008 HOW TO RUN YOUR BUSINESS WITHOUT HEADACHES. TIPS ON TAX PLANNING, FINANCIAL STATEMENTS & STRATEGY

In this episode, LCH/WEALTH talks to Heather Darnell about running your business without the headaches. How to plan for tax, how to understand business statements, cash flow tips, scaling your business, as well as common business mistakes explained.

Heather is Founder and Finance Director at ASK THE BOSS. She has over two decades worth of experience as the external finance director of dozens of companies in various industries, from skincare wholesalers to commercial real estate to ground breaking technology companies.
https://www.ask-the-boss.co.uk/heather-darnell/

Lisa Conway-Hughes is a Chartered Financial Adviser, a Fellow of the Personal Finance Society and founder of LCH/WEALTH. Lisa regularly posts financial information, education and updates on her hugely popular Instagram account:
https://www.instagram.com/misslollymoney/

Book a one to one Financial Diagnosis with LCH/WEALTH here:
https://lchwealth.co.uk/lch_wealth_services/one-to-one-financial-diagnosis/

This content is to be used for information and educational purposes only and nothing contained in it is or is intended to be construed as individual financial advice. Financial advice must only be given on an individual basis. If you require legal advice, financial advice or any other expert assistance, you should seek the services of a competent and qualified professional.

Show Transcript

Transcript: Business Success, Tax Tips, and Scaling with Confidence
Featuring: Lisa Conway-Hughes and Heather Darnell

Lisa Conway-Hughes:
Welcome to today’s episode. It’s all about business success. So whether you’re just starting out or already established, this one’s for you. I’m talking to one of the UK’s top experts on how to take the headache out of your business, plan cash flow effectively, and scale sustainably.

Lisa Conway-Hughes:
Today’s guest is the brilliant Heather Darnell. Welcome, Heather.

Heather Darnell:
Thank you. A little intro – I’ve worked across the US and UK in operations, finance, and IT. I’ve been a Finance Director since 2003 and have worked across real estate, skincare, tech firms, and most recently with two of the UK’s top 20 startups.

Lisa Conway-Hughes:
Let’s start with the basics. What are the key dates to mark in the calendar for taxes?

Heather Darnell:
Every company is different. If you’re a sole trader, it’s simpler – your tax year is the same as your personal one. You need to file by 31 January and make payments then and again on 31 July.

Lisa Conway-Hughes:
That July payment always catches people out.

Heather Darnell:
Yes, that “payment on account” surprises many because it’s based on future earnings you haven’t even received yet. In your first year, you don’t pay tax for ages, and then come 31 January, you get clobbered. You pay for your first year and 50% upfront for the next.

Lisa Conway-Hughes:
I always save based on total income, not just profit, to be safe – though it makes me feel quite tight!

Heather Darnell:
That’s smart, especially if you’re a spender. Saving more than you need is safer than coming up short.

Lisa Conway-Hughes:
And if you’ve got a limited company?

Heather Darnell:
Very different story. You can choose any year-end, but nine months after your financial year-end, you must pay corporation tax – even though you don’t file your return until 12 months after.

Lisa Conway-Hughes:
March year-end sounds risky with taxes due at Christmas.

Heather Darnell:
Exactly. March ends mean you’re paying corporation tax at Christmas and personal tax in January – not ideal.

Lisa Conway-Hughes:
What are the common mistakes you see people make?

Heather Darnell:
Two types: overly cautious and overly confident. Cautious people tend to undercharge and over-service. It becomes hard to raise prices later. Confident ones overestimate sales and overspend early – thinking they’ll grab 1% of the market. Don’t plan for unrealistic growth or lease huge offices you don’t need yet.

Lisa Conway-Hughes:
I’ve noticed overly cautious business owners hoard cash, while overly confident ones have no financial planning.

Heather Darnell:
Exactly. No plan puts you under pressure. Many end up boom-and-bust over the years.

Lisa Conway-Hughes:
Let’s talk about financial statements. How do you read them?

Heather Darnell:
There are three main ones:

Cash Flow Statement – Easy to read but doesn’t tell you what to save for tax.
Profit & Loss Statement – Useful, especially with corporation tax accruals.
Balance Sheet – Harder but essential.

I recommend grouping short-term assets and liabilities together. Think of it as your acid test – will you survive the next few months? It also helps you understand what cash is truly “free.”

Lisa Conway-Hughes:
I spend an hour on Mondays reviewing numbers and 15 minutes on Fridays reflecting. It helps me feel in control.

Heather Darnell:
That’s great. As your understanding grows, you’ll adapt your categories and learn more. I do five minutes a day – keeps me close to the numbers.

Lisa Conway-Hughes:
How should we take money out of the business in the most tax-efficient way?

Heather Darnell:
If you’re earning under £100,000 personally:

Small salary (~£12,000)
Rest in dividends
Maximise pension contributions

It’s brilliant for both corporation tax and long-term personal tax.

Lisa Conway-Hughes:
And if you’re earning more?

Heather Darnell:
Don’t just creep over £100k – go big. That 100–125k bracket is brutal. If you go over, go over in a meaningful way. A smart accountant might suggest taking a larger amount out every few years instead.

Lisa Conway-Hughes:
What if we’ve got excess company cash?

Heather Darnell:
Put it to work. Open investment accounts, use savings platforms like Wise or even services that automatically move money to get the best rates. This year we made £90,000 in passive income just by moving excess cash.

Lisa Conway-Hughes:
That’s incredible. What about scaling – how do we plan for those scary big jumps?

Heather Darnell:
Growth isn’t always linear. Big jumps happen when you hire more people or change your pricing or business model. Step back and re-evaluate your model. Are you scalable through people or tech?

Lisa Conway-Hughes:
And how do people step back when they’re in the thick of it?

Heather Darnell:
There are four main ways:

Trusted advisor – accountant, IFA, etc.
Peer group – fellow business owners you meet regularly.
Strategy days or business coaching.
Or if you’re very disciplined – go solo (rare!).

Lisa Conway-Hughes:
Heather, your books are often full, but if someone wants to work with you, how can they get in touch?

Heather Darnell:
My incredible Practice Manager, Antonia, is your first point of contact. She’s brilliant at matching people with the right accountant, even if it’s not us. You can: