There are two different ways in which accounts can be prepared – the cash basis and the accruals basis. The cash basis is the default basis of preparation for unincorporated landlords who are eligible to use it. However, they can elect to use the accruals basis if they prefer. Landlords who are not eligible to

Last reviewed: November 2026 Every allowable expense you claim reduces the profit you pay tax and National Insurance on. These are the ten we most often find clients have missed. Mileage: 55p a mile for the first 10,000 business miles from April 2026, if you use simplified expenses. Working from home: a flat £10 to

Private residence relief means that you do not have to pay capital gains tax on any gain that you make when your sell your home to the extent that the gain relates to the period that you lived in the property as your only or main residence or the last nine months of ownership (36

Last reviewed: November 2026 You must register for VAT if your taxable turnover goes over £90,000 in any rolling 12-month period, or if you expect it to go over £90,000 in the next 30 days alone. The threshold applies to sole traders, partnerships and limited companies alike. The two tests Test When it applies Register

There are various reasons why HMRC may issue a tax penalty. You may receive a penalty if you file your tax return late, your tax return is inaccurate, you are late paying tax that you owe or you fail to keep accurate records. If you do not agree with the penalty, you can appeal against