We do the bookkeeping, management accounts, annual accounts, corporation tax and VAT for care homes, home care agencies, supported living providers and nurseries.
Drawn from VAT Notice 701/2, VAT Notice 701/57 and HMRC's VAT manuals.
| Allowance | Rate | Applies to |
|---|---|---|
| Annual Investment Allowance | £1 million a year | Plant and machinery, including equipment and vehicles other than cars |
| Full expensing | 100% | New and unused main pool plant and machinery bought by a company |
| First-year allowance | 40% | New main pool assets from 1 January 2026, for all businesses |
| Main pool writing down allowance | 14% a year | From April 2026, down from 18% |
| Special rate pool | 6% a year | Integral features such as lifts, heating and electrical systems |
| Structures and Buildings Allowance | 3% a year | Construction costs of the building, including care homes (CA11520) |
We keep your books in Xero each month and produce management accounts set out the way a care business runs: income by funding route, staff cost by service, agency cost, and occupancy or places filled. A group with several homes, services or settings gets figures for each one and for the group.
We prepare the annual accounts, file them at Companies House and file the corporation tax return, with capital allowances claimed on equipment, vehicles and building work. The monthly bookkeeping feeds the accounts, so at the year end you review figures you have already seen.
Employer National Insurance is 15% of each employee's pay above £5,000 a year in 2026/27. The Employment Allowance reduces the employer's bill by up to £10,500 a year, and the £100,000 limit on the previous year's National Insurance bill was removed from April 2025.
A provider whose supplies are all exempt generally cannot reclaim the VAT on its costs (VAT Notice 701/2 paragraph 1.4). A provider that also makes taxable supplies, such as staff supplied to another business, may be able to reclaim part of it under the partial exemption rules in VAT Notice 706.
Xero for the books, with payroll run alongside. If you already use other software we look at it with you before deciding whether to move.
The Budget on 29 October 2026 proposed cutting the main pool rate to 12% from April 2027 and raising the first-year allowance to 50% from 1 January 2027. Neither is law yet, and the table of 2026/27 rates shows the current figures.
Buzz Financial Services is a trading style of Equity & General Financial Services Limited, authorised and regulated by the Financial Conduct Authority (FCA 474163).
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Open the calculatorWe look at your last accounts, your VAT position and the capital allowances you have claimed.