What Is An Invoice Number & Why Are They Important?
Invoice numbers are a series of unique, sequential identifiers which are included on every invoice a business sends, whether big or small. These numbers help in keeping track of sales and purchases, provide proof of payment made between two entities and ensure accuracy and credibility of financial records for tax payment processing. Let us look […]
Self Assessment Deadline – What Is It For 2023
Understanding how to determine the Self Assessment deadline of a business year is crucial for accurately filing tax returns. For 2023, the self-assessment deadline is 31st January 2023 and covers the financial period from 6th April 2021 to 5th April 2022. Similarly, the 2022/23 tax year has a self-assessment deadline of 31st January 2024. It […]
VAT Threshold 2023
There is a VAT threshold for every small business that is set by HMRC and can vary. Once taxable income exceeds the value set for any given financial year, businesses must register for VAT. Failure to comply and register could attract serious penalties. The VAT threshold is currently £85,000 until March 2024. What is the […]
What Is Salary Sacrifice & How Does It Work?
Salary sacrifice is where an employee agrees to give up part of the money they would earn in their pay packet in exchange for non-cash benefits from their employers. Examples of benefits on offers include pension contributions, childcare vouchers, healthcare benefits and life insurance premiums amongst others. The scheme works by reducing the amount of […]
Understanding P11D Forms To Ensure You Meet The Deadline
If you have employees that are paid at the lower earning limit or above, you must keep P11D records. These records must be accurate and you’ll need to ensure that you submit your P11D forms on time to avoid facing penalties. But what is a P11D form, what is the P11D deadline and how do […]
Guide To Understanding Tax Codes
Everyone that is employed in the UK has a tax code. It’s a letter and a number that is used by your employer to work out how much tax they need to deduct from your wages. Each tax code is made up of a letter and a number that tells the employer various information about […]
How Much Does A Business Accountant Typically Cost?
The cost of hiring an accountant varies based on factors such as the complexity of the finances to be worked on, services needed, accountant expertise and location. To give you a ballpark figure, hourly rates range from £15-£30 per hour for a junior accountant to £300 for certified accountants with lots of experience. Monthly/annual fees […]
Essential Info For Compiling Year-End Accounts
Compiling year- end accounts is an essential process that all limited companies in the UK must go through annually. The steps involved are compiling the financial information for the past 12 months related to business activities and filing them with HMRC and Companies House. Failing to do this by the deadlines imposed can result in […]
Is The VAT Flat Rate Scheme Right For Your Business?
The VAT flat rate scheme was introduced by the UK government to make it easier for small businesses to arrange their VAT payments. The scheme means that the VAT a business owes to HMRC is calculated as a percentage of turnover. Many businesses feel that the scheme has simplified their calculations and ensured that they […]
When did IR35 start?
As official tax legislation, IR35 was implemented in the Finance Act for April 2000 and has had a significant impact on contractors around the country ever since. The term ‘IR35’ originally came from the press release reference Inland Revenue 35. The legislation has been changing and evolving regularly over the past decade and its growing […]
How to be outside IR35
A contractor working outside of the IR35 is someone who runs a genuine independent business and so falls outside of the boundaries of IR35. They pay their own salary, control their own books, are able to draw income as dividends, and are fully responsible for all taxes they need to pay to HMRC. If you […]
What is IR35?
Simply speaking, IR35 is a piece of tax legislation designed by HMRC to counteract tax avoidance by taxing ‘disguised’ employment at the same rate as similar employment. It is used to assess whether self-employed individuals or freelancers are working genuinely, or if they are working as ‘disguised’ employees, with all the same responsibilities as a […]
