Bookkeeping – review your “aged payables” report regularly
If you are using purchase ledgers – recording purchase invoices when received – these will appear as owing and then reduce to Nil when paid. When preparing annual or more regular accounts, we will look, in particular, at the “old” balances on the aged reports – the column that is outstanding for 3 months or […]
Selling online but not declaring the income? Watch out – HMRC will know
Changes are afoot that will mean online sellers such as eBay will be disclosing users’ income with the tax authorities – HMRC in the UK. The same will apply to rental income so if you rent out via Airbnb for example, a property in Germany, both the UK and German authorities will be informed. Ensure, […]
Selling on credit? Keep on top of your debtors!
When you are selling and offering credit terms to your customers, it is essential to keep the cashflow moving. After all, your suppliers and staff want paying on time – as do you personally! This used to be very labour intensive. However, the automation of debt chasing and reminders, either on an individual invoice basis […]
Should you register for VAT?
Should you register for VAT? You must register for VAT if: • you expect your VAT taxable turnover to be more than £85,000 in the next 30-day period • your business had a VAT taxable turnover of more than £85,000 over the last 12 months You must register if, by the end of any month, […]
SEISS grant 5th tranche
The 5th Coronavirus support grant for the self-employed is live to claim from late July through to the end of September. There are two elements – firstly the need to consider the criteria to ensure eligible to claim in the first place, and secondly, the amount claimable depends on a comparison of turnover in a […]
Higher Rate taxpayers – some simple tax savings tips that are easily overlooked
If your pre-tax income exceeded £50,000 in the last tax year (2020/21) it is possible that you may have been in a higher rate tax bracket, with some of your income being taxed at 40% instead of 20%. If income exceeded £150,000 then tax at 45% might well have been paid on some of your […]
Might the VAT flat rate scheme be beneficial to your business?
If you use the Flat Rate Scheme, you charge VAT to your customers (‘output VAT’) and pay VAT to your suppliers when you buy goods or services from them (‘input VAT’) in the normal way. However, the VAT return figures are calculated differently. VAT on expenses is generally ignored; instead, the total sales including the […]
Are you paying too much for electricity, gas, water, credit cards etc?
Whilst there are price comparison sites which can be used, these can take considerable time and effort to research the marketplace. If you are a QBO or Xero user, your account can be linked to a third-party provider that looks at your bills and begins comparing the products in them to those of different suppliers, […]
Dividends from your company – are they legal?
Only limited companies pay dividends, and these are based on the shares that have been issued to the shareholders. Sole traders, partnerships and LLPs do not pay dividends, because they do not issue shares. Limited companies can pay dividends if they have enough “profit” available to do so and this “profit” needs to allow for […]
SEISS checks by HMRC
The self-employed income support grants paid out are liable to tax and NI. HMRC systems are now automatically cross checking the figures on 2020/21 tax returns and issuing revised tax calculations where the figures on the return do not match their records. Please make sure you provide us with information about the grants, the dates […]
