Common Questions.
Clear, straightforward answers to the questions we hear most from UK business owners.
Should I be a Sole Trader or a Limited Company?
It depends on your profit level, liability preference, and long-term goals. Generally, a limited company becomes more tax-efficient once profits exceed around £30,000–£50,000. Sole trader status involves simpler admin but offers no personal liability protection. We advise on the most tax-efficient structure for your specific circumstances.
What expenses can I claim as a business owner?
You can generally claim any expense that is "wholly and exclusively" for the purpose of your business. This includes office costs, travel, professional insurance, and certain software subscriptions. For limited companies, the rules differ slightly from sole traders. We help you identify every legitimate expense to minimise your tax bill.
When is the Self-Assessment deadline?
The UK deadline for filing your online tax return and paying any tax owed is 31st January following the end of the tax year. Paper returns must be submitted by 31st October. Missing these deadlines results in automatic HMRC penalties, so we begin your return well in advance to avoid any last-minute stress.
What is the current VAT threshold?
As of 2024/25, the threshold for mandatory VAT registration is £90,000 in a rolling 12-month period. You can register voluntarily if your turnover is below this amount, which can be beneficial if your customers are VAT-registered businesses. We can advise on the best approach for your situation.
What is Making Tax Digital (MTD)?
Making Tax Digital is HMRC's initiative to modernise the UK tax system by requiring digital record-keeping and software submission for tax returns. MTD for VAT is already mandatory for all VAT-registered businesses. MTD for Income Tax (ITSA) will require quarterly digital submissions from eligible sole traders and landlords. We help you become fully MTD-compliant.
Do I need an accountant if I use Xero or QuickBooks?
Accounting software is a powerful tool for data entry and bookkeeping, but it does not replace professional advice. Software cannot advise you on tax allowances you may be missing, plan your finances strategically, or represent you if HMRC investigates. A qualified accountant adds value far beyond what software can provide.
How do I register a limited company?
A limited company is registered through Companies House, typically within 24 hours online. However, there are important considerations around share structures, directorships, PSC registers, and HMRC registrations (Corporation Tax, PAYE, VAT). We handle the entire process to ensure everything is set up correctly from day one.