Blogs

As a follow on to our previous artilce entitled Companies House Identity Verification Rules Explained, this artciles looks to the future, and focuses on the additional changes proposed to be implemented in April 2028!

This blog will explain whether a limited company in the UK is legally required to hire an accountant.

For years, Companies House has largely operated as a passive registrar — accepting information at face value and relying on businesses to submit accurate records. However, in recent years this has been changing, and quickly! And at the centre of these reforms is mandatory identity verification.

Forex trader tax is a topic that can seem complex – particularly as different countries have different rules around taxation on forex trading gains. If you’re looking to discover the rules on forex trader tax in the UK, look no further. We’ve put together a guide on how forex trading is taxed, your record-keeping and reporting obligations, how spread betting is different from forex trading and more.

We’re often asked, “Can I change from sole trader to limited company?” The answer is absolutely yes. Read on for why you may want to switch from a Sole Trader to a Limited Company, the benefits of doing so, and what you can expect during this transition.

If you employ staff in the UK, even if it’s just one person, then auto enrolment for pensions is a legal responsibility. In this guide, we will use will use guidance provided by HMRC and The Pensions Regulator (TPR) to briefly outline: What Is Auto Enrolment? Who Is Impacted? How Do I Choose a Pension Scheme? What Steps Need to Be Taken to Ensure Compliance Initially? What Steps Need to Be Taken to Ensure Compliance on an Ongoing Basis? How Much Does It Cost?

Unlike employees, sole traders do not have tax deducted at source. There is no employer calculating PAYE, no automatic deduction for National Insurance, and no reminder each month that part of your income is not really yours. Instead, tax builds up quietly in the background until a large bill arrives – the tax year AFTER the income was earned. This article therefore explains why it is essential for sole traders to set aside sufficient funds for tax, and how you can estimate a “safe” amount to put aside during the year. It is written for UK sole traders and focuses on Income Tax, National Insurance, Payments on Account, and the upcoming changes under Making Tax Digital.

This article briefly explains how pensions work, the main types of schemes available, and the tax advantages that accompany them.

In recent years we have noticed a higher incidence in the volume of self-assessment personal tax returns being checked.  This article considers the areas that  HMRC typically check, why, and common issues to try and avoid!

Good bookkeeping is not only a legal obligation but is also essential for: managing cash flow, maximising tax efficiency, and building a sustainable business. This guide will take you through the fundamentals of bookkeeping at a high level, focusing on accountancy and tax advice tailored specifically to UK sole traders.

If you are a self-employed sole trader or earn income from property then you need to understand the new rules for Making Tax Digital (MTD) for income tax!  The new rules start from April 2026, and they will require you to submit your financial records to HMRC throughout the year, in addition to still submitting a self-assessment tax return.  Therefore it is essential to keep your accounting records up to date throughout the year (instead of just doing this at the year end), and if you don’t have time to do this yourself, then it is definitely a good idea to hire an accountant to help you!

If you are a UK taxpayer and you haven’t filed your self-assessment personal tax returns for one or more years, you’re not alone!   In this article, we explain the consequences of failing to submit your tax returns, how interest and penalties are calculated, and what steps you can take to resolve the situation and bring your tax affairs up to date. We also explore why engaging with a qualified accountant can be an essential part of getting back on track!

Director loans are a popular yet often misunderstood financing method used by small business owners. If you’re a company director who has taken, or is considering taking, money out of your company (that isn’t structured and subject to tax as: a salary, dividend, or expense reimbursement), then you are effectively using a Director Loan.  It is therefore important to understand these rules and the costs involved.

One of the most common questions we receive when clients are setting up as a self-employed sole trader for the first time, or indeed for existing businesses who transfer into us is: “Do I need to use a separate bank account for my Sole Trader business?” The article explains the benefits of using a separate bank account for business transactions as a self-employed sole trader.

The article helps the owners and managers of  limited companies to consider the tax and operational impacts of managing a UK company while living and working overseas.

This guide will explain how to correct mistakes on your Self Assessment tax return, detail the deadlines for making these corrections, and discuss the implications of not correcting errors. Additionally, we’ll highlight how QAccounting can support you in ensuring your tax return is accurate.

In the UK, driving for Uber means you are classified as self-employed. This status requires you to handle your tax obligations with care. This guide will walk you through what taxes you need to pay, how to file them, and how to make sure you are taking advantage of all allowable expenses to reduce your tax burden.

Understanding and managing payments on account is crucial for taxpayers within the self-assessment framework. Effective planning and budgeting are key to handling these payments without disrupting your financial stability. With careful management and the right tools, you can ensure that payments on account do not become a burden, maintaining smooth financial operations throughout the year.

A side hustle refers to any form of secondary income beyond one’s primary job. While this can be a lucrative way to supplement your income, it also brings additional tax responsibilities. Understanding how income from a side hustle impacts your overall tax situation is crucial. This additional income can potentially move you into a higher tax bracket, affect your tax deductions, and increase your overall tax liability.

Running a limited company can be extremely rewarding – but also challenging. As well as the creation, marketing and sales of your products or services, there are many other elements to consider: logistics, customer service, payroll, HR and more. One area that many small businesses find particularly challenging is managing their accounts. From day-to-day bookkeeping to filing and paying taxes, it’s an area with a great deal of regulation – and one that’s vital to get right. While some choose to do this themselves, it can be stressful and time-consuming, with the added worry about what will happen if you get things wrong. Hiring a limited company accountant can take this stress away, and choosing online limited company accounting services can still make things easier.

The CT41G form—the “Corporation Tax—New Company Details” form—is a vital piece of paperwork for UK businesses. When a business registers with Companies House, it triggers a notification to HMRC, which sends a Form CT41G to the business’s registered offices. The purpose of the form is to provide HMRC with confirmation of the company’s existence and provide you with the relevant tax information.

Starting a business can be expensive. While some have money set aside to do so, others opt for bank loans to make their dream happen. However, there is another option, and that’s the crowdfunding approach. But do you pay tax on crowdfunding? Is crowdfunding tax deductible? We’ve put together this guide to answer all your questions.

HMRC uses Self Assessment to collect income tax. While those who are employed generally have tax deducted automatically from their wages, pensions, and savings, the system works differently for those who earn income in other ways. Self Assessment applies to self-employed individuals, partners in partnerships, and certain other individuals with complex tax situations. It requires individuals to register with HMRC for Self Assessment, complete an annual tax return, and pay the tax they owe by the deadline of October 31st for paper returns and January 31st for online returns following the end of the tax year. In some cases, payments on account may be required, meaning an individual has to make two advance payments towards their next tax bill. Tax returns can include income of various types, including self-employment income, capital gains, and rental income. Individuals must be careful to understand when both their Self Assessment returns and their payments are due to avoid incurring penalties. If you’re wondering, “What happens if I pay my Self Assessment tax late?” read on.

The P60 is a crucial form for all UK employees. But what is a P60 used for, why is it so important to keep it, and what format should it be in? Read on to have all your P60 questions answered…

If you’re looking for information about corporation tax in the UK, explained in an easy-to-understand way, you’ve come to the right place. Read on to find out who pays corporation tax in the UK, how it is calculated and filed, the penalties for non-compliance, and top tips to keep on top of your corporation tax obligations.

In December 2023, the Office for National Statistics announced that, in the first two thirds of the year, the deficit in public sector spending had reached £116bn. This figure was £27bn higher than the same period in the previous year. But why is the gap between income and spending in public sector finance widening? What are the implications? How can these challenges be addressed? Read on to find out…

Gone are the days when management accounting simply involved bookkeeping and cost accounting. The business environment has become increasingly complex, and accounting firms and processes must evolve to keep up. But what is the future of management accounting? Read on for our top accounting trends – including the role of technology in accounting.

We all know about the pressures that doctors face. Dealing with a challenging, sometimes emotionally-charged role that requires an incredible amount of dedication and concentration means it’s vital that you find the time to switch off and enjoy a good work-life balance. However, it’s also important to manage your finances the right way, whether you’re employed or own your own practice. In this blog, we take a look at the specific financial challenges of the healthcare sector and the role that specialised accountants have to play for doctors.

A successful dental practice requires many things. You’ll need highly trained dentists, of course. You’ll need a team that gives even the most nervous of patients confidence and reassurance. Don’t leave financial management off this list. Strong financial management can be the difference between a successful dental practice and one that struggles. Read on to learn more about the unique financial needs of dental practices, and why hiring a specialist accountant for dentists could be the change you need for your practice to succeed.

If you’re thinking of getting professional help with your taxes you may have asked yourself the question “How much do accountants charge for tax returns?”. Fees charged by accountants are a common concern for those seeking expert help and understanding the factors that influence these costs is essential for making informed decisions. In this article, we discuss how to navigate the pricing landscape in order to make an informed choice.

If you’re setting up a business, you’ll be aware that there are certain startup costs you’ll need to cover. But are you aware of exactly what these costs will include, and how much they will set you back? Read on for our guide to how to account for startup costs – including the need for accurate accounting from the outset.

Due to the different tax treatments and rates of tax which apply between the income tax and capital gains tax systems it is sometimes important for someone who is self-employed to understand the “badges of trade” tests. Normally it will be reasonably obvious whether a transaction is “trade” related and subject to tax under the income tax system, or “capital” related and subject to tax under the capital gains tax system. But occasionally transactions occur which cross the boundaries between these two and in the absence of “trade” being specifically defined in the legislation, the courts apply the badges of trade tests in making this determination.

If you’re a sole trader, “Do I need an accountant?” may be one of the questions you regularly ask yourself. If this is the case, read on: our guide will help you to understand how important an accountant is for a sole trader, your tax responsibilities, and how to find the best accountants for sole traders.

A limited company is a distinct legal entity that is separate from its owners or shareholders. It is a business structure commonly chosen by entrepreneurs and business owners for its advantages in terms of liability and taxation. The term “limited” indicates that the liability of the company’s shareholders or members is limited to the amount they have invested in the company. This means that in the event of financial difficulties or legal issues, the personal assets of the owners are generally protected, and their liability is confined to the value of their shares. In this article, we take a look at the differences between a Private Limited Company vs a Public Limited Company.

Navigating the diverse landscape of business structures in the United Kingdom involves understanding the nuances and implications associated with each entity, including the critical aspect of Limited Company Accounting. From the widely adopted Private Company Limited by Shares (Ltd) and Public Limited Company (PLC) to the specialised structures of Private Company Limited by Guarantee (LBG) and Unlimited Companies, entrepreneurs and organisations face crucial decisions in determining the most suitable form for their ventures. Each category comes with its own set of characteristics, legal considerations, implications for liability and governance, and distinct requirements in accounting and financial reporting. In this article, we take a look at the different types of companies in the UK, with a special focus on their accounting practices. We delve into the key features of Private Companies Limited by Shares, Public Limited Companies, Private Companies Limited by Guarantee, and Unlimited Companies, discussing their structures, purposes, advantages, challenges, and the nuances of Limited Company Accounting associated with each.”

How do you pay yourself as director of a limited company? You may be pleased to learn that the method – and to an extent the amount – are up to you. Let’s look at some of the finer details on how directors get paid.

In the world of work, freelancing is an increasingly popular option. The promise of flexibility, unlimited earning potential and complete control over the way you work is a hugely attractive prospect for many.

Have you got a head for figures? What about a strong worth ethic, flexibility and self-discipline in spades? If this sounds like you, you might be in a good position to start your very own accountancy company.

As a self-employed worker in the construction industry, a percentage of your earnings will be withheld at source by the contractor you’re working for.  This money goes to the HMRC as advance payments towards your tax and National Insurance obligations. The contractor will send this money directly to HMRC – it will be either 20% or 30% of your gross pay depending on your CIS registration status.

Are you a limited company director looking to find out what your responsibilities are when it comes to year end accounts?

Finances in property and real estate can be seriously complicated, even to a seasoned accountant. That’s why we recommend you seek the help of a specialist property accountant to keep everything straight. Let’s look at some of the basics involved.

Sole trading is a great choice for many self-employed people, not least because accounting for sole traders is simpler than accounting for limited companies. But what records does a sole trader need to keep? Let’s find out.

If you’re thinking of joining the growing ranks of those working freelance in the UK, congratulations! The tax obligations a freelancer faces all depends on which business structure they’ve chosen – sole trader or limited company. Here we look briefly at the tax rules of each to help you decide which is right for you.      

Sole trader accounting can seem challenging, especially if you’re used to working as a salaried employee and having your monthly wage arrive in your account with the relevant deductions already made! But don’t worry – we’ve put together a simple guide to sole trader tax obligations.

Running a small business is notorious for being one of the most demanding yet rewarding professions a person can choose. But are you cut out for it? We have summarised some of the pros and cons of running a small business to give you a balanced view.

Among the self-employed, working from home has long been the norm. Some of us, though, are relatively new to it. Discover which expenses you can claim, and what tax reliefs you are entitled to when working from home here.

The number of people becoming self-employed seems to be on the rise, but the big question is – should you be joining them? Here’s a rundown of the pros and cons of becoming self-employed to help you decide.

You should be wary of the pitfalls that can occur when completing your Self-Assessment. These common mistakes could cause delays or trigger an HMRC investigation. Find out how to avoid making those mistakes here.

Operating as a sole trader is a very popular choice and has numerous benefits. Read our simple guide on how to register as a sole trader and the responsibilities that comes with it.

If you work for an employer, tax is relatively simple. But if you’re self-employed, you’ll need to complete an annual Self-Assessment tax return. Find out what this involves here.

Operating as a Limited Company is a popular choice for small businesses. Find out what a limited company is and the benefits of forming one here.

Accounting for startups isn’t always as simple as taking on an existing business with lots of setup and structural aspects to consider. However, on the finance side, there are incentives on offer in the UK to help these budding enterprises grow. 

More and more people are choosing to start their own business. Should you register as a sole trader or form a limited company? Find out more in this post.

Whether it’s down to the pandemic or you’re dissatisfied with your current role, many people are considering starting out of their own. Take a look at what it means to be a sole trader.

Self-assessments. We have all heard of them, you maybe even know what they are. However, here at QAccounting some of our most frequently asked questions are about self-assessments. So below we have outline some of the most common questions we get asked, and the answers we get so tired of giving… just kidding.

Here at QAccounting we are part of one of the UK’s largest contractor service providers. We started operating over a decade ago (around the same time DFS started their first sale) and have been dedicated to serving self-employed professionals ever since. One of the perks of choosing and accountant like QAccounting is that we offer all of our accounting services online.

How to find an accountant who genuinely specialises in IR35 If you’ve been shopping around for a contractor accountant recently, you may have seen a few marketed as ‘IR35 accountants’....

Reform to the IR35 rules has been paused, but only until April 2021. According to HMRC statistics, only around 10% of limited company contractors who should comply with the off-payroll...

What are your responsibilities as a limited company contractor? With nearly 5m people now working for themselves in the UK, there are more freelancers, contractors and small businesses on these shores...

Our best tips for Staying Outside IR35 From April 2020, contractors working with medium and large private sector companies will no longer be able to determine their own IR35 status....

How could IR35 reform impact the oil and gas sector? While statistics tell us that Britain’s oil and gas sector accounts for around just 1% of the oil produced globally,...

All contractors will at one time find themselves on the bench. This is the period between contracts when your latest assignment has finished, and your new contract has either yet...

Switching to a New Accountant With the hangover of New Year’s Eve now a faint and distant memory, you will have undoubtedly witnessed the barrage of social media posts pledging...

Pecuniary liability principle Under the pecuniary liability principle, where an employer settles a personal bill on behalf of an employee, whether Class 1 or Class 1A NIC are payable, depends...

HMRC penalties could be suspended – conditions apply Where a tax return contains an inaccuracy that was due to the taxpayer failing to take reasonable care, then that error is...

What are the new off-payroll rules? Up until now, contractors earning a rate of £220 per day or more or on contracts of more than six months have had to...

The purchase of a property through a business can be very tricky and there are numerous things to think about if deciding to do so. Specialist advice is recommended. If...

The simple answer here is no. In fact, contracting via an agency can sometimes cause problems in the event of an IR35 investigation. When dealing with an agency, there will...

With Christmas fast approaching, we thought we would let you know about a little known tax loop hole regarding Christmas parties….. HM Revenue & Customs allow a tax exemption of...

The Importance of Contractor Insurance Any professional working as a contractor must be aware of the potential misfortunes that their limited company can endure without the existence of proper contractor...

[lead]I would like to write about something I overheard this week. A couple of contractors were talking about recruitment agencies. I was taken aback by the disregard and disrespect that...

Some thoughts on the wonderful world of networking from Eugene Clarke of TalkBuddy™ You’ve done it! You’ve started your first business and you’re ready to get out there and tell...

In a previous blog, we talked about the essential ingredients of good Business Plan. In this post, we’re going to look at the financial projections that should go along with...

You might be wondering why we’re covering a topic as simple as keeping records. Firstly, let’s establish why you need to keep records, then explain the impact record-keeping has on...

If you’re a Contractor then your accounting options are pretty limited. You either go with one of the big “volume” providers where you’ll simply be a number and never speak...