Accountants For Plumbers

To start out in the plumbing industry, you had to train and get experience. When somebody has a problem with a heating, water or drainage system, they call you - a professional plumber. They don't call a carpenter or bricklayer, they call a qualified person with the experience, knowledge and training to do the job.

When you need help with your accounts, you hire an accountant. And while most accountants are qualified, not all of them are*. In addition, many won't have any idea about the plumbing industry!

What you need is someone with experience, knowledge and training relevant to your trade, someone who can offer expert advice without the need for you to explain the ins and outs of the plumbing business. You want someone who 'speaks your language'.

And with Auditox's dedicated accountants for plumbers, that's precisely what you get.

*Anyone can offer accounting services - no qualifications are required, and the term 'accountant' is not regulated!

We cover all aspects of accounting that you can think of, whether you run your own plumbing business as a limited company or as a sole trader.

The following examples highlight some of the areas where we can assist you:

Self-Assessment Tax Returns

All self-employed plumbers must submit their annual tax returns each year, and this can be a difficult and stressful task.

In 2023, around 600,000 people filed their self-assessment tax returns late. This highlights two things: people often avoid this job and put it off until the last minute because they don't look forward to it, but also, many of them simply don't have the time!

Figures suggest that just under half of all self-employed plumbers complete their own returns, while around 20% get a friend or family member to do this for them.

Auditox Accountancy accounting technicians will help you to prepare and submit your tax returns accurately and on time. They will provide guidance and expert advice where required to get the task completed quickly and without any fuss.

Making Tax Digital

Have you heard about the MTD (Making Tax Digital) initiative? Don't worry if not; you're among the 40% of plumbers in the UK who haven't!

MTD was launched by the government in 2019 with the aim of making the system more efficient and to reduce paperwork. It was delayed due to the COVID-19 pandemic, and certain deadlines were altered to allow more time. However, by April 6, 2026, any sole trader or business earning more than £10,000 per year must submit their returns online, and paper submissions will not be accepted.

And instead of filing your figures once a year, you'll need to submit five assessments - four quarterly reports, as well as the annual assessment itself.

Are You Behind The Times?

It's estimated that more than 80% of plumbers don't use online accounting software, preferring to keep paper records instead. Under the MTD system, however, paper records will be obsolete: all transactions must be held in your electronic account, and you will be expected to submit VAT returns and Self Assessment returns using 'functional compatible software'.

If you use incompatible software for the reports, you can be fined up to £400 per report. And you can also be charged between £5 and £15 for every day that you don't record your transactions digitally. So, as you can see, it's essential to get up to speed with the new rules!

Auditox Accountancy can help small business owners and self-employed plumbers prepare for this new system and avoid any penalties.

Annual Accounts

Year-end accounts are a handy source of data that has many uses and benefits. Here are a few examples:

• You can get a good idea of how well your business is doing by comparing figures with the previous year
• You can keep tabs on sales and expenses
• You can check margins on sales prices
• You can use them for future planning
• They help to identify discrepancies and errors that can then be investigated and resolved

Sole traders and partnerships use annual accounts to complete their self-assessments, and partners will need to disclose the balance of their current accounts.

If you run a limited company, year-end reports must include details of the director's salary and any shareholder dividends, and these figures must agree with those submitted in your tax return.

Auditox Accountancy will supply a dedicated accountant to ensure that your accounts are prepared accurately and presented clearly, helping you to avoid tax liabilities and to keep on top of your financial situation at all times.

Bookkeeping Services

As we already mentioned, it seems that most plumbing business owners or sole traders don't currently use online accounting software for their day-to-day operations, such as bookkeeping.

There are many reasons for this, but the time will soon come when all accounting work will have to be done on a computer connected to a cloud network.

If this seems daunting, don't worry - we can install and set up accounting software for you and teach you how to use it. Once set up, it's very straightforward and has a range of benefits:

• You have more control over your accounts and finances
• The applications are designed to be user-friendly
• You can process your records quickly and easily
• You can send invoices much more quickly
• Accessing the records is much easier and can be done at any time and from anywhere using a smartphone, laptop or tablet
• The data is at your fingertips when you need it for business meetings or to show investors and lenders
• It's a great time-saver, allowing you more free time to do other things!

All of these points are good incentives to embrace positive change and future-proof your business. We'll help you to do this, and you get to reap the benefits. You'll be more efficient, you'll save time, and your chances of success will be greatly improved.

Cash Flow Forecasting

Cash flow problems are an age-old problem that causes serious - and sometimes catastrophic - issues for businesses of all sizes.

Our accountants will analyse your income and expenditure and then prepare a forecast that allows you to plan for and avoid any future complications. Optimising your cash flow is essential for any successful business that wants to remain in this position, and we'll make this a priority to give you the best possible chance of success.

Business Expenses

You are probably familiar with HMRC's "wholly and exclusively" rule, and this can be a minefield when calculating expenses.

Basically, if you can prove that any tools, equipment, vehicles, workwear, uniforms, etc., were bought solely (or wholly and exclusively) for work use, you may be able to claim them back as expenses.

However, it's not a simple process, and it's easy to claim for the wrong items. Likewise, it's also easy to omit items that you could claim for, meaning that you are missing out.

We will advise you on the finer details of the HMRC rules to help you get the most from the system.

VAT Registration

VAT is a complex and bewildering world for those not accustomed to or familiar with its ways!

This is especially so for small business owners or sole traders earning less than £85,000 per year on a rolling basis, as they are not obliged to register for VAT.

Although completely voluntary, many small businesses choose to register for the following reasons:

• You gain recognition and respect from clients and other businesses, as it gives the appearance of a bigger, more established company
• Without it, you pay more to HMRC
• You can claim VAT back for goods or services rendered to other businesses
• Without registration, you may have to charge more for your services
• Businesses with a low turnover can backdate VAT registration by up to four years

Whether you run a small business as a sole trader or you are established as a limited company, we will advise you as to whether registering for VAT is the best option for you.

We will also help you to negotiate the system to prepare and file your VAT returns accurately and on time.

As with the self-assessment rules, you will be expected to use the Making Tax Digital system from a certain date. The deadlines and advice from HMRC have changed several times, so it is vital that you keep abreast of any news regarding this so you don't miss any dates and incur penalties.

We will regularly check the HMRC portal for any new information and ensure that all deadlines are met.

Business Taxes

We will perform a full tax checkup to make sure you are paying the correct amount and not a penny more.

You will be able to easily check your tax position using our online accounting software, and you won't have any tax liabilities to worry about as your tax responsibilities will be fulfilled.

Your dedicated accountant will advise you on everything from capital gains tax to income tax. They will also investigate any tax relief you are entitled to so that you get the most from the system.

Payroll & Pensions

As an employer, you are expected to abide by the regulations set by HMRC, and this can be a stressful and confusing task that takes up valuable time.

We will handle the daily payroll issues or train you in the use of a good-quality payroll system, should you prefer to do this yourself.

CIS (Construction Industry Scheme)

This is similar to the PAYE scheme but is designed specifically for the construction industry, allowing contractors to take money out of subcontractors' pay to pass directly onto HMRC as part of their National Insurance and tax obligations.

We'll help you to register for the scheme and provide full support to ensure that it functions as it should.

Auto-Enrolment Pension Contributions

All employers in the UK are obliged to register certain employees in a workplace pension scheme and make relevant contributions. You are classed as an employer even if you only employ one other person. If you fail to comply with the auto-enrolment scheme, you can be hit with a fine from the Pensions Regulator.

Auditox expert accountants for plumbers will make sure that you comply with all of the rules and avoid any penalties. They will deal with all of the complex processes involved and will explain how the system works so that you are kept up to date with any changes.

Business Strategy & Planning

Whether you're just setting up a plumbing business or you've been trading for over a decade, we will support and advise you on the best strategy for growth and success.

Every business needs a sound and sensible strategy to compete and thrive in any industry. That means establishing a coherent and workable business plan for the future.

Auditox Accountancy can help with company formation as well as offer unlimited support as your business grows. Setting up a business presents many challenges, and most small businesses fail within the first few months. If you establish a limited company, you'll need to inform companies house and provide annual figures to them as well as HMRC. We will liaise with both and provide all the information and figures they need by the required deadlines.

As time goes on, you may want to expand, taking on new staff or partners, or you may wish to absorb another plumbing business into your own as things progress.

Our accountants for plumbers are trained to provide guidance and accounting advice at whatever stage you may be in your business journey. We will analyse your business finances and recommend the best and most sustainable strategy for growth.