PO Box 1372
Bristol BS39 6WD
Telephone: 01761 451244
Telephone: 01761 451244
Don't miss those important financial dates for your business...
Simply register your email address and we'll send you an email with those important financial dates for the month ahead.
This can include dates for things like PAYE, CIS, VAT, Self-Assessments, Financial Year Ends and Corporation Tax.
Latest Blog Post
Do you know about the increases to tax thresholds and rates due in April 2018?
As part of the 2018 budget, announced by The Chancellor on 22nd November last year, we see a raft of
increases in Tax Thresholds and Rates, starting 6th April 2018.
When you have been in the finance business as long as we have, you amass a great depth of knowledge, which is why clients turn to us with their accounts related questions.
Over time, we've noticed certain questions are more popular than others, so we've included a selection here.
If you don’t find the answer to your question, please drop us an email or call us on 01761 451244.
Do I need a bookkeeper?
Trying to keep your paperwork up to date, whilst working full time can be a struggle and is often not cost effective. Having a good bookkeeper means you can be confident accounting policies are being adhered to. Your bookkeeper should be able to provide you with valuable information to help you run a successful and profitable business.
What’s the difference between a bookkeeper and an accountant?
A bookkeeper records the day-to-day financial transactions for a business including purchases, sales and payments. They carry out bank reconciliations and produce, reconcile and file VAT returns. Entries are made into ledgers and culminate in a trial balance. A good bookkeeper will also prepare interim financial statements and internal reports. An accountant focuses on the bigger picture by building on the information provided by the bookkeeper. They produce the year end financial statements, calculate taxes due, provide tax planning and, where necessary, produce statutory accounts and tax returns.
What’s the best accounting package to use?
It all depends on your requirements. It’s worth signing up to a cloud accounting package as opposed to using a desktop version, as it makes sharing information with your accountant much easier and of course, you are able to access the information from anywhere, as long as you have internet access. It also comes down to how much you want to pay each month, packages range from ‘free’ upwards. In a lot of cases though, you get what you pay for so do your homework.
I’m a new employer, what do I need to do?
There are a number of things to consider when employing someone, for example, the minimum wage, whether your new employee is allowed to work in the UK and their statement of employment. You will need to register with HM Revenue & Customs as an employer, take out employers’ liability insurance and check on your staging date for auto enrolment.
What’s the difference between self-employment and a limited company?
When you are self-employed, you work for yourself as opposed to a company. You must register with HM Revenue & Customs for self-employment and you will be taxed on any profits you make. You must file a self-assessment each year and pay income tax and national insurance. As a self-employed person, any money in the bank account, after your taxes have been paid, is yours. If you set up a limited company, you are a director and/or shareholder. The business must file statutory accounts and confirmation statements with Companies House and file tax returns. As a director, you would still need to complete a self-assessment and pay tax and national insurance but the money in the bank account is not yours, it belongs to the company.
Do I need to inform HMRC when I set up a limited company?
No. Companies House will inform HM Revenue & Customs when a new company is registered. HM Revenue & Customs will write to your registered office address with your company’s unique tax reference. This reference is important so you should keep it safe as you will need it every time you speak to HM Revenue & Customs.
Do I need to register for VAT?
You must register for VAT when your business turnover goes over the current threshold, although you can register voluntarily. When you register for VAT there are a number of different schemes, the most common being cash accounting, standard/accrual accounting and flat rate. If you choose the flat rate scheme, you must apply to HM Revenue & Customs to join. To leave the flat rate scheme, you must write to HM Revenue & Customs and they will confirm your leaving date. You must then wait at least 12 months before you can rejoin the scheme.
How long do I need to keep paperwork?
A limited company should keep records about the company for the whole life of the company. As far as the tax records are concerned though, it is generally recommended that you keep them for at least 6 years. Some types of tax don’t require you to keep the records for that long, for example PAYE and CIS records, which only need to be kept for at least 3 years, but if you keep all financial records for at least 6 years, you will more than likely, be covered. We would urge you however, that as you sign up to new taxes, you check the up to date legislation.