Question 1

How do I sign up?

Accepted Answer

Choose your plan on our pricing page and complete the short online form. You'll be matched with your dedicated accountant within 24 hours — most clients are fully set up within a week.

Question 2

Are there any setup fees?

Accepted Answer

No. There are absolutely no setup fees. You start paying your monthly fee from the date you sign up, and there's nothing on top.

Question 3

Is there a minimum contract?

Accepted Answer

No. You can cancel at any time with one month's notice. We believe you should stay because you want to, not because you're locked in.

Question 4

How quickly can I get started?

Accepted Answer

You can sign up in minutes. Your dedicated accountant will typically be in touch within 24 hours to book your onboarding call and get FreeAgent set up.

Question 5

What information do I need to sign up?

Accepted Answer

Just your name, email, phone number, and which package you want. We'll collect everything else — company details, HMRC references, bank info — during onboarding once you're signed up.

Question 6

What's included in the monthly fee?

Accepted Answer

Everything: your dedicated accountant, unlimited advice, all tax returns and filings, free FreeAgent accounting software, real-time dashboard, open banking, and mortgage reference letters when you need them.

Question 7

Do I get a dedicated accountant?

Accepted Answer

Yes. Every client is matched with a named, dedicated accountant who specialises in their business type. They're your main point of contact for everything — not a call centre, not a ticket queue.

Question 8

Is the advice really unlimited?

Accepted Answer

Absolutely. Call or email your accountant as often as you need. There are no per-question charges and no limits — that's the whole point of a fixed monthly fee.

Question 9

What if my accountant is on leave?

Accepted Answer

Every accountant has a named backup who knows your account. If something urgent comes up while yours is away, the cover knows your business and can help straight away.

Question 10

Where are your accountants based?

Accepted Answer

All our accountants are UK-based, working from our Leeds office. No offshore call centres.

Question 11

How much does it cost?

Accepted Answer

Sole Trader packages start from £42.50/month. Limited Company, Contractor and Freelancer packages start from £104.50/month. All prices are plus VAT. Full pricing detail is on our /pricing page.

Question 12

Are there any hidden fees?

Accepted Answer

None. The monthly fee covers everything. No surprise charges for phone calls, tax returns, IR35 reviews, mortgage reference letters or one-off advice.

Question 13

How do I pay?

Accepted Answer

Monthly by Direct Debit on the same date each month. Simple, automatic, and hassle-free — no invoices to chase.

Question 14

Can I change my plan?

Accepted Answer

Yes. If your circumstances change — sole trader incorporating, limited company taking on staff, contractor switching to a freelancer model — you can move between plans at any time. Just speak to your accountant.

Question 15

Do you offer annual discounts?

Accepted Answer

We keep pricing simple with one transparent monthly fee rather than annual prepayment discounts. You can cancel any time, so there's no benefit to locking in for a year.

Question 16

Can I switch from my current accountant?

Accepted Answer

Absolutely — we handle the whole switch. You give your old firm a one-line email saying you're moving, and we take it from there: professional clearance letter, records transfer, HMRC re-authorisation, all of it.

Question 17

Is there a cost to switch?

Accepted Answer

No. Switching to Clever Accounts is completely free. There are no setup fees or transfer charges, and you can switch at any point in the year.

Question 18

How long does switching take?

Accepted Answer

Typically 3–6 weeks from sign-up to fully transferred. You can start using FreeAgent immediately while we handle the handover with your previous firm in the background.

Question 19

Will there be any disruption?

Accepted Answer

No. Both firms coordinate via professional clearance rules (ICAEW/ACCA) and your accounting continues without a gap. We pick up exactly where the previous firm left off.

Question 20

What if I'm mid-year-end?

Accepted Answer

Most switches happen mid-year and it's straightforward. We coordinate with your previous firm on the year-end work, take over for the next year, and make sure nothing is missed in the handover.

Question 21

Do I need an accountant as a sole trader?

Accepted Answer

Legally, no — but most sole traders pay more tax than they need to without one. We typically save sole traders £500–£1,500/year in tax compared to filing themselves, and our fee is £42.50/month.

Question 22

Do I need to register for VAT?

Accepted Answer

Only once your taxable turnover exceeds £90,000 in any rolling 12-month period. You can voluntarily register below that — sometimes it's worth it to reclaim VAT on purchases. We assess whether voluntary registration suits you.

Question 23

What expenses can I claim as a sole trader?

Accepted Answer

Anything used wholly and exclusively for your business: tools, equipment, vehicle costs for business journeys, phone, broadband, home office (flat rate £6/week or proportion of actual costs), professional subscriptions, accountancy fees. We make sure you don't miss any.

Question 24

When are my Self Assessment deadlines?

Accepted Answer

Online tax return and any tax owed: 31 January following the end of the tax year (so the 2025/26 return is due by 31 January 2027). If HMRC has set payments on account, the second instalment is due 31 July.

Question 25

Should I be a sole trader or a limited company?

Accepted Answer

Roughly: sole trader if you're earning under ~£40k/year and want simplicity, limited company if you're earning more, want tax efficiency, or want the liability protection. We model both options for you specifically before you decide.

Question 26

What's the optimal director's salary?

Accepted Answer

For most directors with no other income, the right salary is at the secondary NI threshold (£9,100 in 2025/26) — or up to £12,570 if you can claim Employment Allowance with at least one other employee. Above that, dividends are usually more tax-efficient.

Question 27

What's the difference between salary and dividends?

Accepted Answer

Salary attracts income tax + employer/employee NI. Dividends attract dividend tax (8.75% basic, 33.75% higher rate in 2025/26) — usually lower overall. We optimise the mix for your specific situation.

Question 28

What are my Companies House obligations?

Accepted Answer

Annual confirmation statement (CS01), annual statutory accounts within 9 months of year-end, and a Corporation Tax return (CT600) within 12 months. We handle all of this.

Question 29

Can I take a director's loan from my company?

Accepted Answer

Yes, but be careful. Loans over £10,000 trigger benefit-in-kind tax, and loans not repaid within 9 months of year-end trigger a 32.5% Corporation Tax charge. We help you stay on the right side of the rules.

Question 30

What's the difference between inside and outside IR35?

Accepted Answer

Outside IR35: your limited company receives the full contract rate, you pay yourself a small salary plus dividends, taxed at lower rates. Inside IR35: you run the full day rate through payroll — income tax + NI on the lot. The tax difference is typically 15–25% of gross income.

Question 31

Are IR35 contract reviews included?

Accepted Answer

Yes — unlimited contract reviews are included in our contractor package at £104.50/month. Many providers cap free reviews or charge per contract.

Question 32

What is Clever FLEX?

Accepted Answer

Clever FLEX lets you switch between operating through your PSC (outside IR35) and our umbrella (inside IR35) within the same Clever Accounts relationship — no second provider, no setup fees, no payment gap when a contract status changes mid-year.

Question 33

What happens if a contract is determined inside IR35?

Accepted Answer

Only that contract is affected. Your limited company continues to exist, and other contracts are assessed separately. We model the tax impact and recommend whether to run it through your PSC or via umbrella.

Question 34

When do I need to register for VAT?

Accepted Answer

Once taxable turnover exceeds £90,000 in any rolling 12-month period — not just a calendar year. HMRC looks at any consecutive 12-month window. Miss this and you owe backdated VAT plus penalties. We monitor your turnover and alert you before you hit the threshold.

Question 35

What VAT scheme should I use?

Accepted Answer

Most businesses use the Standard Scheme. The Flat Rate Scheme can be beneficial for service businesses with low input VAT (you pay HMRC a fixed % of turnover). Cash Accounting helps cash flow if customers pay slowly. We assess which suits your business.

Question 36

Is FreeAgent MTD-compliant for VAT?

Accepted Answer

Yes — fully MTD-compliant and HMRC-recognised. Returns submit directly from FreeAgent to HMRC with no bridging software. Mandatory for all VAT-registered businesses since April 2022.

Question 37

Can I reclaim VAT on purchases before registering?

Accepted Answer

Yes, to a limit: 4 years back on goods you still have, and 6 months on services. We'll review pre-registration purchases and reclaim everything eligible on your first return.

Question 38

Is payroll included in my package?

Accepted Answer

For the Limited Company package (£104.50/month), payroll for directors plus one employee is included. Extra employees are added at a small per-employee monthly cost. Sole traders don't typically need payroll unless they take on staff.

Question 39

What's RTI?

Accepted Answer

Real Time Information — HMRC requires employers to submit a Full Payment Submission (FPS) every pay run. We handle this automatically every month, so you never miss a deadline (penalties start at £100/month).

Question 40

What about pension auto-enrolment?

Accepted Answer

Every UK employer must assess employees for auto-enrolment and enrol them in a qualifying scheme. We handle assessment, enrolment, contributions, declarations of compliance, and three-yearly re-enrolment.

Question 41

Can I pay myself a bonus?

Accepted Answer

Yes, bonuses can run through payroll any time — but they attract income tax + NI, so they're usually less tax-efficient than dividends. We model the tax impact before processing so you know what it costs.

Question 42

What accounting software do you use?

Accepted Answer

We include FreeAgent free with every package. It's HMRC-recognised, MTD-compliant, cloud-based, and lets you manage invoices, expenses and bank feeds on any device. Your accountant works in the same FreeAgent — no separate logins.

Question 43

Is FreeAgent included free?

Accepted Answer

Yes, completely free with every Clever Accounts package. Retail price is £19/month, so it's effectively £228/year of value bundled in. There's no extra charge or add-on.

Question 44

Can I integrate FreeAgent with my bank?

Accepted Answer

Yes — open banking is built in with 25+ UK banks. Transactions flow into FreeAgent automatically, you categorise them in seconds, and your accountant sees everything in real time.

Question 45

Does FreeAgent have a mobile app?

Accepted Answer

Yes — iOS and Android. Snap photos of receipts to capture expenses, send invoices from anywhere, and see your tax position on the go.

Frequently Asked Questions

Getting Started

Services & Support

Pricing & Billing

Switching to Us

Sole Trader

Limited Company

Contractor / IR35

VAT

Payroll

Software

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