Key takeaways
What this article covers, in order:
- The question that starts it
- What are nominal codes, in one paragraph
- How the numbering usually works
- The list
- Where the awkward items go
- How to actually use the list
Below is a nominal codes list UK small businesses can copy and adapt, with the code, the account name and a plain note on what belongs in each. It isn't an official list. HMRC doesn't issue one, and different accounting software numbers things a little differently. What matters is that every transaction lands somewhere sensible and the codes roll up into a clean P&L and balance sheet.
The question that starts it
It's a Tuesday afternoon. Marcus, who runs a two-van plumbing firm in Bristol, gets an email from his accountant: "What nominal code did you use for the £86.40 from the trade counter on 14 Sep 2026?" Marcus has no idea. He typed "stuff" in the description and picked whatever the dropdown offered first.
That's the whole reason a nominal codes list exists. Pick the codes once, write down what goes where, and nobody has to guess later.
What are nominal codes, in one paragraph
A nominal code is just a number attached to an account in your books, like 6100 for Rent or 1200 for your business current account. Put all the codes together and you've got your nominal ledger, which most software now calls the chart of accounts. Same thing, older name. The number is there so the accounts sort into the right order and the right report: income and expenses into the P&L, everything else into the balance sheet.
How the numbering usually works
Most UK small-business setups group codes in blocks of a thousand. The pattern below is common, but it's a convention rather than a rule.
| Code range | Group | Report |
|---|---|---|
| 0000 to 0999 | Fixed assets (equipment, vehicles) | Balance sheet |
| 1000 to 1999 | Current assets (stock, debtors, bank) | Balance sheet |
| 2000 to 2999 | Liabilities (creditors, loans, card) | Balance sheet |
| 3000 to 3999 | Capital and reserves | Balance sheet |
| 4000 to 4999 | Income | P&L |
| 5000 to 5999 | Cost of sales | P&L |
| 6000 to 7999 | Overheads | P&L |
Be ready for variations. Some software puts direct costs in the 6000s and starts overheads at 7000. Some uses three-digit codes, so Sales might be 200 rather than 4000. Some hides the numbers and works by name. None of that is wrong. If your software already has a default list, it's usually easier to keep its numbering and borrow the account names and notes from here.
The list
This layout suits a typical service or light-trading business. The codes match the starter chart of accounts we use elsewhere in this series, with a few extras that come up a lot.
Income
| Code | Account | What goes in it |
|---|---|---|
| 4000 | Sales | Your main income from customers |
| 4010 | Sales: second stream | A separate line you want to track, like training or online sales |
| 4900 | Other income | Bank interest received, one-off sundry income |
Cost of sales
| Code | Account | What goes in it |
|---|---|---|
| 5000 | Materials and stock purchases | Things you buy to sell or build into a job |
| 5100 | Subcontractor costs | People you pay to do part of the customer's job |
| 5200 | Delivery and carriage out | Postage and couriers for goods sent to customers |
Overheads
| Code | Account | What goes in it |
|---|---|---|
| 6000 | Wages and salaries | Gross pay for staff, if you employ anyone |
| 6100 | Rent | Rent on premises |
| 6110 | Business rates | Rates bills from the council |
| 6200 | Light, heat and power | Gas, electricity, water on business premises |
| 6300 | Insurance | Public liability, van, contents, professional indemnity |
| 6400 | Repairs and maintenance | Fixing things you already own |
| 6420 | Small tools and equipment | Low-cost tools that won't last years |
| 6500 | Motor fuel | Fuel for business vehicles |
| 6510 | Motor repairs and servicing | MOTs, servicing, tyres |
| 6600 | Travel and subsistence | Train fares, parking, hotels on business trips |
| 6700 | Telephone and internet | Mobile contracts, broadband |
| 6710 | Software and subscriptions | Apps, cloud storage, booking tools |
| 6720 | Postage, printing and stationery | Office post, printer ink, paper |
| 6730 | Professional memberships | Trade body and professional fees |
| 6800 | Advertising and marketing | Ads, leaflets, website promotion |
| 6900 | Accountancy fees | Your accountant or bookkeeper |
| 6910 | Legal and professional fees | Solicitors, consultants |
| 7000 | Bank charges | Monthly account fees, transaction charges |
| 7010 | Payment processing fees | Card machine and online payment fees |
| 7100 | Loan interest | The interest part of loan repayments only |
| 7200 | Depreciation | Usually posted by your accountant at year end |
| 7300 | Bad debts | Invoices you've written off as uncollectable |
| 7900 | General expenses | The odd item that fits nowhere. Keep it tiny |
Assets
| Code | Account | What goes in it |
|---|---|---|
| 0010 | Equipment (cost) | Tools and machinery that last several years |
| 0011 | Equipment (accumulated depreciation) | Running total of depreciation on 0010 |
| 0020 | Motor vehicles (cost) | Vans and cars owned by the business |
| 0021 | Motor vehicles (accumulated depreciation) | Running total of depreciation on 0020 |
| 0030 | Computers and office equipment (cost) | Laptops, phones, desks |
| 0031 | Computers (accumulated depreciation) | Running total of depreciation on 0030 |
| 1000 | Stock | Goods on hand at the period end |
| 1100 | Trade debtors | Customers who owe you |
| 1110 | Prepayments | Bills paid in advance for a later period |
| 1200 | Business current account | Your main bank account |
| 1210 | Business savings account | Any savings or deposit account |
| 1230 | Petty cash | Cash in the tin |
| 1240 | Payment provider clearing | Money sitting with a card or online payment provider before it reaches the bank |
Liabilities
| Code | Account | What goes in it |
|---|---|---|
| 2100 | Trade creditors | Suppliers you owe |
| 2110 | Accruals | Costs you've incurred but not yet been billed for |
| 2150 | Customer deposits | Money taken up front for work not yet done |
| 2200 | VAT control | Only if registered. Your accountant decides what goes here |
| 2210 | Payroll liabilities | Only if you employ people |
| 2300 | Business credit card | The balance on the card |
| 2400 | Bank loan | The capital part of any loan |
| 2500 | Director's loan account | Limited companies only |
| 2900 | Suspense | Temporary home for unknowns. Clear it monthly |
Capital
| Code | Sole trader | Limited company |
|---|---|---|
| 3000 | Capital introduced | Share capital |
| 3100 | Drawings | Dividends |
| 3200 | Retained profit | Retained earnings |
That's a little over 50 codes, and it's meant as a menu to trim. Plenty of businesses use fewer. A freelance designer with no staff, no van and no stock could happily delete a third of them.
Where the awkward items go
These are the ones people search for at 10pm with a receipt in their hand.
| You bought or paid | Usual code | Why |
|---|---|---|
| A £35 set of screwdrivers | 6420 Small tools | Cheap, won't last years |
| A £1,900 pressure washer | 0010 Equipment | Lasts years, so it's an asset |
| Council business rates | 6110 Business rates | Its own line, separate from rent |
| Loan repayment of £450 | Split: 7100 and 2400 | Interest is a cost; the rest repays the loan |
| Payment for the owner's groceries | 3100 Drawings (sole trader) or 2500 (company) | Not a business cost |
| A refund to a customer | 4000 Sales (reduced) | It reverses income, it isn't an expense |
| Card machine fees taken from takings | 7010 Payment processing fees | Record gross takings and the fee separately |
| A payment you can't identify yet | 2900 Suspense | Temporary only |
Where the line falls between a cheap tool and an asset is partly judgement. If something's expensive and you're unsure, ask your accountant once and write their answer on your list.
How to actually use the list
A list in a drawer does nothing. Here's how it earns its keep.
- Trim it before you start. Delete codes you'll never use. Fewer choices means quicker, more consistent categorising.
- Add a "what goes here" note to anything ambiguous. The third column above is the bit that saves arguments. Marcus now has "trade counter consumables = 5000 if for a job, 6420 if for the van shelf".
- Categorise from the bank, not from memory. Work through bank transactions weekly or monthly and give each one a code from the list.
- Check the P&L for oddities. If Motor fuel is £40 one month and £900 the next, something's been miscoded.
- Keep General expenses under a few percent of costs. If it's growing, there's an account missing.
- Change the list at year end, not mid-year. Renaming or merging halfway through the year makes the earlier months hard to compare.
Leave gaps in the numbering
The list jumps from 6110 to 6200 on purpose. If you later need "Uniforms" or "Waste removal", slot it in at 6430 or 6440 beside similar costs rather than tacking it on at the end.
How HelloBooks helps
In HelloBooks you connect your bank through Open Banking (most UK banks and cards), or import a CSV statement. Transactions land in a review list where you confirm or change the category for each line, so your list gets used the same way every time. On Pro, AI auto-categorisation suggests a category for you; if AI credits run out, categorisation pauses and the books keep working.
Your P&L, Balance Sheet and Cash Flow reports, all on the Free plan, roll up from those categories. You can also invite your bookkeeper or accountant into the same books, which beats emailing about one £86.40 receipt. See the bookkeeping features or compare plans.
FAQs
Is there an official HMRC nominal codes list?
No. HMRC doesn't issue a list of nominal codes for businesses to follow. Numbering is a bookkeeping convention, and it varies by software.
Are nominal codes the same as a chart of accounts?
Yes. The nominal ledger is the traditional UK name, and the codes are the numbers on each account. Most modern software calls the whole list a chart of accounts.
What is the nominal code for business rates?
There isn't a single fixed number. In the list above it's 6110, sitting under Rent. Use whatever code your software gives its rates or premises account.
Should I use my software's default codes or this list?
If your software already has a default list, keep its numbering. Use this one as a check that nothing is missing and to write the "what goes here" notes.
How many nominal codes does a small business need?
Usually between 25 and 50. Enough that your reports answer real questions, few enough that you can pick the right one quickly.
Print the list, cross out what you don't need, and stick it next to wherever you do your books.
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