iaw-accountancy-services

How to find a decent accountant in the UK: a friendly small business guide

Tue, 28 Apr 2026 11:02:11 GMT

Choosing an accountant can feel like a leap of faith. You are trusting someone with your numbers, your time and, ultimately, your plans. The right fit can save you tax, reduce stress and give you clarity. The wrong fit can leave you firefighting.

This guide walks you through how to find a decent accountant in the UK, what to look for beyond the sales chat and the key questions to ask before you sign. It is written with South West sole traders, start-ups and SMEs in mind, but the principles work anywhere.

At IAW Accountancy Services, we have been a family-run practice since 1981. We work with clients across Paignton, Brixham and the wider South West, and we believe your accountant should feel like part of your team. Here is how to find that partner.

What a decent accountant looks like

A decent accountant is proactive, not reactive. They do not only appear at year-end. They check in, spot issues early and help you plan.

Expect:

Fixed-fee clarity with scope explained in writing, plus how and when extras are agreed
Regular reviews, typically quarterly, to discuss performance, cash flow and tax planning
MTD-ready systems and support for cloud bookkeeping, so submissions are timely and accurate
Joined-up services across accounts, VAT, payroll, tax returns, forecasting and business advice
Plain-English explanations and prompt responses, so you make decisions with confidence

At IAW, that joined-up approach is our default. We prepare statutory accounts, run payroll, advise on VAT schemes and set 12 to 24 month forecasts so you can see what is coming and act early.

A simple shortlist process

Start with three to five local firms with relevant experience. Look at their websites for service breadth, clarity on fees and signs of regular client contact. Ask business owners you trust who they use and why.

Then, book discovery calls. Treat these as two-way interviews. Notice how quickly they respond, whether they prepare, and if you leave the call clearer than when you started. If you are in Torbay, you are welcome to chat with our team in Paignton or Brixham. Many of our clients found us while looking for experienced accountants in Paignton and appreciated the personal touch.

The practical checklist

Use this quick checklist to compare firms:

Registration and experience: Are they qualified and established in the UK with relevant sector knowledge?
Scope and fees: Do you have a written proposal with fixed-fee scope, billing cycle and how ad hoc work is priced?
Communication rhythm: How often will you meet? Who is your day-to-day contact, and how can you reach them?
Software and MTD: Which cloud tools do they support? Will they help you migrate and train your team?
Compliance coverage: Accounts, corporation tax or self assessment, VAT, payroll, RTI, confirmation statements, HMRC liaison
Planning and insight: Management accounts, budgeting, cash flow forecasting, mid-year tax planning reviews
Cultural fit: Do they listen? Do they explain without jargon? Do they feel like people you could call when something changes?

If you want one provider that covers filings, reviews and forward planning, our team is happy to explain how our Paignton accountancy services wrap those needs together in one place.

Red flags to avoid

You can save time by walking away early if you see:

Vague fees or reluctance to confirm scope in writing
No interest in your goals, only your deadlines
Year-end only contact with no plan for reviews
Poor knowledge of Making Tax Digital or cloud bookkeeping tools
Slow replies during the sales process, which often predicts future service

If you are switching before year-end, also check how they handle handover from your current accountant, what the data migration plan is and who leads it.

Questions to ask an accountant

Arrive with questions and listen for practical, specific answers. Good prompts include:

How will you help me reduce surprises on tax and cash flow?
What is included in your fixed fee, and what would cost extra?
How often will we speak, and what will we cover in those meetings?
Which cloud bookkeeping tools do you support, and can you help me set up or tidy my records?
Can you provide management accounts and 12 to 24 month forecasts, and how will we use them?
How do you handle VAT scheme advice and changes as my turnover grows?
Who does the work, and who answers day-to-day queries?
What happens if HMRC opens an enquiry, and do you offer tax compliance insurance?

These are everyday conversations for us. We prefer to set expectations up front, agree a review rhythm and document the scope so you always know where you stand.

How to assess cultural fit

Technical competence matters, but fit keeps the relationship healthy. Ask yourself after the call:

Did they listen first and speak second?
Did they explain without jargon and check you were following?
Did they show curiosity about how you make money, your seasonality and your margins?
Would you feel comfortable sharing a problem early, not just after the fact?

Small signs tell big truths. If you feel rushed or talked at, keep looking.

How often should you meet?

For most sole traders and small limited companies, quarterly works well. It gives time to spot trends and make tax and cash decisions before year-end. Start-ups in fast-moving phases might benefit from monthly touchpoints for the first 6 to 12 months. At a minimum, plan a pre-year-end review to fine tune dividends, bonuses, capital purchases and pension contributions. We set meeting cadences to suit your stage and keep them consistent, with clear agendas and follow-up notes.

Is it worth using an accountant?

If you want more time and fewer surprises, usually yes. A good accountant typically pays for themselves through:

Time saved on bookkeeping, payroll and submissions
Better tax planning and claim of allowances you might miss
Cleaner records that make forecasting and finance easier
Fewer penalties and late fees due to missed deadlines
Guidance on pricing, margins and cash flow that supports growth

Results vary, but clients often tell us the real value is confidence. Knowing what is coming helps you hire, invest and sleep better.

How we work at IAW Accountancy Services

We are a family-run practice with over 40 years in Torbay. We combine accounts, VAT, payroll, tax planning and forecasting in one place, supported by cloud bookkeeping and MTD-ready processes. We prefer fixed, agreed fees, regular reviews and clear communication. Many local owners meet us while searching for a business accountant in Paignton, then stay because we feel like part of their team.

If you want help with statutory accounts or a tidy set of financial statements to steer your planning, you can learn more on our site. We also offer help to file your annual confirmation statement if you need a hand keeping Companies House tasks on track.

Explore our site if you are comparing Paignton accountants: https://www.iawaccountancy.co.uk/
Read about support for financial statements: https://www.iawaccountancy.co.uk/Accountants
See how we handle confirmation statements: https://www.iawaccountancy.co.uk/confirmation-statement-filing

Quick FAQs

Next step

If you would like straightforward advice without pressure, book a friendly discovery call. Pop into our Paignton or Brixham offices, or get in touch by phone or email. We will listen first, outline a clear plan and, if we are the right fit, become an active part of your team.

What is Auto Enrolment in the UK and What Does It Mean For Businesses?

Tue, 25 Oct 2022 13:58:34 GMT

Are you unsure about what auto enrolment is and want to know more?

If yes, read on and find how it relates to your business.

What is auto enrolment?

Auto enrolment is a government initiative to help more people save for later life through a pension scheme at work. Under the Pensions acts of 2008 & 2011 workplace pensions law has changed and now every employer in the UK will be required to help more of their workers save for retirement.

● Automatic enrolment makes it compulsory for employers to offer eligible workers a workplace pension

● The employer must automatically enrol every eligible worker into the scheme

● The employer must make a minimum contribution to the scheme

● Failure to comply with the legislation could incur severe penalties and fines

We are more than happy to provide an individual quotation to any employer wishing to consider our auto-enrolment package to help them ensure they comply with all of the necessary legislation.

Our solution is based on a low-cost monthly fee avoiding the cash flow implications of paying large upfront fees for auto enrolment services.

Automatic enrolment will create an extra administrative and compliance burden upon employers that they may not have the skills, time or desire to undertake. At I.A.W Accountancy Services we have teamed up with NEST, a company dedicated to offering a complete wrap around service designed to aid companies in the fulfilment of their employer duties.

What is covered by auto enrolment?

Below we have detailed the initial and ongoing responsibilities employers face under auto enrolment . Our service is designed to aid employers meet their compliance responsibilities in regard to all of the areas listed below. Alternatively it will give an insight into the process for employers wishing to undertake auto-enrolment duties in house.

What are an employer’s duties for auto enrolment?

Below is a summary of the key duties’ employers need to undertake to get ready for auto enrolment , along with a summary of the ongoing duties post the auto enrolment date.

1. Know your staging date

Your staging date is the date on which you need to enrol all of your eligible workers into a suitable pension scheme and start paying contributions. Given the range of tasks involved with getting ready for auto enrolment our advice is to start preparing 6-9 months ahead of your staging date. If you would like to know your staging date please complete the form at the top of this page and we will email you with details of your relevant staging date.

2. Nominate a contact

You need to tell the pensions regulator who will be responsible for managing the automatic enrolment process by nominating a contact. This is the person who the regulator will send updates and information, letters and emails about the process to.

3. Develop initial plans

This will involve getting your payroll and HR team involved in understanding the changes and processes involved. You can begin to log in to the regulators automatic enrolment declaration of compliance (registration) online service and start providing some of the information required such as address and PAYE information.

4. Know your workforce

Your workforce will fall into one of three categories, eligible job holders; non-eligible job holders; entitled workers. It is important you assess your workforce and understand the category into which they fit.

5. Check your processes and software

You’ll need to make sure your business processes and software will support auto enrolment. Many of the functions necessary for handling the specific requirements will need to be automated, such as:

● deducting and paying contributions to the scheme

● monitoring the ages and earnings of your staff

● handling requests to join the pension scheme from members of staff who haven’t been automatically enrolled.

6. Review pension arrangements

This is the time when you must choose the pension scheme you will auto-enrol your staff into. You may already have a pension scheme, but will need to check that it is compliant with the auto-enrolment regulations, as this may not necessarily be the case.

You’ll need to choose an automatic enrolment scheme that will provide a good outcome for your staff. You must have agreement from the pension scheme you’ve chosen that, from your staging date, it will be ready to accept all the staff you need to enrol.

7. Communicate to staff

One of your duties is to write to each member of staff telling them how automatic enrolment law affects them, for example, whether they’ve been automatically enrolled, or that automatic enrolment has been postponed for them. You must do this within certain time limits, usually within six weeks of them being enrolled, or within six weeks of your staging date if you’re postponing.

What you must tell them is different depending on their rights and whether you’ve postponed automatic enrolment for them. You can postpone automatic enrolment for some or all of your staff for up to three months from staging. Start planning these communications before your staging date, so you know who should receive what information.

On and after your staging date

1. Know who you need to enrol.

At this point you will need to assess the earnings and ages of your staff to ensure you know who you will be auto enrolling. At the point of declaration, you will need to account for everyone who worked for you on your staging date and how many people you auto-enrolled.

2. Automatically enrol your staff

At this point you will need to have your pension scheme up and running, enrol your staff into the pension scheme and start deducting contributions from staff and paying them to the pension provider along with the employer contributions. Important note: You must not say or do anything that could be viewed as influencing any of your staff to opt out of your pension scheme. This is referred to as inducement which is a breach of the law and could result in fines.

3. Declaration of compliance

Within 5 months of your staging date, you will need to make a declaration of compliance to the regulator informing them that you have complied with your employer duties. Failure to make this declaration may well result in a fine.

4. Keeping records

Certain records must be kept about your staff and about the pension scheme. Some of these will be kept by the pension scheme, some must be kept by the employer. These include:

● names and addresses of staff you’ve automatically enrolled

● the contributions payable to the pension scheme and when they were paid

● any opt-in or opt-out notices you receive

● name and address of the pension scheme

● employer pension scheme reference or pension scheme registry number.

Make sure you know what these records are and where to get them from. You'll also need to decide how you'll store them so you can easily access them. You’ll need to be able to produce these records if we ask to see them. Keeping records is good governance and is proof that you’ve carried out your duties. These records must be kept for a specified time, which in most cases is six years.

5. Ongoing responsibilities

Although it may seem as though all the work happens before your staging date, that doesn't mean that it's all done when your staging date arrives. The preparations you’ve made in the run-up to your staging date will allow you to manage automatic enrolment on an ongoing basis. Just like submitting real-time PAYE, all your automatic enrolment activities will become business as usual. These include the following:

● Paying contributions

● Processing opt outs

● Processing opt-in requests

● Monitoring ages and earnings

● Assessing new starters

6. Pension scheme governance

It will be a duty of the employer to ensure the pension scheme chosen both initially and ongoing offers good value to the employees as a haven for their pension savings.

Well that rounds up our article about auto enrolment . For the very latest information on this topic, please go to the UK Government website .

What are the Different Types of Taxation in the UK?

Tue, 25 Oct 2022 13:50:04 GMT

Taxation can be a stressful subject for businesses, knowing what you have to pay and when.

In today’s blog we cover some of the main forms of taxation required in the UK to give you an overview.

What are PAYE Services?

P.A.Y.E. ( Pay As You Earn ) is the system that HM Revenue & Customs (HMRC) uses to collect Income Tax and National Insurance contributions (NICs) from employees' pay as they get paid during the year. The term 'employee' also includes directors of limited companies.

As an employer, you'll have to deduct tax and NICs from your employees' pay each pay period and pay Employer's Class 1 NICs if they earn above a certain threshold. You pay these amounts to HMRC monthly or quarterly. If you don't send the correct amount, or if you send it in late, you may have to pay interest.

With the introduction of RTI (Real Time Information) as of April 2013 every time you make payment to any of your staff members you will need to inform HMRC, here at I.A.W Accountancy Services this will be done automatically with the use of professional PAYE software, thus ensuring all your PAYE records are fully up to date.

After the end of the tax year you must send HMRC an Employer Annual Return (form P35 and forms P14).

At I.A.W Accountancy Services we can ensure the staff will get their correct net pay, and that you are advised of how much you need to pay over to HMRC each month or quarter. Using a professional computerised PAYE package ensures all the information is correct and up to date with the latest Inland Revenue PAYE coding.

The services which we can offer are,

Payslips either weekly or monthly
Administration of statutory payments such as PAYE, NIC, SSP, SMP, SPP, SAP
Calculation of Student Loans, Attachment to earnings etc
Completion of statutory forms such as P60, P45, P46 etc
Completion of year end returns when and where applicable.
Production of reports of your choice
Operate PAYE including which forms you'll need and key dates. It also provides links to detailed guidance.

Taxation

We are very aware that taxation of any kind is not the most popular financial aspect in existence.

Being in business, you will want to minimise the effect of taxation on the financial rewards for your hard work. We will help to keep your tax liabilities to the legal minimum and make the best of any tax saving opportunities that may arise. We offer the following tax services:

Business/Personal Tax
Corporate Tax

What is Business Or Personal Tax in the UK?

Business or personal taxation is the tax paid on profits by sole traders and partners of a partnership.

Currently the rates of tax are based on three thresholds.

The standard rate
The higher rate
The additional rate

The standard rate is 20% on profits up to £50,270.

The higher rate is 40% on profits between £50,271 and £150,000.

The additional rate is 45% on profits above £150,000.

Corporation tax covers the preparation of tax computations for limited companies, the completion of Corporation tax returns.

What is Corporate Tax in the UK?

Corporation tax is the tax paid by limited companies on their taxable profits.

Currently the rate of corporation tax is 19%, irrespective of how small or large the profits are.

However, this is changing, what are the details?...........

With effect from April 2023 the thresholds are changing.

Profits up to £50,000 will still be charged at 19%
From £50,001 to £250,000 the rate is a tapered rate of 26.5%
Profits over £250,000 are taxed at a flat rate of 25%

There are ways that we can ensure profit minimisation to ensure the lowest rate of tax is paid, contact us for further details of how this can be achieved.

What is VAT?

Income Tax

What is income tax?

Income tax is based on what you earn yourself and is only payable on certain types and amounts of incomes. You pay income tax on money you earn from employment, self-employed profits, dividends received, state benefits, pensions, savings, rental incomes and benefits you receive from your job. As an employer you would have to deduct the correct amount of taxes from your employees' pay based on their yearly earnings.

As part of our services we offer advice on the areas of tax planning that we believe are most important and beneficial to you to start trading in the direction and stay on track. We can also plan and deduct the correct amount of taxes from your employees and make sure all information is up to date to follow this compliance procedures as set by the regulatory authorities.

Those that are employed by a business pay their taxes through P.A.Y.E, information on this can be found on our other page under 'Pay As You Earn'. It is important that although taxing isn't the highest valued aspect in businesses making profits, you have to adhere to it.

What is Corporation Tax in the UK?

Any established company that is known as a limited company will have to pay Corporation Tax on their taxable profits and keep detailed records of these payments. A taxable profit can be classed as anything that your business makes their income from, i.e. making business trades, investments and selling anything for more than it originally cost you.

Corporation tax only applies to businesses operated in the UK, for example if you have a business up and running in a foreign country, but have offices in the UK, you will only pay this type of tax on the business activity based in the UK. The tax system works alongside the financial year from 1st April, although not all limited companies have their corporation tax liabilities calculated in line with the tax year, these are prepared and returned n the basis of the company financial year end, which can be any month of the year and usually ends at the month end of the month in which the company was incorporated .

When you use I.A.W Accountancy Services , we will set up your corporation tax within the first three months of your business starting which will keep you within the legal requirements set out by the HMRC.

We will calculate and advise of corporation tax liabilities falling due, together with the dates and relevant information in order for cash flow planning to be implemented for the same.

That’s all we have for you today. For a more detailed understanding please go to the HMRC website or just give us a call on Tel: (+44)1803 470011 or (+44)1803 855758.

In our next blog we will talk about Auto Enrolment in the UK and what it entails…

All About Limited Companies, Partnerships and Sole Traders

Tue, 25 Oct 2022 13:30:36 GMT

In this blog, we examine four different types of business structures for a UK company;

Limited Companies , Partners & Sole Traders, exploring the varying aspects of each. Everything you need to know. Read on…

What is a Limited Company?

Limited companies are separate legal entities from their owners. These are the basic facts:

The business is owned by the limited company, not you.
The company must have at least one shareholder.
It must also have at least one director. There is no longer a requirement for private companies to have a company secretary.
The shareholders do not have to be directors. Directors are treated as employees of the company, but they do not have to draw a salary form the company.
If you are the only shareholder, you will have sole ownership of the company, and are likely to also be the director who runs it.
The company pays corporation tax on its profits.
The company is governed by company law.
Reserves are distributed to the shareholders by virtue of dividends, dividends can only be distributed after the corporation tax liability has been calculated and accounted for.

What are the main advantages of using a Limited Company?

Limited Companies may appear more credible and substantial although in reality this is not necessarily the case.
The liability of its shareholders is limited to the amount of the share capital issued and so offers protection to the shareholders' personal assets. In the event of company failure and not being able to pay its creditors, your personal assets are protected. However, banks, landlords and others will often require personal guarantees from the shareholders or directors when dealing with small limited companies.
A Limited Company has better borrowing potential than an unincorporated business as it can use current assets as security by creating a floating charge over its assets.
You can use shares to enable different people to hold different proportions of ownership of the business that they can pass onto the next generation.
You can have different classes of shares with different rights, such as non-voting shares for someone who wants to invest some money into the company but doesn't wish to take part in the management.
Having a limited company can create significant tax advantages by having profits taxed at Corporation Tax rates which are lower than the higher rates of personal tax. However, when the funds are extracted from the company extra personal tax charges may arise.

What are the Main disadvantages of using a Limited Company?

Your annual accounts have to be filed at Companies House and are available for public inspection as is other information about the company.
Directors are personally subject to regulations and can be fined or found guilty of a criminal offence for failing to comply.
A company is more complicated to wind up.
Any losses made by the company cannot be used against the owner's other income.

What is a Partnership?

A partnership is two or more people carrying on business together with a view to making profit, although partnerships can also be formed between companies, or between an individual and a company.

The partners in a general partnership are all joint and severally liable for partnership debts, although this does not apply to personal tax bills based on partnership profits.

It is advisable to have a partnership agreement to document the business arrangement between the partners, including how profits will be shared and how partners will join and leave the partnership. Even a husband and wife partnership should have a written partnership agreement, as this can be used to show the Revenue that both parties are actively involved in the business and have a right to share the profits.

What is a Limited Liability Partnership?

LLPs are treated like a normal partnership for tax purposes but the members of the partnership have the protection of Limited Liability.

A LLP is a separate legal entity and can enter into contracts and deeds, sue and be sued in its own name. With normal partnerships every partner has to be party to certain documents and litigation.

As with Limited Companies, the LLP must file annual accounts at Companies House together with certain other information.

What is a Soletrader?

This is the simplest form of business to start where you carry on business on your own account. You are liable to income tax and Class 4 National Insurance on your profits. You can employ people including your spouse, as long as they are paid only for the value of work actually performed.

That’s all for today folks. Read about the different types of taxation in the UK in our next blog ! Or contact us for more information .