Frequently Asked Questions
Straight answers to the questions we get asked most. If yours isn't here, just give us a ring — we don't bite.
General Questions
How much do you charge?
We use fixed fees so you always know what you're paying upfront. Self-assessment tax returns start from £190 + VAT, year-end accounts from £450 + VAT, bookkeeping from £100/month, payroll from £7/employee/month, CIS returns from £100/month, charity accounting from £100/month, and VAT returns from £50/quarter. Every business is different though, so get in touch and we'll give you an accurate quote for your situation.
Do I need to come to your office?
No — most of our clients work with us entirely remotely. We use cloud software like Xero, QuickBooks, and Sage, plus secure document sharing, video calls, and good old-fashioned phone calls. That said, our doors are always open if you prefer face-to-face meetings at our Worcester or Birmingham offices. Whatever suits you best.
How do I switch to Severn from my current accountant?
It's easier than you'd think — we handle the whole process. You sign a letter of engagement, we contact your previous accountant using professional clearance protocols, collect your records, and pick up where they left off. Most switches take 2-4 weeks and there's no disruption to your business. We'll also flag anything your old accountant may have missed.
What software do you use?
We work with all the main platforms — Xero, QuickBooks Online, Sage, FreeAgent, and others. We're advanced certified in QuickBooks and Sage, so we know these tools inside out. If you're not using any software yet, we'll recommend the best fit for your business size and budget, and get you set up with training included.
Are you properly qualified and regulated?
Yes. We're ACCA licensed accountants, fully regulated by the Association of Chartered Certified Accountants (ACCA). Ali Jaw holds FMAAT status, a BSc (Hons) in Applied Accounting, and has won both the AAT Branch of the Year Award (2019) and AAT Past President Award (2020). We're also advanced certified in QuickBooks, Sage, and Xero.
Do you work with small businesses or just big companies?
We work mainly with small and medium-sized businesses, sole traders, landlords, charities, and CICs. That's where we do our best work — you get direct access to senior people who know your industry, not a junior analyst reading from a script. Whether you're a one-person operation or turning over millions, the service is the same.
Tax Questions
When is the self-assessment deadline?
31st January for online returns, 31st October for paper. The tax year runs 6th April to 5th April, so the 2024/25 tax year deadline is 31st January 2026. Any tax you owe is also due by 31st January, along with your first payment on account. Miss it and HMRC will hit you with an automatic £100 penalty — and it gets worse from there.
How quickly can you file my tax return?
If your records are in order, we can usually turn around a self-assessment return within 5-10 working days. For urgent cases — say you've just realised the deadline is next week — we offer a fast-track service and can often file within 48 hours. The earlier you get your documents to us, the smoother it goes.
What records do I need to keep?
Keep everything for at least 5 years after the 31st January submission deadline. That means invoices, receipts, bank statements, payroll records, and anything relating to expenses or income. Digital records are fine under Making Tax Digital. If you're not sure what counts, ask us — good record-keeping is the single best thing you can do to stay out of trouble with HMRC.
I've missed a tax deadline — can you still help?
Yes, absolutely. We deal with late filings regularly and know how to minimise the damage. We'll get your outstanding returns filed straight away, calculate any penalties, and where possible, appeal to HMRC on your behalf. If you're struggling with a tax bill, we can also arrange time-to-pay plans. The sooner you call, the less it'll cost you.
What is Making Tax Digital and does it affect me?
Making Tax Digital (MTD) is HMRC's push towards digital record-keeping and quarterly reporting. If you're VAT-registered, it already applies to you. From April 2026, it extends to sole traders and landlords earning over £50,000 (dropping to £30,000 from April 2027). You'll need MTD-compatible software to stay compliant. We handle the setup, the software choice, and the ongoing submissions.
Business Questions
Should I be a sole trader or set up a limited company?
It depends on how much you earn and where you want the business to go. Sole trader is simpler to set up, but you pay income tax on everything and carry unlimited personal liability. A limited company becomes more tax-efficient once profits hit roughly £30,000-£40,000, and gives you limited liability protection. We'll look at your specific numbers and tell you which structure saves you the most.
When do I need to register for VAT?
You must register once your taxable turnover exceeds £90,000 in any rolling 12-month period. You can register voluntarily below that threshold too, which often makes sense if your customers are VAT-registered or you have significant expenses to reclaim. We'll advise on the right timing and handle the registration and returns for you.
How often will I get management accounts?
As often as you need them. Most clients go for monthly or quarterly — monthly gives tighter control, quarterly works well for smaller businesses. If you're on cloud software with us, you can pull real-time reports whenever you like. We'll recommend what makes sense for your size and stage during the initial consultation.
Specialist Services
What is SORP and does my charity need it?
SORP (Statement of Recommended Practice) is the accounting standard that UK charities must follow. If your charity's gross income is over £250,000, you need to prepare accounts under Charities SORP (FRS 102). Smaller charities can use simpler receipts and payments accounts. It covers fund accounting, restricted funds, Gift Aid, and specific disclosures. We specialise in charity accounts and handle SORP compliance and Charity Commission filing.
What is the Construction Industry Scheme (CIS)?
CIS is HMRC's system for taxing construction work. If you're a contractor, you must register and deduct 20% (or 30% if subcontractors aren't registered) from payments, then submit monthly returns. Subcontractors should register to keep deductions at 20% or apply for gross payment status at 0%. We manage CIS registration, monthly returns, subcontractor verification, and tax planning for construction businesses across Worcester and Birmingham.
Do I actually need a specialist property accountant?
If you own more than one or two properties, yes. Property tax has its own set of rules — Section 24 mortgage interest restrictions, capital gains calculations, incorporation relief, SPV structures, and various property allowances. A general accountant might miss tax-saving opportunities that a specialist spots immediately. We work with landlords, developers, and property SPVs across the Midlands and know this area inside out.
What is Section 24 and why should landlords care?
Section 24 changed how mortgage interest is taxed for individual landlords. Since April 2020, you can no longer deduct mortgage interest from rental income before calculating tax. Instead, you get a basic-rate (20%) tax credit. For higher-rate taxpayers, this can mean thousands more in tax each year and may even push you into a higher bracket. Many landlords are incorporating into limited companies to get around it. We advise on whether incorporation makes sense for your portfolio.
Still Got Questions?
We're happy to chat through anything that's on your mind. Book a free consultation and we'll give you straight answers — no jargon, no sales pitch.