Running a small business comes with enough challenges without HMRC knocking on your door. Yet every year we see business owners—smart, hardworking people—losing money or creating unnecessary stress because of avoidable tax mistakes. At Kala Atkinson, we help UK businesses stay compliant, tax-efficient, and financially confident. Here are the 10 most common tax mistakes  we see, and what you can do to stay ahead. 1. Mixing Personal and Business Finances Using one bank account

Getting a letter from HMRC can be worrying. Even if you’ve done everything right, seeing words like “enquiry”  or “compliance check”  on the page is enough to make anyone nervous. The important thing to remember is that not every enquiry means you’re in trouble.  In many cases, HMRC just needs clarification or extra information. At Kala Atkinson , we have over 40 years’ experience  dealing with HMRC enquiries — helping clients resolve them quickly and with minimal stress. Her

Flat Rate Method HMRC allows a flat rate of £6/week (£312/year) to be claimed without needing detailed records. This is commonly used when the director works from home and incurs some costs such as electricity & heating. The company can record this as an expense and credit the director’s loan account. Actual Cost Method Alternatively, directors can claim a proportion of actual household expenses. These include increased costs for heating, electricity, metered water, broadband