FAQ

Traditionally, it's thought that bookkeepers record the everyday transactions of the business, and accountants look at the bigger picture and handle tax and compliance.

However, with the advancement of accounting software bookkeepers often also set up software; produce monthly reports on the business's financial position and complete payroll and VAT returns. They work closely with Accountants.

Accountants tend to focus more on the filing of year end accounts and providing more complex advice and tax computations, often on an annual basis.

Type of Business:

Sole Trader / Partnership  -  file by 31 January;   Pay by 31 January

Limited Company   -  file 9 months after year end;   Pay 9 months & 1 day after year end

It may be advantageous to complete your tax return earlier so that the tax liability can be budgeted for

If a company director received any income or dividends from the company, in addition to PAYE, then a Self-Assessment Tax return is required.

Limited Companies, and VAT registered sole trader, should use accounting software for direct submissions of VAT returns and annual accounts.

Sole Traders currently do not need accounting software, a spreadsheet is fine.

However, due to Making Tax Digital for Income Tax Self Assessment, sole traders will need accounting software from April 2026 with turnover in excess of £50k, and from April 2027 for turnovers of more than £30k