ACCOUNTING & TAXATION SERVICES
We understand that every business is different and faces its own unique challenges. That’s why we make it our business to get under the skin of your company to understand your needs and provide truly flexible Accountancy & Taxation services designed especially to your business needs.
If you are spending too much time writing up books we can provide weekly, monthly or quarterly bookkeeping services in house, on site or remotely to suit your needs.
We understand that running a successful business is not easy at the best of times and worrying about maintaining sufficient bookkeeping records may not be your priority, particularly if you are a new business start-up.
It is important however to be aware of your bookkeeping responsibilities in relation to Taxation and Value Added Tax. Not only is good bookkeeping necessary to satisfy HMRC but it will also benefit your business in the following way:
- Managing and keeping control of your business finances. By keeping track of who owes you money and how much you owe to creditors you will have an invaluable resource when managing cash flow.
- By maintaining accurate accounting records you will be in a better position to plan the growth of your business i.e. affordability and risk assessment.
- Helps with the preparation of your annual accounts by ensuring more accurate and timely accounts production.
Every trading entity in the UK, whether you are a sole trader, partnership or limited company, is required to report to H M Revenue & Customs (HMRC) detailing its trading activities within the last accounting period. The reporting requirements are different depending on whether you are incorporated or unincorporated and by the level of trading activity.
Beck Accounting can take care of your year-end accounts preparation which means that you can concentrate on running your business while we take care of the time consuming and stressful task of preparing accurate and reliable accounts.
Sole Trader & Partnerships
As a sole trader or partnership you are required to prepare a year-end set of accounts, the complexity of these accounts will be governed by the level of trading and other factors such as level of staff, VAT registration, bank loans and finance agreements, amongst many others.
Private Limited Company
Limited companies do not fall within the self-assessment system for individuals and are instead governed by the Companies Act 2006. As a director of a limited company you are required to maintain accurate accounting information and file statutory accounts in accordance with the Act.
The preparation of company accounts can be a daunting task if you are not familiar with statutory reporting requirements. We can help and advise of your responsibilities and take the worry out altogether by taking care of the accounts preparation for you.
Not only will we prepare a set of accounts but we will also ensure that all filing deadlines are met and that minimal information is made public via Companies House so that your business stays your business!
Once you have started a business and commenced trading it is easy to focus on the development of your business and overlook the importance of operating an effective accounting system. Many businesses concentrate on expanding their business and wait for their accountant to tell them how they have performed at the end of the accounting period.
Obtaining regular reliable management information is vital to the continued success of any business. Let us work closely with you to get to know your business so we can make suggestions to help improve profits or to develop and grow your business. We can prepare your monthly or quarterly management accounts to ensure you always have reliable and accurate information throughout the year on which to base your business decisions so that you can:
- Monitor the profitability of your business,
- Keep track of your debtors and creditors,
- Improve your cash flow by using budgets,
- Monitor your overheads and reduce expenses where possible,
- Prepare for VAT, PAYE/NIC and tax liabilities.
The above are all vital components for consideration when operating a successful and in particular, expanding business. We can offer a basic management accounting function that will provide you with accurate profitability reporting or a more bespoke service where we can manage your cash flow by managing your supplier accounts and also liaise with debtors to arrange payment.
Contact us today to arrange a free consultation to discuss your responsibilities and year-end accounts production requirements.
If you are an employer, or are thinking about employing staff, then you will be required to register as an employer with HM Revenue & Customs (HMRC). Once you have registered you are then able to operate a Pay As You Earn (PAYE) scheme i.e. deducting Income Tax and National Insurance at source from your staff.
You will be required to file monthly employer forms and pay the deductions to HMRC by a specific deadline, if either of these requirements are late, you will receive an automatic penalty and interest will be charged on the late payment.
Administering your payroll can be a time consuming task and it can be difficult to keep records up to date and be fully aware of all legislation.
We offer a very competitive fixed rate fee for our payroll service and will take care of the following:
- Register you as an employer with HMRC,
- Process your staff wages on a weekly or monthly payment basis,
- Provide you with pay slips to distribute to your staff,
- Advise of net pay due to each employee,
- Advise of PAYE / NI deductions made from your staff and when to pay to HMRC,
- Amend all staff PAYE codes in accordance with HMRC,
- Calculate staff benefits in kind and associated employers NI charge,
- Maintenance of staff holiday calendar,
- Completion and submission of end of year Employer Annual Return.
Contact us today to arrange a free consultation and to discuss your responsibilities as an employer and the services we can offer.
If your business turnover (sales) have reached a level that exceeds the mandatory Value Added Tax (VAT) threshold then you must register for VAT.
Ever changing regulations and the growing demands of HMRC mean VAT compliance can be a difficult administrative process. We can help to ensure that you comply with the regulations and that overpayments are not made. To help you manage this complex area, we provide an efficient, cost-effective VAT service, which includes:
- Assistance with VAT registration
- Advice on VAT planning and administration
- Use of the most appropriate scheme
- VAT control and reconciliation
- Help with completing VAT returns
- Planning to minimise future problems with HMRC
- Negotiating with HMRC in disputes and representing you at VAT tribunals if necessary.
Everyone who is subject to taxation needs professional advice and support if they are to optimise their tax position and ensure they meet the compliance requirements. Our specialist tax team can provide you with year-round advice on all aspects of personal taxation.
H M Revenue & Customs (HMRC) issues Income Tax Returns to individuals in the following circumstances:
- To individuals with complicated tax affairs,
- To individuals who are self-employed, if trading as a partnership the business will also be issued with a Return,
- To individuals who receive income from either land or property, even if you make a loss on your rental income, it should still be declared,
- To individuals who receive income from overseas,
- To individuals who receive income without tax being deducted at source.
If you are issued with a notice to complete an Income Tax Return, you must declare all income the you received during the tax year in question; even if some of it has been taxed at source i.e. Pay As You Earn (PAYE).
If you have not been issued with a notice to complete an Income Tax Return but believe that you fall into any of the above categories above you should notify HMRC that you wish to complete a Return.
The UK system of tax declaration is called Self-Assessment, the purpose of which is to put the responsibility of reporting on the tax payer, it is the tax payer’s duty to “self-assess”. Should HMRC become aware of any income received and remains undeclared, you could incur a series of penalties and interest for each year that you did not self-assess.
If you are a director of a limited company you should be aware of your obligations to prepare and submit a Corporation Tax Return. The Return, in conjunction with the company accounts and corporation tax computations, provides H M Revenue & Customs (HMRC) with information on how the company has traded during the most recent accounting period and what you believe is the company’s liability to Corporation Tax for the period.
Preparation of corporation tax computations can be quite complex and if you are not sure of all relevant tax rates and allowances, preparation of the Return can be stressful and if done incorrectly, could cost your company unnecessary additional tax.
Capital Gains Tax (CGT) is designed to capture transactions that fall outside of the general income tax legislation and are often charged to tax at a lower rate.
A common example of a transaction that falls under CGT rules is an individual selling a second property that has in the past been rented to tenants. The capital gain is the difference between the sale price (after adjusting for costs on sale) less purchase price (after adjusting for costs on purchase).
This may seem pretty basic but there are additional factors to consider:
- How long did you own the property,
- Did you ever live in the property,
- How long did you live in the property,
- Has there been an enhancement expenditure.
All of the above points will affect how much of the gain is chargeable to CGT and with these sort of transactions generally being of high value, any omission of information in the calculation could cost you large amounts of additional tax.
No CGT computation is as basic as dedcuting cost from sale as there will always be additional factors to consider.
There are many instances of transactions that may be classed as a capital gain instead of income. It is important to be aware of this as the basic rate for capital gains can be as low as 18% compared to 20% income tax and 28% compared to 40% respectively for higher rate tax payers.
If you work within the construction industry you will either be a subcontractor, a contractor, or possibly both. Either way you will have to familiarise yourself with the rules specific to the construction industry regarding income tax deductions at source.
If you are a subcontractor you will need to be registered as both self employed and as a subcontractor within the Construction Industry Scheme (CIS) HMRC so that when you undertake a new contract your contractor will be able to contact HMRC and start making deductions at the specified rate of either 20% or 30%, unless you hold gross status.
Every time you receive a payment from your contractor it will be after they have deducted income tax at source at the specified rate on the labour content of your invoice. At the end of each month you will receive from the contractor a statement detailing the total gross pay and income tax suffered at source.
At the end of the tax year when you are completing your Income Tax Return the amounts suffered at source can be deducted from the total liability, this can often result in a repayment of tax.
At Beck Accounting we can help subcontractors in the following way:
- Register you as a subcontractor with HMRC.
- Prepare your Income Tax Return at the end of the financial year.
- Obtain any repayment of tax (our fees can be deducted from the repayment to preserve your cash flow).
If you are considering taking on labour you are required to register with HMRC as a contractor. Before you pay a subcontractor you will be required to contact HMRC to verify the subcontractor and confirm how much income tax you must deduct from the payment, either 20% or 30% should the subcontractor not hold a gross payment status.
At the end of every month you are required to report to HMRC how many subcontractors you have paid and how much you have deducted at source and as a result have to pay the deductions to HMRC.
You are also required to provide subcontractors with a monthly statement detailing the payments you have made to them and how much income tax has been deducted so that they can offset the deductions from their year end income tax liability.
We can help contractors by:
- Registering you as a contractor with HMRC.
- Verifying subcontractors and advising how much tax to deduct.
- Completing the monthly Contractor Returns and advising how much to pay.
- Providing CIS vouchers to distribute to subcontractors.
We are an approachable Chartered Certified Accountancy Practice based in Birmingham City Centre, specialise in helping small to medium-sized business operations with all accounts and taxation matters.
Our aim is to provide innovative, tailored, cost-effective accounting services to businesses to help save time, drive growth and improve efficiency.
GET IN TOUCH
We would love to hear about your business and your challenges, so why not pick up the phone, and let’s chat?
0121 xxx xxxx
If you prefer to drop us an email, then let’s get the conversation started.