Question 1

Where do I find/get my goverment gateway?

Accepted Answer

You can get your Government Gateway account by visiting the official UK government website at www.gov.uk. If you already have an account, log in with your Government Gateway user ID and password. If you don’t have one yet, you can create it by selecting the option to register and following the on-screen instructions. You’ll need some personal details and may require documentation, depending on the service you’re accessing.

Question 2

Can my accountant change my tax code?

Accepted Answer

No, we cannot directly change your tax code for you. Your tax code is determined by HMRC (Her Majesty's Revenue and Customs) based on the information they have about your income and allowances. However, we can help you identify any errors or discrepancies and assist you in contacting HMRC to request a correction if needed. Changes to your tax code must be made by HMRC. We're here to support you through the process.

Question 3

How do I decide if I should operate as a sole trader, partnership, or limited company?

Accepted Answer

Deciding whether to operate as a sole trader, partnership, or limited company depends on your business goals, financial situation, and the level of risk you're willing to take. Here’s a quick overview:
Sole Trader: Best if you want simplicity and full control. It's easy to set up, but you’re personally liable for debts, meaning your personal assets are at risk.
Partnership: A good option if you’re starting a business with others. It’s similar to a sole trader but shared among partners. Like sole traders, partners are personally liable for the business’s debts.
Limited Company: Offers limited liability, which means your personal assets are protected. It’s more tax-efficient as profits can be drawn as dividends, but it requires more administrative work and compliance.
We can guide you in weighing the pros and cons based on your specific circumstances and future plans. Get in touch with us, and we’ll help you make the best choice for your business.

Question 4

What is Making Tax Digital (MTD), and how does it affect my business?

Accepted Answer

Making Tax Digital (MTD) is a UK government initiative aimed at making the tax system more efficient, effective, and easier for businesses to get their tax right. It requires businesses and individuals to maintain digital records and submit tax information to HMRC through compatible software.

How it affects your business:

Digital Record-Keeping: You’ll need to keep your financial records in a digital format using MTD-compatible software or apps.
Quarterly Submissions: Instead of annual tax returns, businesses must submit updates to HMRC every quarter, providing a more accurate picture of their financial position.
Compliance Deadlines: MTD is being rolled out in phases, so the specific impact depends on your business type and turnover. For example:

VAT-registered businesses with a turnover above £85,000 must already comply.
MTD for Income Tax Self-Assessment (ITSA) is coming for certain businesses and landlords from April 2026.

We can help ensure your business is MTD-compliant, select the right software, and guide you through the process to avoid penalties. Reach out to us for tailored advice and support.

Question 5

What date does the tax year run?

Accepted Answer

The UK tax year runs from 6th April to 5th April of the following year. For example, the 2023/24 tax year starts on 6th April 2023 and ends on 5th April 2024. This period applies to both individuals and businesses for tax reporting purposes. If you need help managing your tax deadlines or understanding how this affects you, we're here to assist!

Question 6

When are the tax payments due?

Accepted Answer

Tax payments for Self Assessment are typically due on the following dates:
31st January: This is the deadline for:

Paying any tax owed for the previous tax year.
Making your first payment on account for the current tax year (if applicable).

31st July: This is the deadline for:

Making your second payment on account for the current tax year (if applicable).

If you’ve already paid enough tax during the year or your income has decreased, you may be eligible to reduce your payments on account. We can help you review your tax liability and ensure you meet the deadlines without overpaying. Let us know if you need support!

Question 7

What are payments on account and why do I have to pay them?

Accepted Answer

Payments on account are advance payments towards your tax bill for the current tax year. They are required if your tax liability from the previous year is over £1,000 and less than 80% of your tax has already been collected through PAYE.

Why you have to pay them?
HMRC collects payments on account to spread the cost of your tax liability across the year.
Each payment on account is 50% of your previous year’s tax bill (excluding any student loan repayments or capital gains tax).

When they are due:
31st January: The first payment on account.
31st July: The second payment on account.

If your actual income for the current year is lower than expected, you can apply to reduce your payments on account. If your income is higher, you may have a balancing payment to make on 31st January after the end of the tax year.

We can help you calculate your payments and determine if they can be adjusted to reflect your current financial situation. Let us know if you’d like assistance!

Question 8

How do I pay every sort of tax?

Accepted Answer

1. Income Tax (Self Assessment)
Who pays? Sole traders, landlords, or individuals with additional income.
How to pay:
Online: Through your HMRC online account using a debit/credit card or bank transfer.
Direct Debit: Set up a Direct Debit with HMRC.
Bank Transfer: Use HMRC’s bank details to pay via your online banking (ensure you use the correct reference number, typically your 10-digit UTR).
Cheque: Payable to "HM Revenue and Customs Only," sent to the HMRC address.
Key Dates:
31st January: Balancing payment for the previous year and first payment on account for the current year.
31st July: Second payment on account for the current year.

2. VAT (Value-Added Tax)
Who pays? VAT-registered businesses.
How to pay:
Direct Debit: The easiest method; HMRC takes the amount owed on the payment date.
Bank Transfer: Use your VAT online account to get the details.
Debit/Credit Card: Pay via the HMRC payment service.
Online via Accounting Software: If enrolled in Making Tax Digital (MTD), submit and pay VAT returns through compatible software.
Key Dates: VAT is usually due one month and seven days after the end of your VAT quarter.

3. Corporation Tax
Who pays? Limited companies.
How to pay:
Online Banking: Bank transfer or Faster Payments using HMRC’s Corporation Tax account details.
Debit/Credit Card: Pay via the HMRC payment service.
Direct Debit: You can set this up through your company’s online account.
Key Date: Corporation Tax is due 9 months and 1 day after your company’s accounting period ends.

4. PAYE (Pay As You Earn)
Who pays? Employers deducting tax and National Insurance from employee wages.
How to pay:
Direct Debit: Arrange through your employer PAYE account.
Bank Transfer: Using HMRC’s PAYE account details.
Debit/Credit Card: Pay via HMRC’s online service.
Key Dates: PAYE is due by the 22nd of the following month (or 19th if paying by post).

5. Stamp Duty (SDLT)
Who pays? Individuals or companies purchasing property over the threshold.
How to pay:
Normally, your solicitor will arrange payment as part of the conveyancing process.
If self-paying, use HMRC’s online service or pay via bank transfer.
Key Date: SDLT must be paid within 14 days of completing the property purchase.

6. Capital Gains Tax (CGT)
Who pays? Individuals or businesses selling assets like property, shares, or investments at a profit.
How to pay:
Online through your HMRC account: Use your CGT reference.
Direct Debit or Bank Transfer: Pay using HMRC’s details.
Key Date: CGT is due within 60 days of the sale of residential property in the UK. For other assets, it's part of your Self Assessment tax return due by 31st January.

7. National Insurance Contributions (NICs)
Who pays? Self-employed individuals or those making voluntary contributions.
How to pay:
Direct Debit: Set up with HMRC.
Bank Transfer: Using HMRC’s account details and reference number.
Debit/Credit Card: Pay via HMRC’s payment service.
Key Date: Payments are usually due as part of your Self Assessment tax return by 31st January.

8. Inheritance Tax (IHT)
Who pays? Executors of an estate over the IHT threshold.
How to pay:
Bank Transfer or Cheque: Use the payment reference provided by HMRC.
Direct Payment from the Estate: Some banks allow direct withdrawals from the deceased’s account to pay IHT.
Key Date: IHT must be paid within 6 months after the person’s death.

Common Questions

Frequently Asked Questions