Cloud bookkeeping services for UK small businesses
UniFi Advisory provides online bookkeeping services for sole traders, landlords and limited companies across the UK, using cloud accounting software such as Xero. We reconcile your bank, keep your sales and purchase records up to date, get your books ready for VAT returns and keep the digital records Making Tax Digital requires. Regular management information shows how the business is doing during the year, not just at year end.
What do our bookkeeping services include?
Everything needed to keep accurate, current books in the cloud, so your VAT returns, Making Tax Digital updates and year-end accounts start from figures that are already checked. The exact scope and how often we update your books are set out in your quote before any work starts.
Bank reconciliation
Every transaction on your bank feeds matched to a sale, a bill or an expense, so the balance in your books agrees to the balance in the bank.
Sales records
Invoices and other income recorded and matched to payments, so you can see at a glance which customers still owe you and how much.
Purchase records
Bills and receipts captured, categorised and matched, with the VAT on each one recorded so you can reclaim the VAT you are entitled to.
VAT-ready books
Sales and purchases coded with the right VAT treatment, so each VAT return comes straight from records that have already been reviewed.
Digital records for Making Tax Digital
Records kept in software that meets the Making Tax Digital rules for VAT and for Income Tax, with every figure flowing to HMRC through a digital link.
Regular management information
Profit to date, cash position, who owes you and who you owe, explained in plain English so you can make decisions based on where the business actually stands.
Why do up-to-date books matter for a small business?
Because every decision you make about cash, pricing, hiring or tax is only as good as the numbers behind it. Books that are months behind tell you what happened, not what is happening. Books kept current let you act while there is still time, and they turn year-end accounts and tax returns into a check rather than a scramble.
In practice, current books help you answer questions like these:
- Can I afford it? Your real cash position, after the bills you already owe and the money customers owe you, not just today's bank balance.
- Am I close to the VAT threshold? You must register for VAT if your taxable turnover for the last 12 months goes over £90,000, within 30 days of the end of the month you went over. You must also register if you expect to go over £90,000 in the next 30 days alone (GOV.UK: when to register for VAT). Monthly figures make that easy to spot coming.
- Can I afford to take someone on? Current books show whether the cash is there for wages and the employer costs on top, which our employer cost calculator estimates. You must register with HMRC as an employer before your first payday, and no more than 2 months before you start paying people (GOV.UK: register as an employer). Our payroll services for small businesses run PAYE from there, and the wages go straight into your books.
- How much tax should I set aside? A company pays Corporation Tax 9 months and 1 day after its year end (GOV.UK), and sole traders usually make Self Assessment payments on account on 31 January and 31 July (GOV.UK). Knowing your profit as the year goes on means no surprise bills.
- Is there a tax-saving decision to make before the year end? Timing equipment purchases, pension contributions or how you pay yourself only works if you can see the numbers before the year closes. Our accountancy service for limited companies and sole traders builds that planning in.
What management information will I get?
The reports we agree with you depend on your business, but they usually cover:
- profit and loss for the period and the year to date
- your cash position and the main payments coming up
- aged debtors and creditors: who owes you, who you owe, and for how long
- VAT building up for the current quarter, if you are VAT registered
- an estimate of the tax to put aside
If you want to go further, with forecasts, cash-flow planning and budgets, that is what our business advisory service is for.
How long do I need to keep business records?
A limited company must keep its records for 6 years from the end of the last company financial year they relate to. Sole traders and landlords must keep them for at least 5 years after the 31 January submission deadline for the tax year. VAT-registered businesses must generally keep VAT records for at least 6 years. Longer periods can apply in some cases, for example if HMRC has opened a compliance check.
| Who | How long to keep records | Source |
|---|---|---|
| Limited company | 6 years from the end of the last company financial year they relate to; longer if, for example, the Company Tax Return was filed late or HMRC has opened a compliance check | GOV.UK |
| Sole trader or landlord (Self Assessment) | At least 5 years after the 31 January submission deadline for the tax year (letting property counts as a business for this rule) | GOV.UK; TMA 1970 s12B |
| Sole trader or landlord using Making Tax Digital for Income Tax | At least 5 years after the 31 January submission deadline for the tax year, the same as for Self Assessment | GOV.UK |
| VAT-registered business | At least 6 years for VAT records (HMRC may agree a shorter period if storage would cause serious problems) | VAT Notice 700/21 |
For example, records behind a 2025/26 Self Assessment return, which is due online by 31 January 2027, must be kept until at least 31 January 2032.
What records does a limited company have to keep?
GOV.UK says a company must keep records of all money received and spent, its assets, debts owed to and by the company, stock at the year end and the stocktakings used to work it out, and goods bought and sold. That includes the receipts, invoices and bank statements behind them. You can be fined £3,000 by HMRC, or disqualified as a company director, if you do not keep accounting records (GOV.UK: company and accounting records).
Cloud software helps here: bank statements, invoices and photographed receipts are stored against each transaction, so the evidence is kept for as long as you need it.
Do I need a bookkeeper for Making Tax Digital?
Not by law, but if Making Tax Digital applies to you, you do need digital records. Making Tax Digital means you keep your business records digitally and send figures to HMRC from compatible software. It already applies to every VAT-registered business. Since 6 April 2026 it has also applied to sole traders and landlords whose qualifying income was over £50,000 in 2024/25, and it widens to more people in April 2027 and April 2028. A bookkeeper keeps those records, and every deadline, on track for you.
Making Tax Digital for VAT
All VAT-registered businesses must keep digital records and file VAT returns using compatible software (VAT Notice 700/22). In practice that means:
- Digital records. Your business name, principal place of business, VAT registration number and any VAT schemes you use. For each sale, the time of supply, the value excluding VAT and the VAT rate; for each purchase, the time of supply, the value and the input tax you claim.
- Digital links. Figures must move between programs electronically, for example through linked spreadsheet cells, an import or an API. HMRC does not accept copying and pasting as a digital link.
- Deadlines. VAT returns are usually quarterly and due 1 calendar month and 7 days after the end of the period, even if there is nothing to pay (GOV.UK: VAT return deadlines).
We keep your books so the return is ready when the quarter ends. Our VAT assistance service covers registration, schemes and filing.
Digital records and quarterly updates for Income Tax
Making Tax Digital for Income Tax applies to sole traders and landlords registered for Self Assessment once their qualifying income, which is self-employment and property income before expenses, goes over the threshold for the relevant year (GOV.UK: find out if and when you need to use MTD for Income Tax).
| You must start using it from | If your qualifying income was over | In the tax year |
|---|---|---|
| 6 April 2026 | £50,000 | 2024/25 |
| 6 April 2027 | £30,000 | 2025/26 |
| 6 April 2028 | £20,000 | 2026/27 |
Each digital record needs the amount, the date and a category, using the same categories as Self Assessment. Spreadsheets are allowed if they are digitally linked to bridging software (GOV.UK: create digital records). You then send quarterly updates on these dates for 2026/27, and your tax return through the same software:
| Period (standard quarters) | Deadline |
|---|---|
| 6 April to 5 July 2026 | 7 August 2026 |
| 6 April to 5 October 2026 | 7 November 2026 |
| 6 April 2026 to 5 January 2027 | 7 February 2027 |
| 6 April 2026 to 5 April 2027 | 7 May 2027 |
| 2026/27 tax return (final declaration) | 31 January 2028 |
Updates are cumulative from 6 April (GOV.UK: send quarterly updates). There is a soft landing in the first year: HMRC will not give penalty points for late quarterly updates in 2026/27. You still have to keep digital records and send every update before you can submit your return, and a late 2026/27 return still earns a point. Points for late quarterly updates start from 2027/28 (GOV.UK: MTD penalties).
Not sure whether you are in? Use our free Making Tax Digital checker, or read our guide to Making Tax Digital for Income Tax.
How do our online bookkeeping services work?
Four steps, and you know the cost before anything starts.
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1
Free call and a clear quote
Tell George how your business works and how your records are kept today. You get a clear quote setting out exactly what's included.
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2
Set up the software
We set up or tidy your cloud software, connect your bank feeds and bring any backlog up to date, so you start from a clean set of books.
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3
Books kept current
You snap receipts and send invoices as normal. We reconcile the bank and keep sales, purchases and VAT up to date.
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4
Numbers you can use
Regular reports, quick answers when you have a question, and VAT, Making Tax Digital and year-end figures ready on time.
Moving from another accountant or bookkeeper? See how changing accountants works.
Free white paper
Making Tax Digital for sole traders and landlords
Who has to join and when, how qualifying income is worked out, digital records, the quarterly deadlines and where sole traders and landlords can save tax, written for 2026/27.
Services, tools and guides that go with your books
VAT assistance
Registration, choosing a VAT scheme and filing returns under Making Tax Digital.
Find out more ServiceBusiness advisory
Forecasts, cash-flow planning and growth strategy built on your up-to-date books.
Find out more Free toolMaking Tax Digital checker
Find out if and when Making Tax Digital for Income Tax applies to you.
Check now GuideMaking Tax Digital for Income Tax
Thresholds, digital records, quarterly updates and penalties, explained step by step.
Read the guideFrequently asked questions
What does a bookkeeper do for a small business?
A bookkeeper records every sale, purchase and payment, reconciles the business bank account and keeps track of who owes you money and who you owe. Done well, it means your VAT returns, year-end accounts and tax returns are built on figures that have already been checked, and you can see how the business is doing during the year.
What is the difference between a bookkeeper and an accountant?
A bookkeeper records the day-to-day transactions and keeps the books up to date. An accountant uses those records to prepare year-end accounts and tax returns, and advises on tax planning and the decisions behind the numbers. At UniFi Advisory both are looked after by George, an ICAEW Chartered Accountant, so your books are kept with the year-end accounts and tax in mind.
How much is a bookkeeper in the UK?
It depends on how many transactions and bank accounts you have, whether you are VAT registered, how often you want the books updated and whether there is a backlog to clear. We agree the scope with you on a free call and give you a clear quote before any work starts, so you know exactly what you're paying for.
How long do I need to keep my business records?
A limited company must keep its records for 6 years from the end of the last company financial year they relate to. Sole traders and landlords must keep records for at least 5 years after the 31 January submission deadline for the tax year, so records for 2025/26 are kept until at least 31 January 2032. VAT-registered businesses must generally keep VAT records for at least 6 years.
Can I use spreadsheets for Making Tax Digital?
Yes, as long as the spreadsheet is digitally linked to bridging software that sends the information to HMRC. For VAT, moving figures between programs by copying and pasting does not count as a digital link. Cloud accounting software is usually simpler, because the records, the bank feed and the submission sit in one place.
Do I need a bookkeeper if I am not VAT registered?
There is no legal requirement to use one, but every business must keep accurate records, and since 6 April 2026 sole traders and landlords with qualifying income over £50,000 in 2024/25 have had to keep them digitally for Making Tax Digital for Income Tax. Up-to-date books also show you when your taxable turnover for the last 12 months is getting close to the £90,000 VAT registration threshold.
Which bookkeeping software do you use?
Cloud accounting is one of our specialisms, and we work with software such as Xero. It links to your bank, lets you capture receipts on your phone and keeps the digital records Making Tax Digital requires. If you already use other software, tell us on the free call and we will talk through whether to keep it or move.
Do I need an accountant if I use Xero?
Not by law, but software only records what you put into it. A transaction coded to the wrong category or VAT rate flows straight into your VAT return and your accounts. An accountant checks the books, prepares the year-end accounts and tax returns, and spots tax-saving decisions while there is still time to act.
Can you bring my books up to date if I have fallen behind?
Yes. We start by reconciling your bank account and filling in the missing sales and purchase records, then agree a routine to keep things current. If you use Making Tax Digital for Income Tax and are behind with quarterly updates, catch up as soon as you can, because every update has to be sent before you can file your tax return.
Sources: company records, self-employed records, VAT records, MTD penalties and VAT registration (GOV.UK).
Written and reviewed by George Nicholson BFP ACA, ICAEW Chartered Accountant. Last reviewed 20 October 2026. This page is general information, not personal advice.
Want books you can actually use?
Book a free call with George. You'll get a clear quote before any work starts, and up-to-date numbers from then on.