Frequently asked questions
How easy is it to change accountants?
Very. If you decide to work with us, you simply need to give us your previous accountant’s details and we will do the rest.
I have started a business but don’t have a clue about taxes and what to do. Can you help?
Absolutely. Whether you need help with everything accounts-related or specific issues, we can sort it out for you. To make sure you don’t run into any problems or miss any deadlines, give us a call now.
Do I need to manage my own finances, or can you help me with that?
In most cases you can authorise an accountant to act for you – and you can avoid mistakes or misunderstandings if you get professional help. But please bear in mind that you are still responsible for your own tax affairs at all times.
What is a Company Tax Return?
A document that is filed for each accounting period by companies liable for Corporation Tax. It outlines for HMRC how much tax the company needs to pay.
How do I set up in business as a self-employed person?
First, you need to register with HMRC. You can do this online or by phone – you’ll need your National Insurance Number to hand. Once registered, you will receive your Unique Taxpayer Reference (UTR) and HMRC will set up the right tax and National Insurance contributions records. You’ll need your UTR for your Self Assessment tax return, so keep it safe.
When do I need to register for VAT?
If you’re doing business in the UK as an individual, partnership or company, you may need to register for VAT. Registration is compulsory if your annual turnover exceeds £85,000 or you expect the rolling annual turnover to be higher than that amount in the next 30 days.
Do I need to set up a limited company?
If you are trading and don’t use a limited company, you may be personally liable for any business debts. This means that your personal assets or savings could be at risk in any claim made against you.
Trading through a limited company means you limit your liability to the value of the company. This includes any money you have invested in, loaned, or owe to the company. The company has a separate legal identity from its owners and directors. So unless they personally guarantee its debts, they are not usually liable for them.
Some of the advantages of becoming a limited company:
- you can give a share of the business to others
- it may increase your likelihood of obtaining bank loans
- you have more control over how much personal tax you pay, as profits can be built up and distributed in a later year
- it is easier to sell the business
- it can help protect a business name
- increased confidence in your business – people can check your details in Companies House records
The disadvantages are the extra costs of preparing annual accounts, adhering to stricter deadlines and some loss of financial privacy.
How do I set up a limited company?
First, check that the company name you want to use is available at Companies House. Then you need to incorporate the company before you start trading. Give us a call and we can help you with this.
I’ve had a letter from HMRC, what should I do?
Just scan the letter and send it to us. We will take a look and let you know what action, if any, needs to be taken.