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FAQ

FREQUENTLY ASKED QUESTIONS

Clear answers to common questions about accountants, tax, VAT, HMRC, landlords, charities and working with ATS.

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Working with ATS

We work on fixed fees agreed upfront, so you always know what you’re paying, with no surprise bills at the end of the year. The exact figure depends on your size and the services you need. Request a free quote and we’ll price it clearly for your situation.

Yes. Your first conversation is free and comes with no obligation. Tell us where you are and what you need, and we’ll show you exactly how we can help before you commit to anything.

It’s easier than most people expect and takes very little of your time. Once you give us the go ahead, we contact your current accountant, request your records, and handle the professional handover for you. You can switch at any point in the year, not just at year end.

We’re based in Rochdale, with offices in Chadderton (Oldham) and Rainford (St Helens), and we work with clients across Greater Manchester, St Helens and beyond. We support clients both in person and remotely, so distance is rarely an issue.

Yes. ATS is regulated by CIPFA, an ICAEW Approved Training Employer, an HMRC authorised agent, supervised by HMRC for anti money laundering, and authorised by Companies House as an ACSP. Your work is handled by a properly qualified, properly supervised team.

We’re a Xero Silver Partner and set most clients up on Xero, which gives you real time visibility of your finances. If you already use another system such as QuickBooks or Sage, we’re happy to work with that too.

Records, VAT & Making Tax Digital

You need records of your sales and income, business expenses and receipts, bank statements, VAT records if you’re registered, and payroll records if you employ staff. Most records must be kept for at least six years, and HMRC can ask for them at any time in that period. Increasingly these need to be digital, which is where good software helps.

Making Tax Digital is HMRC’s shift to digital record keeping and quarterly online updates. It already applies to VAT registered businesses. For the self employed and landlords it’s being phased in from April 2026 for those with qualifying income over £50,000, then £30,000 from April 2027 and £20,000 from April 2028. If it applies to you, we’ll get you onto compliant software and filing the right way.

Landlords and property

The rules have tightened, especially the Section 24 restriction on mortgage interest relief, so planning matters more than ever. Practical steps include making full use of allowable expenses, structuring ownership with a spouse to use both allowances, keeping detailed records of capital improvements, and timing disposals carefully. Whether to hold property personally or in a company is a bigger decision worth advice. We’ve a full landlord tax guide on the blog.

It depends on your income, the size of your portfolio and your long term plans. Personal ownership is simpler and often suits smaller portfolios. A company can fully deduct mortgage interest and may be more efficient for higher rate taxpayers, but moving existing property in can trigger Stamp Duty and Capital Gains Tax, and running a company adds admin. It should always be based on long term projections, not a short term saving.

Growing your business

Beyond keeping you compliant, a good accountant helps you understand your numbers and act on them, spotting trends in profit and cost, reviewing pricing, forecasting, and planning for expansion, funding or eventually selling. The shift is from reactive reporting on the past to proactive advice about the future, so your figures become a tool for decisions rather than just a record.

Compliance is the essential, backward looking work: preparing your accounts and tax returns and meeting HMRC and Companies House deadlines. Advisory is forward looking: using your numbers to plan ahead, reduce tax, improve profit and guide big decisions. Most businesses start with compliance and add advisory as they grow and the decisions get bigger.

Charities

Yes, charities are one of our specialisms. We provide charity accounts, independent examinations and trustee support, led by a director who is CIPFA qualified, has audited large charities within Big 4 firms, and sits on a charity board himself. You can read more on our Charity Accountants page.

Choosing your business setup

Software is great for the day to day, sending invoices and tracking transactions, but it only works with what you put into it. It won’t tell you if you’re paying too much tax, whether you should be a sole trader or a limited company, or spot an error before HMRC does. The most efficient setup for most businesses is good software plus an accountant: you keep the records, we make sure they’re accurate, compliant and tax efficient.

It depends on your profits, your appetite for admin, and your long term plans. Staying self employed suits lower profits and simpler businesses. A limited company can be more tax efficient as profits grow and protects your personal assets, but it comes with more admin. Incorporating too early or too late can both cost you, so it’s worth a quick conversation before you decide.

You must register for VAT once your VAT taxable turnover passes £90,000 in any rolling 12 month period, or if you expect to pass it within the next 30 days. Some businesses also register voluntarily below the threshold, for example to reclaim VAT on costs or to sell more credibly to other VAT registered businesses. Missing the deadline can mean penalties, so it’s worth watching as you approach it.

As a rough guide, many self employed people set aside 25% to 30% of their profits for income tax and National Insurance, though the right figure depends on your profit level and circumstances. Limited company directors need to plan for both Corporation Tax and personal tax on salary and dividends. The most common cash flow mistake is spending profit without putting tax aside, so plan for it early.

HMRC enquiries and investigations

Most enquiries are triggered by something in your figures flagging on HMRC’s risk system, such as inconsistencies between returns, unusual changes in income or expenses, late filings or large VAT refunds, and some are simply random. You can’t rule an enquiry out entirely, but accurate records, consistent filings and filing on time significantly reduce the risk. Many enquiries are routine and resolve without drama.

You’re ready if your records are accurate and up to date through the year, backed by receipts, bank reconciled, and your returns are consistent with each other. If any of that feels uncertain, that’s where to start. We help clients get inspection ready, and if HMRC does get in touch, we deal with them for you. Our full inspection readiness guide is on the blog.

HMRC confirms the outcome formally, usually with a closure notice. There are three broad outcomes: no further action, additional tax due, or additional tax plus penalties and interest, depending on what they find and how it arose. If you disagree, there’s usually a right to appeal within a set time. Professional support throughout helps make sure your position is presented clearly and the outcome is fair.

Employers and payroll

Payrolling Benefits in Kind means reporting employee benefits such as company cars or medical insurance through payroll in real time, rather than via a P11D after the tax year ends. It spreads the tax and admin across the year and removes the P11D for those benefits. It becomes mandatory for most employers from April 2027, and you can opt in voluntarily before then. We’ve a full guide on the blog, and we’re already helping clients prepare.

PAYE and NI are paid to HMRC, most easily online by bank transfer, or by direct debit if you’d rather it ran automatically. The important part is using the correct payment reference each time, which is on the P30 report we send you whenever we run your payroll. The full list of payment options is on the GOV.UK PAYE payment page.

Paying your tax bill

You can pay HMRC by bank transfer (Faster Payments, CHAPS or Bacs) from your online banking, using the account and the 17 character reference shown on your HMRC notice. Your reference changes each accounting period, so check you’re using the right one, and if you’re unsure, ask us. The current bank details are on the GOV.UK Corporation Tax payment page.

Self Assessment is usually due by 31 January (your balancing payment plus your first payment on account) and 31 July (your second payment on account). You can pay by bank transfer, online or telephone banking, debit card, or at your bank, using your Unique Taxpayer Reference followed by the letter K. The bank details are on the GOV.UK Self Assessment payment page.

Please reach out to us if you cannot find an answer to your question.

General Questions

– Sending invoices

– Tracking bank transactions

However, software does not:

– Tell you if you’re paying too much tax

– Advise on whether you should be self‑employed or a limited company

– Spot errors before HMRC does

– Ensure your accounts and tax returns are compliant

The software only works with the information put into it, and mistakes are common, even with automation.

Where an accountant adds real value

For small businesses and SMEs, an accountant helps with:

– Tax planning (not just filing tax returns)

– Ensuring expenses are claimed correctly

– VAT advice and compliance

– Year‑end accounts and HMRC submissions

– Ongoing business advice and support

– Interpreting your financial data and give you insights

Best approach for most small businesses

The most efficient setup is accounting software plus an accountant.

You handle the day‑to‑day bookkeeping (only if you’ve done the proper training and are comfortable you’ll do it right), and your accountant ensures accuracy, compliance, and tax efficiency.

When to speak to an accountant:

If you’re unsure whether your software setup is correct, your tax bill feels high (or lower than expected), or your business is growing, it’s time to get advice.

If your business provides employee benefits such as company cars, private medical insurance, or interest-free loans, you’re likely familiar with the P11D process.

Each year, it involves gathering data, reconciling figures, and managing a Class 1A National Insurance bill in July – all of which can feel unnecessarily time-consuming.

Payrolling Benefits in Kind (PBIKs) is HMRC’s answer to this – and it’s set to become the default approach for most employers.

What are Benefits in Kind (BIKs)?

Benefits in Kind are non-cash perks provided to employees that have a taxable value.

Common examples include:

  • Company cars and fuel
  • Private medical or dental insurance
  • Gym memberships
  • Staff accommodation
  • Interest-free or low-interest loans
  • Certain mobile phone benefits beyond HMRC exemptions

Currently, most benefits are reported annually via form P11D (by 6 July). Employees then pay tax through adjusted PAYE codes, and employers pay Class 1A NIC in July.

This creates a year-end admin burden, often requiring retrospective calculations.

What does “payrolling” a benefit mean?

Payrolling simply means reporting benefits in real time through payroll, rather than after the tax year ends.

  • The taxable value is added to monthly payroll
  • Employees pay tax gradually via PAYE
  • There’s no P11D for payrolled benefits
  • No unexpected tax code adjustments the following year

In practical terms, it spreads both tax and admin across the year instead of concentrating it at year-end.

When will payrolling become mandatory?

  • Mandatory payrolling of Benefits in Kind will apply from 6 April 2027 for most employers.
  • Originally planned for April 2026, the deadline was postponed.
  • Loans and living accommodation are currently excluded.
  • These will continue to be reported via P11D (for now).
  • Businesses can opt in voluntarily from the 2026/27 tax year, which many are already doing to ease the transition.

What are the benefits for employers?

For SMEs, the advantages are practical and immediate:

  • No annual P11D reporting for payrolled benefits
  • Improved cash flow – Class 1A NIC is spread across the year
  • Reduced errors, as reporting happens in real time
  • Less admin pressure at year-end
  • Clearer employee payslips, reducing queries about tax codes

Overall, it simplifies what has traditionally been one of the more frustrating compliance tasks.

How should employers prepare?

To move smoothly to payrolling, employers should:

  • Register with HMRC before the tax year (for voluntary adoption)
  • Identify which benefits and employees are included
  • Communicate clearly with employees about how this affects their payslips and tax
  • Ensure payroll software can handle real-time benefit reporting

Continue submitting P11D(b) for:

  • Non-payrolled benefits
  • Loans and accommodation (until further guidance changes this)

Preparation is key – this is not something that can be switched on overnight.

The bottom line

Payrolling Benefits in Kind is a positive shift for most SME employers.

It removes a significant annual reporting burden, improves cash flow management, and gives employees clearer visibility of their total remuneration.

However, it requires planning.

The businesses that benefit most will be those that start preparing early, rather than waiting until it becomes mandatory.

At ATS Accountants, we’re already supporting clients across Rochdale, Littleborough, Todmorden, St Helens and surrounding areas to review their benefit structures, assess payroll readiness, and prepare for voluntary adoption ahead of the April 2027 deadline.

When Do I Need to Be VAT Registered in the UK (and Should I Register Voluntarily)?

When VAT registration is mandatory

You must register for VAT if:

– Your VAT‑taxable turnover exceeds £90,000 in a rolling 12‑month period, or

– You expect to exceed the threshold within the next 30 days

Missing the registration deadline can result in penalties and backdated VAT payments.

Voluntary VAT registration – is it a good idea?

Some small businesses choose to register voluntarily even below the threshold, especially if:

– You sell mainly to VAT‑registered businesses

– You have significant VAT on expenses to reclaim

– Being VAT‑registered adds credibility

– However, VAT registration also increases admin and pricing complexity.

VAT schemes for small businesses

Many SMEs can benefit from:

– The Flat Rate Scheme

– Cash Accounting Scheme

– Standard VAT accounting (where appropriate)

Choosing the wrong scheme can cost you money.

When to speak to an accountant:

If you’re approaching the VAT threshold, considering voluntary registration, or unsure which VAT scheme is best.

Landlords and Property Investors

Over the past few years, we’ve had more conversations with landlord clients than at any point in our 12+ years in practice.

This is not because anything has gone wrong, but because the rules have shifted significantly. What felt like a well-structured portfolio 5 or 10 years ago may now be generating a higher tax bill than necessary.

The good news is that, with the right planning, property can still perform well. The key is understanding where the pressure points are, and acting early.

How does mortgage interest relief (Section 24) affect landlords?

Since April 2020, individual landlords can no longer deduct mortgage interest from rental income. Instead, they receive a flat 20% tax credit on finance costs.

This means:

  • Tax is calculated on gross rental income (before interest)
  • The credit is applied afterwards – regardless of your tax band
  • For higher-rate taxpayers, this often results in a significantly higher tax bill, as the relief is restricted compared to previous rules.
  • For landlords with mortgages, this remains one of the most important planning considerations.

Should you hold property in a limited company?

This is one of the most common questions we’re asked – and the honest answer is: it depends.

Limited companies:

  • Can fully deduct mortgage interest before calculating Corporation Tax
  • Are not affected by Section 24 restrictions
  • May offer significant savings for higher-rate taxpayers or leveraged portfolios

However, moving existing property into a company can trigger:

  • Stamp Duty Land Tax (SDLT)
  • Capital Gains Tax (CGT)
  • Potential refinancing and legal costs

The decision should always be based on long-term projections, not short-term tax savings.

What Capital Gains Tax (CGT) should landlords expect when selling?

For the 2026/27 tax year:

  • 18% CGT (basic rate taxpayers)
  • 24% CGT (higher rate taxpayers)
  • Only £3,000 annual exemption available

In addition, any taxable gain on UK residential property must be reported and paid within 60 days of completion.

With allowances reduced significantly in recent years, disposal planning is now more important than ever.

How can landlords reduce their CGT exposure?

Practical steps include:

  • Structuring ownership with a spouse or civil partner to utilise both allowances
  • Keeping detailed records of capital improvements (which reduce your gain)
  • Timing disposals to align with lower income years
  • Planning ahead for the 60-day reporting deadline

Small adjustments here can lead to meaningful tax savings.

Is Making Tax Digital (MTD) already affecting landlords?

Yes. And for many landlords, it is already in force.

From 6 April 2026, landlords with qualifying income over £50,000 must:

The thresholds are reducing:

  • £30,000 from April 2027
  • £20,000 from April 2028

Importantly, this is based on gross income, not profit, meaning more landlords will be brought into the regime over time.

What Stamp Duty should landlords factor into new purchases?

Since October 2024, the SDLT surcharge on additional properties has increased to 5% on top of standard rates. [pricebailey.co.uk]

This applies to:

  • Buy-to-let purchases
  • Second properties
  • Most company purchases

This significantly affects investment returns and must be factored into upfront yield calculations, not considered afterwards.

What expenses can landlords claim to reduce tax?

This is one of the most common areas where landlords under-claim. Allowable expenses typically include:

  • Letting agent and management fees
  • Accountancy and professional fees
  • Insurance (landlord and contents)
  • Repairs and maintenance (not improvements)
  • Compliance costs (gas safety, EPCs, electrical checks)
  • Advertising and tenant-finding costs
  • Ground rent and service charges

Important distinction:

  • Repairs = deductible against income
  • Improvements = reduce CGT when selling
  • Clear record-keeping is essential.

The bottom line

Property remains a strong long-term investment, but the tax landscape has tightened considerably.

Landlords who:

  • Review their structure
  • Maximise allowable expenses
  • Plan disposals properly

…are often in a significantly better position than those who don’t.

At ATS Accountants, we support landlord clients across Rochdale and beyond with clear, practical tax advice, helping you structure your investments efficiently, stay compliant, and avoid unnecessary tax.

Whether to hold property personally or through a limited company depends on your long-term objectives, tax position, and the scale of your portfolio.

Owning property in your personal name is often simpler and may be suitable if:

  • You are starting out or have a small number of properties
  • Your income is within lower tax bands
  • You prefer fewer administrative requirements

However, tax rules such as restrictions on mortgage interest relief (often referred to as Section 24) can increase the effective tax rate for higher earners.

Holding property through a limited company can offer advantages in certain situations, including:

  • Full relief on finance costs
  • Potentially lower corporation tax rates on retained profits
  • Flexibility in reinvesting income into further property purchases

That said, company structures also involve:

  • Additional administration and compliance
  • Different tax treatment when extracting profit
  • Potential costs when transferring existing properties

The right structure depends on your individual circumstances, including your income, long-term plans, and whether you intend to expand your portfolio.

Professional advice can help you assess the most appropriate approach based on your current position and future goals.

If you’re considering how best to structure your property investments, you can contact us at help@atsaccountants.co.uk to discuss what would work for your situation.

Landlords in the UK are subject to a number of different taxes, depending on how their properties are owned and how income is generated.

The main taxes to be aware of include:

  • Income tax – Rental profits are taxed as part of your personal or company income, depending on the ownership structure.
  • Corporation tax (if held in a company) – If property is owned through a limited company, profits are subject to corporation tax rather than income tax.
  • Capital Gains Tax (CGT) – When you sell a property that has increased in value, you may be liable for CGT on the gain.
  • Stamp Duty Land Tax (SDLT) – Additional rates typically apply when purchasing buy-to-let or second properties.
  • VAT (in certain situations) – While most residential property is exempt, VAT may apply in specific scenarios such as commercial property or certain developments.

The overall tax position can be complex, particularly for landlords with:

  • multiple properties
  • a mix of personal and company ownership
  • plans to grow or restructure their portfolio

Understanding your tax obligations, and how they interact, is key to ensuring compliance and making informed investment decisions

HMRC Investigations and Inquiries

Most business owners only think about an HMRC inspection when it’s already underway. At that point, the pressure, paperwork, and risk of penalties can feel overwhelming.

The reality is this: with the right preparation and the right accountant, a HMRC enquiry should never come as a surprise.

What triggers an HMRC tax inspection?

HMRC selects businesses for inspection in two main ways: random selection and risk profiling.

Risk profiling typically focuses on:

  • Significant fluctuations in figures year-on-year.
  • VAT returns that don’t align with corporation tax or accounts.
  • High expense claims compared to turnover.
  • Operating in sectors HMRC considers higher risk (e.g. construction, hospitality, cash-intensive businesses).
  • In some cases, there is no issue at all — it may simply be a routine review.

What does HMRC look at during an enquiry?

The scope depends on the type of enquiry, but HMRC may review:

  • Business accounts and supporting records.
  • VAT returns and workingsPayroll records and RTI submissions.
  • Bank statements and reconciliations.
  • Expense receipts and invoicesDirectors’ loan accounts and dividend records.
  • In some cases, personal tax returns of directors or sole traders.

HMRC can go back:

  • Up to 6 years for genuine errors.
  • Up to 20 years where they suspect deliberate inaccuracies.

What records should you have in place right now?

To stay inspection-ready, your records should be:

  • Accurate and up-to-date throughout the year (not just at year-end).
  • Fully supported by receipts and invoices (digital records are acceptable and recommended).
  • Bank-reconciled, with clear links to submitted figures.
  • Supported by complete payroll records and RTI submissions.
  • Transparent in respect of directors’ loans, dividends, and inter-company transactions.
  • Supported by VAT records retained for at least 4 years.

If any of these areas feel uncertain, that’s where to focus first.

What should you do if HMRC contacts you?

Do not ignore the letter – but equally, avoid responding without professional advice.

HMRC will specify whether the enquiry is:

  • A routine compliance check.
  • An aspect enquiry (focused on one area).
  • A full enquiry

Each has different implications, and an incorrect or rushed response can unintentionally widen the scope.

At ATS Accountants, we manage HMRC correspondence on behalf of our clients. Whether it’s a VAT query or a full enquiry, our team of Chartered accountants and other team members ensures your position is presented clearly and correctly.

Can you protect yourself in advance?

Yes. Many businesses choose to take out Tax Investigation Insurance, which covers the professional fees involved in dealing with an HMRC enquiry.

For a relatively modest annual cost, it removes both financial uncertainty and a significant amount of stress.

The bottom line

If your records are accurate, your returns are compliant, and you have a qualified accountant who understands your business, a HMRC inspection is manageable, not catastrophic.

If you’re unsure whether your business is inspection-ready, it’s far better to review things now than when HMRC gets in touch.

Once HMRC completes an enquiry or investigation, they will formally confirm the outcome. This usually comes in the form of a closure notice or assessment, setting out their conclusions and any adjustments required.

There are typically three possible outcomes:

  • No further action – if everything is correct, the enquiry is closed
  • Additional tax due – where HMRC identifies discrepancies or errors
  • Penalties and interest – depending on the nature of the issue and how it arose

The outcome will depend on HMRC’s findings and how the matter has been handled during the enquiry.

If additional tax is due, HMRC will confirm:

  • the amount payable
  • any applicable penalties
  • deadlines for payment

Where the taxpayer disagrees with the outcome, there is usually a right to appeal, typically within a set timeframe.

In many cases, matters are resolved through agreement between HMRC and the taxpayer before reaching a formal decision.

Having professional support throughout the process helps ensure:

  • the position is presented clearly
  • any errors are addressed appropriately
  • the outcome is fair and proportionate

If you’re unsure about the outcome of an enquiry or your next steps, you can contact ATS Accountants for clear, practical guidance -help@atsaccountants.co.uk

HMRC enquiries are carried out to check that the correct amount of tax has been paid and that returns are accurate.

In many cases, enquiries are triggered by specific risk indicators, such as:

  • Discrepancies between different tax returns or data sources
  • Unusual changes in income, expenses, or profitability
  • Late or amended filings
  • Large refunds on VAT returns, especially if unusual for the business
  • Information received from third parties
  • HMRC increasingly uses data analysis and cross-checking systems to identify inconsistencies in tax reporting
  • Some enquiries are also opened on a random basis, even where no obvious issue exists

While it is not always possible to prevent an enquiry entirely, the risk can often be reduced by:

  • Keeping accurate and well-organised records
  • Ensuring consistency across filings
  • Submitting returns on time
  • Taking advice on more complex transactions

Strong financial processes and regular review of your tax position can significantly reduce the likelihood of issues arising.

It is also worth noting that many enquiries are routine and resolve without major consequences, particularly where records are clear and compliant.

If you’d like support reviewing your processes or reducing risk in your business, you can book a consultation to discuss your situation by e-mailing us at help@atsaccountants.co.uk

Running your business

There is no one‑size‑fits‑all answer – it depends on profits, risk, and long‑term plans.

Staying self‑employed may suit you if:

– Your profits are relatively low

– You want minimal administration

– You run a simple business structure

A limited company may suit you if:

– Profits are increasing

– You want better tax planning options

– You want to protect personal assets

You plan to grow or take on staff

Common mistake

Incorporating too early – or too late – without advice can lead to higher tax, unnecessary admin, or missed opportunities.

When to speak to an accountant:

– If your profits are rising

– You’re concerned about tax efficiency, or

– You’re unsure which structure is best for your business.

What records must be kept?

Self‑employed businesses and SMEs must keep:

– Sales invoices and income records

– Business expenses and receipts

– Bank statements

VAT records (if registered)

– Payroll records (if you employ staff)

How long records must be kept?

– Most records must be kept for at least 6 years.

HMRC can request them at any time during this period.

Digital records and Making Tax Digital (MTD)

HMRC is increasingly requiring digital record‑keeping, particularly for VAT and future income tax reporting.

Poor or incomplete records can lead to:

– HMRC penalties

– Incorrect tax bills

– Stress during enquiries or investigations

When to speak to an accountant:

If your records are disorganised, you’re unsure what HMRC requires, or you want to move to a digital system.

Business Advisory and Growth

While many businesses initially work with an accountant for compliance, a good accountant can play a much broader role in supporting growth.

Beyond preparing accounts and filing tax returns, an accountant can help you:

  • Understand your financial performance in more detail
  • Identify trends in income, costs, and profitability
  • Highlight opportunities to improve margins or efficiency
  • Support decision-making with accurate, up-to-date financial information

As your business evolves, this can include:

  • Reviewing pricing and cost structures
  • Planning for expansion or investment
  • Forecasting future financial performance
  • Helping you prepare for funding, lending, or exit planning

The key difference is moving from reactive reporting to proactive advice.

With the right support, your financial information becomes more than a record of the past – it becomes a tool to help you plan ahead and make informed decisions with confidence.

Compliance and advisory services are both important, but they serve different purposes.

Compliance services focus on meeting your legal and regulatory obligations.

This includes:

  • Preparing accounts and tax returns
  • Submitting information to HMRC and Companies House
  • Ensuring deadlines are met

These services are essential, but they are largely backward-looking, based on what has already happened.

Advisory services, on the other hand, focus on helping you plan ahead.

This may include:

  • Reviewing your financial performance during the year
  • Identifying risks or opportunities
  • Providing guidance on tax planning and business decisions
  • Helping you improve profitability and cash flow

Advisory is more forward-looking, using your financial data to support better outcomes.

Many businesses start with compliance and gradually move towards advisory as their needs become more complex and their focus shifts from staying compliant to growing and improving the business.

Basic accountancy support is often sufficient in the early stages of a business, where the focus is on staying compliant and managing day-to-day finances. However, there are common points where a more strategic approach can add significant value. You may benefit from moving beyond basic support if:
  • Your business is growing and becoming more complex
  • You are unsure how profitable your business really is
  • Cash flow is becoming harder to manageYou are making larger or more frequent financial decisions
  • You want to reduce tax more proactively rather than reactively
At this stage, relying solely on year-end accounts can limit your ability to make informed decisions. A more strategic approach typically involves:
  • Regular financial reviews
  • Ongoing advice rather than once-a-year interaction
  • Forward planning based on your business goals
The right time to make this shift is often when your business reaches a point where better financial insight could lead to better outcomes. If you feel your business may be at this stage, you can contact us at help@atsaccountants.co.uk for an initial, no-obligation conversation.

Paying tax

You can make a bank transfer using Faster Payments, CHAPS or Bacs:

Either from your online bank account, or by phoning your bank.

Your ‘notice to deliver your tax return’, or any reminder from HM Revenue and Customs (HMRC), will tell you which account to pay into. However, if you’re not sure, use HMRC Cumbernauld.

Use one of the following bank accounts to pay:

sort code: 08 32 10

account number: 12001039

account name – HMRC Cumbernauld

Or:

sort code: 08 32 10

account number: 12001020

account name – HMRC Shipley

Reference number to use

Use your 17-character Corporation Tax payment reference number for the accounting period you’re paying.

Your payment reference number changes with each accounting period, so you’ll need to use a different one each time you pay. If you don’t know this, ask your accountant.

Here’s the link to HMRC’s page with the bank details: https://www.gov.uk/pay-corporation-tax/bank-details

The deadlines for paying your tax bill are usually:

31 January – for any tax you owe for the previous tax year (known as a balancing payment) and your first payment on account

31 July – for your second payment on account

Best ways to pay:

– through your online bank account

– using online or telephone banking (Faster Payments)

– at your bank or building society

– by debit or corporate credit card online

Pay by Faster Payments, CHAPS or Bacs

Your bill will tell you which bank account to pay into. If you do not have a bill, or you’re not sure, you can pay into either account.

Account details to use

Pay into one of the following accounts:

sort code – 08 32 10

account number – 12001039

account name – HMRC Cumbernauld

or

sort code – 08 32 10

account number – 12001020

account name – HMRC Shipley

What you’ll need

You’ll need to use your 11-character payment reference when you pay. This is your 10-digit Unique Taxpayer Reference (UTR) followed by the letter ‘K’.

Link to HMRC’s page with the bank details are as follows: https://www.gov.uk/pay-self-assessment-tax-bill/bank-details

How Much Tax Should I Set Aside as Self‑Employed or a Small Company Owner?

This is one of the most common (and most important) questions small business owners ask.

Self‑employed businesses

As a general rule, many self‑employed individuals should set aside 25%–30% of profits for:

– Income tax

– National Insurance

The exact amount depends on your profit level and personal circumstances.

Limited company directors

If you run a small limited company, tax usually applies at:

– Corporation tax on company profits

– Personal tax on salary and dividends

Good planning can significantly reduce the overall tax bill – but poor planning often leads to unexpected liabilities.

Common mistake

Spending business profits without setting aside tax is one of the biggest causes of cash‑flow problems for SMEs.

When to speak to an accountant:

If you’re unsure how much to retain for tax, or your tax bill comes as a surprise each year.

HMRC has made it very easy for businesses to pay their PAYE liabilities (income tax and NI deducted from employees, and employers’ NI contributions).

The best way to pay is online – all payment options and details can be found within this page – https://www.gov.uk/pay-paye-tax

The quickest way to pay is via bank fast transfer facilities. You can also set up direct debit to pay regularly, eliminating the need to do this manually, saving time and effort.

Whichever payment method you select, please ensure that you use the correct payment references. Payment references contained within your P30 report that is sent to you by ATS Payroll (or your own payroll) every time payroll is run.