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...]
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...]
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...]
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...]
What is a dormant company?
I regularly see the term dormant company used incorrectly. In my experience the term is widely misused and misunderstood. Things like: “Can I declare my company dormant?” “I have a few transactions but want to file dormant accounts” So what is a dormant company? The definition of importance is the Companies House one: A company is dormant if it has had no 'significant … [Read more...]
Just How Do You Start An Accountancy Practice?
Starting any business requires a lot of hard work. An accountancy Practice is no exception to this. As a sole practitioner there are four main routes available to you to get your Practice off the ground: Start from scratch Buy A Franchise Buy a Block of fees Purchase an existing Practice Let’s look at each of these from the view point of the three … [Read more...]
Five top tips for doing your own books
Maintaining your own financial records – AKA doing your books – can seem daunting when you’re new to it. However, it’s an essential part of running your business and ignoring the accounts will lead to big problems later. Start From Day One As soon as you set up your business, start recording your all costs and sales you make. In fact, you may incur costs before you … [Read more...]
Limited Company – Annual Events
When you decided to set up your limited company, whether you were aware or not, as a director of that limited company you agreed to become responsible for a plethora of administration. Here’s a quick explanation of some of the things that you will need to do! An Annual Return This is a snap shot of information about the Company at a point in time e.g. who are the … [Read more...]
Do you understand the 10% tax you pay on dividends?
A question that we are frequently asked by directors of limited companies .... When I pay a dividend what happens to the 10% tax credit on that dividend? Do I need to pay it to HMRC? Answer Companies pay dividends out of profits on which they have already paid (or are due to pay) corporation tax. The tax credit takes account of the fact that corporation tax has … [Read more...]
Don’t just set up a limited company because ….
The rate of new limited company formations is at an all time high. Whilst new businesses are great for the economy, I have to ask have all of these limited companies been set up for the right reasons. I see many a business owner set up a limited company and then run into trouble when the first set of accounts are due. In some cases they really are not aware of what … [Read more...]
A basic introduction to bookkeeping, bank accounts and allowable expenses
Every business needs accounts. They may differ in format and complexity, but every self-employed person must produce accounts to complete their tax return, while limited companies must complete accounts according to the Companies Act. Here are the answers to a few frequently asked questions about start up account keeping. Do I need a separate business bank … [Read more...]
Make sure you Christmas Party is tax deductible!
There seems to be a lot of talk of Christmas parties and celebrations already and it is still weeks until Christmas. So make sure that yours 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 … [Read more...]