FAQs

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Once you know how much tax / National Insurance you have to pay - you can make payment in several ways. Be careful as you might need to use different bank details for different type of tax.

Pay your Corporation Tax: by bank transfer/ faster payment / CHAPS  

HMRC Cumbernauld   083210 Account nr: 12001039  

HMRC Shipley  Sort Code: 083210  Account nr: 12001020  

If you’re not sure, use Cumbernauld. 

Reference number: use your 17-character Corporation Tax payslip reference for the accounting period you are paying. 

For card payments use the link:  https://www.gov.uk/pay-corporation-tax choose pay now / no, continue to payment options / debit card or corporate credit card / continue

Pay your Self Assessment Tax: by bank transfer/ faster payment / CHAPS  

HMRC Cumbernauld   083210 Account nr: 12001039  

HMRC Shipley  Sort Code: 083210  Account nr: 12001020  

 If you’re not sure, use Cumbernauld. 

Reference number: use your 11-character payment reference, this is your 10-digit UTR followed by the letter "K" 

For card payments use the link:  https://www.gov.uk/pay-self-assessment-tax-bill choose pay now / no, continue to payment options / debit card or corporate credit card / continue

Please remember - you can no longer pay at the Post Office

The very latest you can register with HMRC is by 5 October after the end of the tax year during which you became self-employed. For example, if you started your business in June 2019, you would need to register with HMRC by 5 October 2020. The tax year runs from 6 April one year to 5 April the next.

 You will need to keep your records for at least 5 years after the 31 January submission deadline of the relevant tax year.

 Yes, we are happy to liaise with your own accountants.

Accessible anywhere, anytime, from any internet connected device

• Real-time accounting information
• Provides control and transparency for business owners
• Requires minimal resources - receipts can be added instantly, even whilst you’re on-the-go
• Enables collaboration with bookkeeping and accounting professionals - no need to extract and send sensitive financial information by email or post
• Information is stored remotely so there’s no need to worry if your computer system crashes
• Software is kept up-to-date and backups are done automatically
• Digital copies of documents are accepted by HMRC so there’s no need to store paperwork for six years - saving you space and storage costs
• Software is very user-friendly and adaptable to different business types - no need for specialist training

 Companies and the self-employed are required by law to ensure that all financial records concerning their business is maintained at all time, so the book-keeping role should be integral to a well run operation.

You don't HAVE to get in a bookkeeper, but it's to be recommended if your aren’t familiar with the rules and how to apply them.

 An accountant is more qualified. They are trained to consider tax strategies - long term planning such as inheritance tax, efficient schemes, and they add value particularly when it comes to these things. You should not be using your accountant as your bookkeeper. It's a job far too simple for them, and they won't appreciate it. Bookkeepers keep records of incomes and payments. Your accountant is better placed to deal with the HMRC enquiries and investigations.

You would only declare income received on your tax return. If you made a loss on your business this would be declared also. You do not record income which is outstanding.

You would need to fill out the Employed section and the Self-employed section on the tax return. If you are completing online, make sure you say yes to the option of being an employee and yes to being self-employed in section 3 'Tailor your Return' this will allow you to report you income from both employment and self-employment.

Yes, this would be classed as a business expense. 

All travel expenses are allowable as long they are solely for business. You cannot claim for any personal travel or expenses not in accordance with your business.

 If you choose to use the actual cost method, you must keep records of all motoring costs. This may include:

• fuel/oil;
• insurance;
• vehicle tax;
• repairs/servicing;
• parts;
• recovery subscription;
• MOT.

You must register for VAT if your VAT taxable turnover goes over £85,000 (the ‘threshold’), or you know that it will. Your VAT taxable turnover is the total of everything sold that is not VAT exempt.

Although the details are still uncertain, the government has issued guidance on how to prepare. You can find these at www.gov.uk/transition. 

VAT-registered businesses with a taxable turnover above the VAT threshold (£85,000) are now required to follow the Making Tax Digital rules. This means they have to keep digital records and submit their VAT return through a commercial software that is compatible with HMRC’s systems.

If you are below the VAT threshold you can voluntarily join the Making Tax Digital service now.

VAT-registered businesses with a taxable turnover below £85,000 will be required to follow Making Tax digital rules for their first return starting on or after April 2022.

There is more information at www.gov.uk/government/publications/making-tax-digital/overview-of-making-tax-digital. 

  It depends. There is a long list of advantages and disadvantages for each of them that could help you to decide. Several questions need to be answered but the most important of them are: 

• How big is my business now and how big I am planning to grow? 
• Do I need a business partner? 
• Will my product / service enable me to get paid in advance or do I need to supply on credit?
• Do I need credit from my suppliers or will I pay them in advance? 

The main difference is the liability: as a sole trader you are liable for your business with your own personal assets. As a limited company your personal liability is limited by shares. This means that if your company gets into debt, your liability is limited to the capital you originally invested in the business, that is, the nominal value of the shares you own.