Setting Up Your Business Details

Setting up your business details

Getting your business details right from the start ensures that your tax calculations are accurate and that submissions to HMRC go smoothly. You can update these at any time from Settings > Business Details.

Business name

Enter your business name exactly as HMRC knows it. For most sole traders, this is simply your full legal name. If you trade under a different name (for example, "Jane Smith trading as Smith Design"), enter both.

Your business name will appear on any invoices you create through Accounted, so make sure it's correct.

Unique Taxpayer Reference (UTR)

Your UTR is a 10-digit number issued by HMRC when you register for Self Assessment. You can find it on:

• Previous tax returns
• Letters from HMRC about Self Assessment
• Your HMRC online account

If you haven't registered for Self Assessment yet, you'll need to do so through the HMRC website. It can take up to 10 working days to receive your UTR by post.

Your UTR is required for Making Tax Digital submissions. You can start using Accounted without it, but you'll need to add it before submitting quarterly updates.

National Insurance number

Your NI number is used for calculating your Class 2 and Class 4 National Insurance contributions. Penny uses this alongside your income figures to show you an accurate real-time tax position.

VAT registration (if applicable)

If you're VAT-registered, enter your VAT registration number. This enables Accounted to:

• Track VAT on your income and expenses
• Calculate your VAT return figures
• Submit VAT returns to HMRC through Making Tax Digital

If you're not VAT-registered, you can skip this. Accounted will let you know if your turnover approaches the VAT registration threshold (currently £90,000).

Accounting period

Your accounting period determines which tax year Accounted reports on. Most sole traders use the standard tax year (6 April to 5 April), but some use a different year-end.

If you're unsure, select the standard tax year. The basis period reform from April 2024 means most sole traders should now be aligned to the tax year.

Business address

Your registered business address is used on invoices and correspondence. This should be the address HMRC has on file for your Self Assessment.

Industry and trade classification

Selecting your industry helps Penny categorise your transactions more accurately from the start. For example, if you're a plumber, Penny will recognise purchases from plumbing suppliers as business expenses without needing to learn this over time.

You can choose from a list of common sole trader industries, or type your own description. This maps to the Standard Industrial Classification (SIC) code that HMRC uses.