What is a Self Assessment? A Self Assessment is the Tax Return (referred to by the abbreviation SATR) that self employed people, or those with income not taxed at source, in the UK complete each year. Who has to complete a SATR? You will be asked to complete a Self Assessment Tax Return if you are self employed as a sole trader or in a partnership. You will also need to … [Read more...]
What Dividends do you put on your Self Assessment?
If you operate your business via a Limited Company you’ll likely receive remuneration for your efforts via a salary and dividends. As well as doing all of the filing of accounts and Corporation Tax Returns for your Limited Company, if you have untaxed income such as Dividends upon which Dividend Tax is due, you will need to complete a Self Assessment Tax Return. What is the … [Read more...]
10 things you should know about payments on account if you’re self-employed
Many self-employed people (AKA sole traders) who complete a Self-Assessment tax return for the first time are left somewhat baffled when their tax bill is much bigger than expected. It happens because after they file their first Self-Assessment tax return, they find out they need to make a “payment on account”. But, what are payments on account and what key things should … [Read more...]
Christmas Tax Allowable Party – time to plan your annual knees up!
Like previous years we’ve updated our allowable costs for your Christmas Party blog. To make sure that the costs for your Christmas Party qualify as allowable there are just a few simple rules to follow. The Rules The party or event needs to be open to all employees It is an annual occurrence but doesn't have to be at Christmas The event mustn’t … [Read more...]
What is a Year End for a Limited Company
The year end for your business is also called your accounting reference date - it's the same thing! It's the date up to which your accounts are prepared and is generally the end of a calendar month although it can be any date. For example 31st December or 31st March. Depending on your business type the year end can be set by you or it could have been already … [Read more...]
Accounting Tips for Start up Freelancers
Entering the world of self employment and being your own boss is extremely exciting. The one downside is dealing with the bureaucracy and regulation that running a business brings. Whatever the size or structure of your business dealing with your accounts and tax returns comes with the territory. It can all seem daunting and overwhelming at first. Here’s a few tips to … [Read more...]
Keep your address up to date with HMRC or risk a fine
Whilst general household admin can be a pain at the best of times, it’s really important to keep HMRC up to date with your contact details or you could risk a hefty fine. All too often we see fines issued by HMRC to those who have not submitted a self assessment in previous tax years. These fines can date back several years and, in some cases, amount to several … [Read more...]
20 things every small-business owner should know about VAT
Value Added Tax (VAT) is one of the UK’s most complex taxes. There are so many rules, regulations and schemes that getting the right advice, at the right time, from a suitably qualified VAT professional, is essential for many businesses. For now, what are the key facts that small-business owners should know about VAT? 1 All businesses must register and account for … [Read more...]
Quick Tax Tip – Avoid making an illegal dividend
When you make a dividend payment from your limited company you need to ensure that you’ve sufficient funds available to do so. Otherwise the dividend could be “illegal” which could cause a number of issues later down the track. How to work out your dividend To establish if you can pay a dividend and how much you can take there are some very simple rules to … [Read more...]
How to reduce a silly amount of share capital
Enthusiasm may have got the better of you when you formed your limited company resulting in an enormously silly amount of share capital being set up and allocated to you. Statement of Share Capital When you form a company you provide a statement of share capital which details the shares that have been issued to, what is known as, a subscriber or shareholder. The statement … [Read more...]
What you need to know about the Trading Allowance for the self employed
With the intention of making life simpler for the self employed (those operating their own business as a sole trader) the Trading Allowance was implemented in April 2017. What is the Trading Allowance? The Trading Allowance is a form of Tax Relief. Whilst introduced with the intention of making life simpler for small earners, any relief brings with it the added … [Read more...]
Planning for a Mortgage when Self Employed
Securing a mortgage can be hard enough at the best of times. Couple that with being self employed and the whole process could turn into a bit of a nightmare unless you’re well prepared. We regularly help clients with providing an accountant’s reference which most lenders will require if you are self employed. This usually shows the last two or three years financial data, … [Read more...]