RK Bookkeeping

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

23/01/2026

😧

Knew we'd seen that face before... 😱

22/01/2026

Filing your Assessment? You’ll need your Unique Taxpayer Reference.

To find it, there’s no need to call. Find it quickly and easily using the HMRC app.

Watch our guide below. 🎥⬇️

https://www.youtube.com/watch?v=LXw9ily9rTo

21/01/2026

Are you confused about payments on account (POA)?

HMRC don't make things easy and when you have to pay your tax can be one of the most confusing thing to remember.

Basically, your tax bill is due for payment on (or before) 31st January. This is 9 months after the end of the tax year, and in some case 21 months after you actually invoiced / received the money from clients!

Payments on Account (POA) become compulsory when your tax bill payment is over £1000 and applies to anyone who's paying tax through self assessment (so sole traders, landlords, limited company owners etc.)

The POA pulls forward the tax payments so you pay HMRC in advance of the 31st Jan date, but it's still after you actually earnt the money!

So, for the current tax year 25-26 you'll pay
- 50% estimated tax bill on 31st Jan 2026
- 50% estimated tax bill on 31st July 2026
- Balancing payment (the difference between the estimate and the actual bill once you've done your return) on 31st Jan 2027.

If you're already in POA and have steady income you'll end up paying 50% of your tax bill every 6 months so it's easy to remember.

The main problem comes when the 1st POA is due as it'll be due at the same time as the whole bill for the previous year so it feels like a lot of tax in one go but this is a one off. The best way to deal with this is to do your tax return as early after 5th April as possible then you have plenty of warning, and make sure you're putting something away for your tax bill as soon as you're earning, not just when you've done your first tax return.

If you need any more info, or advice on how to set up just let me know.

https://www.gov.uk/understand-self-assessment-bill/payments-on-account

14/01/2026

I see this query a lot on Facebook forums - there is a very important distinction to be make between a freelancer / self employed person and an employee - read the blog from Kate (The HR Hero) below

If you rely on self-employed associates, clarity is not optional. It is your safety net.

I see so many brilliant founders who trust their contractors deeply and want to treat them well. The problem is that when things are relaxed and friendly, you accidentally blur boundaries. Suddenly your “freelancer” is working fixed hours, can’t refuse work and feels like part of the internal team.

When relationships shift informally but contracts stay the same, risk grows in silence.

If this rings true, you are not alone and it is fixable.


Start with the January blog. It explains what “genuine” self-employment looks like.

https://www.thehrhero.co.uk/post/self-employed-vs-employed-how-uk-small-businesses-can-avoid-misclassifying-freelancers-and-associat

14/01/2026

Have you submitted your tax return?
The deadline for submission of personal self assessment tax returns is the 31st January and payment is also due on that day.
It's not too late to ask for help if you really need it, and it's not too early to get more organised for the next one!

20/10/2025

If you’re having issues using Xero this morning it’s due to global issues with Amazon Web Services. AWS is currently down which is affecting Xero and many other major websites.

To stay up to date with Xero status you can use the link below