Tax & Bookkeeping
Everything you need to know about keeping records, filing returns, and paying the right amount of tax as a UK small business.
Tax and bookkeeping are the two areas that cause new business owners the most anxiety. But once you have a simple system in place, they take very little time. This hub covers the practical steps to keeping clean records, choosing the right software, and understanding your tax obligations.
The golden rule: separate your money
Before you worry about software or accountants, make sure your business income and expenses are running through a dedicated business bank account. Mixing personal and business money is the fastest way to make bookkeeping painful and expensive. See our separation guide.
Self Assessment vs Corporation Tax
If you are a sole trader, you pay Income Tax and National Insurance on your profits through the Self Assessment system. You file one return a year, due by 31 January.
If you run a limited company, the company pays Corporation Tax on its profits. You then extract money personally (usually via a mix of salary and dividends), which you declare on your own Self Assessment return.
MTD for VAT is already mandatory for all VAT-registered businesses. MTD for Income Tax began on 6 April 2026 for qualifying sole traders and landlords with income over £50,000. The announced rollout extends to income over £30,000 from April 2027 and over £20,000 from April 2028. In-scope taxpayers need compatible software to keep digital records and submit quarterly updates to HMRC.
VAT and payroll
You must register for VAT if your taxable turnover exceeds the threshold (currently £90,000) in any rolling 12-month period. If you employ staff, or if you are a company director taking a salary above the Lower Earnings Limit, you must register as an employer and operate PAYE.
Guides in this hub
Create exportable planning reminders for tax, payroll and company obligations.
Eligibility, digital records, quarterly updates and MTD software.
Check the announced rollout timeline for your qualifying income.
Plan against the announced 2026–2028 rollout dates.
A workflow that survives HMRC enquiries.
What counts as allowable for tax.
Simple tools for Self Assessment.
Comparing the big three cloud accounting platforms.
When you need one and how to choose.
How to get the most value from your accountant.
Calculate your CT bill and marginal relief.
Model salary, dividends and National Insurance.
Model an illustrative salary, dividends, pension and Corporation Tax scenario.
Estimate Income Tax and Class 4 National Insurance.
Plan for January and July Self Assessment payments.
Set a practical tax-savings target.
Calculate tax on director dividends.
Use a cautious minutes, voucher and distributable-profits record checklist.
Track each month’s taxable sales against the registration threshold.
Compare a transparent Flat Rate illustration with standard VAT accounting.
Plan construction-scheme records, materials and payment deductions.
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