Accounts and Tax Settings
How Settings › Accounts & tax sets your business up for its accounts and tax as one checklist: your business type and currency, financial year, when income counts, VAT, your payment terms for invoices, the tax categories for your expenses, your Income Tax details, HMRC and your accountant.
Open Settings > Business > Accounts & tax to set your business up for its accounts and tax. Everything that decides how your figures and tax are worked out is on this one page, as numbered steps: your business type and currency, your financial year, when income counts, VAT, how long customers have to pay your invoices, the tax categories for your expenses, your Income Tax details, your HMRC connection and your accountant. While something is still to do, Finish setting up accounts and tax on Accounts > Home opens it too. If you manage more than one business, choose the business at the top first, as everything here belongs to the business you choose.
VAT, the currency, the financial year and your Income Tax details used to be on the Organisation Information screen, which now has a link to this page at the top.
The Steps
The steps are numbered tabs down the left of the page. On a phone they're a dropdown above the step instead. Each tab has a badge saying where the step stands, and its name is coloured to match: green when it's done and orange when it's to do. The step you're on shows its badge beside its title too.
- Moving between steps: Click a tab to open its step, or Next at the bottom of a step to open the one after it. Every step but the last has Next.
- Where it opens: On the first step that's still to do, or on the first step once everything is done. Links from elsewhere open the step they're about, such as Choose the months your VAT quarters end in on the VAT page opening VAT.
The badges are:
- Done: The step has what it needs. You can still change anything in it.
- To do: Something your accounts or tax need is missing. Only Your business, When income counts, VAT and Expense categories can be left to do.
- Optional: Up to you, such as your accountant's email. Nothing waits on it, and it turns to Done once you fill it in.
The line above the steps says what's left, such as Still to do: your business type and the tax categories for your expenses. Once nothing is left it says Everything’s set up. You can change any of it here. The badges and that line update each time a change saves.
Not every business sees every step. A limited company doesn't see Expense categories, and Income Tax details and HMRC connection only show when your plan includes Making Tax Digital. The steps are numbered in the order they're shown.
Your Business
How your business is set up decides the tax on its profits. This step is to do until you choose a business type.
- Business type: Sole trader, where you pay Income Tax on the profits through Self Assessment. Limited company, where the company pays Corporation Tax and Work Planner keeps the records your accountant needs for it. Partnership, where each partner pays Income Tax on their share of the profits.
- What it changes here: A limited company's profits don't go on a Self Assessment return, so it doesn't see Expense categories, and it gets a warning if income counts when it's paid (see below). Income Tax details is for sole traders, so it goes once you choose another type.
- Currency: Pound Sterling (£) or Euro (€). It's shown across the app and on the documents you send, such as quotes and invoices.
Financial Year
Pick the day your financial year starts on with Start month and Start day. It starts on 6 April, the UK tax year, which is what most sole traders and partnerships use, so this step is always done. Limited companies commonly start on 1 April, and some businesses run a calendar year from 1 January. The line underneath shows the dates your current year covers, such as Your financial year runs 6 April 2026 – 5 April 2027.
- Money pages start on it: Accounts > Home, Expenses, and the Profit and Loss, Completed Jobs and Vehicles reports open on your financial year so far.
- Yearly figures follow it: The Annual Expenses card on Expenses shows your spend so far this financial year, and the expenses without a category or a receipt that Accounts > Home asks about are this financial year's.
- Date choices follow it: The year choices in date filters cover your financial year. They read This Tax Year and Last Tax Year when it starts on 6 April, This Year and Last Year when it starts on 1 January, and This Financial Year and Last Financial Year otherwise. Hover either one to see the dates it covers.
- VAT isn't affected: Your VAT returns follow the months your VAT quarters end in, below, not your financial year.
- Set per business: Like the rest of this page, the financial year belongs to the business chosen at the top. Reports covering several businesses at once use the financial year of your primary business.
- Only real dates are offered: The day list follows the month you pick, so you can't choose something like 31 February, and moving from 31 January to February moves the day to the 28th. 29 February isn't offered either, as it doesn't exist three years in four.
When Income Counts
This decides the day your income counts on. Your reports, Accounts > Home and your Income Tax figures all follow it, whether or not your plan includes Making Tax Digital. Until you choose one, it says Until you choose, income counts on the Accrual Basis., and the step is to do, so you're asked which you use.
- Cash Basis: Income counts on the day you're paid, less anything you refund. HMRC's usual choice for sole traders.
- Accrual Basis: Income counts on the day you charge for the work, and debts you write off count as an expense.
A limited company that chooses Cash Basis sees a warning: A limited company’s accounts count income when the work is done, on the Accrual Basis. Choose that unless your accountant says otherwise. Ask your accountant if you're not sure which you use.
VAT
While VAT registered is off, this step is done and asks nothing more. Once it's on, the step is to do until your VAT number is in and, for a UK number, your VAT quarters.
- VAT registered: Switch it on only if the business is registered for VAT. It turns VAT on across Work Planner: jobs get VAT fields, quotes and invoices show the VAT, Add expense asks for the VAT in each cost, and your reports and Accounts > Home show figures before VAT.
- VAT number: As on your VAT registration certificate. A UK number is nine digits, or twelve for a branch, such as GB123456789, with GB in front or not (XI for a business in Northern Ireland). An Irish number starts IE, such as IE1234567T. Spaces are fine. Anything else gets Enter your VAT number as your VAT registration shows it, such as GB123456789 or IE1234567T.
- VAT accounting scheme: How your VAT return is worked out. Standard (accrual) accounting counts VAT on sales when you charge for the work, and on expenses when you have them. Cash accounting counts it when the customer pays you, taking the VAT share of the invoice or job they paid for, and VAT on expenses when you pay them. Flat Rate Scheme returns are worked out differently, so Work Planner doesn't work them out or send them: choose it so the VAT page says so, and send those returns through your accountant or HMRC's online service.
- Your VAT quarters end in: The months your VAT returns end in: March, June, September and December; April, July, October and January; May, August, November and February; or Every month if you send monthly returns. Your VAT registration certificate, or your HMRC online account, shows which. It's asked for a UK VAT number only. Until HMRC is connected, the VAT page works out your returns and when they're due from it, using calendar quarters until you choose. Without HMRC, choosing them also starts the reminders of each VAT return in the notifications bell and by email: there are none until you choose, as calendar quarters may not be yours.
Switching VAT registered on waits for the number: until you type it, the note in the corner says Not saved yet — add your VAT number. and VAT stays off. Switch it off again and the number is kept for later. If HMRC turns the number down, the VAT page says HMRC says the VAT number isn’t valid. Check it in Settings › Accounts & tax.
Invoices
How long customers have to pay an invoice, chosen under Payment terms: Due when it’s made, 7 days, 14 days, 21 days, 28 days, 30 days or 60 days. It starts on 14 days, so this step is always done.
- Each invoice's due date: A new invoice is due this many days after the day it's made, so on 14 days an invoice made on 6 November is due on 20 November. Due when it’s made makes it due the same day.
- Changing your terms: Only invoices made from then on get the new terms, and invoices already made keep their due date. Invoices made before there were payment terms are due 14 days after the day they were made.
- One invoice's own date: Pick another date under Due date when you make the invoice, or change it later with Edit.
- Overdue: Once an invoice's due date has passed and it's still to be paid, the Invoices list and the invoice's popup say how many days overdue it is, and Accounts > Home counts it under its things to do.
- On the invoice itself: The Due date variable puts it on your invoice template. The Simple invoice, Modern invoice and Bold invoice designs show it already. See Drag and Drop Editor.
Expense Categories
Your Self Assessment return adds up your expenses in HMRC's boxes, such as Car, van and travel expenses. Choose the box for each of your expense categories. The Income Tax page adds up your expenses in these boxes, your Income Tax updates send each cost under its category's box, and a category without one goes under Other business expenses. The Income Tax page names any category still without one. This step replaced the SA103 expense categories page, and links to that page open Accounts & tax. The full expense form, from Transactions, also reminds you to choose the van for a category you've put in Car, van and travel expenses. The step is to do until every category has a box. A limited company doesn't see it.
- A box for each category: Each of your categories is listed by name, with its box or Not chosen yet.
- Suggestions: A category without a box whose name suggests one says so underneath, such as Suggested: Car, van and travel expenses. under Fuel. A line above the categories says how many have one, such as 3 categories have a suggested box, from its name., and Use the suggestions puts them all in at once. Nothing is used until you choose it, so check them and change any that don't fit.
- Adding or renaming categories: Done in Expense Categories, which the step links to. Until you have some, it says You haven’t any expense categories yet.
- On each category too: A category's box can also be chosen as its Tax box when you add or edit the category. Anyone whose role can edit expense categories can do that, without being able to change this page. It's the same box either way, so a change in one place shows in the other.
Income Tax Details
Shown when your plan includes Making Tax Digital, to a sole trader, or before you've chosen a business type. Work Planner needs these to send your Income Tax updates to HMRC. The step is optional, and done once your National Insurance number is in.
- National Insurance number: How HMRC knows you for Making Tax Digital for Income Tax, such as QQ 12 34 56 C. Type it with or without spaces. Anything that isn't one gets Enter a National Insurance number like QQ 12 34 56 C.
- Unique Taxpayer Reference (UTR): The 10 numbers on your Self Assessment letters. Not needed to send updates, but handy to keep.
- What the income is from: Self-employment (sole trader) for the work you do. UK property and Foreign property are for income from property, which is sent separately.
- Trading name: The name your business trades under, if it isn't your own.
- Legal name: Your full name as HMRC has it.
- Business start date: When you started trading. HMRC uses it to work out which updates are due.
With HMRC connected but no National Insurance number, the Income Tax page says Add your National Insurance number in Settings › Accounts & tax to send your updates from here. If HMRC turns the number down, it says HMRC says the National Insurance number isn’t valid. Check it in Settings › Accounts & tax.
HMRC Connection
Shown when your plan includes Making Tax Digital. Connecting HMRC covers it step by step. Connecting lets Work Planner send your VAT returns and Income Tax updates to HMRC. Leave it if your accountant sends them: the step is optional, and done once you're connected. Without it, the VAT page still lists your VAT returns, worked out from your VAT quarters, for you to download for your accountant and mark as sent. The Income Tax page still works out your Self Assessment figures too, for you to download for your accountant.
- Connected: The step says when, and when to connect again, such as Connected on 3 October 2026. Connect again by 3 April 2028, as HMRC asks every 18 months. After that date HMRC stops the connection until you connect again. Underneath is what the connection lets Work Planner do: See when your VAT returns and Income Tax updates are due, and Send your VAT returns and Send your Income Tax updates when you allowed them.
- Not connected: Connect to HMRC takes you to HMRC to sign in and give Work Planner access. Afterwards you come back to the HMRC connection page.
- Connect again: While you're connected, Connect again takes you to HMRC to sign in again, to renew the 18 months before they're up, or to allow Income Tax as well as VAT. The new connection replaces the old one.
- Manage the HMRC connection: Opens Settings > Connections > HMRC (Making Tax Digital). When you're connected it shows the same things: the Status, Connected on, Connect again by with HMRC asks every 18 months., and What Work Planner can do. Disconnect is there too.
- Who can connect: Connecting needs a role that can manage HMRC. Anyone else sees Someone who can manage HMRC for your business can connect it.
If the connection runs out, the VAT and Income Tax pages say Your HMRC connection has run out. Connect HMRC again in Settings › Accounts & tax.
Everyone whose role can send your tax, with Submit under HMRC, is warned about it in the notifications bell, on their phone and by email. Both warnings open this page:
- A month before it needs renewing: HMRC connection needs renewing, with HMRC’s permission for Work Planner to send your tax runs out on 3 April 2028. Connect HMRC again in Settings › Accounts & tax before then.
- Once it's stopped working: HMRC connection has stopped working, with Work Planner can’t send your VAT returns or Income Tax updates until you connect HMRC again in Settings › Accounts & tax. It comes once the date has passed, or sooner if HMRC stops accepting the connection.
Once HMRC has stopped accepting the connection, the step says HMRC has stopped accepting this connection, so nothing can be sent to HMRC until you connect again. and goes back to to do. Choose Connect again and sign in to HMRC again. Your records and earlier submissions stay as they are. The new connection is good for another 18 months, and connecting again clears both warnings. It needs a role that can manage HMRC, as above.
Your Accountant
If you have an accountant, add their email address under Accountant’s email, so it's kept with the rest of your accounts and tax details. It's where Email to your accountant, on For your accountant, sends them a link to everything they need for a period. The step is optional, and done once there's an address. One that isn't an email address gets Enter your accountant’s email address, such as name@example.com.
Saving
There's no save button. Changes save as you make them: a choice saves straight away, and a typed field saves when you leave it. A note in the corner says when your changes have saved, and the badges and the line at the top update to match.
- Something still needed: Switching VAT registered on waits for the VAT number, as above. Everything else you change still saves.
- A change that couldn't be saved: The field says why, and the note says Some changes weren’t saved. Check the fields marked.
- Across the app: A new currency, financial year or VAT setting is used everywhere once it saves.
Who Can Change It
Accounts & tax needs the same permission as Organisation Information, which owners and admins have. Connecting HMRC also needs a role that can manage HMRC. See Editing a Role.
Related articles
- Organisation Information Screen: Your address, bank details, working days and branding.
- Accounts Home: Where Finish setting up accounts and tax shows while something is still to do.
- Profit and Loss Report: Your income, counted the way you choose here.
- Expenses List: Your expenses and the Annual Expenses card.
- Expense Categories List: Adding and renaming the categories you choose boxes for.
- Adding an Expense: The VAT in each cost, for a VAT-registered business.
- VAT Returns: Your VAT returns, worked out from these settings or listed by HMRC once it's connected.
- Income Tax: Your Self Assessment figures, with your expenses in the boxes you choose here, and your quarterly updates.
- Notification Settings: Switching tax reminders, and the HMRC connection warnings, off or on.
- Connecting HMRC: Signing in to HMRC, connecting again every 18 months and disconnecting.
- For Your Accountant: Emailing your accountant everything they need for a period.
- Invoices List: When each invoice is due, and which are overdue.
- Creating an Invoice: Giving one invoice a due date of its own.