Accounting Blog

Learn how long small businesses should keep accounting records, from tax filings and payroll to contracts and bank statements. This guide explains legal requirements, audit protection, and best practices for record retention, helping owners stay compliant, reduce risk, control clutter, and build a secure, organized financial history for long-term success.

A UTR number is a vital part of the UK tax system for self-employed individuals, companies, and anyone completing a Self Assessment tax return. This complete guide explains what a UTR number is, who needs one, how to apply, where to find it, and how to use it correctly.

Limited company directors can claim many legitimate business expenses, but strict rules apply. This guide explains what directors can claim, how the “wholly and exclusively” rule works, common pitfalls to avoid, and best practices for travel, home office, technology, and record keeping.

Cash basis accounting helps sole traders track income and expenses when money actually changes hands. This guide explains how it works, who it suits, key advantages and limitations, and practical tips for managing cash flow, tax timing, and bookkeeping with confidence as your business grows from startup to sustainability planning.

Learn the key differences between cash basis and accrual accounting, including revenue recognition, expense timing, financial statements, tax implications, and business suitability. This guide explains how each accounting method affects cash flow, profitability, compliance, and decision making, helping business owners choose the right approach for accurate reporting and sustainable growth.

Many UK business owners start as sole traders and later incorporate. This guide explains what changing to a limited company really means, when it makes sense, key tax and legal differences, practical steps to take, and common mistakes to avoid—so you can transition confidently as your business grows over time.

If you’re a UK sole trader, personal allowance isn’t a special business perk. It’s the standard Income Tax threshold applied to your total income after profit is calculated. Learn how personal allowance interacts with taxable profit, Self Assessment, PAYE income, and National Insurance so you can budget and avoid bills.

A UK sole trader can employ staff while keeping the same business structure. This guide explains PAYE registration, employment status, contracts, payroll, insurance, pensions, and legal duties. Learn how to hire employees correctly, avoid common mistakes, and decide when employing staff or incorporating makes sense.

Missing a self-assessment deadline can trigger penalties, interest, and estimated tax bills. This guide explains filing versus payment deadlines, how charges escalate, when enforcement starts, and how to appeal or arrange payment plans. Learn practical steps to reduce damage, regain compliance, and avoid future stress for individuals, freelancers, and businesses.