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FAQs

To set up a limited company in the UK we simply need the following information:

  • The proposed company name
  • The business address,
  • The details and address of all the directors
  • Total number of the shareholders
  • Details of shareholders
  • And we will form the company on the same day!

For more information, please do get in touch.

The advantage of a limited company is that it is legally separate from the people who own it. Any shareholders of the company are then not personally liable, so they are not risking any of their personal assets if the company was to get into debt or face liquidation

For more information, please do get in touch.

All limited companies are required is to keep full detailed records of the following information along with the supporting paper-work:

  • Income
  • Expenditure
  • Liabilities
  • Assets.

These will give us the details they need when preparing the company annual accounts.

For more information, please do get in touch.

Some of the advantages include:

  • Simpler structure
  • Low cost set up compared to other structures
  • Easy to set up and manage for smaller business owners
  • Possibly eligible for small business tax concessions.
  • 100% control of your business affairs

There are certain disadvantages as well.

For more information, please do get in touch.

As a self-employed person you will be paid the full invoice amount without any tax being deducted. It would be wise to put money aside to cover your tax bill when it becomes due.

For more information, please do get in touch.

The advantage of running a business through a limited company is that you can pay yourself in the form of dividends which are not liable for either employee or employer’s national insurance contributions.

For more information, please do get in touch.

Yes, if you are self-employed you are responsible for payment of national insurance contributions on earnings above a certain profit threshold. This threshold is quite low.

For more information, please do get in touch.

Yes, you can claim for your car, bus and train travel, etc, and any other business related costs you incur for travel subject to certain limitations. Do make sure that you keep any receipts you get otherwise you have no proof that the expense was incurred.

For more information, please do get in touch.

Self-assessment taxation is where you calculate your own liability for tax (including income tax, corporation tax, and capital gains tax as appropriate). You complete the self-assessment return, and HMRC will do the final calculation and tell you how much tax to pay once you have submitted.

For more information, please do get in touch.

You will need to register yourself with HMRC when you start out. For a newly self-employed person failure to register within three months can result in a fine.

For more information, please do get in touch

There is a VAT threshold amount, below which you will not be required to charge VAT on any of your goods or services. Above this threshold amount, it is mandatory that you register for VAT and start charging VAT on all goods and services from the day you have registered.

For more information, please do get in touch

Management accounting is looking at and analysing costs incurred, producing appropriate budgets and then comparing these to your company’s actual performance on a periodic basis.

For more information, please do get in touch.

Statutory accounts are accounts that are submitted at year-end to the various offices including the companies house and HM Revenue & Customs. In the UK, all private limited companies are required to prepare statutory accounts.

It is very useful to appoint an accountant or advisor who will prepare these accounts for you

For more information, please do get in touch.

Essentially, your Financial Accountant focuses on taxes whereas a Management Accountant helps you throughout the year by providing you with useful financial information in order to form a basis on which you can plan and make decisions.

For more information, please do get in touch.

Corporation Tax is tax paid by limited companies on ‘chargeable profits’. The rates are set by the government for each tax year.

For more information, please do get in touch.

Every employer with at least one employee now has to enrol their employees (subject to eligibility) into a workplace pension scheme and also contribute towards it. The employer must complete a declaration of compliance when it has enrolled its workers thus fulfilling their legal duties.

For more information, please do get in touch.

Even if this it the case you will need to review your existing arrangements to ensure they meet the minimum requirements for auto enrolment. Do also bear in mind that you will need to check and review your responsibilities for employees not currently in the scheme, or new employees.

For more information, please do get in touch

Yes, you can. You don’t have to enrol in your workplace pension if you don’t want to. Do think carefully before opting out, as it may well affect how much money you have when you retire.

For more information, please do get in touch.

Capital Gains Tax (CGT) is the tax that may be charged on the profit made when selling, gifting, transferring, exchanging or disposing of an asset. The asset could be a personal asset such as your home, or a business asset such as premises or shares in a company. Should you make a (capital) loss, you can’t claim it against other income, but you can use it to reduce a gain in that same year. If your capital losses exceed your capital gains in an income year, you can generally carry forward the loss and deduct it against capital gains made in future years.

For more information, please do get in touch.

As you might expect, there are advantages and downsides to including a car in the company accounts, however it would usually be more costly for you to include your car in Limited company accounts, because of the ‘Benefit in Kind’ taxes that would become payable.

For more information, please do get in touch

Cloud accounting software allows you or your colleagues access to your accounts from anywhere in the world with an internet connection. Data can be shared more easily and is not dependant on being in the office. It can be a more secure option as all staff will need to use passwords to access the software and no data is left on laptops that can be left on trains or stolen.

For more information, please do get in touch

Changing your accountant is very simple. All that needs to be done once you have chosen Apex Accountants & Tax Advisors is to provide us with your former accountant’s contact details and we will do the rest for you.

For more information, please do get in touch.

Yes, if you have one employee or more, you are required to register for PAYE scheme. Once you are registered for PAYE with HMRC you will then need to make all the necessary ‘RTI’ submissions.

For more information, please do get in touch.

Social investment tax relief (SITR) is the government’s tax relief around social investment and is intended to encourage individuals to support social enterprises. It helps them access new sources of finance.

Anyone who make an eligible investment can deduct 30% of the cost of the investment from their income tax liability for either the tax year in which the investment is made or the previous one. This investment must be maintained for a minimum of three years for the relief to be eligible.

For more information, please do get in touch.

You can claim all expenses incurred wholly and exclusively for business; below is list of few admin expenses which a business could claim:

  • Rent for business premises
  • Business rates
  • Using your home as an office (only the business part)
  • Water and utility bills
  • Business Insurance
  • Maintenance and repairs to business premises and equipment

Please note: You cannot claim expenses or allowances for buying your business premises. You can, however, claim capital allowances for some integral parts of a building, such electrical systems, including lighting systems

If you would like to know more, please contact us.

There could be many different reasons for an investigation. It is commonly thought that an HMRC investigation is decided randomly, but most investigations are carried out because HMRC believe that there is something amiss with your tax affairs. HMRC may use a number of sources such as the internet, banks, local authorities, news stories, etc, when deciding who to investigate.

HMRC may have picked up an omission or irregularity in your accounts, or you may be in a high risk area which could be geographic or by sector, which is thought to be high risk. Property income is a good example of this. Pointers for HMRC investigations might be a dramatic increase or decrease in your income, consistently late returns or very high expense claims.

For more information, please do get in touch.

We would advise you to read the notification very carefully and seek professional advice if you are in doubt, or if it is a request for information that is difficult to understand or comply with. Professional support may well be significantly helpful to you at this stage

If you would like to know more, please do contact us.