Accounting Blog

Learn how to prepare for an HMRC investigation with practical guidance on records, VAT, PAYE, internal controls, and communication. This in-depth article explains why enquiries happen, common risk areas, and how strong bookkeeping, documentation, and governance can reduce stress, limit scope, and protect your business during tax compliance reviews confidently.

Clear accounting records help online businesses understand profitability, manage cash flow, and stay compliant with tax rules. This guide explains the essential records to keep, from sales and expenses to inventory, platforms, and payouts, plus best practices to build a reliable, scalable record-keeping system.

Sole traders in the UK usually do not submit formal statutory accounts to HMRC like limited companies. Instead, they report business income and expenses through Self Assessment and must keep accurate records to support those figures. These records effectively act as their accounts for tax purposes.

Made a mistake on your UK Self Assessment tax return? This guide explains how to fix errors after submission, whether online or by writing to HMRC. Learn deadlines, amendment options, disclosures, penalties, refunds, and practical steps to correct income, expenses, and tax calculations calmly and accurately with confidence and clarity.

Learn what a tax year really means and how to record income and expenses correctly. This guide explains cash versus accrual accounting, year-end cut-off, accruals, prepayments, and common timing mistakes, helping individuals and businesses choose the right tax year with confidence and avoid costly errors.

Learn what bad debts mean in a business context, when they qualify as allowable expenses, and how tax relief works. This guide explains trading debts versus loans, evidence requirements, accounting methods, VAT considerations, and practical steps to write off irrecoverable customer invoices correctly and reduce taxable profit.

HMRC sometimes issues estimated tax bills when returns are missing, PAYE data is wrong, or income details are incomplete. These estimates can be higher or lower than reality. Understanding why estimates arise, how to challenge them, and how to replace them with accurate figures can prevent overpayment, penalties, and unnecessary stress.

Making Tax Digital compliance doesn’t always require an accountant. This guide explains what MTD involves, when you can manage it yourself, and when professional support adds real value. Learn how software, complexity, and time pressures affect the decision for sole traders, landlords, and small businesses across UK tax obligations today.

Discover how the Flat Rate VAT Scheme works, who it suits, and when it can cost you more. This guide explains sector percentages, limited cost trader rules, and the key trade-offs between simpler VAT bookkeeping and losing input VAT reclaims—helping UK small businesses decide with real-world examples.