RK Bookkeeping

15/07/2026

Government consultation -Timely Payments in Income Tax Self Assessment (ITSA)

Payments on account are due at the end of this month! But do you really understand what tax period you're paying for an when?

Well, even if you do, it may be about to change (well from 2029)! As part of Budget 2025 there is a consultation currently running around timing of payments from self assessment - so this affects Directors who pay themselves through dividends as well as sole traders.

The proposals are to make payments more regular and bring them into 'real time'. This will affect those who pay part of their tax through PAYE and some through self assessment, but also possibly those who pay the whole amount through self assessment. It may also bring more people into POA who haven't been in the past.

There'll be an impact on the timing of payments (not on the amount) to bring it forward, and everyone will get that big initial hit to bring them up to date (do you remember the big payment the first time you fell into POA?)

You may think this is a great idea, or you may think the admin and cashflow will have a massive impact on your business.

Whatever your thoughts make sure you have your say before August 4th

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22/06/2026

19/06/2026

Some extra skills for a Friday afternoon - I'm now a Level 3 certified specialist on Xero 🥳

Congratulations! Rachel Kirk completed L3 Xero specialist certification assessment on Jun 19, 2026.

25/05/2026

Have you done yours yet? Why wait?

If you need any support with your tax return (or setting up for MTD), get in touch

06/04/2026

MTD has now arrived for those with gross income of £50,000 (in 24/25). If you’ve still got questions or not sure if it applies to you get in touch.

Making Tax Digital for Income Tax is here. 📢

If your combined turnover from property and self-employment is more than £50,000, you’ll need to start keeping digital records now.

Check if Making Tax Digital applies to you and sign up today. ⬇️

https://makingtaxdigital.campaign.gov.uk/?&utm_source=f.co_hmrcgovuk&utm_medium=social&utm_campaign=mtd

25/02/2026

Did you know HMRC have an app and it's the easiest way to communicate with them

The app is useful to everyone, whether you're employed or self employed, and it's much easier than sitting on the phone (on hold) for hours!
- check and ask for changes to your tax code
- check your National Insurance number and download to your phone 'wallet'
- check your employment and income history from the previous 5 years
- check your Unique Taxpayer Reference (UTR) for Self Assessment, check how much tax you owe and make payments (or set reminders)
- Claim a refund on overpaid tax
- apply for and check Child Benefit
- get a State Pension forecast and see if there are any gaps in National Insurance contributions
- update your name and address

It should be the first port of call when needing to contact HMRC and is normally pretty efficient.

https://www.gov.uk/guidance/download-the-hmrc-app

11/02/2026

You're moving from employment to being self employed and aren't sure when / how you pay for your National Insurance.

This is something that's always just happened when you get paid each month through PAYE but how does it work when you're self employed?

Well, it all forms part of the calculations within your self assessment tax return and will be paid at the same time as your income tax. This is also the case for Student / PG loans and things like High Income Child Benefit Charge.

When you're employed you will normally pay Class 1 NI which is, depending on the amount you earn, taken at 8% (on earnings over £12,570) and then 2% of your earnings (on earnings over £50,270). If you're a director of a limited company and paid through PAYE this will also be the case for you.

If you're self employed you will be liable for Class 2 and Class 4 NI.

Class 2 is a flat rather (currently £3.50 per week) which goes towards your state pension and other benefits. If you have low profits you can voluntarily pay it, if your profits are over the Small Profits Threshold then you are 'deemed to have paid'.

Class 4 is based on a percentage of your profits (similar to Class 1) and is currently 6% on profits over £12,570, then 2% on profits over £50,270.

If you're self employed and doing a tax return your National Insurance will be calculated when you do your tax return and paid on the same deadlines. The return will also include a calculation for any student loans that you owe. It's important to factor these into any savings you're making towards your tax return payments.

If you would like any more info please send me a message.

04/02/2026

I've started a new business so do I need a new bank account?

Well, like a lot of things the 'easy' answer is it depends!!!!

If you're running a Limited Company, the answer is simple - the Limited Co is a separate legal entity so needs it's own specific business bank account which should be used for all business income and expenses.

For a Sole trader it's a bit more complicated. Legally there is no distinction between the person and the business so legally there is no need for a separate bank account. HOWEVER, there are a lot of reasons to get a separate account, and to get a business account.

- it makes tracking income and expenses related to your business much easier, making your bookkeeping much more straightforward (especially if you want to get outside help with this)
- it looks more professional and credible to your clients
- it helps you to build business credit for future loans, credit cards etc
- many personal bank accounts have terms that prohibit business transactions, risking account closure

The last point is debated by a lot of people who just use a separate personal account but you need to be especially careful with your banks terms and conditions. There are still sole trader bank accounts out there that are free or have a minimal fee so it's worth looking into.

Still confused and wondering what's best, just drop me a message.

28/01/2026

What does a Bookkeeper actually do, and how is it different to an accountant?

I get asked this a lot and it's not a straight forward answer - I'm a Chartered Management Accountant but I work as a Bookkeeper, which seems strange to some.

Bookkeeping is the processes of recoding financial transactions on a regular basis (daily, weekly or monthly) ensuring sales, purchases, payments and receipts are all recorded accurately to keep 'the books' up to date.

Accounting is the process of interpreting and reporting the bookkeeping data to support business decisions (management accounting) and produce reports for compliance purposes such as tax returns and financial statements. This is more often done on a periodic basis (annually, quarterly etc).

So an accountant will probably use the data that's been recorded by a bookkeeper to produce the reports they need - accurate bookkeeping makes accounting more efficient.

My business is called 'RK Bookkeeping' but there's an overlap / grey are in what I do, largely due to my background as a management accountant but also due to the bits of 'accounting' that I enjoy.

I provide regular (daily, weekly and monthly) bookkeeping services and management accounts reporting to all businesses (Limited, charities, sole traders, partnerships) but also provide accounts and personal tax return services to sole traders. I'm more than happy to leave the other parts of accounting (corporation tax and accounts for companies house) to those who like that type of work.

If you would like to chat further or get more info just drop me a line