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Accountspoint

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FAQ’s

General FAQ’s

This depends on your business and which services you require. At Accountspoint, we do not waste time and money having unnecessary meeting with clients at expensive offices. You will find our charges comparatively inexpensive, however quality of our work is in no way compromised.
We will carry out as much or as little work as you require. Typically we would include bookeeping, VAT returns, payroll, monthly and year end accounts, corporation tax and self assessment calculations.
You will be provided with a direct telephone number and email address.
No. You will not be tied into a minimum contract period; should your circumstances change you are free to leave at any time without penalty. If you require your company to be closed down you will not be charged any extra fees.
We would normally arrange an initial meeting to get to know you and your business and to answer any questions you may have (we can receive your information by phone or email, if you wish).
… it couldn’t be easier.
Step 1
We will need to contact your existing accountant (if you have one) to obtain all your accounting paper work. To do this, all you need to do is sign an authorisation letter which we send to you.
Step 2
We will then write to your existing accountant and ask them for a copy of your file.
Step 3
Once we have received the response from your accountant we are good to go.

 

Business FAQ’s

If you are a company director your earning may be a combination of salaries and share dividends; your accountant can advise on the best way to reduce your overall tax liabilities. Bank payments for salaries and dividends should be kept separate.

If you are a sole trader or partner of your business you take your earnings as straight drawings from your business to your personal bank account.

You can declare and pay dividends whenever you like; however we would recommend doing this quarterly or monthly to reduce administration. However, you must ensure company profits for the year can cover your dividend payments. Ongoing management a/c’s are an essential business tool to give you this information.

Note – There is a small amount of administration. You must keep a record of all dividends declared together with dividend vouchers. Accountspoint can help you with this.

As long as your family member is carrying out a reasonable amount of work for their salary, this is ok.

To pay dividends your family member must be a shareholder of the company. Problems may occur if no or minimal work is carried out and the company is a “personal service company” (i.e. a contractor or freelancer). It is advisable to contact us to discuss the “income shifting” rules.

Yes, as long as it will be used primarily for business purposes.
If your business is based from home, HMRC allows you to claim £4 per week for expenses associated with running a home office. However if you feel your costs are higher than this, we can help you calculate a figure.
If a director withdraws funds from a company, which are not salary or dividends, then a loan is formed. This is ok to do and quite common but must be seen as a short-term measure. If the DLA exceeds £10,000 at any point in the financial year or any DLA exists at the company year end there may be further tax implications for income and corporation tax. Always best to discuss any potential issues of a DLA with your accountant.

Declaring a dividend can be used to offset an overdrawn DLA (as long as the company profits are enough to pay the dividend).

All business records (receipts, sales records, bank statements etc.) should be kept for at least the previous 6 years
Your business funds should be kept separate from your personal funds, so yes you do need a business bank account. If you are having trouble with opening an account (i.e. for bad credit, credit scoring) please contact us, we can advise further.
This depends on where your business is based. If you commute to work you cannot claim for this journey. If however you travel from work as park of your role, this is claimable.

Most contractors and freelancers are based from home. They, therefore, can claim for all travel from home to work, as long as their workplace is temporary. A temporary workplace is one where you cannot predict will continue for 2 years.

HMRC’s guideline allowance for mileage in your own car is 45p per mile for the first 10,000 miles in the tax year, 25p per mile thereafter. We can provide you with a mileage log to help record your expenses.

Your company can provide you with a company car. This, however, would result in a taxable Benefit in Kind and you would incur further income tax. The advantages of having a company car are not as great as they once were; claiming for mileage for your personal vehicle (see above) is simpler and often more beneficial.
You can claim for meals and subsistence if your workplace is deemed as temporary (i.e not expected to continue for 2 years). Obviously, receipts for all business costs must be kept; round sum amounts or approximations cannot be used.

Meals must also be classified as ready to eat; i.e. ingredients from a supermarket cannot be claimed for, a sandwich from a supermarket can be claimed for (HMRC guidelines).

A company can pay for childcare costs for a director. The care must be for the directors child and payment made to an Ofsted registered childminder.
Yes; and any payments to a pension plan are tax deductible.
Ideally, records should be sent in on a regular basis, every 3 months at the very least. Remember regular management accounts are a valuable business tool to help keep you informed of your company position and performance.
Within 9 months and 1 day from the end of the company year end date.
The self-assessment due date is 31st January each year. We aim to complete and submit all our clients’ self-assessments well before the deadline date.

Your personal tax is due in 3 payments:

31/01 – half of previous years tax liability.
31/07 – half of previous years tax liability.
31/01 – balance.

A business is not required to register for Vat unless turnover is or expected to exceed the Vat registration threshold. A business can however voluntarily register; there may be circumstances when this is advisable. There are various Vat schemes that can be used by businesses, contact us for further advice.
IR35 is legislation that was brought in to stop workers who were employees of an organisation from resigning and providing the same services through a limited company; thereby benefiting from the significant tax advantages.

IR35 is aimed at contractors and freelancers and looks at their working practices for each contract they work on.

Accountspoint can advise further on this.