FAQs
Frequently Asked Questions Answered by Lanop Business and Tax Advisors.
At Lanop Business & Tax Advisors we design our support for UK-based small and medium enterprises (SMEs), sole traders, start-ups, and growth-stage companies that prefer a flexible, cost-effective way to outsource their finance and tax functions.
We understand that many smaller businesses face limited accounting resources and fast growth phases, so we tailor our solutions to scale with you. Whether you’re managing day-to-day bookkeeping, preparing your first VAT return or planning your tax strategy, our team adapts to your needs and helps you focus on growing your business with confidence.
If you’re starting out and expect modest profits, operating as a sole trader may suffice. But if you anticipate growing turnover, have multiple stakeholders, want limited liability, or access to certain tax-planning opportunities, forming a UK limited company could make sense.
At Lanop we’ll walk you through the pros and cons including Corporation Tax, dividends, administrative obligations and filing deadlines and recommend the right structure for you.
Whilst every business is unique, a general rule of thumb is after paying Corporation Tax and retaining funds for reinvestment. Many owner-directors in SMEs distribute a mixture of salary + dividends to optimize tax efficiency.
At Lanop we’ll provide a bespoke illustration based on your projected turnover, costs, and personal situation, giving you a realistic net “take-home” estimate.
Very straightforward. When you decide to move to Lanop, we’ll provide a clear transition plan: we’ll liaise with your current provider, collect your historical data, set up your files in our secure portal, and ensure continuity of compliance (accounts, tax, filings). We aim to minimize disruption and ensure your bookkeeping, payroll and tax deadlines stay on track.
Each Lanop package includes a tailored set of features of bookkeeping uploads, payroll processing, Self-Assessment or Corporation Tax filings, secure portal access and dedicated support. We’ll clearly outline which services are covered, any additional add-ons (e.g., VAT scheme registration, company secretarial), and ensure you know how the pricing works, so there are no surprises.
We’ll guide you through the VAT registration threshold (currently £90,000 turnover for most businesses), the different schemes available (Standard, Flat Rate, Annual Accounting, MTD-compliant digital returns), and recommend the best fit for your business. At Lanop we’ll also handle your VAT registration-if required, prepare your returns and support you with making the move to digital submission under HM Revenue & Customs.
For most UK businesses, you’re required to keep records and receipts for at least 6 years (for Corporation Tax) or 5 years for Self-Assessment after the tax year ends. At Lanop we’ll provision a secure document portal where you can upload and organize receipts, and we’ll handle the classification, filing and archive-ready retention, so you’re audit-ready and compliant.
Yes, we’ll assess your current position, coordinate any outstanding filings from your prior provider (or your own bookkeeping) and ensure that all required returns (accounts, CT600, SA100, VAT etc) are submitted correctly and on schedule. We’ll integrate your historical data into our system, so you get a seamless service from the point you join us.
We’ll work with your cadence many SMEs upload their invoices, receipts and bank feed monthly, and Lanop performs the bookkeeping and reconciliations thereafter. If you prefer more frequent input, we can accommodate weekly uploads. Our aim: minimize the admin burden for you, while keeping your financials up-to-date and ready for timely decision-making.
Yes, as a Lanop client you’ll have access to a dedicated contact or team, a secure client portal, and clear SLA (service-level agreement) response times. For urgent compliance matters, we’ve got you covered. For non-urgent, advisory or strategic questions (e.g., growth planning, tax-saving ideas), we’ll work on these within scheduled calls or via your portal messaging. We believe in proactive, predictable support rather than ad-hoc surprises.
Bookkeeping FAQs
Ideally, your books should be updated monthly to give you a clear, consistent view of your business’s financial health. By reviewing transactions each month you can monitor cash flow, spot overdue invoices, and make informed decisions about investments or cost-control.
At Lanop Business & Tax Advisors we tailor our bookkeeping schedule around your business cycle so whether you choose weekly, monthly or quarterly updates we align with your demand and growth-phase needs. Frequent updates mean less last-minute scrambles at year-end and more proactive insight into your everyday operations.
Absolutely. At Lanop Business & Tax Advisors we use secure, cloud-based systems so you don’t need to worry about physical paperwork or in-person visits. Our team will handle your data entry, bank reconciliations, and financial reports entirely remotely, which saves you time and ensures your records stay compliant with HMRC requirements.
At Lanop Business & Tax Advisors we use leading cloud-based accounting platforms such as Xero, QuickBooks, and FreeAgent depending on your business type and reporting needs. These platforms give you full access to your financial dashboard anytime, anywhere. We guide you through setup and onboarding so you feel comfortable with the system and can monitor invoices, cash flow and tax positions in real time.
Yes, absolutely. At Lanop Business & Tax Advisors we prepare clear, easy-to-read management reports that highlight your income, expenses and profit trends in a way that’s understandable.
These summaries give you the insights you need to plan effective budgets, monitor your key performance indicators and make smart financial decisions throughout the year. By regularly reviewing these reports you can spot cost pressures, identify growth opportunities and keep your business on track rather than reacting to surprises at year-end.
VAT FAQs
No, you are not legally required to register for VAT if your taxable turnover stays below the threshold of £90,000 in any rolling 12-month period. However, there are strong strategic reasons to consider voluntary VAT registration even if you haven’t hit that figure.
Voluntary registration lets you reclaim input VAT on eligible business purchases, which can improve cash-flow if you invest in equipment, software or services. It also signals a level of business maturity to larger clients or other VAT-registered companies which may favour working with VAT-registered suppliers. At Lanop Business & Tax Advisors we can help you evaluate whether voluntary registration makes sense for your industry, client-base and growth trajectory.
Our VAT return service at Lanop Business & Tax Advisors covers everything you need to stay compliant and on top of your VAT obligations. This includes registering your business for VAT, setting up your digital record-keeping system to meet the Making Tax Digital (MTD) requirements, preparing and submitting your quarterly (or more frequent if required) VAT returns to HM Revenue & Customs (HMRC), and providing ongoing monitoring and review so you never miss a deadline or overlook a reclaimable input VAT amount. We walk you through what must be included in your return, for example, your total sales, purchases, VAT owed, and VAT reclaimable.
Choosing the right VAT scheme for your business depends on several factors. At Lanop Business & Tax Advisors we will assess your annual taxable turnover, how much VAT you can reclaim on purchases and the nature of your client base before recommending whether the standard VAT accounting scheme, the flat rate scheme or the annual accounting scheme is most suitable.
For example, if you expect annual taxable turnover of £150,000 or less, you might qualify for the flat rate scheme. The annual accounting scheme can benefit businesses that want to submit one VAT return a year and have a predictable cash-flow.
Yes, at Lanop Business & Tax Advisors we fully support clients through VAT inspections and disputes with HMRC. If HMRC opens an enquiry, we will liaise directly on your behalf, provide all requested records, and engage in follow-up to resolve any issues efficiently.
We review your history of submissions, check for areas of risk (such as sudden changes in VAT claims or irregular record-keeping) and work proactively to present your position clearly and accurately. Should a dispute arise over HMRC’s findings, we help you understand the review and appeal process and advise on the best course of action, with the aim of reducing penalties and protecting your reputation.
Payroll FAQs
Yes, at Lanop Business & Tax Advisors we are fully equipped to support you if the HM Revenue & Customs queries your VAT returns or opens an inspection. We will act on your behalf, liaising with HMRC, gathering and presenting the required records, and working through any issues until a resolution is reached. Our aim is to remove the stress from your shoulders, protect your VAT standing and help you keep moving forward with confidence.
At Lanop Business & Tax Advisors we take payroll compliance very seriously. We ensure that every time you pay an employee, the required information is reported to HM Revenue & Customs (HMRC) through the Real-Time Information (RTI) system.
RTI means that your payroll software sends a Full Payment Submission (FPS) on or before each payday listing pay, tax, NI and pensions. We also check that all employee details are accurate, such as date of birth, NI number and address, because HMRC requires this level of detail in the submission. By combining RTI-enabled software, our experience and a clear review process, we help you avoid late filing, incorrect deductions and unexpected penalties.
Yes, at Lanop Business & Tax Advisors, we can fully manage your workplace pensions and auto-enrolment from start to finish. We’ll help you choose a qualifying pension scheme, determine which employees are eligible, handle the formal communications and opt-out process, manage employer pension contributions, and submit your declaration of compliance to The Pensions Regulator. We also monitor ongoing duties such as re-enrolment every three years and ensure your scheme stays aligned with the latest regulations.
When a new member joins or someone leaves your business in the middle of a pay period you simply let us know the start or end date and we adjust the payroll accordingly. We will calculate their salary on a pro rata basis reflecting the exact number of days or hours worked in that period.
We also ensure the correct deductions for tax, National Insurance and pension contributions are made and that your real-time information (RTI) submission to HM Revenue & Customs (HMRC) is filed correctly for the truncated period. This process keeps everything compliant and reduces the risk of payroll errors.
Corporation Tax & Accounts FAQs
For most UK private limited companies your annual accounts must be filed with Companies House within nine months of the end of your accounting period (your financial year‐end).
Your HM Revenue & Customs (HMRC) Corporation Tax payment is due nine months and one day after the end of your accounting period, although the tax return itself must be filed no later than twelve months after the same date. At Lanop Business & Tax Advisors we keep track of all these deadlines for our clients so you’re never caught out by late-filing penalties or unexpected tax bills.
Yes, at Lanop Business & Tax Advisors, we can help you legally reduce your Corporation Tax bill by identifying reliefs that apply to your business. For example, if your company has incurred costs on innovative projects, it may qualify for the Research & Development (R&D) Tax Relief which allows you to deduct additional expenditure beyond your normal costs. We also review your capital expenditure to ensure you benefit from the right allowances and structure your tax position proactively so that you can improve cash-flow and stay compliant.
Yes, even if your company is dormant, you still need to file annual accounts and a confirmation statement with Companies House. Dormant companies that qualify as ‘small’ may file simplified accounts rather than full trading accounts.
For HM Revenue & Customs (HMRC) purposes, if your company is entirely dormant and you’ve informed HMRC, you normally do not need to file a Corporation Tax return.
At Lanop Business & Tax Advisors we ensure the accuracy of your financial statements through a range of rigorous steps and internal controls. We begin with a full review of every transaction to check that entries are complete and correctly classified. We then reconcile all key balances (such as bank accounts, receivables and payables) so that the numbers tie back to source systems and evidence. Regular bank and ledger reconciliations are widely recognised as essential best practices for accurate reporting.
Next we apply the correct accounting framework (such as UK GAAP) so that income, assets, liabilities and disclosures follow established standards for consistency, transparency and comparability. Finally our team undertakes a formal review of the draft statements, checks complex estimates and ensuring that presentation and disclosure requirements have been met, because accurate numbers without the right presentation can still lead to misunderstandings or compliance issues.
Company Secretarial FAQs
It’s an annual filing confirming your company’s key details of directors, shareholders, registered office, and share capital. Lanop files it on your behalf to keep your company in good standing with Companies House.
Yes, absolutely. We can guide you right through the process of forming a UK limited company, from registering the business with Companies House and obtaining its Unique Taxpayer Reference (UTR), to setting up VAT and PAYE accounts and getting you ready to trade. Typically, registration online can be completed in under 24 hours.
Yes, any change of directors or shareholders must be officially updated with Companies House to keep your company’s statutory records accurate. If you appoint or remove a director, or change a shareholder structure, you must file the correct form so the public register reflects the change. At Lanop Business & Tax Advisors we will handle these filings for you promptly and ensure that your company remains fully compliant with its reporting obligations.
Yes, at Lanop Business & Tax Advisors we offer a professional registered office address service designed to protect your privacy and project a credible business presence. Using a commercial-grade address means you avoid having your personal home address listed on the public register. We manage all incoming statutory correspondence from Companies House or HM Revenue & Customs, forward or scan it for you, and ensure your legal obligations are met efficiently.
According to UK company-law, your registered office must be a physical address in the UK (not a PO Box) and in the same jurisdiction where your company is registered.
Business Startup & Company Formation
When you’re ready to launch your business in the UK, Lanop guides you through every step so you start off on the right foot. We help you choose the right business structure (whether you go for a sole trader, partnership or limited company) by comparing the advantages and responsibilities of each.
We then take care of the formal registrations, for a limited company, which means registering with Companies House, and for a sole trader, registering with HM Revenue & Customs for elf Assessment. We also assist with setting up VAT and payroll where needed, designing your financial infrastructure to be compliant and efficient from day one.
To form a limited company your business must provide basic information such as a unique company name, a registered UK office address, and the details of at least one director and one shareholder. You’ll also need a share structure (number and class of shares) and a standard industrial classification (SIC) code defining your business activity.
At Lanop Business & Tax Advisors we handle the full incorporation process for you, from registering your company and obtaining a Unique Taxpayer Reference (UTR) to setting up your accounting software and registering for Corporation Tax.
Landlord Accounting
Yes, if you rent out a property in the UK, you must report the rental income on your Self-Assessment tax return. Your taxable profit equals the total rent received minus any allowable expenses such as repairs, letting agent fees, insurance premiums, and utility bills you cover. You’ll also need to include the interest on your mortgage (for residential lets this is subject to restrictions) when calculating the tax due.
If you’re letting property in the UK, you must keep clear records of the dates you let it out, all the rent you receive (including any extra income you charge for services), and all your allowable expenses such as invoices for cleaning, gardening, repairs or letting agent fees.
These documents must be easily readable and stored in a way that you can present them if HM Revenue & Customs asks to see them. For how long you should keep them: for rental income and expenses, it is recommended to hold on to your records for at least five years after the 31 January filing deadline for the tax year they relate to.
Family Business Accounting
At Lanop Business & Tax Advisors we understand that family-run businesses face unique challenges, including overlapping personal and business finances, unclear roles across generations, and the need for fair profit distribution while preserving family harmony.
To support you, we help separate personal and business accounts so financial clarity is restored. We assist with payroll set-ups for family members in compliant ways that respect tax rules and family dynamics. We also design tax-efficient structures tailored to your family-corporate group, whether you’re planning for growth, succession or long-term stability. In short, we guide you to manage your enterprise professionally, plan ahead for the next generation and distribute profits equitably.
Yes. Family-run businesses can reduce exposure to inheritance tax through mechanisms like the relief known as Business Property Relief (BPR). This relief applies to qualifying business assets (such as a sole-trader business, partnership interest or unquoted company shares) and can reduce or eliminate the inheritance tax (IHT) on those assets. However, forthcoming changes mean that from 6 April 2026 only the first £1 million of combined qualifying business and agricultural assets will get 100% relief; amounts above that will receive just 50% relief (which effectively raises the IHT rate on such assets from 0% to 20%).
The business must generally be “trading” rather than an investment or property-holding business and the relevant asset must usually have been owned for at least two years before the transfer.
CIS (Construction Industry Scheme)
Yes. Family-run businesses can proactively reduce inheritance tax exposure by using strategies such as ownership restructuring and making use of correct reliefs. One of the most significant reliefs is Business Property Relief (BPR) which may provide up to 100% relief on qualifying business assets (for example, unquoted shares or a trading business) when transferred.
For example, if business assets qualify, they can fall outside the IHT calculation once held for the required period. Importantly, from 6 April 2026 changes kick in: the first £1 million of qualifying assets still get 100% relief, but amounts above that will receive only 50% relief, effectively raising the IHT rate on that portion to 20%. If the business is judged to be an investment company as opposed to a trading business, the relief could be lost.
If your business engages subcontractors to carry out construction work, you may be a contractor under the CIS and have several key obligations to HM Revenue & Customs (HMRC). These include:
- Registering as a contractor before making any payments to subcontractors.
- Verifying each subcontractor’s status with HMRC to determine the correct deduction rate (20 % for registered, 30 % for unregistered) or whether payments can be made gross.
- Making correct deductions from payments for labour (excluding materials and VAT) and paying those deductions over to HMRC.
- Submitting a monthly CIS return to HMRC by the 19th of each month (or notifying them if no payments were made) detailing all payments and deductions.
- Keeping thorough records of all payments, deductions, subcontractor verifications and statements of deduction.
These steps help ensure compliance and reduce the risk of penalties or interest charges.
R&D Tax Credits
To qualify for R&D tax relief, a UK-based limited company must be undertaking a project that aims to achieve a scientific or technological advance by resolving a scientific or technological uncertainty. This means the work should go beyond routine improvements or obvious design changes. Also, the expenditure must relate directly to the company’s trade and be correctly recorded. Eligible costs can include staffing costs, software, consumables and subcontracted R&D.
Under the UK SME scheme for R&D Tax Credits, the amount you can claim depends on whether your company is making a profit or a loss, and whether it qualifies as “R&D intensive.” For accounting periods beginning before 1 April 2023:
- Loss-making SMEs could receive up to 33% back of qualifying R&D expenditure.
- Profit-making SMEs could reduce their Corporation Tax by up to around 25% of qualifying costs.
For accounting periods on or after 1 April 2023:
- The additional deduction is 86% of qualifying costs, and the payable credit rate is 10% for standard SMEs, rising to 14.5% for R&D intensive ones.
- Hence the effective benefit might be up to around 18.6% of qualifying spend for a loss-making non-intensive SME.
Inheritance Tax & Estate Planning
Yes. Family-run businesses can reduce their exposure to inheritance tax (IHT) by adopting a range of legitimate planning techniques. For instance, transferring ownership into a trust can remove the asset from your estate for IHT purposes, provided you survive long enough after the transfer.
Gifting assets during your lifetime, such as by making exempt annual gifts or potentially exempt transfers that become fully IHT-free if you live seven years after them, is another effective method. Additionally, using reliefs like the Business Property Relief (BPR) for qualifying business assets helps reduce tax-incurred at death if the business or asset meets the definition of “trading” rather than investment.
It’s best to begin estate planning as early as possible, even if you’re young and have modest assets. Many UK advisers say you should start once you’re legally an adult or as soon as you have meaningful assets, a home or dependents.
Planning early gives you time to structure your affairs thoughtfully, make use of tax allowances and make sure your wishes are clear and up-to-date before life-changes arise.
Immigrant Accounting & Overseas Clients
It depends on your tax-residence status. Under the Statutory Residence Test (SRT) you’ll generally become UK tax-resident if you spend 183 days or more in the UK in a tax year. If you are tax-resident, you must declare your worldwide income (not just UK income) on your Self-Assessment return. If you are non-resident, typically you'll only report UK-source income, such as UK property or UK services.
Overseas business owners who operate or establish companies in the UK must navigate a range of obligations, from registering a UK establishment of an overseas company to understanding UK tax and disclosure rules.
For example, if a foreign entity carries on business in the UK it may need to register a UK establishment with Companies House, file accounts and meet disclosure requirements. Additionally, profits attributable to a UK permanent establishment or via UK-landed assets may be subject to HM Revenue & Customs Corporation Tax.
Support for overseas owners can therefore include:
- Advising on whether your UK presence triggers registration or a permanent establishment.
- Managing UK company incorporation and the filing of UK accounts.
- Ensuring ongoing compliance with UK corporation tax, property taxes (including for UK land) and disclosure registers.
- Helping you open and manage UK bank accounts or coordinate payment flows from abroad.
Partnership Accounting
Yes. In a UK partnership the partnership entity files a joint return showing the partnership’s income, expenses and how its profits (or losses) are allocated among the partners. Each individual partner then needs to submit their own Self Assessment tax return to report their share of the profit (or loss) from the partnership.
Except: If a partner is a company rather than an individual the tax treatment may differ (for example corporation tax rather than self-assessment). Also, in specific cases of non-resident partners or partnerships operating overseas the rules may vary.
In a UK partnership, profit distribution begins with establishing how residual profit (after all expenses) will be allocated among partners. Partners often agree in advance on sharing ratios, interest on capital contributions, guaranteed partner payments, and any priority or bonus distributions. Once the appropriation of profit is calculated:
- Each partner’s current account is credited with their share of profit and debited for any drawings taken.
- Each partner’s capital account is adjusted for contributions or agreed interest on capital.
- The partnership agreement should clearly outline how profits and losses are shared, and any changes must apply prospectively (i.e., cannot alter past years).
This structured approach ensures transparent, accurate allocation of profits across partners and provides a clear audit trail aligned with accounting standards.
Virtual Finance Director (VFD)
A Virtual Finance Director brings senior-level financial leadership to your business on a flexible basis rather than as a full-time hire. They help you build budgets and forecasts, monitor cash flow, set meaningful KPIs and analyse where your profits are coming from. They also ensure your financial controls, strategy and reporting are aligned so you can grow with confidence while keeping costs manageable.
An accountant focuses on ensuring your books are accurate, tax-compliant and up to date. They handle payroll, tax filings, VAT returns and financial statements. On the other hand a Virtual Finance Director (VFD) steps beyond compliance and becomes your strategic partner. They look at growth planning, financial forecasting, investment decisions and aligning your finances with your business goals. Over time the VFD guides where you spend, invest and scale, that’s quite different from the day-to-day bookkeeping and reporting tasks an accountant performs.
Financial Planning & Succession
Yes. We integrate business and personal finances helping directors plan salary/dividend mixes, pensions, and long-term investment strategies aligned with their life goals.
We create step-by-step ownership transition plans, value your business fairly, and minimize tax exposure when handing over to family members or selling to new owners.
Lanop, Your Best Friend in Business
Get in touch
