Guides

Why have I got two Corporation Tax returns?

If you are in your first year of trading as a limited company it is likely that your financial year runs slightly longer than 12 months. If you set up on the 15th of January 2026, for example, your…

Xero: Account Categories (Chart of Accounts)

When you are reconciling your bank account on Xero you will be attaching a category to all of your income and expenditure. In accountant speak, the category is a nominal code, and the chart of accounts is a long list of all…

VAT Basics Part 3

In the first part of this series, we discussed the mechanics of who pays VAT. The second part discussed when you need to register, whether you might choose to do so voluntarily and the different rates of VAT. In the final part,…

VAT Basics Part 2

In the first part of this series, we looked at the basic principles of VAT and how it is paid to and from HMRC.  Now we are going to talk about whether you should register for VAT. Do I need to…

VAT Basics Part 1

Everyone has probably heard about VAT but it is perhaps not something that everyone will have an understanding of how it functions. In the first of this three-part series on VAT, I talk about the basics of what it is…

What Is Hubdoc?

Xero have an add-on called Hubdoc which allows you to automate a lot of your data entry saving you a lot of time and hassle and allowing you to focus on your business rather than on your admin. Most Xero…

Xero: How to raise invoices

If you have the Ignite package or higher on Xero, you can use it to raise invoices to your clients. It is a quick and easy process and will likely save you a lot of time, especially if you were…

Quickbooks: Checking your bank balance is correct

It is important that for any accounting software, the bank balance as calculated by the software matches the bank balance as imported from your bank account. This is a guide on how to review this on Quickbooks. This can…

Xero: How to reconcile your bank account

Reconciling your bank account on accounting software might sound daunting, but it is usually quite simple. Effectively what you are doing is going down a list of incomings and outgoings in your bank account and classifying them according to the…

Xero: How to add a bank account

This is a short guide on how to add a bank account to the Xero accounting package. From the Accounting drop down menu, select the Bank Accounts option. This will take you to a screen where you will see any…

Understanding Income Tax and National Insurance

Income tax is one of the simplest taxes to understand, but many of us may not have been aware of how it works before we really start to look into it. I would include myself in this, even after I…

Understanding how your personal tax liability is calculated

The first time you get your personal tax return calculation it might be a little bit confusing. The way that it is presented is very logical to us accountants, but without knowledge of the intricacies of the tax system, then…

Why use accounting software?

Why would you want to use accounting software? Why wouldn’t you just let an accountant do all the work for you? There are a few good reasons why you might want to. I’ll list 10 of them below. As well…

Why set up a limited company?

This is the first part in a series of articles I am writing on running a company as these are issues the come up with my clients on a regular basis. When you start up a business, you have a…

When You Don’t Need A Tax Return

In an earlier blog I wrote about tax returns giving examples of who might need to complete a tax return. This month I’m going to talk about when you might not need to complete a tax return. HMRC have been trying…

When is my tax bill due?

If you are required to submit a self-assessment tax return, your bill for the year you are submitting becomes due on 31 January in the year following the end of the tax year. Tax years run from 6 April one…

What is self-employment?

It might seem like there is quite an obvious answer to this, but there are nuances to this question that can affect your tax liability and recently became important when the government announced its coronavirus support packages as some people…

What is my tax code?

Everyone will have a tax code but not many people will understand what it means or what it is used for. I will attempt to give a short explanation of how tax codes work. Generally, most individuals in employment will…

What happens when I enter the higher tax bracket?

Entering the higher tax bracket (total income over £50,270 for the 2022/23 tax year) could be a sign of a promotion or pay rise, or your self-employed business moving from strength to strength. However, there are some consequences to this…

Tax Returns for English as Second Language Teachers

One of my oldest friends, Emma, teaches English as a second language to online students. She mentioned recently that questions around tax and accounting often come up on her teaching groups, and so I’ve written this article to help those…

Self-assessment tax returns – payments on account

When you submit your personal self-assessment tax return, you may be asked by HMRC to make payments on account. This can be slightly confusing as you are being hit with your tax bill and then being asked to pay additional…

Property rental basics

If you’re renting out a property, then this is a taxable activity, and you need to complete an annual self-assessment tax return. There are different requirements if you are renting out property through a company, we will just deal with…

An Overview of the New State Pension

Note: This blog relates specifically to the New State Pension, which applies to: Men born on or after 6th April 1951 Women born on or after 6th April 1953 If you were born before these dates, you’ll be entitled to…

How to Take Money Out of a Limited Company

There are several ways to take money out of a limited company, each with different tax implications. I’ll summarise the main options below, but feel free to get in touch if you’d like tailored advice. Loan Repayments If you’ve loaned…

How to Pay Your Personal Tax Bill

The end of January marks both the deadline for filing your personal tax return and, most importantly, payment. Paying Your Tax Bill We are often asked how to pay the tax bill. Previously it used to be quite complicated, but…

How to Pay Your Corporation Tax Bill

Any company that makes a trading profit will need to pay Corporation Tax. For most small businesses, this is a straightforward process - but it’s important to understand the deadlines and how to make payments correctly. Corporation Tax Rates for…

How to Close a Company

It’s a sad fact that many businesses close within their first year. Not all closures are negative - some business owners move on to new ventures, sell the company, retire, or return to employment or self-employment. Whatever the reason, there…

Do I Need an Accountant?

Earlier this year, a friend and prospective client asked me this question. It’s a good one — and one that many people wonder about. So I thought I’d write a short post to help others who might be asking the…

Do I Need A Tax Return?

The UK tax year ended last month, and HMRC may have contacted you asking for a self-assessment tax return. Even if you haven’t heard from them, you may still be required to submit one - and many individuals aren’t aware…

Compliance Duties as a Company Director

When you run your own limited company, there are several key filings you’ll need to stay compliant with Companies House and HMRC. Here’s a brief overview of what to expect. Companies House Confirmation Statement Each year, around the anniversary of…

Claim Back Costs When Working from Home

Working from home can lead to extra costs - from heating and lighting to phone bills and internet usage. Fortunately, there are ways to claim tax relief on these expenses. In this guide, I’ll outline three common methods and help…

Benefits and Support Available in the UK: Support for Those on Low Incomes

Following on from my earlier post about benefits for families, this guide offers a brief overview of the financial support available to those on low incomes. While we’re not specialists in this area, we hope this summary helps raise awareness…

An Overview of Child Benefit

Child benefit is available to any parent, but if you earn over a certain amount you may need to pay some or all of it back. In this guide, we’ll explain who can claim, how much you’ll receive, and when…

Accounting Issues for Psychologists

A significant number of our clients are psychologists running their own practice, so I’ve put together this guide to highlight some key accounting and tax considerations. Please let us know if there is anything below that I have not covered,…

What Is Making Tax Digital for Income Tax and Will It Affect Me?

HMRC’s Making Tax Digital (MTD) programme has been in development for several years. It’s already in place for VAT returns, and the next phase will extend to Income Tax Self Assessment (IT), with partnerships and Corporation Tax being further down…

What to Do When You Become Self-Employed

People can become self-employed for many reasons. It might be a long-term career plan, sometimes it happens by chance, and sometimes it's an accident – for example applying for a job and realising they want to take you on as…

How to Pay Your PAYE Bill

If you run a Pay As You Earn (PAYE) payroll within your company, you'll need to deduct any National Insurance (NI) contributions made by your employees, along with any Income Tax for which they're liable, and instead pay it directly…

Understanding National Insurance

National Insurance is collected by HMRC to provide state support for the sick, unemployed and retired. One of the main reasons you may want to ensure that you have made enough National Insurance contributions is to ensure you qualify for,…

How to Get Proof of Your Income

Sometimes it may be necessary to prove your earnings. The most common reasons include applying for a mortgage or loan, or if you've suffered loss of earnings. The exact requirements may vary depending on your situation, but the information below…

Benefits and Support Available in the UK: Support for Families

Updated reflecting the latest UK government support available to families as of May 2025. Many clients ask about the government support available to families. While this isn't my primary area of expertise, here's a brief overview of key…

Accounting Issues for Driving Instructors

As part of our ongoing series tackling accounting issues in specific sectors, this week we look at the problems faced by driving instructors. Self-Employment Most driving instructors are self-employed. I have written about self-employment in general here. This…

Things a Company Director Should Know

Starting up a limited company is a big step for you and your business. It's easy to get carried away in the excitement and miss some of the things you are required to do to be compliant with all the…