Accountant Advice & Tax Advice in the UK for the Self-Employed
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If your tax feels confusing, stressful, or time-consuming, it usually means one of three things. Your business structure is wrong, your tax planning is reactive, or your records are messy. Fix those, and most tax issues calm down fast.
Key highlights
Many UK business owners and self-employed people pay more tax than they need to
Most tax problems start before the tax return, not when you file it
The UK tax system rewards planning, not rushing
Getting an accountant’s advice early gives you more legal options
HM Revenue and Customs (HMRC) issues are stressful, but usually fixable
We’re going to say this upfront. If you feel behind with taxes, you are not failing. You are dealing with a system that is complex by design. We see this every day at MMBA while working closely with our clients. For accountancy guidance, you can reach out to MMBA experts by phone or email.
Table of Content:
Why does the UK tax system feel so hard?
Because it is not one tax, it is layers.
Income tax.
National Insurance.
Value Added Tax (VAT).
Sometimes inheritance tax, too.
Each one has different rules. Different deadlines. Different penalties. And HMRC guidance let’s be polite and assumes you already know the basics.
We regularly speak to clients who did nothing “wrong”, yet still ended up with unexpected tax bills. That is not carelessness. That is structure and timing, and the kind of issue that professional accounting services are designed to prevent.
What do people really mean when they ask for accountant advice?
They are not asking about forms. They are asking:
“Am I paying too much tax?”
“Have I set this up correctly?”
“What happens if HMRC contact me?”
“Can someone just explain this without jargon?”
That is the real job. Accountant’s advice is not about ticking boxes. It is about a firm understanding of how your tax affairs actually work.
The most common tax issues we see in the UK
Here are some of the most common tax issues and concerns we have seen in the UK, many of which become time-consuming and stressful without the right support from experienced advisors who work daily with clients in similar situations.
“Why is my tax bill so high?”
This is the big one. Usually it comes from:
Payments on account
No tax planning during the tax year
Untaxed income streams
Allowable expenses not claimed properly
Example: A self-employed consultant earning well over £60,000 but still operating like a side hustle. No planning. No buffer. January hits hard.
That pain was avoidable.
“I’m behind on my tax return.”
This happens more than people admit. Life moves fast. Admin slips. Then it snowballs. The issue is not being late. The issue is waiting too long to deal with your tax return. HMRC penalties grow quietly.
“I think my tax affairs are wrong.”
Often, they are not wrong. They are just never reviewed. Wrong business structure. No tax efficiency planning. No one is checking the numbers properly. HMRC will not warn you. They just wait.
Contact MMBA for practical advice tailored to your
business needs that makes sense.
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Business structure - sole trader or limited company?
This decision alone can change how much tax you pay. Choosing the right structure early, whether as a sole trader or a company, can save money and headaches later, something professional accounting services can help guide you through.
Sole trader
Simple setup
Fewer forms
Income tax plus National Insurance on profits
Great at the start. Less great as profits rise.
Limited company
More admin
Corporation tax on profits
Director’s salary plus dividends
More planning options
Operating as a limited company offers an advantage that can make the extra admin worthwhile.
We see many people stay sole traders for too long and pay for it.
Quick comparison- Pay Tax
| Topic | Sole Trader | Limited Company |
| Main tax | Income tax | Corporation tax |
| Admin | Lower | Higher |
| Planning options | Limited | Wider |
| Risk | Personal | Limited liability |
| Companies House filings | No | Yes |
Choosing the wrong structure is expensive. Choosing the right one early, whether running as a sole trader or a company, can reduce how much you pay tax and save years of pain, setting your business up for a more secure future.
Self Assessment and personal tax - where money leaks quietly
This section highlights common areas in self assessment where overlooked income or expenses can quietly lead to lost money.
Self Assessment sounds simple… until it isn’t
One income source is easy. Then you add:
Freelance work
Rental income
Investment
Side projects
Suddenly, the tax return/self assessment becomes complex. And rushed returns miss things.
Allowable expenses (this causes endless confusion)
Some people claim nothing. Some claim everything. Both are risky. What matters is accuracy plus consistency.
Capital gains tax and inheritance tax
This explains how capital gains and inheritance taxes can catch people unprepared and why early planning is essential.
Capital gains tax catches people out
By selling property,and shares, as well as business assets you may be liable for a CGT. Timing matters, and also planning matters. Once the sale happens, options disappear.
Inheritance tax needs careful planning
Most estates are not taxed. Some are. The problem is leaving it too late. One move to reduce inheritance tax can increase capital gains tax later. This is where professional advice matters.
VAT, payroll, and compliance (boring, but costly)
This section covers VAT, payroll, and compliance, highlighting common pitfalls that can be costly if overlooked.
VAT
Things you need to know about VAT.
- Current VAT registration threshold: £90,000 turnover
- Late registration is common
- The wrong VAT scheme is common
VAT errors get expensive very fast.
Payroll and PAYE
Paying yourself “roughly” the same amount each month does not work with HMRC. This includes:
- Director payroll
- Employee payroll
- National Insurance
- Real Time Information (RTI) submissions
Seeking professional advice can benefit you by structuring payroll correctly and avoiding costly mistakes.
What does tax planning actually mean?
Tax planning is timing income, timing expenses, choosing the right structure, and understanding cash flow. The best time to plan taxes is before year-end, not after. Once the tax year dates close, options shrink.
When DIY accounting stops making sense
You probably need support if:
- Tax takes over your headspace
- You spend hours Googling
- You are unsure if you are compliant
- HMRC letters make your stomach drop
Time has a cost. Stress has a cost. Professional support often saves both, and this is something our company’s clients frequently tell us after making the switch.
Conclusion
Tax does not need to feel this heavy. Most tax issues are fixable. Most overpayments are preventable. Most stress comes from not knowing what comes next, often caused by poor or inconsistent bookkeeping.
When you understand your tax affairs properly, everything feels lighter. Decisions get easier. Planning replaces panic. Good records and reliable bookkeeping make that clarity possible. That clarity changes everything. If any of this sounds familiar. If you want to discuss your tax affairs properly… Or if you just want reassurance that you are doing things right.
Our team of expert accountants is here to guide/contact you. You can reach us easily by phone to talk through your situation and get clear, personalised advice that helps protect your finances and plan for the future.
FAQs
Can you get free advice from an accountant?
Yes. Many UK accountants offer a free initial consultation. This is usually a very short call to review your tax affairs, flag obvious tax issues, and explain whether you need further advice or support. It is not full tax planning, but it is enough to give direction based on your specific circumstances.
How much does it cost to get advice from an expert accountant?
The cost depends on your situation. In the UK, accounting advice is usually charged as a fixed fee, a monthly fee, or an hourly rate.
Can I get free tax advice in the UK?
Accountants provide advice on tax, ensure compliance, and make financial reporting decisions. This includes tax planning, self-assessment, business structure advice, allowable expenses, corporation tax, VAT, cash flow, and dealing with HM Revenue and Customs (HMRC). The goal is to help you stay compliant, pay the right tax, and keep your finances in order.
Are dividends tax-free inside an ISA?
Yes, for basic guidance for legal business structure and financial reporting, it has many advantages. You can get general tax help from HMRC through the UK government’s site to ensure compliance. If you are on a low income, charities such as TaxAid and Tax Help for Older People may offer free professional tax advice. These services do not replace tailored accountant advice.
When should I speak to an accountant?
Before problems build up. The best time to speak to an accountant is before the tax year ends, before profits increase, before selling assets, or as soon as tax feels confusing.