Clear answers to the questions we get asked every day. 

Clear answers to the questions we get asked every day. 

Got questions? You’re not alone. 
 
We’ve pulled together answers to the things businesses, sole traders, landlords and charities ask us most often — in simple, jargon‑free language. 
 
If you can’t find what you’re looking for, just get in touch. We’re always happy to help. 

Starting & Running a Business 

Starting & Running a Business 

Strictly speaking, no — you’re not legally required to have an accountant. But most small businesses choose to work with one because it saves time, reduces stress and helps avoid costly mistakes.  
 
We help you stay compliant, understand your numbers and make better decisions, instead of worrying about HMRC. 
 
You must register for VAT if your taxable turnover goes over £90,000 in any rolling 12‑month period (not the tax year). 
 
Just total up all your VAT‑able sales from the last 12 months — if that number passes £90,000, you need to register. 
 
You must also register if you expect to go over the threshold in the next 30 days. 
 
If you’re unsure, we can check this for you and monitor it going forward so there are no surprises or penalties. 
It depends on your income, risk, industry and future plans. Sole trader is simpler to start with, but a limited company can be more tax‑efficient and offer limited liability.  
We’ll look at your situation, explain the pros and cons in plain English, and help you choose what’s right for you.. 
 
As a general rule, you can usually claim costs that are “wholly and exclusively” for business purposes — things like travel, tools, some home office costs, professional fees and software.  
 
The exact list depends on your setup and industry, which is why tailored advice helps. 
 
Being self‑employed describes how you work. 
Being a sole trader describes your legal business structure. 
Here’s the simple version: 
 
If you work for yourself and not for an employer → you are self‑employed. 
If you run your business in your own name (not as a limited company) → you are a sole trader. 
 
Most self‑employed people are sole traders, but you can also be: 
 
self‑employed and a partner in a partnership 
self‑employed and a landlord 
self‑employed and running multiple small ventures 
self‑employed as a subcontractor under CIS 
 
What really matters is choosing the structure that suits you best — and that’s something we can help with. 

For Companies 

For Companies 

Most directors take a mix of a small salary and dividends for tax efficiency. 
The ideal amount depends on factors like: 
 
your profits 
personal tax position 
whether you have other income 
whether you want to qualify for state benefits 
 
We’ll explain the best structure for your situation and make sure you stay fully compliant. 
 
A confirmation statement is a legal filing you must submit to Companies House once a year. 
It confirms your company details are correct, including: 
 
directors 
shareholders 
share structure 
registered address 
 
It’s separate from your accounts and tax return — and yes, you must file it every year. 
We can complete and submit it for you. 
 
Allowable expenses are costs that are wholly and exclusively for business use. 
Common examples include: 
 
software and subscriptions 
travel (not commuting) 
professional fees 
phone/internet 
marketing 
equipment 
staff costs 
 
We’ll help you understand exactly what you can and can’t claim so you don’t miss out — or get caught out. 
 
our annual accounts are usually due 9 months after your company’s financial year end. 
For example: 
 
Year end: 31 March 2026 
Accounts due: 31 December 2026 
 
Don’t worry — we track all your deadlines and remind you well in advance so you never miss a submission. 
Corporation Tax is due 9 months and 1 day after the end of your accounting period. 
 
So if your year end is 31 December, the tax is due 1 October the following year. 
 
We prepare your Corporation Tax return (CT600), calculate what you owe and explain everything clearly — no jargon, no panic. 

For Self-Employed 

For Self-Employed 

 
You need to register with HMRC as soon as your self‑employed income goes over £1,000 in a tax year. 
 
Registration is quick and simple — and if you’re unsure what to do, we can guide you through the process. 
 
Payment on Account (POA) is HMRC’s way of getting you to pay next year’s tax in advance — but only if you owe more than £1,000 in tax this year. 
You make two payments towards next year’s tax bill: 
 
31 January (first half) 
31 July (second half) 
 
Then the following January, you pay or reclaim the difference depending on your actual tax owed. 
✔ In simple terms: 
You pay this year’s tax and part of next year’s tax at the same time. 
✔ Why does it happen? 
Because HMRC assumes your income will be similar next year. 
✔ Why does it shock people? 
Because your first year doing Self Assessment means you pay: 
 
last year's tax 
plus 
next year’s tax in advance 
 
…which can feel like a double tax bill. 
✔ Good news? 
We’ll calculate your payments, explain what you owe, and tell you when each payment is due so you’re never caught off guard again. 
 
A good rule of thumb is to set aside 20–30% of your income, depending on your profits and whether you pay Class 2/4 National Insurance. 
 
If you want a clearer amount, we can look at your numbers and tell you exactly what to set aside — so there are no surprises at tax time. 
 
Self‑employed people pay National Insurance through their tax return, not monthly like employees do. 
There are two types you might pay: 
 
✔ Class 2 NI 
A small, flat weekly charge (paid annually through Self Assessment). 
This gives you access to: 
 
State Pension 
Maternity allowance 
Other state benefits 
 
You only pay Class 2 if your profits are above a certain threshold (changes yearly). 
 
✔ Class 4 NI 
A percentage of your profits above certain thresholds. 
You pay this automatically as part of your January tax bill. 
 
✔ How to pay 
Both Class 2 and Class 4 NI are included in your final Self Assessment calculation. 
HMRC adds them to your tax bill, and you pay them together. 
You don’t need to set up a separate NI payment. 
 
Once your tax return has been submitted, HMRC usually issues refunds within 5–10 working days, but it can take longer depending on their workload. 
Here’s how to check the status: 
 
✔ 1. Log in to your HMRC online account 
Go to Government Gateway → Self Assessment → View your return/bill. 
If a refund has been issued, it will show as: 
 
“Repayment issued” 
“Pending” 
or “Processing” 
 
Refund delays are common — don’t panic. We’ll help you find out exactly where things stand. 

For Landlords 

For Landlords 

 
You can usually claim any costs that are wholly and exclusively for running and maintaining your rental property. 
Common allowable expenses include: 
 
letting agent fees 
repairs and maintenance 
insurance 
accountancy fees 
cleaning and gardening 
advertising for tenants 
gas/electric safety certificates 
travel related to the property 
 
Some costs — like mortgage interest — have special rules, so it’s important to get the details right. 
We can help you understand exactly what you can (and can’t) claim based on your property. 
 
Since April 2020, landlords can no longer deduct mortgage interest and other finance costs (like loans or overdrafts) from their rental income to reduce their taxable profit. 
Instead, mortgage interest is now treated differently: 
 
✔ 1. You can’t offset mortgage interest as an expense 
You must declare your full rental income, without deducting interest. 
 
✔ 2. You get a 20% tax credit instead 
HMRC gives you a 20% tax credit based on your mortgage interest. 
This means: 
 
Basic rate taxpayers are usually unaffected 
Higher and additional rate taxpayers may pay more tax 
Your taxable income may look higher even though your real profit hasn’t changed 
 
(This is why so many landlords find their tax bill unexpectedly higher.) 
 
✔ 3. What counts as “finance costs”? 
 
mortgage interest 
loans to buy furnishings 
overdrafts 
some arrangement fees 
some remortgage costs 
 
All of these now use the 20% tax credit system. 
 
You’re not legally required to have an accountant — even if you have a rental property. 
But many landlords choose to work with one because the tax rules for property can be surprisingly complicated. 
 
Even with just one property, you still need to: 
 
report rental income correctly 
understand which expenses you can and can’t claim 
apply the restricted mortgage interest rules 
keep proper records 
file a yearly Self Assessment 
prepare for MTD ITSA if you’re over the threshold 
 
If you’d like help with your rental income, we’re here to make everything feel much easier. 

For Charities and Not for Profit 

For Charities and Not for Profit 

Most smaller charities do not need a full audit. 
You usually need an Independent Examination if: 
 
your income is over £25,000, and 
you’re below the audit threshold (normally £1,000,000) 
 
Some charities also need one if: 
 
their governing document requires it, or 
funders request it. 
 
If you're unsure, we can check your income, structure and reporting obligations and tell you exactly what’s required. 
 
You should keep: 
 
bank statements 
receipts and invoices 
donation and grant records 
payroll records 
committee/board meeting minutes 
documents for restricted funds 
contracts, agreements or grant conditions 
 
We’ll help you create a simple system so this never feels overwhelming. 
 
Deadlines depend on your structure: 
For registered charities: 
You must file your accounts and annual return with the Charity Commission within 10 months of your year‑end. 
 
For charitable companies: 
You must file with both the Charity Commission and Companies House, and Companies House has stricter deadlines. 
 
We’ll keep you on track and remind you well before anything is due. 
 
Restricted funds must be spent on a specific purpose chosen by the donor, grant body or funder. 
 
Unrestricted funds can be used for your general running costs. 
 
It’s essential to keep these separate in your bookkeeping and year‑end accounts. 
 
We help charities set this up correctly and keep things tidy throughout the year. 
 
In most cases, trustees can only be paid for out‑of‑pocket expenses unless your governing document specifically allows trustee remuneration. 
 
Paying trustees the wrong way can cause compliance issues with the Charity Commission. 
 
If you’re unsure, we can review your constitution and advise you properly. 
 
Not all charities must follow SORP. 
You usually need SORP‑compliant accounts if you are: 
 
a charitable incorporated organisation (CIO), or 
a charity with income over £250,000 
 
Smaller charities may be able to use receipts & payments accounts. 
We’ll advise you based on your size and structure. 

Still got questions? We’re here to help. 

If you’re feeling unsure about anything — tax, accounts, payroll, charities or your next steps — let’s chat it through together.