Question 1

How do I change accountant?

Accepted Answer

You appoint the new firm, sign an agent authority for HMRC, and they write to your existing accountant for professional clearance and the handover of records. You do not need to have the conversation yourself, and it can be done at any point in the year.

Question 2

Do you offer fixed fees?

Accepted Answer

Yes. We agree a scope and a price in writing before starting. If circumstances change during the year, we discuss the fee before doing additional work rather than issuing a surprise invoice afterwards.

Question 3

Will I be charged for phone calls?

Accepted Answer

No. Routine questions during the year are included. Substantial pieces of work — a restructure, a valuation, an HMRC enquiry — are quoted separately and agreed before we begin.

Question 4

Do I need to visit your office?

Accepted Answer

Only if you want to. Most work is handled digitally, but for anything significant we would usually suggest meeting in person.

Question 5

How quickly do you respond?

Accepted Answer

We aim to acknowledge every enquiry the same working day and to give a substantive answer within two working days, sooner where something is time critical.

Question 6

When are company accounts due?

Accepted Answer

A private company must file accounts at Companies House within nine months of the year end. Corporation Tax is payable at nine months and one day, and the CT600 return is due within twelve months.

Question 7

What salary should a director take?

Accepted Answer

Commonly a level that preserves a qualifying year for state pension purposes while keeping National Insurance minimal, with the balance taken as dividends. The exact figure depends on the year's thresholds and whether Employment Allowance is available, so it is reviewed annually.

Question 8

What is a director's loan account?

Accepted Answer

A record of money owed between you and the company. If you owe the company at the year end and it is not repaid within nine months and one day, the company pays a s455 charge on the balance, refundable once repaid.

Question 9

Can I file abridged or filleted accounts?

Accepted Answer

Small companies can generally file filleted accounts that omit the profit and loss account, so turnover and margin are not made public. Where that is available and appropriate, we do it as standard.

Question 10

When do I need to register for VAT?

Accepted Answer

When VAT-taxable turnover exceeds the registration threshold on a rolling twelve-month basis, or when you expect to exceed it within the next thirty days alone. We monitor this for clients and confirm the current threshold when we review your position.

Question 11

When is my Self Assessment return due?

Accepted Answer

Online returns are due by 31 January following the end of the tax year, with the balancing payment and any first payment on account due the same day. A second payment on account falls due on 31 July.

Question 12

How much should I set aside for tax?

Accepted Answer

It depends on your profit level and how you take money out of the business. Once we have prepared a set of figures for you we set a specific reserve percentage rather than leaving you to guess.

Question 13

What happens if I cannot pay a tax bill?

Accepted Answer

Contact us before the due date. HMRC will usually consider a time to pay arrangement where a business engages early, and interest still runs but penalties can often be avoided. Silence is always the worst option.

Question 14

Do you deal with HMRC enquiries?

Accepted Answer

Yes. As your appointed agent we handle correspondence, prepare the information required and manage the response to any assessment or penalty proposal.

Question 15

Which accounting software do you support?

Accepted Answer

Xero, QuickBooks, FreeAgent and Sage. If you already use one of them, we work with it.

Question 16

Can you catch up records that are behind?

Accepted Answer

Yes, and it is common work. We quote catch-up separately from the ongoing service so you can see exactly what each part costs.

Question 17

How long must I keep records?

Accepted Answer

Companies must keep records for six years from the end of the accounting period. Self-employed individuals should keep records for at least five years after the 31 January filing deadline for that tax year.

Question 18

What does Making Tax Digital require?

Accepted Answer

Digital record keeping and submission through compatible software, with digital links rather than manual re-keying. It already applies to VAT and is being extended to Income Tax for self-employed people and landlords above set income thresholds.

Question 19

What do I need before my first employee starts?

Accepted Answer

A PAYE scheme with HMRC, a right-to-work check, a written statement of employment particulars, employers' liability insurance and a qualifying pension scheme for auto enrolment.

Question 20

How often must payroll be reported to HMRC?

Accepted Answer

A Full Payment Submission must reach HMRC on or before each payday, whatever the pay frequency. Late submissions attract penalties that increase with the size of the payroll.

Question 21

Do I have to provide a pension?

Accepted Answer

Yes, where an employee meets the eligibility criteria for auto enrolment. There is also a re-enrolment duty approximately every three years and a declaration of compliance to submit.

Frequently asked questions

Working with an accountant

Limited companies

Tax and VAT

Bookkeeping and software

Employing people