Accurate and efficient bookkeeping
Comprehensive accounting solutions
Efficient payroll management
Cloud accounting solutions
VAT consultation services
Business insights & reporting
Individual tax services
Strategic tax optimization
Calculate VAT amounts easily
Calculate your take-home pay
Find the current UK financial week
Calculate your property purchase tax
Calculate company tax with marginal relief
Calculate tax on company dividends
Calculate CGT on property, shares or a business
Estimate IHT on an estate using current bands
Stay up to date with the latest accounting and business insights from IAK Accountants.
The profit and loss account is the statement that shows whether your business made money over a period. In the UK it has three legally correct names, two statutory layouts, and two changes landing between now and 2028 that will alter what your P&L looks like and who gets to read it.
A P60 is the annual summary of your pay and tax from one employer. It is also the single most requested proof of income in the UK, and the one payroll form that can be reissued when you lose it. This guide explains every box, the deadline, how to get one online, and the previous employment trap that catches people mid mortgage application.
Employment Allowance knocks up to £10,500 off your employer National Insurance bill. The number that actually matters is £70,000, because that is the amount of above threshold pay the allowance covers before you start writing cheques again. The Treasury said it would cover four full time workers on the National Living Wage. That stopped being true on 1 April 2026.
Statutory redundancy pay is capped at £751 a week and £22,530 in total for 2026/27. Both numbers went up in April. The £30,000 tax free threshold did not, and it has not moved in decades. That gap has closed from just under half to three quarters in twelve years, and when it finally shuts, statutory redundancy pay becomes taxable for the first time.
Statutory Maternity Pay is £194.32 a week for 2026/27, paid for 39 weeks. That much is easy to find. What almost nobody explains is that a small employer can recover more than it pays out, that the threshold deciding it has not moved since 2013, and that the same National Insurance changes everyone worried about in April 2025 quietly pushed thousands of employers onto the worse rate.
Three things changed on 6 April 2026. Sick pay now starts on day one, the earnings threshold has gone, and there is a new 80 percent cap. The headline rate of £123.25 got most of the coverage, but the change that actually costs employers money is the one nobody put a number on. This guide covers the current rules, the calculation, and what employers should do about it.
The approved mileage rate rose from 45p to 55p per mile on 6 April 2026, the first change in fifteen years. But the rate above 10,000 miles did not move, National Insurance follows different rules, and the whole thing was announced six weeks after it took effect. This guide covers the current rates, who they apply to, and what employers and sole traders should do about them.
Business rates changed more on 1 April 2026 than they have in a decade. England now has five multipliers instead of two, every commercial property was revalued, and the temporary 40 percent retail relief was replaced by a permanent discount that is worth considerably less. This guide explains how a bill is built, what the new rules do to it, and why a lot of hospitality businesses are paying more despite a headline tax cut.
Every UK company has to file a confirmation statement once a year, including dormant ones. Since November 2025 it has also become the checkpoint for identity verification, which means a filing that used to take four minutes can now be blocked entirely. This guide covers deadlines, the new £50 fee, what the statement does not do, and the transition deadline of 18 November 2026.
R&D tax credits are a Corporation Tax relief for companies solving genuine technical problems. This guide explains the merged scheme, enhanced support for R&D intensive companies, what the relief is actually worth now, the deadline that quietly invalidates more claims than any other rule, and HMRC's new advance assurance pilot.
Inheritance tax is charged at 40 percent on what you leave above your tax free thresholds. This guide covers the nil rate band, the residence nil rate band and its 60 percent trap, the seven year rule, the business property relief allowance that quietly rose to £2.5 million, and the pension change landing in April 2027.
Salary sacrifice swaps part of your pay for a non cash benefit and cuts the tax and National Insurance on both sides. This guide covers how it works, worked examples at basic and higher rate, pensions, electric cars, cycle to work, the £2,000 cap coming in April 2029, and the traps that catch people out.
Capital allowances are how HMRC gives you tax relief on equipment, vehicles and machinery. This guide explains the £1 million Annual Investment Allowance, full expensing, the new 40 percent first year allowance, writing down allowances at the reduced 14 percent rate, and what the 2026 changes really mean for your tax bill.
The Construction Industry Scheme (CIS) makes contractors deduct tax from what they pay subcontractors. This guide explains how CIS works, the 20 and 30 percent deduction rates, gross payment status, monthly returns, refunds and the VAT reverse charge. A plain English guide from IAK Accountants.
A P45 is the form you get when you leave a job, and it decides how much tax comes out of your next pay packet. This guide explains what a P45 shows, its four parts, what to do if you lose one, and how it differs from a P60 and a P11D. A plain English guide from IAK Accountants.
Your tax code tells your employer how much tax to take from your pay. This guide explains what the numbers and letters mean, decodes 1257L, BR, D0, K and 0T, covers emergency codes, and shows how to check yours and fix it if it is wrong. A plain English guide from IAK Accountants.
A clear UK guide to Self Assessment. We explain what a Self Assessment tax return is, who has to file one, what a UTR number is, how to register, the key deadlines, the penalties for filing late, and how Making Tax Digital is about to change the whole system.
A clear UK guide to bank reconciliation. We explain what a bank reconciliation is, why your books and your bank statement rarely match, the reconciling items to look for, a worked example of a bank reconciliation statement, and why reconciling in Xero is not quite the same thing.
A clear UK guide to the general ledger. We explain what a general ledger is, why it is called the nominal ledger here, how the chart of accounts organises it, how sub-ledgers and control accounts fit in, a worked example, and what the ledger really means now bookkeeping lives in software.
A clear UK guide to purchase orders. We explain what a purchase order is, what a PO must show, the purchase order number, the four main types, how a PO differs from an invoice and a requisition, the full purchase order process, and how a PO is treated in your bookkeeping.
IR35 is the set of rules that decides whether a contractor working through their own company is genuinely in business or really a disguised employee. This guide explains what inside and outside IR35 mean, the status tests HMRC uses, who is responsible after the 2021 reform, and how to protect yourself. A plain English guide from IAK Accountants.
Making Tax Digital in plain English. What MTD is, who it affects, the £50,000 income tax threshold from April 2026, quarterly update deadlines, the final declaration, and how to prepare.
National Insurance is a tax on earnings that also builds your entitlement to the State Pension and some benefits. This guide explains the four classes, the 2026/27 rates and thresholds, how much you pay as an employee or self employed, voluntary contributions and qualifying years. A plain English guide from IAK Accountants.
Capital Gains Tax is the tax you pay on the profit when you sell an asset that has gone up in value. This guide explains the rates, the tax-free allowance, what you pay it on, the 60-day property rule and how to keep the bill down legally. A plain English guide from IAK Accountants.
PAYE is how HMRC collects Income Tax and National Insurance from your wages before you are paid. This guide explains how Pay As You Earn works, what your tax code means, emergency tax, your PAYE reference number and what employers have to do. A plain English guide from IAK Accountants.
An accountant does far more than file your tax return. This plain English guide explains what an accountant actually does day to day, the difference between an accountant and a bookkeeper, whether you need one as a sole trader or limited company, and what it really costs. From IAK Accountants.
Corporation tax is the tax a UK limited company pays on its profits. This guide explains the rates, how the bill is worked out, marginal relief, deadlines, allowable expenses and how to keep the bill down legally. A plain English guide from IAK Accountants.
Payments on account are advance Self Assessment payments made in two instalments on 31 January and 31 July. Here is how they are worked out, who has to pay them, how to reduce them safely and what to do if you cannot afford one. A plain English guide from IAK Accountants.
What a director's loan account is, the rules for taking money out, the s455 tax charge on an overdrawn account (now 35.75%) and how to stay on the right side of HMRC. A plain English guide from IAK Accountants.
VAT explained for UK business owners: what value added tax is, how it works, the current rates and £90,000 threshold, input vs output VAT, VAT numbers, and when you have to register.
Amortisation explained for UK businesses: how it spreads the cost of intangible assets, how it differs from depreciation, the FRS 102 rules, worked examples, and the separate loan meaning.
What a dividend is, how dividends work, and the UK dividend tax rates and allowance for 2026/27. Includes a worked example and the rules companies must follow, from IAK Accountants.
A clear UK guide to goodwill in accounting. We explain what goodwill is, how to calculate it, why it only appears when one business buys another, how it sits on the balance sheet, the difference between amortisation under FRS 102 and impairment under IFRS, what negative goodwill means, and how goodwill is treated for corporation tax.
A clear UK guide to invoices. We explain what an invoice is, what every invoice must show, what an invoice number is for, how an invoice differs from a receipt, a bill, a quote and a proforma invoice, the VAT invoice rules HMRC expects, and how an invoice lands in your accounts.
A clear UK guide to credit notes. We explain what a credit note is, when to issue one, how it differs from an invoice, a refund and a debit note, the VAT rules HMRC expects you to follow, and how to record it in your books.
A plain English UK guide to the P11D form. We explain what a P11D is, which benefits in kind go on it, the 6 July 2026 deadline, Class 1A National Insurance, the penalties for filing late, and why 2025/26 is the last normal P11D year before payrolling becomes compulsory.
A plain English UK guide to sole trader vs limited company. We compare tax, liability, admin, privacy and credibility, show when incorporating actually pays off, and explain how to change from sole trader to limited company.
A clear UK guide to the trial balance: what it is, why bookkeepers prepare one, the debit and credit format, a full worked example, the errors it will and will not catch, and how a suspense account is used when it does not balance.
Double entry bookkeeping explained in plain English: the accounting equation it rests on, the rules for debits and credits, the five account types, T-accounts and the trial balance, plus several worked examples showing how every transaction is recorded twice.
EBITDA explained in plain English for UK business owners: what the acronym stands for, the formula, a worked example, how to calculate it from your accounts, what EBITDA margin and adjusted EBITDA mean, and where the figure helps and where it quietly misleads.
Net profit margin in plain English for UK businesses: the formula, a worked example, how it differs from gross and operating margin, what a healthy net margin actually looks like by sector, and why a thin net margin is a warning even when sales are growing.
Gross margin in plain English for UK businesses: the formula, how it differs from gross profit, the markup versus margin trap that wrecks pricing, a worked example, and what a healthy gross margin actually looks like by industry.
Management accounting explained for UK business owners: what it is, how it differs from financial accounting, what goes into a set of management accounts, and why monthly numbers beat year-end ones for running a business.
The UK tax year 2026/27 runs from 6 April 2026 to 5 April 2027. Here are the tax year dates, Self Assessment deadlines, and the rates and allowances that apply.
Overheads explained for UK business owners: what counts as an overhead, how they differ from direct costs, fixed versus variable overheads, a worked example, how to calculate an overhead rate, and practical ways to cut them.
Retained earnings explained for UK company directors: what they are, the formula, a worked example, why they are not the same as cash, and the legal reason they decide how much dividend you can take.
The cash flow statement explained for UK business owners: the three sections, a worked example, the difference between the direct and indirect method, and why profit and cash are never the same number.
Net income is one of the most overloaded terms in finance. It means take-home pay for a person, profit after everything for a company, and something different again to HMRC. This guide untangles all three, with formulas, a worked example, and how net income differs from gross income.
What fixed costs and variable costs really are, with clear examples, where semi-variable costs fit, why rent is usually fixed but not always, and how the split between the two decides your break-even point and how risky your business is.
Gross profit, operating profit and net profit explained in plain English, with a worked example down the profit and loss account, what sits in each gap, and why a healthy gross margin can still end in a net loss.
Fixed assets explained for UK business owners: a clear definition, tangible vs intangible, fixed vs current assets, real examples, how they sit on the balance sheet, why land does not depreciate, and the asset register most small firms ignore.
Working capital explained for UK business owners: the formula, a worked example, the working capital cycle, why a profitable business can still run out of cash, and how to free up trapped money.
Accruals and prepayments explained for UK business owners: what they are, the difference between them, worked examples with journal entries, where they sit on the balance sheet, and how the accruals basis differs from cash accounting.
A clear UK guide to the balance sheet: the accounting equation, fixed and current assets, current and long-term liabilities, equity, net assets, a worked example, and what the numbers actually tell you.
A plain English UK tax guide for influencers and content creators: when your income becomes taxable, why gifted products count, allowable expenses, VAT, and the platform data HMRC now receives.
Depreciation explained in plain English for UK businesses: methods, worked examples, why land does not depreciate, and how it differs from HMRC capital allowances.
Trade receivables explained for UK businesses: definition, examples, balance sheet treatment, days outstanding formula, and how to manage late payers.
How to handle bookkeeping, tax, and VAT for UK websites earning through display ads. Practical guidance from IAK Accountants for site owners and developers.
What bookkeeping is, what a bookkeeper does day to day, single-entry vs double-entry explained with a worked example, the records HMRC requires you to keep, and how a bookkeeper differs from an accountant.
Discover the tax advantages and lifestyle benefits of relocating to Cyprus. Learn about the non-dom regime, corporate tax rates, and quality of life improvements.
Understand directors remuneration in the UK: what it includes (salary, dividends, benefits), tax implications (PAYE, NI, CT), and disclosure rules. Explained by IAK Accountants.
Learn how to value a business using common methods like asset-based, market-based, and income-based approaches. Detailed guide by IAK Accountants.
Explore pathways to becoming a qualified accountant in the UK without a university degree. Learn about AAT, apprenticeships, and professional bodies with IAK Accountants.
Sales Revenue = Units Sold x Price Per Unit. Learn how to calculate sales revenue with worked UK examples, the gross vs net difference, and the VAT mistake to avoid.
Understand the difference and similarities between turnover and revenue in UK accounting terminology. Clear explanation by IAK Accountants.
What are trade payables and how do they differ from accounts payable and accruals? A plain English guide for UK businesses, with the creditor days formula and a worked example.
Learn how to calculate percentage uncertainty, understand its importance in business and science, and see practical examples. Comprehensive guide by IAK Accountants.
What revenue means in business: the top line of your profit and loss, gross vs net revenue, the six main types, and when revenue is recognised under UK accounting rules.