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When you start your new business there’s a lot to do including getting on top of your accounting and tax responsibilities. This can be a daunting task. So we’ve put together a check list that you can work through to get everything on track. Whilst there is a lot to do at the outset our best advice is to: This guide assumes that you have already made the decision to use FreeAgent as your accounting tool of choice. If you read our blog you’ll know that FreeAgent is what we recommend because you can get it for FREE with a…

These days with the functionality of accounting systems doing away with much of the manual bookkeeping and reconciliations that used to be done, often by your accountant at a fee, most people are now using a Cloud Accounting system. What is a cloud accounting system A Cloud Accounting system is one that is not on your laptop or own device but hosted elsewhere on IT infrastructure set up and managed by the supplier of the system. You access it via the internet from any device, anywhere making it something that you can use on the go as well as in…

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 is made to have mail forwarded from that address to the address of someone dealing with the administrative matters of the company. What address can I use? The registered office must be a physical location…

The Low Income Tax Reform Group (LITRG) explains tax and benefits law for people on low incomes. It has several million hits a year. For those on low or no income and need help with tax then speak to Tax Aid. Both are brilliant helpful resources and they are entirely FREE. There is also Tax Help for Older People. You can make a donation to Tax Aid and Tax Help for Older People via the Bridge The Gap web site.

Starting any business with a friend sounds like a good idea. You’re both full of enthusiasm at the start. It’s great to have company along the hard, difficult road to the launch and running of the business. However all too often the potential pitfalls that can arise in a partnership are overlooked in the keenness to get started. What should you consider Before you launch into your new joint venture it is worth having discussions around the following areas: These are just a few, but not all, of the issues that need to be considered at the outset. What has…

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 to claim for travel costs, you must be travelling to a temporary place of work. That’s somewhere you visit to perform a task for a limited duration or impermanent purpose, for example, a short-term contract (but see 24-month rule…

Before a business gets off the ground there are often a few start up costs incurred. Wholly and Exclusively Such costs can be recorded in the business accounts and claimed against tax assuming that they have been “wholly and exclusively” incurred for the business; that’s the accounting term used for business costs and the test that HMRC will apply to check if the cost can be offset against income in the accounts for tax purposes. Recording them in the books The rule of thumb is that pre-trading costs spent on the business should be treated as incurred on the first…

What is a Self Assessment? A Self Assessment is the Tax Return (referred to by the abbreviation SATR) that self employed people, or those with income not taxed at source, in the UK complete each year. Who has to complete a SATR? You will be asked to complete a Self Assessment Tax Return if you are self employed as a sole trader or in a partnership with gross income over £1,000. You may also need to complete a return if you have dividend income, receive rent, your income is over £100,000 or you have other income that has not already…

It is not necessary to know how to calculate your tax bill as there are a plethora of tax calculators which will perform the calculations for you. Of course the income or corporation tax return provides the calculation when you complete it but often that is well after the period when you should be setting aside the tax. It is useful to know your likely tax bill as you process through your accounting year so that you can set aside the funds to cover this. Here are some useful calculators to use (click on the heading to follow the link):…

Being sent reminders about the returns that you have to file with HMRC and Companies House relies on your contact details being up to date with the authorities. If you don’t keep your details up to date, and miss a reminder, you could risk a hefty fine for late submission of the required returns. If you move house it is essential to make sure that all post is re-directed. That way you will not miss anything important. Postal re-direction, set up at the Post Office, should be done for both the business and personal post. Of course, if you operate…