How do I set up an online accountancy service for my sole trader business?

Setting up online accounting for your sole trader business with Accountsway takes just a few steps: choose a pricing plan, share your financial documents securely, and our team handles your bookkeeping, Self Assessment tax return, and HMRC submissions on your behalf. You also get access to Xero accounting software included in your plan.

What do outsourced accounting services actually include?

Accountsway's outsourced accounting services include bookkeeping, VAT return preparation and submission, monthly or quarterly management accounts, payroll processing, Self Assessment or Corporation Tax returns, and Companies House filings. Higher-tier plans also include virtual CFO support and financial modelling.

I am a freelancer. Do I really need professional accounting services?

Freelancers in the UK are required to register for Self Assessment and file a tax return with HMRC each year. While not legally required to hire an accountant, doing so helps you claim all allowable business expenses, reduce your tax bill, avoid penalties for late or incorrect submissions, and save significant time during tax season.

Which accounting software do you use?

Accountsway uses Xero accounting software, which automates invoicing, bank reconciliation, and financial reporting. Xero access is included in our plans, and we offer the first month of accounting services free so you can experience the platform before committing.

How do I know if my business needs accounting services?

Your business likely needs professional accounting services if you are missing HMRC tax deadlines, unsure how to reclaim VAT, spending more than a few hours per week on bookkeeping, or growing to a point where financial planning becomes complex. UK businesses with a turnover over £90,000 are also legally required to register for VAT.

Are accounting services worth it for a small business?

Yes. For most UK small businesses, the cost of professional accounting services is outweighed by tax savings through proper expense claims, penalties avoided for late HMRC submissions, and hours saved each month on bookkeeping. Accountsway's plans start from £25.50 + VAT per month, making it affordable for sole traders and small limited companies.

How much does a small business accountant cost in the UK?

The cost of a small business accountant in the UK varies widely. Traditional high-street accountants charge £500–£2,000+ per year for basic services. Accountsway offers fixed-fee online accounting from £25.50 + VAT per month for sole traders, with no hidden charges and the first month free.

Do I need an accountant as a limited company in the UK?

Limited companies in the UK must file annual accounts with Companies House and a Corporation Tax return with HMRC each year. While not legally required to use an accountant, these obligations are complex and errors can result in fines. Most limited company directors use a professional accountant to ensure compliance.

Accounting

7 Common Mistakes Belonging to Taxation Matters Committed by the Small Business Accountant in the UK

Posted by

Accountsway

June 16, 2026

On June 16, 2026

Business taxation matters are highly important for businesses as it is the matters that often cause serious penalties to the business. The margin of error becomes very thin, especially when the matter of handling the taxation affairs of a small business as an accountant. Small businesses want to have the services of third-party accountants as they are looking to avoid mistakes in taxation matters. The idea behind having the services of small business accountant is that small businesses operate with smaller budgets. Therefore, they are in no position to face the penalties that are a result of the negligence of the in-house small business accountants.

A capable outsourced service provider will add more value, accuracy, and assist the business to avoid unnecessary penalties. They are more experienced and professional in dealing with the difficult taxation matters that will be the probable cause of the penalties and sanction which has to be dealt with. Accountsway is one of the names for the services of a small business tax accountant in London. They have the command and skill to manage taxation matters amicably, which is why they are preferred by small businesses. In this blog, we are explaining the 5 basic mistakes that should be avoided to save themselves from the penalties and sanctions as the manager of a small business.

Ignorance of the HMRC-Explained laws for VAT Filling

The laws for VAT registration and filing are very clear, but the problem is that inexperienced accountants perceive them wrongly. You only need to file the VAT return if your business exceeds the limit defined by the HMRC; otherwise, you do not need to file the VAT return in the UK. Mostly, small business accountants make a mistake in establishing whether they need to file or not. Whether the VAT return is submitted or not, these types of errors must be avoided by the accountant to avoid penalties from the HMRC.

Mixing Business & Personal Finances by an Accountant for Small Business

It is the most common mistake by accountants that they are unable to accurately figure out the business and personal management expenses. Mixing will cause the wrong figures in both the personal return and the business return. Therefore, thoroughly check personal and business expenses before finalising a business’s expenses.

Not Considering the Deadlines for Tax Filing

To avoid the taxation penalties, the business must follow the deadlines that are provided by the HMRC for tax & VAT return and registration. Accountants for small businesses that ignore the due dates will be the cause of penalties and sanctions, which are not favourable for the business. Therefore, avoid the mistake of ignoring the deadlines provided by the HMRC for the VAT and CIS returns.

Ignoring the Rebate Opportunities by a Small Business Accountant

The best scenario for the small businesses that are operating with smaller budgets is to avail the tax relief opportunities. This will save the important resources of the business and provide a margin in the budget of the business. Small business tax accountants often ignore opportunities for tax rebates and take them for granted. As an Xero accountant in London, you must avoid these types of mistakes.

Must not ignore the Taxation Updates Provided by HMRC

As a professional accountant, you need to be updated as per the fresh regulations and updates provided by the HMRC. If the in-house accountant who is following the previous regulations and old laws is the probable cause of the serious penalties. Professional accountants are always aware of their duties and the updates about the taxation regulations by the HMRC.

Poor Record Maintenance by Small Business Accountants

As an accountant, your records regarding the taxation matter must be accurate and exact to be presented in front of the authority. In case of any mistake in the record during the inspection and audit, the authority will be the cause of serious penalties. To stay on the safe side, always maintain records precisely to avoid any inconvenience, and experts recommend this procedure

Not Considering the Advice of the Experts

As an accountant for small businesses, you must follow the instructions and techniques of the field professionals to be on the safe side. If you are committing the mistake of ignoring the expert advice, then there is a decent chance the business may face the consequences of not following the authentic practices. The best thing in this regard is to follow the instructions of the experts during the small business accountant services.

Accountsway’s exclusive services of small business accountants will make sure that the above-mentioned mistakes will not be committed during the services. They are the true professionals who will avoid mistakes by following the authentic practices during their small business accounting services.

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