Frequently Asked Questions

Making Tax Digital (MTD) is HMRC’s plan to move tax fully online.
Already in place: VAT-registered businesses must use MTD software for VAT returns.
From 6th April 2025: Self-employed individuals and landlords with income over £50,000 must keep digital records and submit quarterly updates.
From 6th April 2026: The threshold lowers to £30,000.
HMRC’s longer-term plan is to extend this to those with income over £20,000, though no start date is yet confirmed.
This means:

- Keeping your books digitally (Excel alone won’t be enough unless bridging software is used).
- Sending quarterly income and expense updates to HMRC.
- Filing an annual end-of-period statement and final declaration through approved software.
At Baffour Accountancy, we’ll set you up on Xero (MTD-compliant software), handle the quarterly submissions, and make sure you never fall foul of HMRC’s new rules.

Very easy — we’ll handle professional clearance and collect your records directly from your previous accountant.

Book a free consultation, and we’ll guide you through onboarding: AML checks, engagement letter, HMRC authorisation, and setup on Xero. 

We work on a fixed monthly fee basis. You’ll always know your costs upfront with no hidden extras.

We’ll agree on one-off fees in advance so there are no surprises.

If you’re self-employed, a landlord, or receive untaxed income, you’ll usually need to register for Self-Assessment with HMRC. We’ll guide you through registration and filing.

If your turnover exceeds £90,000 in a 12-month rolling period (2024/25 threshold), you must register for VAT. We also advise on voluntary registration if it benefits your business. 

Dividends are taxed differently from salary and usually at lower rates. We’ll advise on the most tax-efficient split of salary, dividends, and pensions for directors.

Not fully — since April 2020, relief is given as a 20% tax credit instead of full deduction. We’ll advise whether holding property personally or through a company is more efficient. 

A CT600 must be filed 12 months after the end of your company’s accounting period. Corporation tax is payable 9 months and 1 day after year-end.