Tax Guides & Business Advice From ACCA-Qualified Accountants
Practical tax advice, HMRC updates, and business guides written by our team of ACCA and AAT qualified accountants. Updated regularly to reflect the latest UK tax rules.
Guides, Tips & HMRC Updates
Written by our ACCA-qualified team to help UK business owners make smarter tax decisions.
IR35 Changes 2026: What UK Contractors Need to Know
From April 2026, HMRC has intensified IR35 enforcement with new compliance checks targeting medium-sized businesses and their contractors. The revised framework requires end-clients to issue Status Determination Statements (SDS) within 45 days of engagement, and disputes must follow a structured resolution process before escalation. Contractors working through personal service companies should review every contract against the three key tests: control, substitution, and mutuality of obligation. HMRC's enhanced CEST tool now factors in behavioural indicators beyond the written agreement, meaning your working practices must genuinely reflect outside-IR35 arrangements. We recommend obtaining an independent IR35 assessment for each engagement and documenting all evidence of self-employment indicators including provision of equipment, financial risk, and the right to send a substitute. Penalties for non-compliance have increased to include backdated PAYE, employer NI contributions, and interest charges from the start of the engagement.
How to Claim Home Office Expenses Through Your Limited Company
HMRC allows two methods for claiming home office costs through your limited company. The simplified flat rate method lets you claim a tax-free allowance of £6 per week (£312 per year) without receipts, as set out in HMRC's EIM01472 guidance. Alternatively, the actual cost method apportions household expenses by the proportion of your home used for business. Allowable costs include a share of broadband, heating, electricity, council tax, mortgage interest (not capital repayments), home insurance, and water rates. Non-allowable costs include food, clothing, commuting to a client site, and any room used exclusively as a home office where it could trigger capital gains tax on sale. To calculate, divide the number of rooms used for business by the total rooms, then multiply by total household costs. We recommend keeping utility bills and a simple log of business-use hours. Your company pays the expense claim to you personally as a tax-free reimbursement, reducing corporation tax liability.
Crypto Tax UK: HMRC's Share Pooling Rules Explained
HMRC applies the same share pooling rules to cryptocurrency as it does to shares. When you dispose of crypto (sell, swap, or spend), HMRC calculates your gain using three matching rules in strict order: same-day disposals first, then the bed-and-breakfast rule (acquisitions within 30 days of disposal), and finally the Section 104 pool which averages the cost of all remaining tokens. For the 2025/26 tax year, the Capital Gains Tax annual exempt amount is £3,000 per individual. Gains above this threshold are taxed at 10% for basic-rate taxpayers and 20% for higher-rate taxpayers. You must report all disposals on your self assessment even if total gains fall below the allowance. Essential records include the date and type of each transaction, the quantity of tokens, the GBP value at the time, cumulative pool costs, and wallet addresses. We recommend using tools like Koinly or CoinTracker to import exchange data, then reviewing calculations with a specialist crypto accountant before filing.
Sole Trader vs Limited Company: Which Saves You More Tax?
The choice between sole trader and limited company depends on your profit level, risk tolerance, and administrative appetite. Sole traders pay Income Tax on all profits (20% basic, 40% higher) plus Class 2 and Class 4 National Insurance, but enjoy minimal paperwork: a single self assessment return and no Companies House filings. Limited companies pay Corporation Tax at 25% on profits above £50,000 (19% marginal relief below that), and directors extract income through a combination of salary (typically set at the NI threshold of £12,570) and dividends taxed at 8.75% basic rate. This dividend extraction strategy can save a director earning £60,000 profit roughly £3,500 per year compared to sole trading. However, limited companies require annual accounts filed with Companies House, a corporation tax return, a confirmation statement, and ongoing bookkeeping. There is also the benefit of limited liability, meaning your personal assets are protected from business debts. See our pricing for packages covering both structures.
Common Questions About Our Guides
Have a question about the articles on this page? Check below or book a free call for personalised advice.
Ask Us DirectlyOr call us directly:
020 3389 7010Book Your Free 30-Minute Tax Review
Our guides cover the basics — but your situation is unique. Book a free call for tailored advice from an ACCA-qualified accountant.