Accounting Blog

A sole trader is a one-person business structure, but confusion arises when profits, decisions, or risks are shared. This guide explains whether a sole trader can have multiple owners, when arrangements become partnerships, and why getting the structure right matters for tax, liability, and control.

A practical guide for sole traders on subcontracting and tax. Learn how subcontractor payments affect profits, allowable expenses, VAT, record keeping, worker status, and compliance risks. Covers common pitfalls, cashflow issues, and best practices so your tax return accurately reflects subcontracted work.

Income earned in advance can boost cash flow but complicate taxes. This guide explains when advance payments become taxable, how cash and accrual methods differ, which deposits and subscriptions qualify for deferral, and how contracts, bookkeeping, and documentation help you stay compliant and avoid costly surprises during audits and filings.

Business parking and tolls are often deductible, but only when travel is genuinely for business. This guide explains when parking and tolls can be claimed, when commuting blocks a claim, how mixed-purpose trips are apportioned, and what records you need to claim confidently without overstepping tax rules and compliance requirements.

Receiving an unexpected tax bill as a sole trader can be stressful, but it’s rarely unmanageable. This guide explains how to verify the bill, check for errors, communicate with the tax authority, manage cash flow, set up payment plans, and reduce the risk of future surprises.

Learn how self-employed professionals, contractors, and freelancers can claim travel expenses between multiple clients. This guide explains allowable costs, mileage vs actual expenses, public transport, accommodation, record-keeping, and tips to separate business and personal travel. Maximize claims while staying compliant with tax rules and audit requirements.

Learn how to handle cancelled invoices correctly in bookkeeping. Understand the difference between voiding invoices and issuing credit notes, manage unpaid, partially paid, or fully paid invoices, maintain accurate tax reporting, preserve audit trails, and keep customer accounts clean. Follow step-by-step procedures for reliable accounting and compliance.

Learn what HMRC reclassification means, why income or expenses may be reassessed, and how it affects tax, NICs, and VAT. Discover common triggers, practical steps to reduce risk, how to respond, and strategies to protect your business. Clear records and professional advice can help manage exposure and avoid penalties.

Learn how to determine if professional exam expenses are tax-deductible or reimbursable. This guide covers employees, freelancers, and company directors, explaining allowable costs like exam fees, courses, travel, and materials, while highlighting common pitfalls, pre-trade costs, and strategies to maintain proper records for a defensible claim.