Guides For Business Owners
How can your accountant help with your personal and business tax planning?
Whether you are a sole trader, in a partnership or a director in a Limited Company it is important to regularly consider your personal and business tax position.
Why? Well it can help:
Minimise Tax Liabilities and Maximise legitimate allowances - Regular reviews allow businesses to identify and apply all available, legitimate tax reliefs, deductions, and incentives. Examples include the Annual Investment Allowance (AIA) for equipment, Pension Contributions for business owners, and utilising the correct profit extraction strategy (salary vs. dividends, Taxable Benefits etc.) for limited companies.
Improving Cash Flow - Proactive planning helps businesses anticipate tax payments (like Corporation Tax, VAT, and Payments on Account) well in advance, preventing "end-of-year" cash flow shocks.
Strategic Decision Making - Whether deciding to incorporate, selling assets, or investing in new machinery, regular tax planning ensures these big decisions are made at the most tax-efficient time, such as timing purchases to qualify for 100% first-year allowances.
E21 accounting don’t undertake aggressive schemes that might bare short term gain only to find long term pain in terms of scrutiny from HMRC and a wavering reputation with suppliers and clients. And honestly it is not worth it. There are so many factors we can consider to make you and your business tax efficient and compliant with the spirit of the tax legislation, whilst seeing benefits to you and your business.
Is a Sole Trader, Partnership or Limited Company Structure Better For You?
Maybe you’re just starting out your business and wondering whether you should be a sole trader, Partnership or set up a Limited Company.
Maybe you’re already a sole trader or partnership and unsure when you should consider incorporating into a Limited Company or LLP.
Or perhaps you are already a Limited Company trying to decide whether it is still worth it and to unincorporate.
E21 Accounting don’t believe there is a one size fits all answer. The are benefits and drawbacks of each business structure for example:
Personal Liability
Administrative Burden
Tax Efficiency Opportunities
Flexibility and ease of access to business funds
Credibility with potential clients and lenders
We will take time to understand what is important to you and provide a balanced view bespoke to your needs.
Making Tax Digital for Income Tax…What is it?
MTD for Income Tax is the new way for sole traders and landlords to report their income, expenses, and submit a tax return.
It requires digital records to be kept and used to submit quarterly income and expense estimates to HMRC at least on a quarterly basis.
There is also an annual final end of year return submitted in the same way, which accounts for the actual income and expenses for the year and any accounting adjustments required.
It is being introduced on a phased approach:
From April 2026 for Sole Traders and Landlords with combined gross income of £50k or more from these activities
From April 2027 for Sole Traders and Landlords with combined gross income of £30k or more from these activities
From April 2028 for Sole Traders and Landlords with combined gross income of £20k or more from these activities
If you need advice relating to MTD for Income Tax then E21 Accounting is here to help.
Am you using the right software for your business?
In the age of software and Artificial Intelligence developments, now more than ever is there a choice of how much functionality you want to adopt and how much control do you maintain when it comes to automating your finance function.
At E21 Accounting, we don’t force our clients to use specific pieces of software purely based on a blanket approach.
We take time to understand your current processes and software, along with what works well for you and what doesn’t work so well. We will then come up with a suite of software based on your preferences and what challenges you have, and ultimately what services E21 Accounting will be providing to your business.
If that refreshing approach sounds like a good fit for you and your business then reach out to us.
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E21 Accounting Limited is a limited company registered in England and Wales. Company Number 15408344.
Registered Office: 57 Creslow Way, Stone, Bucks, HP17 8YN
VAT Registration: 463870566
E21 Accounting Limited is licensed and supervised by the ICB
Practice license No. 24247
© 2025 E21 Accounting Limited
