices. Get agreement before work starts, not after.
• Invoice the same day. When the work’s delivered, the invoice goes out. Block a weekly “finance hour” to send and chase rather than doing it ad-hoc.
• Automate polite reminders. Set your invoicing tool to nudge a few days before, on the due date, and 7 days after.
• Have an escalation path. Decide now what happens at 14, 30 and 45 days overdue — friendly email, phone call, then a firmer letter and pausing further work.
• Make it easy to pay you. Bank transfer with clear references, card payment link, or direct debit. Remove every excuse.

When you know what's coming in and when, you stop guessing and start making real decisions about hiring, marketing and investment.

🏛️ REGULATION UPDATE: DIVIDEND TAX RISES FROM 6 APRIL

If you’re a limited company director using the classic “small salary, larger dividends” approach, April 2026 is a line in the sand.

From 6 April 2026, dividend tax rates went up by 2 percentage points:

• Basic rate: 8.75% → 10.75%
• Higher rate: 33.75% → 35.75%
• Additional rate: stays at 39.35%

The £500 dividend allowance is frozen, so more of what you take out gets taxed. Add last year’s employer NI jump (13.8% → 15%) and the lower threshold, and the old “low salary, high dividend” strategy may not be optimal for your circumstances anymore.

What to do this month:

1. Block 30–60 minutes to review how you pay yourself (salary, dividends, pension, benefits)
2. Check how the new rates affect your actual take-home, not just the company’s profit number
3. Consider tweaking the mix — slightly higher salary, lower dividends, or more into pension

👉 If you're unsure, this is one of those moments where a quick chat with your accountant is genuinely worth the fee.

UPGRADE YOUR BOOKKEEPING BEFORE IT BECOMES URGENT

Still running your finances on a spreadsheet and a prayer?

April is the time to move to proper digital bookkeeping — before regulations or a tax deadline force your hand.

A simple upgrade plan:

1. Choose a basic cloud tool — look for bank feeds, simple invoicing, and MTD-compatible features
2. Connect your business bank account — let transactions flow in automatically
3. Set up a monthly checklist — reconcile, invoice, chase overdue, review cashflow
4. Use the numbers — answer real questions: Can I afford a hire? How many months of runway do I have?

Think of it as installing a dashboard in your business rather than driving blind.

🤝 GET OUT FROM BEHIND THE LAPTOP

Spring is a great time to talk to other humans who “get it.” In the South East events like the London Startup Network’s monthly meetup at The Gherkin or the SCALE Expo & Summit (22–23 April, Business Design Centre) are worth a look.

But wherever you are in the country make this month the one to get out from behind the laptop.

And your only goal: three to five real conversations, not a pocket full of cards you’ll never look at.

WORTH CHECKING OUT THIS WEEK

We’re curious …

How do you currently pay yourself from your business — and have you reviewed it recently?

Hit reply with a line. We're genuinely interested in what's working (and what's not) for people right now.

We’re here to help you make better business decisions quicker — right from BEFORE day one.

All the best,

Graeme and Neil

Co-founders, Basics of Business (BoB)

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