The boring stuff, sorted
Accounting & tax
Keeping records is a legal duty from day one. Whether you need an accountant is a genuine question with a real "not yet" answer — but Making Tax Digital has moved that line for a lot of sole traders.
Best fit for you
These are the things that actually decide it. Find the line that sounds like you.
- Sole trader, simple, under the thresholds A spreadsheet and a Self Assessment return can genuinely be enough. Keep every receipt.
- Sole trader over {mtd_threshold} You are in Making Tax Digital for Income Tax now: digital records and quarterly updates. Compatible software is no longer optional.
- Limited company Accounts, a Corporation Tax return and a confirmation statement every year. Most people use an accountant for this and the fee is usually less than the penalties and missed claims.
- VAT registered Software plus someone who checks it. VAT is where the expensive mistakes cluster.
What catches people out
- Put the tax money somewhere separate as it comes in. Every accountant’s most repeated sentence.
- A cheap monthly accounting package that excludes the annual accounts is not cheap. Ask what is in and what is extra.
- Corporation Tax is due before the return is. 9 months and 1 day after your year end.
Your pal saysNo provider is named on this page on purpose. CompanyPal has no commercial deals yet, and a “best buy” we haven’t actually checked would be worth less than nothing to you. We’ll tell you when real ones land.
Is this one of yours?
The plan builder works out which of these apply to what you’re actually starting, and which you can ignore.