Tax / Accounts

Small businesses look to be facing very precarious times for at least the next year. The pandemic of 2020 has brought with it serious financial uncertainty and a global recession that it will no doubt take a while to recover from.

Arguably, it is more important now than it has ever been for businesses to ensure that their finances are in order. (more…)

The Government has made significant financial contributions to British business since the outbreak of COVID-19, however, now the country is reopening, it will want to recoup as much of its £330bn investment as possible through taxation. It is therefore critical that businesses are on top of their tax liabilities to ensure they don’t land themselves with a HMRC tax investigation and subsequent fines. (more…)

We now know that although the lockdown is being slowly lifted there are still plenty of businesses that will remain closed or at best will operate at a reduced capacity.

Unless you are one of the lucky ones doing really well during lockdown, you may be wondering how you will survive. (more…)

So it’s February and chances are you’ve just paid your personal tax bill. Having already paid your corporation tax.

As a small company director, it’s always useful to look at your combined tax bill (both personal and company) to ensure you’re not robbing Peter to pay Paul. So we asked Jonathan Amponsah of The Tax Guys to uncover ways you can reduce your tax bills and boost your cash balance this year. (more…)

It’s Christmas! Well, nearly – and that means festive gifts and the goodwill. If you’re smart, your generosity can be tax deductible, so we asked Jonathan Amponsah of The Tax Guys to explain how you can claim some Christmas tax reliefs, and reduce your tax bill whilst still keeping the taxman happy. (more…)

If you are a limited company shareholder, you may have to pay tax on any dividend income you receive.

Here’s how company dividends are taxed and how you calculate the amount of tax due on dividend income. (more…)

In recent years there has been a big rise in the number of individuals working for themselves.

Becoming self employed is a new and exciting chapter of life, but it does come with extra responsibilities. With so much to think about, we asked David Genders, author of The Daily Telegraph Tax Guide to explain the key financial and tax points you need to consider when going self-employed. (more…)

If you’re starting a new business, then the bookkeeping requirements are unlikely to be at the forefront of your mind. At this stage there are more pressing things for you to think about.

However, once your business is taking shape, you will need to start thinking about keeping up-to-date and accurate accounting details of your income and expenses. But what kind of records do you need to keep? (more…)

If you are dealing with a new customer or supplier and want to check whether the VAT registration number (VRN) they have supplied is valid, there are two ways you can do so.

One method is to call the HMRC VAT Helpline, the other is to use the online VAT Information Exchange System (VIES) run by the European Commission. (more…)

Small business accounting software has changed massively in recent years. Thankfully, the advent of cloud computing has consigned the days of buying book-keeping software in a box and installing it on your own computer to history. (more…)

9 out of 10 company car drivers in the UK admit to having submitted inaccurate mileage claims in the past, according to a recent survey by Flexed.

Inaccurate mileage claims can cost businesses in inflated expenses claims and also bring the potential for fines from HMRC. So how can businesses ensure mileage records are accurate? (more…)

You have a small business and you want to keep costs low including book keeping and accountancy fees. But gradually those pesky invoices and receipts begin to take up your evenings and weekends.

So we asked Jonathan Amponsah CTA FCCA, of The Tax Guys, to reveal how you can save time and money on preparing and submitting your annual company accounts. (more…)

Making Tax Digital (MTD) is arguably the biggest change to the UK’s tax system for a generation, so here’s a quick walkthrough of what MTD means for small businesses, together with five practical steps to help you tackle the changes. (more…)

Many new business owners can struggle to get to grips with the numbers behind their business. However, your accounts can reveal so much about your business and getting your head around them will help you make the right decisions. Here, Jonathan Amponsah CTA FCCA, of The Tax Guys explains the key numbers to look out for in your company accounts, and what they can tell you about your business. (more…)

In light of the launch of the Certificates of Tax Position tool, there has never been a more important time for entrepreneurs to be aware of the risk on any undeclared offshore income or gains.

We asked Mark Wilson, a Partner at Richard Nelson LLP and specialist in resolving tax investigations, to explain what entreprenurs need to know about Certificates of Tax Position, and the steps to take. (more…)

Savvy entrepreneurs seem to make more money, yet find legal ways to optimise their taxes. So what do they know, and do differently to cut their tax bills?

We asked Jonathan Amponsah CTA FCCA, of The Tax Guys, to explain how some entrepreneurs manage to keep more of their hard-earned cash. (more…)

For any small business, making sure invoices are paid can be a big job in itself. If they’re not managed properly, payments can be consistently late, and your relationships with clients might suffer as a result.

Even more significantly, you’ll struggle to keep cash moving smoothly through your business. No cash, no business. (more…)

If you need to submit a Self-Assessment Tax Return (SATR) it’s imperative you get it in on time and free of any mistakes. There are penalties for not submitting your tax return on time and you may have to pay a fine if HMRC deem you have not taken enough care in completing it.

This article explains how to get started with your tax return, and how to avoid common mistakes that people make on their self assessment tax return. (more…)

Value Added Tax (VAT) is a tax on the final consumption of certain goods and services in the home market but is collected at every stage of production and distribution. Most business-related goods and services will therefore be subject to VAT.
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The area of tax for small businesses is not straightforward, in fact it can be a real minefield for the unwary. However, if you take a little time, and work with your accountant, it’s usually possible to find ways to save some tax.

To help you think about ways you and your business could pay less tax, we’ve asked Simon Cox of Forbes Watson Accountants to share 10 of the best ways small business owners can look to pay less tax. (more…)

In this guide, we look at the taxes you will encounter if you start your own business as a sole trader, and other things you should bear in mind before taking the plunge and becoming self employed. (more…)

Increasing cash flow and being tax-efficient are usually near the top of every small business owner’s agenda. One way to achieve both these aims is to take advantage of the various tax incentives available to businesses.

However, small businesses often miss out on these tax breaks because they either don’t know what they’re entitled to, or can’t find the time to make a claim. So to help you save time and money, here are five tax incentives and tax relief opportunities small businesses can take advantage of; (more…)

If you’re starting to employ people in your business, mastering payroll is going to become an essential part of your business. Get it wrong and you risk unhappy employees and potential penalties from HMRC.

There’s a lot more to it than simply paying staff money. So we’ve put together this guide to help you get it right and stay in line with what HMRC expects. (more…)

From IT and recruitment, to marketing and sales, it’s safe to say as a startup you have a million and one things to do to get your business up and running.

Finding time to devote to accounting and financial matters isn’t always at the top of a startup’s list of priorities. Nonetheless submitting annual accounts is mandatory for any business and being on top of your  finances will help your new business succeed so it’s something you want to get done quickly and efficiently. (more…)

VAT is one of the more complex accounting practices you’ll have to undertake as a business, which is why it can help to make it as simple as possible.

The Flat Rate VAT scheme does exactly this and, if you’re eligible, could save you the headache of unnecessary work. (more…)

Once upon a time, not too long ago (up until 6 April 2011 to be exact), employers could force workers to retire at 65. However, since the abolition of the Default Retirement Age, you can continue to work well after 65 if you choose to.

Many business owners enjoy working, and do continue working after retirement age, but what if you do not want to work after the age of 65? (more…)

Wrestling with your accounts is certainly not the highlight of working for yourself, but getting your finances right is an important part of being self-employed.

Claiming business expenses can help you to cut your tax bill but, knowing what, and how much you can claim for isn’t straightforward. Fortunately, HMRC allow the self employed to use ‘simplified expenses’ to claim certain allowable business expenses without having to make complicated calculations. (more…)

National Insurance is a deduction from earnings, set up originally to fund various State benefits such as the NHS, the State pension and other welfare-related schemes.

In reality, it is just another tax. In fact, as standard income tax rates have remained constant for many years, NI rates have soared.

In this guide we look at how National Insurance works, and what your National Insurance Contributions (NICs) will be as a small business owner. (more…)

Whether you’re a sole trader, a partnership or a limited company, you may be paying more tax than you need to, and you won’t be alone.

Many business owners don‘t realise that the expenses they can claim against income go beyond rent, rates, equipment, marketing, insurance and salaries. How about food, holidays and school fees?

To help find out if you could cut your tax bill, we’ve asked Jonathan Amponsah of the The Tax Guys to explain more about some of the less well known business expenses you can claim. (more…)

For many small businesses, finding an accountant is both crucial and a bit daunting. It seems, at least from afar, that accountants are pretty much all the same and yet most small business owners know in their heart of hearts that is not the case.

While selecting an accountant can be a vexing process, especially if you are a new business startup, it’s much simpler if you approach it systematically and ask the right questions. So to help you find the ideal accountant for you and your business, here are the 15 questions you should ask before hiring an accountant; (more…)

To clarify the various tax rates, thresholds and allowances that self employed workers, business owners and company directors need to be aware of for tax calculations, here is ByteStart’s summary of the main tax rates, tax bands, and tax allowances for the tax year from 6 April 2016 to 5 April 2017.

These are the rates and thresholds that you will need to use for completing self assessment tax returns for 2016/17.

The deadline for filing a paper tax return for the 2016/17 tax year is 30 October 2017. If you are completing your self assessment online, you have until 31 January to submit your return.

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Cash flow is arguably one of the most important parts of managing your small business. So any tax incentives, or potential tax relief opportunities which are available should always be grabbed with both hands.

But then, you often hear stories about how great these incentives and reliefs are, only to find that there are lots of conditions and qualifying factors, which mean you can’t actually benefit from them.

Thankfully, Research and Development tax relief isn’t like that. As long as you are genuinely investing in R&D projects, there’s a great opportunity to cut your corporation tax bill, or even get tax credits from HMRC in the form of an actual cheque!

So, what do you need to know about Research & Development Tax Relief Incentives? (more…)

Personal Liability Notices or PLNs first came into effect in April 2009.

Originally, PLNs were predominantly used by HMRC to tackle “phoenixism”, where the assets and the operations of an insolvent business that has run up significant tax debts are transferred to a new company operated by the same management team that has a history of non-payment of tax liabilities. However, HMRC’s use of PLNs is now increasing. (more…)

Government measures announced last year by the Chancellor to tackle tax avoidance schemes appear to be paying off.

A recent illustration of this is HMRC’s high profile win in the Supreme Court against Rangers FC and its use of Employee Benefit Trusts (EBTs) to pay staff.

More than £47m was paid to dozens of staff members and players in tax-free loans, however HMRC successfully argued that these weren’t loans, but taxable income.

If you, or your business, have used tax avoidance schemes in the past, you could soon be receiving an Accelerated Payment Notice (APN) from HMRC. So what should you do if you receive an APN? (more…)

Significant changes to UK salary sacrifice schemes have now been implemented. Affecting both employers and employees, these changes essentially remove the tax incentives of many of the benefits in kind (BiK) offered under salary sacrifice arrangements.

With, the new salary sacrifice rules reducing the tax benefits of salary sacrifice schemes, here’s what small businesses need to know about the changes and how they affect employers and employees. (more…)

When you’re trying to work out how well your business is doing, one of the most powerful tools in your financial arsenal is your profit and loss account (P&L).

This is a simple set of figures that will give you a summary of what your business has spent and sold, normally in a 12 month period.

Crucially, a P&L statement will tell you how much profit or loss your business has made so it’s useful to have a good grasp of it.

Here’s an overview of Profit & Loss Accounts for a small business owner.
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