Plain English

• P11DThe form that tells HMRC about perks like a company car.

  One per employee who had a benefit in kind. From April 2027 the main benefits go through the payroll instead.

• MTD for Income TaxQuarterly updates to HMRC from digital records, not one January return.

  Making Tax Digital for Income Tax. Sole traders and landlords earning over £50,000 from April 2026, £30,000 from 2027, £20,000 from 2028.

• Business Asset Disposal ReliefA lower Capital Gains Tax rate when you sell a business you have run.

  Formerly Entrepreneurs' Relief. The conditions must hold for two years before the sale, so it needs planning.

• Class 1A NICThe National Insurance an employer pays on staff perks.

  Charged on benefits in kind and reported with the P11D.

• CT600The Corporation Tax return a limited company files every year.

  Due twelve months after the year end. The tax itself is usually due nine months and a day after.

• Payments on accountTwo advance instalments towards next year's Self Assessment bill.

  Due 31 January and 31 July, each half of last year's bill. They catch people out in their second year of trading.

• Annual Investment AllowanceDeduct the full cost of qualifying equipment from profits this year.

  One of the capital allowances. Buying just before or just after a year end changes the tax bill.

• R&D tax reliefA reduction in Corporation Tax for genuine innovation work.

  Not only for laboratories. A new process or product can qualify, but the claim has to be evidenced.

• EIS and SEISTax reliefs for investors who back young UK companies.

  The Enterprise Investment Scheme and its seed version. Advance assurance from HMRC reassures investors before they commit.

• Dividend allowanceThe slice of dividend income each year that is tax free.

  It has fallen sharply in recent years, which is why the salary and dividend mix needs reviewing every year.

• Confirmation statementThe yearly check that Companies House has your company details right.

  Not the accounts. Each has its own deadline and its own penalty.

• Benefit in kindAnything an employee gets besides pay, like private medical cover.

  Taxable on the employee, with Class 1A National Insurance for the employer.

• Management accountsMonthly or quarterly figures that show how the business is doing now.

  Year-end accounts look backwards. Management accounts are how you steer.

• Cashflow forecastA month by month view of the cash coming in and going out.

  Profit on paper is not cash in the bank. The forecast shows the gap before it bites.

• Self AssessmentThe tax return for income HMRC does not already know about.

  Sole traders, landlords, most company directors and anyone with untaxed income. Online returns are due 31 January.

• Director's loan accountThe running tally of money between you and your company.

  Overdrawn at the year end, it can mean an extra company tax charge and a personal one.

• VATTax added to most sales, collected by registered businesses and passed to HMRC.

  Registration is compulsory over the threshold. Flat rate and cash accounting schemes simplify it for smaller businesses.

• Sole traderYou and the business are the same person in law and for tax.

  Simple to run, but you carry the risk personally. A limited company separates the two.

• Due diligenceChecking a business over carefully before you buy or invest.

  Accounts, tax, contracts, people, and the things nobody wrote down.

• CharteredQualified, examined, and bound by a professional body's rules and ethics.

  Every practice principal at Evans Entwistle holds Chartered status with CIMA or ACCA.

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