Free Business & Tax Guides for UK Sole Traders, Landlords & Limited Companies

First, notify your existing accountant and settle any outstanding fees. Then sign up with your new accountant, who will send a professional clearance request to the old firm. They’ll transfer your records, tax details and filings, so there’s no gap in service12.

No – all your data and deadlines stay intact. The new accountant simply takes over your existing records (e.g. takes access to Xero/FreeAgent) or imports your spreadsheets3. They continue your filings (VAT, tax returns) as scheduled, so nothing gets missed.

No direct notice is needed. You simply authorize the new accountant as your agent (via HMRC’s online agent-authorisation system). They’ll inform HMRC of the change by registering themselves; you do not personally need to file a separate notification.

It typically takes a few weeks. Once you give authority, many firms aim to complete the handover within about a month4. The exact time depends on how up-to-date your records are and how quickly the old accountant responds, but with good cooperation it’s usually swift.

Yes – you can change accountants at any time, even mid-tax-year. UK law doesn’t force you to wait until year-end. Just give notice to your current accountant and start with the new one whenever suits you5. (Many clients switch after a busy period, but it’s not required.)

It’s a formal letter your new accountant sends to the old one to approve the switch. The old accountant confirms they can hand over your records (and notes any unresolved issues) and releases your tax details. This ensures your new accountant can legally take over your affairs67.

Generally no. You settle any due fees with your old accountant for work already done, then start paying the new accountant for future services. If you pre-paid the old accountant beyond their work, you may get a refund. You won’t double-pay for the same period – just pay each firm for its own time on your account.

No hidden “switching” fee. Most firms (like SHMS) promise a smooth transition at no extra cost3. Aside from finalizing any owed fees to the old accountant, you only pay the agreed fee to the new accountant. Any additional services (like catch-up bookkeeping) would be agreed up-front.

You can insist on the handover once fees are settled. By law, your old accountant must comply and supply your records (they cannot unreasonably withhold them)8. If they delay, your new accountant may follow up or escalate. In practice, cooperation is usually straightforward if everything is up-to-date.

Your fixed fee covers all standard services in your plan. This typically includes a dedicated, named accountant, unlimited support/advice, preparation of annual accounts and tax returns, and handling VAT and payroll if needed910. Software access (e.g. FreeAgent) is also included with no extra charge.

No. We offer transparent fixed monthly pricing “with no hidden fees”9. Everything agreed in your plan is included. Any additional work beyond the plan (for example, special projects or late filings) would be quoted in advance.

Absolutely. As your business grows, you can move to a larger plan. Accountants like SHMS say services “grow with you”11. If you start needing extra services (more transactions, payroll, etc.), we’ll revise your package and fee accordingly, ensuring you always have the right level of support.

No long lock-in periods. Our service is on an ongoing basis with month-to-month terms. You’re free to cancel or switch services if your needs change (with only a short notice period as per our terms). This client-friendly approach is common among modern accountants.

Fees are typically paid monthly by Direct Debit or standing order at the start of each billing cycle. Some firms also require the first month (or quarter) in advance. We’ll clarify the payment schedule upfront so you know exactly when payments are due.

Yes. You’ll have a named, dedicated accountant and support team. For example, SHMS confirms every client “gets a dedicated accountant and support team”10. You’ll always know who to contact for questions, and we won’t charge extra for calls or emails.

We use MTD-compatible cloud software (like FreeAgent). That is provided as part of your plan at no extra cost. If you already have records (spreadsheets or other software), we can import them for you. You’re not forced to pay for new software; we just ensure you’re set up on an efficient digital platform.

Just basic business details and authorizations. We’ll need your business name, tax reference (UTR, VAT number if any) and a signed authority/engagement letter. Once that’s in place, we handle the rest (contacting your old accountant, transferring records).

You’ll get a welcome email or pack with clear next steps. The firm will take over your bookkeeping/setup: importing your data, reviewing your accounts, and making sure everything (VAT, payroll, tax filings) is compliant immediately12. You’ll know exactly what’s happening and when, from day one.

Very quickly. Many firms can begin work within 24–48 hours of receiving your documents and signed authority13. If an urgent deadline is coming up (e.g. a VAT or tax return), they’ll prioritise making you compliant first. Otherwise they’ll set up your ongoing processes right away.

If your business is VAT-registered and above the threshold, yes. HMRC requires all VAT-registered businesses with taxable turnover above the threshold (currently £90,000) to keep digital records and submit VAT returns via MTD-compatible software1415. If you’re below the threshold, it’s optional.

As of April 2024, the threshold is £90,000 of taxable turnover15. That means if your taxable sales (including zero-rated supplies) exceed £90k in any 12 months, you must register for VAT and comply with MTD.

You register through HMRC. Once VAT-registered, you log into your HMRC online account and enroll in Making Tax Digital for VAT. You’ll need your VAT registration certificate and Government Gateway ID. HMRC’s website guides you through the sign-up process.

Keep your normal VAT records (invoices, receipts, VAT account) in digital form. For each sale or purchase, record the date, net amount, VAT rate, and customer details in software. MTD simply mandates these be kept digitally and submitted via compatible software16.

Most businesses file VAT returns quarterly. Each return is due by 1 month + 7 days after the period end17. For example, if your quarter ends 31 March, your return and payment are due by 7 May. (Annual or monthly schemes have different rules.)

HMRC charges penalties and interest on late VAT. A 3% penalty applies if payment is 16–30 days late, and additional daily penalties (at 10% per year on the overdue amount) start accruing after 30 days1819. It’s best to pay on time or arrange a time-to-pay to avoid these charges.

Yes. MTD requires “compatible software” to submit returns. This can be an accounting package (like FreeAgent, Xero, QuickBooks) or bridging software. The key is it must link directly to HMRC to send your data20. Your accountant will set this up for you.

Yes. If you pay any employee or director a salary through PAYE, you must register as an employer with HMRC before the first payday21. This applies even if you’re the only employee (e.g. a director of a Ltd). HMRC will then give you an employer PAYE reference.

Every time you run payroll. Under UK law (Real-Time Information), you report each payday. So if you pay employees monthly, you file a Full Payment Submission (FPS) each month; if weekly, then weekly. Essentially, every time you pay wages, you must submit the payroll figures to HMRC.

PAYE (Pay As You Earn) is HMRC’s system for collecting Income Tax and National Insurance from salaries. As an employer, you deduct the correct tax/NI from wages and submit it to HMRC each payday. It means the business must process payroll and file reports (RTI), and send the net pay and deductions on time.

Yes. Our service includes full payroll processing. We can set up PAYE, calculate wages and deductions, submit payroll RTI returns, and pay HMRC on your behalf. This ensures your employees are paid correctly and all payroll reporting is done on time.

Anyone with untaxed income. For example, sole traders earning over £1,000 profit, business partners, company directors, landlords, or those with significant interest/dividend income must file22. Essentially, if you have income outside PAYE (like self-employment, rental, capital gains, etc.), HMRC expects a return.

The deadline for online filing is 31 January following the end of the tax year (e.g. 31 Jan 2026 for 2024/25)23. Any tax owed is also payable by that date. If you have payments on account, a second payment (July payment on account) is due by 31 July each year24.

Yes, but penalties apply. If you file after 31 Jan, there’s an automatic £100 late-filing fine, plus further daily penalties if very late23. Interest accrues on any tax owed from the due date. It’s best to file and pay ASAP to minimise extra charges.

Keep all income and expense records underlying your return. This includes invoices, receipts, bank statements and records of sales or purchases. HMRC requires these documents (at least 5 years)25. Good records ensure your Self Assessment is accurate and ready in case HMRC asks to see the details.

Rental profits are taxed as part of your income. You report them on your Self Assessment and pay Income Tax on the profit after allowable expenses. The tax rate depends on your total income (20%, 40% or 45%). You cannot deduct mortgage interest outright (see next question).

You can claim allowable property expenses such as repairs and maintenance, insurance, letting agent fees, utility costs (if landlord-paid), and service charges26. These costs are deducted from rental income to calculate taxable profit. (Mortgage interest isn’t an expense deduction now – see next answer.)

Since April 2020, you get a basic-rate (20%) tax credit on mortgage interest instead of deducting it. In practice, you can no longer deduct mortgage interest from rental profits; instead HMRC gives you a 20% credit on the interest paid27. This often increases tax for higher-rate payers, so it’s important to plan income extraction carefully.

If you work in UK construction as a contractor or subcontractor, you generally must register. Contractors must register to deduct CIS tax, and subcontractors register to receive those deductions. In short, any construction worker not on PAYE who does contracting or subcontracting work will need CIS.

Contractors deduct CIS tax from subcontractor payments: 20% for registered subcontractors, 30% for unregistered (or 0% if the subcontractor has gross status)28. These deductions count as advance tax. Contractors pay the deducted amounts to HMRC monthly on behalf of subcontractors.

As a CIS subcontractor you claim normal trade expenses (tools, travel, insurance, etc.). Note that in CIS calculations you add back any materials you paid for yourself29, so you won’t deduct those again. Otherwise, treat CIS earnings like self-employment income and deduct all ordinary allowable costs against your profit.

Contractors report and pay CIS deductions to HMRC monthly, usually by the 22nd (electronic payment). Subcontractors don’t file a separate CIS return; instead you include all CIS income and deductions on your annual Self Assessment. (Keep the CIS statements your contractors give you – they form part of your tax records.)

Typically as a director you take a modest salary (often up to your personal allowance/NI threshold) via PAYE, and the rest of profit as dividends. Dividends come from post-tax profits and are taxed at dividend rates. This mix can minimise National Insurance. Your accountant can help determine the optimal split for your situation.

Register for Corporation Tax with HMRC within 3 months of starting business activities30. For VAT, register within one month of exceeding the £90k threshold, or voluntarily if it benefits you. We can do these registrations for you or guide you through HMRC’s online process.

A private company must file accounts at Companies House within 9 months of its year-end. Corporation Tax is paid 9 months after year-end, and the Company Tax Return (CT600) is due 12 months after year-end. (Directors also file personal Self Assessment by 31 Jan for any salary/dividends.)

A Confirmation Statement (formerly Annual Return) is filed at Companies House once a year. It confirms your company’s directors, shareholders, registered office, etc. You must file it no later than 14 days after each anniversary of incorporation (or each year after the previous statement).

An accountant will ensure you claim all reliefs and deductibles. For example, they’ll review your expenses, advise on tax-efficient structures (sole trader vs Ltd), and maximise pension or capital allowance claims. As SHMS notes, they do “a full review to ensure you’re claiming all eligible expenses, using the right trading structure, and not missing out on reliefs”31. This proactive planning can significantly reduce your tax bill.

Your accountant will handle HMRC enquiries for you. They’ll provide the requested records and communicate with HMRC to resolve any issues. Because we prepare your accounts properly from the start, audits are usually straightforward. We ensure all filings are correct and back them up with evidence, so any queries can be answered efficiently.

We’re flexible. If you already use a cloud system (Xero, QuickBooks, FreeAgent, etc.), we can take over access in that system3. If you’re on spreadsheets or another tool, we can import your data into our preferred software. You only switch if it clearly benefits your bookkeeping. We’ll support whatever makes your records accurate and MTD-compliant.