As an accountant in practice I am often amazed by some of the myths which exist about Accounts and Tax. I am not sure where these myths come from but the sentence usually starts with “my friend down the pub told me ……..” Sounds familiar? Here are my top five accounts and tax myth busters starting with: There are ways to pay no tax if you set up a limited … [Read more...]
Do you know how to produce an invoice?
It might seem simple, but if you’ve never produced an invoice before, how would you know what to include? Should I include the word ‘Invoice’ in big letters at the top? All invoices should be clearly marked with the word ‘invoice’ to make it obvious to the recipient that it is a request for payment. Using sufficiently large letters at the top of the page is a good … [Read more...]
How to organise your Limited Company costs and expenses
If you operate your business through a Limited Company it's essential that your mindset shifts to thinking of the company as something completely separate to you; it is a separate legal entity recognised in law. In reality this means that you must not treat the Limited Company's money or its bank account as your own; so you need to get organised. Here's how .... Business … [Read more...]
Are you ready to be a director?
Are you ready to be a director? Setting up a limited company is very cheap to do and has become an easy option for many to adopt when starting their own business. Being a director brings with it certain duties and responsibilities. Are you ready for that? Let’s explore what you need to know. Perception All too often the perceived importance of owning a limited company … [Read more...]
Getting the most from your Accountant
Paying your accountant can seem like a big outlay; it’s an overhead that bites into your profits meaning less money for you to take out of the business. It could be that you are paying your accountant to simply make a list of your transactions, upload files to a Cloud Accountancy system or file returns that you could do yourself. There are ways of reducing your … [Read more...]
Start to trade – what does that mean?
When you start a business you must register with HMRC. Generally HMRC say that you have to register your business when you start to trade although they do not provide a strict definition of what they actually mean by start to trade. For a limited company HMRC consider the company to be active if it's carrying on business activity, trading or receiving income. This is … [Read more...]
What is a registered office?
A registered office address is the official address of a limited company. It is the place where Companies House and HMRC will often send notices, letters and reminders but it does not have to be the main place of business. Every limited company must have a registered office. It is imperative that the registered office address is kept up to date and that an arrangement … [Read more...]
Make sure your Christmas Knees Up is tax deductible
It's just a few weeks until Christmas; so many of you will be thinking of your annual Christmas shindig. Make sure that your company party is tax deductible by following a few simple rules. The party or event needs to be open to all employees It is an annual occurrence It doesn’t cost more than £150 per head If you meet the above criteria then the party if … [Read more...]
How to file a Confirmation Statement Video
As of 30 June 2016 the Confirmation Statement replaces the Annual Return. If you own a limited company you need to file a Confirmation Statement at least once a year – even if your company is dormant. There are serious consequences for not doing this including the risk that the company could be struck off. The Confirmation Statement confirms that all of the information … [Read more...]
What is An Accountant?
Did you know that anyone can call themselves an accountant? Unlike solicitors who have to be a member of the Law Society to be able to use the term “Solicitor” anyone can attach the title of Accountant to their name without challenge or regulation. They do not need to: Have any accountancy qualifications Belong to an accounting professional body Have passed any … [Read more...]
IT Contractor Dividend Tax Key Dates
From 6th April 2016 the way that dividends are taxed has changed. As a result of this tax change the vast majority of IT Contractors will be worse off. Not only that but many who have paid no additional tax on dividends before will now need to set aside funds to pay the tax due on the dividends received as a result of this change although they won’t need to make any tax … [Read more...]
How to deal with out of pocket expenses
On a day-to-day basis you are likely to incur some out of pocket expenses such as parking charges, business mileage, train fares, stationery and so on. These costs can be claimed back from the limited company. The best way to deal with these is to use the company credit or debit card; that way the cost will automatically be picked up by the company and there will be … [Read more...]