Answers to common questions.
These are the things UK business owners ask us most often, so have a search through and see whether your question is already covered.
How much do accountants cost in the UK?
Most limited companies end up paying somewhere between £150 and £500 a month for a full-service arrangement, and sole traders usually sit in the £50 to £150 range, though it depends a great deal on transaction volume and how tidy the records are. We'll give you a clear quote after a free consultation rather than leaving you to guess.
What does an accountant actually do?
The core of it is preparing your statutory accounts, filing your tax returns and keeping the bookkeeping and payroll running, but a firm worth paying for will also tell you what the numbers mean and help you plan around them rather than just reporting history back to you.
When do I need to register for VAT?
You have to register once your taxable turnover passes £90,000 over any rolling twelve-month period, and you can also register voluntarily below that threshold if reclaiming input VAT or the credibility it gives you would work in your favour.
How do I switch accountants?
It's more straightforward than most people expect, because your new accountant writes to the existing one for professional clearance and your records, and you don't have to have an awkward conversation yourself. It typically takes a week or two from start to finish.
What is Making Tax Digital?
It's the HMRC programme that requires you to keep digital records and submit through compatible software instead of typing figures into a portal. It already applies to VAT, and it starts extending to income tax from April 2026 depending on your level of income.
Should I be a sole trader or a limited company?
It comes down to how much profit you're making, how much personal liability you're comfortable with and what you're planning to do next. Incorporating often starts to make sense somewhere around £40,000 of profit, though it's worth modelling both properly before you decide.
What expenses can I claim as a UK business?
Broadly anything incurred wholly and exclusively for the business, which covers software, business travel, equipment, marketing, professional fees and training among plenty of other things. We'd rather go through your spending with you and make sure nothing legitimately deductible is being missed.
When are corporation tax deadlines?
The payment falls due nine months and one day after the end of your accounting period, and the CT600 return itself isn't due until twelve months after that period ends, which catches people out because the money is wanted before the paperwork.
Do I need a separate business bank account?
A limited company has to have one because the company's money is legally separate from yours. Sole traders aren't required to, although keeping business and personal spending apart makes the bookkeeping considerably cleaner and cheaper.
What is R&D tax relief?
It's a government incentive that lets companies doing qualifying research and development claim either a cash credit or a reduction in their tax bill, and the definition is broader than most owners assume, particularly around software and process development.