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A Calm Guide to Getting Your Business Finances Organised

Sun, 22 Mar 2026 11:37:43 GMT

A Calm Guide to Getting Your Business Finances Organised

Starting or running a business can feel overwhelming — especially when it comes to finances. But getting organised doesn’t have to be stressful. With a few simple steps, you can create clarity and confidence around your numbers.

Start With a Clear System
Whether you prefer spreadsheets or accounting software, consistency is key. Choose one system and stick to it.

Separate Business and Personal Finances
A dedicated business bank account makes tracking income and expenses far easier — and keeps everything clean for tax purposes.

Schedule Weekly Money Check-Ins
Set aside just 30 minutes each week to review income, expenses, and upcoming bills. Small habits prevent big problems.

Keep Every Receipt (Digitally!)
Apps make it easy to scan and store receipts. No more scrambling at year-end.

Know You Don’t Have to Do It Alone
Having an accountant means having someone to guide, support, and simplify things when they feel complicated.

Final Thought
Finance doesn’t have to feel chaotic. With the right systems in place, it becomes something that quietly supports your business growth.

Your Time Is Valuable — Spend It Running Your Business

Sun, 22 Mar 2026 07:00:09 GMT

⭐ MARCH – WEEK 4

Helpful Hint: Your Time Is Valuable — Spend It Running Your Business, Not Doing Paperwork

⭐ MARCH – WEEK 4

Helpful Hint: Your Time Is Valuable — Spend It Running Your Business, Not Doing Paperwork

Many sole traders underestimate how much time they lose trying to do their own bookkeeping, tax returns, or financial admin.

Hours spent chasing receipts, correcting spreadsheets, or Googling HMRC rules could be spent earning money , growing your business, or having more free time.

DIY costs far more than people realise.

❗ The Real Cost of Doing It Yourself

When you try to manage everything alone, you lose:

Billable hours
Personal time
Focus on your actual business
Energy
Accuracy
Confidence

And often, you still end up needing professional help later anyway — usually at a higher cost because things have gone wrong.

�� Why Outsourcing Your Accounting Is the Smartest Business Move

When you hand your accounts to Calculated Accountancy, you get:

More time
More clarity
More accuracy
More confidence
More tax savings
Less stress
Less admin
Less risk

We take care of the financial side so you can focus on what you do best.

�� Stop wasting time on tasks that drain you. Let us handle your accounts, and reclaim your time and peace of mind.

Monthly Bookkeeping Saves You Money

Sun, 15 Mar 2026 07:00:03 GMT

⭐ MARCH – WEEK 3

Helpful Hint: Monthly Bookkeeping Saves You Money — DIY Costs You More Than You Think

⭐ MARCH – WEEK 3

Helpful Hint: Monthly Bookkeeping Saves You Money — DIY Costs You More Than You Think

March is a perfect time to rethink how you manage your accounts.

Most sole traders try to keep their own books and only hand everything over at the end of the year — often in a mess.

This almost always leads to:

Incorrect tax returns
Overpaid tax
Missed deductible expenses
Time wasted trying to fix errors
Higher accountancy fees
Avoidable stress

DIY bookkeeping rarely stays consistent throughout the year.

❗ Why Monthly Support Beats DIY Every Time

When you try to handle everything yourself:

You forget transactions
Receipts go missing
Totals don’t match
Categories get confused
You spend too long fixing problems
You risk misreporting income

Small mistakes become bigger issues later.

�� What Monthly Bookkeeping with us can Give You

Up-to-date records
Clean and clear financial reports
Guaranteed accurate tax returns
No more last-minute chaos
Peace of mind every single month
Ability to plan ahead with confidence
Much lower risk of HMRC issues
Lower year-end accountancy fees

When your books are right, everything else becomes easier.

�� Stop doing everything yourself. Let us manage your books professionally, month after month.

Avoid HMRC Red Flags

Sun, 08 Mar 2026 07:00:03 GMT

⭐ MARCH – WEEK 2

Helpful Hint: Avoid HMRC Red Flags — Don’t Risk DIY Mistakes

⭐ MARCH – WEEK 2

Helpful Hint: Avoid HMRC Red Flags — Don’t Risk DIY Mistakes

HMRC carries out more digital checks than ever before, and small mistakes often trigger reviews.

Most of these issues come from DIY tax returns or poorly kept records.

March is a great month to identify and fix problem areas before the next tax year begins.

❗ Common DIY Red Flags That Attract HMRC Attention

Profit margins that don’t match your industry
Mileage claims that look unrealistic
Home office claims that are too high
Missing income sources
Inconsistent bookkeeping
Using estimates instead of real figures
Claiming personal items as business costs
Not understanding allowable vs. non-allowable expenses

These mistakes may be unintentional, but HMRC treats them seriously.

�� How We Can Protect You

We help ensure your records are safe, clean, and compliant by:

Reviewing your previous return
Rebuilding your records correctly
Identifying risk areas
Making sure your claims are legitimate
Preventing inaccurate submissions next year
Keeping you fully HMRC-compliant

Avoid trouble now instead of correcting it later.

�� Let us review your records and protect you from potential HMRC red flags.

Prepare Early for the New Tax Year

Sun, 01 Mar 2026 07:00:01 GMT

⭐ MARCH – WEEK 1

Helpful Hint: Prepare Early for the New Tax Year — Don’t Repeat Last Year’s Mistakes

⭐ MARCH – WEEK 1

Helpful Hint: Prepare Early for the New Tax Year — Don’t Repeat Last Year’s Mistakes

March is the perfect time to get organised before the new tax year begins in April.

Most sole traders enter a cycle of being overwhelmed every January because they leave everything too late — receipts pile up, figures don’t match, and guesswork becomes the default.

That’s why preparing early is not just helpful… it’s essential.

❗ Why DIY Preparation Usually Goes Wrong

Many sole traders think:
“I’ll keep up this year. I’ll record everything. I’ll be organised.”

By October, the reality is:

Lost receipts
Guessing mileage
Incomplete spreadsheets
Mismatched bank transactions
Forgotten income
No clear system

Trying to fix everything in a rush later almost guarantees errors.

�� Why Professional Preparation in March Makes a Difference

When you let us set you up for the new tax year now, we help you:

Create a simple, stress-free record-keeping system
Track income and costs correctly from day one
Organise receipts the right way
Avoid future HMRC issues
Prevent overpaying tax next year
Make your next January completely stress-free

�� Start the new tax year with clarity, not chaos — let us set everything up properly for you.

Your Tax Return isn’t “Just a Form”

Sun, 22 Feb 2026 07:00:01 GMT

⭐ FEBRUARY – WEEK 4

Helpful Hint: Your Tax Return isn’t “Just a Form” — It’s a Financial Risk if Done Incorrectly

⭐ FEBRUARY – WEEK 4

Helpful Hint: Your Tax Return isn’t “Just a Form” — It’s a Financial Risk if Done Incorrectly

Many sole traders underestimate how much depends on a correctly prepared tax return.

It affects:

Your tax bill
Your ability to get credit
Mortgage applications
Business loans
Benefits or childcare claims
HMRC risk rating

A rushed or DIY return can harm your finances far more than people realise .

❗ The Hidden Dangers of DIY Self Assessment

Common mistakes include:

Entering the wrong figures
Forgetting additional income
Missing allowable expenses
Using incorrect accounting methods
Miscalculating profit
Not understanding capital allowances
Incorrect home-working claims
Wrong mileage claims

Any of these can:

Lead to overpaying
Trigger HMRC checks
Delay financial applications
Cause penalties

A tax return is too important to gamble on.

�� Let Us Protect You and Your Business

When we complete your return:

Every figure is checked
Every expense is reviewed
Every rule is correctly applied
Risks are removed
Tax savings are maximised
Your finances are protected
Your return is submitted properly and professionally

This isn’t just about compliance — it’s about safeguarding your future financial opportunities.

�� Don’t risk DIY. Let us complete your next return with accuracy and expertise.

Keep Business and Personal Finances Separate

Sun, 15 Feb 2026 07:00:01 GMT

⭐ FEBRUARY – WEEK 3

Helpful Hint: Keep Business and Personal Finances Separate — It Saves You Money

⭐ FEBRUARY – WEEK 3

Helpful Hint: Keep Business and Personal Finances Separate — It Saves You Money

Mixing business and personal spending is one of the biggest mistakes sole traders make.

It may seem harmless, but by the end of the year it causes:

Confusing records
Missed expenses
Overclaimed personal items
Hard-to-track income
More time spent sorting everything
Higher accountancy costs
Greater risk of HMRC questions

DIY bookkeeping becomes nearly impossible when everything is mixed together.

❗ Why Mixing Accounts Makes DIY Tax Returns Even Riskier

When your finances aren’t separated:

You can’t easily identify true business income
You’re more likely to misreport expenses
You may accidentally claim something personal
Your tax calculations become unreliable
HMRC may challenge your figures

One wrong claim can trigger penalties — even if it was accidental.

�� How We Can Fix This From Now Onwards

We help you:

Set up a clean business account - can be a separate personal account for sole traders.
Separate spending properly
Track income and expenses accurately
Reduce errors at year-end
Improve cash flow clarity
Make tax time simple, not stressful

A small change now saves huge problems later.

�� Let us help you get your finances organised before the new tax year begins.

Don't Ignore HMRC

Sun, 08 Feb 2026 07:00:01 GMT

⭐ FEBRUARY – WEEK 2

Helpful Hint: Don’t Ignore HMRC Letters — Get Professional Support Immediately

⭐ FEBRUARY – WEEK 2

Helpful Hint: Don’t Ignore HMRC Letters — Get Professional Support Immediately

February is often when HMRC sends out follow-up letters from late returns, estimated bills, or mismatched information.
Many sole traders panic when they receive one… and many try to fix it themselves.

This is where problems begin.

❗ Why You Should Never Try to Deal With HMRC Alone

HMRC letters are often:

Confusing
Vague
Filled with tax jargon
Missing important detail

And if you respond incorrectly, you could:

Agree to the wrong amount
Admit to an error you didn’t make
Miss appeal deadlines
Trigger further reviews
End up paying more than necessary

Trying to DIY your response can cost you money — and your peace of mind.

�� Why Let Us Handle HMRC for You

When you show us the letter:

We explain exactly what it means
We check whether it’s correct
We identify errors in HMRC’s calculation
We respond professionally on your behalf
We ensure you don’t overpay
We protect you from penalties

Most of the time, the issue is small — but only if handled correctly.

�� If HMRC writes to you, don’t panic and don’t reply alone. Send it to us and we’ll deal with it properly. *Please bare in mind this is an adhoc support and not included in your assessment prep and submission fee unless you are on our Premium Plan.

Start the New Tax Year Organised

Sun, 01 Feb 2026 07:00:02 GMT

⭐ FEBRUARY – WEEK 1

Helpful Hint: Start the New Tax Year Organised — Avoid Another January Panic

⭐ FEBRUARY – WEEK 1

Helpful Hint: Start the New Tax Year Organised — Avoid Another January Panic

February is the perfect time to reset, regroup, and get organised for the new tax year.

Many sole traders wait until the end of the year to sort their records — and that’s exactly why January feels chaotic.

Doing everything last-minute almost guarantees:

Missing receipts
Incorrect totals
Rushed entries
Avoidable stress
Higher risk of HMRC mistakes
Overpaying tax due to lost expenses

DIY bookkeeping may seem easy at first… until you realise how much you’ve missed. an you remember what you purchased April LAST YEAR?? I don't remember what I had for lunch yesterday let alone last year!

Why You Shouldn’t Manage Your Records Alone

The most common client stories we hear are:

“I thought I could keep up with my receipts but I didn’t.”
“My spreadsheet doesn’t match my bank.”
“I didn’t realise that counted as an expense.”
“I gave up halfway through the year.”

And the result?

Messy records and last-minute scrambling.

Bad bookkeeping = incorrect tax return
Incorrect tax return = HMRC problems and higher tax bills

�� Why February Is the Best Time to Hand Everything to Us

When you let us take over your bookkeeping now, you get:

Proper organisation from day one
No missed expenses
No lost receipts
A clear view of your profits
A smoother year-end process
A stress-free January next time
More time to focus on running your business

We turn chaos into clarity — month after month.

�� Start the year right: hand us your records now and avoid another January nightmare.

Rushing your Tax Return = MISTAKES

Sun, 25 Jan 2026 07:00:00 GMT

⭐ WEEK 4 – Helpful Hint: Don’t Rush Your Return — Mistakes in January Are Costly (Let a Professional Handle It)

As the 31 January Self Assessment deadline approaches, many sole traders go into panic mode.

That’s when rushed DIY returns lead to:

Incorrect income totals
Missed expenses
Overpaid tax
HMRC letters and penalties
Returns being rejected
Long, stressful calls to HMRC

January is the worst time for guesswork, rushing, or hoping for the best. Let's make a New Years Resolution - Let's submit your return for 2025/26 in May 2026! That way you have 9 months to save to pay your tax liability!!!

And yet, every year thousands of people try to complete their own return in a hurry — and it almost always ends badly.

This Week’s Helpful Hint: Don’t Leave It Until the Last Minute — And Don’t File It Alone

When the pressure is on, it’s easy to:

Enter figures incorrectly
Forget additional income
Miscalculate profit
Miss allowable expenses
Choose the wrong expense method
Misreport CIS deductions
Claim something incorrectly
Or even worse — not claim something you should

A rushed return is risky. And HMRC does not accept “I didn’t know” or “I made a mistake” as an excuse.

This is exactly why trying to DIY your tax return in January is more stressful and more costly than letting a qualified accountant take over.

�� Why We Should Complete Your Return — Especially Now

At this stage in January, accuracy matters even more.
When you let us handle your return, we ensure:

✔ Every figure is double-checked

✔ All allowable expenses are included

✔ No deductions are missed

✔ No penalties or HMRC warnings

✔ Payments on Account are calculated correctly

✔ CIS deductions are handled properly

✔ Your return is filed correctly first time

✔ You save both time and tax

Most importantly — you avoid the stress and risk of last-minute mistakes .

Many clients who switch to us have said the same thing:
"I should have done this years ago. It’s so much easier and I feel more confident everything is correct."

January Isn’t the Time to Take Chances

Once you hit the final week of January, the margin for error disappears.

Your business is too important to risk submitting a rushed or incorrect return.

That’s why we always say:

�� Let us handle it — because peace of mind is worth far more than a DIY approach.

�� Ready to get your return completed safely and accurately?

Message us today.

We’ll take care of everything professionally, quickly, and stress-free — so you can avoid penalties and start the year with confidence.

Payments on Account can be COSTLY

Sun, 18 Jan 2026 07:00:41 GMT

WEEK 3 – Helpful Hint: Check If You Need Payments on Account (And Why It’s Best to Let a Professional Handle It)

Payments on Account are one of the most confusing areas of Self Assessment — and January is when many sole traders discover they owe more than expected.

This can cause shock, frustration, and cash-flow issues … especially if your income changed during the year.

The truth is, many mistakes happen when people try to work this out themselves, and HMRC doesn’t make it easy. That’s why having an accountant handle your return is far safer and more accurate.

This Week’s Helpful Hint: Find Out Whether Payments on Account Apply to You

Payments on Account are advance payments towards next year’s tax bill .
You may need to make them if:

Your last tax bill was over £1,000
Less than 80% of your tax was collected through PAYE

But here’s the problem:

❗ Many sole traders either

Pay too much because they don’t know they can reduce it ,
or
Don’t pay enough and get hit with penalties later.

Without proper calculation, it’s easy to get this wrong.

Why You Shouldn’t Try to Work This Out Yourself

Payments on Account aren’t straightforward — they involve forecasting, comparing income levels, and understanding HMRC rules.
A small mistake can lead to:

Overpaying by hundreds
Underpaying and triggering penalties
Cash-flow issues
Incorrect future projections
Stress and confusion during an already busy month

Most sole traders simply don’t have the time or the desire to deal with this.

Why Letting Us Do It Is the Best Option

When we complete your tax return, we will:

✔ Check if Payments on Account apply

✔ Accurately calculate what you should pay

✔ Reduce them if your income has dropped

✔ Prevent accidental overpayments

✔ Make sure you don’t get unnecessary penalties

✔ Give you a clear breakdown of what to expect this year and next

This gives you complete peace of mind and ensures you only pay what you actually owe — not a penny more.

January Is Not the Time for Guesswork

The deadline is close, and the last thing you want is:

A surprise bill
A miscalculated payment
A long call with HMRC
Stress at the end of the month

Let us handle the complicated parts so you can stay focused on your business.

�� If you’re unsure whether Payments on Account apply to you — or you want your return completed correctly and on time — We are here to help.
Send us a message today and we’ll take care of the entire process for you.

January Hints Week 2 - Allowable Expenses 2025

Sun, 11 Jan 2026 07:00:01 GMT

WEEK 2 – Helpful Hint: Don’t Miss Out on Allowable Expenses

⭐ WEEK 2 – Helpful Hint: Don’t Miss Out on Allowable Expenses (Most People Do When Filing Alone!)

One of the biggest reasons sole traders overpay tax is simple: they don’t realise what they can claim.

HMRC rules change often, and expense categories aren’t always obvious.

Many DIY filers either:

claim too little (paying more tax), or
claim incorrectly (risking penalties).

Neither outcome is good for your business.

This Week’s Helpful Hint: Review Your Allowable Expenses — But Don’t Try to Guess Them

Allowable expenses include things like:

Tools, equipment, and supplies
Travel and mileage
Home office costs
Phone and internet usage
Software and subscriptions
Training related to your current business
Accountancy fees
Insurance
Marketing and advertising

But the rules can be confusing. For example:

How much of your phone bill can you claim?
Should you use the simplified home-office method or a percentage calculation?
Which training is allowed and which isn’t?
What about clothing? Meals? Mixed-use purchases?

These decisions affect your tax bill — and HMRC expects them to be correct.

❗ DIY returns often miss hundreds of pounds worth of deductions.

�� Why We Should Identify Your Expenses

When we complete your return, we:

Go through your records line by line
Identify all allowable expenses
Ensure nothing is claimed incorrectly
Prevent overpaying
Keep you compliant and penalty-free
Maximise your tax savings safely

This is where having a professional really pays off.

Sole traders who do it alone often overpay far more tax than our fee — which means hiring an accountant is not an expense, it’s an investment that pays for itself .

�� Send us your records and let us ensure you claim everything correctly.

You’ll save time, avoid errors, and keep more of the money you’ve earned.

Helpful hints January Week 1

Sun, 04 Jan 2026 07:00:00 GMT

WEEK 1 – Helpful Hint: Get Ready for the 31 January Deadline

⭐ WEEK 1 – Helpful Hint: Get Ready for the 31 January Deadline (And Why DIY Tax Returns Are Risky)

January is Self Assessment crunch season , and while it may be tempting to “have a go yourself,” this is the time of year when the most mistakes happen — and HMRC penalties follow soon after.

Self Assessment isn’t just form-filling. It requires accurate record-keeping, correct calculations, understanding HMRC rules, and ensuring you claim everything you’re entitled to. A simple oversight can cost you far more than an accountant’s fee.

This Week’s Helpful Hint: Gather Your Essential Documents Now — and Let a Professional Handle the Rest

Before you can complete your tax return, you’ll need:

Income records
Expense receipts
Bank statements
CIS statements (if applicable)
Details of any additional income

But having the documents isn’t the hard part — it’s knowing what to do with them.

❗ DIY returns often lead to:

Missed expenses
Incorrect profit calculations
Overpaid tax
HMRC letters and penalties
Extra stress during an already busy month

Many sole traders think they’re saving money by filing their own return, but in reality, most end up paying far more tax than necessary .

�� Why Let Us Handle Your January Return?

When we complete your return, we ensure:

Total accuracy
All allowable expenses are claimed
No penalties, no guesswork
No time wasted learning complex HMRC rules
Peace of mind that everything is filed correctly
Lower stress and better financial outcomes

January is hectic enough — your tax return doesn’t have to be.

�� Gather your documents, send them to us, and we’ll take care of everything else.

Your time is better spent running your business, not wrestling with HMRC forms.

Working From Home Claims

Sun, 28 Dec 2025 16:00:03 GMT

Working from Home? Here’s How to Claim Part of Your Household Bills as Business Expenses

With more people working from home than ever before, it’s important to know what costs you can claim when running your business. Many sole traders and small business owners don’t realise they can offset part of their household bills against their taxable income — potentially saving money and making tax time a lot less stressful.

In this blog, we’ll break down what you can claim, how HMRC calculates it, and your options for doing it correctly.

Can You Claim Household Expenses?

The short answer is yes — if you use part of your home for business purposes, HMRC allows you to claim a proportion of certain household bills . This could include:

Electricity and gas
Water
Internet and phone bills
Rent or mortgage interest
Home insurance

It’s important to note that you can only claim the portion used for business , not your total household bill.

Two Methods for Claiming Expenses

HMRC provides two ways to calculate your claim: the simplified flat rate method and the actual costs method.

1. Simplified Flat Rate Method - Subject to change

This is the easiest method for many sole traders. You can claim a flat monthly rate depending on how many hours you work from home:

Hours worked from home per month

Flat rate you can claim

25–50 hours £10

51–100 hours £18

101+ hours £26

✅ Pros: Easy, no detailed calculations required.
✅ Best for: Those who work from home part-time or don’t want to track exact bills.

2. Actual Costs Method

If you work from home extensively, you might benefit from calculating the exact proportion of your household bills used for business.

Here’s how it works:

Identify your total household bills (utilities, rent/mortgage interest, internet, etc.)
Calculate the proportion of your home used for work — usually based on the number of rooms or area used.
Multiply your bills by the proportion used for business.

�� Example:
If you have 5 rooms and use 1 as a home office for 40% of the time, you can claim (1/5 × 40%) = 8% of your household bills.

✅ Pros: Can result in a higher claim than flat rate.
✅ Best for: People working from home full-time or with significant home-office expenses.

Important Tips

Keep records: Save all bills, receipts, and notes on how you calculated your claim. HMRC may ask for proof.
Be reasonable: Only claim for the part of your home genuinely used for business.
Employees vs. Sole Traders: Employees working from home can only claim limited tax relief if their employer requires them to work from home. This guidance mainly applies to self-employed individuals.

Bottom Line

Working from home doesn’t just save on commuting — it can also save you money on taxes. By understanding what you can claim and using either HMRC’s flat rate or actual cost method , you can reduce your taxable profit and keep more of your hard-earned money.

�� Pro Tip: If you’re unsure which method is best for you, speak to us today for more information. We can help you choose the most tax-efficient option and make sure your records are HMRC-compliant.

When should you file your accounts?

Sat, 22 Nov 2025 10:35:15 GMT

When should you file your accounts?

�� FAQ: When Should I File My Year-End Accounts?

Not sure when your year-end accounts need to be filed? Here’s a quick guide to keep you on track ��

�� Limited Companies:
You must file your annual accounts with Companies House within 9 months of your financial year-end .
➡️ Example: Year-end 31st December = Filing deadline 30th September.

�� Sole Traders & Partnerships:
You don’t file accounts with Companies House, but you do need to include them in your Self Assessment , due 31st January each year.

�� Why file early?
✔ Avoid penalties
✔ Get your tax figure sooner
✔ More time for planning
✔ Less last-minute stress!

�� How to get ready:

Reconcile bank statements
Update invoices
Complete payroll & VAT
Keep all records tidy

✨ Pro Tip:
Send your year-end info to your accountant within 1–2 months of your year-end. It makes the whole process much smoother.

If you’re unsure of your deadlines or need help preparing everything, feel free to message me — I’m here to help! ��

Allowable Expenses 2025

Thu, 13 Nov 2025 15:17:33 GMT

Allowable expenses - comprehensive list of what can be claimed.

Here’s a comprehensive list of what sole traders can usually claim as business expenses (for UK tax purposes under HMRC rules).

These are allowable expenses that can reduce your taxable profit — as long as they’re wholly and exclusively for business use.

�� General Business Expenses

Accountancy and bookkeeping fees
Bank charges and business account fees
Business insurance (public liability, professional indemnity, etc.)
Office supplies – stationery, printer ink, postage, etc.
Software subscriptions – QuickBooks, Xero, Microsoft 365, Adobe, etc.
Professional memberships and subscriptions (if relevant to your trade)
Advertising and marketing costs – website, flyers, social media ads, etc.
Training and courses (if related to your current business)

�� Travel and Vehicle Expenses

If you use a vehicle for business:

Fuel
Servicing and MOT
Repairs and insurance
Vehicle tax
Breakdown cover
Parking fees (not fines!)
Mileage (instead of actual costs) — 45p/mile for first 10,000 miles, 25p/mile thereafter

For public transport:

Train, bus, or taxi fares for business trips
Hotel stays and meals while travelling overnight for work

�� Working from Home Expenses

If you work from home, you can claim either:

Simplified flat rate (based on hours worked from home per month), or
Actual business proportion of:
Rent or mortgage interest (not repayments)
Council tax
Utilities (electricity, gas, water)
Internet and phone
Repairs and maintenance (if part of your home used for business)

�� Phone and Internet

Business mobile contract or calls
Portion of home phone/internet used for business

Keep a record of how much you use personally vs. business use.

�� Equipment and Tools

Computers, laptops, tablets
Phones
Cameras or printers
Tools and machinery
Furniture or desks (if used for business)
Repairs and replacements of tools

(Some of these may qualify as capital allowances if they’re large purchases.)

�� Clothing and Uniform

You can claim:

Protective clothing (e.g., steel-toe boots, gloves)
Uniforms branded with your business name

You can’t claim ordinary clothes, even if you only wear them for work (like a suit or casual outfit).

��️ Food and Entertainment

Meals while travelling for business (not lunch at your usual place of work)
Client meals only if directly related to business (note: entertainment is not normally deductible for tax relief, but still track it for accounting).

�� Premises and Rent

If you rent a workspace:

Office rent or coworking space
Business rates
Cleaning
Utilities and maintenance

�� Other Allowable Costs

Business loans or overdraft interest
Website hosting and domain names
Postage and couriers
Subcontractors or freelancers you pay
Wages (if you employ someone)
Pension contributions (for yourself via a personal pension, for employees via PAYE)

⚠️ Not Allowable (Common Mistakes)

Personal expenses (e.g., groceries, clothes, personal phone bills)
Client entertainment (meals, drinks, gifts over £50)
Fines or penalties (parking, speeding, etc.)
Depreciation (use capital allowances instead)

Plan Packages

Sat, 08 Nov 2025 12:00:12 GMT

Pricing Plans Explained

Pricing Plans

Find the plan that fits your business best — from simple bookkeeping to full financial strategy support.

Starter Plan – £20 / month - Ideal for sole traders and freelancers.

Easy-to-use annual income & expense spreadsheet

Yearly profit overview

End-of-year tax return prepared & submitted

Bank statements & receipts reviewed

Business Plan – £249 / month - Perfect for small to medium limited companies.

MTD-compliant with Xero subscription

Hubdoc receipt digitalisation

Quarterly VAT return preparation & submissions

Payroll for up to 5 (including director)

Growth Plan – £449 / month - Designed for businesses scaling fast.

Xero monthly subscription (MTD compliant)

Quarterly VAT return preparation & submissions

Payroll for up to 5 (including director)

Corporation Tax return prepared & submitted

Growth & forecasting planning

Budgeting support

Tax planning

Premium Plan – £649 / month - The complete finance package for SMEs.

Xero monthly subscription (MTD compliant)

Quarterly VAT return preparation & submissions

Payroll for up to 5 (including director)

Corporation Tax return prepared & submitted

Growth & forecasting planning

Budgeting support

Tax planning

Monthly management accounts review meeting

Cash flow planning

Quarterly strategy sessions

Unlimited ad-hoc queries

MTD - ITSA

Sat, 01 Nov 2025 14:46:29 GMT

�� Making Tax Digital for Income Tax Self Assessment (MTD ITSA): What You Need to Know

The UK tax system is going digital — and if you’re self-employed or a landlord, these changes could affect how you report your income.

Making Tax Digital for Income Tax Self Assessment (MTD ITSA) is the next step in HMRC’s plan to simplify tax reporting and improve accuracy through digital record-keeping.

Here’s everything you need to know, what it means for you, and how to get prepared.

�� What Is MTD ITSA?

MTD ITSA stands for Making Tax Digital for Income Tax Self Assessment .

It’s part of HMRC’s wider Making Tax Digital initiative, which aims to make tax administration more efficient, effective, and easier for taxpayers.

Under MTD ITSA, individuals who are self-employed or receive income from property will need to:

Keep digital records of their business income and expenses, and
Send quarterly updates to HMRC using MTD-compatible software, rather than filing one annual Self Assessment tax return.

�� When Will MTD ITSA Start?

HMRC has announced a phased rollout:

April 2026: Applies to self-employed individuals and landlords with a combined annual income over £50,000 .
April 2027: Extends to those earning between £30,000 and £50,000 .
Those earning below £30,000 are not yet required to join, though this may change in future phases.

Partnerships and limited companies will join MTD at a later date (no confirmed timeline yet).

�� How Will It Work?

Here’s how MTD ITSA changes the way you report your income:

Current Self Assessment,

One tax return submitted once a year

Paper or spreadsheet records allowed

Manual calculations and entries

Limited visibility during the year

New MTD ITSA ,

you’ll send four quarterly updates to HMRC each year.

Four quarterly updates plus a final declaration

Digital record-keeping required

Automatic updates through MTD software

Real-time view of your tax position

Under MTD ITSA , you’ll send four quarterly updates to HMRC each year. These will summarise your business income and expenses for that period.

At the end of the tax year, you’ll then submit a Final Declaration to confirm your income and claim any adjustments, reliefs, or allowances.

�� What You’ll Need

To comply with MTD ITSA, you’ll need:

MTD-compatible software
(We use Xero and Vital Tax)
Digital record-keeping — you must record all income and expenses digitally.
A Government Gateway account linked to your software.
Quarterly submissions and a final declaration each year.

�� How We Can Help

While MTD ITSA aims to make tax simpler, it also means a big shift for many sole traders and landlords.
We can make the process far smoother by:

Setting up and maintaining your MTD-compliant software
Managing your quarterly submissions to HMRC
Ensuring your records are accurate and compliant
Offering ongoing support and advice throughout the year

By moving to our monthly accounting package , you can stay compliant, up-to-date, and ready for MTD — without the last-minute stress.

⚙️ Why Preparing Early Matters

Even though MTD ITSA doesn’t start until April 2026 , getting ready now makes sense.
You’ll have time to:

Choose and learn your software
Get used to digital record-keeping
Smoothly transition without pressure

Businesses that prepare early often find their finances become more organised and easier to manage.

�� Final Thoughts

MTD ITSA is coming — and it’s here to stay.

By embracing digital tools and working with an accountant who understands the system, you can turn compliance into an opportunity:
➡️ Better financial visibility,
➡️ Fewer surprises at tax time, and
➡️ A more efficient, modern way to manage your business finances.

If you’re unsure how MTD ITSA will affect you, or you want help getting set up early, our team is here to guide you every step of the way.

�� Get in touch today to learn how our MTD-ready monthly packages can help keep your business compliant and stress-free.

Self-Employed Planning

Sun, 01 Oct 2023 10:14:20 GMT

Things to consider for the self-employed...

It's a serious myth that when self employed earn £30 for their service or product they pocket the £30 . Some believe that those nail technicians who charge them £30 for a gel polish means they are earning £30 an hour.

How wrong are they...

Please be mindful that what I am going to advise is my opinion and will not by all means be fool proof to cover all your costs but it will go a long way to help and it will most definitely help you in the long run with your budgeting and hopefully planning....

Let's talk about Banking - As accountants we all know how important it is to have a separate bank for your business transactions . Although its not a requirement it makes life so much easier to see your business cashflow and means we can analyse the business spending without seeing all your personal life.

Starling Bank (and a few others) now have a function to have a separate space for your money. Starling call them 'Spaces' others call them 'pots' or 'jars' whatever they are called, they are a great tool to save your money for your future.

Essential 'Spaces'.

Income Tax - your first year for basic earners (Below £50k) I would say put aside 20% of everything you earn. This will cover all of your income tax plus some if not all of your National Insurance - you might also have leftovers. So your first 'Space' will be called TAX.
Holiday cover - you should still earn while you're on holiday, everyone is entitled to paid leave so why are you different? My advice is to put aside 13% of your income to cover your holiday leave. Your second 'Space' is called HOLIDAY .
Wages - If you want to take a salary and leave money in your account for product purchases, you should be paying yourself at least minimum wage each month. So your third 'Space' is called WAGES . This pot gets emptied every month to your personal account as your employer would pay you if you were employed. Don't worry you'll get the rest of your profits, if you end up with more money in your account and can afford to pay yourself more then up your wages per hour or leave it in the account and pay yourself a bonus at the end of the year.
Pensions - Now I'm not a pension expert and I can't advise where to invest however your future is just as important as your present. If you were employed you are required to pay a minimum of 5% of your salary into a pension and your employer is required to pay 3% each month . Therefore to replicate this you should really be paying at least 8% of your earnings into your pension. So your last 'Space' is called PENSION . You should be setting aside minimum of 8% for your future.
Lastly, I always say to my clients that the bank you use for business should always have funds, if you set aside an amount to leave in your account that you know will keep you going for at least 2 months should anything happen to you for example if you were sick. This amount is completely personal to you, but it means that you can sleep at night knowing you have a backup should anything to happen, such as being sick, or last minute cancellations.

So here's what a £30 service should look like...

Income £30

Tax -£6

Holiday Cover -£4

Wages -£10.50 (Current Minimum wage for those over 23)

Pension -£2.50

You are left with £7.

So out of your £30 service you have roughly £7 left for your overheads. Is that enough to cover your products, your insurance, your rent or travel costs (if you're mobile), does that cover your training costs and pay for your expertise?

A simple yet effective way to split your income to cover similarly to those who are employed...

If you would like more information or advice please feel free to pop us an email .

*This is not an exhaustive list and is not fool proof to cover all your tax. Please seek advice from your accountant on your personal circumstance.

Marriage Allowance

Tue, 26 Sep 2023 12:30:00 GMT

Marriage Allowance - who can claim and what can you claim?

Marriage allowance lets you transfer £1,260 of your personal allowance to your husband, wife or civil partner.

This then reduces their ta bill by up to £252 in the tax year (6th April to 5th April the following year)

Personal Allowance is the standard allowance given which is tax free. Currently up to £12,570 (ask your accountant if you're unsure)

Who can apply?

You can claim marriage allowance if all of the following apply:

You're married or in a civil partnership
You do not pay income tax or your income is below your personal allowance
Your partner pays income tax at the basic rate, which usually means their income is between £12571 and £50,270 before they receive marriage allowance.

You cannot claim marriage allowance if you are just co-habiting.

Nail Technicians - What can I claim?

Tue, 19 Sep 2023 12:45:00 GMT

Nail Technicians - What can I claim expenses?

Nail Technicians - what can I claim for my expenses?

There are many things you can claim for to reduce your profit before tax.

Above are just a few.... Remember to ask yourself - "did you purchase this for your business?" or "Do you use it in your business?"

This list is not an exhaustive list. If you are unsure if you can claim it, you just need to ask... we're always happy to help with queries.

With our spreadsheet it helps you keep on top of your finances month by month, in preparation of your self assessment tax return.

Preparing for your Tax Liabilities - Sole Traders

Tue, 12 Sep 2023 09:00:00 GMT

Preparing for your tax liabilities

What liabilities could I be liable for.....

Common taxes for sole traders are VAT and Income Tax .

Value Added Tax (VAT)

Being VAT registered is required when your turnover exceeds £85,000 . This is the threshold you HAVE to register for VAT however you could opt to be VAT registered if you wanted.

The best way to prepare for this liability is to add the last 4 quarters liability and divide it by the last 12 months turnover then multiply by 100. This will give you a percentage that you can set aside each month from your invoiced turnover. An example can be seen from my last blog for Limited Companies .

Personal Income Tax

Personal income tax can be tricky - this depends on your taxable income...

Currently the tax bands are as follows

Personal allowance (earnings between £0 - £12,570) 0%
Basic Rate (£12,571 to £50,270) 20%
Higher Rate (£50,271 to £125,140) 40%
Additional Rate (over £125,140) 45%

If you are using one of my spreadsheets the first tab will show you a rough guide of your profit. This will give you and indication of what tax you need to set aside. The safest option on your first year of trading is to set aside 20% for below £50k, 40% for £50k+ and 45% for £125k of your all profit regardless.

If you use a software there will be a profit amount on your P&L report.

Just be mindful if your tax liability exceeds £1000 you are then required to pay a further 50% by January and another 50% by July to cover your Payment on Account .

This is not a fool-proof way of saving for your tax and there will be differences - however this will cover the majority of your liability and relieve some of the stress. After all if you were employed you would never have received this money anyway. So removing it before it is spent is the best practice.

*Taxes are subject to change and this is correct as of September 2023 - please seek advice from an accountant for up-to-date information.

Preparing for your Tax Bill - Limited Companies

Tue, 05 Sep 2023 17:30:00 GMT

Preparing for your tax bill

Tax - who has to pay and how much...

All UK Limited Companies have a tax responsibilities.

This is commonly Corporation Tax and VAT .

Corporation Tax

Corporation Tax as of today stands as 25% of profit. Check with your accountant if this is still applicable.

My top tip for preparing for this firstly take a look at last years profit . Now check your year-to-date figures compared to last year - most software will have this report.

Is it the same? Is it more? Is it less?

Most companies plan on growth, so if your profit is less or the same - this will need investigating. (Another blog to come later on investigations)

Use the difference to prepare your tax.

Example -

Last year in April profit was £5000

This year is £7000

Last years corporation tax for April would have been £1250

This years will be £1750

Please note - All your transactions have to be fully reconciled each month for you to check your profit and set aside what is needed for your Tax Bill.

Or a simpler way could be to set aside what has been paid previously with your expected growth percentage added on.

Value Added Tax (VAT)

Is a little easier - add the last 4 quarter bills together and divide by your invoiced amount multiplied by 100. This will give you a rough percentage of your VAT liability.

Example -

VAT Liability

Q1 £12,500

Q2 £13,500

Q3 £12,500

Q4 £11,500

TOTAL £50,000

Turnover £350,000

50,000/350,000x100=14%

Personally I'd advise to round this to 15% to put aside.

Note - This is by all means is no way to 100% cover your liabilities and there will be differences, however this will mean you have covered the majority of your liability. If you have surplus you could leave it to roll over for the next bill or take it out and reinvest into your business. If you find you don't have enough, recalculate.

Need help to organise your income and expenses?

Sat, 11 Feb 2023 13:00:02 GMT

Do you struggle with your Income and Expenses?

I can take all the stress away from your Self Assessment Tax Return.

How, I hear you ask?

For just £39** a year you can have access to your very own spreadsheet, where you can enter all your income and expenses... This can be completed as and when you like. I advise to at least complete it once per month while the information is still fresh in your mind.

In the following April, I will need your business bank statements and I can then prepare your tax return* and submit for just £180.**

Once submitted you will know exactly how much tax you have to pay in January! Also if you need to find a Payment on Account or whether its just your tax liability.

If you'd like to know more about how to get your hands on your very own spreadsheet, please get in touch today!

*If you are employed I will also need your P60.

** Prices are current as of 01.02.2023 and are subject to change.

Dates for your Diary - Self Employed

Wed, 01 Feb 2023 18:36:47 GMT

Important Dates for your Diary - Self Employed/Sole Traders

If you are trading self employed and have earned over £1000.

You need to register as Self Employed - Registration deadline is 5th October.

If you are planning on filing your self assessment via a Paper Tax Return (which is being fazed out soon) - your deadline to return is 31st October.

Online Tax Return Submissions - your deadline 31st January but be warned...

You also have to PAY by 31st January too . If you submit on the deadline day your online account takes 24/48 hours to update. Therefore you have to pay before they confirm your submission is correct.

The benefits of submitting your return early...

You have more time to save to pay your tax bill, although it is advised to set aside 20% of ALL your earnings when you first set up as self employed. It really is a good habit to get in to and you will always have enough for your income tax.
If your tax liability is over £1000 you are then required to make a 'Payment on Account' - find out more on a previous blog.
Just because you have submitted your tax return early, DOES NOT MEAN YOU HAVE TO PAY SOONER . So why put it off, why leave it to chance that you can afford it?

By using a Starling Bank , you can set a 'Space' where you can easily transfer 20% to, where its out of your sight, out of your mind... No risk in spending it if it's can't be seen.

What are you waiting for. Get your accounts up to date, ready for April. Get it submitted and take that stress away. If your tax bill is higher than expected you have 10 months to save to pay it.

Self Employed Checklist

Mon, 08 Aug 2022 18:52:08 GMT

Self Employed Start-up Checklist

First things first! Congratualtions on building your dream!

Registering Self Employed with HMRC should be top of your list. You can find the details on how to register as self employed here

You need to register as self employed no later than the 5th October in your businesses second year. Earlier is best.

Keeping all records! You need to keep a record of all your sales and your business purchases. Your total sales is called your turnover. Your purchases are offset from your turnover leaving you with your profit. Profit is what you are taxed on. So keeping your receipts is VITAL these should be wholly and exclusively business related. You can find more information on self employed business expenses in a previous blog - Self Employed Expenses

Bank Accounts. There is no need to get a specific 'business bank account' however a separate bank account really does help with your business cashflow (and I don't really need to see where you get your takeaways, where buy your lingerie, or where you bet on the football). There are now free business bank accounts out there such as Starling Bank . Starling is recommended by myself purely because its free (Unless you deposit cash) It also has 'Spaces' which is a great business tool to keep your money together, however separate your Tax Bill Space. When starting up I always recommend when you are paid by your customer, you immediately move 20% of that income to a space in the bank. This is then used when its time to pay your Tax. If you were employed this is how you would be paid right? You're automatically paid your Net Income and your Employer pays your Tax on your behalf. This works exactly the same. The benefit of working like this means, you will ALWAYS have enough money to pay your tax bill !

Business Naming is a really hard decision and not one to take lightly. You can't foresee the future but you can prepare if your dream business is likely to expand. Do you want to employ staff in the future? Would you like to expand your services in the future? Your Brand is key for customers to identify you from your competitors. Make it the right one from day one....

Accounting help and Support.

There are so many questions from day one. The government website has a mountain of knowledge but its mostly hidden within vast amounts of other information, most people read and feel information overload. How to register, which software to use, how do I invoice, how to keep records, what can I claim, how do I claim... The thing with accountancy, the regulations change so often its hard to keep up. For example Making Tax Digital is coming to Self Employed soon. Have you heard of it? Do you know whats going to happen or how it will effect you... Keep posted for the next blog.

Laura

Holiday Entitlement

Mon, 25 Apr 2022 15:24:44 GMT

How much holiday are you entitled to?

Almost all workers are legally entitled to 5.6 weeks paid holiday a year.

This includes Agency workers, Irregular hours workers, Zero-hour contracted workers.

Employers can include bank holidays as part of this statutory annual leave.

Full Time

Most employees who work 5 days per week are entitled to a minimum of 28 days annual leaver per year.

Part Time

This will be pro-rata'd so if you work 3 days per week your leave will be (28/5)x3 which is 16.8 days.

Irregular hours

Shift workers are entitled to time off for every hour they work. This entitlement can be worked out using the link below.

Bank Holidays

Bank holidays do not have to be paid time off. Employers can include these within your entitlement.

Other aspects of holiday entitlement

All contracted employees have the right to get paid leave, accrue holiday days during maternity, paternity and adoption leave, accrue holiday whilst off sick, request holiday at the same time as sick leave.

Holiday Entitlement Calculater

#agencyworkers #zerohourcontract #fulltimeholiday #parttimeholiday #bankholidays #payroll #holidaypay #holidayentitlement

Payroll and New Start Check List Download

Sun, 17 Apr 2022 17:00:03 GMT

PAYE and Payroll for employers. Including New Starter Check List Download

Intro

If you are employing staff, you are legally abliged to operate PAYE as part of your payroll. PAYE is HMRC's system to collect Income Tax and National Insurance. Unless your staff earn less than £120 per week you will need to register for PAYE.

Payments and Deductions

When paying those employees who earn more than £120 per week, you need to pay staff through payroll and take deductions for PAYE.

Payments to staff should include their salary or wages, as well as any bonuses, sick or parent pay.

Reporting to HMRC

If you run payroll, this should be made to HMRC on or before each payday.

Payroll software can be used - we use Brightpay.

This will calculate how much tax and NI each employee should pay as well as the Employer amount.

Paying HMRC

After deducting tax and NI from staff you will then need to forward that payment onto HMRC.

New Employee? Print the starter checklist here .

Cash vs. Profit

Sun, 10 Apr 2022 11:00:03 GMT

If my business is in profit - where is my cash?

It's possible for your business to make a profit but have no cash .

How can that happen?

Profit is an accounting concept, while cash is the amount in the business account.

Profit doesn't pay the bills.

You can have assets, like accounts receivable (money owed to you by customers), but if you can't collect what's owed, you won't have cash.

If you need help understanding your business’ finances, just contact me today.

Why use cloud accounting?

Sun, 03 Apr 2022 16:00:05 GMT

Why use a Cloud Based Accounting?

Cloud Based Software will bring your business up to date.

Be able to make real time financial decisions for your business on live information.

Not just that the Government are making it compulsery for all business to be live in Making Tax Digital by 2024. Check when to regisiter for Making Tax Digital for Income Tax here

So how will a cloud based software help and why use cloud accounting?

Xero

Xero ensures you have access to your business accounts wherever you are in the world. With the right Bookkeeper on hand (Me!) you can link your bank live to Xero meaning you can see your business banking live. You can send professional sales invoices straight from Xero to your clients and with a click of a button the client can pay that invoice. No more waiting to be paid!

You can email your business purchase receipts directly to Xero via an app called Hubdoc (this is free with every Standard User Subscription on Xero).

I can set you up a unique email address to forward those receipts to... Never ever lose that fuel receipt ever again, because you simply snap a picture of it, send it to the email address and its forever digitalised into your accounts.

VAT Registered? Xero can submit your VAT submissions straight from Xero!

What more can you need from a software that gives you access to your business accounts at a touch of a button.

Cloud Accounting is the future of accounts. With the right Bookkeeper and Accountant Xero can help you grow your business.

How to pay your Self Assessment Tax?

Sun, 27 Mar 2022 17:00:03 GMT

How do I pay my Self Assessment Tax Bill?

You can make payments to your Self Assessment Tax by loggin into your Government Gateway. This is usually your UTR number and Password that was set up when you registered.

You can make regular payments to your account to manage your cashflow. You can also get help if you can't pay your tax bill.

I always advise putting 20% of your turnover away at source. So when you receive that income remove 20% ASAP into a separate account and leave it there. With expenses offsetting against your income you are almost certainly going to have more than enough to pay your bill at the of the year. Especially if you get hit with a Payment on Account in your first year. This can be a shock and unexpected when you first submit your tax return. See my Blog - Payments on Account .

Just a heads up - Online payments will be slow during busy times! Ie. January and July. Don't leave paying your tax to the deadline date. You could end up with a fine if you can't submit it on time!

The Deadlines for paying your tax bill are usually:

31st January - for the prior year ending 5th April.
31st July - for the second payment (Payment on Account)

You can pay by:-

Always check if your payment has been received by logging onto your account. Payments should be should show 3-6 days after payment has been made.

Registering and Sending a Self Assessment Tax Return

Mon, 21 Mar 2022 19:30:03 GMT

Registering and sending a self assessment tax return.

You need to register if you did not send a tax return last year and have started trading from 6th April.

There are different ways to register if you’re:

If you’re new to Self Assessment, you’ll need to keep records (for example bank statements or receipts) so we can submit your tax return correctly.

Sending your return

Your Self Assesment can be submitted from 6th April and although you do have until 31st January to submit that account you also have to pay the bill by 31st January ever year. So it's always bst practise to submit your accounts as early as possible each year. Giving you 9 months or so to save for that tax bill. NO SURPRISES.

How to get your SA302

Wed, 16 Mar 2022 09:38:49 GMT

What is a SA302 form and how do I get it?

What is an SA302 and where can I get mine?

I'm asked this question frequently.

Well an SA302 is a full breakdown of all your income and taxes.

For example:-

If your are employed and self employed, you should have submitted your SA300 with both employment details, these will be on your SA302.
If you have underpaid or overpaid any tax.
Your personal allowance details.

Who might need an SA302.

Well lenders generally ask for this form, if you're applying for a loan or mortgage you might need this to prove what has been submitted for your income.

Where can you get hold of your SA302?

Log in to your HMRC online account by clicking the link. Your Government Gateway is usually a 12 digit number with a password you created at the start.
Go to 'Self Assessment'
Go to 'More Self Assessment Details'
Choose 'Get your SA302 tax calculation'
Select the option to print your tax calculation and tax overview.

Hope this helps those who need their SA302.

Self Assessment Late Fliling Penalties

Mon, 14 Mar 2022 12:25:39 GMT

Late filing penalties are now being issued.

If you failed to file your 2020/21 Self Assesment tax return by 28th February 2022, you will now be charged a late filing penalty . Interest has also been charged on all outstanding liabilities from the 1st February.

So yes - the government did give people extra time to submit their self assessment tax return as the "norm" filing deadline is 31st January. However they have charged you interest for filing late on any tax that has been outstanding. If you failed to file by 28th February you will now face a fine of £100. This will also incur interest.

Why not save the stress of your Self Assessment Tax Return by submitting it in April. Get your accounts to me by the end of April, get them submited, know you tax liability by May and have 9 months to save that amount. Have 9 months to prepare for if you have to Pay on Account. That first year of paying on account can be costly. Find out more about Payments on Account from our previous blog.

So don't wait until deadline! Get it prepared, get it submitted and "know your figures to grow your business!"

To find out more about penalties click here.

Self Employed Expenses

Mon, 07 Mar 2022 19:30:04 GMT

Expenses to claim if you are self employed.

The rule of thumb is "Wholly and Exclusively for Business Use".

If you have purchased an item for either resale or materials for your trade then you can generally claim that back.

For Example:

You are a hair stylist... you purchase a hair colour and peroxide that costs you £40.

That £40 can be off-set against your income.

You offer mobile services... your mobile phone bill can be used to offset your income. Only the business use can be offset against income. However the personal percentage can be removed from the claim. So if you mobile phone bill costs you £100 per year and you use that phone for 50% business use then £50 can be claimed as business expense.

Examples of Expenses;

Materials/Cost of Sales
Utilities
Rent
Telephone and Broadband
Premises repairs and maintenance
Stationary and Postage
Tools
Workwear
Travel Cost

Bear in mind that all business purchases will require a receipt to reclaim. You can find out more in out Keeping business records blog.

Keeping Records

Mon, 21 Feb 2022 19:30:04 GMT

Keeping your pay and tax records

How to keep your records?

Currently there are no rules for Self Employed on how you must keep your records, however this could change as soon as 2024 when Making Tax Digital comes into force for the Self Employed. Currently you can keep the hard paper copy, digitally process them or use a software program such as Xero.

HMRC can charge you a penalty for inaccurate accounts.

Lost or destroyed records

Try to keep as many copies as you can. This is where using Xero is advantageous. Snapping a photograph of all your receipts there and then and sending them straight to Xero really does relieve all the year end fuss that business owners find when their paperwork and receipts are shoved in a drawer until the end of the year. Do you find that when it comes to the end of ther year you are scratching around in the bottom of your bag for all your receipts?!

If you cannot prove your tax claim you may find you have to pay interest and penalties as you cannot prove your figures.

How long do I have to keep my business records?

How long does depend whether you sent your return on time; however if you have submitted your return on time then 22 months after the end of the tax year the tax return is for.

For example;

If you've sent your 2020/21 tax return onlne by 31st January 2022, you will need to keep your records until at least the end of January 2023.

Tax returns that were submitted late will need to be kept for at least 15 months after you submitted the return.

Who should Submit Self Assessment Tax Returns

Mon, 14 Feb 2022 19:30:04 GMT

Who must send a tax return? When should they be submitted?

You must submit a tax return if you were:

Self Employed as a 'sole trader' and earned more than £1000 (Before taking off anything you can claim on relief)
a partner in a business partnership

You will not ordinarily submit a return if you are employed or solely claiming a pension. However you may need to if you have other sources of income such as:

Renting out properties
tips or commission
income from savings, investments or dividends
foreign income

If you are not sure you can check here .

Other reasons to submit a return.

Claim some income tax reliefs
prove you're self employed, for example to claim Tax-Free Childcare or Maternity Allowance.

If you get Child Benefit

If yours (or your partners) income exceeds £50,000, you may need to send a return and pay the High Income Benefit Charge.

How to pay your Corporation Tax

Wed, 09 Feb 2022 11:27:45 GMT

Corporation Tax and how to pay?

What is corporation tax?

How do I pay for my corporation tax?

Corporation Tax

Are you trading as

Limited Company
a club, co-operative or other unicorporated association (community group or sports club)

You don't get a bill for corporation tax. There are things you must do to work out what you have to pay by completing and filing your return.

You must register for corporation tax.
Keep your accounting records.
Pay corporation tax or report even if you have nothing to pay - your deadline is usually 9 months and 1 day after the end of your "accounting period"
Filing your company tax return by your deadline - this is usually 12 months after the end of you accounting period.

Profits you pay Corporation Tax on

Taxable profits for Corporation Tax include the money your company or association makes from:

doing business (‘trading profits’)
investments
selling assets for more than they cost (‘chargeable gains’)

If your company is based in the UK, it pays Corporation Tax on all its profits from the UK and abroad.

If your company isn’t based in the UK but has an office or branch here, it only pays Corporation Tax on profits from its UK activities.

How to pay your Corporation Tax

Make sure you pay HM Revenue and Customs ( HMRC ) by the deadline. They may charge you interest if you do not pay on time. They’ll pay you interest if you pay your tax early.

Pay Now!

Payments on Account

Tue, 08 Feb 2022 19:30:03 GMT

What are they and why do you have to pay payments on account?

If your Self Assessment tax bill exceeds £1000 then HMRC will in fact ask you to pay in advance for your next tax bill. These payments will be expected on 31st January of the current tax year,

for example;-

Your tax bill for 2020/21 is £4000.

You will be expected to pay on 31st January 2022 £4000 for your current tax bill AND £2000 for next years tax bill (2021/22) followed by a second payment of £2000 on 31st July 2022. Thus making your tax bill far more than expected.

However these payments will in fact mean your tax is paid in advance.

You can always check what payments have been made and what are expected on your governement gateway account. If payments are aren't made then interest will incur on those late payments, so definitely worth checking on your gateway for those.

If you already know your tax bill will be reduced in the following year you can reduce those payments on account but be warned , if your tax bill exceeds the reduced amount interest will be added!

If you tax bill is less the following year, you can request a refund of the overpayment.

Hello and Welcome

Mon, 07 Feb 2022 21:02:50 GMT

Where it all begins...

Hello and welcome to Calculated Accountancy.

Established in 2020, I am a local accountant bringing businesses into the digital world with their accounts. Don't be afraid of that word "Digital" it really isn't as scary as it sounds. With software such as Xero and Hubdoc it's made ridiculously easy... With the click of a button on your mobile phone all your accounting requirements can be met.

I'm here to help you every step of the way. Being a Certified Xero Adviser I can help set up your account and help you manage and maintain it.

How great would it be having your business accounts up to date? Knowing exactly where your business is so you can make informed financial decisions there and then.

If you would like help with your accounts, you know where I am!

Laura Merrick