Local accountancy & tax support for small businesses & individuals in Belfast

An accountant can provide valuable guidance on:

• Choosing the appropriate business structure (sole trader, partnership, limited company).
• Registering with HMRC and Companies House.
• Setting up accounting systems and software.
• Advising on tax planning and compliance.

A sole trader operates their business personally, bearing unlimited liability, whereas a limited company is a separate legal entity, offering limited liability protection. Taxation differs: sole traders pay Income Tax on profits, while limited companies pay Corporation Tax on profits and may distribute income via dividends. Choosing the appropriate structure depends on factors like income level, risk, and long-term business goals.

The decision hinges on factors such as projected income, risk exposure, and tax efficiency. For instance, higher profits may make a limited company more tax-efficient due to lower Corporation Tax rates compared to higher Income Tax rates for sole traders. It’s advisable to consult an accountant to assess your specific situation: contact us.

Maintain records of all income and expenses, including invoices, receipts, bank statements, and payroll records. These documents are essential for accurate financial reporting and compliance with tax regulations. Digital record-keeping is encouraged, and using accounting software can streamline this process.

• 31 October: deadline for paper tax returns.
• 31 January: deadline for online tax returns and payment of any tax owed.
• 31 July: deadline for the second payment on account.
• 5 April: end of the tax year.

Failing to meet tax deadlines can result in penalties and interest charges. For instance, a £100 penalty is imposed for a late Self Assessment return, with additional penalties accruing over time. It’s crucial to submit returns and payments on time to avoid unnecessary costs.

Making Tax Digital for Income Tax started on 6 April 2026. If your qualifying income from self-employment and property was over £50,000 on your 2024/25 tax return, you should already be using it. If it is over £30,000 on your 2025/26 return, you’ll need to use it from 6 April 2027, and if it is over £20,000 on your 2026/27 return, from 6 April 2028.

HMRC will review your returns and may send you a notice, but even if you don’t receive a formal letter, it’s your responsibility to check your income against the thresholds and sign up when required. From September 2026, HMRC has also started signing up people who need to use MTD for the 2026/27 tax year and have not signed themselves up, so it is better to sign up yourself and make sure your details are right.

Yes, as long as your spreadsheets are digitally linked to compatible bridging software, which sends your quarterly updates and tax return to HMRC. Copying figures across by hand (cut and paste) doesn’t count as a digital link.

MTD uses a points-based penalty system for late submissions. If you had to start using MTD from 6 April 2026, HMRC will not apply penalty points for late quarterly updates in the first tax year (2026/27), but penalties still apply for a late tax return or a late payment. Repeated late submissions after that could lead to penalties.

No. The way you pay tax and the dates payments are due stay the same, and your tax return is still due by 31 January after the end of the tax year. What changes is when and how you send your records: quarterly updates through compatible software.