4 12, 2021

Should I register for VAT?

By |2021-12-05T18:12:27+00:00December 4th, 2021|Uncategorized|0 Comments

There may come a time when you will start to wonder whether becoming VAT registered will benefit your business. You could reach this point before you even begin trading but it might never cross your mind until your business takes off. Either way, there are a couple of things that you may want to consider before deciding whether registering for VAT is the right thing for you.  It is worth remembering that VAT can be a complex area and it is wise to speak to an accountant first. This is more of a general overview. If your sales have exceeded the VAT threshold or are about to. The VAT threshold is currently £85,000 so if your turnover (total sales) has passed this, then you will need to register for VAT. Also, if you believe that your turnover will pass the threshold within the next 30 days, then you will have to [...]

12 10, 2021

Self Employed: What expenses can I put through my tax return?

By |2021-10-12T10:10:03+00:00October 12th, 2021|Uncategorized|0 Comments

When you start your business, or when completing your tax return, you may wonder what expenses you can claim. Obvious ones are materials purchased to make your products. Here is a quick guide to some of the others. Work from Home These mainly cover light, heating and can be calculated using a percentage of these costs linked to the floor space of your home, or using a daily flat rate amount set by HMRC. If you use internet at home, and your personal mobile for business use, you can also claim a percentage of those costs. Advertising, marketing, stationery, computer hardware and software are also allowable expenses. Out and About If you have a car that you use for business you can either claim a mileage rate of 0.45 per mile or a percentage of the running costs. Business use is considered to be visiting clients, purchasing stock and supplies, a [...]

13 09, 2021

Why Choose a Bookkeeper?

By |2021-09-13T12:36:02+00:00September 13th, 2021|Uncategorized|0 Comments

Many sole traders and small businesses question whether they need the services of a bookkeeper. The obvious concern is cost, especially with all the new cloud based bookkeeping software that are on the market. A lot of them are now offered when setting up a business bank account. They are, however, only as good as the person inputting the information. I have heard many a 'bookkeepers tale' of having to unravel and correct bookkeeping entries, which ultimately proves more costly. Many businesses need to use an accountant for their year end accounts preparation and filing. Using a bookkeeper will substantially reduce an accountants bill. So, advantages of using a bookkeeper: Your paperwork is regularly updated giving you regular information to make financial decisions. You remain compliant with  HMRC regulations and payments. This is especially important with all the changes regarding Making Tax Digital. This is the quarterly reporting of figures [...]

1 09, 2021

Starting a business – Self employed or Limited Company

By |2021-09-13T12:47:02+00:00September 1st, 2021|Uncategorized|0 Comments

I've started a business. Do I set up as self employed or Limited Company? Self Employed Register for self assessment with HMRC. This will inform them that you are self employed and will be completing a tax return at the end of each tax year. You will need to register by 5 October in your business's second year. So if you began trading April 2020 then you have until 5 October 2021 to register, but generally its best to register straight away. One to tick off the list! Limited Company A Limited Company will need to be set up before you start trading as you cannot trade through a Limited Company that does not yet exist. First thing to do is type your new company name into Companies House to check if the name is available. Most accountants will be able to incorporate a Limited Company. If you prefer to do [...]

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