Category: All News

Not all costs can be claimed as business expenses in the UK. HMRC only allows expenses that are incurred wholly and exclusively for business purposes. If a cost is personal or has a mixed use that is not properly apportioned, it cannot be fully claimed. Common mistakes include claiming personal shopping, everyday meals (unless they…
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The UK Government has confirmed that the planned changes to Companies House accounts filing requirements will now come into effect from April 2028, rather than 2027. This gives businesses additional time to prepare for the new reporting requirements. Under the new rules, most companies will be required to file their accounts electronically using compatible accounting…
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Many taxpayers make the same mistakes when moving to Making Tax Digital. Waiting until the last minute, failing to keep digital records throughout the year, or using software that is not compatible with HMRC can all lead to unnecessary stress and compliance issues. Another common misunderstanding is believing that quarterly updates replace the annual tax…
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Making Tax Digital (MTD) for Income Tax requires more than simply submitting a report every quarter. If you are affected by the new rules, you must keep digital records of your business income and expenses and use HMRC-compatible software to submit your quarterly updates. It is important to remember that quarterly updates do not replace…
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One of the most common mistakes when closing self-employment with HMRC is failing to officially notify them. If you don’t report that you’ve stopped trading, your self-employed status remains active, and HMRC will continue expecting annual Self Assessment tax returns even if you have no income. Another frequent issue is an incorrect final tax return.…
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If you stop working as self-employed in the UK, you must officially inform HMRC. Simply ceasing activity is not enough — until you notify HMRC, you are still considered self-employed and may be required to file tax returns. To close your self-employment status, you need to deregister through your HMRC Self Assessment account or contact…
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Many business owners assume they can simply strike off a company even if it has outstanding debts. However, creditors can object to the strike-off, and in many cases this route is not allowed at all. If a LTD company cannot pay its debts, a formal insolvency procedure may be required instead of strike off. Directors…
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If a UK Ltd company is no longer trading, it must still be formally closed. Simply stopping business activity does not remove legal obligations to HMRC and Companies House. If the company has not traded for at least 3 months, has no debts, and meets other conditions, it may be eligible for voluntary strike off…
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Many self-employed individuals incorrectly assume that any partially business-related expense can be claimed in full. In reality, HMRC only allows the business proportion of mixed-use costs. This commonly applies to mobile phones, internet bills, vehicles, and working-from-home expenses. Another overlooked mistake is failing to set aside tax throughout the year. Since tax is not deducted…
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One of the most common mistakes is mixing personal and company finances. Company funds belong to the company, not the director, and using a business account for personal expenses can lead to additional tax liabilities and accounting issues. Another frequent mistake is missing filing deadlines with Companies House and HMRC or failing to maintain up-to-date…
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