Frequently Asked Questions

We’re a firm of qualified and specialist accountants providing high-end services for contractors, freelancers, sole traders, limited companies and small to medium enterprise businesses.

We offer accounting support for anyone working or running a business in almost any sector. If you’re a contractor, freelancer, sole trader, limited company or small to medium enterprise business there’s a good chance we’re the perfect fit for you. Get in touch and chat with our advisors to find out more.

Fees vary depending on the chosen package and your preferences. We don’t believe you should have to pay for something you don’t need, which is why we offer bespoke solutions for every client. We have packages available for sole traders, limited companies and contractors. Please see our pricing page for further information.

No. The price we quote is the price you pay. The only time you will pay more is if you’d like to list our address as your registered office or add any other optional package extras.

We operate on a monthly rolling contract, meaning you are able to cancel the service with just 1 months notice. We’re confident that, once you join, you won’t want to leave!

Even when you’re first starting out as a sole trader and your earnings are on the low side, having an accountant by your side can prove invaluable. This way, you’ll never lose track of your finances. With Bright Ideas, sole trader support is completely affordable – with packages starting from just £40+VAT a month.

When deciding on how to operate in your first contract, there a number of factors that will influence your decision – such as IR35 status. Speak to one of our experts to determine the best option for you.

We can usually set you up as a limited company in three hours, although it can take up to 24 hours in certain circumstances.

Once the limited company has been incorporated, you should set up a business bank account. This can take anywhere up to six weeks. We suggest booking an appointment with your local branch to speed the process up.

Regardless of whether you’re an IT, oil & gas, or renewable energy contractor, freelancer or small business owner, if your turnover is below the VAT threshold (£85,000 as of 2023/24) then there’s no legal requirement to register for VAT. However, voluntary registration may be more tax-efficient as you can benefit from the flat rate scheme. Get in touch for more information.

You should obtain professional indemnity and public liability insurance. These will most likely be a requirement stated in your contract. If you also have employees, you’ll need employers’ liability insurance.

You can claim for any expenses that are wholly, exclusively and necessary for the running of your business. Our accountants will be able to tell you more and outline exactly what you can claim for.

Simply keep your books up to date with the right numbers. This enables us to calculate the relevant taxes. You’ll also need to be ready to make any necessary payments.

A refund is generally due where tax has either been overpaid due to incorrect tax codes, CIS suffered in the year or expenses you have incurred that haven’t been claimed for. In either case we can quickly access whether a refund is due or not.

Is it legally required? No. Do we recommend doing so? Yes! An accountant can help provide qualified advice on any eligible expenses you may have, the most efficient way of structuring your setup for tax purposes, and finally to ensure compliance.

You do not have to have a separate business bank account as a sole trader; however, it is recommended in order to separate business transactions from personal ones. This in turn makes it easier for you or your accountant to reconcile your books.

You can submit this via the HMRC portal or alternatively if you have bookkeeping software, such as FreeAgent, then this has the ability to submit directly to HMRC.

Changing accountants is simple, just look at our process here – https://biaccountancy.com/our-services/switching-accountants/

Your VAT number is issued directly from HMRC upon registering for VAT. We can assist with both the VAT registration, preparation and submission.

Upon starting as self-employed you will need to register with HMRC, this will inform them of your requirement to submit a tax return and potentially any National Insurance payable.

Filing taxes can either be done directly on the HMRC Gov portal, or alternatively via a software and/or accountant.

Taxes are paid in line with your self-assessment tax return, which are worked out based on the profits you make, taking into account all sales and all expenses incurred within the year.

Once you have registered for VAT you must then charge 20% VAT (as per current rates 2024) on any VATable sales made. Depending on which scheme you decide to join you may be able to recoup the VAT you have incurred on any purchases/expenses.

Once you have registered for VAT with HMRC you will be sent your VAT certificate by post. This will contain both your VAT number and your VAT effective date, which is the point you must start charging VAT on your sales.

The self-assessment tax return is made up of various components depending on the income sources you have. You can complete a self-assessment via the HMRC portal or alternatively seek the help of an accountant.

You will be required to keep all records of business income and expenses, this includes bank statements, receipts and invoices. Records also need to be kept for at least 5 years from the submission deadline of the relevant tax year.

This depends on a number of factors: profit levels, security and image to name a few. It is highly recommended discussing this with an accountant, who can guide you on the right choice for you.

An accountant can assist in several ways, mainly compliance but also in terms of ensuring you are utilising all tax breaks, and efficient structures available. As a company we provide a dedicated accountant who will provide bespoke tax planning to ensure you are operating as efficiently as possible.

Any expenditure incurred wholly and exclusively for business purposes is able to be claimed and thus will lower your tax position.

FreeAgent is a bookkeeping software, which helps minimise the administration burden along with giving you a clear picture of the company finances. Together with FreeAgent an accountant can help ensure that you are being a tax efficient as possible and claiming for all relevant expenses and/or tax breaks allowable.

Depending on your setup, accountants can assist with a range of different services, from bookkeeping, VAT returns, tax planning, accounts preparation and submission, self-assessment tax return preparation and submission, payroll etc… We always advise on reaching out to discuss the services you may require.

A sole trader will need to declare their income on the self-assessment tax return, this runs in line with the tax year 6^th April to 5^th April and is due for submission no later than 31^st January.

Accountants are in place to ensure you are compliant with the tax laws but also to help you save tax where possible, this can be through means of restructuring your setup, missed opportunities and tax planning measures.

There are various factors to consider when it comes to your charge out rate, this is best discussed with one of our accountants who can walk you through the rates and what that means in terms of take-home pay for yourself.

If you believe you have overpaid tax on a pension then you may be able to liaise directly with HMRC in order for them to provide a tax calculation in which the overpaid tax would then be processed. Alternatively, you may have to complete a self-assessment tax return.

As accountants we are able to offer advice on tax implications of pensions and work out numbers in terms of what you’d be looking to take during retirement etc… however, this planning is best done between both the accountant and an independent financial advisor.