Tax, VAT & MTD

What has to be reported, when, and what Making Tax Digital changes.

• Can CASS deal with HMRC about VAT?

  Yes, once authorised, we can communicate with HMRC about your VAT affairs within the scope of our engagement.

• Can CASS manage MTD if I’m not confident using accounting software?

  Yes. We can discuss a service where CASS maintains the agreed records and prepares MTD submissions, with suitable authorisation and your approval where required. You still need to provide complete information and answer queries, but we can agree a practical way to send documents and explain what is needed. Availability and scope are confirmed in your proposal, including any ongoing bookkeeping requirement.

• Can CASS manage my MTD submissions?

  Yes. We can help set up the records, maintain the bookkeeping and complete the required submissions as part of an agreed service.

• Can CASS prepare and submit my VAT returns?

  Yes. We can prepare your VAT return from your accounting records, review it and submit it to HMRC with your approval.

• Can CASS prepare my Self Assessment tax return?

  Yes. We can prepare and submit your Self Assessment return, calculate the tax due and explain the payment dates. Personal tax work — Self Assessment and MTD for Income Tax — is available alongside our ongoing monthly bookkeeping, because it depends on the records and oversight that service provides. Our pricing tool explains the requirement and we confirm what's available to you on your Discovery Call.

• Can CASS prepare my limited company year-end accounts?

  Yes. We assess whether we can support your business based on its circumstances, complexity and the work required. We prepare the statutory accounts, explain the results and file what is required with Companies House and HMRC. Company accounts are available alongside our ongoing monthly bookkeeping, because they depend on the records and regular oversight that service provides — our pricing tool explains the requirement, and we confirm the available combination on your Discovery Call.

• Can CASS tell me whether MTD applies to me?

  Yes. We can review your qualifying income and circumstances and explain when you are expected to join.

• Can Cassie give me personal tax advice?

  No. Cassie gives general information from our answer library, not advice for your circumstances, and it cannot make personalised tax, investment or pension recommendations. For advice on your own position, speak to the CASS team — and please don't share personal reference numbers or bank details in the chat.

• Can I arrange a payment plan with HMRC, and what information will they need?

  You may be able to agree a Time to Pay arrangement with HMRC. They will want to understand what you owe, why you cannot pay and what you can realistically afford. Approval is not automatic, and interest normally continues on overdue tax.

• Can I be exempt from MTD for Income Tax?

  Some exemptions may be available, including where it is not reasonable or practical to use digital tools. HMRC decides exemption applications, and we can help you understand the process.

• Can I charge my company interest on money I’ve lent it?

  Yes, you can charge interest on money you lend your company. The company normally deducts basic-rate Income Tax from interest paid to you and accounts for it to HMRC using CT61. You report the gross interest and tax deducted as part of your personal tax position.

• Can I claim 100% tax relief on a new electric car?

  A qualifying new and unused zero-emission car can receive a 100% first-year allowance. HMRC's current guidance covers purchases before April 2027. This is a separate allowance because cars do not qualify for AIA.

• Can I claim AIA on equipment bought through hire purchase?

  Qualifying equipment bought on hire purchase can be eligible. Once you start using it, relief can generally cover the capital payments under the contract, including future instalments. Interest is excluded from AIA.

• Can I claim AIA on second-hand equipment?

  Yes, second-hand plant and machinery can qualify for Annual Investment Allowance. AIA does not generally require equipment to be new, unlike some other allowances. The asset, purchase circumstances and available allowance still need checking; cars and certain non-purchase or connected-party situations have separate restrictions.

• Can I claim business expenses incurred before I started trading?

  Some qualifying revenue expenses incurred within seven years before trading starts can be relieved when the trade begins. The usual business expense conditions still apply. Assets, stock, advance payments and costs paid personally for a later company may need different treatment.

• Can I claim expenses for working from home?

  You may be able to, but the rules differ for sole traders and company directors or employees. Sole traders can consider an appropriate business share of actual costs or simplified expenses where eligible. A company’s reimbursement of homeworking costs follows different rules from an employee’s personal tax-relief claim. The claim should reflect the applicable rules and evidence. CASS can check which method fits your circumstances.

• Can I claim for meals, entertaining clients or staff events?

  These are different types of spending. Meals during qualifying business travel may be allowable, while an ordinary lunch is not automatically a business expense. Client entertaining is generally not deductible for tax, even when it has a business purpose. Staff events can have different expense, VAT and benefit rules. Keep details of the purpose and attendees so CASS can assess the correct treatment.

• Can I claim tax relief for training courses or professional qualifications?

  Training can qualify, but the rules differ for self-employed people and employer-funded training. Consider how the course relates to the existing business or employment, who pays and whether personal benefits are involved. A course being useful or awarding a qualification does not settle the tax treatment.

• Can I claim tax relief on a bad debt?

  You may get tax relief where a genuine business debt included in taxable income becomes irrecoverable, but the rules depend on how your business is taxed. Cash basis businesses generally cannot deduct an unpaid sale they never included as income. VAT bad debt relief is a separate claim with its own conditions.

• Can I put my own money into the business and repay myself later?

  Yes. If you lend money to your limited company, record it properly as a loan so the amount owed to you is clear. Repayment of the loan principal is different from salary or a dividend and is generally not income in your hands. Charging interest creates additional tax and reporting requirements. Repayment should also be considered alongside the company’s ability to meet its other obligations.

• Can I reclaim VAT if a customer doesn’t pay me?

  You may qualify for VAT bad debt relief if you have already accounted for VAT on the sale and meet the conditions. These generally include writing off the debt in your records and waiting at least six months from the later of the payment due date and supply date. Under VAT Cash Accounting, unpaid sales normally have not generated output VAT to reclaim. CASS can check eligibility and timing.

• Can I reclaim VAT on business expenses?

  Normally only once you are VAT registered, and then only on eligible business costs with a valid VAT invoice or other suitable evidence. Some costs are blocked or restricted, business entertainment and most cars among them, and special schemes change what you can recover. Keep the paperwork and we will tell you what qualifies.

• Can I reclaim VAT on buying or leasing a car or van?

  The VAT rules differ for cars and commercial vehicles. VAT on buying a car is usually blocked unless a specific exception applies. Car lease VAT is normally restricted where private use is allowed. A van may qualify for recovery, but business use, VAT registration and the invoice still matter.

• Can I reclaim VAT on expenses before I register?

  Sometimes. Once registered you may be able to recover VAT on goods you still hold and on certain services bought before registration, within the time limits HMRC sets and with suitable evidence. It depends on what was bought, when, and whether it is used for your taxable business — send us the list and we will work through it on your first return.

• Can I register for VAT voluntarily?

  Yes. Voluntary registration can be helpful in some circumstances, but it also creates additional responsibilities. We can help you weigh up the advantages and disadvantages.

• Can I take dividends if there isn’t enough profit?

  No. Dividends must be supported by available distributable profits, taking account of accumulated losses and tax. Money in the bank is not the same as profit available for dividends. The company must also follow the required approval and record-keeping procedures. If you have already taken money without sufficient profits, ask for advice promptly rather than simply labelling the withdrawal a dividend.

• Can my business pay for my mobile phone and internet?

  It can, but the tax treatment depends on your business structure, who holds the contract and how the service is used. A sole trader generally claims the business proportion of mixed costs. For a limited company, an employer-provided phone can be treated differently from reimbursing a personal contract. Broadband has its own conditions. Send CASS the contract details before assuming the whole bill is tax deductible or tax free.

• Can owning another company affect my Corporation Tax calculation?

  Yes. Companies under common control can be associated, which may reduce the profit limits used for the small profits rate and marginal relief. The answer depends on control, activity and timing, so tell your accountant about other companies before relying on the standard thresholds.

• Can payments on account be reduced?

  They may be reduced if your income or tax liability is genuinely expected to fall, but reducing them too far can lead to interest. We can help estimate a sensible amount.

• Can pension contributions affect my Child Benefit tax charge?

  Yes. Eligible pension contributions can reduce adjusted net income, which is used to calculate the High Income Child Benefit Charge. For relief-at-source contributions, the relevant deduction is normally the gross contribution, including basic-rate relief. Do not deduct contributions twice if their effect is already reflected in taxable pay. The charge also depends on your partner’s income and the Child Benefit received.

• Can shareholders receive different amounts of dividends?

  They can where their holdings and share rights support it. Dividends are not simply allocated according to who needs the money. Check the company’s articles, share classes and available profits before approving different payments, particularly where family members are shareholders.

• Can two separate businesses be treated as one for VAT registration?

  Yes, in some circumstances. HMRC can examine whether a business has been artificially separated to avoid VAT registration. Different names, bank accounts or legal entities do not settle the question, but genuinely independent businesses are not automatically combined.

• Can you advise on VAT for overseas sales or purchases?

  Yes, although international VAT can be complex. We will review the facts and may recommend specialist advice where necessary.

• Can you advise on dividends?

  Yes. We can explain whether sufficient profits are available, the paperwork required and the personal tax implications.

• Can you advise on rental property finance costs?

  We can explain how the tax treatment of mortgage interest and other finance costs works for your circumstances, since it depends on the ownership and the type of property business, and we can model the effect on cash flow. Mortgage and investment product recommendations have to come from an adviser authorised for that work.

• Can you advise which VAT scheme is best?

  Absolutely. We'll recommend the option that's right for your business.

• Can you correct errors on previous VAT returns?

  Yes. We can review historic errors and advise on the correct way to disclose or amend them.

• Can you form a limited company for me?

  Yes. We can help form the company and make sure the accounting and tax setup is handled properly.

• Can you help close a limited company?

  Yes. We can explain the accounting and tax steps, prepare final returns and coordinate with your legal adviser where necessary.

• Can you help form a new limited company?

  Yes. We can discuss whether a limited company is suitable and help with formation and the initial accounting setup.

• Can you help if I'm behind on previous tax returns?

  Yes, and it's more common than you'd think. We'll work out exactly what's outstanding, bring the returns up to date, deal with HMRC on your behalf and help you get penalties and interest under control. No lectures.

• Can you help if I've made mistakes in previous bookkeeping, VAT or tax returns?

  Yes. We regularly correct historic bookkeeping, VAT and tax issues: unreconciled records, VAT errors needing adjustment or disclosure to HMRC, and returns that need amending. We start by finding out what the position actually is, tell you what needs correcting and in what order, and agree the catch-up work before we start.

• Can you help me claim allowable expenses?

  Yes. We will review the information provided and claim expenses and reliefs that are supported by the rules and appropriate evidence.

• Can you help me register for Self Assessment?

  Yes. We can help you register with HMRC and make sure the right records are in place from the beginning.

• Can you help reduce my Corporation Tax?

  We review legitimate expenses, allowances and reliefs relevant to your circumstances, using the information and evidence available. Where appropriate, we discuss planning before the relevant deadlines. Tax savings depend on eligibility and are not guaranteed.

• Can you help with Capital Gains Tax?

  Yes. We can calculate gains and advise on reporting requirements for property, shares and other assets. More complex cases may require additional specialist input.

• Can you help with Cash Accounting for VAT?

  Yes. We can explain how cash accounting works and whether it suits the way your business gets paid.

• Can you help with Companies House identity verification?

  Yes. CASS can support relevant Companies House identity verification requirements as an authorised corporate service provider where the service is available and appropriate.

• Can you help with a VAT inspection?

  Yes. We can help gather records, explain the figures and communicate with HMRC where we are authorised to do so.

• Can you prepare confirmation statements?

  Yes. Companies House compliance work, including confirmation statements, is available alongside our ongoing monthly bookkeeping, because it relies on us holding current records for your company. Our pricing tool explains where that requirement applies, and we confirm what's included and any minimum fees on your Discovery Call before setting it out in your written proposal.

• Can you prepare tax returns for company directors?

  Yes. A director does not automatically need a tax return in every case, but we can check whether one is required and prepare it where necessary.

• Can you prepare tax returns for landlords?

  Yes. We can prepare property income figures, review allowable costs and complete the relevant parts of your return.

• Can you prepare tax returns for sole traders?

  Yes. We can prepare the business figures, complete the tax return and help you plan for the tax due.

• Can you provide regular financial reports as well as year-end accounts?

  Absolutely. While we'll prepare your year-end accounts and the financial reports and management accounts you need, we believe your numbers should do much more than tell you what's already happened. Our Strategic Review & Insights service goes a step further by turning your financial information into meaningful insights. Alongside regular reporting, we can provide cash flow forecasts, profitability analysis, key performance indicators and strategic planning support to help you make informed decisions throughout the year. In short, we'll not only show you where your business has been—we'll help you plan where it's going next.

• Can you reduce my Corporation Tax?

  We review legitimate expenses, allowances and reliefs relevant to your circumstances, using the information and evidence available. Where appropriate, we discuss planning before the relevant deadlines. Tax savings depend on eligibility and are not guaranteed.

• Can you register me as self-employed?

  Yes. We can help with the necessary HMRC registration and explain the records you need to keep.

• Can you register my business for VAT?

  Yes. We can help assess whether registration is needed and complete the registration process.

• Can you set up Xero for MTD for Income Tax?

  Yes. We can set up Xero and the related processes needed to keep suitable digital records.

• Can you submit my VAT returns?

  Yes, where VAT is included in your letter of engagement. We need to be authorised to act for you with HMRC, the records for the period, and your approval of the figures before we submit. We agree dates for receiving records and approval so the return is filed on time.

• Can you submit my quarterly updates?

  Yes, where MTD for Income Tax work is included in your letter of engagement. We need HMRC authorisation, the records for the quarter and your approval before we submit. We agree when records reach us so each update can be filed inside the deadline.

• Do CIS deductions apply to materials as well as labour?

  CIS deductions are calculated after excluding VAT and eligible materials costs directly paid by the subcontractor for that contract. An amount labelled “materials” on an invoice is not enough by itself: the actual cost and supporting evidence matter. Labour and other elements may remain within the deduction calculation. CASS can check the breakdown before payment so deductions and statements are prepared correctly.

• Do I charge VAT when selling to a customer overseas?

  An overseas customer does not automatically make a sale VAT free. The treatment depends on whether you sell goods or services, where the supply takes place, the customer’s status and the countries involved. Export evidence or overseas registration obligations may also matter. Ask CASS to check the transaction before issuing the invoice; specialist advice may be needed for more complex international arrangements.

• Do I need accounting software for MTD for Income Tax?

  Yes. You will need compatible software or a suitable combination of connected software to keep digital records and submit information to HMRC.

• Do I need to charge VAT on a deposit?

  If you are VAT registered and the deposit is an advance payment for a taxable supply, VAT normally becomes due when you receive it or issue a VAT invoice, whichever happens first. A genuinely refundable security deposit can be different. The underlying supply and your VAT scheme also matter. CASS can check the arrangement so the deposit is recorded in the correct VAT period.

• Do I need to declare savings interest or dividend income?

  It depends on the income, allowances and whether you already submit a tax return. If you complete Self Assessment, report relevant savings interest and dividend income even where an allowance means no tax is due; income from within an ISA is generally excluded. Outside Self Assessment, HMRC may collect tax through another route. Give your accountant the full figures rather than assuming your bank, pension provider or company has dealt with your personal tax.

• Do I need to register for Making Tax Digital for Income Tax?

  It depends on your qualifying income in the reference tax year: over £50,000 in 2024/25 brought you in from 6 April 2026, over £30,000 in 2025/26 from 6 April 2027, and over £20,000 in 2026/27 from 6 April 2028. Qualifying income is combined gross self-employment and property income before expenses, and exemptions and exclusions apply. Our MTD checker gives an indication from the answers you give; we confirm it against your full circumstances.

• Do I need to report income from a side business?

  Possibly. A small business alongside your job can still create reporting obligations. The trading allowance is based on qualifying gross income, not profit, and has conditions. Keep records and check the rules even if the activity feels informal or payments arrive through an app.

• Do I need to submit a CIS return if I haven’t paid any subcontractors?

  If you are registered as a CIS contractor, a month with no subcontractor payments still needs action. Normally, submit a nil return or make an inactivity request to HMRC if you have temporarily stopped using subcontractors. The monthly return deadline is the 19th after the CIS tax month ends; CIS tax months run from the 6th to the 5th. Check that an inactivity request covers the period before assuming no return is needed. Payments to subcontractors with gross payment status still count as payments, even though no CIS tax was deducted. Tell whoever handles your CIS returns when activity stops or restarts.

• Do I still need a tax return if I have no tax to pay?

  Possibly. Filing requirements are not based only on whether tax is due. We can check whether HMRC still expects a return.

• Do landlords need to use Making Tax Digital for Income Tax?

  Where qualifying income reaches a phase threshold, yes: over £50,000 in 2024/25 (from 6 April 2026), over £30,000 in 2025/26 (from 6 April 2027), over £20,000 in 2026/27 (from 6 April 2028). It means digital records and quarterly updates for property income, with a final declaration after the tax year. Exemptions and exclusions apply — check your own position rather than assuming.

• Do small companies need an audit?

  Whether a company needs an audit depends on the relevant legal conditions and its circumstances — size, group structure, its articles, shareholder requests and other factors — rather than turnover alone. CASS is not a registered statutory auditor. We can look at your circumstances and tell you whether an audit looks likely, and we prepare the accounts and records an auditor would work from. We assess whether we can support your business based on its circumstances, complexity and the work required.

• Do you act as a personal tax adviser as well as filing my return?

  Yes, within the scope we agree. Filing is the mechanical part; the value is in what we spot while doing it — expenses being missed, a more efficient way to take income, a payment on account that could be reduced — and we raise those rather than wait to be asked. Personal tax work is available alongside our ongoing monthly bookkeeping. Investment and pension product recommendations have to come from an adviser authorised for that work.

• Do you offer tax planning as part of this?

  Yes, within your agreed scope. We look ahead rather than simply reporting the bill after the year has ended — discussing the position and the options before the relevant deadlines. Tax planning is provided alongside our ongoing services, because it depends on current records; our pricing tool explains where that applies. Specialist areas and anything requiring an authorised adviser are referred on, and tax savings depend on eligibility.

• Does AIA mean I get the cost of my equipment back?

  No. AIA reduces taxable profits rather than refunding the purchase price. The tax saving depends on the tax rate applying to those profits and your business's overall tax position.

• Does Making Tax Digital apply to landlords?

  Yes, where qualifying income reaches a phase threshold: over £50,000 in 2024/25 (from 6 April 2026), over £30,000 in 2025/26 (from 6 April 2027), over £20,000 in 2026/27 (from 6 April 2028). Property income counts as gross rents before expenses and is added to any self-employment income. Jointly owned property, some trusts and certain other cases follow different rules, and exemptions exist.

• Does Making Tax Digital apply to sole traders?

  Yes, where qualifying income reaches a phase threshold: over £50,000 in 2024/25 (from 6 April 2026), over £30,000 in 2025/26 (from 6 April 2027), over £20,000 in 2026/27 (from 6 April 2028). Qualifying income is gross self-employment turnover before expenses, added to any property income. Exemptions and exclusions apply.

• Does Making Tax Digital for Income Tax apply to limited companies?

  No. The current Income Tax rules are aimed at qualifying sole traders and landlords, rather than income earned through a limited company.

• Does being registered for CIS mean someone is definitely self-employed?

  No. CIS registration does not establish employment status. You need to assess the actual working arrangement, including factors such as control, personal service and financial risk. A contract label or a subcontractor’s preference does not decide the result. HMRC’s employment-status tool can help assess tax status, while employment rights are a separate consideration. CASS can help identify when further tax or employment advice is needed.

• Does letting through Airbnb change the accounting or tax questions I need to consider?

  Yes. Short-term letting raises questions about platform fees, refunds, private use, ownership, VAT and local requirements. Record gross bookings and deductions rather than only the payout. Using Airbnb does not automatically make the activity a trade or give it special tax reliefs. The former furnished holiday lettings tax regime ended from April 2025.

• How are mortgage interest and repayments treated differently?

  A mortgage payment can include interest and repayment of the amount borrowed. Repaying the loan principal is not a rental expense. For individuals letting residential property, eligible finance costs normally receive relief through a basic-rate tax reduction rather than a deduction from rental profit, subject to the applicable limits. Companies and commercial property can be treated differently. CASS can help separate the amounts and check the relevant tax treatment.

• How do I claim Annual Investment Allowance?

  Claim AIA through your business tax return. Sole traders use Self Assessment, partnerships use their partnership return, and limited companies use a Company Tax Return with a separate capital allowances calculation.

• How do I claim additional tax relief on my pension contributions?

  If your pension uses relief at source and you pay Income Tax above the basic rate, you may need to claim extra relief from HMRC. First check how your contributions are treated: relief already given through payroll should not be claimed again, and employer contributions are handled differently.

• How do I reclaim CIS deductions from my business?

  The process depends on your business structure. Sole traders and partnerships normally account for deductions through Self Assessment. Limited companies normally report deductions suffered through an Employer Payment Summary and offset them against relevant PAYE liabilities, with a separate process for any repayment due. Keep contractor payment and deduction statements and reconcile them to receipts. CASS can help check the records and the correct claim route.

• How do I verify a subcontractor before paying them?

  First check that the working arrangement is genuinely self-employed. Where verification is required, use HMRC’s CIS service with the subcontractor’s correct business and tax details. HMRC confirms the applicable deduction treatment and provides a verification reference. Keep the result and supporting records. A new subcontractor usually needs verification, and previously used subcontractors may need it again depending on when they last appeared on your returns.

• How do pension contributions affect my tax position?

  The effect depends on how the contribution is made. Under relief at source, the pension provider adds basic-rate relief and you may need to claim further relief. Under net pay, eligible relief is normally given through payroll. Salary sacrifice and employer contributions follow different rules. Earnings limits and pension allowances also matter. Your accountant can check the tax treatment and reporting; recommendations about a pension product require an appropriately authorised adviser.

• How does MTD work if I own a rental property jointly?

  MTD applies to each individual’s circumstances and reportable share of property income, rather than automatically treating every owner as receiving the whole rent. Joint ownership does not necessarily mean a 50:50 split. Where MTD applies, your share needs appropriate records. HMRC allows a specific quarterly reporting option for jointly let property expenses, with completion after year end. CASS can check the ownership, income allocation and reporting approach.

• How does postponed VAT accounting work when I import goods?

  Eligible UK VAT-registered businesses can account for import VAT on their VAT return instead of paying it at import. Recovery remains subject to the normal rules. Customs declarations, monthly statements and bookkeeping must agree; postponed VAT accounting does not remove customs duty or make every import cost recoverable.

• How is Business Advisory different from your Outsourced Finance & Virtual FD service?

  Outsourced Finance & Virtual FD is a hands-on finance function: the day-to-day processing, reporting, cash management and board-level numbers. Business Advisory is the strategic layer on top: regular planning, goal-setting and decision support. Some services are only available alongside our ongoing bookkeeping, so we will confirm the available combination and any eligibility requirements before quoting.

• How is Business Growth and Planning different from year-end accounts?

  Year-end accounts report what has already happened. Business growth and planning work uses current information, forecasts and regular conversations to help you decide what to do next. It is available alongside our ongoing monthly bookkeeping, because current records are what make the forecasting worth anything — our pricing tool explains the requirement and we confirm what's included before you commit.

• How is rental income split between spouses or civil partners?

  For spouses or civil partners living together, income from jointly held property is generally taxed equally unless a relevant exception or valid declaration applies. You cannot simply choose the split that gives the lowest tax. Beneficial ownership, evidence and Form 17 requirements need checking before using unequal shares.

• How much Annual Investment Allowance can my business claim?

  The standard AIA limit is £1 million for a 12-month period. Shorter periods reduce the limit, and some businesses under common ownership or control must share an allowance.

• How much can I safely take out of my company?

  That depends on both the money available and how the payment is treated. Salary, dividends, repayment of money you have lent the company and expense reimbursements have different rules. A healthy bank balance does not automatically mean you can pay a dividend. Check available profits after tax, upcoming bills and cash reserves before withdrawing money. CASS can help you review the position and agree an appropriate approach.

• How often do I need to submit a VAT return?

  Most VAT-registered businesses submit VAT returns every three months, although alternative arrangements can apply. Your VAT periods and filing dates are shown in your VAT account.

• How should I prepare my business for Making Tax Digital for Income Tax?

  Start by establishing whether your qualifying income brings you into the regime and from which tax year. The timetable and detailed rules can change, so use current HMRC guidance for the final position.

• How should gift vouchers sold to customers be recorded for accounts and VAT?

  Selling a gift voucher brings in cash, but the accounting income and VAT may arise at different times. VAT treatment depends on whether the voucher is single-purpose or multi-purpose. Track sales, redemptions, refunds and expiry so vouchers are not counted twice or treated as ordinary sales without checking.

• How should website development and software costs be treated in my accounts?

  The treatment depends on what you are buying. Routine subscriptions, hosting and maintenance are different from creating or acquiring an asset with lasting value. Check the accounting and tax rules separately: describing everything as software or marketing does not decide whether it can be deducted immediately.

• Is AIA relevant if I use cash basis accounting?

  Sole traders and partnerships using cash basis normally deduct qualifying equipment purchases as business expenses instead of claiming AIA. Cars have separate capital allowance rules and do not qualify for AIA.

• Is VAT included on every sale?

  No. VAT treatment depends on what you sell, where the customer is based and whether the supply is standard-rated, reduced-rated, zero-rated, exempt or outside the scope.

• Is my company dormant if it has no sales?

  Not necessarily. Companies House and HMRC use different tests for dormancy. Having no sales does not automatically make a company dormant if it has other activity or transactions. Check both positions before filing dormant accounts or assuming tax reporting has stopped.

• Is replacing something in a rental property a repair or an improvement?

  A repair normally restores an existing item or part of the property; an improvement changes or enhances it beyond repair. Replacing something with a modern equivalent can still be a repair where the improvement is incidental. Replacing furnishings can follow separate domestic-items rules. Initial refurbishment and work before letting can need particular care. Keep invoices, descriptions and photographs so your accountant can assess the treatment rather than relying on the contractor’s label.

• Is selling my unwanted belongings different from buying things to resell?

  Yes. Occasionally selling possessions you already own is different from buying or making goods to sell for profit. The activity determines whether you are trading, not simply the platform used. Valuable personal possessions can also raise separate Capital Gains Tax questions.

• Is this only for larger businesses?

  No. Ambitious small businesses and start-ups often gain the most from having an experienced sounding board and a clear plan to grow toward.

• Should I buy equipment before my year end to reduce tax?

  Buying qualifying equipment before year end may bring tax relief into that period. However, contract terms and payment timing matter. The purchase should also make business sense and fit your cash flow.

• Should I claim mileage or put a vehicle through the business?

  The best approach depends on whether you are a sole trader or company director, the vehicle, business mileage, private use and how it is bought or leased. Company vehicles can create personal benefit charges, and VAT recovery can be restricted. Mileage and actual vehicle costs cannot simply be claimed twice for the same use. CASS can compare the overall cost and tax treatment before you commit.

• Should I prepare for MTD before it becomes mandatory?

  Yes. Moving to suitable software and establishing good record keeping early will make the transition much easier.

• Should I register for VAT voluntarily?

  Voluntary registration can make sense if most customers are VAT registered, you have significant VAT-bearing costs, or being VAT registered fits the commercial position you want to present. It can also avoid having to change pricing and systems suddenly when compulsory registration arrives.

• Should I start as a sole trader or a limited company?

  There is no single answer. We will consider tax, risk, administration, ownership and your plans before recommending a structure.

• Should I trade as a sole trader or limited company?

  The right structure depends on tax, risk, administrative responsibilities and your longer-term plans. We can compare the options based on your circumstances.

• What alternatives are available to Annual Investment Allowance?

  Alternatives include full expensing, 50% and 40% first-year allowances, specific 100% first-year allowances and writing down allowances. Eligibility depends on your business structure, the asset and the purchase date.

• What are limited company accounts and what do they tell me?

  Limited company accounts are the formal annual financial statements of the company. They summarise its financial performance and position for the accounting period and form part of the company's statutory reporting obligations.

• What are payments on account?

  Payments on account are advance instalments towards the following year's tax bill. They are usually based on the previous year's Income Tax and Class 4 National Insurance.

• What are statutory accounts?

  Statutory accounts are the formal annual accounts a limited company must prepare in the required format for shareholders, Companies House and HMRC.

• What are writing down allowances?

  Writing down allowances spread equipment tax relief over time. The main-pool rate is generally 14% from April 2026 and the special-rate rate is 6%, applied to the remaining tax balance rather than the original purchase cost.

• What changes must I report when a director, shareholder or PSC changes?

  Director appointments, resignations and changes to relevant details need the appropriate Companies House filings. Changes to people with significant control (PSC) must also be reported under their own rules. Share issues, transfers and shareholder information have different recording and filing requirements, including maintaining the register of members. Do not assume everything can wait until the next confirmation statement. Tell CASS promptly so we can check the filings within our agreed scope and identify any legal work needed.

• What counts towards the VAT registration threshold?

  VAT taxable turnover: everything you sell that is not VAT exempt or outside the scope, including zero-rated sales. It is not the same as profit, and it is monitored on a rolling 12-month basis checked at the end of each month, as well as against the next-30-days test. Some supplies and some non-UK-established situations follow different rules — worth checking rather than assuming.

• What does a personal tax accountant cost?

  You can see an indicative price for personal tax work on our pricing page, based on the information you provide. What drives it is the complexity of the return — employment, dividends, property, capital gains — rather than the time of year. Some services are only available alongside our ongoing bookkeeping, and we will confirm the available combination and any eligibility requirements before quoting. Prices shown are plus VAT. The figure on the pricing page is indicative, based on the information you give us: we verify the scope on your Discovery Call and confirm your fee in a written proposal before any work begins.

• What happens financially when someone joins or leaves a partnership?

  The partners need to agree how profits, capital, assets and liabilities are dealt with, and update the relevant records and tax reporting. The partnership agreement is central. Ordinary partnerships and LLPs have different legal requirements, so the structure matters.

• What happens if I have both self-employment and rental income?

  For MTD for Income Tax, relevant gross income from self-employment and property is generally combined when checking whether the qualifying threshold applies. This is before deducting expenses. If you are within MTD, each self-employment and each relevant property business needs appropriate digital records and updates. CASS can check the applicable reference year, start date and any exemptions rather than looking at each income source in isolation.

• What happens if I lose a receipt?

  Try to obtain a replacement invoice or receipt from the supplier. A bank entry shows that a payment happened, but may not explain what was bought or provide the evidence needed for VAT recovery. Keep any supporting emails, order details and a note of the business purpose. Do not automatically discard the expense or reclaim VAT: ask CASS to assess the evidence and applicable rules.

• What happens if I make a mistake in a quarterly update?

  Correct the underlying digital records as soon as you identify the mistake. Quarterly updates are cumulative, so a later update can normally include corrections to earlier figures without resending every previous update. If the last update has already been sent, further correction may be needed before the tax return is submitted. CASS can check what needs changing and ensure the year-end figures reflect the corrected records.

• What happens if I miss the tax return deadline?

  HMRC may charge penalties and interest. Contact us as soon as possible so we can help complete the return and deal with any outstanding issues.

• What happens if I owe money to my company at year end?

  Money you owe your company is usually shown as an overdrawn director’s loan account. Leaving it outstanding can create a company tax charge, and a cheap or interest-free loan may create a personal benefit. The repayment date and how the balance arose both matter.

• What happens if I pay personal expenses from my company account?

  Tell your accountant or bookkeeper and identify the payment clearly. A personal purchase is not automatically a deductible business expense because the company paid for it. Depending on the circumstances, it may need to be recorded through your director’s loan account or dealt with as remuneration or a benefit. Any VAT claim must also be checked. CASS can help put the transaction in the right place.

• What happens if I register for VAT late?

  If you should have registered earlier, HMRC can treat the registration as effective from the date it should have happened. That can mean VAT is due on sales even if you did not charge customers VAT at the time.

• What happens if I run more than one sole-trader business?

  Each distinct self-employment normally needs its own digital records and quarterly updates under MTD for Income Tax. Your relevant gross income is considered together when assessing whether MTD applies. Several activities do not automatically mean several businesses, so the distinction should be checked. CASS can help organise the records and software around the actual businesses you operate.

• What happens if my VAT return is late?

  Late submissions or payments can lead to penalties and interest. Contact us quickly so we can help you bring matters up to date and understand your options.

• What happens if my business makes a tax loss?

  A tax loss may qualify for relief, but the options depend on your business structure, circumstances and the type of loss. It is not automatically a refund. Check the tax calculation and claim deadlines rather than assuming the loss disappears or cancels other tax.

• What happens to my prices and existing contracts when I register for VAT?

  From your effective registration date, you need to apply the correct VAT treatment to taxable sales. Whether you can add VAT to an agreed price depends on the contract and how the price was presented. If a price is fixed inclusive of VAT, the VAT may come out of the amount you receive. Review quotes, contracts, website prices and customer communications before registration takes effect.

• What happens to my tax position when I sell equipment I claimed allowances on?

  Selling equipment can affect your capital allowance calculation, even if you previously claimed its full cost through AIA. The disposal value is normally brought into the relevant allowance calculation and may create a taxable balancing charge. The accounting profit on the sale and any VAT are separate checks.

• What happens to stock and business assets when I stop trading?

  Stock and assets still need to be accounted for when trading stops. Selling them, keeping them personally or transferring them can have different tax consequences. VAT and capital-allowance adjustments may also apply, so prepare a closing list before disposing of anything.

• What information do I need for my Self Assessment tax return?

  This can include employment information, self-employment or partnership figures, property income, dividends, interest, pensions and other taxable income relevant to your circumstances.

• What is CIS gross payment status, and how does it work?

  CIS gross payment status allows a qualifying subcontractor to receive payments without CIS deductions. It changes how tax is collected, not whether profits are taxable. HMRC must approve the status, contractors must check it appropriately, and the subcontractor must maintain compliance.

• What is IR35, and when should my business check the off-payroll working rules?

  IR35 concerns people who work through an intermediary, usually their own company, but would be employees for tax purposes if engaged directly. Who assesses the arrangement depends on the client and engagement. Check the rules before agreeing the contract, rather than relying on the worker having a limited company.

• What is Making Tax Digital for Income Tax?

  Making Tax Digital for Income Tax is HMRC's system requiring affected sole traders and landlords to keep digital records, send quarterly updates and complete their annual tax reporting through compatible software.

• What is a Companies House personal code, and when do I need it?

  It is the personal code issued after you verify your identity with Companies House. It belongs to you, rather than to a company, and is different from the company authentication code. You use it when the rules require you to link your verified identity to a director or Person of Significant Control (PSC) role. Deadlines depend on your role and circumstances. Keep it secure and share it only through an agreed process with someone authorised to file for you.

• What is a director’s loan account?

  A director’s loan account records money owed between you and your company outside normal salary, dividends and expense repayments. If you lend the company money, it may owe you a balance. If you take money that has not been properly treated as another type of payment, you may owe the company. An overdrawn account can have company and personal tax consequences, so it should be monitored regularly.

• What is a limited cost business under the VAT Flat Rate Scheme?

  A limited cost business spends too little on qualifying goods under HMRC’s Flat Rate Scheme test. It must normally use a 16.5% flat rate, even if its trade usually has a lower rate. The test is based on relevant goods, not all business expenses, and needs checking each VAT period.

• What is full expensing and can my business use it?

  Full expensing lets companies subject to Corporation Tax deduct 100% of qualifying new and unused main-rate equipment costs upfront. It does not apply to sole traders, partnerships, cars or most equipment bought to lease out.

• What is partial exemption, and could it affect my business?

  Partial exemption can affect a VAT-registered business that makes both taxable and exempt sales. It determines how much VAT on costs can be recovered. Exempt sales and zero-rated sales are different, so the starting point is checking the activities correctly.

• What is qualifying income for MTD for Income Tax?

  Your combined gross income from self-employment and property, before expenses, in the reference tax year — not profit, and not including employment or dividend income. HMRC compares it with the phase thresholds: over £50,000 in 2024/25, over £30,000 in 2025/26, over £20,000 in 2026/27. Exemptions and exclusions apply.

• What is the 40% first-year allowance?

  Qualifying new and unused main-rate equipment bought from 1 January 2026 can receive a 40% deduction upfront. Writing down allowances apply to the remaining 60% from the next accounting period. Cars are excluded.

• What is the 50% first-year allowance?

  Companies can deduct 50% of qualifying new and unused special-rate equipment costs upfront. The remaining cost goes into the special-rate pool for writing down allowances from the following accounting period.

• What is the Annual Investment Allowance?

  AIA lets you deduct qualifying equipment costs from taxable profits in the period you buy them, within your available allowance. It can reduce your tax bill when you invest in your business.

• What is the current VAT registration threshold?

  £90,000 of VAT taxable turnover, correct at October 2026. For a UK-established business you must register if your taxable turnover in the previous 12 months goes over it — checked at the end of every month — or if you expect to go over it in the next 30 days alone. Different rules apply to businesses not established in the UK. Check the current figure and your registration date against HMRC's guidance, or ask us to check it with you.

• What is the current VAT threshold

  The UK VAT registration threshold is £90,000 of VAT-taxable turnover. For a UK-established business, you normally must register if your taxable turnover exceeds £90,000 over the previous rolling 12 months, checked at each month end, or you expect it to exceed £90,000 in the next 30 days alone. Taxable turnover includes sales subject to standard, reduced and zero-rate VAT. It generally excludes VAT-exempt sales. The threshold relates to sales, not profit, and does not reset at the start of your financial or tax year. You can also register voluntarily below the threshold. Different rules apply to businesses established outside the UK.

• What is the difference between a CIS contractor and subcontractor?

  Under the Construction Industry Scheme, a contractor pays subcontractors for construction work and may need to verify them, make deductions and submit monthly returns. A subcontractor carries out construction work for a contractor and may have deductions taken from payments. A business can be both. Some businesses outside construction can also fall within the contractor rules. CASS can check your role and the support required.

• What is the difference between a disbursement and recharging an expense?

  A disbursement is a payment made as an agent on your customer’s behalf that meets HMRC’s conditions. Recharging your own cost is different and normally forms part of your supply. Passing on the exact amount does not automatically make it a disbursement.

• What is the difference between cash-basis and traditional accounting for a sole trader?

  Cash basis generally recognises income when received and allowable expenses when paid. Traditional accounting measures income and costs in the periods they relate to, including unpaid balances and other adjustments. Cash basis is the default for eligible businesses, but choosing the right approach depends on your circumstances.

• What is the difference between identity verification and a confirmation statement?

  Identity verification confirms who an individual is. A confirmation statement confirms that the company information held by Companies House is correct and meets the relevant filing requirements. They are separate obligations, although a director’s verified identity is linked to their appointment through the required filings. If you are also a person with significant control, separate PSC verification details must be submitted. CASS can help check what is required for your roles and company.

• What must I do when I stop trading as a sole trader?

  Tell HMRC that you have stopped self-employment, complete the required final tax reporting and review any VAT or employer registrations. Stopping sales does not automatically close every obligation. Keep records of the cessation date, outstanding transactions and remaining assets.

• What paperwork should I prepare when paying a dividend?

  Check that the company has enough distributable profit, record the decision properly and prepare a dividend voucher for each shareholder being paid. Keep the paperwork with the accounts and match it to the payment. A bank transfer labelled dividend is not enough on its own.

• What purchases qualify for Annual Investment Allowance?

  Many equipment purchases qualify, including computers, tools, machinery, office furniture and vans. Cars, land and buildings themselves do not qualify for AIA, although certain building fixtures and systems can.

• What records do I need to keep for VAT?

  You need clear digital records of sales, purchases and VAT amounts, together with supporting invoices and other evidence where required.

• What records should I keep when buying or selling a rental property?

  Keep purchase and sale completion statements, contracts, legal fees, property taxes, ownership details and evidence of capital improvements. Retain rental records and finance information separately, and distinguish improvements from repairs already claimed. These records can be needed years later to calculate a gain. Contact CASS before completion: some property disposals have reporting and payment deadlines well before the annual tax return, and the requirements depend on your circumstances.

• What records will I need to keep for Making Tax Digital for Income Tax?

  Affected businesses and landlords need a process for maintaining the required income and expense information digitally in compatible software.

• What responsibilities remain mine when CASS handles my accounts?

  As a director, you remain responsible for the company’s records, filings and legal duties even when an accountant helps with them. CASS carries out the services agreed in your engagement, but needs complete information, timely responses and any required approvals. You should understand the accounts you approve, keep us informed of changes and ensure obligations outside our scope are handled. We explain the division of responsibilities before work begins.

• What should I do if I receive a Companies House reminder?

  Forward it to us promptly so we can check the deadline and confirm who is responsible for the filing.

• What should I do if a supplier has charged the wrong VAT?

  Ask the supplier to check the charge and issue the correct documentation. Do not manually change their invoice or assume you can reclaim the VAT you think should have been charged. If your VAT return is due, check the appropriate treatment before submitting it.

• What should I do if my tax code looks wrong?

  Check HMRC’s tax-code explanation against your jobs, pensions, benefits and estimated income. Incorrect or out-of-date information can cause too much or too little tax to be deducted. Use your Personal Tax Account or contact HMRC to correct the underlying details. Your employer normally follows the code HMRC issues rather than choosing a different one. CASS can help explain the calculation and, where authorised and agreed, assist with the query.

• What's the difference between annual accounts and a Corporation Tax return?

  Annual accounts report your financial performance and position for the year — profit and loss, balance sheet and notes — and are filed at Companies House. The Corporation Tax return (CT600) computes and reports your taxable profits and the tax due, with the accounts and computations filed to HMRC. They start from the same records but answer different questions, and both are normally prepared together.

• When are limited company accounts due?

  For an established company, accounts are usually due nine months after the accounting period ends. Different rules can apply to first accounts, so we will confirm your deadline.

• When can I deregister for VAT?

  A business may be able or required to deregister when taxable activity stops or taxable turnover falls below the relevant deregistration level, subject to HMRC's rules.

• When does Making Tax Digital for Income Tax start?

  It has started in phases, by qualifying income in a reference tax year: over £50,000 in 2024/25 joined from 6 April 2026; over £30,000 in 2025/26 joins from 6 April 2027; over £20,000 in 2026/27 joins from 6 April 2028. Qualifying income is combined gross self-employment and property income before expenses. Exemptions and exclusions apply, so it is worth checking your own position.

• When does the domestic reverse charge for construction VAT apply?

  It generally applies to specified construction services within CIS where the supplier and customer are VAT registered and the customer makes onward supplies of those services. The customer accounts for the VAT rather than paying it to the supplier. End users and qualifying intermediary suppliers can be treated differently, and written notifications matter. CIS registration alone does not settle the VAT treatment. CASS can check the conditions and invoice wording.

• When is Corporation Tax due?

  Corporation Tax is usually payable nine months and one day after the end of the accounting period, although different rules apply to some larger companies.

• When is the online Self Assessment deadline?

  The usual online filing deadline is 31 January following the end of the relevant tax year. We encourage clients to provide information much earlier so there is time to plan.

• When is the self assessment deadline?

  31 January following the end of the tax year for online filing and for paying any tax owed, with a second payment on account due 31 July if it applies to you. We aim to have your return done well before then, so you know the number in advance rather than in the last week of January.

• When must I register for VAT?

  If you are UK-established: when your VAT taxable turnover in the previous 12 months exceeds £90,000 (checked at the end of each month), or when you expect to exceed it in the next 30 days alone. Registration deadlines and effective dates differ between those two tests, and exceptions apply — including for businesses not established in the UK. We can check which test applies and when you have to register.

• When must Self Assessment tax be paid?

  The main payment deadline is usually 31 January, with a possible second payment on account due on 31 July. We will explain the exact amounts and dates that apply to you.

• When must a business register for VAT?

  If you are UK-established: when VAT taxable turnover in the previous 12 months exceeds £90,000 (checked at the end of each month), or when you expect to exceed it in the next 30 days alone. The registration deadline and the date registration takes effect depend on which test you meet, and there are exceptions — including for businesses not established in the UK.

• When should a new business register for VAT?

  You must register once you meet a test: VAT taxable turnover above £90,000 in the previous 12 months, checked at each month end, or turnover expected to exceed it in the next 30 days alone. A new business can also register voluntarily below the threshold, which can make sense if you reclaim VAT on costs or sell to VAT-registered customers. We can look at the numbers with you before you decide.

• Which VAT scheme is right for my business?

  That depends on your trade, turnover, customers and spending. We can compare the available schemes and recommend the most suitable approach.

• Which date decides when a sale goes on my VAT return?

  Under normal VAT accounting, the tax point usually decides the return period. This can depend on when goods are supplied, services are completed, a VAT invoice is issued or an advance payment is received. VAT Cash Accounting and certain supplies have different timing rules.

• Who may need to complete a Self Assessment return?

  You may need one if you are self-employed, receive rental income, have untaxed income, make certain capital gains or HMRC asks you to file. We can check your circumstances.

• Who needs to comply with Making Tax Digital?

  There are two separate regimes. MTD for VAT applies to all VAT-registered businesses: digital records and VAT returns filed through compatible software. MTD for Income Tax applies to sole traders and landlords in phases by qualifying income — over £50,000 in 2024/25 from 6 April 2026, over £30,000 in 2025/26 from 6 April 2027, over £20,000 in 2026/27 from 6 April 2028. Limited companies are not in MTD for Income Tax. Exemptions and exclusions apply.

• Why am I being charged VAT on software bought from overseas?

  An overseas supplier may charge VAT depending on its registrations and the customer details it holds. Alternatively, a UK business buying certain overseas services may need to account for VAT itself under the reverse charge. Check the invoice, supplier details and your VAT number rather than assuming the charge is correct or recoverable. Overseas services can also affect registration obligations for businesses not yet VAT registered.

• Will I need to submit four tax returns each year?

  No. Quarterly updates are not four full tax returns. They provide summary information during the year, followed by the annual tax reporting process.

• Will MTD change when I pay my tax?

  The move to digital records and quarterly updates does not by itself change the normal Self Assessment payment dates.

• Will you explain my year-end accounts?

  Yes. We believe you should understand the figures, not simply receive a document to sign.

• Will you explain the accounts?

  Absolutely. We believe understanding your figures is just as important as preparing them.

• Will you file everything for me?

  We prepare and submit the filings included in your letter of engagement — which commonly covers VAT returns, payroll submissions, company accounts, the Corporation Tax return and Self Assessment — once the necessary information, authorisations and approvals are in place. We agree deadlines for receiving records and your approval so submissions can be completed on time, and we will identify any duties outside our agreed scope and explain who handles them.

• Will you file my accounts with Companies House?

  Yes, where company accounts are included in your letter of engagement. We prepare the accounts, you approve them, and we file them with Companies House — and the Corporation Tax return with HMRC — once the records, authorisations and your approval are in place. We agree the dates we need things by so the filing deadline is met.

• Will you prepare my Corporation Tax return?

  Yes. We prepare the company tax calculation and Corporation Tax return as part of the agreed year-end service.

• Will you tell me how much tax I'll owe before it's due?

  Yes. Once we have complete information we give you an estimate of the likely liability and the payment date, so it is not a surprise. An estimate is not the final calculation: it changes if information arrives late, figures are adjusted, or your circumstances change. The final figure comes with the return you approve.