365 Accounts Ltd

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365 Accounts Ltd Professional accountancy and other financial services

17/10/2026

Should my spouse or partner own shares in the company?

Shares are genuine ownership rights, not just a way to split dividends. Voting rights, future sale value, control and long-term ownership all need to be considered.

Part 23/100.



16/10/2026

Should my spouse or partner be employed by the business?

Where a spouse or partner genuinely works in the business, a commercial salary may be appropriate. The role, hours, responsibilities and payroll obligations need to support it.

Part 22/100.



15/10/2026

Should I take this money personally or leave it in the company?

The choice between extracting profits and retaining them should consider personal needs, tax, working capital, future investment and the company’s longer-term plans.

Part 21/100.



14/10/2026

Is my current business structure still right for me?

The structure that suited a startup may not still suit a mature business. Profitability, risk, assets, ownership and long-term plans can all justify a review.

Part 20/100.



13/10/2026

Am I approaching any important tax thresholds?

Growing turnover, profits or personal income can change tax rates, reduce allowances or create new obligations. Knowing which thresholds are approaching creates time to plan.

Part 19/100.



“It's £120 including VAT.”For a normal sale at 20% VAT, that means £100 before VAT and £20 of VAT. The customer's £120 p...
12/10/2026

“It's £120 including VAT.”

For a normal sale at 20% VAT, that means £100 before VAT and £20 of VAT. The customer's £120 payment isn't £120 of sales revenue before costs.

The easy mistake is to take 20% off the total. That gives £96, because you're applying the percentage to a price that already includes the VAT.

To work backwards, divide the inclusive price by 1.2. Then subtract the result from the total to find the VAT.

Why does this matter beyond getting an invoice right?

If you're judging whether a job is worth taking, compare its costs with the right sales figure. In this example, the £100 still has to cover the cost of delivering the work. It isn't profit.

And make sure everyone understands the quote. £120 including VAT and £120 plus VAT are different amounts for the customer to pay.

This example assumes a VAT-registered business making a normal sale at the current standard rate of 20%. Some sales have a different rate or treatment, so check before applying the calculation.

The £20 also isn't automatically the amount you'll pay HMRC for the period. Your return can include eligible purchase VAT, adjustments and different treatment under special schemes.

If your prices have grown without anyone checking what remains after VAT and costs, that's a useful review to have with .

12/10/2026

Should I buy, lease or finance this business asset?

Buying, leasing and financing can produce different outcomes for cash flow, interest, VAT, tax relief and ownership. Compare the full cost, not just the monthly payment.

Part 18/100.



A full diary is useful. It helps to know how much of it is needed just to cover the month.Start with what each job leave...
11/10/2026

A full diary is useful. It helps to know how much of it is needed just to cover the month.

Start with what each job leaves after the costs that rise with the work.

In this illustrative example, a £500 job has £300 of variable costs. That leaves £200 towards the monthly fixed costs, then profit. All figures exclude VAT.

If fixed operating costs are £4,000 a month, the business needs 20 of those jobs to cover them: £4,000 divided by £200.

At that point, £10,000 of sales has produced £0 operating profit after the costs in the example.

This is why a sales target on its own can be misleading. Change the costs of doing the work, and the same turnover can leave a different result.

Your own calculation needs sensible cost categories. A salary that stays the same each month may belong in fixed costs; extra labour paid for each job may belong in variable costs. Don't include the same cost in both.

Most businesses also have a mix of jobs. Use a realistic mix rather than assuming every booking earns the same contribution, and check whether you have the capacity to deliver the target.

Finally, operating break-even isn't a cash-flow forecast. Tax, loan principal repayments, owner withdrawals and when customers pay still need planning separately.

If you know your sales target but not the point where the work starts leaving a return, that's a useful conversation to have with .

11/10/2026

Could I reduce my next tax bill without damaging the business?

A lower tax bill is not automatically a better financial outcome. Tax planning should support commercially sensible decisions rather than encourage unnecessary spending.

Part 17/100.



You might call it your wages. Your sole trader accounts need to treat it differently.A regular transfer from the busines...
10/10/2026

You might call it your wages. Your sole trader accounts need to treat it differently.

A regular transfer from the business account to your personal account is a drawing. It isn't an allowable wage expense for you as the owner.

That matters because taking more or less money home does not, by itself, change the taxable profit of the business.

In the example, taxable business profit is £30,000 after the relevant business tax adjustments. Taking £18,000 in personal drawings does not turn that into £12,000 of taxable profit.

It also doesn't mean the tax bill is £30,000. Your actual liability depends on your circumstances, including allowances, reliefs and other income.

Leaving money in the business account doesn't, on its own, postpone tax on the profit either.

A regular drawing can still be useful for managing your household budget. Just keep the bookkeeping clear and check whether the business can afford it after upcoming bills and a sensible tax reserve.

If you pay a personal bill directly from the business account, that doesn't make it a business expense. Keep personal spending separate in your records so it doesn't distort the picture.

This is about sole traders. A limited company is different: salary, dividends and directors' loans each need their own treatment.

If the amount you can safely take home feels like guesswork, speak to about planning it from the numbers.

Address

Cumberland House, 15-17 Cumberland Place
Southampton
SO152BG

Opening Hours

Monday 7am - 5pm
Tuesday 7am - 5pm
Wednesday 7am - 5pm
Thursday 7am - 5pm
Friday 7am - 5pm
Saturday 8am - 12pm
Sunday 8am - 12pm

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