Frequently Asked Questions

Get answers to the most frequently asked questions about our online accounting services

Google reviews

Who are Bright Ideas?

We’re a firm of qualified and specialist accountants providing high-end services for contractorsfreelancerssole traderslimited companies and small to medium enterprise businesses.

Is Bright Ideas right for me?

We offer accounting support for anyone working or running a business in almost any sector. If you’re a contractorfreelancersole traderlimited 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.

How much are the fees?

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.

Are there any hidden fees?

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.

Will I be tied into a contract?

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!

I’m a sole trader. Do I need an accountant?

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 £50+VAT a month.

I’m a contractor. Should I choose limited company or umbrella contracting?

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.

How long does it take to set up a limited company?

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

What’s the next step after setting up my limited company?

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.

Do I need to register for VAT?

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.

Do I need business insurance as a contractor?

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.

What expenses can I claim for?

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.

What do you need from me?

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.

How do I know if I am entitled to a tax refund?

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.

Do I need an accountant if I’m self-employed?

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.

Do you need a business account as a sole trader?

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.

How can I submit my tax return online?

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.

How do I change accountants?

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

How do I get my VAT number?

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

How do I start as self-employed?

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.

How do I file taxes if I’m self-employed?

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

How does tax work for self-employed?

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.

How does VAT work?

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.

How do I apply for a VAT number?

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.

How do I complete a self-assessment tax return?

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.

What records do I need to keep as a sole trader?

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.

What business structure should I choose?

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.

What can an accountant do for me?

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.

What can I claim back on tax?

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

What is FreeAgent?

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.

What services do accountants provide to small businesses?

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.

When do sole trader accounts have to be filed?

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

Why do you need an accountant?

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.

How much should freelancers charge per hour?

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.

How do I claim overpaid tax on my pension?

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.

What services can an accountant offer for effective retirement planning?

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.

Ready to join us?

Whether you’re a contractor, freelancer, or small business, Bright Ideas can help remove the burden of time-consuming and complex finances. We’ll draw on our years of knowledge and experience earned helping sole traders just like you.

When you choose us, you’ll be assigned a dedicated Account Manager who’ll provide one-on-one support that’s customised to your business. Communication is key, so we’ll always answer your questions or requests as soon as we can. In fact, we offer a same-day response guarantee for emails and calls received before 3pm.

Contact us to get started

Give us a call us or send an email today!

Looking to switch accountants?
We make the transition simple.

Does your current accountant give 1-to-1 support? Are they fast and thorough?
Slap-dash services hold businesses back, so try our experts instead.

Move to an accountancy service that goes the extra mile…

Start the conversation

Let’s make your finances Brighter

Call us Monday to Friday 9am - 5pm

0161 669 4221

Request a call back