Tax & Accounting Consultancy · United KingdomSole trader or limited company, which VAT scheme, how to pay yourself: questions worth answering with your own figures.
We advise UK business owners on the tax and accounting decisions that shape the year ahead, set out the options in writing, and tell you when a solicitor or specialist should be involved.
Accounting
At a glance
- Authorities
- HM Revenue & Customs (HMRC) · Companies House
- Forms & references
- CT600SA100VAT1
- Format
- Advisory calls, written summaries or scoped projects
- Common topics
- Incorporation, salary and dividends, VAT schemes, MTD readiness
- Cross-border
- UK businesses with links to the US and Pakistan
- Legal work
- Referred to a solicitor where needed
Overview
What it is, and why it matters.
Consultancy is where we step back from the monthly records and look at the decisions behind them: how the business is structured, how you take money out of it, which VAT scheme suits it, and if your records are ready for what HMRC now expects.
Some questions come up again and again. Should I incorporate? What mix of salary and dividends makes sense this year? When will MTD for Income Tax apply to me? Is the flat rate VAT scheme still worth it? Each depends on your figures and on rates that change most years, so we answer with current numbers rather than rules of thumb.
We also help owners whose business crosses borders: a founder in Pakistan running a UK company, a UK company invoicing US clients, or a UK resident who owns a US LLC. These raise questions about company residence, VAT on cross-border services and how each country taxes the same income. We explain the UK side and say when advice from the other country is needed.
Who needs it
Who typically needs it.
- 01
Sole traders thinking about incorporating
Self-employed people weighing the tax and administration of a limited company against staying as they are.
- 02
Directors planning how to pay themselves
Owner-managers working out salary, dividends and pension contributions for the coming tax year.
- 03
Businesses near the VAT threshold
Owners approaching £90,000 of taxable turnover (at the time of writing) who want to plan registration, pricing and scheme choice.
- 04
Overseas founders of UK companies
Directors based in Pakistan, the US or elsewhere who need to understand UK corporation tax, company residence and filing duties.
- 05
Businesses with a backlog
Companies with late accounts, missed VAT returns or years of unreconciled books who need a realistic order of work.
When you need it
The moments that usually trigger it.
- Your self-employed profit has grown and someone has suggested a limited company.
- A new tax year is starting and you haven’t planned salary and dividends.
- Your turnover is getting close to the VAT registration threshold.
- You’re moving abroad, or already managing your UK company from abroad.
- You’ve had a letter from HMRC or Companies House about missing filings.
- You’re about to invoice your first US client and aren’t sure how VAT applies.
Scope
Exactly what we handle.
Our engagement letter lists these specifically, so you know what is included before any work begins.
- 01
Sole trader versus limited company comparisons based on your actual profits.
- 02
Salary, dividend and pension contribution planning for director-shareholders.
- 03
VAT registration timing and scheme choice: standard, flat rate, cash accounting or annual accounting.
- 04
MTD for Income Tax readiness reviews for sole traders and landlords.
- 05
Cross-border questions such as overseas directors, UK VAT on services to US or Pakistani clients and UK residents with US LLCs, covered on the UK side with specialist referral where needed.
- 06
Clean-up plans for late accounts, VAT returns and unreconciled records.
- 07
Accounting policy questions, such as revenue recognition and the 2026 FRS 102 changes.
The process
How it runs, step by step.
Timings depend on the authority and on how quickly documents come together. We tell you what’s typical for your case at the start.
Start with a conversationInitial conversation
You tell us what you’re deciding and by when. We confirm whether it is a tax or accounting question we can help with, or one for a solicitor or other specialist.
Information gathering
We ask for your latest accounts and tax returns, your VAT position and the figures that matter to the decision.
Options and numbers
We model the realistic options with current rates and thresholds, and set out the filings and deadlines each would involve.
Advice in writing
You receive a concise summary with our recommendation and the assumptions behind it.
Putting it into practice
If you go ahead, we can handle the incorporation, registrations and ongoing work, or pass the plan to your existing advisers.
What we’ll need
The information to have ready.
A typical checklist. After the first conversation we send a version specific to your situation, so you don’t gather anything you don’t need.
About you
- UTR and National Insurance number, if you are an individual taxpayer
- Country of residence, and any periods spent living outside the UK
- Other income, such as employment or property income
About the business
- Company number or sole trader details
- Latest accounts and tax returns
- VAT registration status and scheme
For cross-border questions
- Where the directors live and where board decisions are made
- Details of overseas companies, owners or customers
- Any letters from HMRC or overseas tax authorities
Please don’t email passports or bank statements. Once we’ve spoken, you’ll get access to a secure upload.
Common mistakes
Where this usually goes wrong.
The problems we are most often asked to fix, and what they tend to cost.
- Mistake 01
Incorporating for tax reasons alone
The tax gap between sole trader and company has narrowed as corporation tax and dividend tax rates have changed. Incorporating without modelling the numbers can mean more administration for little saving.
- Mistake 02
Taking dividends without checking reserves
Dividends must come from distributable profits. Paying them from money the company doesn’t have can leave an overdrawn director’s loan account and a tax charge.
- Mistake 03
Assuming a UK company run from abroad is taxed only in the UK
A company incorporated here is UK resident, but if it is centrally managed and controlled from another country it may be resident there too, with a tax treaty deciding the outcome. Directors in Pakistan should take advice early.
- Mistake 04
Charging UK VAT on services to overseas business clients
Many business-to-business services supplied to customers outside the UK are outside the scope of UK VAT and need different invoice wording. Charging VAT that isn’t due makes you less competitive and has to be corrected.
Worth knowing
The limits, stated upfront.
We provide tax and accounting advice, not legal advice. Shareholder agreements, share reorganisations and disputes need a solicitor.
Tax in the US or Pakistan is covered at a general level; confirm the position with a qualified adviser in that country before acting.
Rates, allowances and thresholds change with each Budget, and our advice reflects the position on the date we give it.
Complex residence, trust or inheritance tax questions may need a specialist, and we will tell you if so.
Questions
Tax & Accounting Consultancy: frequently asked.
If yours isn’t here, ask us directly. We’ll answer in plain terms.
Ask a questionShould I become a limited company?
It depends on your profit, how much you need to draw, and how you weigh limited liability against extra administration. The tax difference is smaller than it used to be, so we compare both routes on your figures and current rates.
What is the most tax-efficient salary for a company director?
There isn’t one figure for everyone. It depends on the National Insurance thresholds, whether the company can claim the Employment Allowance, your other income and that year’s dividend rates, so we work it out for each tax year.
I live in Pakistan. Can I run a UK limited company?
Yes. A UK company can have directors who live abroad, and it is UK resident for tax because it was incorporated here. If it is managed from Pakistan it may also be treated as resident there, so the UK–Pakistan tax treaty needs to be considered. Directors must also verify their identity with Companies House.
Do I charge VAT to my US clients?
Usually not for business-to-business services, which are generally treated as supplied where the customer belongs and so fall outside the scope of UK VAT. There are exceptions, such as services relating to UK land, so we check your specific services before you invoice.
I’m a UK resident and I own a US LLC. Is that a problem?
Not necessarily, but it needs care. HMRC’s view of a US LLC can differ from the IRS’s, which affects how profits are taxed in the UK and whether US tax can be credited. We outline the issues and recommend specialist confirmation.
Can you help with a backlog of late accounts and returns?
Yes. We start by reviewing what is outstanding and which penalties may already apply, then agree a sequence so the most time-sensitive filings go first.
Related
Often needed alongside this.
The equivalent in our other countries
Speak with a consultant
Talk to us about tax & Accounting Consultancy.
Pick the closest match and we’ll take it from there. You’ll get a written scope and fee before any work begins.
Or use our three-step guide, or email hello@fiscorra.com
