FAQ-Frequently Asked Questions

Welcome to FAQ (Frequently Asked Questions), where we have compiled the answers to the most frequently asked questions about our services. Our goal is to provide you with clear and concise information to help you make informed decisions. At RezEx Accountants, we understand that you may have questions about our offerings, policies, or procedures. 

About Rezex Accountants

 No, Rezex Accountants operates entirely online. All documents are shared securely by email, signed digitally, and submitted to HMRC and Companies House on your behalf. We have offices in London and Manchester but no in-person meetings are required. We serve clients across the whole of the UK.

Yes, Rezex Accountants is GDPR compliant, HMRC registered, VAT registered, and an Authorised Corporate Service Provider (ACSP) registered with Companies House. All your financial information is handled securely in line with UK data protection law. Our accountants are ACCA and AAT qualified, the same qualifications held by traditional high street accountants.
No, although we have offices in London and Manchester, we serve clients across the whole of the UK entirely online. We have clients from Scotland, Wales, Northern Ireland and all across England. Location is no barrier.
Simply contact us by phone on 020 35765107 or email info@rezexaccountants.com. We will discuss your requirements, recommend the right service, and send you a digital letter of engagement to sign. The whole onboarding process is done online-no paperwork, no meetings.

Rezex Accountants is ACCA and AAT qualified, ACSP registered with Companies House, HMRC registered, VAT registered and GDPR compliant. We have been serving sole traders, limited companies, LLPs and CICs across the UK since 2022. Our Trustpilot and Google reviews reflect real clients and real results, read them and decide for yourself.

Yes, our accountants hold qualifications from ACCA and AAT, two of the most respected professional accounting bodies in the UK, recognised by HMRC and Companies House.
We communicate entirely by phone, email and video call-Monday to Friday 9am to 5pm. Every client is assigned a dedicated account manager who handles their account from start to finish.
Yes, we offer free initial advice with no obligation. Contact us to discuss your accounting needs before committing to any service.
An Authorised Corporate Service Provider (ACSP) is a firm registered with Companies House that is authorised to provide company formation and related services. Rezex Accountants is a registered ACSP, meaning we are authorised to act as a trusted agent for company filings and submissions to Companies House.
Turnaround time depends on the complexity of your accounts and how quickly you provide your financial information. Most standard accounts are completed within 5 to 10 working days of receiving all required documents.
Yes, Rezex currently offers 40% off for the first 3 months for new startup businesses. Contact us to find out if your business qualifies.

General Tax & HMRC

A UTR (Unique Taxpayer Reference) is a 10-digit code issued by HMRC to individuals and businesses. It is used to identify you when filing tax returns and making tax payments. You receive a UTR automatically when you register for Self Assessment or set up a limited company. If you lose your UTR, you can find it on previous HMRC correspondence or by logging into your HMRC online account.

The UK tax year runs from 6 April to 5 April the following year not January to January. For example, the 2025/26 tax year runs from 6 April 2025 to 5 April 2026. All income earned within this period must be reported on your Self Assessment return, with the online filing deadline of 31 January 2027.

The Personal Allowance — the amount you can earn before paying Income Tax — is £12,570 for 2026/27. If your income exceeds £100,000, your Personal Allowance reduces by £1 for every £2 earned above that threshold and is fully withdrawn at £125,140.
HMRC increased the approved mileage rate for cars and vans from 45p to 55p per mile for the first 10,000 business miles, backdated to 6 April 2026. Above 10,000 miles the rate drops to 25p per mile. Motorcycles are 24p per mile and bicycles 20p per mile.
The UK Income Tax rates for 2026/27 are: Personal Allowance up to £12,570 at 0%, Basic rate £12,571 to £50,270 at 20%, Higher rate £50,271 to £125,140 at 40%, and Additional rate over £125,140 at 45%.
For employees, Class 1 National Insurance is paid on earnings above £12,570 per year at 8%. For self-employed individuals, Class 4 National Insurance applies on profits above £12,570 at 6%, with an additional 2% on profits over £50,270.
Making Tax Digital is HMRC’s initiative requiring businesses to keep digital records and submit tax returns using approved software. MTD for VAT is already mandatory for all VAT-registered businesses. MTD for Income Tax Self Assessment applies from April 2026 for sole traders and landlords with income over £50,000, and from April 2027 for those earning over £30,000.
Self-employed individuals must keep records for at least 5 years after the 31 January filing deadline for the relevant tax year. Limited companies must keep accounting records for at least 6 years from the end of the financial year they relate to.

A tax code is an alphanumeric code used by employers and pension providers to calculate how much Income Tax to deduct from your pay. The most common code is 1257L, which reflects the standard Personal Allowance of £12,570. Letters in the code indicate your personal circumstances for example, M means you have received the Marriage Allowance transfer.

The MTD for Income Tax quarterly submission deadlines for 2026/27 are 7 August, 7 November, 7 February, and 7 May. HMRC has confirmed a soft landing for 2026/27 penalty points will not apply for late quarterly updates in the first year.

Self Assessment

You must file a Self Assessment if you are self-employed with income over £1,000, a company director, a landlord receiving rental income, have income over £100,000, receive dividends, have foreign income, or claim certain tax reliefs. If you are unsure, contact Rezex Accountants for free initial advice.
The key Self Assessment deadlines are: register for Self Assessment by 5 October after the tax year ends, paper return by 31 October, online return filing and payment by 31 January, and second payment on account by 31 July.
HMRC issues an automatic £100 penalty for late filing — even if you owe no tax. After 3 months, daily £10 penalties begin, adding up to £900. After 6 months, a further 5% surcharge applies to any unpaid tax. Interest is also charged at 7.75% per year on late payments.
Allowable expenses include office costs, business travel and mileage at 55p per mile from April 2026, stock and materials, marketing and advertising, professional fees including accountancy, staff costs, business insurance, and a proportion of home costs if you work from home.

Payments on account are advance payments towards your next tax bill, required when your last Self Assessment bill exceeded £1,000. Two payments are due 31 January and 31 July each equal to 50% of your previous year’s tax bill. If you expect lower income, you can apply to reduce them.

Every UK limited company must file annual accounts with Companies House and a CT600 Corporation Tax return with HMRC each year — even if the company made no profit or was dormant. Rezex handles both from £399 + VAT for micro-entities.

The trading allowance is a £1,000 tax-free allowance for self-employed individuals. If your gross self-employment income is under £1,000 in a tax year, you do not need to declare it. If above £1,000, you can deduct the £1,000 allowance or your actual expenses whichever is higher.

Yes, if you have self-employment income over £1,000 in addition to PAYE employment, you must register for Self Assessment and declare both income sources on your return.
If filing for the first time for the 2025/26 tax year, you must register with HMRC by 5 October 2026. You will receive a UTR number by post within 10 working days of registering.
Yes — Rezex Accountants files Self Assessment returns for sole traders, freelancers, landlords, company directors and individuals with complex income. Our fee starts from £199 + VAT for a standard return, fully online with no meetings required.

Limited Company

Every UK limited company must file annual accounts with Companies House and a CT600 Corporation Tax return with HMRC each year — even if the company made no profit or was dormant. Rezex handles both from £399 + VAT for micro-entities.
Annual accounts to Companies House are due 9 months after the accounting period ends. The CT600 Corporation Tax return to HMRC is due 12 months after the accounting period ends. Corporation Tax payment is due 9 months and 1 day after the accounting period ends.
The main purpose of a UTR number is to help HMRC identify tax payers. You will need your UTR number when completing and filing of corporation tax return and when someone is helping you with tax related matter.

Corporation Tax is the tax a limited company pays on its profits. The small profits rate for profits up to £50,000 is 19%. The main rate for profits over £250,000 is 25%. Marginal relief applies for profits between £50,000 and £250,000.
A Confirmation Statement confirms that the information Companies House holds about your company is accurate. It must be filed at least once every 12 months. Failure to file can result in your company being struck off the register.
iXBRL (Inline eXtensible Business Reporting Language) is the mandatory digital format required by HMRC for all CT600 submissions with accompanying accounts. Rezex prepares all accounts in compliant iXBRL format as standard no additional cost.
Yes, there is no limit to the number of limited companies you can incorporate in the UK. Each company is a separate legal entity with its own accounting and filing obligations. Rezex can handle accounts for multiple companies contact us for a package quote.
HMRC issues automatic penalties for late CT600 filing £100 immediately after the deadline, rising to £200 after 3 months. If the return is more than 6 months late, HMRC may issue a tax-geared penalty of 10% of the unpaid tax. A further 10% applies after 12 months. Interest is also charged on any unpaid Corporation Tax from the payment due date.

Yes, but not until April 2028. From April 2028, small companies and micro-entities will be required to file a profit and loss account with Companies House. However businesses will be able to opt out of having their profit and loss account published on the public register. Even where businesses opt out, the data will remain accessible to Companies House, HMRC and law enforcement. No action is required now — Companies House will contact all registered companies with guidance ahead of April 2028.

Yes, from April 2028 all UK registered companies will be required to file accounts in iXBRL format using commercial software. Companies House will close its web and paper-based filing routes for accounts from that date. Rezex Accountants already prepares all accounts in iXBRL format as standard — our clients are already compliant and no changes are needed now.
The corporation tax bill needs to be paid by you within 9 months and 1 day from the end of an accounting period to which it relates.

Yes, dormant companies must still file dormant accounts with Companies House and a Confirmation Statement each year. You may also need to file a CT600 with HMRC. Rezex handles dormant company filing as a standalone service.
The most tax-efficient approach is a combination of a small salary up to the National Insurance threshold of £12,570 and dividends from company profits. This reduces both Income Tax and National Insurance contributions significantly compared to taking a salary alone.
The dividend allowance is £500 tax free. Basic rate taxpayers pay 8.75% on dividends, higher rate taxpayers pay 33.75%, and additional rate taxpayers pay 39.35%.
Micro-entity accounts are a simplified form of year-end accounts for small UK companies meeting at least two of these criteria: turnover below £632,000, balance sheet below £316,000, and fewer than 10 employees. Most small limited companies qualify. Rezex prepares micro-entity accounts as standard.
Yes, you can amend a CT600 Corporation Tax return within 12 months of the original filing deadline. This means you have up to 24 months from the end of your accounting period to make corrections. After this window closes, you cannot amend the return and any errors must be reported to HMRC separately. If Rezex filed your return and an amendment is needed, contact your dedicated account manager immediately.
Marginal Relief applies to companies with profits between £50,000 and £250,000. It gradually increases the effective Corporation Tax rate from 19% to 25% preventing a sudden jump in tax when profits cross the £50,000 threshold. For the 2026/27 tax year, the marginal relief fraction is 3/200. Rezex calculates and applies marginal relief correctly on every CT600 we file
No, Corporation Tax is only payable on taxable profits. If your company made a loss, no Corporation Tax is due. However you must still file a CT600 reporting the loss. Losses can be carried forward to offset against future profits or in some cases carried back to reclaim tax paid in a previous year.
On 1 April 2026, HMRC officially closed its free online filing service for Corporation Tax returns. From that date, every company in the UK must use commercial software to file CT600 returns and accounts. If you were previously filing your own CT600 through the HMRC portal, you now need either commercial software or an accountant like Rezex to file on your behalf
Currently yes, but from April 2028 the option to file abridged or filleted accounts will be removed. All companies will need to file full accounts including profit and loss from that date. Small companies and micro-entities will however be able to opt out of publishing their profit and loss on the public register.

IR35

A worker is involved in off-payroll working when they work for a client through their intermediary, often a personal service company (PSC), but would be an employee if they were providing their services directly instead of involving the arrangement of providing service through a PSC. An intermediary will usually be the worker’s personal service company. It could also be a partnership, a managed service company, or an individual.

Inside IR 35: The entity inside IR 35 you are required to pay tax & National Insurance Contributions on the entirety of your deemed salary, just like a permanent employee would have.

Outside IR 35: The entities outside IR 35 are deemed to be legitimate companies and they continue to operate and pay tax accordingly (as any other limited company would have).

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IR35 or off payroll working rules refer to an anti-avoidance tax legislation designed to collect tax and National Insurance at a rate similar to employment, where the contractor is an employee in all but name.

Check Employment Status for Tax service (CEST) is a tool that has been developed by HMRC to help the user in determining the employment status of a person, i.e., whether the said person is employed or self-employed for tax purpose. It is pertinent to note here that the tool assumes there is a contract in place between employer and employee to see whether the engagement can be classed as employment or self-employment. HMRC claims it to provide accurate results and that it shall stand by the result produced by the tool provided the information input is accurate and the tool is used in accordance with the guidance.

A Managed Service Company (MSC) has a separate set of owners and organisers managing a group of contractors. Management Service Company differs from Personal Service Company. MSC manages and controls the affairs of the business, not the contractor. Further, MSC are subject to different regulations by HMRC.

A Personal Service Company is a limited company set up to provide services of a single contractor. In other words it is generally an “intermediary” taking the form of a limited company. This company is generally owned 100% by the contractor, and he/she is usually the sole director too.

Forming a PSC has many benefits. Firstly, the liability of the sole contractor becomes limited. Secondly, it provides a more formal and professional way to present services to their clients. Also, company form of business structure enables managing taxes efficiently.

VAT

Value added tax, or VAT, is the tax you have to pay when you buy goods or services.

Businesses with a turnover of more than £85,000 must register to pay and charge VAT on the products and services they buy and sell. Other businesses can choose to register for VAT voluntarily.

You usually submit a VAT return to HMRC every 3 months. This period of time is known as your ‘accounting period. However, your VAT accounting period will comprise of 12 months in case you have opted for VAT Annual Accounting Scheme.

The due date for submitting the vat return online is 1 month and 7 days after the end of a VAT accounting period.

The due date for submitting the return online and paying HMRC are usually the same – 1 month and 7 days after the end of a VAT accounting period.

If you opt for annual accounting scheme you need to file VAT return only once a year. Your VAT accounting period will comprise of 12 months. The VAT return shall be due in 2 months from the end of VAT accounting period.

You can usually reclaim the VAT paid on goods and services purchased for use in your business.

You may be able to reclaim VAT paid on goods or services bought before you registered for VAT if the purchases were made within certain time limits.

If a business is registered for VAT then it must charge VAT on all its taxable sales. There’s no option to decide not to charge VAT to certain customers.

When goods or services are zero rated they are still called VAT able supplies. The VAT rate on such goods and services is zero. Hence, a supplier supplying goods at zero rated can reclaim credit on purchases.

When goods or services are zero-rated, they are still called VAT able supplies. The VAT rate on such goods and services is zero. So, if the taxable turnover goes above £85,000 the supplier needs to register under VAT.

You must register for VAT once your taxable turnover exceeds £90,000 in any rolling 12-month period. You must register within 30 days of exceeding the threshold. You can also register voluntarily below this threshold to reclaim VAT on business purchases.
Standard rate VAT is 20% and applies to most goods and services. Reduced rate is 5% and applies to items like home energy and children’s car seats. Zero rate is 0% and applies to most food, children’s clothing and books. Some items are VAT exempt entirely, such as financial services and insurance.
The Flat Rate Scheme allows eligible small businesses with taxable turnover under £150,000 to pay a fixed percentage of their gross turnover to HMRC instead of calculating actual VAT on each transaction. The percentage varies by business type. It simplifies VAT accounting but may not always be beneficial — Rezex can advise whether it suits your business.
The partly exempt business can claim tax credit on capital goods through capital goods scheme. Under this scheme VAT recovery is adjusted based on the taxable use. As the taxable use increases, a further amount of input tax can be claimed and, as it decreases, equivalent input tax already claimed needs to be repaid. Click here to know more about capital goods scheme.

No. VAT is generally recorded, collected, and paid by the seller. But if a transaction is covered under reverse then the VAT will be recorded by the buyer instead of the seller. In such situations, VAT is paid by the buyer directly to HMRC instead of the seller.

However, the VAT reverse charge applies to intra-community EU transactions, and with effect from 1st October 2020, this will also apply to industry services.

MTD refers to Making Tax Digital. With effect from1st April 2019, all the VAT registered businesses with an annual turnover of more than £85,000 were mandated to maintain their VAT records digitally and file the VAT returns through MTD-compatible software. Businesses with a taxable turnover less than the VAT threshold can voluntarily opt for it.

A group of companies connected to each other may choose to file a single VAT return. Such group of companies are treated as single entity and so are called a VAT group.

Making VAT group facilitates two or more eligible persons to account for VAT under a single registration number and allows any one of the eligible persons within the group acting as the representative member.

VAT return is basically a form that depicts the amount of VAT owed to HMRC or the amount they owe to you. It shows total sales and purchases, amount of VAT owed, amount of VAT reclaim, VAT refund from HMRC for a particular VAT accounting period.

Providing the errors meet certain conditions, you do not need to tell HMRC about them – you can simply correct them by adjusting your next VAT return.

You can adjust your current VAT return to correct errors on past returns as long as the errors:

  • are below the reporting threshold;
  • are not deliberate; and
  • Relate to an accounting period that ended less than four years ago. Or you can send form VAT652 to the VAT Error Correction Team.
A VAT-registered number is a unique identification issued to businesses that are registered to pay VAT. Businesses can find their VAT number on their VAT registration certificate issued by HMRC.

A UK VAT number is nine (9) digits long, with two letters at the front indicating the country code of the registered business. For example, for Great Britain (UK), the first two digits of the VAT code are GB.

If you’re dealing with a supplier in another EU country then its VAT number will follow a different format, with its own unique country code. HMRC provides a list of ID formats from European Union member states

From April 2019, VAT registered businesses and organisations with taxable turnover above the VAT threshold of £85,000 are required (which is 90,000 in 2026) to:

  • Maintain accounting records digitally in a software product or spread sheet. As a result, maintaining paper records has ceased to meet the legal requirements in tax legislation.
  • Submit VAT returns to HMRC using a compatible software product that can access HMRC’s API (Application Program Interfaces) platform.
You can apply to deregister from VAT if your taxable turnover falls below £88,000. You must deregister if you stop making taxable supplies.
Most VAT-registered businesses file quarterly VAT returns, due one month and seven days after the end of each VAT quarter. Under Making Tax Digital, all VAT returns must be submitted using HMRC-approved software.
The VAT domestic reverse charge applies to certain construction services under CIS. Instead of the supplier charging VAT, the customer accounts for it. This was introduced to combat VAT fraud in the construction industry. It affects most standard and reduced rate construction services supplied between VAT-registered businesses.
The Annual Accounting Scheme allows eligible businesses to file one VAT return per year instead of quarterly, making advance payments throughout the year. It suits businesses with straightforward VAT affairs who want to reduce admin.
Yes, you can reclaim VAT on goods purchased up to 4 years before your VAT registration date, provided the goods are still in use by the business. You can reclaim VAT on services purchased up to 6 months before registration.

PAYE

You can find on any correspondence you receive from HMRC, like tax forms, payslips, P45 and P60 forms. It is also in the welcome pack you receive when you first register your business.

Your Accounts Office Reference Number is a unique, 13 character code which will be shown on the letter you received from HMRC when you first registered as an employer.

You will be required to put in your Accounts Home Office Reference Number when you intend to make PAYE payments to the HMRC.

Yes, benefits in kind can be payrolled if the employer has registered with HMRC for using the ‘payrolling employee’s taxable benefits and expenses service’. All the benefits can be payrolled except employer providing accommodation and interest free and low interest loans. These needs to be reported in P11D even if you’re payrolling other benefits for the same employees. Further, if company car benefits are payrolled then there is no need of P46.

If the employer intends to payroll benefits and expenses then he/she needs to register for payroll before the start of tax year in which he/she wishes to begin running it.

If benefits in kind are payrolled then there is no requirement of submitting P11D form. However, all the benefits except employer providing accommodation, interest free and low interest loans can be payrolled. Hence, these need to be reported in P11D even if you’re payrolling other benefits for the same employees.

Further, you need to complete and file form P11D(b) to report Class 1A National Insurance contributions on benefits in kind despite payrolling them.

P87 is a form that can be used by employees to claim tax relief for allowable employment expenses. If the allowable expenses are less than £2,500, the employee can claim tax relief through P87 form, but if the allowable expenses are more than £2,500 then these can be claimed only by filing a self-assessment return.

If benefits in kind are payrolled then prima facie there is no requirement of submitting P11D form.

However, all the benefits except employer providing accommodation, interest free and low interest loans can be payrolled. Hence, these need to be reported in P11D even if you’re payrolling other benefits for the same employees.

Further, you need to complete and file form P11D(b) to report Class 1A National Insurance contributions on benefits in kind despite payrolling them.

You must collect and keep records of:

  • What you pay your employees and the deductions you make.
  • Reports you make to HM Revenue and Customs (HMRC).
  • Payments you make to HMRC.
  • Employee leave and sickness absences.
  • Tax code notices.
  • Taxable expenses or benefits.
  • Payroll Giving Scheme documents, including the agency contract and employee authorisation forms

The records must be maintained for 3 years from the end of the tax year they relate to. HMRC may check your records to make sure that the employer is paying the right amount of tax. Click here to read more about PAYE and payroll.

EPS refers to Employer Payment Summary. It is basically used to claim refunds/recoverable amounts from HMRC or making declarations to HMRC. Few situations in which EPS needs to be filed are:

  1. For recovering statutory payments
  2. For reporting Apprenticeship levy
  3. For recovering Construction Industry Scheme (CIS) deductions suffered
  4. For informing HMRC that you have ceased using PAYE scheme, etc.
  5. For making an election to claim the employment allowance.

EPS refers to Employer Payment Summary. It is basically used to claim refunds/recoverable amounts from HMRC or making declarations to HMRC. Few situations in which EPS needs to be filed are:

  1. For recovering statutory payments
  2. For reporting Apprenticeship levy
  3. For recovering Construction Industry Scheme (CIS) deductions suffered
  4. For informing HMRC that you have ceased using PAYE scheme, etc.
  5. For making an election to claim the employment allowance.

FPS refers to Full Payment Submission. FPS is sent to HMRC to inform HMRC about the payments made to employees and the deductions made. It contains information like starter and leaver information, employee details, employee payment and deduction information etc.

FPS refers to Full Payment Submission. FPS is sent to HMRC to inform HMRC about the payments made to employees and the deductions made. It contains information like starter and leaver information, employee details, employee payment and deduction information etc.

Employer Summary Scheme (EPS) needs to be sent to HMRC by the 19th of the following tax month to apply any reduction (for example statutory pay) on what you’ll owe from your FPS.

Full Payment Submission (FPS) needs to be sent to HMRC on or before each payday even if taxes and National Insurance are paid to HMRC quarterly or monthly.

Payroll refers to the process of evaluating employee’s pay, deducting income tax and national insurance contributions and reporting the same to HMRC.

PAYE refers to the system of Pay As you Earn. It is a system used by HMRC to collect Income tax and NI contributions from employee’s pay as they earn it.

A P11D form is sent to HMRC by UK employers outlining the cash value of any work-related taxable expenses and taxable benefits you’ve received over the tax year (6 April-5 April). These are only benefits or expenses that have not already been included in your wages.

Yes, if you wish to deregsiter from payrolling of benefits you can do it before the start of tax year using the online service.

The PAYE reference number is given to every business that registers with HMRC as an employer. It’s a unique set of letters and numbers used by HMRC and others to identify your firm.

This reference is made up of two parts: a three-digit HMRC office number and a reference number unique to your business. It will usually look something like 123/A45678 or 123/AB45678 (though there can be exceptions).

Export-Import

A worker is involved in off-payroll working when they work for a client through their intermediary, often a personal service company (PSC), but would be an employee if they were providing their services directly instead of involving the arrangement of providing service through a PSC. An intermediary will usually be the worker’s personal service company. It could also be a partnership, a managed service company, or an individual.

Common Transit Convention (CTC) allows quicker movement of goods across the borders of common transit countries. The common transit countries are EU member states, Iceland, Norway, Liechtenstein, Switzerland, Turkey, North Macedonia, Serbia. The customs declaration and payment of customs duty needs to be paid only when the goods reach final destination. This facilitates cash flow benefits and reduces administrative burdens.

CIS-Construction Industry Scheme

The Construction Industry Scheme (CIS) is an HMRC scheme where contractors deduct money from subcontractor payments and pass it to HMRC as advance payments towards the subcontractor’s tax and National Insurance. The standard deduction rate is 20% for registered subcontractors and 30% for unregistered ones.
You should register for CIS as a subcontractor to benefit from the lower 20% deduction rate rather than the 30% unregistered rate. Gross payment status is available to subcontractors who meet HMRC’s compliance and turnover criteria allowing them to receive payments without any deduction.
CIS covers construction operations including site preparation, demolition, building, installation of heating and electrical systems, repairs, decorating, and cleaning of buildings after construction. It does not cover architecture, surveying, carpet fitting, or manufacturing of materials.
CIS deductions are offset against your Self Assessment tax bill at the end of the year. If your CIS deductions exceed your total tax and National Insurance liability, HMRC will refund the difference. Keep all CIS deduction statements from contractors as these are essential for your tax return.
Contractors must submit a monthly CIS return to HMRC by the 19th of each month, covering all payments made to subcontractors in the previous tax month. Late returns attract penalties starting at £100.
Yes, Rezex Accountants handles CIS registration, monthly contractor returns, subcontractor verification, and CIS deduction reclaims through Self Assessment. Contact us to discuss your CIS requirements.

Property Income & Landlords

Yes, if your gross rental income exceeds £1,000 in a tax year you must declare it via Self Assessment. This applies to residential properties, commercial properties, holiday lets and Airbnb rentals including overseas properties.
The property allowance is a £1,000 tax-free allowance for rental income. If your gross rental income is under £1,000 per year, you do not need to declare it. Above £1,000, you can claim the £1,000 allowance or your actual expenses whichever is higher.
The Furnished Holiday Let (FHL) regime was abolished from April 2025. Holiday lets are now taxed the same as standard residential buy-to-let properties. Mortgage interest relief is restricted to a basic rate tax credit and Capital Gains Tax reliefs previously available to FHLs no longer apply.
If you are a company paying Corporation Tax you can claim interest on property loans as an allowable expense. You cannot do this if you are an individual landlord who pays Income Tax. Individual residential landlords instead receive a basic rate 20% tax credit on mortgage interest costs. This is known as Section 24 mortgage interest relief restriction and has applied since April 2017.
You may be able to claim tax relief on money spent on replacing a domestic item. This is called replacement of domestic items relief. Domestic items include beds, sofas, curtains, carpets, fridges, crockery and cutlery. You must have only bought the domestic item for use by tenants in a residential property and the item you replaced must no longer be used in that property.
You can offset your loss against future profits in the same business. Rental losses from UK property can only be carried forward and set against future UK property profits they cannot be offset against other income such as employment or self-employment income.
This is a significant change confirmed by GOV.UK. From April 2027 separate Income Tax rates will apply specifically to property income. The rates for the 2027 to 2028 tax year will be the property basic rate at 22%, the property higher rate at 42% and the property additional rate at 47%. This applies to England, Wales and Northern Ireland. These rates are higher than the standard Income Tax rates and represent a significant increase for landlords.
If you do not usually send a tax return you need to register by 5 October following the tax year you had rental income. For the 2025/26 tax year the registration deadline is 5 October 2026. You can register for Self Assessment on GOV.UK. Rezex Accountants can handle your landlord Self Assessment return on your behalf.
You may be eligible to pay voluntary Class 2 National Insurance contributions if you are considered gainfully employed for National Insurance purposes — for example if being a landlord is your main job, you rent out more than one property, or you are buying new properties to rent out. Property income is generally treated as unearned income so most landlords do not pay compulsory National Insurance on rental profits.
Allowable expenses include letting agent fees, property maintenance and repairs, buildings and contents insurance, mortgage interest as a basic rate tax credit, council tax and utilities if paid by you, and accountancy fees.
Yes, if you sell a residential property at a gain, you must report it and pay any Capital Gains Tax within 60 days of completion using HMRC’s Capital Gains Tax on UK property service. You must also include it on your Self Assessment return.
You will have to keep accurate records of rent received and your expenses incurred to work out the profit you will pay tax on. The records you should keep include rent books, receipts, invoices, bank statements and mileage logs for journeys that are solely for your property business purposes. You must keep your records for at least 5 years after the 31 January tax return deadline for each tax year.
You can share ownership of rental property with other people and the amount of rental income on which you will pay tax will depend on your share of the property. Property jointly owned by married couples and civil partners who live together will usually be taxed in equal shares. If you own the property in unequal shares and are entitled to the income in the same unequal shares the income can be taxed on that basis.
If you rent out more than one property the profits and losses from those properties are added together to arrive at one figure of profit or loss for your property business. However profits and losses from overseas properties must be kept separate from properties in the UK. You add together all rental income, add together all allowable expenses, and take the expenses away from the income.
Furnished holiday lettings tax rules ended on 1 April 2025 for Corporation Tax and Corporation Tax on chargeable gains and on 6 April 2025 for Income Tax and Capital Gains Tax. Holiday lets are now taxed in the same way as standard residential buy-to-let properties. The favourable Capital Gains Tax reliefs and capital allowances previously available to furnished holiday lets no longer apply from 2025/26 onwards.
Cash basis accounting is a simpler way of working out taxable profits for businesses with straightforward tax affairs. Under cash basis you record income when you receive it and expenses when you pay them — rather than when they are earned or incurred. Cash basis can only be used if your total income from UK property is up to £150,000.
You can declare unpaid tax by telling HMRC about rental income from previous years. If you have to pay a penalty it will be lower than if HMRC find out about the income themselves. You will be given a disclosure reference number and then have 3 months to work out what you owe and pay it. This is known as the Let Property Campaign and is HMRC’s way of encouraging landlords to come forward and regularise their tax affairs.

Yes, Rezex Accountants handles Self Assessment tax returns for landlords across the UK, including those with single properties, multiple properties, commercial properties and overseas property income. We ensure all allowable expenses are claimed correctly and your return is filed on time. Contact us for a quote all services are provided fully online.

Capital Gains Tax

Capital Gains Tax is a tax on the profit you make when you sell or dispose of an asset that has increased in value. It applies to assets such as property (other than your main home), shares, business assets and cryptocurrency.
Business Asset Disposal Relief (formerly Entrepreneurs’ Relief) applies a reduced 18% CGT rate in 2026/27 on the first £1 million of qualifying lifetime gains from selling a business or shares in your own trading company. You must have owned the business for at least 2 years.
CGT rates for 2026/27 are 18% for basic rate taxpayers and 24% for higher and additional rate taxpayers on both residential property and other assets. The annual exempt amount is £3,000.
Usually no, your main home is protected by Private Residence Relief, which exempts it from CGT. However, CGT may apply if you have let out part of the property, used it exclusively for business, or own more than one property.
If you sell a UK residential property at a gain, you must report it and pay CGT within 60 days of completion using HMRC’s online Capital Gains Tax on UK property service. Other gains such as shares are reported through Self Assessment by 31 January.

Starting a business

Sole trader is simpler and cheaper to run — you file one Self Assessment return per year. Limited company becomes more tax-efficient once your profits reach approximately £30,000 to £35,000, as you can pay yourself through salary and dividends to reduce National Insurance. Rezex offers free initial advice to help you choose the right structure.
You incorporate a limited company at Companies House, which can be done online for £50. You will need a company name, registered address, at least one director, and shares issued to shareholders. As an Authorised Corporate Service Provider (ACSP), Rezex Accountants can assist with company formation.
Yes, you can run multiple self-employed businesses simultaneously as a sole trader. All income from all trades is combined and reported on a single Self Assessment return. Each business should have its own records. From April 2026, MTD for Income Tax applies if your combined gross income exceeds £50,000.
You must keep records of all business income and expenses, bank statements, invoices, receipts, mileage logs if claiming vehicle costs, and payroll records if you employ staff. HMRC can request records going back 5 years for sole traders and 6 years for limited companies.
Register as a sole trader by registering for Self Assessment on the HMRC website. You will receive a UTR number within 10 working days. You must register by 5 October after the end of the tax year in which you started self-employment.
IR35 (off-payroll working rules) applies to contractors who provide services through a limited company to a client. If HMRC determines your working arrangement resembles employment, the income is taxed as employment income regardless of your company structure. If you operate through a personal service company, Rezex can advise on your IR35 position.
The Employment Allowance allows eligible employers to reduce their annual National Insurance bill by up to £10,500. Most small businesses qualify. It cannot be claimed by companies where the sole employee is also a director.
The Annual Investment Allowance allows businesses to deduct the full cost of qualifying plant and machinery such as computers, equipment and machinery- from profits before tax, up to £1 million per year. It applies to both sole traders and limited companies.

Limited Liability Partnership(LLP)

An LLP is a separate legal entity that can be set up by two or more members to run a business. Each member pays tax on their share of the profits individually but is not personally liable for any debts the business cannot pay. An LLP combines the tax transparency of a partnership with the liability protection of a limited company.
Every LLP must have at least two designated members at all times. Designated members must register the business for Self Assessment with HMRC, register the partnership for VAT if taxable turnover exceeds £90,000, and ensure all annual filing obligations are met. Designated members can be prosecuted if they do not meet their legal obligations
An LLP itself does not pay Corporation Tax. Each member pays Income Tax and National Insurance on their individual share of the profits through Self Assessment. Every member must register for Self Assessment with HMRC and file their own personal tax return each year in addition to the LLP’s SA800 Partnership Tax Return.
Yes, an LLP can be dormant if it has no significant accounting transactions during an accounting period. However a dormant LLP must still file accounts with Companies House and a Confirmation Statement every year. An SA800 Partnership Tax Return may also be required. Rezex handles dormant LLP filing as a standalone service.
An LLP is tax transparent members pay Income Tax and National Insurance directly on their profit share with no Corporation Tax layer. A limited company pays Corporation Tax on profits first, then directors pay Income Tax and dividend tax on amounts withdrawn. An LLP cannot retain profits to defer tax in the way a limited company can. The right structure depends on your profit level and how you intend to extract income. Rezex offers free initial advice to help you choose.
An LLP must file annual accounts with Companies House within 9 months of the accounting period end date. It must also file a Confirmation Statement at least once every 12 months. An SA800 Partnership Tax Return must be submitted to HMRC the deadline is 31 October for paper filing and 31 January for online filing. Each individual member must also file their own Self Assessment tax return. Rezex Accountants handles all LLP filing from £399 + VAT.
The SA800 is the Partnership Tax Return that every LLP must file with HMRC each year. It reports the LLP’s total income, expenditure and how profits have been allocated between members. The deadline is 31 October by post and 31 January for online filing. Each member then files their own individual Self Assessment return reporting their personal profit share.
n LLP Members Agreement is a legally binding document between all members governing how the LLP is run. It covers profit sharing arrangements, decision making, what happens if a member leaves, and each member’s rights and responsibilities. Unlike a limited company’s articles of association, the LLP Members Agreement is confidential and does not need to be filed at Companies House.
LLP members receive a share of the LLP’s profits as agreed in the LLP Members Agreement. Each member is taxed individually through Self Assessment on their profit share. Members pay Income Tax and Class 4 National Insurance on their allocated profits there is no salary through PAYE unless the LLP also employs them separately.
: In a general partnership, partners are personally liable for all business debts. In an LLP, members have limited liability their personal assets are protected beyond their agreed contribution to the LLP. Both are tax transparent. An LLP must be registered at Companies House — a general partnership does not.

Community Interest Company-CIC

A CIC is a limited company which operates to provide a benefit to the community it serves. The purpose of a CIC is primarily one of community benefit rather than private profit. Examples include a direct welfare service to vulnerable people or an activity that generates profits used to support a specific community purpose. A CIC operates in the same way as any other limited company with a separate legal identity, the ability to enter into contracts and own assets in its own name.
A CIC must satisfy the Regulator that a reasonable person might consider that its activities are or will be carried on for the benefit of the community. This is known as the community interest test and the CIC must continue to meet this test throughout its life. A CIC cannot be used solely for the financial advantage of a group of people, for political purposes, or for the benefit of the employees or directors of a single organisation

A CIC limited by shares can pay dividends to investors but there is a dividend cap dividends are limited to a maximum percentage of distributable profits as set by the CIC Regulator. A CIC limited by guarantee cannot pay dividends at all. The Asset Lock ensures the majority of profits are retained for community benefit.

A CIC is regulated by the CIC Regulator and Companies House and can trade commercially to earn income while directing profits to community benefit. A charity is regulated by the Charity Commission and must operate exclusively for charitable purposes. A CIC cannot become an ordinary company once registered — the only ways out are dissolving the company entirely or converting to a charity or Charitable Incorporated Organisation (CIO).

All CICs have a compulsory Asset Lock that cannot be removed. The Asset Lock ensures that the assets of the CIC, including any profits, are used for the benefit of the community and cannot be used for private gain. It is important to understand this concept before setting up a CIC as it has permanent long-term consequences.

A CIC must file annual accounts and a Confirmation Statement with Companies House each year. Directors must also prepare an annual CIC Report (form CIC34) to be filed with the accounts along with a £15 administration fee. A CIC must also submit a Corporation Tax return to HMRC in the same way as a limited company.
The CIC34 is the annual Community Interest Report that all CIC directors must prepare and file with their accounts every year, including when the CIC is dormant. The purpose of the CIC34 is to show that the CIC is still satisfying the community interest test and that it is engaging appropriately with its stakeholders in carrying out activities which benefit the community.
Yes, Rezex Accountants has experience working with Community Interest Companies. We handle CIC annual accounts preparation, CIC34 report preparation and submission, Corporation Tax returns, VAT returns and bookkeeping for CICs across the UK. Contact us for a CIC accounting quote.

Making Tax Digital-MTD ITSA

Making Tax Digital for Income Tax is a new way for sole traders and landlords to report their income and expenses to HMRC. Instead of one annual Self Assessment return, you keep digital records and send quarterly updates to HMRC using approved software, followed by a final year-end declaration

You need to use Making Tax Digital for Income Tax if all of the following apply,  you are an individual registered for Self Assessment, you get income from self-employment or property or both, and your qualifying income is more than the relevant threshold for the tax year

MTD ITSA is being introduced in phases. If your qualifying income was over £50,000 in the 2024 to 2025 tax year, you must use it from 6 April 2026. If over £30,000 in the 2025 to 2026 tax year, from 6 April 2027. If over £20,000 in the 2026 to 2027 tax year, from 6 April 2028
You must create and store digital records of your income and expenses, send quarterly updates to HMRC using compatible software, and submit your tax return and pay any tax due by 31 January following the end of the tax year.
After four quarterly updates you must submit your tax return using compatible software and pay any tax due by 31 January following the end of the tax year. This replaces the traditional Self Assessment return for qualifying individuals.
No, you do not need to start using Making Tax Digital for Income Tax until after you have submitted your first Self Assessment tax return.
HMRC will write to you if your qualifying income is above the threshold. However even without a letter it is still your responsibility to check if and when you need to sign up using HMRC’s online tool at GOV.UK.
No, Making Tax Digital for Income Tax applies only to sole traders and landlords filing Self Assessment returns. It does not currently apply to companies, trusts or estates.
Qualifying income is your total gross income from self-employment and property. Use HMRC’s dedicated qualifying income guidance to check exactly what is included and excluded for your circumstances.
Qualifying income includes gross income from self-employment and gross income from property both UK and overseas. Employment income, pensions and dividends are not included.
Yes, MTD ITSA applies to both sole traders and landlords. If your total qualifying income from self-employment and property combined exceeds the relevant threshold, you must use Making Tax Digital for Income Tax. This includes income from residential, commercial and overseas property.
You must use software compatible with Making Tax Digital for Income Tax. HMRC does not provide its own software. You need to choose from HMRC’s list of approved commercial software to create and store digital records, send quarterly updates and submit your tax return.
HMRC will write to you if your qualifying income exceeds the threshold. Even without a letter it is your responsibility to check if you need to sign up. You can use HMRC’s online tool at GOV.UK to check.
Yes, exemptions are available including for those who are digitally excluded. If exempt you will not have to use MTD ITSA but must continue to report income via Self Assessment. You can check if you qualify at GOV.UK
Not yet, partnerships will need to use MTD ITSA in the future but HMRC has not yet confirmed the timeline.
If you do not think you need to use MTD ITSA you should contact HMRC directly using the Self Assessment general enquiries contact on GOV.UK.
Yes, you can appoint a tax agent such as Rezex Accountants to sign up and manage your MTD ITSA obligations on your behalf using compatible software.
HMRC has an online tool that allows you to check if you need to use MTD ITSA, when you need to start, and if you may be exempt. You can also use this tool on behalf of someone else.
Work out your qualifying income, check if and when you need to sign up using HMRC’s online tool, choose compatible software, and sign up for the service before your start date. Rezex Accountants can manage the entire MTD ITSA process on your behalf.
Yes, Rezex Accountants can act as your appointed agent for Making Tax Digital for Income Tax. We handle your digital record keeping, quarterly updates and year-end declaration using HMRC-approved software — fully online, no meetings required. Contact us to get started.

ACSP & Identity Verification for Companies House

An Authorised Corporate Service Provider (ACSP) is also known as a Companies House authorised agent. An authorised agent can be a business such as a limited company or partnership, or a person who files on behalf of others such as a sole trader. To register as an ACSP, agents must be supervised by a UK Anti-Money Laundering (AML) supervisory body. Examples of ACSPs include accountants, solicitors and company formation agents. Rezex Accountants is a registered ACSP with Companies House.
Registering as an Authorised Corporate Service Provider is a requirement introduced under the Economic Crime and Corporate Transparency Act 2023 to help Companies House know who is filing information on the public register. Using an ACSP-registered accountant means your filings are made by an authorised, regulated and Anti-Money Laundering supervised professional giving you greater protection and confidence that your Companies House submissions are legitimate and compliant.
ACSPs are agents such as accountants or solicitors that have registered with Companies House to file or complete other activities on behalf of clients. An ACSP can verify your identity for Companies House, file your annual accounts, confirmation statements, and other documents on your behalf. Rezex Accountants as a registered ACSP can handle all your Companies House filing and identity verification requirements — fully online, no meetings required.
Yes, an ACSP can verify your identity for Companies House on your behalf. You can do this from any country but your agent must be registered with Companies House and with a UK Anti-Money Laundering supervisory body. If you use an agent your identity will only be verified for Companies House not for any other government service or department. When an agent has agreed to verify your identity you will need to provide documents from an approved list as evidence.
Identity verification for Companies House became a legal requirement from 18 November 2025. All company directors, People with Significant Control (PSCs) and anyone filing information at Companies House must verify their identity. If you do not comply with identity verification requirements you may be committing an offence and could face prosecution and a financial penalty. An ACSP such as Rezex Accountants can verify your identity on your behalf.
When you have successfully verified your identity with Companies House you receive a unique identifier known as a Companies House personal code. This personal code is required when filing confirmation statements and appointing new directors. Every director of a UK limited company needs their own personal code. Rezex Accountants as a registered ACSP can verify your identity and help you obtain your personal code.
Currently only agents that plan to verify the identity of clients for Companies House need to register as an ACSP. However from no earlier than November 2026 all businesses that file with Companies House on behalf of clients will need to be registered as an ACSP even if they do not offer identity verification services. Rezex Accountants is already registered as an ACSP. Our clients are already ahead of this requirement.
Companies House authorised agents must comply with the following legal requirements, the agent must always be registered with at least one Anti-Money Laundering supervisory body, must tell Companies House within 14 days of any changes to the information held about the agent, must provide additional information if requested by Companies House, and must keep records of any identity checks for 7 years.
The agent will be committing an offence if they do not comply with legal requirements. This means the sole trader or all company directors could receive a fine or face criminal prosecution. Companies House may also suspend or cease the authorised agent’s status which would prevent the agent from being able to file or verify identities for Companies House. Companies House publishes a public list of suspended and ceased ACSPs.
Companies House publishes a public list of all registered ACSPs. You can search this list on GOV.UK to verify that your accountant is registered and authorised. You should also check the list of ceased and suspended ACSPs before using any agent. Rezex Accountants is a registered ACSP. You can verify this on the Companies House public register.
Yes — Rezex Accountants is a registered Authorised Corporate Service Provider with Companies House. We can verify your identity for Companies House on your behalf, file your company documents, and ensure all your Companies House obligations are met fully online, no meetings required. Contact us on 020 35765107 or email info@rezexaccountants.com to get started.

Compliance

Yes, the companies need to mandatorily report Person with Significant Control (PSC) changes to Companies House as and when they happen. Besides reporting changes to Companies House, companies are also required to maintain a Register of People with Significant Control. If you fail to comply with these requirements you could be committing a criminal offence.

  1. Filing of dormant accounts to Companies house- Dormant accounts should include a balance sheet and any relevant notes for the past financial year. The accounts will have to be filed with Companies House every year, no later than 9 months after the end of the company’s financial year.
  2. Filing of confirmation statement to Companies House- You also required to provide an annual confirmation statement for a dormant company every 12 months. The due date for filing a confirmation statement for the dormant company is 12 months from the date the company was incorporated and then needs to be filed every 12 months. It must be filed within 14 days from this date. It is to be filed even if there is no change to the relevant details.
  1. Filing of dormant accounts to Companies house- Dormant accounts should include a balance sheet and any relevant notes for the past financial year. The accounts will have to be filed with Companies House every year, no later than 9 months after the end of the company’s financial year.
  2. Filing of confirmation statement to Companies House- You are also required to provide an annual confirmation statement for a dormant company every 12 months. The due date for filing a confirmation statement for the dormant company is 12 months from the date the company was incorporated and then needs to be filed every 12 months. It must be filed within 14 days from this date. It is to be filed even if there is no change to the relevant details.
You can inform HMRC about the dormant status by calling on 0300 200 3410 or you can update the same over the Web chat Or write a letter addressed at Corporation Tax Services, HM Revenue and Customs, BX9 1AX, United Kingdom.

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