Budget 2026: what it means for you and your business —
In short
Bookkeeping is the foundation every other financial decision rests on — and it is now a legal requirement to keep those records digitally under Making Tax Digital. We maintain your sales and purchase ledgers, reconcile your bank feeds, and keep you permanently ready for VAT and year-end. Because we look at your numbers monthly rather than annually, we flag late payers, margin slippage and unusual costs while there is still time to act on them.
Sales and purchase ledgers kept current, so you know who owes you what, and what you owe. Bank reconciliation against live feeds, so your cash position is real rather than approximate. VAT records maintained to MTD standard, ready for each return. Expense and receipt capture, automated (see Finance Automation). Month-end close, so the numbers are usable.
And — the part that distinguishes a bookkeeper from a chartered firm — someone reviewing what the numbers are telling you.
This is the most commonly missed rule in the regime, and it costs owners real money.
The £50,000 and £250,000 limits are divided by the number of associated companies under common control, plus one. With one associated company they halve to £25,000 and £125,000. With three associates, they quarter.
So a group of small companies, each individually modest, can find itself paying the main rate on profits that a standalone company would pay 19% on. If you control more than one company — including dormant or property-holding companies — this needs checking.
If you are VAT-registered, yes — MTD for VAT requires digital record-keeping and filing through compatible software, with digital links between systems. Manual copy-and-paste does not qualify.
If you are a sole trader or landlord with gross income over £50,000, MTD for Income Tax has applied since 6 April 2026, with the threshold dropping to £30,000 in 2027 and £20,000 in 2028.
Either way, the spreadsheet-and-shoebox era is over.
For most small and medium businesses, yes. Outsourcing converts a salary — plus employer NI, pension, holiday cover, software licences, training and recruitment cost — into a single predictable monthly fee.
It also removes single-person risk. When your one bookkeeper resigns, is ill, or goes on holiday during your VAT quarter, an outsourced team simply continues. And a chartered firm reviews the work, which an employed bookkeeper working alone rarely has.
Chartered oversight — a qualified accountant reviews the books, every month.
Problems flagged early — late payers and margin slippage spotted while you can still act.
MTD-compliant by construction — not retrofitted in a panic.
No single-person risk — the work continues through holidays, illness and resignations.
Xero Gold Partner, and certified across Sage and QuickBooks.
This page provides general information about the 2026/27 UK tax year and is not advice on your particular circumstances. Tax and regulatory rules change frequently. Please contact us before acting, or refraining from acting, on anything set out here. LMJ Group is a firm of Chartered Accountants regulated by the ICAEW. LMJ Group is not a registered auditor and does not provide audit services. Last reviewed: July 2026.
