Accounting and Tax Guides for UK Business Owners

95 plain-English guides written by the IAK team on tax, payroll, bookkeeping, company compliance and the numbers behind a healthy business. No jargon, current UK rules, and a clear next step.

Most of these guides start with a question a client actually asked us: what is a P11D, is turnover the same as revenue, can I pay a dividend if the company made a loss. Each one explains the rule, shows a worked example with real figures, and finishes with what to do about it. Where a calculation is involved we usually link to one of our free calculators.

Everything is written for the UK, updated for the current tax year, and reviewed by a qualified accountant. It is general guidance, not advice on your own position. If you want that, book a free 30-minute review.

UK Tax Explained

Plain-English guides to VAT, corporation tax, self assessment, capital gains, inheritance tax, Making Tax Digital and the reliefs that reduce what you pay.

Date: 21/09/2026

Cash Basis Accounting vs Traditional Accounting: Which One Are You Actually On?

Since 6 April 2024 the cash basis has been the default way sole traders and partnerships work out taxable profit, and the turnover limit that used to cap it has gone. Most people moved onto it without deciding to. Here is what the cash basis does to your tax bill, when traditional accounting is still the better answer, and how to get off it.

Date: 18/09/2026

Working From Home Tax Relief in 2026/27: The Employee Claim Has Gone, the Others Have Not

From 6 April 2026 employees can no longer claim the £6 a week working from home allowance on their tax return. The self-employed use of home as office deduction survives, so does the employer-paid homeworking allowance, and both are now worth more than the thing that was removed. Here is what applies to you and what to do about it.

Date: 17/09/2026

SEIS and EIS Tax Relief: The 2026/27 Guide for Investors and Founders

SEIS gives 50 percent income tax relief, EIS gives 30 percent, and from 6 April 2026 the EIS company limits doubled while SEIS was left exactly where it was. This guide covers both schemes for investors and founders, the reliefs that matter more than the headline rate, and the advance assurance squeeze that is now the real bottleneck.

Date: 16/09/2026

Business Asset Disposal Relief (BADR) Explained

Business Asset Disposal Relief cuts the Capital Gains Tax rate on a qualifying business sale to 18 percent for 2026/27. The lifetime limit is still the headline number, and it is the one thing that has not changed. This guide covers who qualifies, the three 5 percent tests, the two year clock, the trading company trap that catches cash-rich companies, and what the relief is actually worth now.

Date: 15/09/2026

Reverse Charge VAT Explained

Reverse charge VAT moves the job of paying VAT from the supplier to the customer. There are two versions in the UK and they behave differently on the VAT return. This guide covers the construction domestic reverse charge, the reverse charge on services bought from abroad, the cash flow hit that nobody costed, and the flat rate scheme trap that is still costing subcontractors money.

Date: 14/09/2026

The Rent a Room Scheme Explained: £7,500 Tax Free, and What It Actually Costs You

The Rent a Room Scheme lets you earn £7,500 a year tax free from a lodger. This guide covers the gross receipts test, Method A versus Method B, the election deadline almost nobody meets, the council tax discount you quietly lose, and why the average UK room now breaks the threshold.

Date: 11/09/2026

Tax on Rental Income: A Landlord's Guide for 2026/27

Landlords are taxed on a profit figure that ignores their mortgage, and from April 2027 property income gets its own set of rates at 22, 42 and 47 percent. Here is how the calculation actually works, what you can deduct, and the thresholds that catch people out.

Date: 11/09/2026

The £1,000 Trading Allowance Explained (2026/27)

The trading allowance is £1,000 of gross income, not profit, and it has not moved since 2017. The £3,000 figure in the headlines is a reporting threshold, not a tax free amount. Here is the difference, and why claiming the allowance is sometimes the wrong move.

Date: 09/09/2026

The VAT Flat Rate Scheme: Is It Still Worth It?

The flat rate scheme lets you pay HMRC a fixed percentage of your gross takings instead of tracking input VAT. Since the 16.5 percent limited cost rule arrived in 2017 it has stopped working for most service businesses, and the joining threshold has been frozen since 2003. Here is the arithmetic.

Date: 05/08/2026

HMRC Mileage Rates 2026/27: The 55p Rate Explained

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.

Date: 04/08/2026

What Are Business Rates? The 2026 Changes Explained

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.

Date: 30/07/2026

R&D Tax Credits Explained: The UK Rules in 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.

Date: 29/07/2026

What Is Inheritance Tax? UK Thresholds, Rates and Reliefs for 2026/27

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.

Date: 27/07/2026

What Are Capital Allowances? A UK Guide for 2026 and Beyond

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.

Date: 23/07/2026

What Is the Construction Industry Scheme (CIS)? A Plain English Guide

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.

Date: 21/07/2026

UK Tax Codes Explained: What Your Tax Code Means in 2026/27

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.

Date: 20/07/2026

What Is a Self Assessment Tax Return? A Plain English UK Guide

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.

Date: 13/07/2026

What Is IR35? The Off Payroll Rules Explained

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.

Date: 10/07/2026

Making Tax Digital Explained: What It Means for Income Tax and VAT

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.

Date: 09/07/2026

What Is National Insurance? A Plain English Guide

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.

Date: 08/07/2026

What Is Capital Gains Tax? A Plain English UK Guide

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.

Date: 03/07/2026

What Is Corporation Tax? A Plain English UK Guide

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.

Date: 02/07/2026

What Is a Payment on Account? Self Assessment Explained

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.

Date: 30/06/2026

What Is VAT? A Plain English Guide for UK Businesses

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.

Date: 10/06/2026

UK Tax Year 2026/27: Key Dates and Deadlines

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.

Running a Limited Company

Directors’ duties, dividends, loan accounts, Companies House filings, dormant companies and what happens when you close or strike off a company.

Date: 08/09/2026

Companies House Late Filing Penalties: A Reality Check

Companies House issued 317,985 late filing penalties in a single year and cancelled about 3 in every 100. The penalty bands are the easy part. The parts that cost real money are the doubling rule, the fact that the penalty is not tax deductible, and the one legitimate lever that stops working the moment you actually need it.

Date: 04/09/2026

Called Up Share Capital Not Paid: The Box Nobody Explains

It is the first line on a UK company balance sheet, it sits above fixed assets, and most directors have no idea what to put in it. Here is what called up share capital not paid actually means, what the number should be for a normal £1 company, and why leaving it unpaid is a personal liability rather than a formatting choice.

Date: 03/09/2026

First Gazette Notice for Compulsory Strike Off: What It Means and How to Stop It

A first Gazette notice means the registrar intends to strike your company off, usually in two months. It is stoppable, and in most cases it is stoppable for the price of the filings you already owe. Here is why it happened, exactly how long you have, how to get the action discontinued, how creditors object, and what it costs if you let it run.

Date: 02/09/2026

Micro-Entity Accounts: What You File, and What You Give Up

A UK company can file micro-entity accounts if it meets two of three tests: turnover of £1 million or less, a balance sheet total of £500,000 or less, and 10 employees or fewer. Those limits changed on 6 April 2025, and a lot of the guidance online still quotes the old ones. Here is who qualifies, what FRS 105 actually lets you do, the difference between abridged and filleted accounts, and why the cheapest set of accounts is not always the cheapest decision.

Date: 01/09/2026

Audit Thresholds Explained: Does Your Company Actually Need One?

The audit threshold rose by roughly 50% for financial years beginning on or after 6 April 2025. A UK company is now exempt from statutory audit if it meets two of three tests: turnover under £15 million, gross assets under £7.5 million, and 50 or fewer employees. Here is how the size tests work, the two year rule, the group traps, and why dropping an audit you already have is a commercial decision rather than a compliance one.

Date: 27/08/2026

How to Close a Limited Company: Strike Off, DS01 and the Tax Decision Most People Get Backwards

Closing a limited company costs £13 and takes about three months. Getting the money out of it beforehand is the part that costs thousands if you do it in the wrong order. This guide covers the DS01 strike off route in full, the closing down checklist, the £25,000 rule that is a cliff edge rather than an allowance, where the real break even against a liquidation sits, and the things dissolution does not end.

Date: 26/08/2026

What Is a Dormant Company? The Two Definitions That Do Not Match, and What Dormancy Really Costs Now

Dormant is not one status. Companies House and HMRC run two separate tests with two separate meanings, and a company can easily be dormant for one and active for the other. Here is what each test actually says, what breaks dormancy without any trading happening, everything a dormant company still has to file, and why the cost of holding a shell company changed in 2026.

Date: 31/07/2026

What Is a Confirmation Statement? The Companies House Rules in 2026

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.

Date: 06/07/2026

What Does an Accountant Do? A Plain English Guide

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.

Date: 01/07/2026

Director's Loan Account Explained: Rules, s455 Tax and Overdrawn DLAs

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.

Date: 26/06/2026

What Is a Dividend? UK Dividend Tax Rates and Rules for 2026/27

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.

Date: 19/06/2026

Sole Trader vs Limited Company: Which Is Right for You in 2026?

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.

Date: 18/07/2025

What is Directors' Remuneration? A UK Guide for Companies

Understand directors remuneration in the UK: what it includes (salary, dividends, benefits), tax implications (PAYE, NI, CT), and disclosure rules. Explained by IAK Accountants.

Payroll, PAYE and Employment

PAYE, P45s, P60s, P11Ds, statutory pay, auto-enrolment pensions, salary sacrifice and company car tax for employers and employees.

Date: 07/09/2026

Trivial Benefits: The £50 Rule and the £300 Director Cap

Trivial benefits let a company hand an employee up to £50 of value with no tax, no National Insurance and nothing to report. Directors of close companies get up to £300 a year of it. The rules are short, the traps are not obvious, and the £50 is a cliff edge rather than a discount.

Date: 17/08/2026

Workplace Pensions and Auto Enrolment: The 2026/27 Rules Explained

Everyone quotes the eight percent. Almost nobody explains that it is eight percent of a slice of your pay rather than all of it, which is why a worker on £30,000 sees 6.3 percent go in and a worker on £10,000 sees 3 percent. This guide covers the 2026/27 thresholds, the three worker categories, tax relief, opt outs, re-enrolment and what employers are legally on the hook for.

Date: 14/08/2026

Company Car Tax Explained: BIK Rates for 2026/27

A company car is taxed on a percentage of its list price, and that percentage runs from 4 percent to 37 percent depending on emissions. This guide covers the 2026/27 rates, worked examples for electric and petrol cars, the 50g/km cliff edge, the hybrid rate jump landing in April 2028, and the payroll change arriving next April.

Date: 12/08/2026

What Is a P60? Every Box on the End of Year Certificate Explained

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.

Date: 11/08/2026

Employment Allowance 2026/27: Who Can Claim the £10,500 and Where It Runs Out

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.

Date: 10/08/2026

Statutory Redundancy Pay 2026/27: Rates, Tax and the Real Cost to Employers

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.

Date: 07/08/2026

Statutory Maternity Pay 2026/27: Rates, Rules and What It Really Costs

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.

Date: 06/08/2026

Statutory Sick Pay 2026/27: The New Rules Explained

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.

Date: 28/07/2026

What Is Salary Sacrifice? A UK Guide for Employees and Employers

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.

Date: 22/07/2026

What Is a P45? The UK Leaver Form Explained (Plus P45 vs P60)

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.

Date: 07/07/2026

What Is PAYE? A Plain English Guide to Pay As You Earn

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.

Date: 22/06/2026

What Is a P11D? The 2025/26 Deadline, Benefits in Kind and What Employers Must File

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.

Bookkeeping Basics

Double entry, the trial balance, chart of accounts, invoices, credit notes, reconciliations, accruals and the other building blocks of tidy books.

Date: 31/08/2026

Deferred Income Explained: The Money in Your Bank That Is Not Yours Yet

Deferred income is cash a customer has paid you for work you have not done. It is a liability, not revenue, and it is the line most often got wrong in small company accounts. Here is what it is, the double entry, the VAT trap that catches annual billers, and what the new FRS 102 five step revenue model does to it from January 2026.

Date: 25/08/2026

What Is a Chart of Accounts? Nominal Codes, Numbering, and Why the Internet's Version Does Not Match Your Software

A chart of accounts is the list of every account your bookkeeping can post to, and it quietly decides what your accounts are capable of telling you. Here is what one is, why UK software calls them nominal codes, why the numbering every online guide teaches is wrong for Sage and Xero, and how to design one backwards from what you actually have to file.

Date: 24/08/2026

The Accounting Equation: What It Is, Why UK Accounts Rearrange It, and Why Balancing Proves Almost Nothing

Assets = Liabilities + Equity is the rule every set of books obeys. It is also the most over-taught and under-used idea in accounting, because software now enforces it automatically, UK statutory accounts present it rearranged so it is hard to spot, and a set of books can balance perfectly while being completely wrong.

Date: 17/07/2026

What Is a Bank Reconciliation? A Plain English Guide for UK Businesses

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.

Date: 16/07/2026

What Is a General Ledger? A Plain English Guide for UK Businesses

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.

Date: 15/07/2026

What Is a Purchase Order? A Plain English Guide for UK Businesses

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.

Date: 24/06/2026

What Is an Invoice? A Plain English Guide for UK Businesses

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.

Date: 23/06/2026

What Is a Credit Note? A Plain English Guide for UK Businesses

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.

Date: 18/06/2026

What Is a Trial Balance? A Plain English Guide With an Example

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.

Date: 17/06/2026

Double Entry Bookkeeping Explained, With Worked Examples

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.

Date: 31/05/2026

Accruals and Prepayments Explained: A Plain English UK Guide

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.

Date: 27/05/2026

What Are Trade Receivables? A UK Guide for Business Owners

Trade receivables explained for UK businesses: definition, examples, balance sheet treatment, days outstanding formula, and how to manage late payers.

Date: 28/07/2025

What Is Bookkeeping and What Does a Bookkeeper Do?

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.

Date: 30/04/2025

What Are Trade Payables? A Clear Explanation for UK Businesses

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.

Financial Statements and Business Metrics

Balance sheets, profit and loss, cash flow, margins, EBITDA, break-even and the ratios that show whether a business is actually making money.

Date: 22/09/2026

What Is the Current Ratio? Formula, Worked Example and What Good Actually Looks Like

Current assets divided by current liabilities. The formula takes ten seconds, and almost everything useful about the number is in what happens next. Here is how to calculate it from a UK balance sheet, why the famous 2:1 rule of thumb is mostly folklore, and why Tesco runs at 0.59 while Persimmon runs at 3.99 and both are fine.

Date: 28/08/2026

Finance Lease vs Operating Lease: The Difference, and Why Half of It Disappeared in 2026

The split between finance leases and operating leases decided whether an asset appeared on your balance sheet at all. From accounting periods beginning on or after 1 January 2026, that choice is gone for lessees under FRS 102. Here is what each type actually is, how to tell them apart, what the new Section 20 does to your accounts, and the knock-on effects on covenants, dividends and tax that nobody puts in the budget.

Date: 21/08/2026

Cash Flow Forecasting: How to Build One, and Why the Number That Matters Is the Lowest Point, Not the Last

A cash flow forecast predicts the money moving through your bank account, not the profit in your accounts. Most of them are wrong for the same three reasons: the timing is assumed rather than measured, the lumps get flattened into averages, and nobody ever checks last month's forecast against what actually happened.

Date: 20/08/2026

Break-Even Analysis: The Formula, the Chart, and Why Your Real Break-Even Is Higher Than the One You Calculated

Break-even is the level of sales where you make neither a profit nor a loss. The formula takes thirty seconds. The problem is that the textbook version ignores loan repayments, tax, the money you live on and the way your sales mix drifts, which is why most owners are trading below a break-even they think they cleared months ago.

Date: 18/08/2026

What Is Cost of Sales? The Formula, What Goes In, and the Stock Trap That Invents Profit

Cost of sales is the second line of most UK profit and loss accounts and the one most likely to be wrong. Here is the formula, what belongs in it, why a miscounted stocktake creates profit that does not exist, and why nobody can legally tell you what the line should contain.

Date: 13/08/2026

What Is a Profit and Loss Account? The UK P&L Explained

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.

Date: 29/06/2026

What Is Amortisation? A Plain English UK Guide for Business Owners

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.

Date: 25/06/2026

What Is Goodwill in Accounting? A Plain English UK Guide

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.

Date: 16/06/2026

What Is EBITDA? Meaning, Formula and a Worked Example

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.

Date: 15/06/2026

Net Profit Margin Explained: The Formula, a Worked Example and What Good Looks Like

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.

Date: 12/06/2026

Gross Margin Explained: The Formula, a Worked Example and What Counts as Good

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.

Date: 11/06/2026

What Is Management Accounting? A Plain English Guide for Business Owners

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.

Date: 10/06/2026

What Are Overheads? A Plain English Guide to Business Overhead Costs

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.

Date: 09/06/2026

What Are Retained Earnings? A Plain English Guide for UK Companies

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.

Date: 08/06/2026

What Is a Cash Flow Statement? A Plain English Guide for UK Businesses

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.

Date: 05/06/2026

What Is Net Income? A Plain English Guide for the UK

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.

Date: 04/06/2026

Fixed Costs vs Variable Costs: A Plain English Guide for UK Businesses

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.

Date: 03/06/2026

Gross Profit vs Net Profit: The Difference Explained for UK Businesses

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.

Date: 02/06/2026

What Are Fixed Assets? A Plain English Guide for UK Businesses

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.

Date: 01/06/2026

What Is Working Capital? A Plain English Guide for UK Businesses

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.

Date: 30/05/2026

What Is a Balance Sheet? A Plain-English UK Guide

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.

Date: 28/05/2026

What Is Depreciation? A UK Guide to Spreading the Cost of Fixed Assets

Depreciation explained in plain English for UK businesses: methods, worked examples, why land does not depreciate, and how it differs from HMRC capital allowances.

Date: 30/04/2025

How Do You Value a Business? A Comprehensive Guide for UK Owners

Learn how to value a business using common methods like asset-based, market-based, and income-based approaches. Detailed guide by IAK Accountants.

Date: 30/04/2025

How to Work Out Sales Revenue: Formula, Examples and Common Mistakes

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.

Date: 30/04/2025

Is Turnover the Same as Revenue? Clearing Up the Confusion

Understand the difference and similarities between turnover and revenue in UK accounting terminology. Clear explanation by IAK Accountants.

Date: 29/04/2025

What Is Revenue in Business? Meaning, Types and Examples

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.

Guides for Specific Situations

Longer reads on niche topics, from creator and affiliate income to relocating abroad and careers in accountancy.

Date: 29/05/2026

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