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If you operate your business via a Limited Company you’ll likely receive remuneration for your efforts via a salary and dividends. As well as doing all of the filing of accounts and Corporation Tax Returns for your Limited Company, if you have untaxed income such as Dividends upon which Dividend Tax is due, you will need to complete a Self Assessment Tax Return. What is the Self Assessment Tax Return? The Self Assessment Tax return is completed by an individual. It’s the official return to HMRC where all income is reported, a tax calculation performed, an adjustment for the tax…
Accounting and tax is a complicated fact of life that just has to be done. Knowing the rules is always a good place to start to make sure you do what you need to and avoid wasting your valuable time on unnecessary tasks. Here’s our top tips about your sole trader self assessment. Accounts Did you know that there’s no obligation for a sole trader to produce a set of accounts? You do need to keep accounting records but actually summarising the records into a formal set of accounts (profit and loss account plus a balance sheet) simply isn’t necessary.…
Entering the world of self employment and being your own boss is extremely exciting. The one downside is dealing with the bureaucracy and regulation that running a business brings. Whatever the size or structure of your business dealing with your accounts and tax returns comes with the territory. It can all seem daunting and overwhelming at first. Here’s a few tips to get you started. When do I have to register with HMRC? As soon as you start to trade or operate your business you’ll need to register with HMRC. It might not always be clear when your business formally…
Newbies! We’ve mapped out the important stuff you need to read from deciding on your business structure through to how to keep your books, what costs you can claim, what to file & when, important deadlines and how to pay yourself. This is a great starter and a useful page to bookmark! To read each article click on “continue reading”. What business structure? Sole Trader or Limited Company Assess if a limited company structure is best for your circumstances and if you need limited liability or have to operate as a limited company because your end client needs it. Doing…
Many would have seen the recent headlines declaring that Airbnb, eBay, Vinted and other apps will have to share more information with HMRC. There was certainly a huge outcry on social media about the unjustness of this move. Not only this but even News outlets seemed to have got things wrong with Sky declaring “A “side hustle tax” has come into force – targeting Britons who sell second-hand goods online or let out their spare rooms”. That’s wrong! There is no new tax. There is no side hustle tax. The current tax rules remain EXACTLY the same. The only thing…
Right now for many business owners every penny counts. So reviewing what your business outlays are is essential to see if savings that can made. Whilst necessary for keeping on top of your business finances, one cost outlay that often creeps up on people is the amount that they spend on their accounting software. Over time this cost may have increased from your original outlay. You may not even realise that you are paying for software if it is wrapped up in your accountancy fees. How much does software cost? At the time of writing this blog, a quick review…
Those new to self employment completing their Self Assessment tax return for the first time can be left somewhat baffled when their tax bill is much larger than they expected. It happens because after they file their first Self-Assessment tax return, they find out they need to make a “payment on account”. But, what are payments on account and what key things should you know about them? 1 HMRC uses the payments on account system to ensure that it collects at least some of the tax you owe in the current tax year. 2 Payments on account are based on earnings in…
If you are operating a limited company then you probably know that your accounts have to be filed at Companies House nine months after the end of your accounting year end – unless it’s the first year when the filing deadline is 21 months after the date of incorporation. This usually gives sufficient time to get things in order, do the necessary bookkeeping and file the accounts with the authorities. However sometimes people find themselves up against the deadline for whatever reason which means that the prospect of a late filing fine is very real. HACK – how to extend…
Newbies! We’ve mapped out the important stuff you need to read from deciding on your business structure through to how to keep your books, what costs you can claim, what to file & when, important deadlines and how to pay yourself. This is a great starter and a useful page to bookmark! To read each article click on “continue reading”. What business structure? Sole Trader or Limited Company Best advice – keep it simple. Go for a Sole Trader structure unless you need or want limited liability or need to operate as a limited company because your end client wants…
If you are unable to pay your tax bill on time the best course of action is to let HMRC know and agree to set up a “Time to Pay” plan. This can avoid hefty late payment penalties being applied to the balance of tax owed. You will need to keep to the repayment plan agreed. HMRC could make you pay the remaining balance in full if there is a default on the plan. A repayment plan can be set up online or by calling HMRC. See https://www.gov.uk/difficulties-paying-hmrc for further details including how to set up the plan and the…