Year End Accounts for Self-Employed
Whether
you keep your business records manually (paper or computer spreadsheet)
or on a recognised computer software program we are able to prepare
your annual business accounts which will form the basis of your
self-assessment tax return. Many persons new to self-employment
often think that their annual accounts are the same as their tax
return. They are not, and are two separate and equally necessary
documents.
As
your business grows you may need to upgrade your record keeping
methods and we can help install and implement industry-stands systems
such as QuickBooks and Sage to help keep you in control of your
growing business.
Allowing
us to prepare your year-end accounts will not only relieve you of
a time-consuming and stressful chore but will also mean that you
expenditures will be reviewed to ensure that you maximise your allowable
claims for tax relief, and we can advise you in good time of anticipated
tax liabilities and opportunities to reduce them, so that you can
effectively plan your business cash needs.
Partnership Accounts
As
a business grows sometimes additional persons are invited to participate
on a joint-ownership basis, often supplying additional working capital
and personal resources. These are known as partners and the business
as a Partnership. A Partnership is required to complete a separate
Partnership Tax Return and submit this to HMRC. The income reported
on the Partnership Tax Return
Limited Companies
It
may be better for you to trade through a limited company. There
are advantages and disadvantages and whether it is right for you
depends on many factors. Making the wrong decision could be an expensive
mistake and it is essential to take professional advice right at
the start of your business venture. We are happy to advise you on
the best business structure for your needs, and if a limited company
is appropriate then we can complete the necessary legal formation
arrangements and form the company for you, usually with 24 hours.
Once
you have formed your company you may need to register it for VAT,
set up a PAYE scheme for the directors and any employees, open a
bank account, set up accounting systems, comply with Companies House
filing requirements, notify HM Revenue and Customs of your companies
existence and commencement of trade, and comply with may other regulations.
We can help you navigate this maze, meet your obligations, and help
you to make your business successful.
Company Secretarial Services
We
can maintain all of the necessary legal records for your company
on our digital systems, facilitating ready completion of company
forms and notices, and filing them electronically at Companies House
where required.
Company Accounts
We
run IRIS financial accounting and tax compliance software systems
so that your company accounts are prepared to the highest standards
and comply with the requirements of the Companies Acts. As part
of our dedicated service for smaller companies we will additionally
prepare abbreviated copies of your annual accounts and file them
electronically at Companies House, ensuring that you meet the time
deadlines for filing accounts. These abbreviated accounts are designed
to only show the minimum information required by law for public
disclosure.
Company Tax
We
will calculate your company tax liability and advise you where it
is possible to reduce this so that you pay no more tax than is required
by law. We will prepare your company's annual tax return and submit
it electronically to HM Revenue and Customs. We can also assist
you in preparing any necessary employee benefits returns (P11D),
meeting your PAYE obligations, and in electronic filing of your
VAT returns.
Value Added Tax
Not
every business is required to be registered for VAT. Some types
of business cannot be registered, and for others it may be voluntary.
Often it is compulsory. We can advise you on whether you need to
register, and if it is voluntary whether it would be beneficial
for you. There are also many VAT "schemes" designed to
make accounting for VAT easier for you and we can advise you on
which one is right for you (if any).
Regular bookkeeping
Whilst
we encourage all clients to maintain good accounting records and
can assist you in setting up the right computer recording systems
for your business, we recognise that may smaller businesses do not
have the resources to completely manage there own systems. With
our Finance Manager package we will maintain your regular bookkeeping
on our systems, prepare your VAT Returns and submit them electronically,
and if required also prepare your regular weekly or monthly payrolls.
Self-Assessment Tax Returns
All
self-employed persons and many employed individuals are required
to submit an annual self-assessment tax return by 31st January next
following the end of the tax assessment year (ending on 5th April).
If your accounts are prepared by us the process of transferring
your accounts details to your tax return is carried out automatically
by our software systems, reducing the chances of error. Of course
we rely on you to tell us of any additional sources of income such
as interest, dividends, rental income, etc, and any payments qualifying
for tax relief such as payments to charities under Gift Aid. Once
all of these details are recorded in our systems we will prepare
a copy of your tax return in PDF format together with an easy-to-understand
text summary of the details included in your Return and a summary
of your taxable income for the year and the tax paid or payable
on it. We will send this to you via your personal LightBox folder
for your to approve, following which approval it will be transmitted
electronically to to HM Revenue and Customs. We receive an instant
acknowledgment of receipt from HMRC so we can be sure that it has
been received and that you have met your filing obligations.
Tax Enquiries
It
is possible that the Inspector of Taxes may decide to look more
closely at your tax affairs. There are many reasons why this may
happen and it is part of the normal process of Self-Assessment.
The Inspector may need to satisfy himself that your business records
provide sufficiently reliable information to be the basis of an
accurate calculation of your tax liability. You may have had an
unusual transaction in the year (such as a significant payment on
termination of employment) and the Inspector may want to make sure
that it has been correctly dealt with.
Whatever
the cause or reason for the enquiry, whether it is in respect of
company tax, personal tax, or VAT, we can help you to answer the
enquiries and ensure that you are not charged an incorrect amount
of tax.
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