Accountants in College, Upper

First-year traders around College, Upper tend to make the same three mistakes: registering late, mixing business and personal spending in one account, and saving nothing for the first tax bill. All three are avoidable in an afternoon of setup.

Inside-IR35 and outside-IR35 engagements need different setups — sometimes umbrella, sometimes the company, sometimes both across a year. Contractors who plan this per-engagement keep more and worry less.

Dividends can only be paid from accumulated profits, and paperwork matters: board minutes and dividend vouchers, dated correctly. "Illegal dividends" isn't dramatic language — overdrawn payments can be reclassified, with tax consequences, if the profits weren't there.

Directors paying themselves a salary still need a PAYE scheme and RTI submissions, even in a one-person company. It's a five-minute monthly task with software — and a recurring penalty generator without it.

Payments on account catch people out because the first year effectively bills you one-and-a-half years of tax at once. Knowing that in advance changes how you save through the year — and if profits fall, we can apply to reduce the July payment rather than lending HMRC money interest-free.

Selling a rental property triggers capital gains tax with a tight reporting window — UK residential sales must be reported and the tax paid within 60 days of completion. It's one of the easiest deadlines in the whole system to miss, and one of the most penalised.

Timing disposals across tax years, using losses properly, and the spousal transfer rules can all legitimately reduce capital gains bills — but only before the sale. CGT planning after completion is just arithmetic.

Selling online, freelancing on the side, renting out equipment — each can be a "trade" in HMRC's eyes once it's done with a profit motive. The good news: registering is straightforward, expenses become claimable, and done early it's a non-event.