The 2020 Update: It’s virtually Christmas but what a different one it’ll be this year. As office parties will be off the agenda HMRC have confirmed that: “Festive events for staff will be different during the pandemic, so we’re confirming today that this exemption will also apply to the costs associated with virtual parties – including gifts for consumption at the … [Read more...]
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...]
Important- defer your July Payment on Account
Given the current situation, HMRC are allowing the Payment on Account due on 31st July 2020 to be deferred. No penalties or interest HMRC say that if you’re registered in the UK for Self Assessment and may have difficulty making your 31st July 2020 Payment on Account due to the impact of coronavirus you can defer it without incurring any interest or penalties as … [Read more...]
Setting Up a Limited Company Tips
If you’re thinking of starting out on your self employed journey via a Limited Company, this is an essential read to ensure you avoid some common pitfalls. Formation Houses Setting up a limited company is quick and easy. There’s a huge number of businesses, known as Formation Houses, out there that will form the company for you for a fee. A bit like choosing the best tech to … [Read more...]
Self Employed Key Facts 2020 / 2021
Each year this blog is updated as the tax rates and personal allowance changes. These are the facts and numbers for 2020 / 2021. If you work for yourself or start a business on your own and are operating without incorporating it as a limited company then you are referred to as a sole trader. The term sole trader is interchangeable with being self … [Read more...]
Salary and Dividends for 2020 / 2021
Your profit extraction Strategy from April 2020 While it feels like normality has deserted us, it is that time when I give my regular update on your annual profit extraction strategy. Once again please do bear in mind that this Salary and Dividend blog gives our recommendations for taking a salary and dividends from your limited company. The figures are generic and may … [Read more...]
Why I recommended FreeAgent
It’s hard to watch prime time terrestrial TV these days without an advert popping up for accounting software telling us how to make our accounting and bookkeeping easier. The last ten years or more has seen an unprecedented rise in the use of online accounting software. Starting off small and easy to use, many systems have evolved into function rich offerings with multiple … [Read more...]
Income, Profit, TAX POT and Earnings
Going freelance, starting up your own business or being your own boss means keeping a close eye on finances to make sure things are going well enough for you to be able to take some money out of the business to live on. However, not everything that you invoice and collect from your clients or customers, less your costs, belongs to you. Not all of it is your … [Read more...]
Costs and options for closing your contractor company
The IR35 changes will result in many contractors exiting this sector and seeking full time permanent employment. As a result their Limited Company needs to be finished up and closed down. For most with very straight forward affairs this will be a very simple process and will be cheap to do. For some, and to maximise the tax benefit of Entrepreneur’s Relief, the close … [Read more...]
Self Assessment Tax Due Shocker – How much?
Each year as Self Assessment Tax Returns are prepared and tax calculations made gasps of “HOW MUCH” can be heard around the country. Why is your tax bill a shock? It never ceases to amaze me that many self employed are shocked by their tax bill with little understanding of how much profit (income less costs) they’ve made in the year. Understanding your finances and … [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...]
Can I claim for my clothing?
Emily Coltman from FreeAgent guides you through if you’re able to claim your clothing costs through your business. This blog has been provided by FreeAgent. View the full image at FreeAgent … [Read more...]