Accountant questions, answered
Clear, honest answers to the questions we hear most from sole traders, limited companies and the self-employed. No jargon, written by a qualified accountant.
Getting started
Whether you need an accountant, what it costs, and choosing the right one.
Is it worth getting an accountant?
When an accountant pays for itself through tax saved and time returned, when it might not, and the red flags to avoid.
Read answer →How much does an accountant cost in the UK?
Typical 2026 fees for sole traders and limited companies, what drives the price, and how fixed monthly fees work.
Read answer →Do I need an accountant for a limited company?
No, it is not a legal requirement, but directors stay liable. What an accountant handles, the cost, and when to hire one.
Read answer →Do I need an accountant for Self Assessment?
HMRC lets you file free online. When you can DIY, when an accountant is worth it, and why you stay responsible either way.
Read answer →Accountant vs bookkeeper: what is the difference?
Who does what, when you need each, and why many businesses use one firm for both.
Read answer →How to change accountants
Switching is easier than you think. The four steps, and how the firms handle the clearance and handover for you.
Read answer →Self-employed & sole traders
Registering, expenses, your tax return and the payments HMRC takes in advance.
How to register as self-employed
The four steps, the £1,000 threshold, the 5 October deadline, and what it costs (it is free).
Read answer →Who needs to file a Self Assessment tax return?
The self-employed earning over £1,000, most company directors, landlords earning over £1,000 in rent, and anyone with untaxed income or Capital Gains.
Read answer →How to fill in a Self Assessment tax return
The four steps to complete the SA100 online: gather your records, add the right sections, claim what you are owed, then check and submit.
Read answer →What expenses can I claim self-employed?
The categories that count, what HMRC disallows, and the rules on working from home, your car and lunch.
Read answer →Sole trader vs limited company
Sole trader is simpler and more private; a company protects your assets and can pay less tax at higher profits. The differences and when to switch.
Read answer →What is payment on account?
HMRC’s advance tax system: two instalments of 50% of last year’s bill, why the first January bill is bigger, and how to reduce it.
Read answer →What happens if you miss the Self Assessment deadline?
An automatic £100 fine, then daily penalties and more. The full penalty timeline, how to limit it, and how to appeal.
Read answer →Bookkeeping
Whether you need a bookkeeper, and the basics every small business should get right.
Do I need a bookkeeper for my small business?
Not legally, but a bookkeeper keeps your records reconciled and current, the foundation your VAT, accounts and tax depend on. When to DIY, when to hire.
Read answer →Bookkeeping basics for small business
Record every sale and purchase, keep the receipts, reconcile your bank regularly, and keep business money separate from personal.
Read answer →Limited companies
Corporation Tax, paying yourself, dividends and the Companies House admin.
How much is Corporation Tax?
19% up to £50,000, 25% over £250,000, with Marginal Relief between. What it is charged on, when it is due, and how to reduce it.
Read answer →When are limited company accounts due?
First accounts 21 months after incorporation; after that, 9 months after year-end at Companies House, Corporation Tax due 9 months and 1 day after.
Read answer →Can I do my own limited company accounts?
Legally yes, no accountant is required. Why statutory accounts get complicated fast, and when DIY starts costing more than it saves.
Read answer →How to pay yourself from a limited company
Salary vs dividends, the most tax-efficient mix, director’s loans, and the rules that keep you on the right side of HMRC.
Read answer →How much dividend can I take tax-free?
The £500 allowance, the Personal Allowance, and roughly £13,070 tax-free with no other income. Dividend rates and how directors plan it.
Read answer →What is a confirmation statement?
The annual CS01 filing explained: what it covers, how it differs from accounts, the cost, the deadline, and the penalties for missing it.
Read answer →How to close a limited company
Voluntary strike off step by step, the closure routes, the cost, telling HMRC, and the most tax-efficient way to wind up.
Read answer →VAT
When to register, when to leave, and choosing the scheme that costs you least.
Do I need to register for VAT?
You must register once your rolling 12-month turnover passes £90,000. The threshold, voluntary registration, and what it means for sole traders.
Read answer →How long does VAT registration take?
Around 10 working days for a straightforward online application, though HMRC allows up to 30 days, longer if it needs manual review.
Read answer →Can I deregister for VAT?
Yes, voluntarily once your expected turnover falls below £88,000, or you must if you stop trading. How to cancel, and what your final return covers.
Read answer →The VAT Flat Rate Scheme explained
How the fixed-percentage scheme works, who can join, the limited cost trader trap, and whether it beats standard VAT for you.
Read answer →Landlords & property
The tax on rent and on selling, and the deadlines that catch people out.
Do I pay tax on rental income?
Yes, on profit above the £1,000 property allowance. The expenses you can claim, the mortgage interest rules, and how to declare it.
Read answer →Capital Gains Tax on property
The 18% and 24% rates, the £3,000 allowance, the 60-day reporting rule, when your home is exempt, and how to reduce the gain.
Read answer →Contractors & construction
IR35 status and the Construction Industry Scheme, explained plainly.
What is IR35?
The off-payroll rules explained: inside vs outside, the three status tests, who decides, and what is at stake for contractors.
Read answer →What is the Construction Industry Scheme (CIS)?
How CIS deductions work, the 20% and 30% rates, who must register, monthly returns, and why subcontractors are often owed a refund.
Read answer →Still have a question?
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