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...]
Diversity is different in Accountancy
While delighted to be a judge for the Women in Accountancy and Finance Awards, I was intrigued to find that Male Diversity Champion was on my list of categories to pore over. For those of you that don’t know me, I’ve never been shy in flagging up examples of men who fail to support others in the workplace. But I don’t criticise just for the sake of it, and I do … [Read more...]
Coronavirus Support Round Up for Freelancers, Side Hustlers, Small Businesses and the Self Employed
Things are changing at a very fast pace so it may be that as I write this, on the morning of 18th March 2020, it quickly becomes out of date. However me and my team at CheapAccounting.co.uk felt it important to get something out there to our clients and the rest of the Freelancers, Side Hustlers, Small Businesses and Self Employed communities. We’re going to focus on what … [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...]
Nerdy bit – a brief introduction to double entry in less than 600 words
The classic joke amongst accountants is that “Accountants never retire they just become unbalanced”. I say joke – as a comedian I make a very good accountant. Jokes aside the whole system of accounting is based upon a system of double entry bookkeeping where for every debit there is a credit meaning that the books always balance. It’s a neat, tidy and ordered method that … [Read more...]
Make sure you Christmas Party is tax deductible!
Is it too early to mention the "C" word? Hopefully it's not too early for us to share our advice on how to make sure that your Christmas Party is allowable for Tax. Follow these simple rules (applicable to Limited Companies only): The party or event needs to be open to all employees It is an annual occurrence but doesn't have to be at Christmas … [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...]
MBO Partners and Contracting Plus – all under one Umbrella
With the IR35 reforms coming to the private sector in April 2020, organisations who use flexible workers, known as Contractors, need to undertake reviews to ascertain if that worker falls within IR35 or not. What is IR35? Simply put IR35 legislation examines if a worker is engaged as an independent contractor, through their own business e.g. a limited company, or if … [Read more...]
What is IR35?
Travel and subsistence: how much can your limited company claim?
Whether you’re a freelancer, contractor or a small business owner, you may be called upon to work away from your normal base, occasionally or frequently. This will create travel costs for your business, while you’ll also need to feed yourself. But, what are the rules when it comes to claiming for such costs? What travel and subsistence costs are allowed? To be able … [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...]