All guides
Every guide by topic, each sourced to GOV.UK, legislation.gov.uk or the professional bodies. The topics, the tax calendar and the checklists are on guides and resources.
Running a practice
Engagement letters for accountancy practicesWhat ICAEW, ACCA and AAT require an engagement letter to cover: scope, client duties, fee basis, complaints, insurance, data protection and money laundering checks.Anti-money laundering supervision for accountantsWho supervises accountants under the Money Laundering Regulations 2017, HMRC registration fees, OPBAS, suspicious activity reports and the five-year record rule.Client due diligence for accountancy practicesWhen the Money Laundering Regulations require customer due diligence, what it involves, simplified and enhanced checks, PEPs, ongoing monitoring and reliance.Pricing methods for accounting servicesFixed fees, per-service fees, packages, value pricing and time-based fees, what each asks of the practice, and the ICAEW and ACCA rules on fee information.A year-end workflow for a limited company clientThe sequence from records request to filing for a limited company year end, with the Companies House and HMRC deadlines and a worked 31 March example.Changing accounts software in a practiceA checklist for moving a practice to new accounts software: timing around year ends, trial balances, record retention periods, agent authorisations and MTD.The HMRC agent services accountWhat the HMRC agent services account is, the tax adviser registration windows from May 2026, what you need to apply, copying authorisations, and team access.Agent authorisation and form 64-8How agents get client authorisation: the digital handshake, online agent authorisation and the paper 64-8, which tax uses which, and the time limits on each.Professional clearance when a client changes accountantThe ICAEW, ACCA and AAT rules on professional enquiry when a client changes accountant, what to ask the previous accountant, and what they must hand over.Professional body requirements for practising accountantsPractising certificates and licences, professional indemnity insurance, CPD, money laundering supervision and client money under ICAEW, ACCA and AAT rules.Data protection for accountancy practicesThe ICO data protection fee tiers, why an accountant is a controller, processor contracts, retention, breach reporting in 72 hours and subject access requests.
Year-end accounts and Companies House
FRS 105 and FRS 102 Section 1A comparedWho can use FRS 105 micro-entity accounts and FRS 102 Section 1A small company accounts, the size limits from April 2025, and what each must include.What iXBRL tagging isWhat inline XBRL is, why HMRC needs accounts and computations in iXBRL with the CT600, and when Companies House will need it.Companies House accounts changes in April 2028From April 2028 Companies House will take accounts only from software in iXBRL, small companies must file a profit and loss account, and abridged accounts end.Companies House identity verification for directors and presentersIdentity verification for directors, PSCs and LLP members has applied since 18 November 2025. Checks for people who file start no earlier than November 2027.Accounts filing deadlines and late filing penaltiesCompanies House deadlines for private company and LLP accounts, the late filing penalties from £150 to £1,500, and when they double.First accounts deadlines for a new companyHow a new company's first accounting reference date is set and when its first accounts are due at Companies House.Changing a company's year endThe rules for shortening or lengthening a company's accounting reference date with form AA01, and when it cannot be changed.Dormant company accountsWhen a company is dormant for Companies House and for HMRC, what it files, form AA02, and when a dormant company needs a CT600.LLP accounts requirementsThe size limits for small and micro LLPs from April 2025, what a small LLP files at Companies House, deadlines and the LLP SORP.The accountants' report on unaudited accountsWhat the accountants' report on the preparation of unaudited statutory accounts says, who it is addressed to, and the professional bodies' guidance.What a small company's statutory accounts containThe balance sheet, profit and loss account, notes, directors' report and statements in a small company's accounts, and which parts go to members.Abridged and filleted accounts for small companiesWhat abridged and filleted accounts are, the member consent and statement under section 444(2A), and how both options end for filings from 1 April 2028.Audit exemption for small, subsidiary and dormant companiesThe section 477 small company audit exemption, the balance sheet statements, members' right to an audit, excluded and group companies.The directors' report for a small companyWhat a small company's directors' report contains, the exemption statement, approval and signing, and filing now and from April 2028.Approving and signing company accountsBoard approval of the accounts, the director's signature on the balance sheet, signing the directors' report, the statements above the signature, and filing dates.Revising defective company accountsRevising defective accounts under section 454 and SI 2008/373: replacement or supplementary note, the 28-day limits and the CT600.The note on advances, credits and guarantees to directorsWhat section 413 requires in the notes for advances, credits and guarantees to directors, the totals, and micro-entity accounts.Striking off a company with form DS01Voluntary strike off with DS01: the three-month conditions, who is told within 7 days, fees, objections, DS02 and the Crown.Restoring a dissolved company to the registerAdministrative restoration with form RT01 and restoration by court order: who can apply, the 6-year limit, the £341 fee and filings.
Corporation tax
Capital allowances rates for 2026The 2026 capital allowances: £1m AIA, full expensing, the 40% first-year allowance from January 2026, and the main pool rate cut to 14% from April 2026.Corporation tax rates and marginal relief for 2026 to 2027Corporation tax for the year from 1 April 2026: 19% small profits rate, 25% main rate, marginal relief between £50,000 and £250,000, and associated companies.HMRC's accounts and Company Tax Return service has closedThe joint HMRC and Companies House service for filing company accounts and the CT600 closed on 31 March 2026. What companies and agents use now.CT600 supplementary pages and when each one is neededThe CT600 supplementary pages from CT600A to CT600P: what each is for, which companies need it, and how the pages fit into the Company Tax Return.Associated companies and the corporation tax limitsHow associated companies are counted from 1 April 2023, the control test, which companies are ignored, and how the £50,000 and £250,000 limits divide.Corporation tax trading losses and how to use themTrading losses: current year and 12-month carry back, carry forward since April 2017, the £5 million deductions allowance, terminal relief and group relief.Research and development relief for accounting periods from April 2024R&D relief from 1 April 2024: the 20% merged scheme credit, enhanced support for intensive SMEs, the claim notification, additional information and CT600L.Close companies and the section 455 charge on loans to participatorsWhat a close company is, the 35.75% section 455 charge on loans made from 6 April 2026, repayment within 9 months, the 30-day rule, section 458 relief and CT600A.Dividends and distributable reservesWhen a company can pay a dividend under the Companies Act 2006, which accounts to rely on, unlawful dividends, the paperwork, and the 2026-27 dividend tax rates.Corporation tax payment dates, instalments and interestWhen corporation tax is due, quarterly instalments for large and very large companies, the payment reference, and HMRC's late payment and repayment interest.Registering a company for corporation taxTelling HMRC a company is active for corporation tax within 3 months, the information HMRC needs, the 10-digit UTR, and dormant companies yet to trade.Corporation tax penalties for late returns and inaccuraciesCompany Tax Return late filing penalties doubled for returns due from 1 April 2026: £200, £400, the 10% tax-based penalties, repeat lateness and inaccuracies.
VAT
The VAT flat rate scheme and limited cost tradersWho can join the VAT flat rate scheme, when a business must leave, the 16.5% limited cost trader rate and the 2% and £1,000 test.VAT registration and deregistration thresholdsThe £90,000 VAT registration threshold, the past 12 months and next 30 days tests, effective dates, the £88,000 deregistration threshold and exceptions.The VAT cash accounting schemeWho can use VAT cash accounting, the £1.35 million joining and £1.6 million leaving limits, excluded transactions and what to do with VAT on leaving.The VAT annual accounting schemeHow the VAT annual accounting scheme works: the £1.35 million and £1.6 million limits, 9 monthly or 3 quarterly payments, and the 2-month return.VAT partial exemption and the de minimis testsHow partly exempt businesses recover VAT: the standard method, rounding, the £625 a month de minimis limit, simplified tests and the annual adjustment.The VAT domestic reverse charge for construction servicesWhen the construction VAT reverse charge applies, end user and intermediary notices, the 5% disregard, invoice wording and how each side fills in the return.Postponed import VAT accountingHow postponed VAT accounting works for imports: who can use it, the import declaration, monthly statements from CDS and boxes 1, 4 and 7 of the return.VAT on goods between Great Britain, Northern Ireland and the EUVAT on goods under the Windsor Framework: XI VAT numbers, GB to NI sales and movements, NI to EU dispatches and acquisitions, and NI distance sales.VAT late submission penalties, late payment penalties and interestVAT penalty points by return frequency, the £200 penalty, late payment penalties at day 15 and day 30, the 10% second penalty and late payment interest.Making Tax Digital for VAT rulesMaking Tax Digital for VAT: who it covers since April 2022, the digital records to keep, what counts as a digital link, bridging software and exemptions.VAT return boxes 1 to 9 explainedWhat goes in each of the nine VAT return boxes, with how postponed import VAT, the reverse charge and Northern Ireland and EU goods affect them.Correcting VAT errors on earlier returnsHow to correct VAT errors: the £10,000 or 1% of box 6 threshold up to £50,000, the online disclosure, the 4-year limit and deliberate errors.
Self Assessment
Who must file a Self Assessment tax returnWho needs a Self Assessment return for 2025 to 2026: sole traders over £1,000, partners, landlords, capital gains, the child benefit charge and untaxed income.Registering a client for Self AssessmentThe 5 October registration deadline, registering sole traders, partners and others, forms CWF1, SA1, SA400 and SA401, and when the UTR arrives.Self Assessment payments on accountWhen payments on account are due, the £1,000 and 80% tests, the 31 January balancing payment, reducing them with SA303, and a worked example.Self Assessment deadlines and penalties for 2025 to 2026Paper returns by 31 October 2026, online by 31 January 2027, the £100 and £10 daily penalties, late payment penalties at 5% and HMRC interest.SA103S or SA103F for self-employmentWhen a sole trader uses the short SA103S or the full SA103F pages for 2025 to 2026, the £90,000 turnover limit, and what the full pages add.The £1,000 trading and property allowancesHow the £1,000 trading allowance and property allowance work, partial relief against expenses, who cannot claim them, and when to tell HMRC.The residential property finance cost restrictionHow section 272A ITTOIA 2005 restricts mortgage interest relief for landlords, the 20% basic rate tax reduction, carry forward and worked examples.The High Income Child Benefit ChargeThe High Income Child Benefit Charge from 2024 to 2025: the £60,000 and £80,000 thresholds, 1% per £200, paying through PAYE, and opting out.Capital Gains Tax on UK property and the 60-day returnThe 60-day report and pay deadline for UK property, the UK property account, 2026 to 2027 rates and allowance, private residence relief and non-residents.Basis period reform and transition profitsThe tax year basis for sole traders and partners from 2024 to 2025, the 2023 to 2024 transition year, transition profit spread over 5 years and overlap relief.
Payroll and CIS
Real Time Information reporting with the FPS and EPSWhen to send the Full Payment Submission and Employer Payment Summary, paying HMRC by the 22nd, payment references and the late filing penalties by employer size.Payroll year end for employersThe payroll year-end steps and dates: the final FPS, P60s by 31 May, P11D and P11D(b) by 6 July, Class 1A by 22 July, and setting up 2026-27 tax codes.P60 and P45 forms for employersWhat a P60 and a P45 contain, when an employer must give them, the parts of a paper P45, the starter checklist for new employees, and tax codes after leaving.P11D, P11D(b) and Class 1A National InsuranceReporting benefits in kind on the P11D and P11D(b), Class 1A at 15% for 2026-27, the 6 July and 22 July dates, payrolling benefits and the changes from April 2027.Employment allowance for 2026-27The employment allowance of £10,500 for 2026-27, who can claim, the single-director exclusion, connected companies, claiming on the EPS and claims for past years.Automatic enrolment duties for employersAutomatic enrolment duties: the duties start date, assessing staff, the £10,000 threshold for 2026-27, contributions, declaring and re-enrolling.Statutory sick, maternity and family pay for 2026-27Weekly rates for 2026-27 of SSP, SMP, SPP, SAP, ShPP, SPBP and neonatal care pay, the April 2026 sick pay changes, and recovering 92% or 109% through the EPS.Directors' National Insurance and the annual earnings periodHow directors' Class 1 National Insurance works on an annual earnings period, the alternative arrangement and the 2026-27 thresholds, with an example.The Construction Industry Scheme for contractorsWhat a CIS contractor must do: registering, verifying subcontractors, deductions at 20%, 30% or nil, monthly returns by the 19th, nil returns and penalties.The Construction Industry Scheme for subcontractorsHow a CIS subcontractor registers, the gross payment status tests and turnover limits, deduction statements, and claiming deductions back through SA or the EPS.
Bookkeeping
Double-entry bookkeeping for UK businessesHow double-entry bookkeeping works: debits and credits, the accounting equation, the five kinds of account and worked journal entries for common transactions.How to structure a chart of accountsHow to number and group a chart of accounts for a UK company or sole trader so it maps to the Companies Act formats, the SA103F and the VAT return.Bank reconciliation explainedWhat a bank reconciliation is, the differences it finds, a worked example from cash book to statement, and how often to reconcile each bank account.Accruals and prepayments with worked journalsHow to post accruals, prepayments, accrued income and deferred income at a period end, with worked journal entries and the reversal the next month.Depreciation methods under FRS 102 and FRS 105Straight-line, reducing balance and units of production depreciation, what FRS 102 and FRS 105 require, worked figures, and why tax uses capital allowances.The trial balance explainedWhat a trial balance is, how it is extracted and used to prepare accounts, the errors it reveals and the errors it cannot, with a worked example.Suspense accounts and how to clear themWhat a suspense account is, the errors that put entries there, how to clear suspense with correcting journals, and why it must be nil at the year end.Directors' loan accountsWhat goes through a directors' loan account, s455 tax at 35.75% on overdrawn balances, benefit in kind over £10,000, the official rate and disclosure.How long to keep business recordsHow long companies, sole traders, VAT-registered businesses and employers must keep records, what counts as a record, and the Making Tax Digital rules.Cash basis and accruals basis for sole tradersCash basis has been the default for sole traders and partnerships since 2024-25 with no turnover limit. Who is excluded, opting out, interest and losses.
Making Tax Digital
Making Tax Digital timeline from 2015 to 2028Every dated Making Tax Digital milestone from Budget 2015 to April 2028: VAT in 2019 and 2022, the Income Tax delays, thresholds, legislation and penalties.A Making Tax Digital readiness plan for a practiceGroup clients by qualifying income into the April 2026, 2027 and 2028 starts, then plan records, authorisations, software and client letters for each group.Main and supporting agents for MTD for Income TaxWhat a main agent and a supporting agent can each do under Making Tax Digital for Income Tax, how to be authorised, and how the agent services account works.MTD quarterly updates, deadlines and correctionsWhat a Making Tax Digital for Income Tax quarterly update contains, the standard and calendar periods, the deadlines, and how cumulative updates carry corrections.The MTD for Income Tax final declaration step by stepFrom the fourth quarterly update to the declaration by 31 January: adjustments, allowances, losses, other income, the tax calculation and amendments.MTD for Income Tax exemptions and digital exclusionWho is exempt from Making Tax Digital for Income Tax automatically, who must apply, HMRC's digital exclusion grounds, and the temporary exemptions to April 2027.Penalties under Making Tax Digital for Income TaxLate submission penalty points and the £200 penalty, late payment penalties for 2026-27 and 2027-28, first-year leniency, and how points are removed.Bridging software or full MTD software for clientsWhat HMRC requires of Making Tax Digital for Income Tax software, how bridging links a spreadsheet, the digital link rules and a side-by-side comparison.What HMRC and the NAO found about MTD for VATPublished findings on Making Tax Digital for VAT from HMRC's final evaluation, its revenue study and the National Audit Office, with the figures cited exactly.HMRC estimates of who joins Making Tax Digital for Income TaxHMRC's published estimates of how many sole traders and landlords join Making Tax Digital for Income Tax at £50,000, £30,000 and £20,000, with each source.
AI in accounting
Where AI tools can help in a small accountancy practiceUses of AI tools in a small practice, from reading receipts to drafting letters, with the limits of each and the review the professional bodies expect.What ICAEW, ACCA, AAT and ICAS have published on AIThe AI guidance published by ICAEW, ACCA, AAT and ICAS, with dates and links, and the ethics principles it rests on, chiefly due care and confidentiality.AI tools and UK data protection for accountantsThe ICO's guidance for a practice using AI on client data: lawful basis, DPIAs, transparency, accuracy, automated decisions, processors and transfers.Client confidentiality and AI suppliersHow the duty of confidentiality in the accountancy codes of ethics applies to AI tools, and the questions to put to an AI supplier before client data goes in.AI tools and anti-money laundering duties in a practiceHow the Money Laundering Regulations 2017 apply when a practice uses software for ID checks and screening, with record keeping, reporting and tipping-off risks.How to check AI output before it reaches a clientA review method for AI output in accounts and tax work: source every figure, re-perform calculations, agree to the ledger and keep evidence of the review.What a small firm's AI policy coversAn outline of an AI policy for a small accountancy practice: approved tools, data rules, engagement letter points, review, records, training and incidents.