There are about 5.7m SMEs in the UK, according to government figures. Although most (3.4m) are sole trader businesses (AKA people who are self-employed) and 405,000 are ordinary partnerships, there are 1.9m private limited companies, about a third of the UK’s total business population. When they start a business, for various reasons, many people choose to set up a … [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...]
Five reasons you will need an accountant for your limited company
I have been in the accountancy profession long enough to know that not everyone is a fan of spending their hard earned cash on using us to deal with their accounting needs. However there are a few reasons why I think it is essential to use an accountant to take care of the accounting and tax leaving you to concentrate on running your business …… Can you keep … [Read more...]
What is a Year End?
Your accounting date is also known as the accounting reference or year end date. It is 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 set up as part of the … [Read more...]
What are Accounts?
There are many definitions but simply put your Accounts are the documents showing exactly how your business is performing in financial terms. Every business, whether a sole trader or a limited company, must keep accounts and accounting records (the data that makes up the accounts). Why do you need Accounts? It’s essential to keep your accounts up to date not least so you … [Read more...]
Five Common but INCORRECT myths about accounts and tax
1. I’m only earning a small amount from my business so I don’t need to tell the tax man All business income regardless of how small must be declared in your accounts and on a tax return even if you end up making a loss (income – costs = profit) and / or there is no tax to pay. 2. I’ve spent all the money I’ve made on stock so I’ve no profit and don’t need to pay … [Read more...]
Simple guide to closing a company
Many people set up a limited company with very high hopes of business success. Unfortunately such success is not guaranteed and can elude some, resulting in the need to close the company. If your company is no longer needed, has no debts and has stopped trading then closing the business should be easy and straight forward. In these circumstances the closure of … [Read more...]
5 Rules for Allowable Business Costs
Claiming all your business costs against your profit is essential for ensuring that you pay the right amount of tax. But just what is an allowable business cost? Here are five Golden Rules to follow ensuring that you claim the right costs.... Was the cost incurred wholly and exclusively for the business? If you didn’t have the business would you still have … [Read more...]
10 tips to make sure you get the right accountant for your business
If you are running a business, doing the accounts is an essential part of your operations. Unless you have a background in accounting or tax, keeping up to speed with all of the necessary laws, rules and regulations that you have to comply with can be a drain on your time. Time that you could better spend running your business. Getting an accountant onboard can help; … [Read more...]
New Company – are you sure you know your year end?
Setting up a limited company is very cheap and easy. Getting it wrong can be expensive with HMRC and Companies House being able to impose heavy fines for the late filing of your accounts and tax returns. Do you know when your year end is? Many get confused about what the year end will be for their new limited company. Some think it is 5th April – the same as 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 … [Read more...]
Five Top Tips for Doing Your Own Books
Keeping your books can seem a daunting task. However it is an essential part of running your business. Not only will you have problems later if you ignore your accounts, you’ll be unable to track the progress of your business and put aside money ready for your tax bill at the end of the year. With this in mind here are my top five tips on doing your own … [Read more...]