Accountants for Small business Startups
Till date accounting is one of the most important parts of starting as well as operating a successful business. Hiring an accountant not only helps to grow a business but they also help in the case of a complex business structure.
There are a lot of people who are ready to help in this kind of stuff and the level or the size of the business doesn’t matter to them. Accountants are needed doing a range of works like deciding appropriate business format, deciding whether to register for VAT or not and many others.
What are the filing dates for a start-up business?
If you are self employed or a sole trader then your tax period is normally the 6th April till the 5th April. The filing dates for paper returns are 31st October and for electronic returns the 31st Jan. For limited companies you have an accounting period which normally starts from the date the company was incorporated, and you can choose when the accounting period ends, which is usually 12 months by default. You then have 9 months to file the accounts, tax computations and CT600 to companies house and HMRC.
Sole trader or self-employed people have to pay their taxes on the 31st January after the end of their tax year! HRMC generally requests for payments for the next year’s estimated tax on 31st January and 31s July every year. This means that after one year has passed of the business you started your tax bill can be 150% of what you expected to pay where the 50% is payable in the month of July.
According to HRMC, all self-employers should file a tax return once a year and the given deadline is 9 to 10 months after the end of the tax year.
What are the allowable expenses?
As a sole trader if you have made around 30,000 pounds and you have spent 5000 pounds on allowable expenses you will be taxed on the remaining 25,000 pounds only.
The allowable expenses include:
· Office costs, such as phone bills or stationary
· Travel costs, such as train or bus fares, fuel, and parking
· Financial costs, such as bank charges or insurances
· Advertising or marketing, such as costs of websites
· Clothing expenses, such as uniforms
· Things you need to but to sell on, such as raw materials or stock
· Costs of business premises, such as lighting, heating etc.
What type of accountancy services will startups need?
There are generally two types of accounting methods that is accrual accounting and cash accounting for sole traders. but for companies the accruals method is used, Accountants for start-up business that are sole traders can choose between these two Accruals and cash basis. So you should understand the criteria and GM Professional accountants will help you make the right choice.
For self-employed, will you will need accounts and a tax return?
Yes if you are self-employed you do need to do your accounts and tax return. GM professional accountants can register you with HMRC to receive a UTR number. This can take up two weeks, and the UTR number will come via post. Its recommend to register in time to meet the 31st Jan deadline otherwise you may incur penalties.
Choosing an online accountant?
The right accountant will provide you than just prestige! If you want an online accountant you should understand the services you need. There are a number of good online accounting software packages. GM professional accountants help you make the right decision from the structure, software and guidance on the allowable expenses.
Choosing an online accountant will not only save your time but also you will have access to a valuable source of information! You can check our reviews on Google. We have been rated the three best rated accountants in a number of areas.
Choosing the right accountant in London or Manchester?
Choosing the right accountant is a decision that will have a significant impact on your business. If the information and tax planning is correct you will be able to make informed decisions and this will reduce the burden and help you to stay intact.
GM Professional accountants have offices in London, Essex and Manchester and specialise in Startups.Contact us now