Accounting can be very complex with new laws and regulations changing frequently. The best way to be kept informed and make sure you are complying with tax and business finance rules is to book an appointment with us.

Below are some frequently asked questions that you may find useful.

Frequently Asked Questions

HMRC calculators and tools to help you work out your tax.

Which structure should I register my business? 

There are three main structures which can be used to run your business.

Sole-Trader – The easiest, fastest and usually most popular for new start-ups.

  • If you’re a sole trader, you run your own business as an individual and are self-employed.
  • You can keep all your business’s profits after you’ve paid tax on them.
  • You’re personally responsible for any losses your business makes.
  • You must also follow certain rules on running and naming your business.

There are a list of guidelines to see what counts as self employed this can be found here 

Limited Company – A separate legal entity. Involves greater administrative responsibilities.

  • Is legally separate from the people who run it.
  • Has separate finances from your personal ones.
  • Can keep any profits it makes after paying tax.

Partnership – A company that is operated by 2 or more people

In a partnership you and your partner (or partners) personally share responsibility for your business. This includes:

  • Any losses your business makes
  • Bills for things you buy for your business, like stock or equipment
  • Partners share the business’s profits, and each partner pays tax on their share.

Click here for further details on the different structures.

Do I need to pay V.A.T.? 

If you are a company, partnership or sole-trader. You must pay VAT if your turnover exceeds £85,000 within a rolling 12 month period.

We are able to advise you about V.A.T. and schemes which may suit your business.

What can I include as a business expense?

Business expenses include the various running costs of your business. Tax is calculated and payed according to your profit. So when you incur expenses this amount is removed before you are taxed.

Business expenses include various purchases such as

  • Travel expenses
  • Mileage
  • Office
  • Office equipment
  • Telephone
  • Travel

You may only be able to claim for certain expenses depending on your circumstances.

You can find more information on allowable expenses here.

How do I employ someone?

If you are going to be employing staff or contractors you will need to register as an employer with HMRC

This is also the case even if you are employing yourself as the director of your company.

When you register as an employer you will get an employer PAYE reference number. Registration must be made before the first pay date. You can register up to 2 months before you start paying the employee.

Contact us to find out how we can arrange this for you.

When is my tax return due?

Tax returns are due at the end of each financial year. HMRC must receive your tax return as well as any money you owe by the deadline otherwise you may incur a fine. You can check deadlines here

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