Frequently asked questions about UK accounting and tax

Yes. We can help with company registration, selecting SIC codes that reflect the planned activities, registered office options and the initial HMRC setup. The exact service depends on your circumstances and the required identity checks.

A limited company must keep adequate company and accounting records, file annual accounts with Companies House, file a Company Tax Return with HMRC and pay any Corporation Tax due. It must also file a confirmation statement and meet payroll, VAT or other reporting duties where they apply.

A private limited company normally files its first accounts with Companies House within 21 months of incorporation. After that, annual accounts are normally due 9 months after the company financial year ends. A different deadline can apply if the accounting period changes.

Corporation Tax is normally due 9 months and 1 day after the Corporation Tax accounting period ends. The Company Tax Return normally has a separate deadline of 12 months after the accounting period ends.

It is the Companies House filing used to confirm that the company information on the register is correct. This includes details such as the registered office, directors, SIC code, share capital, shareholders and people with significant control, where relevant.

A company must file at least one confirmation statement every 12 months. It can be filed up to 14 days after the end of the review period, although it may be filed earlier.

Yes. A private limited company can have one director and one shareholder, and the same person can hold both roles. At least one director must be an individual rather than another company.

A sole trader runs the business personally and is generally responsible for its debts. A limited company is a separate legal entity and usually gives shareholders limited liability, but it brings additional filing, record-keeping and director responsibilities. The best structure depends on profit, risk, administration and personal circumstances.

Identity verification became a legal requirement from 18 November 2025 for directors and people with significant control. New directors must provide their personal code when incorporating or being appointed; existing directors generally provide it with the company’s next confirmation statement during the transition period. Companies House is introducing other transparency and filing changes in phases, so current guidance should always be checked.

You normally need to register if taxable turnover for the last 12 months goes over £90,000, or if you expect taxable turnover to go over £90,000 in the next 30 days. Different rules can apply to businesses based outside the UK and to some specific transactions.

Yes. A business making taxable supplies can usually register below the compulsory threshold. This may help with reclaiming eligible input VAT or working with VAT-registered customers, but it also creates charging, record-keeping and filing obligations, so the commercial effect should be reviewed first.

VAT is a tax charged on many goods and services. The standard rate is 20%, while certain supplies use the reduced rate of 5% or the zero rate of 0%. Exempt and outside-the-scope supplies are different from zero-rated supplies and can affect VAT recovery.

Allowable costs depend on the business structure and the purpose of the expense. Common examples can include accounting, software, business phone use, equipment and qualifying travel. Personal costs are not allowable, and mixed-use costs normally need a reasonable business allocation. Some costs follow capital allowance or benefit rules instead.

Possibly, but the treatment depends on who owns the vehicle, the business structure, business and private use, emissions and the method used to claim costs. A sole trader may use eligible mileage rates or actual costs, while a company car can create benefit-in-kind and reporting consequences. We review the facts before recommending a method.

Often, yes. Eligible sole traders may use HMRC simplified expenses or calculate a reasonable business proportion of actual household costs. The rules for a limited company paying or reimbursing a director are different, so the amount and records should match the business structure and actual use.

Yes. Limited companies normally keep accounting records for 6 years from the end of the financial year they relate to. Self-employed people normally keep Self Assessment business records for at least 5 years after the 31 January filing deadline. Records may need to be kept longer in some circumstances.

Making Tax Digital is HMRC’s system for keeping specified tax records digitally and sending information through compatible software. The exact obligations depend on the tax and the taxpayer.

It is being introduced in stages for qualifying sole traders and landlords. Qualifying income over £50,000 for 2024/25 brings a start date of 6 April 2026; over £30,000 for 2025/26 brings 6 April 2027; and over £20,000 for 2026/27 brings 6 April 2028. Exemptions and detailed qualifying-income rules can apply.

Yes. We prepare and file returns for sole traders, company directors, landlords, CIS subcontractors and individuals with other income that needs to be reported. We also explain the calculation and the information still needed before filing.

An online return is normally due by 31 January following the end of the tax year, and tax due is normally payable by the same date. Paper returns are normally due by 31 October. HMRC may give a different deadline in some situations.

A Unique Taxpayer Reference is a 10-digit number issued by HMRC. Individuals receive one when they register for Self Assessment, and a limited company receives a separate Corporation Tax UTR.

The Construction Industry Scheme requires contractors to verify subcontractors and, in many cases, deduct tax from the labour element of their payments. The contractor sends the deductions to HMRC as advance payments towards the subcontractor’s tax and National Insurance. Subcontractors still need to report the income and deductions correctly.

Yes. We can help with registration, allowable expenses, Self Assessment and preparation for Making Tax Digital where it applies. You remain responsible for keeping complete supporting records.

Yes. We can manage payroll calculations, payslips, PAYE, National Insurance and the agreed submissions to HMRC. We can also support routine starter, leaver and year-end payroll records.

Employers normally send a Full Payment Submission through Real Time Information on or before each employee’s payday. Limited exceptions apply to late reporting, and corrections should be submitted promptly.

Yes. A director can also receive salary through PAYE, provided the payroll and employment arrangements are operated correctly. A director who is also a shareholder may receive lawful dividends from available profits, but salary and dividends follow different tax and company-law rules.

Dividends are distributions to shareholders from profits available for distribution, normally after Corporation Tax. They must be declared and documented correctly and are not a business expense. The shareholder may also have personal tax to pay on dividend income.

HMRC or Companies House may charge penalties and interest, depending on the obligation and the length of the delay. Penalties can increase over time. A company can also face strike-off action if required Companies House filings are not made. Contact us as soon as possible so we can identify what is outstanding and the available next steps.

Yes. With your authority, the new accountant can request professional clearance and the relevant records from the previous accountant. We also check upcoming deadlines, HMRC authorisations and software access during the handover.

It depends on the service and the client’s needs. We use BrightPay for payroll and TaxCalc for accounts and tax work. For VAT or Making Tax Digital, we will confirm the records and compatible export format needed for the agreed work.

Yes. We can support a new business with choosing an appropriate structure, payroll, VAT, annual accounts and recurring tax or company filings within the agreed service.

In some cases, HMRC may agree a payment plan, often called a Time to Pay arrangement. Approval depends on the tax, the amount owed, filing status and ability to pay. Interest may continue, so contact HMRC or ask for help as early as possible.

Yes. We can review the letter, explain what HMRC is asking for and help prepare an appropriate response within the agreed scope. Please send the complete letter, including its date, reference and response deadline.

The fee depends on the business structure, transaction volume, record quality and services required. We offer fixed monthly packages for recurring work and confirm the scope and price before starting.

Yes. Our services can be delivered digitally using secure document sharing, accounting or payroll software, email, telephone and online meetings. In-person support can be discussed where appropriate.

This depends on the service, but common items include bank statements, sales invoices, purchase invoices, receipts, payroll information, prior returns and relevant HMRC or Companies House correspondence. We provide a tailored checklist.

Yes. We provide support in Romanian and English and can manage the agreed communication with HMRC or Companies House. We explain UK tax and accounting terms clearly while keeping the official UK terminology where useful.