Question 1

Do all UK trusts need to submit an SA900 trust and estate tax return?

Accepted Answer

Not all. Trustees must file an SA900 when the trust has taxable income or capital gains HMRC needs reporting, or when HMRC issues a notice to file. Bare trusts are usually reported by the beneficiary instead. We review the trust deed and income to confirm what applies.

Question 2

What tax does an executor pay during the administration of an estate?

Accepted Answer

Executors (personal representatives) are responsible for income tax on income the estate receives after death, such as rent, interest and dividends, and capital gains tax on assets sold for more than their probate value. Simple estates may be settled informally with HMRC; larger ones need SA900 returns.

Question 3

How are trust beneficiaries taxed on distributions?

Accepted Answer

Trustees give each beneficiary an R185 form showing the income paid and the tax already deducted. The beneficiary includes this on their own self assessment return and may be able to reclaim tax if their rate is lower than the trust rate.

Question 4

How can Business Relief reduce inheritance tax for business owners?

Accepted Answer

Business Relief can reduce the inheritance tax value of qualifying trading business interests. From 6 April 2026, 100% relief applies to the first £2.5 million of combined qualifying business and agricultural property per person, with 50% relief above that, and the allowance is transferable between spouses and civil partners. Planning ahead helps make sure relief is protected.

Question 5

When should I start planning for inheritance tax?

Accepted Answer

Ideally well before it is needed. Lifetime gifts generally fall outside your estate after seven years, and reliefs depend on how assets are held. A review is worthwhile when your estate value nears the £325,000 nil rate band, or £500,000 with the residence nil rate band.

Question 6

What is the most tax efficient way to take money from my limited company?

Accepted Answer

For most directors it is a combination of a modest salary, set around the National Insurance thresholds, and dividends from taxed profits. The right mix depends on your profits, other income and pension plans, so we review it each year.

Question 7

What are the filing deadlines for a limited company?

Accepted Answer

Annual accounts are due at Companies House nine months after the year end. Corporation tax is payable nine months and one day after the year end, with the CT600 return due within twelve months. A confirmation statement is due at least once every twelve months.

Question 8

When do payments on account apply for self assessment?

Accepted Answer

If your tax bill is over £1,000 and less than 80% was collected at source, HMRC asks for two payments on account towards next year, due 31 January and 31 July. Each is half of the previous year's bill. You can apply to reduce them if income falls.

Question 9

What changes under Making Tax Digital for Income Tax?

Accepted Answer

From 6 April 2026, sole traders and landlords with qualifying income over £50,000 must keep digital records and send quarterly updates to HMRC using compatible software. The threshold drops to £30,000 from April 2027 and £20,000 from April 2028.

Question 10

When must my business register for VAT?

Accepted Answer

You must register when your VAT taxable turnover goes over £90,000 in any rolling twelve month period, or if you expect it to exceed £90,000 in the next 30 days alone. Voluntary registration below the threshold can also make sense.

Question 11

Can you file VAT returns from Sage 50 or Xero?

Accepted Answer

Yes. We file Making Tax Digital compliant VAT returns directly from both Sage 50 and Xero, and can reconcile and correct historic VAT records in either system.

Question 12

Should I hold rental property in a limited company?

Accepted Answer

It can suit higher rate taxpayers building a portfolio, because companies get full relief for mortgage interest and pay corporation tax instead of income tax. Transferring existing properties can trigger capital gains tax and stamp duty, so it needs careful modelling first.

Question 13

Do you only work with clients in Andover and Hampshire?

Accepted Answer

No. Whilst our office is based in Andover, Hampshire, we happily work with clients right across the UK. With our secure digital portal, cloud software and video consultations, we advise and support individuals, businesses and trustees nationwide just as closely as our local clients.

Question 14

Which accounting software do you support?

Accepted Answer

We are Xero Gold Champion partners and also support Sage 50 and FreeAgent. Documents and signatures are handled through our secure BrightManager client portal.

Question 15

What qualifications does Tom Kingsley hold?

Accepted Answer

Tom Kingsley is an AAT Licensed Accountant (MAAT, licence number 1009205) and a Fellow of the Institute of Accountants and Bookkeepers (FIAB). He holds the CIMA Diploma in Management Accounting and the ACCA Certificate in Public Financial Management, and is a member of the Association of Charity Independent Examiners. Kingsley Accountancy is supervised by the AAT for anti money laundering. Tom completes continuing professional development every year and is always learning, keeping his knowledge current with changes in tax, law and accounting practice so clients get up to date advice.

Frequently Asked Questions

Trusts, Estates and Inheritance Tax

Limited Companies and Corporation Tax

Sole Traders, Partnerships and Self Assessment

VAT and Making Tax Digital

Property and Tax Structures

Software and Working With Us