Designed for non-VAT registered businesses, we'll do your bank reconciling so you can relax knowing it's done right, and on time.

Bank reconciliation - non-VAT registered companies

A 12-month plan designed for new business owners who may want some extra guidance around business structure, accounting software setup and training, and more.

We will provide you with guidance and support on what you'll need to do to establish and commence running your new business

We can provide advice on the best business structure for your needs and take care of establishment and registrations

Set up your Xero file so it's optimised for you and give you initial training so you start off in the right way

Preparation of a budget tailored to your business and input into Xero so you can track how you're going

Starter Pack

We will help get your business officially incorporated

Company formation

Designed for sole trader businesses, we'll do your bank reconciling so you can relax knowing it's done right, and on time. Take one less task off your plate.

Bank reconciliation - sole trader businesses

A 12 month plan designed for established businesses. Additional support in the form of management accounts and time with your accountant

Completing quarterly management accounts tailored to your business requirements and aligned to your VAT quarters

Quarterly meetings with your accountant to chat business planning, strategy, or questions about your management accounts

Success pack

The initial setup of your Xero accounting software tailored to your business's needs, plus a one hour training session where you'll learn the best practices for bookkeeping and financial tracking.

Xero setup & training

We prepare your quarterly VAT returns ready for you to review and pay.

Prepare VAT

Do you know all there is to know on filing UK tax returns? This list provides a quick rundown of the important info such as deadlines, recordkeeping and more.

Understand UK tax return requirements for sole traders and companies. Read our quick fire list of all the important things you should know about filing income tax in the UK.

UK Tax Returns Guide | Self Assessment & Company Tax Explained

The facts to know when filing a tax return in the UK

Do you know all there is to know about filing UK tax returns? There are always misconceptions floating around, so we’ve put together a handy fact sheet to cut through the noise. Whether you're filing for the first time or a seasoned professional, you need to file your tax return correctly, on time, and (ideally)  with the best outcome possible. 

This list provides a quick rundown on the key definitions, deadlines, and aspects you should know, as well as pitfalls to be aware of. As they say, knowledge is power - so read on to keep yourself informed.

Taxable income and deductions must be reported in pound sterlings

Late filing of tax returns will result in penalties and late payment of your tax liability will result in interest charges.​

Income tax returns are used to calculate the amount of income tax owed for the tax year.  Even if you're filing frequent VAT returns, you still must file an income tax return, as it is a separate tax.​

Tax returns can be amended up to 12 months from the filing deadline if you find errors or omissions after they've been filed.​

The rundown on self assessment tax returns

The tax year in the UK runs from the 6th of April to the following 5th of April. 

You must file a tax return if you derived over £1,000 of any form of sole trader business income, self-employment income, or contracting income. You also need to file a tax return if you have earned income that has not already been taxed in the UK - this includes rental income (including AirBnB), income from savings, investments and dividends, tips and commission, and overseas income. 

You also need to file a self assessment tax return if you were a partner in a business partnership or you earned £150,000 or more.

If you’re an individual and your only source of income is a UK-earned salary or wage, and you earn less than £150,000 a year, you don’t need to file a tax return.  HMRC will contact you directly if they owe you money (or if you owe them!)

Taxable income includes salary and wages, interest, dividends, business income, and rental income.  

You can claim a tax credit for tax deducted before it was paid to you - for example, PAYE deductions made by your employer, Withholding Tax (WHT), or if you’re a CIS worker.

The deadline for filing your self assessment income tax return on paper is the 31st of October after the end of the tax year. However, if you choose to file it online the deadline is the 31st of January after the end of the tax year.

Your tax liability must also be paid by the 31st of January after the end of the tax year.

Payments on account for Self Assessment are typically due in two instalments: 31 January during the tax year and 31 July following the end of the tax year. These payments are based on the tax due for the previous year. If your total tax bill for the previous year exceeds £1,000, you will usually need to make these payments. If your actual tax bill for the year is lower than the payments you’ve made, HMRC will refund the excess. If your tax bill is higher, the remaining balance must be paid by 31 January following the end of the tax year.

Business expenses can be claimed in a tax return against business income as long as they are incurred in the course of your business or trade. You’re not eligible to claim expenses that are for personal use, and if there is an expense that has a personal and business element you will need to split out the business element and claim a deduction for this only.

If your expenses are minimal or you did not keep records of your expenses, including receipts and invoices, you could claim the £1000 trading allowance instead.

If your company is trading, you must file a corporate tax return, regardless of whether or not your company made a profit. 

Your tax liability needs to be paid 9 months and 1 day after the end of your accounting period (except if the company is deemed to be a large or very large company in which case quarterly installment payments are needed). ​

Your tax return is due 12 months after the end of your accounting period. 

A company tax return is used to calculate the amount of corporation tax owed for the tax year. 

If your company generates a loss during the period the tax return calculates the taxable loss that can be carried forward and offset against future taxable profits, therefore reducing your tax liability in future periods. ​Taxable losses can also be carried back and used against profits generated in previous years to claim a corporation tax repayment.

Taxable income includes trading profit, interest income, investment income and income from gains made on the disposal of capital assets. 

Tax credits are sometimes available, for example, if you carry out research & development and hit certain criteria relating to innovation and making advancements in science or technology then tax credits can be claimed. 

Business expenses can be claimed in a tax return against business income as long as they are incurred wholly and exclusively for the purposes of the trade. 

HM Revenue & Customs is responsible for collecting taxes from both individuals and businesses, as well as administering tax laws passed down by the UK government. They also manage benefits, tax credits, and other financial support for UK citizens (such as student loans and child support). Understanding how HMRC works is a vital part of submitting a tax return correctly, so here are some key points to keep in mind.

HMRC can open enquiries into tax returns to ensure compliance with tax laws.

HMRC can impose fines and penalties for non-compliance with tax laws.

HMRC provides tax tables and calculators to help calculate the amount of tax owed.

Employers are required to deduct Pay As You Earn (PAYE) tax from employees' salaries and wages and remit it to HMRC.

HMRC can negotiate payment plans for taxpayers unable to pay their tax debt in full.

HMRC can issue tax assessments if it finds errors or omissions in tax returns.

Tax refunds can be claimed by filing a tax return or by contacting HMRC.

HMRC refunds overpaid tax, including PAYE and VAT. 

HMRC can offset tax refunds against outstanding tax debts.

Sole traders are required to keep their financial records for 5 years from the 31 January filing deadline following the end of the tax year they relate to. For example, records for the 2022/23 tax year must be kept until 31 January 2029. 

Limited companies must retain their financial records for 6 years from the end of the financial year to which they relate.

Employers must keep records of employees' salaries and wages, PAYE tax deducted, and auto-enrolment contributions for 3 years from the end of the tax year to which they relate.

Professional help from an accountant can minimise the risk of errors and penalties and help ensure compliance with tax laws.

How can Beany help with UK business tax returns?

We understand accounting and tax can be complicated and we're here to help. Beany's certified accountants and friendly team can prepare and file your business tax return plus returns for shareholders/directors. We carefully interpret and apply accounting and tax legislation to enable you to pay the least amount of tax legally possible.

Our expertise comes without the jargon and is designed to help you save both time and money. To find out more about how we can help, book a call to discuss your requirements.

Beany Resources delivered straight to your inbox.

The ultimate fact sheet on UK tax returns and HMRC

Everyone tries to make the most of recording their personal vehicle as a business expense while the HMRC is doing their best to minimise the eligibility.

EXPENSES  •  5 JUNE 2025  •  6 MIN READ

Find out how to claim motor vehicle expenses for your UK business. Learn about HMRC rules, mileage rates, capital allowances, and what you can deduct.

Claiming Motor Vehicle Expenses in the UK

Here’s the deal. Everyone is trying to make the most of their ability to record their personal vehicle use as a business expense, and in response, HMRC is doing their best to minimise the eligibility criteria.​

When you’re a client of ours, you won’t have to worry too much – we make sure you always claim the right amount. But regardless, let’s explore how the system works.​

Motor vehicles for sole traders and partnerships

Is it smarter to borrow money to purchase a vehicle, or lease instead?

If your vehicle is used solely for business purposes, all motor vehicle expenses (e.g. fuel, maintenance, servicing, insurance, MOTs, replacement tyres, and similar) can be claimed as expenses.

Business purposes doesn’t include school drop-offs, going to the supermarket, or even travelling between home and work. 

When a sole trader or partnership chooses to also use a business vehicle privately, the costs need to be separated.

In order to claim vehicle expenses you will need to maintain a logbook. A logbook records all travel for both business and personal. It notes the distance, date and reason for each trip. This information can then be used to understand the proportion of use allocated to the business, and we can choose one of two methods:

Flat rate expense - for the first 10,000 miles travelled, claim £0.45 per business mile for cars and vans. A lower rate of £0.25 per business mile gets applied to additional miles. Motorcycles and bicycles apply a lower rate of £0.24 and £0.20, respectively, regardless of the amount of miles travelled.

Actual expenses - Apply the percentage of business travel to all vehicle expenses incurred i.e. if it’s 70% of the time, 70% of a MOT or a service can be claimed as a business expense.

There are a number of options for recording your mileage in a log book. Driversnote have created a very handy template which you can download here, or you might want to consider a mileage tracker app.

In order to claim motor vehicle expenses through either of the methods above, it is important to keep a logbook. 

It is worth noting that if you claim capital allowances on the purchase price of the vehicle you will not be able obtain a tax deduction through the flat rate expense method. You will instead need to use the second method listed above. 

Motor vehicles for company structures (as opposed to sole traders)

The treatment of motor vehicle expenses in relation to companies will depend on whether you, as an individual, own the car, or whether the company owns the car.

If you personally own the vehicle then you would need to make mileage claims to the company. 

You would need to keep a record of all the business miles you have travelled, for which the company can reimburse you at the following rates:

£0.45 for the first 10,000 business miles travelled.

£0.25 for any additional business miles. 

If a motorcycle or bicycle is used for work a lower rate of £0.24 and £0.20, respectively, applies.

This reimbursement would be tax-free for you, and would be a tax-deductible expense for the company. 

Alternatively, if the company owned the vehicle then it could claim the full cost of MOTs, fuel, services and any other vehicle related costs. 

If the vehicle, owned by the company, was also used by you for personal use this would be an employee benefit and would result in a tax liability arising on both you and the company. 

The value of the benefit and the resulting tax liability would depend on a number of factors, including:

Number of days during the year it was available to you for personal use

An additional taxable benefit arises if the company pays for the fuel used for personal use. 

These benefits would need to be reported on a P11D. 

Can I claim VAT on the purchase of a vehicle for use in my business? 

Broadly speaking, the answer is NO, except in the following cases:

The business is the car - for example a taxi or driving instructor, or

The car will be used for business purposes only, and is not available for private use. You must be able to prove to HMRC that it is not available for private use.

If you lease a car the rules are a little different and there is more scope for reclaiming the VAT. 

As with above, if the car is for business use only and there is no personal use of the car (and there is evidence to prove this to HMRC) then the full VAT on the lease costs can be reclaimed. 

If the car is for personal and business use you are able to claim 50% of the VAT.   VAT can also be claimed on the fuel used for business use. VAT on private use fuel cannot be reclaimed. 

Make sure to provide your accountant with the sale and purchase agreement and your financing arrangement. They can record it in your accounting software and ensure it's accurately recorded in your next VAT return.

Are my loan repayments a business expense?

No, they aren’t. The payments are going towards reducing your loan balance. However, the interest on the loan can be claimed for business purposes. Your accountant makes this adjustment when they prepare your financial statements.

What happens when I sell a business vehicle?

If you’ve claimed VAT on the purchase price, you need to charge VAT on the sale price

If the sale is to yourself or a related party, you’ll need to know its market value (you’re not allowed to sell it to yourself for £1)

Tax must be paid on any profit from the sale (although since vehicles usually fall in value over time this doesn’t often apply)

Your asset needs to be removed from the fixed asset register (it’s best to leave that to your accountant to do)

If the proceeds from the sale don't go through a bank account connected to your accounting software, you just need to provide your accountant with the sale price and they'll handle the rest.

Is it smarter to borrow to purchase a vehicle, or lease instead?

The vehicle belongs to you or the company, assuming you meet the loan conditions

VAT can only be reclaimed if the car is the business (ie taxi or driving instructor) or if the car is not available for personal use

It’s an asset, capital allowances will be available on the vehicle meaning that depending on the CO2 emissions you could get tax relief of up to 100% in the first year.  

The loan repayments are not deductible, but the interest portion is

In nearly all cases, the vehicle doesn’t belong to you or the company.

It’s not a business asset, so we can’t claim capital allowances on it. 

VAT can be claimed on the full purchase price if entirely for business use, or 50% of the purchase price if available for personal use

The lease payments are fully tax deductible. 

Here’s when we often get the follow-up question: 'What is my best option for tax purposes?'

That’s one we can’t answer. It’s more of a business decision and it depends on your cash-flow, available finance and personal preferences.

Beany are accountants for ambitious businesses, delivering big firm expertise without the big cost. We handle everything accounting-related (such as annual compliance, bookkeeping, financial insights and strategy), and help business owners make smarter decisions for their business and lifestyle through our responsive, friendly expertise. Book a call or get in touch if you want to discuss your business and see how we can help.

What motor vehicle expenses can I claim for my business?

Expenses

The cost of getting an accountant for businesses depends on several factors: from business size, timing, expertise to location.

EXPENSES  •  5 JUNE 2025  •  5 MIN READ

What affects the cost of an accountant for your UK business? Explore the key factors that influence pricing, from business size to services needed.

How Much Does an Accountant Cost for a UK Business?

Dealing with accounting can be tedious and stressful, but it’s a necessary chore for every business owner. It can be challenging to balance your business, maintain good accounting records, analyse financial statements, and comply with tax deadlines. Hence, hiring an accountant is a wise decision. Although it’s considered an overhead expense, paying an accountant ensures that your finances are in check, that you’re compliant with the law, and often saves you far more in tax than you spend on the accountant’s fees.​

The cost of an accountant in the UK can start from around £500 per year for the smallest and most straightforward business, but will be impacted by business structure and size, and the type of services and support you are looking for. An accountant may charge a fixed monthly fee or an hourly charge (varying from £50 to £400+). However, other factors, such as the scope of the work and the accountant's experience and expertise must be considered as well.​

What’s the difference between a bookkeeper and an accountant?

Bookkeeping and accounting are integral parts of your business’s finances. Many business owners think they are one and the same, however, there are a few key differences.

A bookkeeper is typically involved in recording business transactions (e.g. payroll, invoicing, payment of bills). Their job is more repetitive. It does not require a lot of high-level knowledge or experience to be a bookkeeper. Normally, university graduates or business administrators with some training can take on the job. Their main focus is to make sure the accounting records are accurate and up to date. 

An accountant provides insights based on the key financial data. Depending on their experience and knowledge, they can provide strategic advice, tax planning for the future and more. They review the business’s financial statements, budget for the coming year, prepare and file financial statements with Companies House and tax returns with HMRC, and analyse business performance. ​

Often, accounting providers (like us) will offer bookkeeping services too.

The cost of an accountant commonly depends on several factors such as business size, expertise, business timing, experience level, level of accounting support you need, the tidiness of record keeping, and location.

There's a general rule that applies when it comes to the cost of a business accountant: the bigger and more complex your business is, the more the accountant needs to review. Compared to a small business that is operating under a sole trader structure, larger companies may likely have more transactions. For example, a sole trader consultant who has minimal expenses and invoices a few different clients each month will have less transactions than an e-commerce business that sells thousands of products online every day. This means accountants need to spend more time reviewing the financial data and turning this data into financial statements and tax returns. ​

At Beany, our fees are based on your business's gross annual income or turnover. The Form Package has a monthly fee of £95 (VAT exclusive) if your annual gross earning is up to £150k. If your income exceeds this threshold, you'd move into our Flow or Flex package. ​

Some accountants have vast experience in specific industries e.g. construction, farming, real estate. The cost of hiring an accountant who specialises in the construction industry for example, might be higher due to its complexity. Not only do they have to know and comply with specific laws and regulations, but also they need to have an in-depth understanding of job costing, revenue recognition using the percentage of completion method, and CIS.

If you’re looking for an accountant closer to the date when your tax is due, the cost can also increase. Consult an accountant in advance of the filing date to avoid the stress of leaving it to the last minute and the extra cost of expediting the process. ​

Another option is to hire an accountant who offers fixed monthly fees. For example, Beany breaks your accountant fees into 12 months and you’re guaranteed to pay a fixed monthly fee. The packages include financial statements, company tax return, personal tax returns for up to 2 directors/shareholders, confirmation statement, as well as unlimited support and advice for day to day queries.

Your accounts are in good hands with Beany, we’ll send you an alert and your dedicated accountant will do everything you need after completing the hassle-free questionnaire (you save time sending heaps of paperwork to your accountant!).

Experience plays a role in how much an accountant costs. A certified accountant with more experience will be more expensive. Although you can choose to use a less expensive accountant, be sure to do your due diligence to see if they meet your expectations. In the UK, the commonly recognised certification for accountants is ICAEW (ACA) or ACCA. Be sure to find a good Chartered Accountant. They may appear to be expensive to start with, but in reality, the services they provide to you may save you more on tax or increase business sales.

If you need more support from your accountant, that will obviously push the fee up. If you have no idea about accounting, you are likely in need of more help from your accountant to teach you, from the basic VAT ruling, bank reconciliation and so on. However, if you have been in business for many years, you may already know all the tax deadlines, Xero functions, which requires less help from your accountant.​

Businesses operating under different business structures have an impact on the level of accounting support you need. Sole traders won’t need the same level of support as a business operating under partnership or company structures.  The bare minimum support you need from your accountant is to meet compliance with HMRC. However, if you’re running a small business as a sole trader, your accounting and tax requirements will be more straightforward than partnerships or companies. You can read more on business structure in this article.

The better you keep your records tidy and up to date, the cheaper your accountancy fee will be. Some business owners have the idea to dump all information to the accountant at year end, and expect things to be tidied up nice and quick. It can be done, but it will also be more costly. As more time and effort is spent digging into the records. ​

Also, it is important to remember it is your business to start with. We generally find business owners with good record keeping and willingness to learn accounting knowledge will have good business results and keep accounting fees low. With the help of technology, it isn’t that hard. When you make a large purchase, simply take out your phone and take a photo of the invoice, and upload that to Xero straight away. This can reduce the work for your accountant at year end, asking you about an invoice from several months back, which you will find hard to recall what you bought and where the invoice is. ​

In general, accountants in big cities such as London will charge higher fees than accountants located in smaller towns or more rural areas. However, the key isn’t to find the cheapest one, but the best one at the best price.

Do I need an accountant for my small business?

It is common for small business owners to believe that they don't need an accountant if they’re using accounting software. But the truth is: it is better to have both. Technology certainly helps, but hiring an accountant will ensure you're properly guided and compliant with laws and regulations. Having them on board can not only help you improve your financial systems, but also eliminate the headache when it comes to understanding the nuances behind the key numbers and enabling you to grow your business further. 

Read more: How to find the right accountant for your small business

Beany are accountants for ambitious businesses, delivering big firm expertise without the big cost. We handle everything accounting-related (such as annual compliance, bookkeeping, financial insights and strategy), and help business owners make smarter decisions for their business and lifestyle through our responsive, friendly expertise. Book a call or get in touch if you want to discuss your accounting requirements and how we can help.

The cost of an accountant for your UK business

Need to file a P11D? Learn what employee benefits need to be reported, who needs to submit the form, and how P11Ds work with PAYE and Class 1A NICs.

P11D & Employee Benefits Explained | UK Guide for Employers

We’re not going to get too technical here, just the basics and some figures to show the impact.​

In reality, companies could have many employees receiving all types of benefits, which result in multiple (and complex) calculations. We won’t get into that, but we're going to talk about the basics of employee benefits every business owner should know. ​

A P11D is a form used by employers in the UK to report any non-cash benefits provided to employees. The most common non-cash benefits are:

These benefits are reported through the P11D and may be subject to additional tax and National Insurance contributions. 

Here’s a simple example showing the difference between two employees receiving the same remuneration value, but in different forms.​

Gross salary: £65,000, plus use of a company vehicle

Employer claims the expense of £65,000 salary and costs associated with owning the vehicle (including fuel, insurance, loan interest, maintenance, repairs, etc.)

Fair? We think not, and more importantly, HMRC thinks not.​

Employee benefits taxation aims to square things up.

Employees are taxed on their salary and any benefits received, and the tax is based on their total income. The P11D ensures that these benefits are reported to HMRC, and employees will pay tax on the value of the benefit.

Jane’s salary is subject to PAYE tax as normal.

John’s salary, plus the benefit of the company car, will be taxed. The value of the benefit (such as the car) will be added to his total taxable income.

Employers must report these benefits to HMRC on the P11D form. Employers must also pay Class 1A National Insurance contributions on the value of the benefits provided to employees. The P11D form must be submitted by July 6th after the end of the tax year (April 5th), and employers must pay any associated National Insurance by July 22nd.

Reimbursements are where the employee pays a bill on behalf of the company. The most common are accommodation and fuel.​

The employee provides a receipt to the employer and receives the reimbursement. The company records this as a tax-deductible expense.​

Reimbursements aren’t included in a P11D as they are simply repaying the employee, not providing any benefit.​

Certain small gifts and vouchers provided to employees can be exempt from P11D reporting. Specifically, if the cost of a gift or voucher is £50 or less per gift, it is generally exempt from P11D reporting and does not need to be declared to HMRC. Employees can receive multiple gifts throughout the year, and as long as each individual benefit does not exceed £50 they will qualify for the tax exemption.

There are a number of benefits that can be provided to employees that have no tax implications and don’t need to be included on a P11D. These include:

Recognition and awards such as long service awards (cannot be cash)

Staff welfare services such as counselling

Beany are an online accounting firm in the UK. We handle everything accounting-related (such as annual compliance, bookkeeping, financial insights and strategy), and help business owners make smarter decisions for their business and lifestyle through our responsive, friendly expertise.

We can help clients with P11D submissions, ensuring everything is accurate and in line with HMRC regulations.

If you're looking for an accountant for your business, book a call or get in touch with us.

VAT can be tricky, depending on the situation. In this blog, we’ll cover VAT on second hand goods and how much you can claim back.

Understand how VAT applies to second-hand goods in the UK. Learn about the margin scheme, and your obligations when buying or selling second-hand items.

VAT on Second-Hand Goods UK | VAT Rules Explained

Let’s say you’re running a landscaping business and want to purchase a lawnmower. You decide to save on costs and buy a pre-owned one. Chances are, you’ll find yourself asking 'how do I deal with the VAT on second-hand goods?'

We often receive questions from business owners on this topic. What if you’re not VAT-registered? What if the seller doesn’t provide a tax invoice? How much can you claim back?

Things can get tricky, so let’s cover the basics.

In the UK, purchasing second-hand goods generally falls into one of the two categories:

If you purchase second-hand goods from an entity that is not registered for VAT (such as a private individual on Facebook Marketplace), you can’t claim VAT back on the purchase. These goods should be categorised as ‘zero-rated’ when recording the transaction and preparing your VAT return.

When you purchase second-hand goods from an entity that is registered for VAT, and you have a valid tax invoice, you can claim back the VAT on your VAT return.

To get the VAT portion of your purchase, for standard-rated purchases take the total price paid and divide by 6. For reduced-rated purchases, take the total price paid and divide by 21. You should pay through your business bank account and treat it as a business purchase, as well as a VAT purchase in your software.

For example, if you purchase a second-hand printer for £120, the standard rated VAT portion would be £120/6= £20. You would then be able to claim £20 from HMRC in your next VAT return.

When purchasing from someone who isn’t VAT registered, you won’t receive a VAT invoice, and there will be no VAT incurred on the items you buy. In this case, you wouldn’t be able to reclaim any VAT from HMRC in your next VAT return. 

To make claims for VAT on second-hand goods, you need to have fully paid for the goods. It’s also important to keep documentation such as the purchase invoice.

You need to keep appropriate records in order to claim VAT. If you purchase from a person who’s not registered for VAT, a tax invoice is not required. However, you should still document the following:

If you purchase second-hand goods from a VAT-registered entity, you’ll need to keep a valid invoice. A valid VAT invoice should include the following information:

If you’re VAT-registered and purchase second-hand goods for resale from a non-registered entity, you will not be able to claim VAT on the purchase. However, you will still need to charge VAT on the sales.  Some goods are eligible for the VAT Margin Scheme.

Rather than the full selling price, you can use the VAT Margin Scheme and pay VAT based on the difference between what you paid for an item, and what you sold it for.

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