If you’re running a business in construction, property, or hospitality and trying to borrow some money to help you grow, chances are you’ll hit a wall: the bank says no.

You’re expanding your team, taking on bigger projects, or investing in equipment, and you need funding to do it properly. But when you go to the bank for a loan, they either make it really painfully difficult or just give you a flat out refusal. 

If you’ve been turned down, or suspect it’s coming, don’t worry. There are plenty of ways to get your hands on the cash you need to grow your business.

Here’s how to make your business more attractive to lenders and what to do if they still say no.

Why the banks not playing ball

These days, banks want your accounts to be squeaky clean, they want to see a proper business plan and security for the money you are borrowing and even then they might still say no. It’s not how it used to be when you could just rock up to the bank and walk away with a loan.

If you want half a chance at the bank today, you’ve got to show them a business that’s financially sound, well-managed, and with a bit of cash behind it.

Here’s how to make your business look more appealing to the bank or a lender.

Step 1: Get some cash in the bank

If you want to be considered by lenders, you need to make sure your bank looks healthy. Here’s a few ways to top up your cash reserves:

Liquidate unused assets – Got old equipment collecting dust, or a spare bit of land that could be worth something? These sorts of things can all add-up.

Refinance equipment – If you’ve bought plant or machinery outright, refinancing can release cash. Just remember, it’s still debt so use it wisely.

Remortgage property – Got premises in your name? A remortgage could give you a lump sum. But if it’s tied to your home, tread carefully. It could be risky business with contract delays or the wrong sort of client.

Step 2: Prepare your business for the lender

You might be serious about getting funding, but will the lender take your business seriously? Here’s how to make sure they do:

Up-to-date books – This one is pretty straightforward. Messy books are a big red flag to lenders. Make sure your accounts are well-organised.

Financial analysis – Know your margins. Know your break-even. Know your numbers. It’s not just for the lender. It’s for your own peace of mind too.

Cashflow forecasts – Lenders want to see that you can manage the day-to-day without running dry. Forecast at least 12 months ahead.

Revenue and profit projections – Prove to lenders that you’ve got a plan in place to make more money. Show them what’s coming in, what’s going out, and how it stacks up.

Business plan – A good well-structured business plan is going to be your best bet when it comes to convincing lenders to give you a loan. 

Step 3: Get familiar with guarantors

Sometimes, lenders might ask for a guarantor. If this isn’t you personally, this is basically someone who promises to pay back the loan if you can’t. It’s a big ask, so choose wisely.

It’s worth keeping in mind that guarantors aren’t charities. They’ve got to protect their own interests, so they could ask for some form of security, such as a personal guarantee or even a share in your business. It’s important to be aware of all the potential implications before involving a guarantor in your finances.

Step 4: Alternative funding options

Beyond bank loans, there are other options you could consider for financing your growing business. These are:

Government grants – They’re out there, and some are industry specific. Free money is rare, but it’s certainly worth looking into.

Alternative lenders like Funding Circle – More flexible than traditional banks. Faster decisions, sometimes fewer hoops. I know a few good ones I can recommend, get in touch.

Crowdfunding – Not typical for construction or property, but if you’ve got a community-focused project or niche idea, it’s an option.

Venture Capital or Private Investment – If you’re building a high-growth business, investors might be interested. But they’ll want a piece of the pie and a return. Make sure it’s a deal you’re happy with.

Step 5: Consider a Time to Pay arrangement with HMRC

It’s not one I recommend lightly, but in the right situation, it might be handy.

If you’ve got money set aside for VAT or corporation tax, and you need that cash now, HMRC might agree to a payment plan. It’s not guaranteed, there’s usually interest involved, and they’re not always easy to deal with. But if it helps fund a project that’ll bring in profit, it could be worth it.

Just don’t overdo it. You don’t want HMRC breathing down your neck down the line.

Finding the right finance for your business

There’s no one-size-fits-all when it comes to business finance.

What works for a construction firm won’t suit a hotel chain, or a developer. The finance needs might look similar on the surface, but the finer details are what makes or breaks the deal. And that’s why tailored advice matters.

You need to understand:

• How much funding you actually need

• What it’ll cost you in real terms

• What risks you’re taking on in return

• Which lender or finance option best suits your business

And to be blunt, that’s not something you’ll get from a generic online application or a blog post written for everyone and no one.

I’ve worked with businesses across construction, property and hospitality for decades. I know the difference between short-term cash flow stress and long-term profitable growth. I also know when to tell you a funding option looks good on paper but is going to be a nightmare six months down the line.

If you’re not sure what’s the best route forward, whether the bank’s said no or you’re just weighing up your options, let’s have a proper conversation.

 

Interested to find out more?

Call us on 01617 985789

Or book a meeting at https://calendly.com/d/ckfd-tzk-zbb

Taxman knocking? And not knocking quietly? Here’s how to handle an HMRC investigation:

Ever had that sinking feeling when a brown envelope with ‘HMRC’ stamped on it lands on your doormat?

It’s a similar feeling to how I feel when Man City are 2-0 up at half-time and then the opponents score a hat-trick in the second half. It’s that same stomach sinking feeling.

Now, you know you should open that HMRC envelope. You also know it’s not a surprise tax rebate. Best-case scenario, it’s a change in an employee’s tax code. Worst case? You’re being investigated. That feeling of dread is justified.

So, what do you do if HMRC is on your case and asking uncomfortable questions? I’ve helped clients across the construction, property, and hospitality sectors handle this, and while every case is different, the advice is always the same. Let me take you through it.

Understand why they’re here

Before sending a panicked email that doesn’t make sense, or trying to explain yourself over the phone, stop and try to work out exactly why you’ve attracted HMRC’s attention.

• Missed a filing deadline?
• Submitted inaccurate figures on your tax return?
• Claimed something you shouldn’t have?
• Or is it something more serious?

Once you know, you can start planning your response. Being upfront with me at this stage is key. If you try to brush things under the rug, whether with me or HMRC, it could get messy. And fast.

Maybe you already know why they’re sniffing around. If so, don’t ignore it. Delaying only makes things worse. I’ve seen cases go all the way to court, and believe me, it’s no picnic. Stressful doesn’t even begin to cover it.

Once you know what’s triggered the HMRC investigation, you’re in a stronger position to deal with it properly.

Be cooperative

No one enjoys feeling like they’re being interrogated. But you’ll get nowhere being defensive or evasive.

HMRC inspectors want answers. Give them what they ask for, honestly and promptly. That includes emails, invoices, receipts, payroll info, VAT records, your dog’s birth certificate (wouldn’t be surprised)… anything they’ve requested.

Now, if I can demonstrate that you’ve been fully cooperative, it can actually work in your favour. The more helpful you are, the less friction is involved. As your accountant, If I can show that you have been cooperative, this could reduce any penalties that the tax man wants to make you pay and make it a smoother process.

Seek professional help

If you’re feeling out of your depth, don’t try to wing it. Get someone in your corner who knows how to handle HMRC investigations. That would be me.

As a tax advisor with experience supporting businesses in construction, property, and hospitality, I can help you:

• Understand your obligations
• Prepare the right documents
• Communicate professionally with HMRC
• Avoid making things worse by accident

I can also be your shoulder to lean on when things feel a bit much. Let’s be honest, sometimes you just need someone to reassure you it’s going to be alright.

Pick your accountant carefully. Make sure they’re up to date with current tax regulations (CIS, VAT reverse charge, especially if you’re in construction), and that they’ll actually pick up the phone when you call.

Proactive measures to avoid investigations

Want to avoid HMRC knocking at your door altogether? Simple: stay on top form.

Here’s how:

• Keep proper records – Clean books mean a clean conscience. We want accurate, up-to-date records of income, expenses, payroll, and VAT. That’s the foundation of everything.
• File returns on time – Don’t let Companies House or HMRC fine you for being late. It’s avoidable.
• Pay on time – Not only do late payments rack up interest, they’re a red flag.
• Know the rules – Tax laws change often. Whether it’s Construction Industry Scheme (CIS), Making Tax Digital, or something niche like property VAT, you need to be in the know.

This is where having an accountant that’s switched-on helps. I keep tabs on the latest updates so you don’t have to.

Additional tips:

• Don’t panic. It’s easy to get stressed when you’re being investigated, but staying calm is important. Take a minute to sit down with a cuppa and get rid of any anxiousness you’re feeling. You need a calm head for this stuff.
• Be prepared. Have all your documentation ready before the investigation begins. You don’t want to be flapping around trying to find letters or emails; it won’t look good.
• Don’t make any rash decisions. Just take your time; it’s important to consider all the options that are available to you. Take notes to look back on if necessary.
• Let your accountant take the lead. Wherever possible, let your accountant or a professional deal directly with HMRC on your behalf. They know how to manage the conversation, ask the right questions, and stop things from escalating. It also helps take the pressure off you, and keeps everything more professional and controlled.

By following these tips, you can increase your chances of firstly avoiding a HMRC investigation in the first place and then getting a successful outcome. 

Interested to find out more?

Call us on 01617 985789

Or book a meeting at https://calendly.com/d/ckfd-tzk-zbb

You’ve probably been hearing about Making Tax Digital (MTD) for the past couple of years now. Maybe you’ve buried your head in the sand a bit, hoping it might all blow over. If that’s the case, I’ve got some bad news for you, it hasn’t. It’s not going anywhere and it’s changing the way businesses keep their records and submit tax returns.

There is a but. As a business owner you’ll know what I mean when I say like most things, once you’ve got the right set up, it’s manageable. It’s the same for everything.

In one of my previous articles I’ve gone through everything you need to know about MTD, and what it’ll cost you if you don’t. But this time it’s all about why you need proper MTD-compatible software and what your options are, especially if you’re in construction, property, hospitality, or you’re a self-employed doctor or dentist.

What is Making Tax Digital (MTD)?

Let’s just touch on the basics. MTD is HMRC’s plan to make the UK tax system more efficient and easier for taxpayers to get right.

Basically, no more stuffing receipts in a folder or filling out a spreadsheet once or twice a year. Instead what you’ll need to do is:

• Keep digital records of income and expenses
• Submit quarterly updates to HMRC
• Use MTD-compatible software to do it

MTD for Income Tax Self Assessment (ITSA) is coming in April 2026 for self-employed people and landlords earning over £50,000 a year, and in April 2027 for those earning over £30,000. That’s tomorrow in tax terms.

So, if you’re still manually keying things in at year-end or passing your accountant a wad of receipts, it’s time to upgrade.

Why software matters for MTD

The thing is MTD isn’t just about doing things online. You need to use approved, compatible software that talks to HMRC’s systems.

Take it from me, the sooner you switch, the smoother your tax life becomes.

The right software will:

• Keep your records tidy
• Pull in your bank transactions automatically
• Help you invoice clients and track who owes what
• Remind you about deadlines
• Submit your returns without drama

You can forget about using your personal bank account and hoping for the best. Now you need to get a proper business bank account that feeds directly into your accounting software. It keeps everything clean and makes both your life and mine (and HMRC’s) ten times easier.

My top software recommendations for MTD

Not all software is the same. Some are more complicated than they need to be, some are overpriced and some of them just aren’t fit for purpose.

Here are a couple we regularly recommend to our clients:

FreeAgent – Great for small businesses and free for some:

If you’re with NatWest, Royal Bank of Scotland and others, you may already have FreeAgent included as part of your account. That’s a win.

It’s a solid MTD-compliant platform, with:

• Easy-to-use dashboards
• Automated bank feeds
• Invoicing and expense tracking
• VAT submissions to HMRC
• Mileage and time tracking

Great for small business owners, freelancers, and contractors who want to keep things simple but compliant.

LimeBooks – Budget-friendly, built for MTD:

LimeBooks is a newer option but a great one. It’s low-cost, easy to navigate, and fully HMRC-approved for MTD VAT and Income Tax.

We like it for:

• Clean, no-fuss interface
• Real-time bank feeds
• Quick access to your figures
• Smooth submission process

It’s ideal if you’re self-employed, especially in construction or property where margins are tight and you don’t want to pay for bells and whistles you’ll never use.

If you’re already using something else, it’s not a problem. Maybe you already use software like QuickBooks or some other setups, and that’s fine. We’re not here to force you to switch if what you’ve got works.

The main thing is that it’s MTD-compliant and helps keep your records accurate. If you’re managing your own books and it’s all ticking along nicely, we’ll support that.

I’m no software snob, I’m just here to make sure you’re compliant and not heading towards a nasty fine from HMRC.

Industry-Specific Advice

Whether you’re running a hospitality venue, managing property portfolios, overseeing a building site, or running your own dental practice – MTD applies. The admin might look a bit different, but the rules don’t change.

Construction: You’ll likely need MTD-compatible software that can handle CIS deductions, VAT reverse charges, and project-specific costs. FreeAgent or QuickBooks are good for this.

Property: Landlords need to track rental income, repairs, and mortgage interest. MTD for ITSA will apply from 2026 if your property income is above £50k.

Hospitality: Pubs, restaurants, hotels, you’ve got VAT, tips, staff wages, and stock. Integrated POS systems and a good bookkeeping platform can save you hours.

Self-Employed Doctors/Dentists: You’ve got a mix of NHS and private income, and likely a combination of bank accounts and payment processors. MTD-compliant software brings it all into one place. And keeps you from getting overwhelmed at tax return time.

Get ahead now, not later

Don’t wait for HMRC to send you a reminder. MTD isn’t going away, and the fines for non-compliance won’t be friendly. Trust me.

Set yourself up with:

• A proper business bank account
• MTD-compatible software
• A decent accountant (I’m a good fit) to make sure everything’s running as it should

Not sure which software is best for you? I can talk you through the pros and cons over a brew, help get you set up, and keep you on track all year, not just at tax time.

Interested to find out more?

Call us on 01617 985789

Or book a meeting at https://calendly.com/d/ckfd-tzk-zbb