Small Business Accounting FAQs

Most small businesses need bookkeeping, annual accounts, tax return preparation, payroll, VAT support, management accounts and general tax advice. Good accounting records also help you understand business performance, manage cash flow and plan ahead.

The best accounting software depends on the size, structure and needs of your business. Common options include Xero, QuickBooks and FreeAgent. We can advise which option is most suitable before you commit, as changing software later can be time-consuming and costly.

No. We work with sole traders, partnerships, limited companies, start-ups and growing businesses. Our services can be tailored depending on the level of support required.

We offer bookkeeping, annual accounts, corporation tax returns, Self Assessment tax returns, VAT returns, payroll, company secretarial support, tax planning and business advice.

Yes. We provide bookkeeping support for small businesses, including digital record-keeping, bank reconciliation, VAT preparation and regular reporting.

Yes. We can assist with Self Assessment tax returns, payroll, VAT returns, annual accounts, corporation tax and general HMRC compliance.

We provide a full range of accountancy and tax services, including bookkeeping, payroll, VAT, accounts preparation, tax returns, business advice and company compliance support.

Yes. HMRC can check business and tax records to make sure the correct amount of tax has been paid. Sole traders usually need to keep records for at least 5 years after the 31 January Self Assessment deadline, while limited companies usually need to keep company and accounting records for 6 years from the end of the relevant financial year, or longer in some cases.

The usual deadline for paper Self Assessment tax returns is 31 October. The usual deadline for online Self Assessment tax returns and paying the tax due is 31 January.

If you need to complete a Self Assessment tax return, you must usually tell HMRC by 5 October after the end of the tax year in which you started trading.

A UTR is a Unique Taxpayer Reference. It is a 10-digit reference issued by HMRC and is used to identify you or your business for Self Assessment and other tax matters.

The UK tax year normally runs from 6 April to 5 April the following year.

If you fail to declare income, HMRC may charge penalties and interest in addition to any tax due. It is important to disclose all taxable income correctly.

Missing a tax deadline can lead to penalties and interest. The amount depends on the type of tax, how late the return or payment is, and your individual circumstances.

Yes. We can advise whether you need to register for VAT, assist with the VAT registration process and help you file VAT returns through suitable accounting software. You must usually register if your taxable turnover for the last 12 months goes over £90,000, or if you expect it to go over £90,000 in the next 30 days.

The current VAT registration threshold is more than £90,000 in taxable turnover. You may also be able to cancel VAT registration if your taxable turnover falls below the deregistration threshold of £88,000.

Making Tax Digital for VAT requires VAT-registered businesses to keep digital VAT records and submit VAT returns using compatible software.

Making Tax Digital for Income Tax is an HMRC system for eligible sole traders and landlords. It requires digital records to be kept using compatible software and quarterly updates of income and expenses to be sent to HMRC.

Making Tax Digital for Income Tax is being introduced in stages. If your qualifying income is more than £50,000 for the 2024 to 2025 tax year, you need to use it from 6 April 2026. If your qualifying income is more than £30,000 for the 2025 to 2026 tax year, you need to use it from 6 April 2027. If your qualifying income is more than £20,000 for the 2026 to 2027 tax year, you need to use it from 6 April 2028.

Qualifying income generally means your total gross income from self-employment and property before expenses are deducted. If you have both self-employment and property income, they may be added together when working out whether you need to follow Making Tax Digital rules.

Yes. We can help review whether the rules apply to you, set up suitable accounting software, organise your bookkeeping and prepare your digital records for HMRC reporting.

Employment Allowance allows eligible employers to reduce their employer Class 1 National Insurance liability by up to £10,500 for the tax year.

Yes, employees can be paid in cash, but this does not remove your payroll obligations. PAYE, National Insurance and any other deductions must still be correctly calculated, reported to HMRC and recorded through payroll.

RTI stands for Real Time Information. It is the system used by employers to report PAYE payroll information to HMRC on or before each payday.

Employers must keep PAYE payroll records for 3 years from the end of the tax year they relate to. Other business and tax records may need to be kept for longer depending on the business structure and type of record.

Gondal Accountancy provides professional accountancy and tax support to individuals and businesses. We work to high professional standards and aim to provide clear, practical and reliable advice.