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It depends on your profit level and risk appetite. As a sole trader you pay Income Tax and Class 4 NIC on profits — up to 45% at higher rates. A limited company pays Corporation Tax at 19–25%, and you can take a mix of salary and dividends to reduce your overall tax bill. We typically suggest considering incorporation once annual profit exceeds around £30,000 — though this is a general illustration only. The right threshold depends on your full personal tax position. We'll assess your specific situation during your consultation.

You must register for VAT once your taxable turnover exceeds £90,000 in any rolling 12-month period. Voluntary registration can make sense if your clients are VAT-registered businesses or if you have significant VATable costs to reclaim. For B2C businesses, voluntary registration is often less beneficial — but this depends on your input VAT costs and growth plans. We'll advise based on your situation.

HMRC allows you to deduct any expense that is "wholly and exclusively" for business purposes. Common claims include office costs, travel, professional subscriptions, staff salaries, marketing, equipment, use of home as office, and relevant training. Many businesses underclaim — we review your expenses as part of every engagement.

MTD for Income Tax Self Assessment applies to sole traders and landlords with gross income over £50,000 from April 2026, and those over £30,000 from April 2027. It requires quarterly digital submissions to HMRC. We manage all MTD compliance on your behalf, including software setup — so you don't need to navigate it alone. Thresholds and implementation dates are subject to HMRC confirmation; please speak to us to confirm how MTD applies to your specific situation.

Switching to Ledgertech Accountants Ltd is simple and seamless. Once you engage our services, we request your Companies House Authentication Code (or arrange a new one if you don't have it) and obtain HMRC Agent Authorisation to represent you for Corporation Tax, VAT, PAYE and any other services you need.

The transition typically takes around two weeks, depending on the arrival of the Companies House authentication letter and HMRC approval.

HMRC requires limited companies to keep accounting records for 6 years. Sole traders must keep Self Assessment records for 5 years after the 31 January filing deadline. VAT records must be kept for 6 years. We recommend retaining all business records for at least seven years as a matter of good practice, though statutory minimums vary by entity type.

Cash basis records income when money is received and expenses when paid. The accruals basis records transactions when earned or incurred. Cash basis is available to most sole traders and some partnerships, but cannot be used by limited companies. There is no longer an upper turnover limit for sole traders using cash basis from 2024/25 onwards. Eligibility can depend on your business type — we'll advise which method applies to you.

Yes. If you pay yourself or any employee a salary you must register as an employer with HMRC and run a PAYE payroll, submitting Real Time Information (RTI) reports on or before each pay date. We handle payroll registration and RTI submissions as part of our payroll service.

We can typically begin within 24 to 48 hours of your initial enquiry. Following a short onboarding call, we will complete identity verification checks, set up your Client Hub, and introduce you to your dedicated accountant — usually all within the same week.

We primarily work with Xero, Capium and QuickBooks for cloud‑based bookkeeping — all fully MTD‑compatible. Whatever accounting software you use, it never affects our ability to access your records. Our team of Qualified Accountants (ICAI) works efficiently across all major platforms, including any software you prefer.

All document sharing, approvals and communication are handled securely through your Client Hub, ensuring everything stays organised, traceable and straightforward for you.