Tax, VAT & MTD
What has to be reported, when, and what Making Tax Digital changes.
These answers provide general information, not advice tailored to your circumstances. Rules can change and exceptions may apply — speak to the CASS team before making a tax, accounting or financial decision.
Yes, once authorised, we can communicate with HMRC about your VAT affairs within the scope of our engagement.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 29 September 2026
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.
Reviewed by Paul Barnes, Founder · Last reviewed 2 October 2026
Yes. We can help set up the records, maintain the bookkeeping and complete the required submissions as part of an agreed service.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 29 September 2026
Yes. We can prepare your VAT return from your accounting records, review it and submit it to HMRC with your approval.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 29 September 2026
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.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 2 October 2026
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.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 2 October 2026
Yes. We can review your qualifying income and circumstances and explain when you are expected to join.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 29 September 2026
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.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 2 October 2026
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.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 29 September 2026
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.
Reviewed by Paul Barnes, Founder · Last reviewed 2 October 2026
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.
Reviewed by Paul Barnes, Founder · Last reviewed 2 October 2026
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.
Reviewed by Paul Barnes, Founder · Last reviewed 2 October 2026
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.
Reviewed by Paul Barnes, Founder · Last reviewed 2 October 2026
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.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 2 October 2026
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.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 2 October 2026
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.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 29 September 2026
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.
Reviewed by Paul Barnes, Founder · Last reviewed 2 October 2026
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.
Reviewed by Paul Barnes, Founder · Last reviewed 2 October 2026
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.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 29 September 2026
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.
Reviewed by Paul Barnes, Founder · Last reviewed 3 October 2026
Yes, although international VAT can be complex. We will review the facts and may recommend specialist advice where necessary.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 29 September 2026
Yes. We can explain whether sufficient profits are available, the paperwork required and the personal tax implications.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 29 September 2026
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.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 2 October 2026
Absolutely. We'll recommend the option that's right for your business.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 29 September 2026
Yes. We can review historic errors and advise on the correct way to disclose or amend them.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 29 September 2026
Yes. We can help form the company and make sure the accounting and tax setup is handled properly.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 29 September 2026
Yes. We can explain the accounting and tax steps, prepare final returns and coordinate with your legal adviser where necessary.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 29 September 2026
Yes. We can discuss whether a limited company is suitable and help with formation and the initial accounting setup.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 29 September 2026
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.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 29 September 2026
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.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 2 October 2026
Yes. We will review the information provided and claim expenses and reliefs that are supported by the rules and appropriate evidence.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 29 September 2026
Yes. We can help you register with HMRC and make sure the right records are in place from the beginning.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 29 September 2026
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.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 2 October 2026
Yes. We can calculate gains and advise on reporting requirements for property, shares and other assets. More complex cases may require additional specialist input.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 29 September 2026
Yes. We can explain how cash accounting works and whether it suits the way your business gets paid.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 29 September 2026
Yes. CASS can support relevant Companies House identity verification requirements as an authorised corporate service provider where the service is available and appropriate.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 29 September 2026
Yes. We can help gather records, explain the figures and communicate with HMRC where we are authorised to do so.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 29 September 2026
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.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 2 October 2026
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.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 29 September 2026
Yes. We can prepare property income figures, review allowable costs and complete the relevant parts of your return.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 29 September 2026
Yes. We can prepare the business figures, complete the tax return and help you plan for the tax due.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 29 September 2026
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.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 29 September 2026
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.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 2 October 2026
Yes. We can help with the necessary HMRC registration and explain the records you need to keep.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 29 September 2026
Yes. We can help assess whether registration is needed and complete the registration process.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 29 September 2026
Yes. We can set up Xero and the related processes needed to keep suitable digital records.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 29 September 2026
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.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 2 October 2026
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.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 2 October 2026
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.
Reviewed by Paul Barnes, Founder · Last reviewed 2 October 2026
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.
Reviewed by Paul Barnes, Founder · Last reviewed 2 October 2026
Yes. You will need compatible software or a suitable combination of connected software to keep digital records and submit information to HMRC.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 29 September 2026
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.
Reviewed by Paul Barnes, Founder · Last reviewed 2 October 2026
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.
Reviewed by Paul Barnes, Founder · Last reviewed 3 October 2026
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.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 2 October 2026
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.
Reviewed by Paul Barnes, Founder · Last reviewed 3 October 2026
Possibly. Filing requirements are not based only on whether tax is due. We can check whether HMRC still expects a return.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 29 September 2026
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.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 2 October 2026
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.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 2 October 2026
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.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 2 October 2026
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.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 2 October 2026
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.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 2 October 2026
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.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 2 October 2026
No. The current Income Tax rules are aimed at qualifying sole traders and landlords, rather than income earned through a limited company.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 29 September 2026
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.
Reviewed by Paul Barnes, Founder · Last reviewed 2 October 2026
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.
Reviewed by Paul Barnes, Founder · Last reviewed 3 October 2026
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.
Reviewed by Paul Barnes, Founder · Last reviewed 3 October 2026
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.
Reviewed by Paul Barnes, Founder · Last reviewed 2 October 2026
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.
Reviewed by Paul Barnes, Founder · Last reviewed 2 October 2026
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.
Reviewed by Paul Barnes, Founder · Last reviewed 3 October 2026
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.
Reviewed by Paul Barnes, Founder · Last reviewed 2 October 2026
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.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 2 October 2026
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.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 2 October 2026
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.
Reviewed by Paul Barnes, Founder · Last reviewed 2 October 2026
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.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 29 September 2026
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.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 29 September 2026
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.
Reviewed by Paul Barnes, Founder · Last reviewed 3 October 2026
No. Ambitious small businesses and start-ups often gain the most from having an experienced sounding board and a clear plan to grow toward.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 29 September 2026
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.
Reviewed by Paul Barnes, Founder · Last reviewed 2 October 2026
Yes. Moving to suitable software and establishing good record keeping early will make the transition much easier.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 29 September 2026
There is no single answer. We will consider tax, risk, administration, ownership and your plans before recommending a structure.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 29 September 2026
The right structure depends on tax, risk, administrative responsibilities and your longer-term plans. We can compare the options based on your circumstances.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 29 September 2026
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.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 29 September 2026
Statutory accounts are the formal annual accounts a limited company must prepare in the required format for shareholders, Companies House and HMRC.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 29 September 2026
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.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 2 October 2026
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.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 2 October 2026
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.
Reviewed by Paul Barnes, Founder · Last reviewed 2 October 2026
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.
Reviewed by Paul Barnes, Founder · Last reviewed 2 October 2026
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.
Reviewed by Paul Barnes, Founder · Last reviewed 2 October 2026
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.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 29 September 2026
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.
Reviewed by Paul Barnes, Founder · Last reviewed 2 October 2026
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.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 29 September 2026
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.
Reviewed by Paul Barnes, Founder · Last reviewed 2 October 2026
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.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 29 September 2026
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.
Reviewed by Paul Barnes, Founder · Last reviewed 2 October 2026
This can include employment information, self-employment or partnership figures, property income, dividends, interest, pensions and other taxable income relevant to your circumstances.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 29 September 2026
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.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 29 September 2026
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.
Reviewed by Paul Barnes, Founder · Last reviewed 3 October 2026
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.
Reviewed by Paul Barnes, Founder · Last reviewed 2 October 2026
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.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 2 October 2026
£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.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 2 October 2026
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.
Reviewed by Paul Barnes, Founder · Last reviewed 2 October 2026
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.
Reviewed by Paul Barnes, Founder · Last reviewed 2 October 2026
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.
Reviewed by Paul Barnes, Founder · Last reviewed 3 October 2026
You need clear digital records of sales, purchases and VAT amounts, together with supporting invoices and other evidence where required.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 29 September 2026
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.
Reviewed by Paul Barnes, Founder · Last reviewed 3 October 2026
Affected businesses and landlords need a process for maintaining the required income and expense information digitally in compatible software.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 29 September 2026
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.
Reviewed by Paul Barnes, Founder · Last reviewed 3 October 2026
Forward it to us promptly so we can check the deadline and confirm who is responsible for the filing.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 29 September 2026
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.
Reviewed by Paul Barnes, Founder · Last reviewed 3 October 2026
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.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 2 October 2026
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.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 29 September 2026
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.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 29 September 2026
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.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 2 October 2026
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.
Reviewed by Paul Barnes, Founder · Last reviewed 2 October 2026
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.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 29 September 2026
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.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 29 September 2026
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.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 29 September 2026
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.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 2 October 2026
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.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 29 September 2026
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.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 2 October 2026
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.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 2 October 2026
That depends on your trade, turnover, customers and spending. We can compare the available schemes and recommend the most suitable approach.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 29 September 2026
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.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 29 September 2026
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.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 2 October 2026
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.
Reviewed by Paul Barnes, Founder · Last reviewed 2 October 2026
No. Quarterly updates are not four full tax returns. They provide summary information during the year, followed by the annual tax reporting process.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 29 September 2026
The move to digital records and quarterly updates does not by itself change the normal Self Assessment payment dates.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 29 September 2026
Yes. We believe you should understand the figures, not simply receive a document to sign.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 29 September 2026
Absolutely. We believe understanding your figures is just as important as preparing them.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 29 September 2026
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.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 2 October 2026
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.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 2 October 2026
Yes. We prepare the company tax calculation and Corporation Tax return as part of the agreed year-end service.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 29 September 2026
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.
Reviewed by Paul Barnes, Founder, Cloud Accounting Support Services · Last reviewed 2 October 2026