Frequently Asked Questions

The VAT registration threshold is currently £90,000 in turnover. Once your business goes over this, you’ll need to register for VAT. At OH Accounts & Bookkeeping, we can monitor your turnover for you, let you know when it’s time to register, and guide you through the process, which is much simpler than it might seem.

• A bookkeeper looks after the day-to-day finances. This includes recording sales and purchases, reconciling the bank account to spot errors, raising invoices, keeping track of supplier payments, running payroll, managing budgets, preparing VAT returns, and making sure everything is ready for tax deadlines.
  
  
• An accountant takes that information and provides the bigger picture. They’ll use the financial records to prepare and submit accurate tax returns, ensuring everything is filed correctly and on time. Accountants can also carry out more complex tasks such as auditing, financial planning, and offering strategic advice to help your business grow.

This depends on your situation. Many of our clients tell us, “I just want to do my job - I don’t want to spend hours on paperwork!” and that’s exactly where we step in.

If you’d rather focus on running your business than chasing receipts, filing VAT returns, or keeping on top of day-to-day records, a bookkeeper can make life much easier. And if you’re finding you’re falling behind with your financial admin, it’s usually a sign that it’s time to get some help.

In an ideal world, yes, but we know that’s not always realistic. Coffee gets spilt and things get lost. The important thing is to keep as many records as you can, especially for expenses. The more evidence we have, the easier it is to keep everything accurate and HMRC happy.

Absolutely! We can guide you through every step of starting a business - from registering as a sole trader or setting up a limited company, to organising bookkeeping systems, VAT, payroll, and self-assessments. We’ll also talk through what structure works best for your needs so you can start off on the right foot with confidence.

Deciding whether to operate as a sole trader or a limited company is an important step when starting a business. Here’s how they compare:

Sole Trader

• You and the business are legally the same entity.
• You keep all the profits, but you’re also personally responsible for any debts.
• If things go wrong, your personal assets (like savings or your home) could be at risk.
• Tax is simple: you pay income tax on all your business profits through self-assessment.
• Easy to set up with minimal paperwork, but only one person can own the business.

Limited Company

• The business is a separate legal entity from you.
• Your personal assets are protected and you’re not personally liable for company debts.
• A Limited Company can be owned by one person or multiple shareholders.
• More flexibility with income: you can take a salary and dividends (which are often taxed at a lower rate).
• Profits can be kept in the company for future use, but corporation tax applies.
• More paperwork and responsibilities, such as keeping company records and filing annual returns.

In short: being a sole trader is simpler and quicker to set up but comes with more personal risk. A limited company offers protection and tax advantages but requires more administration.

It’s always a smart idea to put money aside each month so you’re not hit with an unexpected bill. The amount depends on whether you’re a sole trader or running a limited company:

Sole Traders

• Save 20-25% of your income if you’re a basic rate taxpayer (£12,570–£50,270).
• Save 35-40% if you’re in the higher rate band (£50,271–£125,140).
• Save 45% if you earn above £125,140 (additional rate).

Limited Companies

Corporation tax applies to company profits:

• Up to £50,000 - taxed at 19%
• Over £250,000 - taxed at 25%
• Between £50,000 and £250,000 - a tapered rate between 19% and 25% applies

Setting aside a percentage regularly means you’ll always be prepared, and we can help you work out the right figure for your situation.

Not every cost can be claimed as a legitimate business expense, but there are more allowable expenses than many people realise. Things like travel, office supplies, professional fees, and even part of your home costs (if you work from home) may qualify.

At OH Accounts & Bookkeeping, we’ll advise you on what you can and can’t claim, and highlight expenses you might not have thought of. That way, you stay compliant with HMRC while making the most of what you’re entitled to.

Absolutely. Confidentiality is of paramount importance to us at OH Accounts & Bookkeeping. As a regulated practice, we follow the ICB’s Fundamental Principles, which means your financial information is always handled with the highest level of care and discretion. Nothing about your accounts is ever shared outside of our work together - your data stays secure, private, and protected.

Sole Trader: You and your business are the same legal entity, so you don’t need to put yourself on payroll. Instead, you simply take drawings from the business profits.

Limited Company: You are separate from the company, so you’ll usually pay yourself through payroll (a salary), dividends, or a mix of the two.

Every situation is different, so we can advise on the most tax-efficient way to pay yourself based on your business setup and income.