Running a small business in Manchester comes with opportunity—but also financial responsibility. Whether you're a sole trader or a limited company, knowing how to stay compliant while remaining profitable is essential. Here are five key accounting insights that can make a real difference in 2025.
1. Separate Personal and Business Finances
Mixing personal and business finances is a common mistake that can lead to confusion and compliance issues with HMRC. Open a dedicated business bank account and track all transactions with accounting software such as Xero or QuickBooks.
Tip: Work with an AAT-licensed accountant to ensure your records are accurate and audit-ready.
2. Master Your VAT Thresholds
The VAT registration threshold in the UK is currently £90,000 over any rolling 12-month period—not just the tax year. Many startups miss this point and end up facing penalties for late registration.
Pro Tip: Use MTD-compliant tools to monitor turnover in real time and receive alerts.
3. Understand Corporation Tax Deadlines
If you operate a limited company, your Corporation Tax payment is due 9 months and 1 day after your year-end. Missing the deadline can result in interest charges and penalties from HMRC.
Solution: Set reminders in your calendar or speak to an accountant to help manage filing and payment.
4. Claim All Allowable Expenses
Many small businesses fail to claim the full range of allowable business expenses. Whether it's home office costs, business travel, or marketing, these expenses reduce your taxable profit.
Example: If you use a home office for business, a portion of your utilities and rent may be deductible.
5. Consider Cloud-Based Payroll
Even if you’re the only employee, setting up a compliant payroll system is a smart move. Cloud payroll platforms ensure you're meeting obligations like Real-Time Information (RTI) submissions and pension auto-enrolment.
Recommended: Xero Payroll, BrightPay or similar cloud-based tools for ease of use and compliance.
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At Accounting Monton Village, we support businesses like yours every step of the way — from bookkeeping to VAT and payroll compliance.