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Deductible Business Expenses

Business Expenses – don’t we love them!

In fact, many people love them so much because they think they get something for free. That’s a big mistake because business expenses still come out of the business’ pocket. Neither are they taken ‘off tax.’ Rather, it’s taxable (gross) income and revenue that are reduced by the amount of the expenses. Tax is then calculated on the smaller final amount.

Another general confusion seems to persist around two different types of expenditure, READ MORE

14 Questions You Need To Ask When Choosing A New Accountant

This is the final article in our series helping you find an accountant.

Being prepared is never more important than ahead of a meeting that serves to bring on board one of the most important collaborators for your business: your accountant. In this article, we’ll give you first three READ MORE

Companies House & Corporation Tax

This article provides an overview of both, Companies House and Corporation Tax as these two go together. Companies are incorporated first, and then they become liable for Corporation Tax with all the additional obligations this implies.

Companies House

By law, all businesses in the United Kingdom that are incorporated must be registered.

Companies House is the Registrar of Companies for READ MORE

Sole Trader or Limited Company

Do you prefer profit or dividends?

The difference between these two types of income lies at the heart of the distinction between a Sole Trader and a Limited Company.

Here is an illustration:

If you made £50,000* profit, would you prefer to declare all of it as income and pay £13,310 to HMRC, or pay yourself a very small salary, take out the remainder as dividends and save £2,321?

OK, so saving £2,321 is great but what if it came at the price of quite a bit more bureaucracy and READ MORE

Your Guide To Changing Accountants

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This is the fourth article in our series helping you find an accountant.

“Does you accountant provide you regularly with the financial information you need to steer your business to the success you planned for?”

This question sums up what a proactive account should do for your business. Anything less should at least raise a question mark about the level of service your receive. If READ MORE

Umbrella Companies

How do you square a circle?

It’s easy: You combine self-employment, independence and flexibility with security and longer term employment without upsetting HMRC. That is to say, you keep everyone happy at the same time, employers, contractors and HMRC.

Wishful thinking? No, it is what Umbrella Companies do.

Here is the scenario:

Changing Accountants – Trust And The Three Ts

This is the third article in our series helping you find an accountant.

Whether you are self-employed, a small or a large business, solid financial information is critical to your success, and your accountant plays a key role in this. When changing accountant or signing up with an accountant for the first time, you have to be able decide that you can READ MORE

Business Partnerships

You are starting a business but instead of going it alone you partner up.

A business partnership is a great idea. You share the journey and its ups and downs including responsibility, liabilities and profit. As with any partnership, the big question is how to make it work? Or at the very least, how to avoid the worst pitfalls?

In this article, I’ll review the principal forms of business READ MORE

Outsourcing Accounting

Should you outsource your accounting?

Fact is that virtually all small and medium size businesses outsource at least some of their accounting services. It just doesn’t make sense to hire a full-time in-house accountant for their year-end tax returns and similar tasks rather than use independent accountants.

But how far should businesses go? To what extent should they outsource their accounting services? When does it make sense to do the work in-house, and when should they outsource READ MORE

Changing Accountants – 5 Reasons Why So Many Shy Away From It

This is the second article in our series helping you find an accountant.

In the first article of this series, we discussed the 4 most important reasons why business owners should change accountants. In this article, we’ll look at the reasons why so many shy away from this step although in all probability they would be better served by it.

Experience has shown that many businesses will tolerate poor service, unjustifiable levels of fees, negligence, READ MORE