Category Archives: Tax Accountants

How to get a Free Valuation For Your House with Estate Agents in London

How To Obtain A Free Valuation For Your Property

The value of the house is one of the major things that potential home owners look for when selecting a house to buy. The value of the house depends largely on the location of the house and the furnishing and repairs needed to be done. Getting a valuation for your house is important in helping you to estimate the amount you will possibly get when you are planning to sell your house.

Contact Estate Agents

 

Free house valuation

To ensure you get the correct value for the house, there are a few things you need to consider. Some of the most important things to consider include the following;

• The value of the houses in the street. The value of houses vary depending on the location and area of the county or country you are in. Houses in urban areas tend to cost more than the houses in rural estates. Finding the value of the adjacent houses in the street also enable you to estimate the real value of the house.

• Finding out amount of money the previous buyers of the house got it for. This enables you to estimate the real current value of the house at that particular time.

Our choice is Estate agents London because they provide a free no obligation valuation with competitive fees in London

• The trends in the real estate prices in your area. This is important information to any house owner. The trends in the real estate prices in the area enables you to know when it is most convenient to sell your house. Knowledge of the market trend also enables you to avoid inconveniences when planning to sell your house. Trends in the national level on the real estate market also hugely determine the prices of the houses.

 

How to get a ballpark valuation

Ballpark valuation is able to help you calculate the real value of the house depending on the market value. There ae several ways to calculate the value of the house for buyers, sellers, and all other parties that are interested in the value of the house. Using the ballpark valuation, mainly helps sellers to get the actual value of the house. Here is a breakdown of the approaches to use when using this method to calculate for the value of the house.

a) Using price multiples

This is one of the simplest and easiest to use approach when you are valuating your house. This is mostly used by people to get the market value for small businesses. Under this approach, there are two main types which are the cash flow and revenue. To calculate the cash flow, you are required to sum up all the incomes and revenues accrued before deducting taxes, interest rate and depreciation. After determining the values, you can find the most commonly used multiplier which you multiply with the value you have found. You should find the correct multiplier to multiply with your value depending on the demands of the market and changing trends.

Comparison

This is another approach that you can use to valuate your house. This involves finding the value at which recent buyers have been getting the house for. You can also go a little further and determine the value of other property in the same industry, location and even size. Comparing your house with other properties, putting the features side by side, enables you to get a clearer picture on the value of your house. The information you need can be easily found in the internet and even from the property brokers

b) Bring in professionals

The purpose of hiring a professional is to enable you get a specific value depending on the dynamics of the market. Our recommended choice Estate Agents London are able to calculate the value of the house and give the accurate value. This is one of the advantages of this approach over the other approaches, it is accurate. They are also familiar with the correct and most suitable multipliers available for you depending on the industry you are in. Having a professional will also enable them to get deeper into specific details that you cannot be able to handle and understand on your own. A professional is also able to shorten the process from valuation to the final sale of the house.

Can making repairs increase the value of the house?

Making repairs and adding finishes to your house is guaranteed to increase the value of the house. This is because potential buyers mostly prefer to move in without having to make any repairs to the house. However, the repairs o you want to do to the house depend on the industry you are in. Some of the buyers will prefer to do the repairs on their own so that they are able to customize the house. The capital gains tax is the tax accrued from the profit you gain from the sale of assets like properties and houses. You are required to find out whether the area where you are selling your property requires you to pay the capital gains tax. In addition to that you should ensure that the rate at which the tax should be paid in order to know how much you should sell your house at.

Considering Capital Gains tax on your property

If the property is your main residence then then this will be covered by PPR relief. If this is your second home then there may be capital gains tax implications. if you have lived in the property at any given time then letting relief may apply.  This type of relief is not automatic and will need claimed in the tax return.

Conclusion

Finding the real value of a house can be a bit difficult. This is because of the different change and trends in the market today. However, it is easy to valuate your house by using the ball park valuation. This involves the use of either of the three approaches, the use of price multiples, bringing in professionals and using comparison. Hiring the services of professionals is the best approach because it is accurate. This is because the professionals are able to get into deeper details of the property and are also conversant either the current trends in the market. When valuating your house, other things like repairs may also greatly affect the value of your house. Doing repairs may increase the value of your house depending on the industry you are in. Some buyers may prefer to do repairs on their own so that they are able to customize the space to meet their needs and specifications. In valuating your house, the price of other properties in your locality can also be studied and used to arrive at an estimate value.

Contact Estate Agents

benefits of outsourcing payroll services in London

Outsourcing payroll services in London

benefits of outsourcing payroll services in London to compute salary, wages, compensations and other benefits can help your productivity and efficiency of your organization. Well compensated labor induces workers to work more innovatively, productively and competently for their organizations. Most multi-national companies and corporate ventures outsource their payroll requirements from outside payroll specialists.

Outsourcing payroll services in London

Some companies assign local accounting firms to administrate their payroll departments while others will choose foreign or offshore payroll service providers. However, majority of management officers prefer to local accounting firms for payroll services due to great accessibility and practicality. Anyway, you can minimize the administrative costs if you outsource payroll services from outside payroll specialists. As outsourcing payroll services from outside company demand very cheap cost, big companies can benefit a lot. For small or medium business ventures, they can save significant time and money in the financial and payroll chores. Beyond all, outsourcing payroll operations help managers to concentrate on other administrative functions.

benefits of outsourcing payroll services in London
Payroll service companies update the payroll system on a regular basis. They are complying with restructured rules and regulations on payroll and taxation system. Private payroll service providers ensure updated payroll systems and upgraded payroll software which enable on time contribution of salary to employees. Payroll service providers complete all the payroll operations within a specific time frame. They do calculate gross salary from work performance by withholding the deductibles from gross salary and filing and sending tax documents to the related government agencies. With private payroll service providers, you will be able to provide salary and bonus to employees in a stringent timetable. Consequently, the relationship between the employer and employee will be enhanced.

Payroll providers in London

This article is going to explain about payroll service and its need in today’s time. It is understood as the amount of money that is to be spent by the firm for paying the wages to employees on monthly basis. Big firms are blessed with their own in-house payroll department that is responsible for making complicated and also time-consuming payroll calculations for every employee. Meanwhile, small and also medium size organizations generally don’t make any investment in setting up another department but also assign duties to the administration department.

The lack of expertise and knowledge in making fully complicated calculations that are actually compliant with the latest payroll tax laws lead to errors. services are introduced with the main aim to eliminate errors occurred due to human involvement. In these services, calculations are generally performed with the help of automated payroll software, in order to deliver fully accurate and timely results. The reason is simple every employee waits for his/her salary and incentives and also desires to get paid on time. Moreover, inability to pay timely is something that can also make an adverse impact on the reputation of any organization.

Therefore, those of small and mid-sized businesses are generally hiring payroll services, in order to relieve themselves from all stresses relating to payroll. There are numbers of such service providers so finding them is certainly not a big challenge. In order to hire best payroll services in London, you can explore some best service provider and gather their history, record of accomplishment, client testimonials and more to analyze their past performances. It will definitely help you in making a perfect selection and you can enjoy the best services.

Once you hire such services, you must be sure of the complete accuracy of payroll and payroll taxes. Even if the firm gets any notice by the concerned department, the notice is then actually sent to the service provider mainly to tackle directly with the concerned department. It generally ensures that such firms are highly efficient in performing such calculations and also are highly responsible for any kind of notices due to late payment or also inaccurate tax payment.

GM Professional Accountants are specialists and is the best choice if you are actually keen to save your valuable time and also seek to stay away from difficulties involved with payroll process, you can certainly rely on a highly reputed payroll service provider. This will certainly not assist you to ignore errors but also help you in keeping your administrative department and employees highly satisfied.

Best payroll providers

With so many different types of payroll services, however, it may not be an easy task to find one that is perfectly suited to your business needs. In this article, we will give you tip on which questions to ask yourself as well as your prospective payroll service provider so that you can make an informed decision.

With so many payroll service providers on the market, when choosing a service to meet the requirements of your business and its employees it is important to ascertain whether the service can offer you what you need.

After signing your contract agreement with the payroll service you should have immediate access to the system so that you can set up your account, add your employee details and so on. Also, make sure that you will be able to access and run your payroll from your mobile device.

You need to be absolutely certain that all sensitive and private payroll data won’t fall into the wrong hands. Before you sign on the dotted line, ascertain whether the payroll service uses data encryption technology to protect identity numbers, passwords and other sensitive information from theft. Most payroll services use the same encryption protocols as banks.

That’s why GM Professional Accountants is the best choice as your business grows and your workforce expands, your payroll service should be able to accommodate that growth by providing the option to add extra employees as well as additional users to the account.

Payroll providers for a small business

Business process outsourcing is a way of easy task management available to big and small companies whereby the business owners utilizes the technical expertise of service providers all over the world to perform a task or job that was once undertaken by the business itself. Business process outsourcing is basically shifting a job to an external company that might have a completely different address or location.

Business process outsourcing services always have been in a win-win situation for both parties in the deal. Businesses can utilize their services for development activities and can expect higher profits as operational costs are down. Business Process Outsourcing Services are growing as time goes by. Earlier, jobs like only payroll processing were outsourced. With time and technical advancements, tasks like cataloging, indexing, and media analysis were included. When we talk about business process outsourcing, one name that instantly comes to our mind is a virtual administrative assistant.

In today’s stiff competition, Outsourcing Data Entry helps global business organizations to maintain uptime and to be competitively effective. Everyone starting from industries to individuals, professional to retailers all look forward to outsource their back office work to ease the work load at affordable rates.

Outsourcing data entry also has some major benefits that include access of specialized service, fast delivery, increased customer satisfaction and advantage of low cost services. Thus, why GM Professional Accountants is the best choice by outsourcing your work, you can easily reduce tons of time-consuming work and focus on major issues.

GM Professional Accountants  are small business accountants based in London

How to Find an Accountant in Your Area

Top 3 Tips on How to Find an Accountant in Your Area

 

Finding an Accountant in your area can be stressful, nowadays the pace of our lives is so fast that we cannot manage to do a number of common everyday activities ourselves, not to even speak about getting the work concerning accounting and taxes done. The result of this current state of affairs turns out to be that more or less everybody needs someone to take care of their tax business – a personal accountant.

 

Before starting your search…

 

First of all, make sure to know what you want and what you need to be done. Otherwise you might end up paying for the additional services that were not necessary in the first place.

Tax preparation services in London

Before even starting the search, one has to be aware that not every self-proclaimed tax-expert is actually a professional. In the UK, not everyone who call themselves an accountant has been certified by some of the country’s legal bodies. Titles that people assign to themselves may often be misleading. Make sure to check the background of a person whom you consider employing for the task. Check their skills and qualifications, preferably the previous experience too. Only once you are sure that the person is reliable, the process may continue. Two of the most common ways of finding accountans are friends’/colleagues’ suggestions and, of course, our ever-helping Google.

 

Finding the right accountant

 

 

1) If you have an accountant recommended to you by a person you trust, that is already one concern less for you. You know where your money goes and you know that the service concerning your taxes will be done with the desired quality and efficiency.

 

2) Internet browsing is on the other hand a bit more risky. Usually, online services cost way less than the services of those high street accountants. But we should remember that the quality (mostly, but not always) goes hand in hand with price. The above mentioned “problem” of wannabe accountants should be kept in mind at all times, since taxes are not something to joke with. We give you the highest-rated site on which you can find the accountants in Barking, according to the reviews of the clients and customers on Google: https://www.yell.com/s/accountants-barking-essex.html

 

3) Whichever of the above mentioned options you choose, prior to making the actual appointment with the best accountant, you should consult with several different accountancy firms or individuals. The reason for this are first and the foremost your finances. You do not want to pay more for a service that you can get done with the same efficiency for a lower price by someone else. Furthermore, get familiar with the payment methods each firm requires and the policy of the company as well. You will spare yourself the possible regret later. In addition to that, it is always better to have a variety of options, so that you can choose the one that is the most convenient for you and your needs.

 

Beware of frauds!

 

Just like any other activity, the accounting business is full of cheaters. Many of those titled as “accountants”, online or offline, have nothing to do with this area, they just drag you into paying the certain amount of money onto their bank accounts and after that you never hear from them again. When it comes to the payment part, be extremely careful and do business only with the ones whose backgrounds you are absolutely sure of.

 

How to find Accountants near me

Accountants near me Looking for an accountant in your local area? This is a great idea for you to pursue, since having an accountant that knows your area, is easily accessible and can give you local knowledge can help you grow your business. No matter where you live, finding an accountant that is close by will pay dividends in the long run. Let’s take a look at several areas around London where accountants can be easily found. 

 

HMRC Tax Investigation Accountants

Accountants near Ilford

Ilford has experienced great business growth over the past century. Ever since it became a transport hub with the movements of large railways, it was counted as an important business borough of London. These days, with close transport to central London, Ilford has plenty of opportunity for people looking to expand their business into central London. 
If you are looking for an accountant near Ilford, there are plenty of highly qualified practices to choose from. Making sure that the accountant has a good idea about the area and a deep understanding of how you can utilize the proximity to the city to your business’ advantage. 

 


Accountants near Barking
The area of Barking has been home to creators of vehicles for centuries. Before the car plant in Dagenham, the area was famous for boat construction. The last few decades have heralded in a de-industrialisation in the area, and thus a surge and opportunity for entrepreneurship have emerged. 
Accountants in the area will have deep ties to former large companies that used to operate in the area. Combined with this, there will also be an understanding of how you can best combine a local business with the more fast-paced activities that are happening in central London. Finding one of these competent accountants can be done quite easily online, and will most likely enable you to expand your business successfully. 
Accountants near East Ham
East Ham is a hub that is very famous for the large amount of local independent eateries that exist. The variety truly represents the melting pot that is London. This combination of cultural diversity and entrepreneurship is a prime place for someone to take their business to the next level. It thus follows that there are many local accountants that exist to help service the local businesses. This is an opportunity for people living in the area who are looking for a East Ham based accountant. 
By checking out GM accountants, there is a huge selection of accountants in the East Ham area who have had decades of experience helping and growing East Ham businesses. The opportunities that can be available to your business through a local advisor can be enormous.
Accountants near Romford
With world-renowned shopping sites such as the Brewery, and the Liberty shopping center, the opportunities for independent businesses is abundant. Since Romford is now a mainstay of shoppers and visitors, local businesses should be capitalizing on the traffic. 
There are many great, experienced local accountants in Romford, and a cursory online search will show how much talent there is to choose from. Making sure that your business is equipped with the best financial help that you can get is important. 
Getting a local accountant is much more important that just convenience since your future business growth can be interrelated with an accountant near you.

Digital tax: ‘HMRC wants a direct link to everyone’s bank accounts’

Digital tax: ‘HMRC wants a direct link to everyone’s bank accounts’

HMRC have announced that they want to build, “the most digitally advanced tax system in the world”. This includes in particular a direct link to your bank account, making self employed taxation almost automatic. What are the benefits of this system? What will it change for you? Let’s explore this.
How do they do it currently?
The way that self employed tax is collected now is through a yearly return, with records being kept by each individual business. Of course, HMRC doesn’t have the time or resources to go through each and every invoice or expenditure that a business generates. To a certain extent, they trust your word on the tax return. However, HMRC reserve the right to audit your business at any time, requiring you to provide evidence for any tax calculation you have submitted.
What are they planning on introducing?
The proposed system from HMRC, although not explained in great detail at this point will essentially digitize the entire tax process. This thus means that in theory that they can view your business bank account in real time. This will allow them to monitor the activity throughout the year and make it easier to spot potential tax fraud when tax time comes.
Another feature that they are discussing is the possibility of logging all payments and earnings in real time. Through the release of some apps that are integrated with various systems any invoice that you receive can be simultaneously logged by the HMRC system. This also is true for any revenue you receive, thus giving HMRC an approximate idea as to how much profit you are making before you even send your tax return.
HMRC claim that this is not an attempt to gather all our information like the, “stasi” but a way to streamline their processes, and make the collection of tax pounds easier.
Why are they doing this?
It makes sense that in an era where technology is advancing very rapidly, the government will start using it more and more. Another large reason will be that hiding some income will be increasingly difficult. This includes people who work in a mainly cash based business. Eventually you are going to put the money in your bank account, and when you do, it will show up on the HMRC system.
It will also mean that computer systems can be set up to spot fraud or irregularities and flag them quicker. This will save man hours in terms of auditing or other admin tasks that a computer could handle.
What will it change for you?
If you are already paying your taxes on time, not massaging your accounts and generally being honest, then nothing really should change. What some people are worried about is that HMRC may start demanding tax more regularly throughout the year. This is something that HMRC have categorically denied, stating that the current once per year model will remain. We should always bear in mind that they are the government, and the government doesn’t always have a good track record for keeping their word!
One fear that people are voicing include the idea that the technologically slow will suffer with this new technology. Obviously, as time goes on, this factor will become less and less important. It does mean however that the tech non-savvy will have a period of adjustment to this new process. HMRC will probably provide good help and guidance for these people, and of course hiring a good accountant will be very important in these cases.
How can you prepare for it?
There is nothing that can especially be done to prepare for this new technology. What is important is that you are making sure you are currently paying your taxes properly. Since, when this new technology comes into place, you may end up with less money in your pocket than you are used to. As mentioned previously, hiring an accountant will save you plenty of headaches in the long run.
If you are currently diligent about your taxes, then there isn’t anything to worry about, this technological trend isn’t going to end anytime soon, it is going to transform almost every area of our life, so we just need to get used to it!
Wrapping Up
This isn’t bad news for people who are honestly paying their taxes. It can be alarming to think that the government will have a prying eye into our personal accounts, but the boring truth is that it is probably just a cost saving exercise on their part! Sit back, relax, the robots are taking over!

GM professional accountants based in London and Essex.

Allowable self employed expenses

Allowable business expenses

You want to only as much tax as you have to, no more no less. This means that when you are submitting your self employed tax return, you need to know what you can, and what you can’t claim back. Let’s talk about what that means, and what you can deduct from your yearly tax.
What is an “allowable expense”?
This is a term used by HMRC to discuss expenses that you are allowed to deduct from your tax return. So for instance, you earn £50,000, and your expenses are £20,000. What this means is that you only have to pay tax on the remaining £30,000. This saves you a lot of money!
Let’s walk through which expenses are allowable according to HMRC.

Office Costs

If you work from home, things like the heating, the rent, the mortgages, and the electricity can potentially be claimed back. You will have to declare exactly what is used for work, and what is used for everyday life, but you could claim a lot of this back.

Stationary Costs

Pens, paper, printer toner, special software for your business. All the small details that you need to run your business effectively, you can claim back. This can be broad, so long as you are not using these programs and items for your home life exclusively, you can claim them back.

Transport

If you drive alot, need a van or travel generally, these are considered as expenses. The fuel you use, the hotel rooms you stay in and even part of the car you drive. Again, you cannot claim for journeys that are personal in nature, but everything that is business related is fair game.

Clothes

No, not your new trainers…unless you are a runner. Many self employed workmen need special equipment to work properly. This can all be taken away from your tax return. This also applies to any uniforms, or outfits if you are an entertainer!

Employee Expenses

If you are employing people, then their salaries, any fees or benefits you give them can also be taken off the tax return. Again, the theme here is anything that is a business expense, you can claim back.

Reselling Items

If you have left over stock, raw materials or production costs, these are all fair game too. Not claiming these can really eat into your profit margins.

Legal and Financial

Lawyers, accountants and anyone else who will help you with your business. This means that if you get an accountant to help you with your tax return, you can claim that back too!

Marketing Costs

This is a great one for entrepreneurs, since these costs are all considered as an expense that can be written off. Marketing is a huge part of a business, especially in the beginning. This means that your business has a better chance of survival early on!
Wrapping Up
By making sure that you are not overpaying your taxes, you will have more money in your pocket and your business. This will mean that in the years to come you can earn more, invest more and not have to worry so much. If you are unsure whether an expense you have would be regarded as tax exempt, then a good idea would be to get in touch with a local accountant and they will have all the answers, and potentially some new ideas about other savings you can make!

Common Tax return questions

Common Tax return questions

Far from being the mysterious entities that are completely impossible to understand by mere mortals, they are quite simply really! There are so many questions that people consistently ask about their tax returns. So let’s take a look at these, and give a clear precise answer!
Your tax return troubles are over!

1) How long do we have to keep business records?
Good that you are asking this question firstly! Most people don’t even consider keeping their records when it comes to their business. However, there is an obligation on your part to keep your records for 5 years if you are self employed.

This is so HMRC can review any data that you may have over the past 5 years as they might have questions.
If you are a limited company, they you should keep them for at least 6 years. There are some exceptions, for instance, if you have some data that spans more than one tax year, then you should keep that for longer. In general, keep them all for 6, and the very important ones keep a hold on indefinitely.

2) How much does it cost to get an accountant to do your tax return?
This all depends on where you live, and what type of accountant you choose. The nationwide average (not including London) is around £200 -300 for a tax return. However, remember that you can reduce this from the tax you pay.
If you go to a large accounting firm, then the price could be even higher, and in London, often accountants can charge a lot more. The best practice in this case would be to look for a reputable local accountant. You want quality and not just a cheap price, it could save you more money!

3 ) How much does it cost to get an accountant?

So this question refers to hiring an accountant in general to assist with all manner of financial dealings in your business. This rate is generally applied by the hour, and the rate can be anywhere from £70 per hour up. However, again, talking with local accountants, and negotiating some sort of deal is possible. Remember, when approaching an accountant you should have a good idea as to how much you will use them over the course of a year, this can then be budgeted into you business.
4) How long do you have to keep receipts for tax purposes?
The receipts that you have from your day to day business activities should be kept with the rest of the accounting information. This would then fall under the rules stated in question 1. So keep a neat file with the receipts in, and then dispose of them after you are no longer legally required to have them.
5) What is meant by self assessment tax?
The term is fairly self explanatory when you understand it. Essentially, unlike when you are an employee, your tax is not automatically calculated for you by the government. You are in charge of your own calculation, therefore, you “assess” the level of tax that you pay. This obviously doesn’t mean you can pay as little as you want, what it means is that the calculation process falls on your shoulders.
6) Who has to fill out a tax return?
If you are self employed or own a business, you have to fill one out. This means if you do a little work on the side, it all needs to be declared and answered for! So if you are not an employee of a company, and make money another way, then you have to fill one out. Simple.

7) What is the annual return?

The annual return is something that is submitted to companies house, and it is solely for the purpose of taxing limited companies. Many self employed people do run a limited company, and this means that they are required to do exactly this.

8) What is a short tax return?

A short tax return is something that only specific types of people have to fill in. One such person would be someone who started trading in July, something happens, and they cease trading in September. HMRC will then usually ask that person to fill in a short tax return. It is a condensed version of the regular tax return. However, don’t worry excessively about these, since if you need to fill one out, HMRC will ask you directly.
Hopefully this has answered some

The benefits of being self employed

Benefits of being self employed

More and more people are taking the plunge and becoming self employed. There are so many great things about choosing this way of life. Let’s take a look at some of the main things that can convince you that being self employed is for you!

Freedom of being self employed

No more waking up for someone else, no more working to make your boss rich. Being self employed means that all the money you earn, you keep. It is as simple as that! It also means that every day you set the agenda, no one to answer to apart from your own dreams. No matter who you are, this is an attractive prospect.

Expansion
In a job, your personal growth and expansion is limited by the constraints of a company. You are not always rewarded in a way that is commensurate with your value. If you own a small business or are self employed, your expansion and your work are the same thing. This means that your work never goes unnoticed, and expansion is always possible.

No more time trading

Most people who are employed are paid for their hours. They swap 8 hours of their day for some money. This trade limits your growth, and means that the only way you can earn more money if by putting more hours in. One of the largest self employed benefits is that you can create income streams that keep ticking over even when you sleep. No more trading your time for money.
The ability to be able to create value for others means that you are going to be paid upon how much value you can create. This is not an arbitrary figure that an organisation has put on you. This isn’t £x for 1 hour, this is the creation of real value for your clients. This is a liberating and fulfilling experience. You don’t become a millionaire by working for a million hours. You do it by creating a million pounds worth of value for others. This is possible when you are self employed! No more trading your time for money, time to start creating value!

Control Over Everything

As an employee your taxes, your tasks and so many other things are out of your control. When you are self employed you have control over all areas of your monetary life. For instance, with tax, you can use a tax calculator to figure out how much tax you earn, deduct what you are entitled to deduct. (Consulting your accountant first of course!) This can lead to paying less tax than if you are an employee. And this is just one area that you have added control! You will have control over your work hours, your availability, the time you spend with your family. Everything! This is a huge reason that people choose to live a self employed life. In a world where employment and the world economies are increasingly uncertain, to have control over your finances is an important step.
So it doesn’t matter what your situation is currently in life, choosing to be self employed can be a great idea. The benefits are there, all that is required is for you to take action!

 

GM Professional accountants  provide self employed self assessment tax services

How a hard brexit will affect businesses and indiviuals

How Brexit will affect Small businesses

The moments that Farage and over half of the country has been waiting for is nearing. Article 50 is just months away from being triggered, and the position the UK is in currently doesn’t seem to be poised for an amicable split.
The crux of the negotiations all hinge on the single market, and the caveats that come with it. According to polls, the second biggest issue in the whole referendum was immigration. The rhetoric about overcrowding, low paid labor and British workers missing out was at the heart of everything.
Britain is trying to stay within the single market, but change the parameters, namely, all the perks, but no free movement of people. Francois Hollande on the 6th October gave a speech which has strongly warned other EU members that this cannot happen.
In Hollande’s words, ” Britain wants to leave, but not pay”. Essentially, his comments tell us that either you can stay in the single market with everything that comes with it, or you can leave completely. This seems to be the feeling across the whole continent, and a so called “Hard-Brexit” is every more likely.

How will it affect small businesses?

Brexit has heralded in an era of a slumping pound. The strength against the dollar and the euro is down considerably. Whilst foreign exchange rates aren’t always the best indication of overall economic strength, it can give us an indication of the feelings out there. Since Britain is a trade deficit nation, not entering the eurozone in the first place enabled the country to keep out of the recessionary cycle the eurozone is in right now. This means then, that a hard brexit can only present a difficulty for businesses. Since we enjoy a single market relationship with Europe without the disaster of the Euro currency to deal with, what will remain is no access to that single market. This will cause costs to rise, and the potential for firms to move into the single market zone.
The logic behind the Brexiteers is that Britain will once again take up it’s old manufacturing past (which was deftly dismantled by Thatcher) this solution will take years to implement, and won’t have an affect for a long time. So for businesses, expect some tumult in the following years, as a hard brexit can and will affect trade.

How will it affect the self employed

Depending on your area of expertise, the self-employed person might be in their element. The modern day self employed entrepreneur is well equipped to deal with market tumult, since often times, money can be made anywhere on earth. This also means that there will be many opportunities opening up in the near future with all the brexit uncertainty in Europe.
Perhaps now is the best time to be self-employed, since you will have control over your own finances. This means that huge shifts in the world economy can largely leave you unaffected. Relying on salaried work might leave a more uncertain future.
To summarize, a hard Brexit may or may not happen. Currently, it seems likely that the EU will try and make the UK feel the consequences for leaving. However, the EU is headed for a stagflationary spiral that will affect the UK anyway, so the best advice would be to focus on creating your own sources of income, and don’t rely on market stability in the coming few years

 

GM professional accountants are specialists in small business accounting services.

Setting up a limited company in the uk

Setting up a limited company

Getting into business is exciting, there are so many challenges and opportunities that await you. You might be at the point now where you have decided to set up a limited company. There are considerations to make sure this is the right decision for you, so make sure you are informed.
Let’s go through the simple process of setting up a limited company, then talk about some of the benefits of it, then some frequently asked questions.
How to setup
This process is simple. The easiest way to do it is via the companies house online portal. The form you need to fill in is very simple, however there are some details that you need to have on hand before starting the process.
– Company name. This is obvious, however, your name must be unique, and if you want to chose something that will represent your company well. Think of something that properly sums up what you do, your mission statement, and how you are going to add value to your potential customers.
– Shareholder, director and secretary. It doesn’t matter if you are a one man band, or a growing team, you will need to allocate these roles straight away. They can all be the same person if you are working alone. These allocations are very important. Take advice as to what the best choice would be. Allocating shares or roles incorrectly now could lead to some awkward situations down the line. These need to be backed up by a memorandum of article of association. This is the paperwork that confirms all the roles.
– Company address. Every company is required to have a registered address. If you are a lone wolf and don’t want it registered to your home, then even renting a mail box is allowed.- Register for corporation tax. This again can be done through the government’s portal. This needs to be done within three months of starting your business. You can do it here, https://online.hmrc.gov.uk/registration/newbusiness/introduction
The actual process is very simple,you can set up a limited company online https://ewf.companieshouse.gov.uk/runpage?page=welcome. After you have done this, it is time to start running your company!
Benefits

Why should you create a limited company? Well in England and the rest of the UK, you can run a company as a sole trader. However, there are certain benefits to being a limited company.
Protection. If things go badly in your company, and you are unable to pay business debts, the limited company is liable and not you personally. This means that in the worst case scenario, you are protected. You may not want to think about that happening, but it is a prudent business move to consider all possibilities, and protect your risk.
Tax. Yes, the dreaded word. With a limited company, the structuring of your payments into dividends and salary making what you pay more tax efficient. The rules can confuse some people, HMRC have provided a great explanation on their site, check it out here. https://www.gov.uk/government/publications/dividend-allowance-factsheet/dividend-allowance-factsheet#examples. Being informed on this can mean you pay less tax, and take home more money.
Funding. This is an issue that many people are facing in the modern world. Many startups have the opportunity to receive funding. Seed funds, angel investors or crowdfunding are now possibilities for thousands of businesses. If you are a sole trader, it is going to be harder to convince a collective to fund your project. Investing into a limited company provides a much more solid framework to structure the deal in.
Professionalism. Your image can mean the difference between closing a sale or losing it. When dealing with larger companies, often times they want to feel like they are dealing with a legitimate and solid business. Having the Ltd at the end of your name can give your potential clients much more peace of mind.
FAQ

Is it expensive to register a limited company? No, it is £12 if you do it online. By paper it can go up to £40.
Are there special records I need to keep? Yes. You will need to keep accurate and through accounts, added to that you will need to keep the registers of members, and other similar items. Read all the details here, https://www.gov.uk/running-a-limited-company/company-and-accounting-records. Keep this in mind when setting up the company, a good start will save paperwork later.
Am I automatically trademarked? No. When you register a company name, that name will not be taken by another company. However, a trademark is something different. You will need to apply for a trademark for your company separately.
What about PAYE and VAT? These can also be done on the government portal. You are not automatically registered for these, so if they fit your requirements, then you can sign up for them too.
Wrapping Up
The key thing to remember when setting up a limited company is to stay informed. You will have a lot more responsibility now, so read everything you can, and make sure all the boxes are ticked. All the best with your business!

GM professional Accountants are Accountants based in London, our Tax advisors are specialists in small businesses and self employed individuals. we offer the whole package from registering you as self employed to bookkeeping services as well as the final accounts and tax returns. Manor park office address, 47 Gladstone Avenue, Manor park, London, E12 6NR, Ilford office address, 14 Clements Court, Clements lane,Ilford,Essex,IG1 2QY Tel: 0208 396 6128,
Call Now
Directions