Plain-English tax and accounting for UK small business
A salary taxed through PAYE does not absorb freelance, marketplace or equipment-hire income. This review sets out when a second income stream must be disclosed, how the £1,000 allowances work and what records employees should keep during 2026/27.
Most owner-managers review salary and dividends each year but leave the company pension untouched. This check-up explains how employer contributions work for corporation tax, how the annual allowance and carry-forward apply in 2026/27, and what paperwork makes the position defensible.
Small business rates relief can remove or reduce a significant fixed cost, but eligibility depends on the property, its rateable value and how it is occupied. With new rateable values in England from April 2026, directors and sole traders should check the current position rather than rely on an earlier bill.
A donation paid from the business bank account can look like a business cost, but for a sole trader it usually remains personal. This review explains how Gift Aid works in 2026/27, what records to keep, and where limited companies follow a different path.
A home-office claim is not a discount on the whole house. For 2026/27, sole traders and directors need a method that matches the business use, evidence that supports the ratio, and a clear line between simplified flat rates and actual household costs.
A company can stop trading without disappearing from the register. This guide explains the different meanings of dormancy at Companies House and HMRC, the three realistic routes open to directors in 2026, and the filings and traps that need attention before deadlines arrive.
Reimbursing home electric car charging is straightforward only when the payment is tied to business mileage and supported by a clean record. This guide sets out the advisory electricity rate, the evidence that keeps a claim outside the P11D, and the VAT and sole trader traps to avoid in 2026/27.
A dividend is a company-law distribution, not merely a label attached to a bank transfer. This article explains the records that support a lawful dividend in 2026/27, from board minutes and interim accounts to distributable profits, and sets out a practical checklist for small companies.
The £50,000 and £250,000 corporation tax limits are not always available to each company in full. Where companies are associated, the thresholds are shared — and that can move a modestly profitable company onto the 25% main rate. This guide explains the rule and the checks to make in 2026/27.
A PAYE Settlement Agreement lets an employer meet the tax and NIC on minor staff gifts without individual P11D entries. This guide compares a PSA with the trivial benefits exemption and the £150 staff party rule, and works through a practical Christmas-gift calculation for 2026/27.
AI tools now categorise transactions, reconcile feeds and draft VAT figures, but HMRC's expectations of the business owner have not moved with the technology. This checklist sets out the review, audit trail and record-keeping steps that keep an automated bookkeeping process defensible.
The VAT Flat Rate Scheme remains a useful simplification for some small businesses, but it is not a universal saving. This 2026 review explains the limited-cost trader test, the 16.5% rate, and how to decide whether standard VAT accounting would leave you better off.
VAT bad debt relief can recover output tax on invoices a customer never pays, but the claim depends on timing, write-off and evidence. This checklist explains the six-month rule, partial payments, credit notes and the records HMRC expects in 2026.
HMRC's simplified mileage rates are straightforward until business travel passes 10,000 miles. This guide explains the 2026/27 rates for sole traders and directors, the business and private travel boundary, electric vehicle considerations and the records that make a claim defensible.
Platforms such as eBay, Etsy and Vinted now pass seller data to HMRC each January, and information letters are arriving on doormats across the UK. This guide explains how to tell a genuine clear-out from a taxable trade, how the £1,000 trading allowance actually works, and how to answer HMRC in a measured, well-documented way.
Owner-managers often settle the salary-versus-dividend question on instinct or on last year's figures. Working through five sequential questions — cash need, salary level, band position, total cost and retained reserves — produces a more reliable answer, and exposes the traps that quietly erode the saving.
Identity verification now sits alongside confirmation statements and director appointments at Companies House. This plain-English action plan explains who must verify, how the filing link works and what small company owners should diarise in 2026.
Hiring a first employee brings payroll duties that begin before day one. This adviser-led checklist sets out the registrations, reporting habits and records that keep small mistakes from becoming avoidable HMRC bills in 2026.
A Christmas party can be a tax-free thank-you, but only if the details are right. This guide covers the £150 per head limit, plus-ones, VAT and the staff-versus-client entertaining divide.
A first profitable year can feel like progress until HMRC asks for this year’s tax and a down payment on the next. Here is how payments on account work, with a worked example and a cash-flow checklist for sole traders and partners.